2013 Law Summaries - League of Minnesota Cities

Transcription

LEAGUE OF MINNESOTA CITIES
2013
Law
Summaries
Final Legislative Action
MINNESOTA SESSION LAWS 2013
Copyright © 2013 League of Minnesota Cities.
All rights reserved.
Contents
Session 2013.....................................................................................1
LMC 2013 Law Summaries..............................................................3
BONDING......................................................................................4
Omnibus bonding bill...................................................................4
CIVIL AND CRIMINAL LAW.....................................................4
Redefining “service animal” under the Minnesota
Human Rights Act.....................................................................4
Modifications to the False Claims Act............................................4
Criminal conduct related to emergency calls modified...................4
Contribution actions related to construction lawsuits limited.........5
Crime victim provisions modified.................................................5
Domestic abuse provisions modified..............................................6
Service of process in contested case review....................................7
Money used to facilitate prostitution or sex trafficking
forfeiture provided.....................................................................7
Restrictions on indemnification agreements in
construction contracts................................................................7
Expanding the limitations period for civil actions
involving sexual abuse................................................................7
Prohibiting exclusion from jury service.........................................7
Restrictions on enforceability of liability waivers...........................8
Underage possession or consumption immunity provided
for a person seeking assistance for another..................................8
Transit operator assault criminal penalties prescribed......................8
Increased penalties for wildfire arson provided...............................8
COMMERCE.................................................................................8
Department of Commerce technical bill........................................8
Bullion coin dealers regulated........................................................8
Scrap metal processing regulations modifications
and criminal penalties establishment...........................................9
DATA PRACTICES.....................................................................13
Safe At Home Program...............................................................13
Omnibus data practices bill..........................................................13
ECONOMIC DEVELOPMENT................................................14
Additional security for development authority loans authorized....14
Jobs, economic development, housing, commerce
and energy omnibus budget bill...............................................14
ELECTIONS.................................................................................16
Omnibus elections policy bill......................................................16
EMERGENCY MEDICAL SERVICES.....................................19
Emergency medical responders requirements modified................19
Continuing education requirements for community
paramedics modified................................................................19
EMPLOYMENT...........................................................................19
Workers’ Compensation Reinsurance Association
requirements modified.............................................................19
Prompt payment of wages modified.............................................19
Limits on reliance on criminal history for employment
purposes expanded...................................................................20
Workers’ compensation modifications provided...........................20
Gender-neutral marriage authorized............................................22
State labor contracts ratified.........................................................22
Employee sick leave benefit use expanded...................................23
UNEMPLOYMENT INSURANCE...........................................23
2013 Law Summaries
Unemployment insurance provisions in the omnibus
jobs and economic development bill.........................................23
ENVIRONMENT........................................................................23
Technical and consensus drainage law changes made....................23
Metro water group sunset extended.............................................24
180-day process for adopting organized collection
replaced with 60-day negotiation period .................................24
Environment trust fund projects..................................................24
Omnibus lands bill......................................................................24
Wastewater and stormwater funding program
restrictions reduced .................................................................25
Omnibus environmental budget bill............................................25
Legacy spending bill gets controversial, earns first veto of session.... 27
GENERAL GOVERNMENT.....................................................29
Alternative publication of bids for projects funded
by special assessment................................................................29
Met council cost allocation deferred payments permitted ............29
Omnibus state government finance and veterans affairs bill..........29
HEALTH.......................................................................................30
Updating terminology related to persons with disabilities............30
Minnesota Insurance Marketplace Act (MNsure).........................30
HOUSING....................................................................................31
Concentration limits of community-based homes (group homes)... 31
Contract for deed provision in the omnibus economic
development budget bill...........................................................31
Dual tracking in foreclosure prohibited........................................31
Housing funding and policy provisions in the omnibus
economic development budget bill...........................................31
Housing Improvement Areas extension........................................32
Housing infrastructure bonds provisions in the omnibus
economic development budget bill...........................................32
Mortgage foreclosure consultant and originator clarifications .....32
Partial release of mortgage lien....................................................32
Rental eviction appeal timeline and rent escrow changes.............32
LAND USE AND GROWTH MANAGEMENT....................33
Land use provisions in the omnibus jobs bill................................33
LIQUOR.......................................................................................33
Omnibus liquor bill.....................................................................33
LOCAL LAWS..............................................................................34
Officer Tom Decker Memorial Highway Designated...................34
Authority to negotiate certain agreements expanded
to Hennepin County...............................................................34
Local power line planning requirements .....................................34
Local law provisions in the omnibus economic development budget bill.....................................................................................34
Local provisions in omnibus transportation policy act..................35
Special freight distribution authorized for
west central Minnesota.............................................................35
Disaster aid provided to southwest Minnesota..............................36
MISCELLANEOUS...................................................................36
Campaign finance modifications..................................................36
Determining legislator salary.......................................................36
Geospatial data sharing with government entities.........................36
Hospital reports required.............................................................36
Contents
Lawful gambling modifications....................................................37
Metropolitan Council redistricting..............................................37
MN.IT Services..........................................................................37
Motor vehicle fuel payment........................................................38
PENSIONS AND RETIREMENT.........................................38
Pension plan officers required to report certain unlawful acts.......38
Omnibus pensions act.................................................................38
Fire and police department aid threshold for financial
reports and audits modified......................................................40
PUBLIC SAFETY.....................................................................41
Omnibus public safety finance act...............................................41
Hazardous substance release report required to local
911 emergency dispatch center.................................................44
Public safety provisions in the omnibus transportation
finance act...............................................................................45
ATV use statutes related to ditches and rights-of-way revised.......46
Statewide Radio Board...............................................................46
Felon voting .............................................................................77
June primary...............................................................................77
DNBL-EMPLOYMENT LAW....................................................78
Statewide teacher health insurance pool.......................................78
Minimum wage...........................................................................78
Pregnancy leave...........................................................................78
Prompt payment of wages...........................................................78
Overtime hour threshold.............................................................78
DNBL-ENVIRONMENT............................................................78
Water appropriation fee increase..................................................78
Silica sand mining.......................................................................79
Silica sand mining.......................................................................79
State shoreland rules....................................................................79
Legislative water commission.......................................................79
DNBL-LAND USE AND GROWTH MANAGEMENT.........79
Annexation.................................................................................79
Partial discharge of easements......................................................79
TAXES.......................................................................................47
Omnibus tax bill ........................................................................47
DNBL-PENSIONS AND RETIREMENT................................80
Increase in police and fire pension aid.........................................80
TELECOMMUNICATIONS....................................................67
Broadband provisions included in omnibus jobs, economic
development, housing, commerce, and energy law....................67
DNBL-PUBLIC FINANCE........................................................80
Municipal bond interest exemption repeal...................................80
TRANSPORTATION...............................................................68
I-35W bridge remnant steel disposition provided for...................68
Omnibus transportation finance act.............................................68
Special freight distribution authorized for
west central Minnesota.............................................................72
Omnibus transportation policy act...............................................72
UTILTIES..................................................................................74
Energy provisions in omnibus jobs act.........................................74
BILLS VETOED BY THE GOVERNOR...............................................76
VETOED: ENVIRONMENT.....................................................76
Legacy spending bill....................................................................76
BILLS THAT DID NOT BECOME LAW (DNBL)................................76
DNBL-AID TO CITIES..............................................................76
Governor’s proposed changes to local government aid program.....76
DNBL-BONDING.......................................................................76
House bonding bill.....................................................................76
“Buy American” steel..................................................................76
DNBL-BUILDLING CODES.....................................................76
Residential sprinklers..................................................................76
DNBL-DATA PRACTICES........................................................76
Classification of license plate reader data......................................76
Unauthorized data access security policies and penalties...............77
Creating an exception to the Open Meeting Law
for social media........................................................................77
DNBL-PUBLIC SAFETY...........................................................80
Photo-cop...................................................................................80
DNBL-TAXES.............................................................................80
Nonprofits exempted from city fees and service charges...............80
Levy authority to Southeast Minnesota Multicounty
Housing and Redevelopment Authority ..................................80
Labor peace agreement................................................................80
Sales tax base broadening to clothing...........................................81
Homeowner property tax refund.................................................81
Gov. Dayton’s tax recommendations............................................81
Tax hearing and notification law changes....................................81
Tax hearing and notification law changes....................................81
Local Sales Tax Bills.....................................................................81
DNBL-TELECOMMUNICATIONS..........................................81
Telecommunications regulation changes......................................81
DNBL-TRANSPORTATION.....................................................82
Municipal street improvement district authority..........................82
Gas tax increase...........................................................................82
Sales tax on gasoline....................................................................82
Mini-trucks.................................................................................82
Appendix A: How to Estimate Your City’s 2014 Levy Limit.......83
Appendix B: City 2014 LGA Estimates.........................................85
League of Minnesota Cities Intergovernmental Relations
Department..................................................................................95
DNBL-ECONOMIC DEVELOPMENT...................................77
Jobs bill extension.......................................................................77
DNBL-ELECTIONS....................................................................77
Early voting................................................................................77
Ranked-choice voting.................................................................77
League of Minnesota Cities
Session 2013
Fiscal Outlook Improves for State, Cities
The 88th session of the Minnesota Legislature began on
Tuesday, Jan. 8 with new House and Senate majorities, 20
first-term senators, 36 first-term representatives, and the
task of crafting a biennial state budget and addressing a
projected $1.1 billion deficit for the FY 2014-15 biennium
based on the November 2012 state budget forecast.
With the House, Senate, and governor’s office controlled by the Democrats, some speculated that the budgetsetting task would be simplified and streamlined. The task
was made a bit easier when Minnesota Management and
Budget released the semi-annual state budget forecast in
late February, which reported a smaller state budget deficit
of $627 million. In early May as the Legislature approached
the final weeks, the budget remained far from complete as
leaders in the House and Senate tussled with Gov. Dayton
on the final details of the state budget.
In the last days of the session, the House, Senate, and
governor reached agreement on the details of the budget
and the last bill was passed at midnight on May 20, the day
prescribed in the state Constitution for adjournment.
Legislative agenda
One indication of the priorities of the Legislature is the
content of the first bill introductions. This year, the first
introductions included bills to restore the school district
aid payment shift, modify and increase the property tax
refund system, appropriate funds for the Minnesota investment fund, modify the Minnesota Trade Office, establish
the Minnesota Insurance Marketplace, fund all-day kindergarten, and increase the minimum wage.
In addition, the League was working with legislators
to introduce legislation reflecting city policies. Among
the League initiatives was a bill that would allow cities
to implement street improvement districts. Another
would authorize cities to impose organized solid waste
collection policies. A third would designate as nonpublic citizen email addresses collected for the purpose of
providing alerts and other information to residents. These
are just a few examples of bills proposed by the League
on behalf of cities.
Governor’s budget
On Jan. 22, Gov. Dayton released his budget recommendations, which, as expected, included a fourth-tier income tax.
But perhaps the biggest surprise was the governor’s proposed expansion of the sales tax to a broad array of services.
The sales tax expansion took many city officials by
surprise. Due to the fact that cities are significant consum-
2013 Law Summaries
ers of many professional services, such as legal, accounting,
and engineering services, and due to the fact that cities are
required under law to pay the state sales tax on purchases
of those services, the governor’s sales tax base expansion
would have had a large impact on city budgets.
In addition to the sales tax base expansion, Gov.
Dayton proposed a new local government aid (LGA)
formula and a restoration of $80 million of the funding
reductions that have occurred over the past decade. The
governor’s proposal was guided by a group of 15 mayors
from across the state, including co-chairs R.T. Rybak,
City of Minneapolis, and Dave Kleis, City of St. Cloud.
The governor’s LGA reform panel also included mayors
Bruce Ahlgren, Cloquet; Dave Bartholomay, Circle Pines;
Beth Baumann, South St. Paul; ReNae Bowman, Crystal;
Ardell Brede, Rochester; Chris Coleman, St. Paul; Debbie
Goettel, Richfield; Don Ness, Duluth; Joyce Nyhus,
Buffalo Lake; Alan Oberloh, Worthington; Marlene
Pospeck, Hoyt Lakes; Mary Rossing, Northfield; and Dave
Smiglewski, Granite Falls.
Although many legislators supported the governor’s
recommended LGA appropriation increase and acknowledged the need to update and reform the one-year-old
LGA formula, his LGA proposal did not immediately catch
fire. Rep. Jim Davnie (DFL-Minneapolis), who was the
new chair of the House Property and Local Tax Division,
realized that the governor’s proposal was an important first
step but the plan needed refinements to gain broader support. Davnie convened a group of tax committee legislators and city representatives to discuss whether common
ground on LGA reform could be found.
After roughly six weeks of regular early morning
meetings, the Davnie group, which included representatives
of Metro Cities, the Coalition of Greater Minnesota Cities, and the League of Minnesota Cities focused in on an
LGA system proposal that used updated data and recomputed statistics to allocate LGA funds. The proposal was
drafted into legislation and introduced by Rep. Ben Lien
(DFL-Moorhead) and Sen. Roger Reinert (DFL-Duluth).
That bill was largely included in the final omnibus tax bill
which is now Chapter 143.
As legislative hearings on the governor’s budget plan
began to occur, the League approached several legislators
who were former local government officials and asked if
they would introduce legislation to exempt cities from the
sales tax. During the first month of the session, Reps. Peter
Fischer (DFL-Maplewood), Nick Zerwas (R-Elk River),
and Paul Anderson (R-Starbuck) along with Sens. Chuck
Page 1
Wiger (DFL-Maplewood), Dave Senjem (R-Rochester),
and Ann Rest (DFL-New Hope) all introduced bills.
Although the House did not include the exemption in
its version of the omnibus tax bill, the Senate Tax Reform
Division, chaired by Sen. Ann Rest, chose to include the
provision in its division report, which was subsequently
included in the Senate version of the omnibus tax bill.
During the conference committee negotiations, Sens. Rest
and Skoe pushed to include the exemption in the final
conference committee report. On May 23, the exemption
was signed into law by the governor as a part of the omnibus tax bill, Chapter 143.
Many of the Legislature’s priorities would eventually
find their way to the governor’s desk. In all, the Legislature
would send the governor 144 chapters of new law, including nine omnibus bills that would form the backbone of
the state’s biennial budget.
Neither a comprehensive transportation funding package, nor a substantial capital investment bill is among the
144 chapters. Despite efforts on the part of transportation committee chairs and advocates that stretched into
the final days of session, the Legislature and governor
failed to agree on a comprehensive transportation funding increase; and, although the counties secured passage of
expanded wheelage tax authority and local option sales tax
for transportation authority, the Legislature did not pass the
League’s street improvement district initiative. The Legislature and governor also ended the session without passing a
substantial bonding bill, which may result in demands for
a larger than normal bonding bill in 2014. The slim capital investment bill that passed authorizes approximately
$176 million in capital projects, $109 million of which will
be used to help restore the state Capitol building. (Note:
Additional initiatives that did not become law are summarized in the Did Not Become Law section of the 2013
Law Summaries.)
Page 2
Other outcomes
In addition to the budget bills, dozens of smaller but significant bills also made it to the finish line. The following is
a sampling of bills the governor has signed into law:
• Authority for cities to impose organized solid waste
policies.
• A pension bill that will attempt to stabilize the Public
Employees Retirement Association Police and Fire Plan.
• Classification of citizen emails collected by cities as
“non-public.”
• Expansion of sick leave and workers’ compensation benefits for employees.
The future
With the conclusion of the 2013 session, the biennial
budget for the state is set until the next odd-year session.
The 2014 session will convene Tuesday, Feb. 25, 2014.
Bills introduced in 2013 that have not been acted upon
remain alive for consideration. The even year session typically yields a small supplemental budget to compensate
for discrepancies between the budget forecast and actual
revenues, and for unexpected expenses. It also is likely to
produce a bonding bill which, in 2014, may be larger than
in recent even year sessions due to the fact the 2013 bonding bill did not contain a number of popular projects. Gov.
Dayton and all members of the House of Representatives
will conclude their current terms in 2014, so those seeking
re-election will be eager to finish the session on time and
with victories in hand.
LMC 2013 Law Summaries
The League of Minnesota Cities (LMC) annually prepares this summary of new laws that impact
city operations. This document is intended to highlight relevant new laws, but is not intended to be
comprehensive legal advice. Each law summary includes a reference to the session chapter and bill numbers.
The number of the bill that was approved by the Legislature and sent to the governor is denoted with
an asterisk. The chapter number can be used to locate the actual text of new laws on the state Revisor of
Statutes website: www.revisor.leg.state.mn.us/laws.
We have also attempted to provide effective dates for each new law; however, occasionally the legislation
may not specify an effective date. If no effective date is provided, Minn. Stat. § 645.02 specifies that each act
(except one making appropriations) enacted finally at any session of the Legislature takes effect on Aug. 1,
unless a different date is specified in the act. An act making appropriations enacted finally at any session of the
Legislature takes effect on July 1, unless a different date is specified in the act. Each act takes effect at 12:01
a.m. on the day it becomes effective, unless a different time is specified in the act.
Special laws affecting individual cities must generally be approved by the city. The law then becomes
effective the day after the certificate of approval is filed with the secretary of state (as specified by Minn.
Stat. § 645.021), unless a different date is specified in the act. When approval of such a special law is required
by two or more local government units, the law becomes effective the day after the last of the required
certificates is filed, unless a different date is specified in the act. If you have questions about a new law,
an effective date, or the legislative process, contact a member of the LMC Intergovernmental Relations
Department. Contact information for each staff member is provided here.
The initials of League staff who
work on legislative issues are
printed following each summary.
For more information, please refer
to the list on the right for contact
information.
GC=Gary Carlson, Intergovernmental Relations Director
(651) 281-1255 or [email protected]
An asterisk (*) next to a bill
number denotes the version of
the bill that was approved by
the Legislature and sent to the
governor.
PH=Patrick Hynes, Intergovernmental Relations Representative
HC=Heather Cederholm, Intergovernmental Relations Liaison
AF=Anne Finn, Assistant Intergovernmental Relations Director
CJ=Craig Johnson, Intergovernmental Relations Representative
AL=Ann Lindstrom, Intergovernmental Relations Representative
LZ=Laura Ziegler, Intergovernmental Relations Liaison
2013 Law Summaries
Page 3
BONDING
Omnibus bonding bill
Chapter 136 (HF 1070*/SF 960) is the omnibus bonding bill, which authorizes approximately $176 million in
capital improvement projects. The scope of the bonding
bill was agreed upon in the waning hours of the legislative session and there are only five projects and programs
funded—the most notable being the Capitol renovation
and restoration. Below is a list of the projects funded:
• $109 million for the Capitol renovation and restoration
project.
• $22.6 million for the construction of a Capitol complex
parking facility.
• $20 million to the Department of Natural Resources
for the state share of flood hazard mitigation grants to
identified cities, counties, and townships for approved
projects.
• $18.9 million for the Minneapolis Veterans Home restoration and repair.
• $8 million to the Public Facilities Authority to match
$40 million in federal clean water and drinking water
revolving loan fund.
The bonding bill also reauthorized previously authorized bonds and expanded the allowable use of previously
authorized bonds. Below is a list of notable projects:
• Fergus Falls Regional Treatment Center. Section
11 expands the use of a previously authorized bond
for the treatment center to include hazardous materials
abatement and improvements to basic infrastructure, and
extends the availability of the bonds through 2016.
• Old Cedar Avenue Bridge, Bloomington. Section
12 expands the use of a $300,000 grant to the City of
Bloomington to include the renovation, restoration, or
replacement of the Old Cedar Avenue Bridge for bicycle
and recreational users. The section also extends the availability of the previously issued bonds through 2017.
Effective May 25, 2013. (PH)
CIVIL AND CRIMINAL LAW
Redefining “service animal” under the Minnesota
Human Rights Act
Chapter 14 (HF 1181/SF 1086*) amends Minn. Stat. §
363A.19 by redefining “service animal” in the Minnesota
Human Rights Act. The definition will now be the same as
the term defined by the federal Americans with Disabilities
Act, as amended. Effective Aug. 1, 2013. (PH)
Modifications to the False Claims Act
Chapter 16 (HF290*/SF 281) makes changes to the Minnesota False Claims Act (Minn. Stat. Ch. 15C), as directed
Page 4
by the federal government, to make the Minnesota law
conform to the federal False Claims Act. Currently, Minnesota and the federal government evenly split the proceeds of recoveries under federal or state false claim
actions. Conformity with the federal act entitles Minnesota
to recover an additional 10 percent of any future recovery.
• Definitions modified. Section 1 expands the definition of “claim,” and adds the defined terms of “material”
and “obligation” to the Minn. Stat. § 15C.01. Section 1
also redefines the term “original source” to match federal law.
• Liability for certain actions. Section 2 removes the
current requirement that the alleged false claim be presented to the state or subdivision; expands the definition
of intent to match federal law; and deletes a limitation
on employer’s liability for certain acts of non-managerial
employees.
• Private remedies. Section 3 amends Minn. Stat. §
15C.05 to: remove the provision stating that private
remedies must be limited to money, property, or services;
state that actions cannot be maintained if based upon
information known to the government when the action
was brought; and require dismissal of an action (with an
opportunity for objection by the prosecuting attorney) if
based on allegations that were publicly disclosed, unless
brought by the original source of information or the
prosecuting attorney.
• Intervention by prosecuting attorney. Section 4
amends Minn. Stat. § 15C.08 to allow an intervening prosecuting attorney to amend or replace a complaint brought by a private party and to add additional
claims. Any such pleading relates back to the filing of the
private-party complaint for purposes of the statute of
limitations.
• Attorney fees and expenses. Sections 5 and 6 make
the award of attorney fees and expenses mandatory if
the person bringing the claim prevails, and clarifies how
awards are distributed to whistleblowers if a prosecuting
attorney intervenes in a claim.
• Whistleblower protection. Section 7 and 8 repeals
the whistleblower provision in Minn. Stat. § 15C.14 and
replaces it with Minn. Stat. § 15C.145, providing protection from retaliatory action, including reinstatement
at same seniority, double back pay, interest, and special
damages, including attorney fees and court costs. Section
7 establishes a three-year statute of limitations for such
claims.
Effective Aug. 1, 2013. (PH)
Criminal conduct related to emergency calls modified
Chapter 20 (HF 1043/*SF 1168) amends Minn. Stat. §
609.78 by expanding the list of acts that constitute criminal conduct related to emergency telephone calls. It also
creates new misdemeanor, gross misdemeanor, and felony
level offenses under the statute and redefines a term.
• Misdemeanor offense provided. Minn. Stat. §
609.78, subd. 1 is amended to make it a misdemeanor
to make or initiate an emergency call, knowing that no
emergency exists, and with the intent to disrupt, interfere with, or reduce the provision of emergency services
or the emergency call center’s resources, remain silent, or
make abusive or harassing statements to the call recipient.
• Gross misdemeanor offense provided. Minn. Stat.
§ 609.78, subd. 2 is amended to make it a gross misdemeanor offense to: unlawfully place an emergency call
and report a fictitious emergency with the intent of
prompting an emergency response; and to violate the
new offense established in subdivision 1 for a second
time.
• Felony offense provided. Minn. Stat. § 609.78, subd.
2a is amended to make it a felony offense to report a fictitious emergency that results in serious injury. A person
who violates the prohibition on fictitious calls established in subdivision 2 and the call triggers an emergency response that results in someone suffering great
bodily harm or death is guilty of a 10-year felony.
• Other felony offense provided. Minn. Stat. § 609.78,
subd. 2b is amended to make it a five-year offense to
violate subdivision 1 for a third or subsequent time, and
to block, interfere with, overload, or otherwise prevent
the emergency call center’s system from functioning
properly, and these actions make the system unavailable
to someone needing assistance.
• “Emergency call” definition expanded. Minn.
Stat. § 609.78, subd. 3 defines “emergency call.” It is
expanded to include the use of any method of communication including, but not limited to: telephones,
facsimiles, voice-over-Internet protocols, email messages,
text messages, and electronic transmissions of an image
or video.
Effective Aug. 1, 2013. (AF)
Contribution actions related to construction lawsuits limited
Chapter 21 (HF 450*/SF 392) amends the statute of
limitations for lawsuits based on improvements to real
property (Minn. Stat. § 541.051). The new law imposes
a 14-year statute of repose on contribution and indemnity claims, which currently must be brought no later
than two years after the contribution or indemnity action
accrued. In some circumstances, under the current statute of limitations and repose, a construction defect claim
can be brought nearly 12 years after substantial completion of a project, and a contribution and indemnity claim
can potentially accrue after trial or appeal, leaving open
questions of liability for many years. The change was made
at the request of engineers and architects, who are often
2013 Law Summaries
subject to contribution and indemnity claims on construction projects. Effective Aug. 1, 2013, and applies to actions commenced on or after that date. (PH)
Crime victim provisions modified
Chapter 34 (HF 1501/SF 769*) amends various crime victim provisions. It classifies as private data identifying information of a victim or other person requesting notification
regarding a defendant’s release from custody. It expands
protections for crime victims against employer retaliation.
Finally, it updates terminology and creates a working group
to study restitution.
• Release of arrested, detained or confined person notice modified. Section 1 creates Minn. Stat. §
13.854. It provides that for requests for notification of
change in custody status of an arrested, detained, or confined person from the Department of Corrections or
other custodial authority made through an automated
electronic notification system, all identifying information
regarding the person requesting notification, and that the
notice was requested and provided to that person by the
automated system is classified as private data on individuals as defined in section 13.02, subd. 12, and is accessible only to that person.
• Victim data classified. Section 2 adds a provision to
Minn. Stat. § 13.871, subd. 5. It provides that data on
victims requesting a notice of release of an arrested or
detained person are classified under Minn. Stat. § 629.72
(pertaining to bail, domestic abuse, harassment, violation
of order for protection or no contact order) and Minn.
Stat. § 629.73 (pertaining to notice to crime victims,
release of arrested or detained person).
• “Violent crime” definition modified to include
stalking. Section 3 amends Minn. Stat. § 611A.0315 by
replacing the word “harassment” with the word “stalking” in the definition of “violent crime.”
• Stalking victims attendance at criminal proceedings protected. Section 4 amends Minn. Stat. §
611A.036, subd. 7, by adding the crime of stalking to the
definition of “violent crime” for purposes of prohibiting
employer retaliation when an employee takes time off
work to attend criminal proceedings.
• “Stalking” replaces “harassment.” Sections 5, 6, 7
and 9 amend various provisions in Minn. Stat. § 629.72
by replacing the word “harassment” with the word
“stalking.” This section pertains to bail, domestic abuse,
harassment, violation of order for protection, and no
contact orders.
• Victim data private. Section 8 adds a provision to
Minn. Stat. § 629.72, subd. 6. It provides that data on the
victim and the notice provided by the custodial authority are private data on individuals as defined in Minn.
Stat. § 13.02, subd. 12, and are accessible only to the victim.
Page 5
• Technical changes and victim data classification
provided. Section 10 amends Minn. Stat. § 629.73
updates obsolete references to the Department of Corrections and replaces them with the Office of Justice
programs in the Department of Public Safety. It also classifies as private data on individuals all identifying information regarding a victim, including, but not limited
to, the notice provided custodial authority regarding an
arrested person’s release.
• Working group established. Section 11 is a 2013 Session Law that requires the Department of Public Safety
to convene a working group by Aug. 1, 2013, to study
how restitution is currently being requested, ordered,
and collected in Minnesota, to include the Department
of Corrections, city and county prosecuting agencies,
statewide crime victim coalitions, the Minnesota Judicial
Branch, county probation departments, the Minnesota
Association of Community Corrections Act counties, and the Minnesota Board of Public Defenders. It
requires the commissioner of the Department of Public Safety to file the report with the Legislature by an
unspecified date in January 2015.
Domestic abuse provisions modified
Chapter 47 amends (HF 1400*/SF 1423) makes several changes to violations related to orders for protection,
qualified domestic violence-related offenses, harassment
restraining orders, and domestic abuse no contact orders.
• “Knowingly” stricken from enhanced orders
for protection (OFPs) violation penalty.
Section 1 amends Minn. Stat. § 518B.01, subd. 14, by
striking the term “knowingly” from the provisions
regarding enhanced penalties for violations of OFPs.
Current law provides that a violation by a person
who knows of the order is guilty of a misdemeanor.
A misdemeanor violation is enhanced to a gross
misdemeanor or felony if it’s a repeat violation or
other circumstances apply. The enhanced penalties
require that the person know of the OFP and commit
the violation “knowingly.” These sections strike the
latter, additional requirement for enhanced penalties;
accordingly, all the penalty levels would have the same
knowledge requirement.
• Venues for OFP violations expanded. Section 2
adds a section to Minn. Stat. § 518B.01. It provides that
a person may be prosecuted under the jurisdiction of the
place where any call is made or received or, in the case
of wireless or electronic communication or any communication made through any available technologies, where
the actor or victim resides, or in the jurisdiction of the
victim’s designated address if the victim participates in
the address confidentiality program established under
Chapter 5B.
Page 6
• “Family or household member” requirement
eliminated. Section 3 amends Minn. Stat. § 609.2242,
subd. 2. It eliminates the requirement that a misdemeanor domestic assault may only be enhanced to a
gross misdemeanor if a previous qualified domestic
violence-related offense (QDVRO) was “against a family or household member.” The definition of QDVRO
is in Minn. Stat. S 609.02, subd. 16, and contains crimes
that are not required to be committed against a family or
household member (e.g., murder, assault, criminal sexual
conduct crimes).
• “Knowingly” stricken from enhanced harassment
restraining orders (HROs) violation penalty. Section 4 amends Minn. Stat. § 609.748, subd. 6, by striking the term “knowingly” from the provisions regarding
enhanced penalties for violations of HROs. Current
law provides that a violation by a person who knows of
the order is guilty of a misdemeanor. A misdemeanor
violation is enhanced to a gross misdemeanor or felony
if it’s a repeat violation or other circumstances apply.
The enhanced penalties require that the person know
of the order and commit the violation “knowingly.”
These sections strike the latter, additional requirement
for enhanced penalties; accordingly, all the penalty levels
would have the same knowledge requirement.
• “Knowingly” stricken from enhanced domestic abuse no contact orders (DANCOs) violation
penalty. Section 5 amends Minn. Stat. § 629.75, subd,
2, by striking the term “knowingly” from the provisions
regarding enhanced penalties for violations of DANCOs.
Current law provides that a violation by a person who
knows of the order is guilty of a misdemeanor. A misdemeanor violation is enhanced to a gross misdemeanor
or felony if it’s a repeat violation or other circumstances
apply. The enhanced penalties require that the person
know of the order and commit the violation “knowingly.” These sections strike the latter, additional requirement for enhanced penalties; accordingly, all the penalty
levels would have the same knowledge requirement.
• Venues for DANCO violations expanded. Section
6 adds a subdivision to Minn. Stat. § 629.75. It provides
that a person may be prosecuted at the place where any
call is made or received, or, in the case of wireless or
electronic communication or any communication made
through any available technologies, where the actor or
victim resides, or in the jurisdiction of the victim’s designated address if the victim participates in the address
confidentiality program established under chapter 5B.
• Evidence of conduct modified. Section 7 amends
Minn. Stat. § 634.20. It strikes the term “similar” and
replaces it with “domestic.” Currently, this section provides that evidence of “similar conduct” by the accused
against a victim of domestic abuse is admissible. Changing the terminology would provide that conduct does
not have to be “similar” to domestic abuse—which
involves a physical assault or threat. Instead, the term is
changed to “domestic conduct,” which is defined as evidence of domestic abuse, violation of an OFP or HRO,
stalking, or harassing phone calls.
Service of process in contested case review
Chapter 56 (HF 1120*/SF 516) amends the Administrative Procedures Act, Minn. Stat. § 14.63. The act will now
require a party petitioning for judicial review of a contested case to serve the petition on the Court, the state
agency, and all parties to the contested case. Effective Aug. 1,
2013, and applies to an appeal of a final decision in a contested
case rendered on or after that date. (PH)
Money used to facilitate prostitution or sex trafficking forfeiture provided
609.5312 pertaining to forfeiture of property associated
with designated offenses. In particular, it authorizes forfeiture of money used or intended to be used to facilitate the
commission of a prostitution or sex trafficking offense.
• Money subject to forfeiture. Section 1 amends Minn.
Stat. 609.5312, subd. 1, pertaining to property forfeiture.
It adds a provision that says money used or intended to
be used to facilitate the commission of a violation of
Minn. Stat. § 609.322 or Minn. Stat. § 609.324 or a violation of a local ordinance substantially similar, is subject
to forfeiture.
• Disposition of money provided. Sections 2, 3 and 4
amend Minn. Stat. § 609.5315 by adding a new subdivision. It provides that money forfeited as part of a prostitution or sex trafficking offense must be distributed as
follows:
• 40 percent must be forwarded to the appropriate agency
for deposit as a supplement to the agency’s operating
fund or similar fund for use in law enforcement;
• 20 percent must be forwarded to the prosecuting
authority that handled the forfeiture for deposit as a
supplement to its operating fund or similar fund for
prosecutorial purposes; and,
• The remaining 40 percent must be forwarded to the
commissioner of public safety to be deposited in the
safe harbor for youth account in the special revenue
fund, and are appropriated to the commissioner for
distribution to crime victims services organizations
that provide services to sexually exploited youth, as
defined in section 260C.007, subdivision 31.
Restrictions on indemnification agreements in construction contracts
337.05 to prohibit provisions in construction contracts
2013 Law Summaries
that require a party to provide insurance coverage to one
or more parties for the negligence or intentional acts or
omissions of the other parties, including third parties. This
changes the long-standing practice in construction contracts whereby a subcontractor indemnifies a general contractor for the negligence of the general contractor, and
general contractors indemnify owners for the negligence
of the owner. These provisions were allowed under law
only to the extent the contract required the indemnitor
to obtain insurance. The new law contains exceptions to
allow project-specific insurance policies like Builder’s Risk
to remain enforceable. The law also allows an indemnitor
to obtain insurance coverage for the indemnitee’s vicarious or warranty liability. Effective Aug. 1, 2013, and applies to
agreements signed or accepted on or after that date. (PH)
Expanding the limitations period for civil actions
involving sexual abuse
Chapter 89 (HF 681*/SF 534), the “Child Victims Act,”
amends Minn. Stat. § 541.073 to eliminate the statute
of limitations for certain sexual abuse claims. For claims
against the perpetrator, the following limitations periods
apply:
• If the victim was 18 years or older: six years.
• If the victim was younger than 18 years old, there is no
statute of limitations.
• If the victim was a minor and the accused perpetrator
was younger than 14 years old, then the claim must be
brought before the plaintiff is 24 years old.
Claims for vicarious liability or respondeat superior
must be commenced within six years of the alleged abuse,
or if the plaintiff was a minor, than before the plaintiff is 24
years old.
In the case of alleged sexual abuse of a minor, an otherwise time-barred claim may be commenced against a
person, corporation, or other entity no later than three
years following the enactment date and applies to claims
pending or commenced on or after that date. The lookback provision does not apply to claims for vicarious
liability or respondeat superior. Effective May 25, 2013, and
applies to claims that were not time-barred before the effective date,
except for claims brought under the look-back provision. (PH)
Prohibiting exclusion from jury service
Chapter 90 (HF 335*/SF 41) amends Minn. Stat. §
593.32, subd. 1 and prohibits a citizen from being excluding from jury service on the basis of marital status and
sexual orientation. The current statute prohibits exclusion
from jury service on account of race, color, religion, sex,
national origin, economic status, or a physical or sensory
disability. Rule 809 of the Minnesota General Rules of
Practice for the District Courts already prohibits exclusion from jury service based on marital status. Effective
Aug. 1, 2013. (PH)
Page 7
Restrictions on enforceability of liability waivers
Chapter 118 (HF 792*/SF 768) makes unenforceable an
agreement that purports to release, limit, or waive liability
for damage, injuries, or death resulting from conduct that
constitutes greater than ordinary negligence. An unenforceable portion of an agreement is severable from an
agreement that waives liability for damages resulting from
conduct constituting ordinary negligence or inherent risks.
The new law, Minn. Stat. § 604.055, does not apply to
claims against the municipalities or the state. The original bill made unenforceable any liability waiver for damage arising out of the negligent operation, maintenance, or
design of a party’s premises, and included municipal waivers. The new law is a compromise that attempts to codify
Minnesota case law on the enforceability of indemnity
agreements. Effective Aug. 1, 2013, and applies to agreements
signed or accepted on or after that date. (PH)
Underage possession or consumption immunity
provided for a person seeking assistance for another
Chapter 112 (HF 946*/SF 744) adds a subdivision to
Minn. Stat. § 340A.503, the law pertaining to underage
possession and consumption of alcohol. It provides that if
a person contacts a 911 operator to report that the person
or another person is in need of medical assistance for an
immediate health or safety concern, the person is not subject to prosecution under this law. The immunity applies
if the person is the first person who initiates contact. The
person must also provide a name and contact information,
remain on the scene until assistance arrives, and cooperate
with the authorities at the scene. The person who receives
medical assistance is also immune from prosecution. The
law also applies to one or two persons acting in concert
with the person initiating contact provided that all the
same requirements are met. Effective Aug. 1, 2013. (AF)
Transit operator assault criminal penalties prescribed
Chapter 133 (HF 590*/SF 1068) adds a subdivision to
Minn. Stat § 609.2231. It provides that a person is guilty of
a gross misdemeanor if the person assaults a transit operator, or intentionally throws or otherwise transfers bodily
fluids onto a transit operator; and the transit operator is
acting in the course of the operator’s duties and is operating a transit vehicle, aboard a transit vehicle. A person convicted of this offense may be sentenced to imprisonment
for not more than one year or to payment of a fine of not
more than $3,000, or both. Effective Aug. 1, 2013. (AF)
Increased penalties for wildfire arson provided
Chapter 139 (HF 228*/SF 614) creates increased penalties
for wildfire arson that damages multiple buildings or dwellings, acreage, or crops, or causes someone to suffer demonstrable harm. In addition, it adds restitution provisions.
Page 8
• Maximum sentences provided. Section 2 adds a subdivision to Minn. Stat. § 609.5641. It creates increased
felony penalties for wildfire arson based on certain damages. Imposes a maximum sentence as follows:
• Where fire causes another person to suffer demonstrable bodily harm, ten years imprisonment and/or
$15,000 fine;
• Where the fire threatens to damage or damages in
excess of five buildings or dwellings, burns 500 or
more acres, or results in over $100,000 in crop damage,
ten years imprisonment and/or $15,000 fine; and,
• Where the fire threatens to damage or damages in
excess of 100 buildings or dwellings, burns 1,500 or
more acres, or results in over $250,000 in crop damage,
20 years imprisonment and/or $25,000.
• It provides that a building or dwelling “is threatened”
when there is a probability of damage to the dwelling
requiring evacuation for safety of life.
• Restitution provided. Section 3 amends Minn. Stat. §
609.5641, subd. 3 by providing that, in addition to the
sentence otherwise authorized, the court may order a
person who is convicted of violating this section to pay
fire suppression costs and damages to the owner of the
damaged land, costs associated with injuries sustained by
a member of a municipal or volunteer fire department in
the performance of the member’s duties, and any other
restitution costs allowed under Minn. Stat. § 611A.04.
COMMERCE
Department of Commerce technical bill
Chapter 135 (HF 1221*/SF 626) is the Department of
Commerce technical and housekeeping bill. While the
majority of provisions do not impact cities, the following
items may be of interest.
• Electronic service of Public Utilities Commission
(PUC) documents. Article 3, sections 18-20 amend
Minn. Stat. §§ 216.17-.18 and require that regulated
utilities provide the PUC with an electronic address
for electronic service purposes, and agree to accept
electronic service as official service. This applies to all
notices, orders, and documents sent by the PUC, as well
as documents required to be served by parties, participants, or other interested persons.
Effective Aug. 1, 2013. (PH)
Bullion coin dealers regulated
Chapter 120 (HF 157*/SF 382) provides for regulation of
“bullion coin dealers” and “coin dealer representatives” by
the Department of Commerce. “Bullion coins” are coins
that contain more than 1 percent by weight of a precious
metal such as gold; they are sold as an investment.
• Bullion terms defined. Section 1 creates. Minn. Stat. §
80G.01. It defines the terms “bullion coin,” “bullion coin
dealer,” “coin dealer representative,” “commissioner,”
“owner,” “person,” and “precious metal content.” A “coin
dealer representative” is an individual who represents a
bullion coin dealer in transactions with consumers.
• Registration required. Section 2 creates Minn. Stat.
§ 80G.02. It requires that bullion coin dealers and coin
dealer representatives be registered annually with the
Department of Commerce before doing business in this
state. It provides that registration starts July 1, 2014, if a
dealer has engaged annually in transactions that exceed
$5,000 in the aggregate, or once the dealer’s transactions
reach $5,000, and requires continued registration regardless of future transaction amounts.
• Registration denial provided. Section 3 creates
Minn. Stat. § 80G.03. It provides that the Department of
Commerce may by order, suspend, revoke, or refuse to
issue or renew a registration for misrepresentation, fraud,
and other violations of the law specified in the chapter.
It permits the commissioner to take action against a bullion coin dealer for a violation by its coin dealer representative or directly against the representative, provided
that the coin dealer representative was acting on behalf
of the bullion coin dealer. It allows the institution of a
revocation proceeding and imposition of civil penalties
within two years after registration was last effective, and
prohibits new applications for two years after the effective date of the revocation.
• Denial required for criminal convictions. Section
4 creates Minn. Stat. § 80G.04. It requires denial of an
application for registration if the applicant has within the
last 10 years, been convicted of a financial crime or of
any crime involving fraud or theft.
• Screening process required. Section 5 creates Minn.
Stat. § 80G.05. It requires the following:
• A bullion coin dealer must screen each of its owners,
officers, and coin dealer representatives before submitting an initial application and at each renewal.
• The results of the screenings must be provided to the
Department of Commerce at initial registration and
each renewal, if requested by the department.
• A national criminal history record search, court judgment search, and county criminal history search for all
counties in which the applicant has lived within the
preceding 10 years must be included.
• The bullion coin dealer must use a reputable vendor
that is authorized to do business in Minnesota and that
specializes in conducting background screenings.
• Surety bond requirement provided. Section 6 creates Minn. Stat. § 80G.06. It requires that a bullion coin
dealer maintain a surety bond in an amount equal at least
to the total purchase and sale transactions with consumers at retail in the preceding 12 months, but the bond
2013 Law Summaries
amount need not exceed $200,000. It provides that
aggrieved consumers and the Department of Commerce
or attorney general may file a claim with the surety on
the bond and may sue the surety if the claim is denied.
• Certain conduct prohibited. Section 7 creates Minn.
Stat. § 80G.07, which lists 15 things that bullion coin
dealers and coin dealer representatives are prohibited
from doing. From Aug. 1, 2013, to June 30, 2014, it only
applies to dealers with annual transactions exceeding
$5,000. On or after July 1, 2014 it applies to any dealer
required to be registered under the chapter.
• Misdemeanor crime provided. Section 8 creates
Minn. Stat. § 80G.08. It provides that it is a misdemeanor
for a bullion coin dealer or coin dealer representative to:
• Fail to register and maintain registration with the
commissioner under this act;
• Fail to deliver purchased bullion coins to a consumer
within 30 days or at the agreed-upon time; or
• Fail to pay a consumer for bullion coins sold and
delivered to a dealer or representative within 30 days
or at the agreed-upon time.
• Local authority provided. Section 9 creates Minn.
Stat. § 80G.09. It provides that nothing in this ch. 80G
prevents a lawsuit for securities fraud under ch. 80A or
preempts local authority under Minn. Stat. § 325F.742
(regulation of precious metal dealers).
• Investigations and civil enforcement provided.
Section 10 creates Minn. Stat. § 80G.10. It provides the
Department of Commerce with enforcement authority
provided in this section and Minn. Stat. § 45.027, including imposition of civil penalties.
Scrap metal processing regulations modifications
and criminal penalties establishment
Chapter 126 (HF 1214*/SF 934) amends and expands
licensing and regulatory provisions in chapters 168, 168A,
and 325E relating to scrap metal and vehicle purchases.
• “Hulk” exception eliminated. Section 1 amends
Minn. Stat. § 168.27, subd. 1a. It eliminates the “hulk”
exception for scrap metal processor licensing. This has
the effect of requiring a license for businesses engaged
in buying hulks for scrap. (A “hulk” is a vehicle that is
incapable of moving under its own power and has had
valuable used parts removed. Its sole value is its metallic
content.) Effective Aug. 1, 2013.
• Injunctive relief and civil penalties provided. Section 2 amends Minn. Stat. § 168.27, subd. 19a. It authorizes injunctive relief and civil penalties for violations
of licensing and regulatory provisions relating to scrap
metal dealers, scrap metal processors, and salvage pools.
Effective Aug. 1, 2013.
• County and city attorney prosecuting authority
provided. Section 3 amends Minn. Stat. § 168.27, subd.
Page 9
23. It provides that the city or county attorney is the
agency responsible for prosecuting violations relating to
licensing and regulation of vehicle dealers or scrap metal
dealers. Previous law made the Department of Motor
Vehicles responsible for filing charges. Effective Aug. 13,
2013.
• Certificate of title maintenance required. Section 4 amends Minn. Stat. § 168A.15, subd. 3 to require
a dealer who purchases a vehicle for scrap to maintain
the certificate of title for three years before destroying it.
• Scrap metal processing regulated. Section 5 creates Minn. Stat. § 168A.1501, which provides scrap metal
processing regulations.
• Definitions provided. Section 5, subd 1. provides
that “law enforcement agency” or “agency” means a
duly authorized municipal, county, state, or federal law
enforcement agency. “Scrap vehicle” means a motor
vehicle purchased primarily as scrap, for its reuse or
recycling value as raw metal, or for dismantling for
parts. “Scrap vehicle operator” or “operator” means the
following persons who engage in a transaction involving the purchase or acquisition of a scrap vehicle: scrap
metal processors licensed under Minn. Stat. § 168.27,
subd. 1a(c); used vehicle parts dealers licensed under
Minn. Stat. § 168.27, subd. 1a(d); scrap metal dealers under Minn. Stat. § 325E.21; and junk yards under
Minn. Stat. § 471.925. “Interchange file specification
format” means the most recent version of the Minneapolis automated property system interchange file
specification format. Effective Aug. 1, 2013.
• Purchase or acquisition record required. Section
5, subd. 2 provides that every scrap vehicle operator
must create a permanent record written in English,
at the time of each purchase or acquisition of a scrap
vehicle. The section outlines the information required
to be kept as part of the record, which must at all reasonable times be open to the inspection of any properly identified law enforcement officer.
·· Exceptions. No record is required for property purchased from manufacturers, salvage pools,
merchants operating under a contract with a scrap
vehicle operator, insurance companies, rental car
companies, financial institutions, charities, dealers licensed under Minn. Stat. § 168.27, or wholesale dealers. Law enforcement agencies may conduct
regular and routine inspections to ensure compliance, refer violations to the city or county attorney
for criminal prosecution, and notify the registrar of
motor vehicles.
·· Personal information protected. An operator
may not disclose personal information concerning a
customer without the customer’s consent unless the
disclosure is required by law or made in response to
Page 10
a request from a law enforcement agency. An operator must implement reasonable safeguards to protect
the security of the personal information, defined as
any individually identifiable information gathered in
connection with a record. Effective Aug. 1, 2013.
• Retention required. Section 5, subd. 3 requires
records to be retained by the scrap vehicle operator for
a period of three years. Effective Aug. 1, 2013.
• Payment by check or electronic transfer
required. Section 5, subd. 4. requires a scrap vehicle
operator or the operator’s agent, employee, or representative to pay for all scrap vehicle purchases only by
check or electronic transfer. Effective Aug. 1, 2013.
• Automated property system reporting required.
Section 5, subd. 5 provides that a scrap vehicle operator must completely and accurately provide all the
record information required by transferring it from the
operator’s computer to the automated property system,
by the close of business each day, using the interchange
file specification format. An operator who does not
have an electronic point-of-sale program may request
to be provided software by the automated property
system to record the required information. If the operator uses a commercially available electronic pointof-sale program to record the information required in
this section, it must submit the information using the
interchange file specification format. Any record submitted by an operator that does not conform to the
interchange file specification format must be corrected
and resubmitted the next business day. An operator
must display a sign of sufficient size, in a conspicuous place in the premises, which informs all patrons
that transactions are reported to law enforcement daily.
Every local law enforcement agency must participate in the automated property system as an individual agency or in conjunction with another agency or
agencies to provide the service. Effective Jan. 1, 2015.
• Additional reporting required. Section 5, subd. 6
provides that, in addition to the requirements under
subd. 5, an operator who is not licensed under Minn.
Stat. § 168.27 and an operator who purchases a scrap
vehicle under subd. 9 must submit information on
the purchase or acquisition of a scrap vehicle to the
National Motor Vehicle Title Information System by
the close of business the following day. Effective Aug. 1,
2013.
• Vehicle with proof of ownership; title or bill of
sale required. Section 5, subd. 7 provides that no
person shall purchase a scrap vehicle unless the seller:
(1) provides the vehicle title and lien releases, if the
vehicle is subject to any liens, or an official bill of sale
issued by a public impound lot, each listing the vehicle
identification number; (2) provides proof of identification; and (3) signs a statement, under penalty of perjury attesting that the motor vehicle is not stolen and
is free of any liens or encumbrances and that the seller
has the right to sell the motor vehicle. Effective Aug. 1,
2013.
• Vehicle without proof of ownership; certain
older vehicles. Section 5, subd. 8. Provides a process
to allow the purchase of a scrap vehicle without proof
of ownership under certain circumstances. Effective Aug.
1, 2013.
• Vehicle without proof of ownership; vehicles for
dismantling. Section 5, subd. 9 provides a process
to allow the dismantling of vehicle without proof of
ownership under certain circumstances. Effective Aug. 1,
2013.
• Exempt purchases. Section 5, subd. 10 provides that
subd. 7, 8, and 9 do not apply when a scrap vehicle is:
(1) purchased from a manufacturer, salvage pool, merchant operating under a contract with a scrap vehicle operator, insurance company, rental car company,
financial institution, charity, dealer licensed under
Minn. Stat. § 168.27, or wholesale dealers, having an
established place of business, or of any goods purchased at open sale from any bankrupt stock; or (2) an
inoperable motor vehicle with a manufacturer’s designated model year equal to or less than the 20th year
immediately preceding the current calendar year. Effective Aug. 1, 2013.
• Criminal penalty provided. Section 5, subd. 11
provides that a scrap vehicle operator, or the agent,
employee, or representative of the operator, who
intentionally violates a provision of this section, is
guilty of a misdemeanor. Effective Aug. 1, 2013.
• Investigative holds; scrap vehicle or parts. Section 5, subd. 12 provides that whenever a law enforcement official from any agency has probable cause to
believe that a scrap vehicle or motor vehicle parts in
the possession of a scrap vehicle operator are stolen
or evidence of a crime and notifies the operator not
to sell the item, the scrap vehicle operator must not:
(1) process or sell the item; or (2) remove or allow
its removal from the premises. This investigative hold
must be confirmed in writing by the originating
agency within 72 hours and will remain in effect for
30 days from the date of initial notification, or until
the investigative hold is canceled or renewed, or until a
law enforcement notification to confiscate or directive
to release is issued, whichever comes first. If a scrap
vehicle or motor vehicle parts are identified as stolen
or evidence in a criminal case, a law enforcement official may: (1) physically confiscate and remove the item
from the scrap vehicle operator, pursuant to a written notification; (2) place the item on hold or extend
the hold and leave it on the premises; or (3) direct its
release to a registered owner or owner’s agent. The
section also provides for a release of the hold, a process for the operator to request the seized property be
2013 Law Summaries
returned, and a process for the operator to seek restitution against the person who delivered the item. Effective Aug. 1, 2013.
• Video security cameras required. Section 5,
subd. 13 extends existing provisions in Minn. Stat.
§ 325E.21, subd. 9 requiring that scrap metal dealers must install and maintain security cameras to scrap
vehicle operators. Each operator must install and
maintain at each location video surveillance cameras,
still digital cameras, or similar devices positioned to
record or photograph a frontal view showing a clear
and readily identifiable image of the face of each seller
of a scrap vehicle who enters the location. The scrap
vehicle operator must also photograph the seller’s
vehicle, including license plate, either by video camera
or still digital camera, so that an accurate and complete
description of it may be obtained from the recordings made by the cameras. Photographs and recordings
must be clearly and accurately associated with their
respective records. The camera must be kept in operating condition, be turned on when the location is
open or when a vehicle is being purchased, and must
record and display the accurate date and time. Recordings and images must be retained by the scrap vehicle
operator for a minimum period of 60 days and must
at all reasonable times be open to the inspection of
any properly identified law enforcement officer. If the
scrap vehicle operator does not purchase some or any
scrap vehicles at a specific business location, the operator need not comply with this subdivision with respect
to those purchases. This subdivision does not apply to
the purchase of a scrap vehicle by a used vehicle parts
dealer licensed under Minn. Stat. § 168.27, for dismantling the vehicle for its parts. Effective Jan. 1, 2014.
• Preemption of local ordinances provided. Section 5, subd. 14 provides that the provisions in this
section preempt and supersede any local ordinance or
rule concerning the same subject matter. Effective Aug.
1, 2013.
• Reporting period shortened. Section 6 amends
Minn. Stat. § 168A.153, subd. 1 by shortening from 30
days to 10 days the time by which a dealer who buys a
vehicle to be dismantled or destroyed must report the
vehicle’s license plate number and identification number,
and the seller’s name and driver’s license number. Effective
Aug. 1, 2013.
• Notification requirement provided. Section 7
amends Minn. Stat. § 168A.153, subd. 3 by providing that the notification required under subd. 1 must be
made electronically as prescribed by the registrar. Effective
Aug. 1, 2013.
• Definitions added to scrap metal dealer
regulations. Section 8 amends Minn. Stat. § 325E.21,
subd. 1 by adding definitions. “Interchange file
Page 11
specification format” means the most recent version
of the Minneapolis automated property system
interchange file specification format. “Seller” means any
seller, prospective seller, or agent of the seller. “Proof
of identification” means a driver’s license, Minnesota
identification card number, or other identification
document issued for identification purposes by any state,
federal, or foreign government if the document includes
the person’s photograph, full name, birth date, and
signature. Effective Aug. 1, 2013.
• Scrap metal dealer required to obtain signed
statement. Section 9 amends Minn. Stat. § 325E.21,
subd. 1a by requiring a statement signed by the seller,
under penalty of perjury attesting that the scrap metal is
not stolen and is free of any liens or encumbrances and
the seller has the right to sell it. Effective Aug. 1, 2013 and
expires Jan. 1, 2015.
• Purchase or acquisition record required. Section 10 adds a section to Minn. Stat. § 325E.21. It provides that every scrap metal dealer, including an agent,
employee, or representative of the dealer, shall create a
permanent record written in English, using an electronic
record program at the time of each purchase or acquisition of scrap metal. The section outlines the information
required to be kept as part of the record, which must
at all reasonable times be open to the inspection of any
properly identified law enforcement officer.
• Exceptions. No record is required for property purchased from merchants, manufacturers, salvage pools,
insurance companies, rental car companies, financial
institutions, charities, dealers licensed under Minn.
Stat. § 168.27, or wholesale dealers, having an established place of business, or of any goods purchased at
open sale from any bankrupt stock, but a receipt must
be obtained and kept by the person, which must be
shown upon demand to any properly identified law
enforcement officer.
• Personal information protected. A dealer may not
disclose personal information concerning a customer
without the customer’s consent unless the disclosure
is required by law or made in response to a request
from a law enforcement agency. A dealer must implement reasonable safeguards to protect the security of
the personal information, defined as any individually
identifiable information gathered in connection with a
record. Effective Jan. 1, 2015.
• Automated property system requirements provided. Section 11 adds a section to Minn. Stat. §
325E.21. It requires dealers to completely and accurately
provide all the required information by transferring it
from their computer to the automated property system, by the close of business each day, using the interchange file specification format. A dealer who does not
have an electronic point-of-sale program may request to
Page 12
be provided software by the automated property system
to record the required information. If the dealer uses a
commercially available electronic point-of-sale program
to record the information required in this section, it
must submit the information using the interchange file
specification format. Any record submitted by a dealer
that does not conform to the interchange file specification format must be corrected and resubmitted the next
business day. No fees may be charged to a dealer for use
of the automated property system until such time as the
Legislature enacts a fee schedule. A dealer must display a sign of sufficient size, in a conspicuous place in
the premises, which informs all patrons that transactions
are reported to law enforcement daily. Every local law
enforcement agency must participate in the automated
property system as an individual agency or in conjunction with another agency or agencies to provide the service. Effective Jan. 1, 2015.
• Registration requirement sunset provided. Section 12 amends Minn. Stat. § 325E.21, subd. 4, which
requires every scrap metal dealer to register with and
participate in the criminal alert network described in
Minn. Stat. § 299A.61. It provides that the requirement
sunsets on Jan. 1, 2015, when new requirements go into
effect. Effective Jan. 1, 2015.
• Investigative holds for scrap metal purchases
modified. Section 13 amends Minn. Stat. § 325E.21,
subd. 8. It authorizes an initial 72-hour hold upon notification from law enforcement that the scrap metal
dealer shall not sell or remove an item. It requires the
agency to confirm the hold in writing, and it then
remains in effect for 30 days from date of initial notification. It provides that the agency may confiscate the
stolen item or evidence and remove it, place the item
on hold and leave it in the premises, or direct its release
to an owner. Finally, it provides that if law enforcement
does not timely issue a notification to confiscate or issues
the notification but fails to remove the item within 15
days, the dealer may process the item. Effective Aug. 1,
2013.
• Video security cameras required. Section 14 amends
Minn. Stat. § 325E.21, subd. 9, so that it matches the
video camera requirements in for scrap vehicle operators
under 168A.1501 (See, Section 5, subd. 13 above). Effective Jan. 1, 2014.
• Preemption of local ordinances provided. Section 15 adds a subdivision to Minn. Stat. § 325E.21. It
provides that the provisions in this section preempt and
supersede any local ordinance or rule concerning the
same subject matter. Effective Aug. 1, 2013.
• Automated Property System standards required.
Section 16 is a 2013 Session Law. It requires the Minneapolis Police Department, in consultation with law
enforcement, prosecutors, the commissioner of the
Department of Public Safety, legislators, and representatives from each regulated industry, to develop standards
for the Automated Property System as it pertains to
scrap metal. Proposed standards are to be submitted to
the Legislature by Jan. 15, 2014. Final standards are to be
completed by July 1, 2014, and provided to scrap metal
dealers by July 15, 2014. Effective May 25, 2013.
(AF)
DATA PRACTICES
Safe At Home Program
Chapter 76 (HF 580*/SF 509) clarifies the duties and
responsibilities related to the Safe At Home Program
administered by the Secretary of State. The program, created in 2006, provides an alternative mailing address to
individuals, such as victims of domestic violence, who need
to keep their location private for their personal safety. The
bill creates a new section of the Minnesota Government
Data Practices Act (MGDPA), Minn. Stat. § 13.045, that
classifies identity and location data of participants as private
data. The data may not be shared with other government
entities or disseminated to any person unless the participant expressly consents in writing, the sharing is mandated
by court order, or is required for certain law enforcement
purposes. The bill requires that a participant must inform a
governmental entity in writing that he or she is a certified
participant. A government entity must accept the alternative address maintained by the Secretary of State. Finally,
the bill states that the program does not create any affirmative duty on a governmental entity to independently
determine whether it maintains data on a program participant. Effective July 1, 2013. (PH)
Omnibus data practices bill
Chapter 82 (HF 695/SF 745*) is the omnibus data practices bill. The following provisions are relevant to cities:
• Citizen contact information classified as private data. Section 1 is an initiative sponsored by the
League of Minnesota Cities that classifies as private data
the email addresses and phone numbers of citizens who
submit their contact information to cities for “notification purposes or as part of a subscription list for an
entity’s electronic periodic publications.” Notifications
and electronic periodic publications include items such
as snow emergency notices, newsletters, monthly crime
reports, and other general information sent by cities to
residents. The names of people on the lists and the content of any communications remain public data. Effective
May 24, 2013, and applies to data collected, maintained, or
received before, on, or after that date.
• Security information definition expanded. Section 2 amends Minn. Stat. § 13.37, subd. 1, to expand the
2013 Law Summaries
definition of security information. Current law makes
certain contact information of volunteers participating in
community crime prevention programs private data. The
bill expands the definition to include email addresses,
internet account information, and GPS locations. Effective Aug. 1, 2013.
• Settlement agreements and investigative data. Section 4 amends Minn. Stat. § 13.43, subd. 2 in order to
clarify two provisions of law adopted in 2012. The 2012
law (Chapter 280) made additional data related to settlement agreements involving certain public officials public
data. Since passage in 2012, two settlement agreements
involving public officials were classified as private data,
and a number of legislators felt they should have been
classified as public under the new law.
• The 2012 law expanded the definition of public official to include (1) the chief administrative officer of
all political subdivisions, (2) the three highest-paid
employees in a city with a population of over 15,000,
and (3) in a city with a population over 7,500, “individuals in a management capacity reporting directly to
the chief administrative officer.” The third classification is changed, and now applies to: “managers; chiefs;
heads or directors of departments, divisions, bureaus,
or boards; and any equivalent position.”
• The 2012 law also made public data related to a
complaint or charge against a covered public official if potential legal claims were released as part of a
settlement agreement with another person. Section
4 deletes “with another person,” and makes public a
complaint involving a covered public official if potential legal claims arising out of the conduct that is the
subject of the complaint or charge are released as part
of a settlement agreement. This change was made so
that the data are public when a settlement agreement
involves the subject of the complaint. Effective May 24,
2013.
• Criminal justice data communications network.
Section 29 amends Minn. Stat. § 299C.46, subd. 3. It
modifies the list of permitted uses of the criminal justice data communications network and allows access
by political subdivisions where authorized by state or
federal law. It establishes standards that agencies must
meet in order to establish secure network connections to
the database, including the performance of background
checks on employees who may access the database.
• Criminal history checks authorized. Sections 30-31
authorizes the performance of criminal history checks, as
defined in Minn. Stat. § 299C.72, on applicants for city
or county employment, persons applying to volunteer
in the city or county, or an individual seeking a city or
county license not otherwise subject to a state or federal
background check. The criminal history check under this
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section cannot be used in place of a statutorily-mandated
or authorized background check. Effective Aug. 1, 2013.
• Background check required for fire department
applicants. Section 32 amends Minn. Stat. § 299F.035
to require background checks on applicants to fire
departments in Minnesota, and to allow background
checks on current employees. The section also requires
that the fire chief perform criminal history record
checks. Effective Aug. 1, 2013.
• Miscellaneous background check requirements.
Sections 33-35 establish background check requirements on individuals applying for an explosives license
(Minn. Stat. § 299F.73), wholesale liquor license (Minn.
Stat. § 340A.301), or retail liquor license (Minn. Stat. §
340A.402). Effective Aug. 1, 2013.
(PH)
ECONOMIC DEVELOPMENT
Additional security for development authority loans
authorized
116J.5764, subd. 1, the statute authorizing the Department
of Employment and Economic Development (DEED) to
administer demolition redevelopment loans to development authorities. The law expands the acceptable means by
which an authority may secure a loan to pay for demolition costs from solely a general obligation of the authority payable primarily from a dedicated revenue source to
include other security subject to review and approval by
DEED, such as TIF or land sale proceeds. Effective Aug. 1,
2013. (PH)
Jobs, economic development, housing, commerce
and energy omnibus budget bill
Chapter 85 (HF 729*/SF 1057) is the omnibus jobs,
economic development, housing, commerce, and energy
bill. It appropriates biennial funding for the Department
of Employment and Economic Development (DEED),
Housing Finance Agency (HFA), Department of Labor &
Industry (DLI), Department of Commerce, Public Utilities Commission (PUC), and various boards. The provisions relating to the jobs and economic development
portion of the bills of interest to cities are summarized
below. (Note: See corresponding issue areas for summaries
of other projects.)
Article 1: Appropriations
Employment and economic development
• Minnesota Investment Fund (MIF). Section 3,
subd. 2(a) appropriates $15 million in FY 2014 and
2015 for the MIF program. MIF funds are available
to local units of government to provide loans to assist
expanding businesses.
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·· Baxter Pharmaceuticals plant in Brooklyn Park. $3 million of the MIF funding is available in FY 2014 for a forgivable loan to facilitate
the purchase and operation of a biopharmaceutical manufacturing facility in Brooklyn Park (Baxter
Pharmaceuticals). If the project meets performance
goals the initial loan will be forgiven, and an additional $2 million made available for subsequent
investment. The facility is also eligible for funding
through the newly-created Minnesota Job Creation
Fund (see Article 3, sec. 8 below).
• Minnesota Job Creation Fund. Section 3, subd.
2(b) appropriates $12 million in FY 2014 and 2015
for the newly created Minnesota Job Creation Fund in
Minn. Stat. § 116J.8748 (see Article 3, sec. 8 below).
• Contaminated site cleanup. Section 3, subds. 2(c)
and (d) appropriate approximately $2 million in FY
2014 and 2015 for the contaminated site clean-up and
development grant program.
• Business development grants. Section 3, subd. 2(e)
appropriates $1.425 million in FY 2014 and 2015 for
business development competitive grants.
• Jobs Skills Partnership. Section 3, subd. 2(f) appropriates $4.195 million in FY 2014 and 2015 for the
Jobs Skills Partnership in Minn. Stat. § 116L.01.
• Redevelopment program. Section 3, subd. 2(g)
appropriates $6 million in FY 2014 and 2015 for the
Redevelopment program under Minn. Stat. § 116J.
571. The program provides communities with grants
to pay up to 50 percent of the costs or redeveloping
blighted industrial, residential, or commercial sites.
• Host Community Economic Development program. Section 3, subd. 2(r) appropriates $875,000 in
FY 2014 and 2015 for the Host Community Economic Development program created in Minn. Stat. §
116J.548 (see Article 3, sec. 3 below).
• Workforce development
• Section 3, subd. 3 appropriates $16.3 million in FY
2014 and $14.8 million in FY 2015 for workforce
development programs.
• Minnesota Trade Office
• Section 3, subd. 5 appropriates $2.3 million in FY
2014 and $2.3 million in FY 2015 for the Minnesota
Trade Office operations.
·· STEP Grants. Of the Trade Office appropriation,
$330,000 in FY 2014 and $300,000 in FY 2015
are for the newly created STEP grant program (see
Article 3, sec. 11 below).
·· Minnesota Marketing. Of the Trade Office appropriation, $180,000 in FY 2014 and 2015 are for the
newly created Minnesota Marketing Initiative (see
Article 3, sec. 12 below).
·· Trade Policy Advisory Group. Of the Trade
Office appropriation, $50,000 in FY 2014 and 2015
are for the newly created Trade Policy Advisory
Group (see Article 3, sec. 9 below).
• Competitive grant limitation
• Section 8 (technical corrections bill, Laws 2013, Ch.
144, Sec. 3) states that no entity receiving a direct
appropriation under Article 3, may apply for a competitive grant under this section during the fiscal years
in which the direct appropriations are received.
Appropriations are effective July 1, 2013.
Article 2: Department of Labor & Industry (DLI) policy
provisions
• Misrepresentation subject to compliance order.
Section 2 amends Minn. Stat. § 177.27, subd. 4 by
adding the statute prohibiting the misrepresentation of
employment relationship (i.e., independent contractor vs.
employee) to the list of laws for which DLI may issue a
compliance order. Effective July 1, 2013.
• Violation of consent orders. Section 5 amends
Minn. Stat. § 326B.081, subd. 3 to allow the commissioner to deny, suspend, limit, or place conditions on a
permit or license if the licensee has violated a consent
order or final order of the commissioner.
Effective July 1, 2013.
• Payment of examination fees. Section 6 amends
Minn. Stat. § 326B.093, subd. 4 and extends the time
that an applicant for a license has to pay the license fee
from 90 to 180 days after notification of passing the
examination. Effective July 1, 2013.
• Scope of State Building Code. Sections 7 & 9 amend
Minn. Stat. §§ 326B.101 and 326B.121 to clarify that
the State Building Code governs the use of buildings, in
addition to their construction, reconstruction, alteration,
and repair. Effective July 1, 2013.
• Definition of “public building.” Section 8 amends
Minn. Stat. § 326B.103, subd. 1 to include a charter
school building project in excess of $100,000 in the definition of a public building. Effective July 1, 2013.
• Elevator constructor license created. Sections 10-30
establish the requirements for the licensing and registration of elevator constructors and contractors. Effective
July 1, 2013.
• Specification review agreements with municipalities. Section 32 amends Minn. Stat. § 326B.43, subd. 2
to update statutory cross references defining which public buildings require state review of plumbing plans and
specifications. Effective July 1, 2013.
• Accelerated plan review eliminated. Section 33
deletes a clause from Minn. Stat. § 326B.49, subd. 2 that
provides for an accelerated plumbing plan review at
twice the regular fee. Effective Jan. 1, 2014.
• Plumbing fees restructured. Section 34 restructures
the plumbing review fees in Minn. Stat. § 326B.49, subd.
3. Effective Jan. 1, 2014.
2013 Law Summaries
• Contractor Recovery Fund. Section 35 amends
Minn. Stat. § 326B.89, subd. 1, and restricts the definition of owner for purposes of the Contractor Recovery Fund to exclude an owner who intends to use
the property for a business purpose and not as owneroccupied real estate. An excluded owner would not be
eligible to receive compensation from the fund. Effective
July 1, 2013.
• Manufactured home dealer license changes. Section 36 amends Minn. Stat. § 327B.04, subd. 4 and
exempts certain owners of manufactured home parks
from meeting the two-year prior experience requirement necessary for obtaining a dealer license. Effective
July 1, 2013.
Article 3: Department of Employment and Economic
Development (DEED) policy provisions
• Cost of living study. Section 1 adds a new statute,
Minn. Stat. § 116J.013, which requires DEED to conduct an annual cost of living study in Minnesota. The
study must include an analysis of statewide and county
cost-of-living data, employment data, and job vacancy
data. Effective July 1, 2013.
• Labor market data. Section 2 adds a new statute,
Minn. Stat. § 116J.4011, which requires DEED, in consultation with the Office of Higher Education and local
workforce councils, to produce and publish a labor market analysis describing the alignment between employer
requirements and workforce qualifications. The information must be easily accessible and readable, and
prominently presented on the websites of DEED and
workforce centers. Effective July 1, 2013.
• Host community economic development grants.
Section 3 creates a new program in Minn. Stat. §
116J.548 that will provide grants for the acquisition and
betterment of public owned capital improvements to
communities in the seven-county metro area that host
waste disposal facilities. There is no local match required.
• Small cities development block grant changes.
Section 4 modifies Minn. Stat. § 116J.8731, subd. 2 to
allow DEED to provide a forgivable loan from the Small
Cities Development Block Grant Program directly to a
private enterprise without requiring an application from
the local community, other than a resolution of support.
Eligible applicants include development authorities, provided they have municipal approval. Effective July 1, 2013.
• Minnesota Investment Fund loans authorized.
Section 5 amends Minn. Stat. § 116J.8731, subd. 3 and
authorizes the Minnesota Investment Fund (MIF) to
fund loans (in addition to grants) for infrastructure. Effective July 1, 2013.
• Minnesota Job Creation Fund. Section 8 creates
the Minnesota Job Creation Fund, an initiative of Gov.
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Dayton designed to replace the expiring JOB-Z program. Unlike JOB-Z, the Job Creation Fund is available statewide. The fund will provide up to $1 million
to businesses that meet job creation and private investment requirements. To qualify, a business must create at
least 10 jobs and make $500,000 in private investment.
A qualifying business must be engaged in manufacturing, warehousing, distribution, information technology,
finance, insurance, or professional/technical services.
“Professional services” does not include work performed
primarily by attorneys, accountants, business consultants,
physicians, or health care consultants.
Local government approval required. In order to
qualify, a business must submit an application to the local
government where the facility will be located, and the
local government must submit the application and other
required materials to DEED. Effective July 1, 2013.
• Trade Policy Advisory Council established. Section
9 creates a new 15-member trade policy advisory council to advise the governor and Legislature regarding U.S.
trade agreements. The council will consist of two senators; two representatives; the commissioners of DEED,
Agriculture, and Administration; and eight persons
appointed by the governor. Effective July 1, 2013.
• Minnesota trade offices established. Section 10
creates a new statute, Minn. Stat. § 116J.978, directing
DEED to establish three trade offices in foreign markets
selected for their potential to increase Minnesota exports
and attract foreign investment. Effective July 1, 2013.
• STEP Grants created. Section 11 creates a new statute, Minn. Stat. § 116J.979, directing DEED to establish
a new STEP (State Trade and Export Promotion) grant
program to provide assistance to Minnesota companies
with an interest in exporting products or services to foreign markets. The maximum grant is $7,500. Effective July
1, 2013.
• Invest Minnesota marketing initiative. Section 12
creates a new statute, Minn. Stat. § 116J.9801, directing
DEED to establish an initiative to brand the state’s economic development initiatives and promote Minnesota
business opportunities. Effective July 1, 2013.
• Dakota County CDA granted MIF authority. Section 22 creates a new statute, Minn. Stat. § 383D.412,
granting the Dakota County Community Development Agency the authority to apply for and receive state
money from the Minnesota Investment Fund. Currently,
only general purpose local governments are eligible
recipients. The Dakota County Board must pass a resolution approving such treatment, and the members of the
County Board must be the same as the members of the
CDA. Effective July 1, 2013.
Article 5: Miscellaneous provisions
• Use of paper made in Minnesota. Section 1 amends
Minn. Stat. § 16B.122 to require public entities, includ-
Page 16
ing cities, to purchase paper which has been made on a
paper machine located in Minnesota, whenever practicable. This is in addition to existing requirements related to
the purchase and use of paper by public entities. Effective
July 1, 2013.
• Municipal regulation of barber shops. Section 17
clarifies Minn. Stat. § 154.26. Current law states that a
municipality may regulate the operating hours of a barber shop within its municipal limits, and the new language clarifies that this power is in addition to all other
applicable local regulations. Effective July 1, 2013.
• Office of Collaboration and Dispute Resolution
created. Sections 31 & 32 create an Office of Collaboration and Dispute Resolution within the Bureau of
Mediation Services to promote the use of community
mediation and to assist state agencies and local governments to improve collaboration and dispute resolution.
The Bureau is authorized to issue grants to nonprofit
community mediation entities that assist in resolution of
disputes. Effective July 1, 2013.
(PH)

ELECTIONS
Omnibus elections policy bill
Chapter 131 (HF 894*/SF 677) is the omnibus elections
bill. Some of the most notable changes to elections administration include: permitting no excuse absentee voting;
reducing the number of voters who can be vouched for
from 15 to eight; reducing the number of elections judges
from four to three except in statewide elections; establishing pilot sites for the use of electronic rosters and a task
force; and specifying the conditions under which a vacancy
in nomination exists for a partisan and non-partisan office.
Article 1: Absentee voting modifications
• No excuse absentee voting. Section 2 amends Minn.
Stat. § 203B.02, subd. 1 establishing no excuse absentee
voting. Sections 3 and 4 amend Minn. Stat. § 203B.04 to
make conforming changes.
• Processing absentee ballots seven days before
Election Day. Section 8 amends Minn. Stat. §
203B.121, to increase the time to process absentee ballots
from four days prior to Election Day to seven. Sections 6
and 7 amend Minn. Stat. § 203B.121 making conforming changes.
Effective Jan. 1, 2014, and applies to voting at elections conducted
on the date of the state primary in 2014 and thereafter.
Article 2: Elections administration including redistricting,
vouching and public funded recounts
Several sections eliminate obsolete reference in law that
assign and title ballots in a particular color, based on the
offices or questions to be presented on the ballot. Modifications for ballot questions are made in several sections.
• Sections 1 and 2 modify the boundaries of senate districts 39 (Stillwater City/Stillwater Township) and 49
(Edina) and their house districts (39A and B/49A and B,
respectively) to correct redistricting errors as ordered by
a Special Redistricting Panel on Feb. 21, 2012. Effective
for the state primary and state general elections conducted in
2014 for terms of office beginning on the first Monday in January 2015, and for all elections held thereafter.
• Section 7 amends Minn. Stat. § 201.061, subd. 3 to
reduce the number of persons a voter may vouch of in
the polling place on election day from 15 to eight. An
existing exemption from this limitation for employees of
defined residential facilities is unchanged.
• Section 9 amends Minn. Stat. § 201.091, subd. 8 to eliminate the requirement of at least one telecommunications
device for the deaf for voter registration information in
every city of the first, second and third class.
• Section 14 amends Minn. Stat. § 203B.05, subd. 1 to
require that the municipal clerk who has been designated to administer absentee ballots must also be responsible for the administration of a ballot board as provided
in section 203B.121. A clerk of a city that is located in
more than one county may only administer absentee
ballots and the absentee ballot board if the clerk has been
designated by each of the county auditors or provided
notice to them that the city will administer absentee
voting.
• Section 15 amends Minn. Stat. § 203B.08, subd. 3
instructing that absentee ballots received on Election Day
either after 3 p.m. or after the last mail delivery be marked
as received late and not delivered to the ballot board.
• Section 17 amends Minn. Stat. § 203B.121, subd. 1 to
allow ballot boards to include deputy city clerks who
have received training in the processing and counting of
absentee ballots.
• Section 21 amends Minn. Stat. § 203B.04 by creating a
fourth subdivision prohibiting a candidate who files an
affidavit of candidacy for one office to subsequently file
another affidavit of candidacy for a different office to be
elected at the same general election, unless the candidate
withdraws the first affidavit of candidacy.
• Section 23 amends Minn. Stat. § 204B.22, subd. 1 reducing the required number of elections judges from four
to three in a precinct for elections other than the state
a general election except for precincts with fewer than
500 registered voters. Those precincts may use the minimum number of three elections judges for the state general election.
• Section 33 amends Minn. Stat. § 204C.15, subd. 1 eliminates an allowance for election judges to select two individuals of different major political parties to assist a voter
in marking the voter’s ballot. A voter may select a person
to assist.
2013 Law Summaries
• Section 39 amends Minn. Stat. § 204C.36, subd. 1
modifies the vote different thresholds for publicly
funded recounts at the expense of the city. If there are
50,000 or more votes cast, a recount may be requests if
the difference between the apparent winner and loser is
0.25 percent. If the number of votes cast is more than
400, but less than 50,000, the difference must be less
than 0.5 percent.
• Section 52 amends Minn. Stat. § 204D.19, subd. 2 prohibiting a special election when the Legislature is in
session , when the Legislature will be in session for the
elected person to be seated, from occurring during the
four days before or after a state holiday as defined in
Minn. Stat. § 645.44, subd. 5.
• Section 54 amends Minn. Stat. § 205.10, subd. 3 amends
the time period in which cities may conduct a special
election prohibiting cities from holding a special election
as defined in subd. 1 from 40 to 56 days after the state
general election.
• Section 55 amends Minn. Stat. § 205.13, subd. 1a adding the requirement that municipal clerks’ offices accept
candidate filings from 1 p.m. to 5 p.m. on the last day of
the filing period for municipal offices.
• Section 56 amends Minn. Stat. § 205.16, subd. 4 increasing the number of days before a municipal election that
the municipal clerk must provide notice of the election
to the county auditor from 67 to 74 days. Section 57
amends Minn. Stat. § 205.16, subd. 5 for notice to the
Secretary of State.
• Sections 58 and 59 amend Minn. Stat. § 205.13 to standardize ballot formatting requirements across all cities
and towns for municipal primary elections.
• Section 67 amends Minn. Stat. § 206.57, adding subdivision 8 exempting precincts using a precinct count voting
system from a requirement that ballot boxes contain two
separate compartments. The requirement is currently
contained in administrative rule 8230.4355. Effective May
24, 2013.
• Section 69 Minn. Stat. § 206.89, subd. 2 requiring that
the postelection review must not begin before the 11th
day after the state general election and must be completed no later than the 18th day after the state general
election. This section also allows for the counting of
absentee ballots with all other ballots from the individual
precinct if the precinct is selected for review.
• Section 70 amends Minn. Stat. § 206.89 adding a new
subdivision providing that a postelection review is not
required for an office that may be subject to a publicly
funded recount.
• Section 71 amends Minn. Stat. § 206.90, subd. 6 modifying standards for titling ballots in precincts using an optical scan voting system. In state elections, a single ballot
title must be used, as provided in sections 204D.08, subdivision 6, and 204D.11, subdivision 1. In odd-numbered
Page 17
years when both municipal and school district offices or
questions appear on the ballot, the single ballot title “City
(or Town) and School District Ballot” must be used.
• Section 78 amends Minn. Stat. § 340A.62 to standardize
the form of a referendum ballot question related to the
operation of a municipal liquor store to “Shall the city of
(name) discontinue operating the municipal liquor store
on (Month xx, 2xxx)?”
• Section 84 appropriates $60,000 to the Office of the
Secretary of State to develop functionality within the
statewide voter registration system to facilitate the processing and tracking of mail ballots.
Effective July 1, 2013 unless otherwise noted.
Article 3: Loss and restoration of voting rights
This article streamlines data sharing of those convicted of a
felony whose voting rights have not been restored between
the Department of Corrections and the Office of the Secretary of State. Of most relevance to cities is section 4,
subd. 3, which amends Minn. Stat. § 203B.06, subd. 3. If a
municipal clerk receives application for an absentee ballot
with an address of an adult correctional facility, they must
promptly transmit a copy of the application to the county
attorney for investigation. Effective June 15, 2013.
Article 4: Electronic rosters
This language is 2013 session law and establishes electronic
roster pilot sites and a task force.
• Electronic roster pilot project. The jurisdictions
that may participate as pilot sites for the 2013 municipal elections are Dilworth, Minnetonka, Moorhead, Saint
Anthony, and Saint Paul. Each city that chooses to participate will identify certain precincts that will use the
rosters for election day registration, and then upload the
data to the statewide voter registration system (SVRS).
• Electronic roster task force. The task force will consist of 15 members and research various issues related to
the use of the rosters, including the ability to use photographs within the rosters. The League of Minnesota
Cities will appoint one member to the task force and
the first meeting will be convened by July 1, 2013 by the
Office of the Secretary of State. A report summarizing
the group’s findings on the data security, reliability, and
transferability to the SVRS must be completed and submitted to the appropriate legislative committees by Jan.
31, 2014.
Effective May 24, 2013.
Article 5:Vacancies in nomination
This article modifies existing language regarding death or
withdrawal for partisan offices and establishes a new section of law for vacancies in nomination for non-partisan
office.
Page 18
• Vacancy in nomination for partisan office. Sections 1-7 amend Minn. Stat. § 204B.13 establishing the
conditions under which a vacancy in nomination exists
for a partisan office. A vacancy exists when a candidate:
dies; withdraws during the withdrawal period of two
days after the filing period for the office closes; or withdraws by filing an affidavit of withdrawal, at least one day
prior to the general election, due to a catastrophic illness that will permanently and continuously incapacitate
and prevent the candidate from performing the duties of
the office sought. An affidavit under this clause must be
accompanied by a certificate verifying the illness, signed
by at least two licensed physicians. If the vacancy in
nomination occurs 79 or more days before the general
election (the 79th day prior to a general election falls in
mid-late August), the candidate’s political party may file a
certificate nominating a new candidate, no later than 71
days before the general election, and that newly-named
candidate must appear on the general election ballot. The
party is permitted to provide its own internal rules for
selecting a new nominee. If the vacancy in nomination
occurs within 79 days of the general election, the general election ballot would remain unchanged (the name
of the candidate that died or withdrew would remain
on the ballot), but the results of that election would not
be counted. Instead, the office would move to a special
election. If a special election is required, all other candidates appearing on the ballot for that office automatically are forwarded to the special election ballot; no new
candidate filings are permitted. The major political party
of the candidate that died or withdrew would be permitted to nominate a new candidate, no later than seven
days after the general election.Voters voting in a polling
place on the date of the general election must be notified of the procedure for conducting the special election
for the affected office.
• Vacancy in nomination for non-partisan office.
Sections 8-11 recodify existing law into Minn. Stat. §
204B.13 related to vacancies in nomination when a
candidate formally withdraws and adds a new provision providing that a vacancy in nomination also exists if
a candidate for a non-partisan office—except a judicial
office—for which only one or two candidates filed or
who was nominated at a primary dies more than 79 days
prior to the date of the general election. If a vacancy in
nomination occurs under one of the situations specified
in this section, the candidate filing period for the office
would be re-opened, allowing new candidates to file for
the office. In the event of a death of a non-partisan candidate 79 or fewer days prior to the date of the election,
or the death of a judicial candidate regardless of the date
of death, the deceased candidate’s name would continue to appear on the ballot. If the deceased candidate is
elected, the office would be declared vacant at the start
of the new term and filled following procedures contained in existing law.
Effective May 24, 2013, and applies to vacancies in nomination
on or after that date. (AL)
EMERGENCY MEDICAL SERVICES
Emergency medical responders requirements modified
Chapter 13 (HF 201/SF 166*) modifies provisions to
include advanced emergency medical technicians (AEMT)
in the staffing requirements for advanced life support
responses. It also updates inspections provisions and provides requirements for emergency medical responder registration.
• Advanced life support staffing requirements modified. Section 1 amends Minn. Stat. § 144E.101, subd.
7, to include “advanced emergency medical technician”
(AEMT) in the requirements for minimum staffing for
an advanced life-support ambulance.
• Inspections of electronic files authorized. Section 2
amends Minn. Stat. § 144E.18 to specify that the Emergency Medical Services Regulatory Board (EMSRB)
may review electronic files when inspecting ambulance
services.
• Education programs conforming changes provided. Section 3 amends Minn. Stat. § 144E.27, subd. 1,
to make conforming changes with section 4 below.
• Education programs approval required. Section 4
amends Minn. Stat. § 144E.27, by adding a subdivision.
It requires that all education programs for emergency
medical responders must be approved by the EMSRB.
The section also sets out criteria for board approval.
• AEMT and paramedic requirements specified.
Section 5 amends Minn. Stat. § 144E.285, subd. 2. It
adds AEMT to provisions related to education requirements for paramedics.
• Reapproval programs requirements modified. Section 6 amends Minn. Stat. § 144E.285, subd. 4. It modifies reapproval requirements for education programs for
EMTs, AEMTs and paramedics by adding that for reapproval, programs must maintain the minimum average
yearly pass rate set by the EMSRB.
Continuing education requirements for community
paramedics modified
144E.28, subd. 9. It requires that, in addition to existing
paramedic continuing education requirements, an individual certified as a community paramedic must complete 12
hours of continuing education in clinical topics approved
by the ambulance service medical director. Effective Aug. 1,
2013. (AF)
2013 Law Summaries

EMPLOYMENT
Workers’ Compensation Reinsurance Association
requirements modified
Chapter 15 (HF 504*/SF 372) amends Minn. Stat. § 79.35,
which relates to the Workers’ Compensation Reinsurance Association (WCRA), a nonprofit reinsurance pool
to which state law requires workers’ compensation insurance companies, and employers that self-insure for workers’
compensation, to be members. The chapter eliminates one
component of the premium required for the reinsurance
coverage, namely the cost of the claims that exceed the
prefunded limit. It also eliminates from the law any references to the prefunded limit. Effective Jan. 1, 2015. (AF)
Prompt payment of wages modified
Chapter 27 (HF 748*/SF 602) amends two sections of law
relating to payment of wages upon discharge and payment
of wages upon quitting or resignation. Similar changes are
made to each section of law.
• Penalty for failure to make payment of wages
promptly modified. Section 1 amends Minn. Stat.
§ 181.13, a law regulating an employer’s payment of
wages upon the discharge of an employee. It requires
the payment of wages at a rate in excess of the regular rate if the higher rate is set by law, regulation, rule,
ordinance, government resolution or policy, contract,
or other legal authority. An employee may recover an
additional amount equal to the unpaid wages as compensatory damages. An employee’s demand for payment
under this section must be in writing, but need not state
the precise amount of unpaid wages or commissions. An
employee may directly seek and recover payment from
an employer under this section even if the employee is
not a party to a contract that requires the employer to
pay the employee at the rate of pay demanded by the
employee, so long as the contract or any applicable statute, regulation, rule, ordinance, government resolution,
or policy, or other legal authority requires payment to
the employee at the particular rate of pay. The employee
shall be able to directly seek payment at the highest rate
of pay provided in the contract or applicable law, and any
other related remedies as provided in the section.
• Prompt payment to employees who quit or resign
modified. Section 2 amends Minn. Stat. § 181.14,
a law relating to payment to employees who quit or
resign. It provides that wages are earned and unpaid if
the employee was not paid for all time worked at the
regular rate of pay or the rate required by law, regulation, rule, ordinance, resolution, policy, contract, or
other legal authority, whichever is greater. An employee’s demand for payment under this section must be in
writing but need not state the precise amount of unpaid
Page 19
wages or commissions. An employee may directly seek
and recover payment from an employer under this section even if the employee is not a party to a contract that
requires the employer to pay the employee at the rate of
pay demanded by the employee, so long as the contract
or any applicable statute, regulation, rule, ordinance, government resolution or policy, or other legal authority
requires payment to the employee at the particular rate
of pay. The employee shall be able to directly seek payment at the highest rate of pay provided in the contract
or applicable law, and any other remedies related thereto
as provided in this section.
• Prompt payment requirement waived under certain circumstances. Section 2 also removes language
eliminating coverage of the law to any employee after a
quit or discharge, who, upon audit, is found to have not
properly accounted for or paid to the employer funds or
property for which they were responsible. It prohibits
any deductions from wages due or earned unless specifically authorized.
Effective April 30, 2013. (AF)
• Private employers added to “Ban the Box” law.
Section 3 amends Minn. Stat. § 364.021 by adding private employers to those who cannot inquire into or
consider the criminal history of a job applicant until the
applicant has been selected for an interview. Existing law
currently applies only to public employers.
• Private employers investigation and remedies
provided. Section 4 adds a subdivision to Minn. Stat.
§ 364.06. It provides for investigation and the imposition of fines by the commissioner of the Department of
Human Rights for private sector violations of the “Ban
the Box” law.
• Exception provided. Section 5 amends Minn. Stat. §
364.09. It states that the law does not supersede other
statutorily-required criminal history background checks
or records required for particular employment.
• Violation of civil rights clarified to include public employer violations. Section 6 amends Minn.
Stat. § 364.10 by clarifying that a violation of the rights
established in Minn. Stat. § 364.01 to 364.10 by a public
employer constitutes a violation of a person’s civil rights.
Effective Jan, 1, 2014. (AF)
Limits on reliance on criminal history for employment purposes expanded
Chapter 61 (HF 690/SF 523*) amends the “Ban the
Box” law. It clarifies the existing law that applies to public
employers, and expands the limits on reliance on criminal
history to include private employers. It also applies criminal
offender rehabilitation requirements to private employers.
• Conditions precident to employment not
required. Section 1 amends Minn. Stat. § 181.53 by
clarifying that nothing in this section precludes an
employer from requesting or considering an applicant’s
criminal history pursuant to Minn. Stat. § 364.021,
which exempts the Department of Corrections and
other public employers that have a statutory duty to
conduct a criminal history background check or otherwise take into consideration a potential employee’s
criminal history during the hiring process or other
applicable law.
• Limitation on admissibility of criminal history
provided. Section 2 amends Minn. Stat. § 181.981,
subd. 1, by providing that information regarding a criminal history record of an employee or former employee
may not be introduced as evidence in a civil action
against a private employer or its employees or agents
that is based on the conduct of the employee or former
employee, if the action is based solely upon the employer’s compliance with section 364.021, which exempts the
Department of Corrections and other public employers
who have a statutory duty to conduct a criminal history
background check or otherwise take into consideration
a potential employee’s criminal history during the hiring
process or other applicable law.
Page 20
Workers’ compensation modifications provided
Chapter 70 (HF 1359/SF 1234*) makes policy and housekeeping changes made to worker’s compensation, adopts
recommendations of the Workers’ Compensation Advisory
Council and requires a report.
Article 1: Dept. of Labor and Industry (DLI) provisions
modified
Article 1 contains provisions pertaining to DLI.
• Complaint investigation requirement modified.
Section 1 amends Minn. Stat. § 176.102, subd. 3a, by
giving the commissioner of DLI the discretion over
whether to investigate a complaint filed against a qualified rehabilitation consultant (QRC) or rehabilitation
vendor. Existing law provides that the commissioner
must investigate. Effective May 17, 2013.
• $7,500 cap pertaining to administrative conferences modified. Section 2 amends Minn. Stat §
176.106, subd. 1. Currently, DLI may hold administrative
conferences and issue decisions involving medical disputes where the amount involved is $7,500 or less. This
section removes the $7,500 cap when the issue being
disputed is whether the provider’s charge for a service or
product is excessive. Effective May 17, 2013, and applies to
medical disputes filed on or after that date.
• Special compensation fund reports modified. Section 3 amends Minn. Stat. § 176.129, subd. 13. It clarifies
that an insolvent insurer is not entitled to reimbursement
of supplementary or second injury benefits from the
special compensation fund, except for those who filed
for reimbursement prior to June 1, 2013. Effective May
17, 2013, and applies to claims for reimbursement filed with
the special compensation fund on or after that date.
• Workers’ compensation medical data use for
genetic information prohibited. Section 4 amends
Minn. Stat. § 176.138. It provides that medical data
collected, stored, used, or disseminated by or filed
with the DLI in connection with a claim for workers’
compensation benefits does not constitute genetic
information for the purposes of Minn. Stat. § 13.386.
• Notice by DLI, rights of parties modified. Section
5 amends Minn. Stat. § 176.183, subd. 4. It requires the
special compensation fund to provide notice to employers of a proposed settlement together with a copy of the
settlement agreement. The notice must state that if the
employer does not object to the settlement within 15
days, it will be deemed to have waived any defenses it
may have to a subsequent claim for reimbursement by
the fund. Effective May 17, 2013.
• Receipts for payment of compensation and filing
modified. Section 6 amends Minn. Stat. § 176.245. It
allows DLI to use any type of sampling methodology to
perform the evaluation of whether insurers and employers are providing the department evidence of payment of
compensation. Current law requires the department to
use Six Sigma methodology. Effective May 17, 2013.
• Settlement of claims provision modified. Section 7
amends Minn. Stat. § 176.521. It provides that if a workers’ compensation case is settled at the time it is pending
before the Workers’ Compensation Court of Appeals, the
proposed settlement must be approved by an administrative law judge (rather than the Workers’ Compensation
Court of Appeals). Effective for settlement agreements submitted for approval on or after July 1, 2013.
Article 2:Workers’ Compensation Advisory Council
(WCAC) recommendations adopted
Article 2 contains provisions recommended by the WCAC.
• Definition of “occupational disease” expanded
to include mental impairments. Section 1 amends
Minn. Stat. § 176.011, subd. 15. It modifies the definition of “occupational disease” to mean mental impairments or physical diseases arising out of and in the
course of employment to provide coverage for post-traumatic stress disorder (PTSD). Mental impairment means
a diagnosis of PTSD by a licensed psychiatrist or psychologist. Mental impairment is not considered a disease
if it results from a disciplinary action, work evaluation,
job transfer, layoff, demotion, promotion, termination,
retirement, or similar action taken in good faith by the
employer. Effective Oct. 1, 2013, and applies to injuries
occurring after that date.
• Definition of “personal injury” expanded to
include mental impairments. Section 2 amends
Minn. Stat. § 176.011, subd. 16. It modifies the defini-
2013 Law Summaries
tion of “personal injury” to mean mental impairments
or physical diseases arising out of and in the course of
employment to provide coverage for PTSD. Effective Oct.
1, 2013, and applies to injuries occurring after that date.
• Limitation of fees modified. Section 3 amends Minn.
Stat. § 176.081, subd. 1. It increases the cap on legal services fees to $26,000. The current cap is $13,000. Effective
Oct. 1, 2013, and applies to injuries occurring after that date.
• Additional award authorization clarified. Section
4 amends Minn. Stat. § 176.081, subd. 7. It clarifies that
the subdivision applies only to contingent fees payable
from the employee’s compensation benefits, and not to
other fees paid by the employer and insurer, including
but not limited to those fees payable for resolution of a
medical dispute or rehabilitation dispute, or pursuant to
Minn. Stat. § 176.191. Effective Oct. 1, 2013, and applies to
injuries occurring after that date.
• Temporary total disability benefit level increased.
Section 5 amends Minn. Stat. § 176.101, subd. 1. It
increases the maximum weekly benefit amount from the
current law level of $850 per week to 102 percent of the
statewide average weekly wage for the period ending
Dec. 31 of the preceding year. Effective Oct. 1, 2013, and
applies to injuries occurring after that date.
• Job development services limitations provided. Section 6 adds a provision to Minn. Stat. § 176.102, subd. 5.
It provides that “job development” means systematic contact with prospective employers resulting in opportunities
for interviews and employment that might not otherwise
have existed, and includes identification of job leads and
arranging for job interviews. Job development facilitates a prospective employer’s consideration of a qualified employee for employment. Job development services
provided by a qualified rehabilitation consultant firm or a
registered rehabilitation vendor must not exceed 20 hours
per month or 26 consecutive or intermittent weeks. When
13 consecutive or intermittent weeks of job development
services have been provided, the qualified rehabilitation
consultant must consult with the parties and either file a
plan amendment reflecting an agreement by the parties to
extend job development services for up to an additional
13 consecutive or intermittent weeks, or file a request for
a rehabilitation conference under Minn. Stat. § 176.106.
The commissioner of DLI or a compensation judge may
issue an order modifying the rehabilitation plan or make
other determinations about the employee’s rehabilitation,
but must not order more than 26 total consecutive or
intermittent weeks of job development services. Effective
Oct. 1, 2013, and applies to injuries occurring after that date.
• Rehabilitation consultants and vendors limits provided. Section 7 amends Minn. Stat. § 176.102, subd.
10. It provides that an individual qualified rehabilitation consultant registered by DLI must not provide any
medical, rehabilitation, or disability case management
services related to an injury that is compensable under
Page 21
this chapter when these services are part of the same
claim, unless the case management services are part of an
approved rehabilitation plan. Effective Oct. 1, 2013.
• Administrative conference 60 day requirement
modified. Section 8 amends Minn. Stat. § 176.106,
subd. 3. It directs that administrative conferences on
rehabilitation issues must be held within 21 days after
a conference is requested, unless the issue involves only
fees for rehab services that were already provided, or
there is good cause for holding the hearing later than 21
days. Effective Oct. 1, 2013.
• Liability limit technical change provided. Section 9
amends Minn. Stat. § 176.136, subd. 1b. It specifies that
a prevailing charge for treatment, services, and supplies,
and the liability of the employer, is limited. It must be
based on no more than two years of billing data immediately preceding the service. Effective on Oct. 1, 2013, and
must be used to establish prevailing charges on or after that date.
• Adjustment of benefits modified. Section 10
amends Minn. Stat. § 176.645. It provides that, for injuries occurring on and after Oct. 1, 2013, no adjustment
increase shall exceed 3 percent a year. If the adjustment under the formula of this section would exceed 3
percent, the increase shall be 3 percent. No adjustment
under this section shall be less than 0 percent. Effective
Oct. 1, 2013, and applies to injuries occurring on and after
that date.
• Treatment standards for medical services clarified.
Section 11 amends Minn. Stat. § 176.83, subd. 5. It clarifies the DLI commissioner’s current rulemaking authority
to specifically address criteria for use of opioids or other
narcotic medications. Effective Oct. 1, 2013, and applies to
employees with all dates of injury who receive treatment after the
rules are adopted.
• Patient advocate pilot program established. Section 12 is a 2013 Session Law directing the commissioner
of DLI to implement a two-year patient advocate program for employees with back injuries who are considering back fusion surgery. The purpose of the program
is to ensure that injured workers understand their treatment options and receive treatment for their work injuries according to accepted medical standards. The services
provided by the patient advocate will be paid for from the
special compensation fund. Effective Oct. 1, 2013.
• Reimbursement cost study required. Section 12 is
a 2013 Session Law directing the commissioner of DLI
to study the effectiveness and costs of potential reforms
and barriers within the workers’ compensation carrier and health care provider reimbursement system,
including, but not limited to, carrier administrative costs,
prompt payment, uniform claim components, and the
effect on provider reimbursements and injured worker
co-payments of implementing the subjects studied. The
commissioner must consult with interested stakeholders
including health care providers, workers’ compensation
Page 22
insurance carriers, and representatives of business and
labor to provide relevant data promptly to the department to complete the study. The commissioner must
report findings and recommendations to the Workers’
Compensation Advisory Council by Dec. 31, 2013.
(AF)
Gender-neutral marriage authorized
Chapter 74 (HF 1054*/SF 925) amends Minn. Stat. Ch.
517. It changes the legal definition of marriage from
“between a man and a woman” to “between two persons,” and removes a conforming requirement that a legal
marriage may only be between persons of the opposite
sex. It authorizes the marriage and divorce of two persons, regardless of gender, and recognizes for purposes of
Minnesota law marriages performed in other jurisdictions,
regardless of the gender of the persons in the marriage. It
also contains provisions which permit churches and religious associations to choose who can be married in their
faith and to whom they will provide services, without
the risk of liability. Finally, it provides that, wherever the
term “marriage,” “marital,” “marry,” or “married” is used
in Minnesota Statute in reference to the rights, obligations, or privileges of a couple under law, the term includes
civil marriage, or individuals subject to civil marriage, as
established by this chapter. A term subject to this definition must also be interpreted in reference to the context
in which it appears, but may not be interpreted to limit or
exclude any individual who has entered into a valid civil
marriage contract under this chapter. (Note:This section is
summarized in the 2013 Law Summaries to alert cities that
the new law requires employers to treat married couples the same,
regardless of the gender of the persons in the marriage, for purposes
of providing employee benefits.) Effective Aug. 1, 2013. (AF)
State labor contracts ratified
Chapter 77 (HF 1069*/SF 1185) is a 2013 Session Law
ratifying collective bargaining agreements between the
State of Minnesota and employees belonging to collective
bargaining units. The agreements were approved by the
Legislative Coordinating Commission Subcommittee on
Employee Relations on March 11, 2013.
• Collective bargaining agreements ratified. Section
1 provides that the agreements reached between the following labor groups and the State of Minnesota are ratified:
• American Federation of State, County and Municipal
Employees
• Inter Faculty Organization
• Minnesota Nurses Association
• Office of Higher Education (unrepresented employees
of the Office of Higher Education)
• Minnesota Government Engineering Council
• Minnesota State University Association of Administrative and Service Faculty
• Minnesota State College Faculty
• Minnesota State Colleges and Universities (MnSCU)
Administrators
• Minnesota Insurance Marketplace
• Minnesota Law Enforcement Association retroactive contract funding provided. Section 2 provides that if a collective bargaining agreement between
the commissioner of the Department of Management
and Budget (MMB) and the Minnesota Law Enforcement Association for the period from July 1, 2011, to
June 30, 2013, is not implemented before June 30, 2013,
the commissioner of MMB may allow the employing
agencies to carry forward unexpended and unencumbered non-grant operating balances from fiscal year 2013
to provide funding for any retroactive salary increase
included in the final collective bargaining agreement for
the period from July 1, 2011 to June 30, 2013.
Effective May 21, 2013. (AF)
Employee sick leave benefit use expanded
181.9413, which requires employers that have 21 or more
employees at a work location to allow employees to use
accrued personal sick leave to care for a sick child. This
chapter expands existing requirement so that an employee
can use up to 160 hours of accrued personal sick leave
per year to care for an adult child, spouse, sibling, parent,
grandparent, or stepparent. The chapter also provides that
by Aug. 1, 2014, the commissioner of Minnesota Management and Budget must analyze and report to the standing
committees of the House of Representatives and Senate with jurisdiction over labor and workplace issues on
the impact on the usage of sick leave by employees of
the executive branch of the state as a result of the expansion. The law does not prevent an employer from providing greater sick leave benefits than are provided for under
the law. It also does not require employers to increase the
amount of sick leave provided to employees, nor does it
interfere with existing employer policies related to maximum sick leave accruals. Effective Aug. 1, 2013, and applies to
sick leave used on or after that date. (AF)
UNEMPLOYMENT INSURANCE
Unemployment insurance provisions in the omnibus jobs and economic development bill
Chapter 85 (HF 729*/SF 1057) is the omnibus jobs, economic development, housing, commerce, and energy bill.
Article 4 of the bill contains unemployment insurance provisions, many of which are technical changes. The following is a summary of items that may be of interest to cities.
2013 Law Summaries
• Converting layoffs into Minnesota business program. Section 2 amends Minn. Stat. § 116L.17 to create
the Minnesota CLIMB program, which is designed to
assist dislocated workers in starting or growing a business. Section 9 amends Minn. Stat. § 268.133 to make
CLIMB participants eligible for benefits. Participants will
be considered to be in reemployment assistance training,
but certain earning and working hour limitations under
Minn. Stat. § 268.085 may be waived for up to 500 program applicants. Effective July 1, 2013.
• Shared work agreement modifications. Sections
10-15 amend the shared work agreement statute, Minn.
Stat. § 268.136. The agreements will now be referred
to as shared work plans. The amendments add a notice
requirement to employees, clarify the commissioner
approval process, and allow for the modification of existing shared work plans subject to approval by the commissioner. Effective July 1, 2013.
• Additional benefits for locked-out employees. Sections 5-8 amend Minn. Stat. § 268.125 to create additional benefits for employees who stop work as a result
of a lock-out. The additional benefits are not available
for professional athletes locked out by a professional
sports team. Effective May 25, 2013.
• Employer tax reduction. Section 18 establishes a
temporary reduction in the unemployment insurance
employer tax, based upon the balance of the Minnesota Unemployment Trust Fund. (Only cities that have
elected to be taxpaying employers pay the unemployment insurance employer tax.) If on Sept. 30, 2013, the
fund balance is $800 million, the base tax rate for calendar year 2014 is 0.1 percent and there will be no additional assessment assigned. If on Sept. 30, 2014, the fund
balance is more than $900 million, the base tax rate for
calendar year 2015 will be 0.1 percent and there will be
no additional assessment assigned. This section expires on
Dec. 31, 2015. Effective July 1, 2013.
(PH)
ENVIRONMENT
Technical and consensus drainage law changes made
Chapter 4 (*HF66/SF113) includes changes recommended by the Drainage Work Group to the state’s drainage law. The Drainage Work Group is a group of drainage
stakeholders facilitated by the Board of Water and Soil
Resources (BWSR). The changes primarily update definitions, terminology, and procedures to current drainage management practices, including watershed districts
as being eligible drainage authorities, and streamlining
record-keeping and record replacement procedures for
county and joint-powers drainage authorities. Effective Aug.
1, 2013. (CJ)
Page 23
Metro water group sunset extended
Chapter 19 (*HF834/SF515) allows the Metropolitan Council to continue to operate the Metropolitan
Area Water Supply Advisory Committee through 2016,
as described in MN Stat § 473.1565, subdivision 2. This
applies only to the seven-county metro area. Effective retroactively from Dec. 31, 2012. (CJ)
180-day process for adopting organized collection
replaced with 60-day negotiation period
Chapter 45 (*SF510/HF128) eliminates the cumbersome
180-day process for adopting organized collection, and
replaces it with a 60-day negotiation period between a city
and its licensed collectors. The new process is designed to
give the current collectors the first chance to develop a
proposal for organized collection. If the 60-day negotiation
period ends without an agreement, a city can continue the
process by adopting a resolution to form a committee to
study organized collection and make recommendations.
Cities that have already organized collection are exempt
from the new law. Their current organized collection
methods continue to govern.
The steps for adopting organized solid waste collection under the new law are as follows:
• Notice to public and licensed collectors. Before
forming a committee to study organized collection, a
city with more than one licensed collector must notify
the public and its licensed collectors that it is considering organizing collection. The new law does not specify
how notice should be provided. The League recommends providing both published notice and individual
mailed notice to each licensed collector.
• Sixty-day negotiation period. After a city provides
notice of its intent to consider organizing collection, it
must provide a 60-day negotiation period that is exclusive
between the city and its licensed collectors. A city is not
required to reach an agreement during this period.
• The purpose of the negotiation period is to allow
licensed collectors to develop a proposal in which they,
as members of an organization of collectors, collect
solid waste from designated sections of the city. The
proposal must addresses specific issues set out in the
new law.
• If an agreement is reached with a city’s licensed collectors, it must be effective for three to seven years.
The city must provide public notice and hold at least
one public hearing before implementing the agreement. Organized collection cannot begin until at least
six months after the effective date of the city’s decision
to implement organized collection.
• Committee formation. If a city does not reach
an agreement with its licensed collectors during the
negotiation period, it can form—by resolution—an
“organized collection options committee” to study
Page 24
various methods of organizing collection and issue
a report. The city council appoints the committee
members, and the committee is subject to the Open
Meeting Law. The committee must examine different
methods of organizing collection (two of which are
specified in the law); establish a list of criteria for
evaluating the different methods of collection; collect
information from other cities and towns with organized
collection; and seek input at a minimum from the city
council, the local official responsible for solid waste
issues, licensed solid waste and recycling collectors, and
city residents.
• Public notice, public hearing, and implementation. A city must provide public notice and hold at
least one public hearing before deciding to implement
organized collection. Organized collection cannot begin
until at least six months after the effective date of the
city’s decision to implement organized collection.
Effective May 8, 2013. (CJ)
Environment trust fund projects
Chapter 52 (*HF1113/SF987) is the annual package
of projects funded from the environment and natural
resources trust fund, which is funded through lottery proceeds. The Legislative Citizens Commission on Minnesota
Resources (LCCMR) develops the recommendation for a
wide range of research and projects related to the environment. Several of this year’s approved projects are of interest
to cities.
• County geologic atlases. Subd. 3(b) provides $1.2
million to the University of Minnesota to continue to
accelerate completion of county geologic atlases.
• Specified county geologic atlases. Subd. 3(c) provides $1.2 million to the University of Minnesota for
additional work on the county geologic atlases of Houston and Winona Counties.
• Wetland inventory. Subd. 3(d) provides $1 million to
the Department of Natural Resources for continued
work on a statewide wetland inventory.
• Hydrogen generation from wastewater. Subd. 5(g)
provides $240,000 to the University of Minnesota to
research uses of selected bacteria and polymer membranes being used to generate hydrogen from wastewater.
• Emerald ash borer. Subd. 6(c) provides $600,000 to
the University of Minnesota and the Department of
Agriculture to evaluate and implement detection options
for emerald ash borer.
Effective July 1, 2013. (CJ)
Omnibus lands bill
Chapter 73 (*HF740/SF886) is the omnibus lands bill.
Legislative approval is needed to authorize the sale of taxforfeited parcels bordering public waters. The bill also contains some policy changes related to the acquisition and
transfer of lands for the purposes of serving as school forests in sections 1-5. Sections 1-5 are effective May 21, 2013.
The remainder of the sections are effective Aug. 1, 2013. (CJ)
Wastewater and stormwater funding program
restrictions reduced
Chapter 105 (*HF819/SF613) changes language related
to wastewater and stormwater grant and loan programs
administered through the Public facilities Authority (PFA).
• Section 1 expands eligibility of the Total Maximum
Daily Load grant program to include phosphorus and
nitrogen reduction projects meeting certain criteria.
• Sections 2 and 3 fix other criteria in the TMDL grant
program to allow that broadened eligibility.
• Section 4 increases maximum grant amount for technical
assistance grants under the small community wastewater
treatment program from $10,000 to $20,000 plus $1,000
(up from $500) for each household up to a maximum of
$60,000 (up from $40,000).
• Section 5 allows land-based disposal systems to be
funded through the small community wastewater treatment program and matches grant eligibility criteria with
the need criteria of the Wastewater Infrastructure Fund
grant program.
• Section 6 sets a new maximum on project funding at $2
million (up from $500,000) under the small community
wastewater treatment program.
• Section 7 allows loans under the small community
wastewater treatment program to be amortized over 20
years.
• Section 8 allows loans or portions of loans under
the wastewater infrastructure funding program to be
changed to grants if the community is deemed to have
been eligible for a grant under normal eligibility criteria
at the time the loan was made.
• Section 9 and 10 clean up existing statute by changing the name of the TMDL grants program to the point
source implementation grants program, removing references to deleted programs, and repealing the phosphorus
reduction grants program and previous language limiting
grant amounts.
Effective Aug. 1, 2013. (CJ)
Omnibus environmental budget bill
Chapter 114 (*HF 976/ SF 1170) is the budget bill for
state environment, natural resources, and agriculture. It
allocates approximately $312 million of general fund revenue, plus funds from dedicated fees and special revenue
accounts.
Article 2: Agricultural policy changes
Article 2 contains policy provisions related to agriculture.
• Ag water quality certification. Sections 1, 2, and
5-16 are all related to the new agricultural water cer-
2013 Law Summaries
tification program, a joint state and federal effort to
improve agricultural land owner participation in existing
voluntary conservation programs.
• Noxious weeds. Sections 17-27 are all related to noxious weed statutes. The changes made are mostly minor
or technical, except that section 21 contains a number of
definitions of new classes of noxious weeds.
• Pesticides. Section 30 prohibits filling pesticide application equipment with water directly from public waters.
It is already prohibited from public water supplies. Language is also added to prohibit cross connections to supplies used for filling pesticide application equipment.
None of this applies to aquatic pesticide application.
Article 3: Environmental agency budgets
Article 3 includes funding for the Pollution Control
Agency (MPCA), Department of Natural Resources
(DNR), and Board of Water and Soil Resources (BWSR),
with funds also going to the Met Council, the Zoo, and
the Minnesota Conservation Corps.
• Pollution Control Agency. Section 3 appropriates
funds to the PCA. It includes specific money related to
SSTS (septic system) programs, air quality monitoring
and emission reduction efforts to help the state avoid
non-attainment with federal limits for ozone and fine
particulate matter, SCORE recycling funds, funding for
the Environmental Quality Board (EQB), and funding
for the technical team formed as part of the solution to
new regulation of silica sand mining.
• Department of Natural Resources. Section 4 appropriates funds to the DNR. It includes $7.6 million to
the ecological and water resources division for increased
work on groundwater quality, quantity, and sustainability. This work was initially funded by increases to water
appropriation fees, significantly weighted on city utility
customers. It was instead funded out of the general fund.
There is also significant funding for continues work to
deal with aquatic invasive species.
• Board of Water and Soil resources. Section 5 appropriates funds to BWSR. The funds are mostly passed
through as cost-share grants to local units of government
for work related to water quality and erosion control.
• Met Council. Section 6 appropriates $17 million to the
Metropolitan Council for metro parks.
Article 4: Environment policy changes
Article 4 contains numerous changes to state laws related
to the environment and natural resources. Effective July 1,
2013, unless otherwise noted.
• Motorized mobility devices. Section 2 addresses
ADA requirements by allowing the DNR commissioner
to establish by written order state policies for the use and
Page 25
operation of motorized mobility devices on state administered lands and facilities.
• Utility crossing fee waiver. Section 3 waives permit
fees for utility crossing over state land or water if the
crossing is within an existing road right-of-way.
• ATV operation. Sections 10 and 11 deal with operation of ATVs in ditches and rights-of-way. The same
changes were made in the game and fish omnibus policy
bill (Chapter 121). Those changes are summarized in the
Public Safety section.
• Silica sand mining and processing. Numerous sections of this article pertain to regulations of silica sand
operations in southeast Minnesota.
• Section 66. Within the boundaries of the DNR
Paleozoic Plateau Ecological Section, no excavation or
mining of silica sand, including but not limited to digging, excavating, mining, drilling, blasting, tunneling,
dredging, stripping, or shafting, may occur within one
mile of a designated trout stream unless a silica sand
mining trout stream setback permit has been issue by
DNR. Effective May 24, 2013, applies to new silica sand
mining projects and projects for which environmental review
documents have been noticed for public comments after April
30, 2013.
• Section 91, subd. 1-2. The EQB, in consultation
with LGUs, is instructed to develop model standards
and criteria for mining, processing, and transporting
silica sand. The standards may be used by LGUs as they
develop their local ordinances. Effective May 24, 2013.
• Section 91, subd. 3-4. The EQB is instructed to
assemble a silica sand technical assistance team to provide LGUs, at their request, with assistance with ordinance development, zoning, environmental review
and permitting, monitoring, or other issues relating
to silica sand. When an LGU requests recommendations from the technical assistance team the LGU must
consider the findings or recommendations of the team
in its approval or denial of a silica sand project. If the
LGU does not agree with the team’s findings and recommendations, the detailed reasons for the disagreement must be part of the LGU record of decision.
• Section 92. Until two years after July 1, 2013, an
Environmental Assessment Worksheet (EAW) must
be prepared for any silica sand project that meets or
exceeds any of a very specific list of thresholds, which
are laid out, below. Effective July 1, 2013, and no permit for a silica sand project subject to this section may be
approved after that date unless the required environmental
review has been completed.
·· Excavates 20 or more acres of land to a mean depth
of 10 feet or more during its existence. The local
government is the responsible governmental unit; or
·· Is designed to store or is capable of storing more
Page 26
than 7,500 tons of silica sand or has an annual
throughput of more than 200,000 tons of silica sand
and is not required to receive a permit from the
Pollution Control Agency. The Pollution Control
Agency is the responsible governmental unit.
·· In addition to the contents required under statute
and rule, an environmental assessment worksheet
completed according to this section must include
several specific items:
›› A hydrogeologic investigation assessing potential
groundwater and surface water effects and geologic conditions that could create an increased risk
of potentially significant effects on groundwater
and surface water;
›› For a project with the potential to require a
groundwater appropriation permit from the commissioner of natural resources, an assessment of the
water resources available for appropriation;
›› An air quality impact assessment that includes an
assessment of the potential effects from airborne
particulates and dust;
›› A traffic impact analysis, including documentation
of existing transportation systems, analysis of the
potential effects of the project on transportation,
and mitigation measures to eliminate or minimize
adverse impacts;
›› An assessment of compatibility of the project with
other existing uses; and
›› Mitigation measures that could eliminate or minimize any adverse environmental effects for the
project.
• Section 93. The EQB is instructed to create and
maintain a library of LGU ordinances and LGU permits that have been approved for regulation of silica
sand projects.
• Section 105. Authorizes the expedited adoption of
rules by a number of state agencies related to aspects
of silica sand mining, storage, and processing. Effective
May 24, 2013.
• Section 106. An LGU may extend an interim ordinance or renew an expired ordinance prohibiting new
or expanded silica sand projects for one year. Effective
retroactively from March 1, 2013.
• Groundwater policies. Numerous sections of this article amend existing statutes related to groundwater use
and regulations.
• Legislative approval. Sections 67 and 68 repeal
existing legislative approval requirements for large
water diversions or appropriations.
• Preliminary well approval. Section 71 instructs the
DNR to evaluate the likelihood that a water appropriation permit applicant will meet sustainability
requirements prior to construction and to give written preliminary approval if the project is likely to meet
those requirements. It is linked closely to section 74,
which adds new requirements to the information that
must be provided to the DNR before a well can be
constructed under MN Stat § 103I.205, subdivision 1,
paragraph (f), including location, aquifer serving as the
water source, maximum daily/annual/seasonal pumping rates and volumes, and any other information
needed by the agency to make its preliminary determination of sustainability.
• Permits in groundwater management areas. Section 72 allows the DNR to require wells drawing less
than 10,000 gallons per day or 1 million gallons per
year to need a water appropriation permit if an area
is designated as a groundwater management area. The
DNR can choose to waive flow metering and reporting requirements under MN Stat §103G.281 and cannot collect a permit application fee for these smaller
permits.
• DNR Report. Section 102 requires the DNR to
report to the Legislature by Jan. 15, 2014, with any
recommendations or draft legislation they identify as
needed to carry out department responsibilities related
to groundwater sustainability.
• Wastewater lab certification. Section 76 includes
new language related to the criteria for certifying labs
that provide data to the state regarding whether NPDES
and SDS permit holder are meeting permit requirements. It exempts for-profit, drinking water, and remediation analysis labs.
• Architectural paint. Sections 78-79 direct producers
of architectural paint, individually or through a stewardship organization, to implement and finance a statewide product stewardship program that manages the
architectural paint by reducing the paint’s waste generation, promoting its reuse and recycling, and providing
for negotiation and execution of agreements to collect,
transport, and process the architectural paint for end-oflife recycling and reuse. LGUs are not mandated to participate in this program, but can choose to enter into a
contract with a producer or stewardship organization.
• Corrective actions under petrofund. Sections 83-85
and 87 are language that was worked out between cities, state agencies, and petroleum marketers on how
to tighten up state ability to assure that environmental
covenants travel with real property titles after corrective
actions under the state petrofund program.
• Hennepin County SWCD discontinued. Section 96
ends a longstanding battle by discontinuing the Hennepin County Soil and Water District and transferring its
responsibilities to the county. The county has been functioning in that capacity for a number of years already
and had ceased funding the SWCD.
• Priority funding for wastewater re-use. Section 100
requires the MPCA to award bonus priority points to a
project will result in an agency-approved beneficial use
2013 Law Summaries
of treated wastewater that results in reducing or replacing the use of groundwater, surface water, or potable
water, provided that the project component resulting in
the beneficial use of wastewater accounts for at least 20
percent of the total eligible cost of the project. Projects
receiving points for land discharge beneficial use will not
receive the additional 30 points. Effective Aug. 1, 2013.
Article 5: Sanitary district formation
This article transfers the process for establishing a sanitary
district to address water quality and public health concerns
from the MPCA to the Office of Administrative Hearings
(OAH). The process often involves annexation law disputes,
with which the MPCA has no comfort or experience. The
article also updates existing law to use current procedures,
statutory references, and legal definitions.
Effective Aug. 1, 2013, except for sections 5 and 12, which transfer authority to OAH and require petitioners to pay the costs for
the preparation and submission of petitions, that are effective May
24, 2013. (CJ)
Legacy spending bill gets controversial, earns first
veto of session
Chapter 137 (*HF 1183/ SF 1051) allocates the money
from constitutionally dedicated sales tax funds targeted to
environmental and cultural programs. Gov. Dayton eventually line-item vetoed two appropriations from the outdoor heritage fund that went against the recommendations
of the Lessard-Sams Outdoor Heritage Council. The two
vetoed line items were $6.3 million to metropolitan parks
in Subd. 5(i) and $3 million for aquatic invasive species
control in Subd. 5(j).
Article 1: Outdoor Heritage Fund
Article 1 appropriates $100 million in the next fiscal
year from the Outdoor Heritage Fund. The funds in this
account go to improve fish and wildlife habitat and to
improve access to hunting and fishing. Most of the funds
are spent in rural areas, but several allocations could allow
land within cities to be eligible for either purchase in title
or for purchase of permanent conservation easements.
Those provisions include funding for aquatic management
land purchases (Subd. 5(a)), for conservation projects, easements, and land purchases in Dakota County (Subd. 5(b)),
for conservation projects, easements, and land purchases
related to the Minnesota, Mississippi, and St. Croix Rivers in the metropolitan area (Subd. 5(d)), and for matching grants to local partner conservation organizations for
projects, easements, and land purchases that will be open to
public hunting and fishing (Subd. 5(j)).
Article 2: Clean Water Fund
Article 2 appropriates approximately $97.5 million for each
fiscal year of the biennium. The clean water fund provides
resources for the state to make progress on meeting federal
Page 27
Clean Water Act requirements for identifying and cleaning
up impaired lakes, rivers, and streams. It also funds other
work to restore, enhance, and protect surface water quality
and drinking water sources. It also contains environmental
policy provisions.
• Section 3 is funding for the Department of Agriculture and includes $2.5 million per year for research into
nitrate contamination of groundwater and $1.5 million
per year to fund the agricultural water quality certification program, a state/federal partnership to improve
landowner participation in existing voluntary conservation programs.
• Section 4 is funding to the Public Facilities Authority for
wastewater and stormwater infrastructure projects that
address water quality impairments and under-sewered
communities. $9 million each year goes to the Point
Source Implementation grants program and $2 million
each year goes to the small community wastewater treatment program.
• Section 5 funds impaired water programs at the MPCA.
It includes funds to continue to assess water quality
on a watershed basis, develop TMDL reports on water
impairments identified, complete implementation plans
to address those impairments, and to monitor progress.
It also includes $275,000 each year for research into
stormwater best management practices, $900,000 each
year for wastewater and stormwater NPDES permit
TMDL implementation efforts, and $375,000 per year to
support research into wastewater treatment technology
and for an ongoing University of Minnesota-led technical group to provide technical support to wastewater
system design teams and to promote new technologies
to address existing and emerging wastewater treatment
challenges.
• Section 6 goes to the Department of Natural Resources.
It includes $2 million per year for enhanced monitoring
to determine the relationship between groundwater levels and stream flow, $615,000 per year to enhance work
on county geologic atlases to provide data on groundwater supply and recharge, $3 million in the first year
of the biennium to develop and designate groundwater
management areas, and $500,000 per year in grants funds
available to local governments that adopt shoreland land
use protection standards that meet a list of criteria well
beyond state shoreland rule requirements.
• Section 7 provides funds to the Board of Water and Soil
Resources. Most of their programs provide cost-share
grants to local government partners.
• Local government units organized for the management of water get access to $5 million in the first year
and $7 million in the second year in grants for significantly reducing water pollution in targeted watersheds.
• $9.7 million in the first year and $10.7 million in the
second goes to a broad list of efforts that protect and
restore lakes, rivers, streams, and drinking water in
Page 28
ways consistent with approved TMDL reports, including by keeping water on the land and through septic
system programs.
• $3.5 million in the first year and $4.5 million in the
second go for targeted local resource protection and
enhancement grants for projects and practices that
supplement or exceed current state standards for protection, enhancement, and restoration of water quality
in lakes, rivers, and streams or that protect groundwater from degradation, including compliance.
• $1.3 million each year is available for permanent
conservation easement purchase in wellhead
protection areas.
• $1.5 million each year goes for grants to local
government related to reducing stormwater pollution
impacts and on proven methods of retaining water for
infiltration.
• Section 8 funds programs at the Department of Health
related to drinking water and groundwater protection.
It includes funds to look at contaminants being found
in drinking water that have no current health risk values determined, looking at the frequency of private well
contamination, and developing a virus monitoring plan
for groundwater supplies.
• Section 9 provides funds to the Metropolitan Council.
$500,000 each year goes to support inflow and infiltration mitigation in the metro area, $537,000 is provided
to research groundwater and surface water connections
in White Bear Lake, and $1 million each year goes for
continues groundwater planning efforts.
• Section 10 provides an additional $615,000 each year to
the University of Minnesota to speed the completion of
county geologic atlases.
• Section 17 bans the sale and use of coal-tar based asphalt
sealants statewide as of Jan. 1, 2014.
• Sections 18-22 relate to Mississippi River Critical Corridor land use rule development. The provisions included
reauthorization for the DNR to develop rules, but
change the statutes that define what those rules must
include to better protect existing uses and to remove
specific requirements of definitions related to bluffs,
slopes, and mapping.
Article 3: Parks and Trails Fund
Article 3 allocates $42.5 million each year to park and
trail projects in the state. Despite early contention over the
split of metropolitan and rural funding, the split will keep
the balance of 40 percent for metropolitan area parks and
trails, 40 percent for state parks and trails, and 20 percent
for non-metro areas. Projects are specified for the metro
and non-metro park and trail funds. A Greater Minnesota Regional Parks and Trails Commission is established
to determine which parks should be classified as being of
state or regional significance outside the metropolitan area
and to make recommendations to the Legislature on future
expenditures of funds to non-metro regional park projects,
which was authorized to be formed as of May 24, 2013.
Article 4: Arts and Cultural Heritage Fund
Article 4 allocates approximately $58 million each year to
enhance access to the arts and cultural heritage. The funds
are divided between a wide range of interests including
public radio and television, zoos, cultural groups, the state
historical society, and the state arts board. It includes $3
million each year in support of regional library systems. It
also included a policy provision that allows Minnesota-produced beer and wine to be served in the Rathkeller Cafe in
the State Capitol, pending approval of the City of St. Paul.
Article 5: General provisions
Article 5 contains a policy requirement that no solar photovoltaic module may be funded in whole or in part by
legacy funds unless they are made in Minnesota.
All sections mentioned are effective July 1, 2013, unless otherwise
noted. (CJ)
GENERAL GOVERNMENT
Alternative publication of bids for projects funded
by special assessment
Chapter 46 (HF 1196/SF 843*) adds a definition of
“recognized industry trade journal” to Minn. Stat. §
331A.01, so that websites and other digital publications
qualify for alternative publication purposes for certain
projects. The bill amends Minn. Stat. § 429.041, subd. 1 to
allow cities to publish advertisements for bids for projects
funded by special assessment in recognized industry trade
journals. Because of the shift from printed to electronic
media, there are no longer publications that met the old
definition of trade journal, which forced cities to publish
advertisements in a paper published in a city of the first
class in addition to the web-based publication. The new
definition will eliminate the duplicative publication
requirement. Effective Aug. 1, 2013. (PH)
Met council cost allocation deferred payments permitted
Chapter 101 (*HF 738/SF 551) makes minor and technical changes to the statutes related to the Met Council. Section 3 allows a city to request that a cost allocated to them
by the Met Council be deferred, in part or in total, to be
paid on a schedule and with interest added as agreed to by
the council. Effective May 25, 2013. (CJ)
Omnibus state government finance and veterans
affairs bill
Chapter 142 (HF 1184/SF 1589*) is the omnibus state
government finance and veterans affairs bill. Article 1
2013 Law Summaries
appropriates funding to state agencies, departments, councils and commissions. Articles 2-5 make several policy
changes, some of which may be of interest to cities.
Article 2: Minnesota sunset act
• Sections 2-10 repeal the Minnesota Sunset Act and make
conforming changes. Section 1 amends Minn. Stat. §
3.885 permitting the Legislative Commission on Planning and Fiscal Policy to review executive branch advisory groups on criteria similar to those applied by the
Sunset Commission. Effective May 24, 2013.
Article 3: State government operations
• Office of the Secretary of State to accept funds.
Section 8 is new language, Minn. Stat. § 5.38, authorizing the Secretary of State (SOS) to solicit and accept
funds from local governments to be used for technology projects and to enhance the state’s election system.
The SOS and the local governmental unit shall agree to
the amount of consideration to be paid under the agreement. This section also allows the SOS to accept federal
funds for election purposes and specifies that a certain state statute that governs the disbursement of federal funds will or will not apply, depending on whether
the terms of the grant require the state to maintain its
efforts. Funds accepted under this section are deposited into a special revenue fund and are appropriated to
the SOS. The SOS is required to report by Jan. 15 each
year to the chair and ranking minority members of the
finance committees of the house and senate. The report
must include the total amounts received in the preceding
year, the source of those funds, and the uses of the funds.
Section 9 is new language, Minn. Stat. § 5B.1, authorizing the SOS to solicit and accept funds from individuals
and apply for grants from charitable organizations to be
used for the confidentiality program, Safe at Home, that
provides data protection for victims of violence.
• City and Town Accounting System (CTAS) software. Section 10 adds new language, Minn. Stat. §
6.475, permitting the state auditor to charge a onetime
user fee to cities, towns and other government entities
for the development, maintenance, and distribution of
the small city and town accounting system software. The
State Auditor shall consult with the Minnesota Association of Townships, the League of Minnesota Cities, and
the Minnesota Association of Small Cities to set the
amount of the fee. If the CTAS software ceases to be
offered by the State Auditor, any amount remaining in
the CTAS account shall be equitably refunded to users
and the account shall be closed.
• State auditor enterprise fund. Section 13 creates
Minn. Stat. § 6.581, the state auditor enterprise fund in
the state treasury. The law requires that amounts received
for the costs of the auditor’s examinations to be deposited into the fund.
Page 29
• Business as vendor. Section 14 amends Minn. Stat. §
13.591, subd. 3 changing when data submitted by a business to a government entity in response to a request for
bids and proposals cease to be private or nonpublic. Under
current law, the data is private or nonpublic until the bids
or responses are opened; this section makes the data public at the time and date specified in the solicitation that
bids or proposals are due. The law also changes what data
remain private or nonpublic when all responses for bids
or proposals are rejected prior to completion of the selection process. Under current law, all data except that made
public at the bid or response opening remain private or
nonpublic; as changed by this section, all data, other than
the name of the bidder and the dollar amount specified in
the bid or response, remain private and nonpublic.
• E-Government Advisory Council. Section 25 establishes the E-Government Advisory Council to improve
online government information services to citizens and
businesses. The membership will include appointees
knowledgeable in public access to government data. The
council will convene its first meeting by Nov. 1, 2013, and
sunset on the first Monday in January 2016, after making
recommendations to the Office of Enterprise Technology.
Effective May 24, 2013
Article 4: Military and veterans provisions
• State and municipal officers and employees
authorized leave. Section 1 amends Minn. Stat. §
192.26, subd. 1 permitting employees to choose when
during a calendar year to take their paid 15-day military
leave and allows employees to take it all at one time or
to divide it at their discretion. Authorized leave may be
taken without loss of pay, seniority status, efficiency rating, vacation, sick leave, or other benefits when engaged
in training or active service.
• Section 9 amends Minn. Stat. § 364.03, subd. 3 by
broadening the means for showing competent evidence
of rehabilitation to include the person’s having earned an
honorable discharge from the military subsequent to the
person’s adjudication for the crime.
• Section 10 creates new language, amends Minn. Stat. §
471.3457 authorizing cities and towns to give contract
preferences to veteran-owned small business. The language is permissive.
Article 5: Revenue department
• Automobile theft prevention surcharge. Section 10
recodifies existing language into Minn. Stat. § 12971.1]
to move the automobile theft prevention surcharge
account, collection and administration to the Department of Revenue from the Department of Public Safety.
Effective for premiums collected after June 30, 2013.
(AL)
Page 30
HEALTH
Updating terminology related to persons with disabilities
Chapter 62 (HF 760*/SF 655) replaces outdated terminology related to persons with disabilities in various Minnesota Statutes and Rules, including some that regulate
municipalities. However, the bill makes no policy or substantive changes to statutes or rules. Effective Aug. 1, 2013.
(PH)
Minnesota Insurance Marketplace Act (MNsure)
Chapter 9 (HF 5*/SF 1) is the Minnesota Insurance Marketplace legislation which was enacted in response to the
federal Affordable Care Act (ACA), Public Law 111-148.
Under federal health care reform, states have the option
of creating their own health insurance exchange as long as
it meets certain federal requirements or optionally, a state
can use a health insurance exchange supported in whole or
in part by the federal Department of Health and Human
Services. With the passage of this bill, Minnesota will now
have a state system called MNsure, for individuals to shop
for and purchase health insurance coverage to comply with
the federal health insurance mandate. The new law is codified in a new statute, Minn. Stat. § 62V.
Chapter 9 primarily establishes the infrastructure for
the Minnesota Insurance Marketplace. The legislation creates a board of directors serving four-year staggered terms
consisting of seven members in the executive branch of
state government, one of whom is the state Commissioner of Human Services, to oversee the health insurance
exchange. The new law also establishes term limits for the
board members and clarifies that the board will be subject to the Open Meeting Law and other state laws dealing
with review and audit by the legislative auditor, conflicts of
interest and receipt of gifts.
The legislation does not prohibit “qualified
individuals” or “qualified employers” from selecting a
health plan offered outside of the Marketplace. The ACA
defines a “qualified individual” as an individual who seeks
to enroll in a qualified health plan through an exchange,
resides in the State and is not incarcerated. A “qualified
employer” is defined under Section 1312 of the ACA as
generally meaning a “small employer” who elects to make
all full time employees eligible for one or more qualified
health plans available in the small group marketplace
offered through the health insurance exchange. The
Affordable Care Act defines a “small employer,” for the
purposes of health coverage, as an employer with at least
one but not more than 100 employees but each State has
the option to limit small employers to having no more
than 50 employees until 2016. The Minnesota system
will initially apply to employers with no more than 50
employees. The Minnesota health insurance exchange
could be expanded to large employers in the future by
legislative action.
All employers will be required to provide a written
notice to each employee informing them of the existence
of the State’s exchange and how to get in contact with
the exchange, among other items. The notice was originally scheduled to be distributed by March 1, 2013, but the
requirement has been delayed until Oct. 1, 2013, which
will coordinate with the first open enrollment period for
the Exchange.
Effective March 21, 2013. Any actions taken by any state agencies in furtherance of the design, development, and implementation of the Minnesota Insurance Marketplace prior to the effective
date shall be considered actions taken by the Minnesota Insurance
Marketplace and shall be governed by the provisions of this chapter and state law. Health plan and dental plan coverage through
the Minnesota Insurance Marketplace is effective Jan. 1, 2014.
(Note: The MNsure exchange can be accessed at: http://
mn.gov/hix/. Further guidance on health care reform
is available on the League’s website at: www.lmc.org/
page/1/health-care-reform.jsp.)
(AF)
HOUSING
Concentration limits of community-based homes
(group homes)
Chapter 108 (HF 1233*/SF 1034), Article 7, section 53 of
the omnibus Health and Human Services Act establishes
a study by the commissioner of human services to develop
recommendations on concentration limits on home and
community-based settings, as consistent with Minnesota
Olmstead Plan. The report must be submitted to legislators
by Feb. 1, 2014. Effective July 1, 2013 (HC)
Contract for deed provision in the omnibus economic development budget bill
Chapter 85 (HF 729*/SF 1057), the omnibus jobs, economic development, housing, commerce, and energy bill,
contains new requirements for certain sales of residential
homes by contract for deed.
• Multiple seller definition. Section 7 contains definitions for the new notice requirements regarding sale of
properties through contract for deed by a multiple seller.
Minn. Stat. § 559.201 defines a multiple seller as a person
that has acted as a seller in four or more contracts for deed
during the 12 months preceding the purchase agreement
was executed or the date on which the purchaser executes
a contract for deed. Effective July 1, 2013. (HC)
• Notice disclosure requirement. Section 8, subd. 1 adds
a new notice disclosure requirement for multiple sellers
called “Important Information About Contracts for Deed.” 2013 Law Summaries
• Subd. 2 exempts the notice requirement if the purchaser is represented by a licensed attorney or real
estate broker, provided that the representation does not
create a dual agency.
• Subd. 3 specifies the verbatim language that must be
included in the notice. The notice includes information on who is responsible for paying property taxes,
homeowner’s insurance, and repairs and maintenance.
The notice must also include recommendations to
the purchaser to get advice from an attorney or the
Home Ownership Center, get an appraisal and home
inspection, buy title insurance, check with the city for
inspection records or unpaid utility bills, check with
the county or title company to see if another mortgage or lien is on the property, and to check with the
Department of Commerce to see if interest rate not
higher than the maximum rate allowed by law.
• Subd. 4 allows the prospective purchaser five business days after actually receiving the notice to cancel
a purchase agreement without penalty. The seller must
refund all payments made by the prospective purchaser
prior to cancellation.
• Subd 5 provides for a private right of action to be filed
by the purchaser against the multiple seller if the seller
fails to deliver the timely notice. The seller is liable to
the purchaser for damages, reasonable attorney fees
and court costs.
• Subd. 6 states that a violation of the notice provision
does not invalidate the contract for deed.
Section 8 is effective Aug. 1, 2013, and applies to transactions
in which the contract for deed and the purchase agreement for the
contract for deed, if any, were both executed on or after that date.
(HC)
Dual tracking in foreclosure prohibited
Chapter 115 (HF 1377/SF 1276*) makes changes to mortgage foreclosure laws. The following provisions may be of
interest to cities:
• Notice delivery. Section 2 requires that the foreclosure
notice be delivered up to the day of the foreclosure sale,
rather than the day of redemption; sending a notice at
least once every 60 days up to the date of the foreclosure
sale meets this requirement. Effective Aug. 1, 2013
• Dual tracking prohibition. Section 3, subd. 6 prohibits “dual tracking” in mortgage foreclosure proceedings.
Dual tracking involves continuing the foreclosure process
while a lender is considering a request from the borrower
for a mortgage loan modification. Effective Oct. 31, 2013.
(HC)
Housing funding and policy provisions in the
omnibus economic development budget bill
Section 4 of Chapter 85 (HF 729*/SF 1057), the omnibus jobs, economic development, housing, commerce, and
Page 31
energy bill, contains $101.4 million in appropriations to
the Minnesota Housing Finance Agency for FY 20142015. This funding includes:
• $28.4 million for the Economic Development and
Housing Challenge Program.
• $23.5 million for the Housing Trust Fund.
• $5.6 million for the rental assistance program for mentally ill individuals.
• $15.7 for family homeless prevention and assistant programs.
• $1.6 million for the home ownership assistance program.
• $8.4 for the affordable rental investment fund.
• $5.5 million for the rehabilitation of single-family
homes.
• $1.5 million for the home homeownership, education,
and training program.
• $750,000 for nonprofit capacity building grants.
• $890,000 in grants to three housing service programs.
• $6.3 million for rental rehabilitation.
Within these appropriations, the following provisions
impact cities:
• Housing and Job Growth Initiative. Subd. 2(b)
amends Minn. Stat. § 462A.33, the economic development and housing challenge program, to include a
one-time appropriation of $10 million targeted toward
communities and regions that have:
• Low housing vacancy rates; and
• cooperatively developed plan that identifies current
and future housing needs; and one or more of the following:
·· experienced job growth since 2005 and have at least
2,000 jobs within the commuter shed;
·· evidence of anticipated job expansion; or
·· significant portion of area employees who commute
more than 30 miles between their residence and
their employment.
• Flood damage. Subd. 13 transfers excess money from
the Challenge program’s appropriation in 2012 (estimated to be around $3 million) to the Housing Development Fund for the rehabilitation loan program. Until
Aug. 1, 2014, priority for the use of these funds shall be
given to assist eligible homeowners in the Duluth area
(DR-4069) that were damaged as a result of the flooding
that occurred June 14 to June 21, 2012.
• Federally assisted housing. Subd. 7(b) amends Minn.
Stat. § 462A.21, subd. 8b to require owners of federally
assisted rental property to enter into an agreement that
gives local units of government, housing and redevelopment authorizes, and nonprofit housing organizations
the right of first refusal if the rental property is offered
for sale.
Effective May 24, 2013 (HC)
Page 32
Housing Improvement Areas extension
Chapter 143 (HF 677*/SF 552) is the omnibus tax law. It
amends Minn. Stat. § 428A.21 to extend the authority for
cities to create new Housing Improvement Areas for 15
more years to June 30, 2028. Effective May 24, 2013 (HC)
Housing infrastructure bonds provisions in the
omnibus economic development budget bill
Chapter 85 (HF 729*/SF 1057), the omnibus jobs, economic development, housing, commerce, and energy
bill, contains a provision related to housing infrastructure
bonds. Article 5, section 42 contains a technical fix to the
definition of “housing infrastructure bonds” in Minn. Stat.
§ 462A.37, subd. 1 is a change recommended by bond
council for existing housing infrastructure bond allocations. Effective May 24, 2013 (HC)
Mortgage foreclosure consultant and originator
clarifications
Chapter 17 (HF 129*/ SF 294) amends Minn. Stat. §
325N.01 to clarify the definition of a foreclosure consultant and apply the regulations to mortgage originators who
are negotiating the terms of an existing residential mortgage. This law applies provisions to mortgage originators
that were originally only applied to foreclosure consultants.
The provisions relate to definitions, rescission of foreclosure consultant contracts, contracts, violations, waivers, and
remedies. Effective May 23, 2013. (HC)
Partial release of mortgage lien
507.092 to allow for the recording of an affidavit of survivorship to change the address where property tax statements are sent, and amends Minn. Stat. § 507.403 to allow
for the filing of a partial release of a mortgage lien. The law
also updates filing requirements for common interest community certificates of title. Effective Aug. 1, 2013. (PH)
Rental eviction appeal timeline and rent escrow
changes
Chapter 100 (HF 829*/SF 967) makes changes related to
landlord tenant law, specifically on the timelines for eviction appeals and hearings when rent is held in escrow.
• Penalty to landlord. Section 1 amends Minn. Stat. §
504B.151, subd. 1 to provide a penalty of $500 if a landlord subject to a foreclosure creates a lease longer than
allowed by statute.
• Sunset provisions. Section 2 and 3 remove sunset provisions for foreclosure proceedings. Section 6 repeals a
section of law that would have gone into effect Jan. 1,
2015. Therefore, there will be no change in the current
foreclosure proceeding process.
• Judgment Appeal. Section 4 amends Minn. Stat. §
504B.371, subd. 2 to change the time for appealing a
judgment in an eviction action from 10 to 15 days.
• Rent Escrow. Section 5 amends Minn. Stat. §
504B.385, subd. 5 allows a hearing to be scheduled in a
rent escrow case for violations in a residential building
even when the tenant files the required notice and no
rent is currently due to the landlord. This requirement
does not relieve the tenant of the obligation to deposit
rent that is due to the landlord after the filing of a hearing notice but before the hearing with a court administrator.
Effective Aug. 1, 2013. (HC)
LAND USE AND GROWTH MANAGEMENT
Land use provisions in the omnibus jobs bill
contains the following provisions related to land use:
• Calculation of park dedication fees modified.
Article 5, section 41 amends Minn. Stat. § 462.358, subd.
2b, to clarify how a municipality must calculate a park
dedication fee charged to developers in lieu of dedicating land for parks. Under current law, the fee must
be based on the fair market value of land, although fair
market value is not defined. The new law defines fair
market value as the value of the land as determined
by the municipality annually based on tax valuation or
other relevant data. The new law also creates a means
for resolving a dispute over the valuation. If a developer
objects, then the value shall be as negotiated by the parties or based on the market value as determined by the
municipality based on an independent appraisal of land
in a same or similar land use category. The existing dispute resolution provision in Minn. Stat. § 462.358, subd.
2c remains unchanged. Effective July 1, 2013.
• Minneapolis City & Park Board joint dedication
fee. Article 5, section 43 amends Laws 2008 chapter 366,
the session law relating to powers of the Minneapolis
Park and Recreation Board, to allow the Board and the
City of Minneapolis to jointly require land be dedicated to the public, or to impose a park dedication fee, in
conjunction with a construction permit for new housing. The law allows the cash fee to be set at a flat rate.
Effective the day after compliance by the governing body of both
entities with Minnesota Statutes, section 645.021, subdivisions
2 and 3, and applies to joint dedication fee ordinances adopted
before, on, or after that date, except that no dedication or fee can
be effective until after Dec. 31, 2013.
• St. Paul dedication fee. Article 5, section 44 authorizes the City of St. Paul to require dedication of park
land or to impose a park dedication fee in conjunction
with a construction permit for new housing and commercial and industrial development. The dedication or
fee must be imposed by ordinance and the ordinance
2013 Law Summaries
may exclude senior or affordable housing from the fee
or dedication. The cash fee may be set at a flat rate. The
law states that Minn. Stat. § 462.358, subd. 2b(b) and 2c
apply to the application and use of the dedication or fee.
Effective Jan. 1, 2014, and applies to ordinances adopted or
amended by the city before, on, or after that date.
(PH)
LIQUOR
Omnibus liquor bill
Chapter 42 (HF 746/SF 541*) is the omnibus liquor bill.
Following are provisions most relevant to cities:
• Brewer taproom license. Section 1 amends Minn.
Stat. § 340A.301, subd. 6b to allow cities with municipal liquor stores to issue brewer taproom licenses. This
allows the sale of malt liquor produced by the brewer for
consumption on the premises or adjacent to the brewery.
• Distillery samples. Section 2 amends Minn. Stat. §
340A.301, subd. 6c which deals with microdistilleries.
A microdistillery may now provide samples of distilled
spirits on its premises. The samples may not be more
than 15 milliliters per variety per person and no person
can sample more than 45 milliliters in one day. Effective
May 8, 2013.
• Small brewer; license to distribute. Section 3 adds
subdivision 6d to Minn. Stat. § 304A.301 regarding
small brewer licensing and distribution of malt liquor.
A brewer licensed under subd. 6, clauses (c), (i), or (j)
may be issued a licensed by a municipality for off-sale of
malt liquor packaged by the brewer. Previously, a brewer
could produce no more than 3,500 barrels to make offsale 64 ounce containers commonly known as “growlers”. This change increases that to 20,000 barrels. Section
4 makes conforming changes based on section 3. Effective
May 8, 2013.
• Interest in other business. Section 5 amends Minn.
Stat. § 340A.301, subd. 7 to decrease the amount of
product a brewer may make and self-distribute. Prior to
this change, the amount was set at 25,000 barrels and
now the cut-off is 20,000. Effective May 8, 2013.
• Malt liquor on-sale educator license and tastings. Section 6 amends Minn. Stat. § 340A.4042 by
adding a subdivision to include malt liquor educator
on-sale licenses to wine educator licenses. The annual
cost is $250 per license and will be issued by the commissioner of the Department of Public Safety. This will
allow malt liquor tastings and education to be conducted
the same as wine tastings. Section 7 amends Minn. Stat.
§ 340A.418 to add malt liquor to the statute regarding
wine tastings conducted by charitable, religious or other
nonprofit organizations. Effective July 1, 2013.
Page 33
• Twin Cities in Motion temporary on-sale liquor
license. Section 8 amends session law 1999, chapter 202,
section 13 to update the liquor license for the Twin Cities Marathon to reflect the change in name to “Twin
Cities in Motion.” Effective May 8, 2013.
• City of Winnebago craft beer festival sunset
extension. Section 9 amends a 2012 session law, chapter 235, section 8 to extend the sunset date of the city
council’s approval of the craft beer festival hosted by the
City of Winnebago to Dec. 31, 2013. Effective with local
council approval and compliance with Minn. Stat. § 645.021.
• Lowertown regional ballpark on-sale license. Section 10 amends Minn. Stat. § 340A.404 to allow for
intoxicating liquor to be sold at the St. Paul Saints ballpark. Effective with local council approval and compliance with
Minn. Stat. § 645.021.
• Sake off-sale. Section 11 amends Minn. Stat. §
340A.301 allowing the City of Minneapolis to issue an
off-sale license for the sale of sake produced packaged
on the licensed premises. Effective with local council approval
and compliance with Minn. Stat. § 645.021.
• Valley Fair on-sale license. Section 12 amends Minn.
Stat. § 340A.404 to allow the City of Shakopee to issue
an on-sale intoxicating liquor license to Valley Fair. Effective with local council approval and compliance with Minn.
Stat. § 645.021.
• Sixty percent requirement removed for Minneapolis and St. Paul. Sections 13 and 14 amend Minn.
Stat. § 340A.404 to remove the 60 percent requirement
for Minneapolis and St. Paul as found in Minn. Stat. §
340A.404, subd. 5b. Effective with local council approval and
compliance with Minn. Stat. § 645.021.
• Wheeler Field on-sale license. Section 15 amends
Minn. Stat. § 340A.404 to allow the City of Duluth to
issue an on-sale intoxicating liquor license to Wheeler
Field for sale of 3.2 malt liquor at the concession stand
and approved dining area of the premises. Effective with
local council approval and compliance with Minn. Stat. §
645.021.
(AL)
LOCAL LAWS
(Note: Local tax provisions contained in Chapter 143, the
omnibus tax bill, are summarized in the Taxes section.)
Officer Tom Decker Memorial Highway Designated
Chapter 12 (HF 146/SF 76*) adds a subdivision to Minn.
Stat. § 161.14. The new subdivision provides that Trunk
Highway 23 from the east border of the township of
Wakefield to the west border of the City of Richmond is
designated as “Officer Tom Decker Memorial Highway.” It
requires the commissioner of the Minnesota Department
Page 34
of Transportation to adopt a suitable design to mark this
highway and erect appropriate signs. Effective Aug. 1, 2013.
(AF)
Authority to negotiate certain agreements
expanded to Hennepin County
Chapter 41 (HF 1195*/SF 1111) amends a special law
(Laws 1988, chapter 471, section 1, subd. 1, as amended by
Laws 1994, chapter 450, section 1, and Laws 1996, chapter 276, section 1) that currently applies to Minneapolis
and the Minneapolis Public School District. Chapter 41
expands this law to include Hennepin County. It would
allow the county to negotiate agreements concerning hiring and terms and conditions of employment for skilled
trade and craft workers and apprentices with local labor
organizations representing the trades. Persons hired under
the agreements would then be exempt from the classified
service of Hennepin County. Effective Aug. 1, 2013. (AF)
Local power line planning requirements
Chapter 57 (*SF521/HF623) Section 2 of this act
addresses a local high-voltage power line siting controversy
in Plymouth. It requires a certificate of need determination
and adds some specific criteria that must be determined
before the siting process can continue. Effective the day following final enactment, and applies to route permits and certificate
of need applications pending on or after that date. (CJ)
Local law provisions in the omnibus economic
development budget bill
contains the following local law provisions:
• Agricultural processing facility, City of Morris.
Article 1, section 2, subd. 2(r) makes a one-time grant of
$750,000 to the City of Morris for loans or grants to an
agricultural processing facility to make energy efficient
improvements. The grant requires a match of $1.25 million from nonpublic sources. Effective July 1, 2013.
• Hockey Hall of Fame, City of Eveleth. Article 5,
section 24, makes permanent a temporary distribution
of the taconite tax to the City of Eveleth to support
the Hockey Hall of Fame, provided that it continues to
operate in the city. Eveleth must also secure donations
from other donors to receive the distribution. Effective
July 1, 2013.
• RiverCentre Arena, City of St. Paul. Article 5,
section 47 reduces the amount of the RiverCentre
loan repayment by $500,000 for fiscal years 2014 and
2015. The scheduled repayments for fiscal years 20162021 will not be paid to the state, but, rather, must
be used to make arena improvement mutually agreed
upon by the lessee and St. Paul’s lease representative.
• Whiskey Road improvements, City of Biwabik.
Article 5, section 48 states that money held by St. Louis
County for the Biwabik Whiskey Road improvement must
accrue interest at market rate and be used for improvements to the road near Biwabik. Effective July 1, 2013.
(PH)
Local provisions in omnibus transportation policy
act
Chapter 127 (HF 1416/SF 1270*) is the omnibus transportation policy act. Summarized below are provisions
pertaining to specific cities or regions. (Note: Other provisions in Chapter 127 are summarized in the Transportation
section of the 2013 Law Summaries.)
• Pedestrian skyway connection required for Central Station. Section 61 is a 2013 Session Law. It
requires the City of St. Paul to include construction or
establishment of access to a pedestrian skyway system as
part of the initial transit line construction of the Central Station on the Central Corridor light rail transit line.
The council and city must ensure that public access to
the pedestrian skyway system is provided by an elevator
located at the site of the station. Effective May 25, 2013.
• U.S. Highway 53 relocation project authorized.
Section 65 is a 2013 Session Law requiring that in
selecting the preferred alternative for the project involving the relocation of marked U.S. Highway 53 between
Eveleth and Virginia, the commissioner of the Minnesota Department of Transportation (MnDOT) must:
(1) prioritize as a District 1 project, the acceleration of
the scoping, relocation, design, and construction of this
highway; (2) consider the economic and social impacts
on the cities of Virginia, Eveleth, Gilbert, and Mountain Iron, and not select an alternative that will impose
undue negative impact on the economies of these cities;
and (3) refrain from closing the existing U.S. Highway
53 corridor until construction of the rerouted highway
is complete and the highway is open to vehicle traffic.
• Legislative Route 235 in Otter Tail County
removed. Section 66 amends Minn. Stat. repeals Minn.
Stat. § 161.115, subd. 166 one day after the commissioner of MnDOT receives a copy of the agreement
between the commissioner and the governing body of
Otter Tail County to transfer jurisdiction of Legislative
Route No. 235 and notifies the revisor of statutes. Effective one day after the commissioner of MnDOT receives a copy
of the agreement between the commissioner and the governing
body of Otter Tail County.
• Legislative Route 256 in Blue Earth County
removed. Section 67 repeals Minn. Stat. § 161.115, subdivision 187, is repealed effective the day after the commissioner of MnDOT receives a copy of the agreement
between the commissioner and the governing body of
Blue Earth County to transfer jurisdiction of Legislative
2013 Law Summaries
Route No. 256 and notifies the revisor of statutes. Effective one day after the commissioner of MnDOT receives a copy
of the agreement between the commissioner and the governing
body of Blue Earth County.
• Red Wing Shoes sign required. Section 68 is a
2013 Session Law. It provides that the commissioner of
MnDOT, after being assured of adequate funding from
nonstate sources, must erect a specific service sign (for
Red Wing Shoes) on the east side of marked Trunk
Highway 52, near its intersection with 37th Street NW
in Olmsted County. The sign must display the name or
business panel, or both, of a retail establishment on the
east side of marked Trunk Highway 52 that began operation before construction of the noise wall on the east
side of marked Trunk Highway 52, and the premises of
which is blocked from view by the noise wall. Effective
when nonstate funds are available.
• Signage on Trunk Highway 47 in Anoka required.
Section 69 is a 2013 Session Law. It requires that by
Aug. 1, 2013, the commissioner of MnDOT must erect
additional signage on marked Trunk Highway 47 at the
intersection with McKinley Street in Anoka indicating
the turning and through lane requirements for the intersection. The City of Anoka must reimburse the commissioner for the signage. Effective May 25, 2013.
(AF)
Special freight distribution authorized for west central Minnesota
Chapter 140 (HF 316*/SF 300) creates Minn. Stat. §
169.868. It allows annual permits for truck weights above
the restricted amount in MnDOT District 4 to haul freight
to or from a distribution facility that is constructed on or
after July 1, 2013. MnDOT District 4 serves Becker, Big
Stone, Clay, Douglas, Grant, Mahnomen, Otter Tail, Pope,
Stevens, Swift, Traverse, and Wilkin counties.
• Six-axle vehicles weight limit increase allowed
by permit. Subdivision 1 allows a road authority to
issue an annual permit for a vehicle or combination of
vehicles with a combination of six or more axles to haul
freight and to be operated with a gross vehicle weight
up to: (1) 90,000 pounds; and (2) 99,000 pounds during
the period set by the commissioner of MnDOT under
Minn. Stat. § 169.826, subd. 1. The fee for a permit
issued under this subdivision is $300.
• Seven-axle vehicles weight limit increased by permit. Subdivision 2 allows a road authority to issue an
annual permit for a vehicle or combination of vehicles with a combination of seven or more axles to haul
Minn. Stat. § 169.826, subd 1. The fee for a permit issued
under this subdivision is $500.
Page 35
• Restrictions provided. Subdivision 3 provides that
vehicles issued permits under this section must comply with all requirements and restrictions in Minn. Stat.
§ 169.865, subd. 3. A vehicle may be operated under a
permit issued under this section only to haul freight to
or from a distribution facility that is: (1) constructed on
or after July 1, 2013; and (2) located within MnDOT
District 4.
• Deposit of revenues provided. Subdivision 4 provides that revenue from the permits issued by MnDOT
under this section must be deposited in the bridge
inspection and signing account as provided under Minn.
Stat. § 169.86, subd 5b.
the amendment would ask voters if the constitution should
be amended to remove legislators’ ability to set their own
salaries. Alternatively, a council would be established comprised of: one person who is not a judge from each congressional district, appointed by the chief justice of the
Supreme Court; and one member from each congressional district, appointed by the governor. No member of the
council can be a former or current legislator or lobbyist.
The council must prescribe salaries by March 31 of each
odd-numbered year with any changes in salary to take
effect on July 1 of that year. The amendment will be presented
to voters in the 2016 general election. (AL)
Geospatial data sharing with government entities
16E.30 updating provisions in the Geospatial Information
Office. Of note for cities is section 4 requiring that electronic geospatial government data must be shared at no cost
with government entities. A release of data must include
metadata or other documentation that identifies the original authoritative data source. Government entities providing data under this subdivision are not required to provide
data in an alternate format nor are they required to provide
the same data to the same requestor more than four times
per year. Government entities and agencies sharing and
receiving electronic geospatial data under this subdivision
are immune from civil liability arising out of the use of the
shared electronic geospatial data and this does not authorize
the release of data that are not public data. Effective May 25,
2013. (AL)
Disaster aid provided to southwest Minnesota
Chapter 141 (HF 1832/SF 1656*) is a 2013 Session Law.
It provides $1.5 million from the general fund in fiscal year
2014 to the commissioner of the Department of Public
Safety for the purposes specified in Minn. Stat. § 12A.15,
subdivision 1, to match federal disaster assistance for the
severe winter storm that occurred April 9, 2013, through
April 11, 2013, in the area designated under Presidential Declaration of a Major Disaster FEMA-4113-DR. It
also provides $250,000 from the general fund in fiscal year
2014 to the commissioner of the Department of Public
Safety for the purposes specified in Minn. Stat. § 12A.15,
subds. 2 and 2a, to remove debris and provide long-term
recovery assistance for the same area. Effective May 25,
2013. (AF)
MISCELLANEOUS
Campaign finance modifications
Chapter 131 (SF 661*/HF 863) makes a number of
changes to the procedures and standards for campaign
finance regulation and reporting, including increasing
campaign spending and contribution limits for certain
candidates and increasing thresholds for registration and
reporting by certain types of entities. The law also expands
the Campaign Finance and Public Disclosure Board’s
enforcement authority to include certain provisions of
the Fair Campaign Practices Act. Article 2 amends Minn.
Stat. § 10A.01, subd. 35 expanding the definition of “public official” to include: district court judge, appeals court
judge, or Supreme Court justice; and county commissioner. City officials and employees are not included in the
definition. Effective May 25, 2013. (AL)
Determining legislator salary
Chapter 124 (HF 1823*/SF 533) proposes an amendment to article IV, section 9 of the Minnesota constitution. Currently, legislator salary is determined by law and
Page 36
Hospital reports required
Chapter 51 (HF 588*/SF 471) is a 2013 Session Law that
requires a hospital staffing report and a study on nurse
staffing levels and patient outcomes.
• Hospital staffing report required. Section 1 provides that the chief nursing executive or designee
of every hospital licensed under section 144.50 will
develop a core staffing plan for each care unit. Prior to
submitting the core staffing plan, hospitals must consult
with representatives of the hospital medical staff, managerial and non-managerial care staff, and other relevant
hospital personnel about the core staffing plan and the
expected average number of patients upon which the
staffing plan is based. Any substantial changes to the core
staffing plan must be updated within 30 days. It requires
hospitals to submit a core staffing plan to the Minnesota Hospital Association (MHA) by Jan. 1, 2014, and
requires MHA to post each hospital’s core staffing plan
on its Minnesota Hospital Quality Report website by
April 1, 2014. It also requires that on a quarterly basis,
the MHA include each hospital’s actual direct patient
care hours per patient per unit. Beginning on July 1,
2014, and quarterly thereafter, hospitals must submit
direct patient care reports to MHA.
• Nursing study required. Section 2 requires the
Department of Health to convene a work group to
consult with the department as they study the correlation between nurse staffing levels and patient outcomes.
This report must be presented to the chairs and ranking minority members of the health and human services
committees in the House of Representatives and the
Senate by Jan. 15, 2015.
• Appropriation provided. Section 3 provides $187,000
in fiscal year 2014 and $65,000 in fiscal year 2015 from
the general fund to the commissioner of the Department
of Health for the completion of the study in section 2.
This is a one-time appropriation.
Effective July 1, 2013. (AF)
Lawful gambling modifications
Chapter 79 (SF 1006*/HF 1060) makes changes related to
lawful gambling, record keeping and other regulatory provisions.
• Increased threshold for annual financial audits.
Section 1 amends Minn. Stat. § 297E.06, subd. 4. Under
current law, licensed organizations with gross receipts
of more than $500,000 must have an annual financial
audit of lawful gambling activities and funds. This section changes the threshold for required annual audits to
$750,000. Organizations with less than $750,000 in gross
receipts are only required to conduct a financial audit
when the Commissioner of Revenue requires it.
• Linked bingo game provider license application
attachment. Section 2 amends Minn. Stat. § 349.1632,
subd. 3 to change an amount certain to a minimum
amount for a bond required for a linked bingo game
provider to obtain a license. The bond secures payment
of all linked bingo prizes. Under current law, an applicant for a linked bingo game provider license must provide evidence of a bond of $100,000. As modified in this
section, the bond must be for “not less than” $100,000.
• Off-site permits increase. Section 3 amends Minn.
Stat. § 349.165, subd. 5 to increase from four to 12 the
number of events in a calendar year that a licensed organization may conduct on a premise that is not its permitted premise in conjunction with a county fair, the
State Fair, a church festival, or a civic celebration. The
organization must first obtain authorization as required
in Minn. Stat. § 349.213.
• Increase in time limit for deposit of gambling
receipts. Section 4 amends Minn. Stat. § 349.19, subd.
2 to increase from two to four the number of business
days in which gambling receipts from all electronic pulltab games and all linked electronic bingo games must be
deposited into the gambling bank account.
• Pull-tab records. Section 5 amends Minn. Stat. §
349.19, subd. 10 to increase the dollar amount of a paper
pull-tab prize that requires the winner to present iden-
2013 Law Summaries
tification in the form of a driver’s license, Minnesota
identification card or other identification the Gambling
Control Board deems sufficient to allow the identification and tracking of the winner.
• Pull tab reporting requirements. Section 6 is a new
section permitting the commissioner of revenue to
require a onetime closing of all currently active electronic pull-tab games on May 31, 2013, for the purpose
of moving to a uniform system of reporting for electronic pull-tab game activities on a monthly basis.
Effective May 21, 2013. (AL)
Metropolitan Council redistricting
Chapter 66 (SF 1564*/HF1684) amends Minn. Stat. §,
473.123 by repealing subd. 3d, and adding a new subdivision to adopt the MC2013-4, the metropolitan redistricting plan. The council consists of 17 members all appointed
by the governor, subject to the advice and consent of the
Senate. Sixteen members are from districts, and the chair
is appointed from the region at large. The members all
serve at the pleasure of the governor. The Legislature must
redraw the boundaries of the council districts after each
decennial federal census so that each district has substantially equal population. Redistricting is effective in the year
ending in the number “3.” Within 60 days after a redistricting plan takes effect, the governor must appoint members
from the newly drawn districts. Maps illustrating the proposed new boundaries for each council district are available at http://bit.ly/17zEgBi. Effective May 16, 2013.
(AL)
MN.IT Services
Chapter 134 (HF1389*/SF1245) makes various changes
in the laws governing the Office of Enterprise Technology. This agency is also known as MN.IT Services. The bill
changes all references to the “Office of Enterprise Technology” to “Office of MN.IT Services.” The bill also makes
changes governing state finance and budget provisions
and the role of Minnesota Management and Budget
(MMB). The following provisions are relevant to cities:
• Statewide Radio Board membership. Section 27
amends Minn. Stat. § 403.36, subd. 1 by removing the
commissioner of Management and Budget as a member
on the Statewide Radio Board. (Note: See Public Safety
section for further details on changes to the Statewide Radio
Board.)
• Compilation of local impact notes. Section 6, subd
2 amends Minn. Stat. § 3.989, subd. 2 permits the commissioner of management and budget to post a copy of
all local impact notes to the agency website.
Effective May 24, 2013. (LZ)
Page 37
Motor vehicle fuel payment
Chapter 67 (HF 1284*/SF 1131) adds a new section of
law to Minn. Stat. § 325E.08 regarding trade practices.
Minn. Stat. § 325E.085 prohibits restriction on sale of
motor fuel in that no local unit of government can require
any particular form of payment for motor fuel sales. Effective May 17, 2013. (AL)
PENSIONS AND RETIREMENT
Pension plan officers required to report certain
unlawful acts
609.456, subd.1, the law requiring public employees and
officers to report suspected theft, embezzlement, or unlawful use of public property to law enforcement and the state
auditor. The chapter expands the provision to include officers of local pension plans. Effective Aug. 1, 2013. (AF)
Omnibus pensions act
Chapter 111 (HF 629/SF 489*) is the omnibus pensions
act. It enacts the recommendations of the Legislative Commission on Pensions and Retirement (LCPR). The chapter
contains 16 articles and over 20 stand-alone bills. Notably,
Article 11 contains the Public Employees Police and Fire
Retirement Plan (PERA-P&F) financial solvency plan,
which include an employer contribution increase of 1.8
percent of salary, phased in over two years. The PERA P&F
solvency plan and other provisions of interest to cities are
summarized below.
Article 3: PERA administrative provisions
• Student employee exclusion. Section 1 amends
Minn. Stat. § 353.01, subd. 2b and excludes from PERA
coverage student employees in a work-study program if
the position is for five years or less. Current law excludes
student employees if the position is for three years or
less. Effective May 24, 2013.
• Overtime credit during military service allowed.
Section 2 amends Minn. Stat. § 353.01, subd. 16 to
remove the prohibition against use of overtime salary
from the USERRA-compliant military service credit
purchase provision. Effective May 24, 2013.
• Average salary for survivor benefits defined. Section 3 amends Minn. Stat. § 353.01, subd. 7 to redefine
“average salary” for determining surviving spouse and
dependent child benefits. Average salary is defined as the
average of the full-time monthly base salary rate for the
last six months of allowable service. Part-time service
must be prorated based on actual hours worked. Effective
May 24, 2013.
• Designated beneficiary definition expanded. Section 4 changes the definition of “designated beneficiary”
Page 38
to include trusts, estates, or persons legally authorized to
act on behalf of the member, and amends Minn. Stat. §
353.01, subd. 29 to require beneficiary designations to
be made on or before the date of death of the member
and in the form prescribed by the executive director.
• Social Security leveling option. Section 28 amends
Minn. Stat. § 356.415, subd. 1 and eliminates a Social
Security leveling option from the post-retirement adjustment provisions. Effective Jan. 1, 2014.
Article 6:Volunteer firefighter retirement changes
• Deadline for cost analysis review. Section 3 amends
Minn. Stat. § 353G.05, subd. 2 by increasing the deadline
for a municipality to act upon a volunteer fire department election to join the statewide volunteer firefighter
plan from 90 to 120 days from receipt of the PERA cost
analysis document. Effective July 1, 2013.
• Fiscal year defined. Section 4 defines the fiscal year as
the calendar year for volunteer firefighter relief associations, amending Minn. Stat. § 424A.001. Effective May 24,
2013.
• Service breaks. Section 5 amends Minn. Stat. §
424A.01, subd. 6 and clarifies specific federal and state
laws that under which breaks in service are exempted
from the general law regarding service breaks. Effective
May 24, 2013.
• Service separation definition. Section 6 clarifies an
existing exception to the service separation requirement
for volunteer firefighter associations under Minn. Stat. §
424A.015, subd. 1. Effective May 24, 2013.
• Deferred service interest rate approval. Section 9
amends the deferred service pension provisions of the
volunteer firefighter relief association under Minn. Stat.
§ 424A.02, subd. 7. Any change in the interest rate paid
during a period of deferral of a lump-sum service pension must be approved by the governing body of the
municipality or the independent nonprofit firefighting
corporation. Effective Jan. 1, 2014.
• Supplemental survivor benefit payment. Section 11
amends Minn. Stat. § 424A.10, subd. 2 to require that an
association pay a supplemental survivor benefit whenever it pays lump-sum survivor benefit, regardless of
whether such payment is authorized by the bylaws. Effective May 24, 2013.
• White Bear Lake payment option. Section 12 permits the White Bear Lake Volunteer Firefighter Relief
Association to provide a $2,000 lump-sum death benefit
to the estates of firefighters with at least 20 years of service who retired before 2009. Effective with compliance by
the City of White Bear Lake with Minn. Stat § 645.021.
• State Board of Investment information provided.
Section 1 creates a new statute, Minn. Stat. § 6.496, that
requires that the State Board of Investment to annually
provide all volunteer firefighter relief associations with:
(1) basic information on enrollment options and participation in the statewide volunteer firefighter retirement
plan: and (2) recent and historic investment performance
results of the Minnesota supplemental investment fund
and options for participation in the fund. Effective July 1,
2013.
• Development of early retirement factors. Section
3 requires the PERA Board to approve early retirement
and optional annuity factors, subject to approval by the
LCPR, and to establish an implementation schedule,
under Minn. Stat. § 353.03, subd. 3. Effective Aug. 1, 2013.
Article 10: PERA salary definitions
• Section 1 amends Minn. Stat. § 353.01, subd. 10 by
revising the definition of salary as follows:
• Expands periodic compensation to include of
employee retirement contributions designated as
“picked up” contributions under Minn. Stat. § 356.62.
• Expands periodic compensation to include employee
contributions to a supplemental plan or governmental trust to save for postretirement health care expenses
under Minn. Stat. § 356.24, subd. 1(7).
• Expands periodic compensation to include nonwrongful-discharge salary reductions remedied
through a grievance, settlement, or court order, including any applicable pay increases that would have otherwise been earned.
• Expands periodic compensation to include amounts
paid during a personal, parental, or military leave of
absence.
• Expands periodic compensation to include amounts
paid during an authorized medical leave of absence
if specified in advance to be at least one-half but no
more than equal to the earnings received during the
six months immediately preceding the leave.
• Expands periodic compensation to include the compensation paid an employee for attaining or exceeding
performance goals, duties, or measures during a specified period of employment.
• Excludes from periodic compensation any unused
annual leave in the form of lump-sum or periodic
payments from periodic compensation.
• Excludes from periodic compensation the payment to
another person of the value of hours donated under a
benevolent vacation, personal, or sick leave donation
program.
• Excludes from periodic compensation retirement
incentive payments.
• Excludes from periodic compensation per diem payments.
• Excludes from periodic compensation disability insur-
2013 Law Summaries
ance payments, including payments from an employer
self-insurance arrangement.
• Specifies the particular forms of fringe benefits that
are excluded from periodic compensation. Excluded
fringe benefits include, but are not limited to:
employer-paid premiums or supplemental contributions for all types of insurance; membership dues
for fitness or recreational facilities; payments or cash
awards for a wellness program; the value of any nonmonetary benefits; any form of payment made in
lieu of an employer-paid fringe benefit; an employerpaid amount to a deferred compensation or tax-sheltered annuity program; and any amount paid by the
employer as a supplement to salary that is not available
to the employee as cash.
Article 11: PERA P&F financial solvency measures
• Average salary definition. Section 1 amends Minn.
Stat. § 353.01, subd. 17a to include as part of “average salary” the salary of an employee earned after the
employee reaches the new allowable service limit in
Minn. Stat. § 356.651, subd. 3 (See, Section 8 below).
• Duty disability definition. Section 2 amends Minn.
Stat. § 353.01, subd. 41 and redefines “duty disability.” A
duty disability must now be the direct result of an injury
arising out of inherently dangerous duties. Previous law
stated that the injury must arise out of duties specific to
protecting the property and personal safety of others and
that present inherent dangers. Effective May 24, 2013.
• 20-year vesting period for new hires. Section 3
amends Minn. Stat. § 353.01, subd. 47 by establishing a
20-year proportional vesting periods for new hires beginning in 2014. A person who joins the plan after July 1,
2014, becomes vested at 50 percent after 10 years, and an
additional 10 percent per year until reaching 100 percent
after 20 years. Effective Aug. 1, 2013, and applies to persons
who become members of the association on or after July 1, 2014.
• Disability benefit application requirements. Section 4 amends § Minn. Stat. § 353.31, subd. 4 by requiring that an application for disability benefits contains (1)
a “clear explanation” of any duties the individual cannot
perform, and (2) an explanation of why the employer
may or may not authorize continued employment to the
applicant in the current or other position. Effective May
24, 2013.
• Clarification of refund rights. Section 5 makes conforming changes to Minn. Stat. § 353.35 to clarify that
the new allowable service limit in Minn. Stat. § 356.651,
subd. 3 (See, Section 8 below), does not result in forfeiture of salary credit. Effective May 24, 2013.
• Employee contribution increase. Section 6 amends
Minn. Stat. § 353.65, subd. 2 to increase the employee
Page 39
contribution rate from 9.6 percent of salary to 10.2 percent of salary in calendar year 2014, and to 10.8 percent
of salary in calendar year 2015 and thereafter. Effective
May 24, 2013, and will apply to all wages paid in the first
paycheck issued after Jan. 1, 2014 ,regardless of whether the
pay period covers dates prior to 1/1/2014.
• Employer contribution increase. Section 7 amends
Minn. Stat. § 353.65, subd. 3 to increase the employer
contribution rate from 14.4 percent of salary to 15.3
percent of salary in calendar year 2014, and to 16.2 percent of salary in calendar year 2015 and thereafter. Effective May 24, 2013, and will apply to all wages paid in the
first paycheck issued after Jan. 1, 2014, regardless of whether
the pay period covers dates prior to 1/1/2014.
• Retirement annuity formula changes. Section 8
makes changes to the retirement annuity formula in
Minn. Stat. § 353.651, subd. 3:
• To reflect the new 20-year vesting period, the annuity
formula will be multiplied by the appropriate vesting
percentage, as opposed to per year of service.
• For members first enrolled after June 30, 2014, the
allowable service included in the annuity calculation
is capped at 33 years and the retirement annuity must
not exceed 99 percent of the average salary.
• For new members who exceed 33 years of allowable
service, a prorated share of the excess service must be
refunded to the member.
• Retirement penalty increased. Section 9 makes
changes to the early retirement provisions in Minn. Stat.
§ 353.651, subd. 4. The early retirement reduction factor is changed from 1.2 percent per year (2.4 percent for
post-June 2007 retirements) to 5 percent per year, and is
phased in over a period of 5 years, beginning on July 1,
2014. Effective May 24, 2013.
• Maximum family benefit. Section 11 amends Minn.
Stat. § 353.657, subd.3a to specify that in the event that
family benefit cap is reached, the benefit reduction must
be made proportionately on the annuitant, surviving
spouse, and dependent children. Effective May 24, 2013.
• Postretirement adjustments for PERA General.
Section 13 makes changes to the annual postretirement
adjustments in Minn. Stat. § 356.415, subd. 1b. The
annual adjustment remains at 1 percent until the plan
reaches funding stability, which occurs when the market
value of the retirement plan meets or exceeds 90 percent of the actuarial accrued liabilities in the two most
recent consecutive actuarial valuations. When funding
stability is reached, the annual postretirement adjustment increases to 2.5 percent. After funding stability is
reached, the postretirement adjustment will decrease to
1 percent in subsequent years if the funding level of the
plan drops to 85 percent for two consecutive actuarial
valuations, or drops to 80 percent for the most recent
actuarial valuation.
Page 40
• Postretirement adjustments for PERA P&F. Section 14 makes changes to the annual postretirement
adjustments in Minn. Stat. § 356.415, subd. 1c. The current 1 percent annual postretirement adjustment remains
in place for current and near-term retirees, and delays
the first retirement increase paid to new retirees for three
years beginning on July 1, 2014.
• When funding stability is reached, the annual postretirement adjustment increases to 2.5 percent. After
funding stability is reached, the postretirement adjustment will decrease to 1 percent in subsequent years if
the funding level of the plan drops to 85 percent for
two consecutive actuarial valuations, or drops to 80
percent for the most recent actuarial valuation.
Article 15:Voluntary membership dues reduction.
• Section 1 amends Minn. Stat. § 356.91 to require that
the director of the Minnesota State Retirement System (MSRS) or PERA, upon request of the annuitant,
must deduct from the retirement annuity an amount to
be paid as membership dues or other payments to the
labor union representing retired employees of which the
annuitant is a member. Such payments shall be made on
a monthly basis.
• Section 1 authorizes the labor union that is the exclusive bargaining unit representing public employees or
retired public employees to conduct blind mailings
containing voluntary membership information or dues
deduction cards to annuitants of MSRS or PERA. The
organization must pay all costs associated with the mailing. Alternatively, PERA or MSRS may transmit contact
information to a mailing center to perform a blind mailing, pursuant an agreement stating that neither the labor
organization nor any other group may have access to the
data.
• Section 1 limits the number of mailings to two per year
and states that the mailings may not be used for the purpose of supporting or opposing any candidate, political
party, or ballot measure.
Various effective dates. (PH)/(GC)/(AF)
Fire and police department aid threshold for financial reports and audits modified
69.051, subd. 1 by increasing the threshold at which the
board of a salaried firefighters relief association, police
relief association, and volunteer firefighters relief association must prepare a financial report from assets of at least
$200,000 to assets of at least $500,000. Effective Aug. 1,
2013. (AF)
PUBLIC SAFETY
Omnibus public safety finance act
Chapter 86 (HF 724/SF 671*) is the omnibus public safety
act. The chapter contains appropriations related to public
safety, courts, corrections, and transportation. The chapter spends just under $1.96 billion for the FY 2014-2015
biennium. Summarized below are provisions that may be
of interest to cities.
Article 1: Appropriations for FY 2014 and 2015
Article 1 contains appropriations for the following state government entities: Supreme Court, Court of Appeals, Trial
Courts, Guardian ad Litem Board, Tax Court, Uniform Laws
Commission, Board on Judicial Standards, Board of Public
Defense, Department of Public Safety, Peace Officers Standards and Training Board, Private Detective Board, Department of Human Rights, Department of Corrections, and
Sentencing Guidelines Commission.
• Supreme Court appropriation provided. Section 3
appropriates $44.548 million for FY 2014 and $45.191
million for FY 2015 to the Supreme Court. Effective July
1, 2013.
• Supreme Court operations funded. $32.282 million
in FY 2014 and $32.925 million in 2015 is for Supreme
Court operations. This represents an approximately $3
million funding increase over the previous biennium.
• Civil legal services funded. $12.266 in 2014 and
$12.266 million in 2015 is for civil legal services. This
represents a funding increase of over $1 million over the
previous biennium. Effective July 1, 2013.
• Court of Appeals appropriation provided. Section 4 provides $10.641 in 2014 and $11.035 million in
2015 to the Court of Appeals. This amount represents an
approximately $5,000 increase over the previous biennium. Effective July 1, 2013.
• District Courts appropriation provided. Section
5 provides $247.459 million in 2014 and $256.622 in
2015 to fund district courts. This amount represents an
approximately $9 million increase over the previous
biennium. Effective July 1, 2013.
• Tax Court appropriation provided. Section 7 appropriates $1.023 million in 2014 and $1.035 million in
2015 for Tax Court. This represents an approximately
$400,000 increase over the previous biennium. It specifies that $161,000 each year is for two law clerks, continuing legal education costs, and Westlaw costs; and that
$25,000 each year is for the implementation and maintenance of a modern case management system. Effective
July 1, 2013.
• Uniform Laws Commission funded. Section 8
appropriates $147,000 in 2014 and $84,000 in 2015 to
2013 Law Summaries
the Uniform Laws Commission. This amount represents
an increase of approximately $140,000 over the previous biennium. $63,000 the first year is to pay back dues
owing to the National Conference of Commissioners on
Uniform State Laws. Effective July 1, 2013.
• Board on Judicial Standards funded. Section 9
appropriates $756,000 in 2014 and $456,000 in 2015 to
the Board on Judicial Standards. This amount represents
a $10,000 increase over the previous biennium. Of this
amount, $300,000 the first year is for deficiencies occurring in fiscal year 2013. $125,000 each year is for special
investigative and hearing costs for major disciplinary
actions undertaken by the board. Effective July 1, 2013.
• Board of Public Defense funded. Section 10 appropriates $70.698 million in 2014 and $73.612 million
in 2015 to the Board of Public Defense. This amount
represents an approximately $12 million over the previous biennium. From this appropriation, the board must
pay all outstanding billings as of June 30, 2013, for transcripts. By Jan. 15, 2014, and by Jan. 15, 2015, the board
must report to the chairs and ranking minority members
of the House of Representatives and Senate committees with jurisdiction over criminal justice and judiciary
finance on how this appropriation was spent, including information on new attorney and staff hires, salary
and benefit increases, caseload reductions, technology
improvements, and transcript costs and billings. Effective
July 1, 2013.
• Sentencing Guidelines Commission funded. Section 11 appropriates $886,000 in 2014 and $586,000
in 2015 to the Sentencing Guidelines Commission.
$300,000 the first year is for a transfer to the Office
of Enterprise Technology for an electronic sentencing
worksheet system. Any ongoing information technology
support or costs for this application shall be incorporated
into the service-level agreement and shall be paid to the
Office of Enterprise Technology. Effective July 1, 2013.
• Department of Public Safety funded. Section 12
appropriates $157.851 million in 2014 and $161.191
million in 2015 to the Department of Public Safety
(DPS). This amount is approximately the same as the
appropriation made in the previous biennium.
• Hazmat and chemical assessment teams funded.
$604,000 each year is from the fire safety account in the
special revenue fund. These amounts must be used to
fund the hazardous materials and chemical assessment
teams. Effective July 1, 2013.
• School Safety Center reinstated. $455,000 the first
year and $405,000 the second year from the general fund
are to reinstate the School Safety Center and to provide for school safety. The commissioner of the DPS is
directed to work collaboratively with the School Climate Council and the School Climate Center established
under Minn. Stat. § 121A.07 and 127A.052. By Jan. 15,
2014, and by Jan. 15, 2015, the commissioner of the DPS
Page 41
must report to the chairs and ranking minority members
of the Senate and House of Representatives committees with jurisdiction over criminal justice and judiciary
funding on how this appropriation was spent. The report
must specify the results achieved by the school safety
center and the level of cooperation achieved between
the commissioner and the School Climate Council and
school climate center. Effective July 1, 2013.
• Bureau of Criminal Apprehension funded. $47.588
million in 2014 and $47.197 million in 2015 are appropriated to the Bureau of Criminal Apprehension (BCA).
This amount represents an approximate $10 million
increase over the previous biennium. $1.941 million
each year is from the trunk highway fund for laboratory
analysis related to driving-while-impaired cases. $50,000
the first year and $580,000 the second year from the
general fund and $3 million the first year and $2 million the second year from the vehicle services account in
the special revenue fund are to replace the state’s criminal history system. $1.36 million the first year and $1.36
million the second year from the general fund are to
replace the state’s crime reporting system. $125,000 the
first year and $125,000 the second year from the general fund and $125,000 the first year and $125,000 the
second year from the trunk highway fund are to replace
forensic laboratory equipment at the BCA. $200,000 the
first year and $200,000 the second year from the general fund and $200,000 the first year and $200,000 the
second year from the trunk highway fund are to improve
forensic laboratory staffing at the BCA. $310,000 the
first year and $389,000 the second year from the general
fund are to maintain Livescan fingerprinting machines.
The BCA’s general fund base is reduced by $1,720,000
in fiscal year 2014 and $2,329,000 in fiscal year 2015 to
reflect one-time appropriations. Effective July 1, 2013.
• State Fire Marshal funded. $9.555 million in 2014
and $9.555 million in 2015 is appropriated to the State
Fire Marshal. This appropriation is from the Fire Safety
Account in the special revenue fund. $2.368 million
the first year and $2.368 million the second year are for
transfers to the general fund under Minn. Stat. § 297I.06,
subd. 3. (which provides that these funds are transferred
from the Fire Safety Account in the special revenue fund
to the general fund to offset the loss of revenue caused
by the repeal of the one-half of 1 percent tax on fire
insurance premiums). Effective July 1, 2013.
• Alcohol and Gambling Enforcement. $2.485 million in 2014 and $2.485 million in 2015 are appropriated to Alcohol and Gambling Enforcement. This
amount represents an approximately $400,000 increase
over the previous biennium. $653,000 each year is from
the alcohol enforcement account in the special revenue
fund. Of this appropriation, $500,000 each year must
be transferred to the general fund. $250,000 each year
is appropriated from the Lawful Gambling Regulation
Page 42
Account in the special revenue fund.
• Office of Justice Programs funded. $36.106 million
in 2014 and $36.106 million in 2015 are appropriated to
the Office of Justice Programs. This amount represents
an approximately $6 million increase over the previous biennium. $1.5 million each year must be distributed through an open and competitive grant process for
existing crime victim programs; the funds must be used
to meet the needs of underserved and unserved areas
and populations. $100,000 each year is for a grant to the
Community Offender Reentry Program for assisting
individuals to transition from incarceration to the communities in and around Duluth, including assistance in
finding housing, employment, educational opportunities,
counseling, and other resources. $1 million each year is
for youth intervention programs; the appropriations must
be used to create new programs statewide in underserved areas and to help existing programs serve unmet
needs in program communities. $350,000 each year is for
a grant to Ramsey County to be used by the Ramsey
County Attorney’s Office to: (1) develop a statewide
model protocol for law enforcement, prosecutors, and
others, who in their professional capacity encounter sexually exploited and trafficked youth, on identifying and
intervening with sexually exploited and trafficked youth;
(2) conduct statewide training for law enforcement and
prosecutors on the model protocol and the Safe Harbor
Law described in Laws 2011, First Special Session chapter 1, article 4, as modified by Senate File No. 384, article 2, if enacted; and (3) develop and disseminate to law
enforcement, prosecutors, and others, who in their professional capacity encounter sexually exploited and trafficked youth, on investigative best practices to identify
sex trafficked victims and traffickers. By Jan. 15, 2015,
the Ramsey County Attorney’s Office shall report to the
chairs and ranking minority members of the Senate and
House of Representatives committees and divisions having jurisdiction over criminal justice policy and funding on how this appropriation was spent. $50,000 each
year is for a grant to the Upper Midwest Community
Policing Institute for use in training community safety
personnel about the use of de-escalation strategies for
handling returning veterans in crisis. $50,000 each year is
for a grant to the Juvenile Detention Alternative Initiative. Effective July 1, 2013.
• Emergency communication networks funded.
$59.138 million in 2014 and $63.639 million in 2015
are appropriated for the state’s emergency communication networks from the state government special revenue
fund for 911 emergency telecommunications services.
• Public safety answering points funded. $13.664
million each year is to be distributed to public safety
answering points as provided in Minn. Stat. § 403.113,
subd. 2. Effective July 1, 2013.
• Medical Resource Communication Centers
funded. $683,000 each year is for grants to the Minnesota Emergency Medical Services Regulatory Board
for the Metro East and Metro West Medical Resource
Communication Centers that were in operation before
Jan. 1, 2000. Effective July 1, 2013.
• Allied Radio Matrix for Emergency Management
debt payment provided. $23.261 million each year
is to the commissioner of Minnesota Management and
Budget (MMB) to pay debt service on revenue bonds
issued under Minn. Stat. § 403.275 for the Allied Radio
Matrix for Emergency Management (ARMER). Any
portion of this appropriation not needed to pay debt
service in a fiscal year may be used by the commissioner
of the DPS to pay cash for any of the capital improvements for which bond proceeds were appropriated by
Laws 2005, chapter 136, Section 9, subd. 8; or Laws
2007, chapter 54, Section 10, subdivision 8. Effective July
1, 2013.
• ARMER State Backbone Operating Costs funded.
$9.25 million in 2014 and $9.65 million in 2015 are
to the commissioner of the Minnesota Department of
Transportation (MnDOT) for costs of maintaining and
operating the first and third phases of the ARMER
backbone. Effective July 1, 2013.
• ARMER improvements funded. $1 million each
year is to the Statewide Radio Board for costs of design,
construction, and maintenance of, and improvements to,
those elements of the statewide public safety radio and
communication system that support mutual aid communications and emergency medical services or provide
interim enhancement of public safety communication
interoperability in those areas of the state where the
statewide public safety radio and communication system
is not yet implemented. Effective July 1, 2013.
• Peace Officer Standards and Training Board
funded. Section 13 appropriates $3.87 million in 2014
and $3.87 million in 2015 to the Peace Officer Standards and Training (POST) Board. This appropriation is
from the Peace Officer Training Account in the special
revenue fund. Any new receipts credited to that account
in the first year in excess of $3.87 million must be transferred and credited to the general fund. Any new receipts
credited to that account in the second year in excess of
3.87 million must be transferred and credited to the general fund. $2.734 million each year is for reimbursements
to local governments for peace officer training costs. This
amount represents an approximately $200,000 increase
over the previous biennium. Of the reimbursement
amount $100,000 the first year is for reimbursements to
local governments for peace officer training costs on sexually exploited and trafficked youth, including effectively
2013 Law Summaries
identifying sex trafficked victims and traffickers, investigation techniques, and assisting sexually-exploited youth.
Reimbursement will be provided on a flat fee basis of
$100 per diem per officer. Effective July 1, 2013.
• Private Detective Board funded. Section 14 provides
$120,000 in each year of the biennium for the Private
Detective Board. This is the same appropriation provided
in the previous biennium. Effective July 1, 2013.
• Department of Human Rights funded. Section 15
provides $3.297 million in each year of the biennium to
the Dept. of Human Rights. This amount represents an
approximately $200,000 increase over the previous biennium. $129,000 each year is for two additional contract
compliance officers. Effective July 1, 2013.
• Department of Corrections funded. Section 16 provides $481.47 million in 2014 and $487.304 million in
2015 to the Dept. of Corrections. This amount represents an approximately $55 million increase over the previous biennium. Effective July 1, 2013.
Article 2: Guardians and conservators
Article 2 contains provisions related to guardians and conservators. This article is not directly relevant to city operations.
Article 3: Criminal justice
Article 3 makes policy reforms related to corrections, public safety, the human rights department, and the courts.
• Conditional release of nonviolent drug offenders
provided. Section 3 creates Minn. Stat. § 244.0551. It
authorizes the commissioner of the Dept. of Corrections
to grant conditional release to nonviolent controlled
substance offenders if the offenders serve a minimum
portion of their sentences and complete substance abuse
treatment while incarcerated. Effective July 1, 2013.
• Grant allocation formula modified. Section 5
amends Minn. Stat. § 299A.73, subd. 3, by increasing from 1 percent to 5 percent, the percentage of the
appropriation that may be used by the Minnesota Youth
Intervention Programs Association for providing training
and technical assistance to grantees. It also expands the
allowable expenditures to include program and professional development and tracking, analyzing, and reporting outcome data and exempts the association from the
match obligation. Effective July 1, 2013.
• Court technology fee imposed. Section 6 adds a
subdivision to Minn. Stat. § 357.021. It imposes a court
technology fee of $2 on court filings made under section
357.021, subdivision 2, clauses (1) to (13). (Examples of
these filings include the initial civil filing fees, motion
fees, issuance of a subpoena, docketing fees, and others.) The court technology fee is deposited in a special
revenue fund to be appropriated to the Supreme Court
for distribution to the state courts and their justice partners for technology purposes. The section also authorizes
Page 43
the Judicial Council to establish a board consisting of
members from the judicial branch, prosecutors, public
defenders, and civil legal services to distribute the funds.
It provides that applications may be accepted from the
judicial branch, county and city attorneys’ offices, the
Board of Public Defense, civil legal services organizations, corrections agencies, and part-time public defender
offices. It directs the Judicial Council to submit two
reports to the Legislature that provides an accounting
and explanation of the distribution of funds. The subdivision sunsets on June 30, 2018. Effective July 1, 2013.
Article 4. Data integration project
Article 4 requires improved collection and reporting of
information relevant to eligibility to possess and purchase
firearms.
• Dept. of Corrections fingerprints requirement
modified. Section 1 amends Minn. Stat. § 241.301. It
directs the commissioner of corrections to transfer fingerprint records of offenders transferred to the custody
of the commissioner from another state to the BCA or
National Instant Criminal Background Check System
(NICS) by electronic entry within 24 hours of receiving the fingerprints. If the BCA receives data under this
section in nonelectronic format, the commissioner must
convert that record into electronic format for entry into
the searchable database within three business days of
receiving the record. Effective July 1, 2013.
• Transmittal of data to National Instant Criminal Background Check System required. Section 2
amends Minn. Stat. § 253B.24. It directs a court to submit a mental health adjudication to NICS within three
business days of issuing the ruling if it affects a mentally
ill person’s right to possess firearms. Effective July 1, 2013.
• Local agencies fingerprints requirements modified. Section 3 amends Minn. Stat. § 299C.10, subd. 1. It
requires local law enforcement agencies to submit electronic fingerprint records to state searchable databases
within 24 hours of taking the fingerprints. Effective July
1, 2013.
• BCA fingerprints requirements modified. Section
4 amends Minn. Stat. § 299C.10, subd. 3. It directs the
BCA to convert paper records of fingerprints, thumbprints, and other identification data into electronic format within three business days of receiving the data.
• Identification data other than DNA requirements
modified. Section 5 amends Minn. Stat. § 299C.11,
subd. 1. It directs the BCA to enter alias data for persons
listed in the BCA’s offender database within three business days of the BCA becoming aware of the new identifying data. Effective July 1, 2013.
• Information on released prisoner required. Section
6 amends Minn. Stat. § 299C.14. It directs sheriffs and
the commissioner of corrections to enter specified data
Page 44
about soon-to-be-released offenders into a bureau-managed offender database. This transfer must occur within
24 hours of the offender’s release. Effective July 1, 2013.
• Report by court administrator requirement
authorized. Section 7 amends Minn. Stat. §299C.17. It
authorizes the superintendent of the BCA to require the
court administrator to provide the BCA with the sentence for each felony, gross misdemeanor, and targeted
misdemeanor case within 24 hours of disposition of the
case. Effective July 1, 2013.
• Notice of firearms disqualification required. Section 8 amends Minn. Stat. § 624.713, subd. 3. It requires
courts to provide notice to a person of their mental
health civil commitment firearms disqualification. Effective Aug. 1, 2013.
• Provision of firearms background check information. Section 9 adds a new subdivision to Minn. Stat.
§ 624.713. It directs the courts to notify NICS whenever the court places a person (adult or juvenile), who
is charged with committing a crime of violence, into a
pretrial diversion program before disposition. The court
must notify NICS of both the person’s placement and
the ordered expiration date of the program, and when
the person completes the program the prosecuting attorney must notify NICS of that fact in a timely manner.
Minn. Stat. § 624.713 prohibits such a person from possessing firearms until successfully completing the pretrial
diversion program. Effective Aug. 13, 2013.
• Prior civil commitments and felony convictions.
Section 10 is a 2013 Session Law that establishes a July
1, 2014 deadline for courts and criminal justice agencies
to enter data on civil commitments from Jan. 1, 1994,
to Sept. 28, 2010, and felony convictions from 2008 to
2012, if those records have not already been submitted
to the appropriate searchable databases. Effective July 1,
2013.
• Criminal and juvenile justice information policy
group report required. Section 11 is a 2013 Session Law that directs the Criminal and Juvenile Justice
Information Policy Group to submit a report to the
Legislature recommending how to improve the search
capabilities of BCA-managed databases. The group must
report on the progress of reducing the number of files in
suspense. The group must also consult with the revisor
on other statutory changes needed to implement this bill
and the group’s legislative recommendations. Effective July
1, 2013.
(AF)
Hazardous substance release report required to
local 911 emergency dispatch center
Chapter 92 (HF 814*/SF 1033) adds a provision to Minn.
Stat. § 609.671, subd. 10. It requires the state emergency
response center to direct a caller to notify a local 911
emergency dispatch center of the release of a hazardous
substance if the situation requires an immediate response
or the area is unknown to the center. In all other cases, the
state emergency response center must notify a local firefighting or law enforcement organization of the situation
within 24 hours of receiving the notification. Effective Jan.
1, 2014. (AF)
Public safety provisions in the omnibus transportation finance act
Chapter 117 (HF 1444*/SF 1173) is the 2013 omnibus transportation finance act. The chapter spends $2.394
billion in FY 2014 and $2.346 in FY 2015. It sets the
budget for the Minnesota Department of Transportation (MnDOT) and part of the Minnesota Department of
Public Safety (DPS), as well as funding for the Metropolitan Council, for the upcoming biennium. It makes various
changes in base appropriation levels largely reflecting the
governor’s budget proposal, including increased appropriations for state roads, Driver and Vehicle Services, and
capitol security. It authorizes $300 million in trunk highway bonds, available in fiscal year 2015, for the Corridors
of Commerce program being established. Summarized are
transportation provisions that may be of interest to cities.
(Note: Transportation provisions in Chapter 117 are summarized in the Transportation section of the 2013 Law
Summaries.)
Article 1: Appropriations for FY 2014 and 2015
Article 1 provides a summary of all appropriations by fund.
• Department of Public Safety funding provided.
Section 5 provides $156.441 million in 2014 and
$157.375 in million in 2015 to the DPS. Effective July 1,
2013.
• Public safety officer survivor benefit funded.
$380,000 in each year is from the general fund for payment of public safety officer survivor benefits under
Minn. Stat. § 299A.44. Effective July 1, 2013.
• Continued health insurance benefit reimbursement funded. $1.367 million in each year is from the
general fund to be deposited in the Public Safety Officer’s Benefit Account. This money is available for reimbursements under Minn. Stat. § 299A.465. Effective July
1, 2013.
• Soft body armor reimbursement funded. $600,000
in each year is from the general fund and $100,000 in
each year is from the Trunk Highway Fund for soft body
armor reimbursements under Minn. Stat. § 299A.38.
• Capitol Security recommendations funded.
$1,250,000 in each year is to implement the recommendations of the advisory committee on Capitol Area
Security under Minn. Stat. § 299E.04, including the creation of an emergency manager position under Minn.
Stat. § 299E.01, subdivision 2, and an increase in the
2013 Law Summaries
number of State Patrol troopers and other security officers assigned to the Capitol complex. The commissioner
may 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 may not transfer any
money appropriated to the commissioner under this section: (1) to capitol security; or (2) from capitol security.
Article 3: Funding policy provisions
Article 3 contains policy provisions related to transportation and public safety funding. (Note: The transportation
provisions can be found in the Transportation section of
the 2013 Law Summaries.) Following are transportation
provisions that may be of interest to cities:
• Ignition interlock exception provided. Section 7
amends Minn. Stat. § 169A.37, subd. 1. It Narrows the
prohibition on driving a vehicle during plate impoundment, to allow a person to drive an employer-owned
vehicle that is not required to be equipped with an ignition interlock. Effective May 24, 2013.
• Implied consent advisory requirement exception
provided. Section 8 amends Minn. Stat. § 169A.51,
subd. 2. It creates an exception to the implied consent
advisory requirement. It provides that a peace officer
who is not pursuing an implied consent license revocation is not required to give an advisory to a person who
is believed to have committed an alcohol or drug-related
criminal vehicular operation (CVO) offense. Effective July
1, 2014.
• License reinstatement eligibility modified. Section
9 adds a subdivision to Minn. Stat. § 169A.55. It provides
that a person who has committed an alcohol-related
CVO offense that resulted in injury but not death is eligible for license reinstatement once the person has submitted verification of the use of ignition interlock for
the applicable time period. Effective July 1, 2014.
• Driving permit allowed after 15 hours of instruction. Section 10 amends Minn. Stat. 171.05, subd. 2. It
allows a person to get a driving instruction permit when
taking classroom and behind-the-wheel concurrently,
following at least 15 hours of classroom instruction (and
when other requirements are met). It directs the department to adopt administrative rules and permits use of
the exempted rulemaking process. Under current law, a
person must first complete the classroom portion and be
enrolled in behind-the-wheel in order to obtain a permit. Effective Jan. 1, 2014.
• Driver’s license renewal fee increased. Section 11
amends Minn. Stat. §171.061, subd. 4. It increases, from
$5 to $8, the filing fee charged for a new or renewal
driver’s licenses and Minnesota identification cards. The
same fee amount is imposed by agents authorized by
Driver and Vehicle Services (DVS) to administer driver
Page 45
licensing offices, and by DVS at its locations. (Filing fees
collected by agents are retained by them, and fees collected by DVS are deposited in an operating account in
the special revenue fund for DVS program administration.) Effective Jan. 1, 2014.
• Criminal vehicular operation; revocation periods.
Section 12 adds a subdivision to Minn. Stat. § 171.17. It
places DWI-related criminal vehicular operation revocation periods in statute (see section 41, paragraph (b)
of this article—repealing related rules). Specifies the
revocation period (ranging from two to 10 years) based
on the resulting harm and/or number of qualified prior
impaired driving incidents. Effective July 1, 2014.
• Suspension; criminal vehicular operation and
manslaughter. Section 13 creates Minn. Stat. §
171.187. It requires the Department of Public Safety
to suspend a person’s driver’s license if: (1) the peace
officer certifies that there is probable cause to believe
the person committed a DWI-related CVO offense; or
(2) the person has been formally charged with manslaughter or CVO, resulting from operation of a vehicle. It continues a suspension until the completion of
the criminal case or by order of the commissioner. It
provides that, if a person is convicted, the commissioner must credit the time accrued under the suspension towards the revocation period. It authorizes the
aggrieved person to request an administrative review of
the suspension. Effective July 1, 2014.
• Conditions of issuance provided. Section 14 amends
Minn. Stat. § 171.30, subd. 1 It allows issuance of a limited license to a person whose license was suspended
under the new suspension provision created in section
13. Effective July 1, 2014.
• Non-alcohol related criminal vehicular operation license issuance. Section 15 amends Minn. Stat. §
171.30, subd. 2a. It prevents issuance of a limited license
for one year to a person convicted of a non-alcohol
related criminal vehicular operation offense, or an alcohol-related criminal vehicular homicide offense. Effective
July 1, 2014.
• Alcohol related criminal vehicular operation
offender limited license prohibited. Section 16 adds
a provision to Minn. Stat. § 171.30. It prohibits issuance
of a limited license to a person convicted of an alcoholrelated criminal vehicular operation offense involving
injury but not death. Effective July 1, 2014.
• Ignition interlock “program participant” definition modified. Section 17 amends Minn. Stat. §
171.306, subd. 1. It amends the definition of an ignition interlock “program participant” to include a person
whose license was suspended or revoked for an alcoholrelated criminal vehicular operation offense involving
injury but not death. Effective July 1, 2014.
• Ignition interlock program participation authorized. Section 18 amends Minn. Stat. § 171.306, subd. 4.
Page 46
It allows participation in the ignition interlock program
by someone whose license was suspended or revoked for
an alcohol-related criminal vehicular operation offense
involving injury but not death. Effective July 1, 2014.
• Capitol emergency manager position created. Section 30 amends Minn. Stat. § 299E.01, subd. 2. It creates
the position of emergency manager in the Capitol Complex Security Division permanent staff and assigns duties
to the position. Effective July 1, 2013.
• Public Safety commissioner authority provided.
Section 31 amends Minn. Stat. § 299E.01, subd. 3.
Assigns the commissioner of the Department of Public Safety as the final authority over public safety and
security in the Capitol complex. The commissioner of
the Department of Administration is responsible for the
Capitol complex as provided under Minn. Stat., chapter
16B, which assigns general management responsibilities.
• Probable cause certification required. Section 35
creates Minn. Stat. § 629.344. It provides that an officer
must certify to the Department of Public Safety a determination that probable cause exists to believe a person
committed a DWI-related criminal vehicular operation
offenses. Effective July 1, 2014.
(AF)
ATV use statutes related to ditches and rights-ofway revised
Chapter 121 (*SF 796/HF 742) is the omnibus game and
fish policy bill and contains two sections related to the
operation of all-terrain vehicles (ATV):
• Section 4 relates to youthful operators and states that a
person 12 years of age but less than 16 years of age may
operate an ATV on the bank, slope, or ditch of a public
road right-of-way as permitted under MN Stat § 84.928
if they both possess a valid all-terrain vehicle safety certificate issued by the commissioner and are accompanied
by a parent or legal guardian on a separate ATV.
• Section 6 amends MN Stat § 84.928, subd. 1 to allow
the operation of a class 2 ATV on the bank, slope, or
ditch of a public road right-of-way of a trunk, county
state-aid, or county highway, but only to access businesses or make trail connections. Left turns may be made
from any part of the road if it is safe to do so under the
prevailing conditions, unless prohibited under paragraph
(d) or (f) of that section of law.
Effective Aug. 1, 2013. (CJ)
Statewide Radio Board
Chapter 32 (HF 669*/SF 803) makes changes to allow
the Statewide Radio Board to restructure as the Statewide
Emergency Communications Board to integrate interoperable emergency communication technologies—the Allied
Radio Matrix for Emergency Response (ARMER) sys-
tem, 911 service, wireless broadband—and allow a federally recognized tribal government to be integrated into a
Regional Radio Board structure.
• General. Section 4 amends Minn. Stat. § 403.37 subd 1.
It gives the Statewide Radio Board the powers need to
oversee planning, implementation, and maintenance of
the ARMER system.
• Statewide emergency communication board. Section 6 creates a new statute, Minn. Stat. § 403.382. It
permits the Statewide Radio Board to elect to become
the Statewide Emergency Communication Board, which
would be responsible for statewide coordination of 911
service as well as the ARMER system. The new provision requires the board to plan and coordinate a statewide public safety broadband network and other wireless
communication technologies for public safety emergency communication networks.
• Regional radio boards. Section 7 amends Minn. Stat.
§ 403.39. It authorizes a regional radio board to include
a federally recognized Indian tribe. It also permits a
regional radio board to administer grants on behalf of
one or more public safety entities operating in the jurisdiction. Furthermore, it permits a regional radio board
to expand the scope of its joint powers agreement to
other public safety purposes.
• Regional emergency communication boards. Section 8 creates a new statute, Minn. Stat. § 403.392. It
authorizes a regional radio board to elect to become a
regional emergency communication board and include
911 services.
• Topical advisory committee. Section 9, amends
Minn. Stat. § 403.40, subd. 2. It permits the statewide
radio board to establish advisory groups to assist with the
interoperable public safety communication system.
• Repealer. Section 12 repeals Minn. Stat. § 403.33,
which contained language for local planning. The statute was repealed to integrate statewide coordination and
give comprehensive authority to the board to address all
emergency communications.
Effective Aug. 1, 2013. (LZ)
TAXES
Omnibus tax bill
Chapter 143 (*HF 677/SF 552) is the 2013 omnibus tax
bill. The bill raises roughly $2.1 billion in additional revenues to balance the state’s estimated $627 million deficit
and to fund new spending priorities of the 2013 Legislature for the FY2014-2015 biennium. Chapter 143
includes $411 million in spending for programs such as an
expanded homestead credit refund, Local Government Aid,
and County Program Aid. The bill also includes a general
sales tax exemption for purchases by cities and counties.
2013 Law Summaries
Article 1: Homestead credit refund and renter property tax
refund
Article 1 amends various sections of Minn. Stat. § 290A to
modify and expand the homeowner and renter property
tax refund programs.
• Homeowner credit refund. The homeowner program is renamed the “homestead credit refund,” and the
program is expanded by decreasing the income threshold
percentages used to determine eligibility and increasing
the maximum refund across all qualifying income ranges.
The renters refund program is also modified with corresponding decreases in the income threshold percentages
and increases in the maximum refund for renters across
all income ranges. The changes in the homeowner and
renters programs also provide that most voluntary contributions to retirement plans are not included in household income, and all distributions from retirement plans
are included in household income.
• Notice. To increase awareness of the homestead credit
refund program, the law requires the commissioner to
match property tax data submitted by the counties with
income tax and other data collected by the Department
of Revenue, and notify those homeowners whom the
commissioner estimates may be eligible for a homestead
credit refund of at least $1,000.
Effective for homestead credit refunds based on taxes payable in
2014 and rent paid in 2013 and thereafter, and effective for
renter property tax refunds beginning with refunds based on rent
paid in 2013.
Article 2: Property tax aids and credits
• Disparity reduction credit. Section 1 amends Minn.
Stat. § 273.1398, subd. 4 to increase the disparity reduction credit by providing that the credit will be the
amount necessary to reduce the effective tax rate on
commercial-industrial and apartment properties in the
four border cities to 1.9 percent, compared to the current 2.3 percent. Effective beginning with taxes payable in
2014.
• Sustainable Forest Incentive Program. Sections 2
through 5 and sections 34 and 35 make changes to the
Minnesota Sustainable Forest Incentive Program.
• Section 2 amends Minn. Stat. § 290C.02, subd. 6 to
exclude land exceeding 60,000 acres that is subject
to a single conservation easement and any land that
becomes subject to a conservation easement after May
30, 2013, from participation in the Sustainable Forest
Incentive Act (SFIA) program. Effective for certifications
and applications due in 2013 and thereafter.
• Section 3 amends Minn. Stat. § 290C.03 to require
that claimants enrolling more than 1,920 acres in the
program must also allow motorized access on established and maintained roads and trails, unless the road
or trail is temporarily closed for safety, natural resource,
Page 47
or road damage reasons. Effective for calculations made in
2013 and thereafter.
• Section 4 amends Minn. Stat. § 290C.055 to allow a
participant to terminate its covenant in the program if
future changes are made to the payment formula. Effective for calculations made in 2013 and thereafter.
• Section 5 amends Minn. Stat. § 290C.07 to remove
the $100,000 per recipient cap on SFIA payments.
Effective for calculations made in 2013 and thereafter.
• Section 34 is an uncodified session law that releases
lands from their SFIA covenants if they are disqualified from participating in the program as a result of
conservation easements. Effective the day following final
enactment.
• Section 35 is an uncodified session law that allow
lands that dropped out the SFIA program in response
to the 2011 changes in the law to reenroll and qualify
for 2013 SFIA payments, if they do so within 60 days
after enactment of the bill. Effective the day following
final enactment.
• Police and firefighter retirement supplemental
state aid. Section 6 creates a new section, Minn. Stat. §
423A.022, to provide for annual state payments of $15.5
million per year to support police and firefighter pension
funds. Each year, $9 million will be paid to the Public
Employees Retirement Association (PERA) as an amortization aid for the Police and Fire Fund, $5.5 million
per year will be paid by formula to municipalities with
voluntary firefighters, and $1 million will be paid to the
Minnesota State Retirement System for deposit in the
state patrol fund.
The $5.5 million appropriation for voluntary firefighter pensions will be allocated to each municipality, except for municipalities with firefighter retirement
coverage provided solely through the PERA Police and
Fire Fund, in proportion to the most recent amount of
fire state aid paid to the municipality relative to the most
recent statewide total fire state aid for all non-PERA
P&F municipalities. There will be no additional filing
requirement beyond the March 15 fire state aid application in order to receive the additional aid amount.
Although the total amount of available fire state aid is
not known at this time, the $5.5 million appropriation
would have resulted in a roughly 30 percent increase in
the fire aid amount if it had been in place for the 2012
distribution. The final 2013 increase percentage will be
based on the actual available fire state aid.
The allocated amount for fire departments participating in the PERA voluntary statewide lump-sum volunteer firefighter retirement plan will be paid directly to
PERA, credited to the respective account, and deposited
in the fund. For other local plans, the amount will be
paid to each municipality, and transmitted within 30 days
of receipt to the applicable volunteer firefighter relief
association for deposit in its special fund.
Page 48
The aid program under this section ends on the
Dec. 1 following the actuarial valuation date on which
the assets of the retirement plan on a market value
basis equals or exceeds 90 percent of the total actuarial
accrued liabilities of the retirement plan. Effective beginning in the fiscal year beginning July 1, 2013.
• Local Government Aid (LGA) reform. Sections 7
through 18 (except section 13) and Section 36 amend
Minn. Stat. § 477A and include the LGA reform proposal
based on legislation introduced by Rep. Ben Lien (DFLMoorhead) and Sen. Roger Reinert (DFL-Duluth). A
detailed description of the new formula and a printout
with the estimated 2014 LGA amounts for each city can
be found in Appendix B at the back of this booklet.
• New LGA formula. The LGA formula will now
include a three-tier LGA need factor calculation
depending on the population of the city, with separate
“need” calculations for cities under 2,500 in population, cities between 2,500 and 10,000 in population,
and cities over 10,000 in population. All three need
formulas were derived using revenue base (levy plus
aid) as a proxy for city need. The small city need calculation is based on a statistical analysis of the spending patterns of cities under 2,500 population, while
the medium and large city need calculations are based
on regression analysis of current fiscal and demographic data similar to the techniques used in previous LGA formulas. The new formula will reduce the
annual volatility in the LGA distribution to individual
cities by modifying the method used to allocate the
annual appropriation increase. Under the new formula,
no city will experience a reduction in LGA in 2014.
Beginning with the 2015 distribution, roughly 90 cities would experience some reduction in their LGA
distribution. However, the new formula will limit
annual reductions to the lesser of $10 per capita or 5
percent of the city’s previous year net levy. For cities that will gain under the new formula, those whose
current LGA distribution is furthest from their unmet
need will receive proportionally larger increases. The
new formula also significantly simplifies the LGA system by eliminating several of the formula side pots.
• City-specific adjustments. Section 16 provides for
three city-specific aid adjustments from the formula.
• Warroad. The City of Warroad will receive an extra
$150,000 per year for the next five years to compensate for a major commercial property devaluation. The
Warroad provision had been a permanent adjustment
under the former LGA system but the adjustment will
now sunset in five years.
• Mahnomen. The City of Mahnomen will receive an
extra annual LGA payment of $160,000 to compensate for tax base loss due to a casino being exempted
under federal law.
• Red Wing. The City of Red Wing will receive a
one-time additional payment of $1 million for 2014
only. The total LGA appropriation for 2014 was
increased to cover these additional distributions.
• Disaster areas. Section 17 allows a city that is located
in a disaster area for an event that occurred in April 2013
to get its entire 2013 LGA payment on July 20, 2013.
This provision covers cities in the counties of Rock,
Nobles, Jackson, Murray, and Cottonwood.
• Total appropriation. Section 18 sets the total city aid
appropriation at $507.6 million for aids payable in 2014,
$509.1 million for aids payable in 2015, and $511.6 million for aids payable in 2016 and thereafter.
• Repealer. Section 36 repeals a number of current law
provisions related to the existing LGA formula that are
no longer used in the new distribution formula as well
several obsolete provisions related to aid reductions over
the last several years.
Section 17 is effective for aids payable in calendar year 2013. All
other LGA sections are effective for aids payable in calendar year
2014 and thereafter.
• County program aid. Section 19 amends Minn. Stat.
§ 477A.03 subd. 2b by increasing county program aid by
$40 million per year for aids payable in 2014 and thereafter by increasing the appropriation for “need aid” and
“tax base equalization aid” each by $20 million. This
section also makes technical language changes related to
payments for local impact notes. Effective for aids payable
in calendar year 2014 and thereafter.
• New township LGA. Sections 13 and 20 create new
sections, Minn. Stat. § 477A.013, subd. 1 and 477A.03,
subd. 2c, that establish a new township LGA system, and
sets the town aid appropriation for aids payable in 2014
and thereafter at $10 million. The township formula provides aid payments to townships equal to the product of:
(1) its agricultural property factor; (2) its town area factor; (3) its population factor; and (4) 0.0045. If the sum
of all aids payable under this subdivision exceeds the
limit, the distribution to each township is reduced proportionately. Effective for aids payable in calendar year 2014
and thereafter.
• Minneapolis debt service aid. Section 21 creates a
new section, Minn. Stat. § 477A.085, that requires the
state to make annual payments to the City of Minneapolis equal to 40 percent of the annual levy for payments
for the city’s library referendum bonds, beginning in
• Payment in lieu of taxes (PILT) program. Sections
22 to 32 and section 36 amend various sections of Minn.
Stat. ch. 477A related to the PILT program, including:
the addition of a purpose statement for PILT; a variety
of modifications to existing statutes to define “acquired
natural resources land” to specifically exclude “wildlife
management land;” a new definition of “military game
2013 Law Summaries
refuge” as land owned in fee by another state agency for
military purposes and designated as a state game refuge
(this land is the Camp Ripley game refuge that currently receives a payment under Chapter 97A); a new
definition of “transportation wetland” as land administered by the Department of Transportation in which the
state acquired, by purchase from a private owner, a fee
title interest in over 500 acres of land within a county to
replace wetland losses from transportation projects; and
“wildlife management land” as land administered by the
commissioner in which the state acquired, from a private
owner by purchase, condemnation, or gift, a fee interest
under the authority granted in Minn. Stat. ch. 94 (lands,
state forests) or Minn. Stat. ch. 97A (game and fish) for
wildlife management purposes and actually used as a
wildlife management area.
Section 28 amends Minn. Stat. § 477A.12, subdivision 1 to modify PILT payments as follows:
• Acquired natural resources land: $5.133, multiplied by the total number of acres or, at the county’s
option, three-fourths of 1 percent of the appraised
value of land in the county, whichever is greater (no
change);
• Transportation wetland: $5.133, multiplied by the
total number of acres of transportation wetland, or, at
the county’s option, three-fourths of 1 percent of the
appraised value of all acquired natural resources land
in the county, whichever is greater (similar to current
law);
• Wildlife management land: Three-fourths of 1
percent of the appraised value of all wildlife management land in the county (new provision);
• Military refuge land: 50 percent of the dollar
amount as determined under clause (1), multiplied
by the number of areas of military refuge land in the
county (same as current payment in Chapter 97A);
• County-administered: $1.50 multiplied by the
number of acres of county-administered other natural
resource land in the county (increased from $1.283/
acre payment in current law);
• Land utilization projects: $5.133 multiplied by the
total number of acres of land utilization project land in
the county (increased from $1.23/ acre under current
law);
• Commissioner-administered: $1.50 multiplied by
the total number of acres of commissioner-administered other natural resources land in the county
(increased from $0.642/acre under current law).
• Local drainage assessments: Without regard to
acreage, $300,000 for local assessments under section
84A.55, subdivision 9 (new provision).
Sections 22 through 32 are effective for aids payable in calendar
year 2013 and thereafter.
• Section 36 repeals the additional or alternative PILT
payments in Chapter 97A for goose crop lands, public
Page 49
hunting lands, and Camp Ripley game refuge, as well
as a payment to Chisago County for land in St. Croix
Wild River State Park under special law. Effective July
1, 2013.
• Mahnomen County local government appropriations. Section 33 increases the annual aid appropriations to taxing jurisdictions in Mahnomen County from
$600,000 to $1.2 million. The payments are as follows:
$900,000 to Mahnomen County; $160,000 to the City
of Mahnomen; and $140,000 to Independent School
District No. 432, Mahnomen. Effective for aids payable in
calendar year 2013 and thereafter.
Article 3: Education provisions
Article 3 includes several modifications to Minnesota’s
education finance system that provide higher levels of
school district referendum equalization, allow $300 of referendum levy to be approved by the school board rather
than the voters, and create a location equity revenue program for school districts in the seven-county metro area
and outstate regional center districts. Various effective dates.
Article 4: Property taxes
• Board of Water and Soil Resources (BWSR) evaluation and report. Section 1 amends Minn. Stat. §
103B.102, subd. 3 to extend the maximum amount of
time BWSR has to evaluate a local water management
entity’s progress in accomplishing its plan from five years
to 10 years, and allows the board to determine the frequency based on the budget and operations of the entity.
• Comprehensive watershed management plan
tax levy authority. Section 2 amends Minn. Stat. §
103B.335 to broaden tax levy authority by allowing a
county, municipality, or township to levy for implementation funds for a comprehensive watershed management
plan. This section also clarifies that counties may levy
for the reasonable costs to soil and water conservation
districts for administering and implementing programs
identified in the plans. Effective July 1, 2013.
• Local water resources restoration, protection and
management program financial assistance. Section 3 amends Minn. Stat. § 103B.3369, subd. 5 to
require a county that implements a water implementation tax to raise matching funds for base grants awarded
by BWSR to levy at a rate that is sufficient to generate
a minimum amount (to be determined by BWSR). This
section also authorizes the use of funds raised by metropolitan county conservation fees (a $5 fee on mortgage
and deed recordings/registrations) to be used as matching funds for the base grants and to address high-priority
needs in local water management plans or comprehensive watershed management plans. Effective July 1, 2013.
• Cost-sharing conservation contracts for erosion
control and water management. Section 4 amends
Page 50
Minn. Stat. § 103C.501, subd. 4 to eliminate cost-share
fund allocation requirements that required 70 percent of
cost-share funds to be allocated to certain areas and no
more than 20 percent to be allocated for technical and
administrative assistances. This section also requires that
funds for technical assistance be used to leverage federal
or other non-state funds or address high-priority needs
in local water management plans or comprehensive
watershed management plans. Effective July 1, 2013.
• Soil loss ordinance authority. Section 5 amends
Minn. Stat. § 103F.405, subd. 1 to allow soil loss ordinances adopted by counties, cities, and towns to use
the soil loss tolerance for each soil type developed by
BWSR, in addition to those in the United States National
Resources Conservation Service Field Office Technical Guide,
which is currently the only approved source. Soil loss
tolerance is the maximum annual rate of soil loss by erosion that will permit crop productivity to be sustained.
The soil loss ordinances must be consistent with a comprehensive plan, local water management plan, or watershed management plan. Effective July 1, 2013.
• Manufactured homes and park trailers. Section 6
amends Minn. Stat. § 168.012, subd. 9 to exempt manufactured homes and park trailers from the motor vehicle
registration tax and the personal property tax if the unit
is held as inventory by a limited dealer. Under current
law, the inventory exemption applies only to “licensed
dealers.” Effective for taxes payable in 2014 and thereafter.
• Manufactured home as dealer inventory. Section
7 creates a new subdivision, Minn. Stat. § 168.012, that
defines a manufactured home as dealer inventory if it is
listed as inventory by a licensed or limited dealer, and is
unoccupied and not available for rent. Under these conditions, it is considered part of dealer’s inventory even if
it is permanently connected to utilities when located in
a manufactured home park or temporarily connected to
utilities when located at a dealer’s sales center. This section also puts a five-year limit on the time that an unoccupied home held in inventory is exempt. Effective for
taxes payable in 2014 and thereafter.
• State Board of Assessors; assessor sanctions. Section 8 amends Minn. Stat. § 270.41, subd. 3 to provide
that the state board of assessors may censure, warn, or
fine an assessor in addition to their currently available
possible sanctions of suspending, revoking, or refusing
to grant a license. The new sanctions can also be applied
against unlicensed assessors. Effective July 1, 2013.
• Report on disciplinary actions against assessors.
Section 9 adds a new subdivision, Minn. Stat. § 270.41,
that requires the state board of assessors to make a biannual report on the sanctions recommended by the
commissioner of revenue under section 14, and the disposition of those recommendations by the board. Effective July 1, 2013.
• Disposition of assessor fines. Section 10 amends
Minn. Stat. § 270.45 to provide that fines imposed under
section 8 above must be deposited in the state’s general
fund. Effective July 1, 2013.
• Assessor accreditation. Section 11 adds a new section, Minn. Stat. § 270C.9901, that requires that every
individual who appraises or physically inspects property for property tax valuation or classification purposes
must become licensed as an accredited assessor by July 1,
2019, or by four years after becoming a licensed assessor,
whichever is later. Effective Jan. 1, 2014.
• Economic development holding period. Section 12 amends Minn. Stat. § 272.02, subdivision 39 to
increase the allowable tax exempt holding period for
city-owned property awaiting development from nine
years to 15 years under two conditions: (1) the property
was acquired on or after Jan. 1, 2000, and on or before
Dec. 31, 2010, regardless of geographic location, or (2)
property is located in a city with a population under
20,000 located outside the metro area. Under current
law, the allowable holding period is 15 years for cities
under 5,000 population located outside the metro area,
and nine years for all other cities. Effective for assessment
year 2013 and thereafter and for taxes payable in 2014 and
thereafter.
• Exemption for eligible property owned by Indian
tribe. Section 13 adds a new subdivision, Minn. Stat. §
272.02, subd. 98, that creates a property tax exemption
for certain property located in Minneapolis owned by
a federally recognized tribal government used for tribal
government activities or services to members of the
tribe. The exemption applies only to property used for
noncommercial and nonresidential purposes and to no
more than two contiguous parcels. The tax exemption
expires with taxes payable in 2024. Effective beginning with
taxes payable in 2014.
• Electric generation facility property tax exemption. Section 14 amends Minn. Stat. § 272.02 to provide
a property tax exemption for the personal property of
a new electric generation facility on which construction begins between June 1, 2013, and June 1, 2017,
that exceeds five megawatts of installed capacity, utilizes
natural gas as a primary fuel, is owned and operated by
a municipal power agency, is located within the service territory of a municipal power agency’s utility that
serves a metropolitan county, and connects directly with
a municipality’s substation.
These facilities are planned for the cities of Anoka,
Chaska, North St. Paul, and Shakopee. Effective for assessment year 2013, taxes payable in 2014, and thereafter.
• Commissioner review of assessment practices.
Sections 15 and 16 amend Minn. Stat. § 273.061, subd. 2
and Minn. Stat. § 273.0645 to provide that the commissioner of revenue may conduct investigations of assessor malfeasance, and make recommendations to the state
2013 Law Summaries
board of assessors for appropriate sanctions.
• Conservation property tax valuation. Section 17
amends Minn. Stat. § 273.117 to provide that the value
of real property subject to a conservation restriction
or easement shall not be reduced by the assessor if the
restriction is for a conservation purpose and the property
is being used in accordance with the restriction. This
section also clarifies that this section does not apply to
restrictions or easements covering riparian buffers along
lakes, rivers, and streams that are used for water quantity
or quality control, or to easements granted by a county
that has adopted a program by referendum to protect
farmland and natural areas since 1999. Effective for assessment year 2013 and thereafter, and for taxes payable in 2014
and thereafter.
• Class 4d (low-income rental housing) property.
Section 18 amends Minn. Stat. § 273.13, subd. 25 to provide for a reduced class rate of 0.25 percent for class 4d
property over $100,000 in value per housing unit. Currently the entire 4d class is subject to a class rate of 0.75
percent. This section also provides for indexing of the
tier bracket based on the statewide average growth rate
for apartment property values and makes several technical modifications. Effective beginning with assessment year
2014 for taxes payable in 2015.
• Federal active service late property tax payment
exception. Sections 19 and 20 amend Minn. Stat. §
279.01, subd. 1 and add a subdivision, Minn. Stat. §
279.01, subd. 5, that grant a four-month grace period for
complying with the property tax due dates for homestead property owned by an individual who is on federal
active service. Section 20 also specifies that no late fees
or penalties may be assessed during this period and the
taxpayer must also provide proof of the dates of active
federal service at the time of payment. Effective July 1,
2013.
• Active federal service; delinquent homestead
property taxes. Section 21 amends Minn. Stat. §
279.02 to provides that property owned by an individual who is on active federal service on the property tax
due date shall not be deemed delinquent. Effective July 1,
2013.
• Confessions of judgment for commercial, industrial, and utility real and personal property. Section 22 amends Minn. Stat. § 279.37, subd.1a to remove
the value cap of $500,000 for class 3a property (commercial, industrial, and utility real and personal property ) eligible for a confession of judgment, and adds an
approval requirement by the county auditor. This section also allows assessment authorities or municipalities to waive or abate repayment of a portion of special
assessments. The county auditor may require conditions
including, but not limited to, environmental remediation
when considering eligibility. Effective July 1, 2013.
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• Confessions of judgment installment payments.
adjust amount and number of payments under confessions of judgment by allowing an initial payment of
one-fifth the amount and four equal, annual installments.
• Expiration of time for redemption. Section 24
amends Minn. Stat. § 281.14 to conform a cross-reference for redemption periods. Effective July 1, 2013.
• Redemption period for homestead and seasonal,
residential, recreation land. Section 25 amends
Minn. Stat. § 281.17 to remove the five-year period for
redemption for homestead or seasonal residential recreational land. This has the effect of instituting a three-year
redemption period for most properties. Effective July 1,
2013.
• Hennepin and Ramsey counties mortgage registry tax authorization. Section 26 amends Minn.
Stat. § 287.05 to codify the authority for Hennepin and
Ramsey counties to levy an additional mortgage registry tax in the statute governing mortgage registry taxes.
Effective for deeds and mortgages acknowledged on or after July
1, 2013.
• Hennepin and Ramsey counties deed tax authorization. Section 27 adds a new section, Minn. Stat.
287.40, that codifies the authority for Hennepin and
Ramsey counties to levy an additional deed tax. Effective
for deeds and mortgages acknowledged on or after July 1, 2013.
• Ramsey County mortgage registry and deed tax
expiration. Section 28 amends Minn. Stat.§ 383A.80,
subdivision 4 to extend the Ramsey County authority
to levy additional mortgage registry and deed taxes by
15 years to Jan. 1, 2028. Effective for all deeds and mortgages
acknowledged on or after July 1, 2013.
• Hennepin County mortgage registry and deed tax
expiration. Section 29 amends Minn. Stat. § 383B.80,
subdivision 4 to extend the Hennepin County authority
to levy additional mortgage registry and deed taxes by
15 years to Jan. 1, 2028. Effective for all deeds and mortgages
acknowledged on or after July 1, 2013.
• Special service district authorization extended.
Section 30 amends Minn. Stat. § 428A.101 to extend
city authority to establish new special service districts
without special authorization by 15 years to June 30,
2028. Effective May 24, 2013.
• Housing improvement district authorization
extended. Section 31 amends Minn. Stat § 428A.21 to
extend city authority to establish new housing improvement districts without special authorization by 15 years
to June 30, 2028. Effective May 24, 2013.
• Bloomington fiscal disparities repayment computation. Section 32 amends Minn. Stat § 473F.08,
subdivision 3a to relieve Bloomington of its obligation
to repay a loan it received from the metropolitan fiscal
disparities pool for infrastructure improvements related
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to the Mall of America in the late 1980s and 1990s. This
provision relieves the City of the last four years of repayment, 2015-2018. The state will make the extra payments to the pool for those four years. Effective beginning
with taxes payable in 2015.
• Cook-Orr Hospital District. Section 33 amends Laws
1988, chapter 645, section 3, as amended most recently by
Laws 2008, chapter 154, article 2, section 30, to allow the
Cook-Orr Hospital District levy to be used to purchase
equipment, parts, and replacement parts for ambulances,
in addition to the existing authority to purchase ambulances. The proceeds of the levy must be divided equally
between the Cook and Orr ambulance services. Effective
July 1, 2013.
• Northwest Minnesota Housing and Redevelopment Authority levy authority. Section 35 amends
Laws 2008, chapter 366, article 5, section 33, (the effective date) to extend the authority of the Northwest
Minnesota Multicounty Housing and Redevelopment
Authority to levy up to 25 percent of its total levy
authority on its own by five years, through taxes payable
in 2018. Effective beginning with taxes payable in 2014.
• Cloquet area fire and ambulance taxing district
agreement. Section 36 amends Laws 2009, chapter 88,
article 2, section 46, subdivision 1 to allow municipalities
that are non-contiguous to current member-municipalities to join the district. Effective July 1, 2013.
• Cloquet area fire and ambulance taxing district
tax. Section 37 amends Laws 2009, chapter 88, article 2,
section 46, subdivision 3 to require the district board to
determine the amount of the levy attributable to fire and
ambulance services. Costs of ambulance services shall be
levied at a rate not to exceed 0.019 percent of estimated
market value and for municipalities that receive both fire
and ambulance services the levy shall be at a rate not to
exceed 0.2835 percent. Effective July 1, 2013.
• Marshall County farm homesteads. Section 38
amends Laws 2010, chapter 389, article 1, section 12,
(the effective date) to allow farmers in Marshall County
who were forced to move away from their farms due
to flooding in 2009 to continue to receive agricultural
homestead classification on the farmland indefinitely,
provided they continue to reside in Minnesota within 50
miles of the land. This provision was originally adopted
in 2010 on a temporary (two-year) basis. Effective for
assessment year 2012 and thereafter.
• Entertainment facilities coordination study. Section 39 is an uncodified session law that requires the
cities of Minneapolis and St. Paul to report to the Legislature by Feb. 1, 2014, their study of providing a joint
governing structure for the arenas in the two cities. This
section also requires the commissioner of administration
to contract with a consultant to conduct all or a portion
of the study, requires the two cities to each pay onehalf of the cost of the study, and provides a general fund
appropriation of $50,000 to the commissioner of administration to pay up to one-half of the cost of the consultant contract. Effective May 24, 2013.
• Reimbursement for tax abatements. Section 40
amends Laws 2011, First Special Session chapter 7, article 5, section 13 to require the commissioner of revenue
to reimburse taxing jurisdictions for property tax abatements granted because of a tornado that damaged parts
of Minneapolis and other parts of the northern metro
area in 2011. The state authorized these abatements
including state reimbursements in the 2011 tax bill, but
Hennepin County’s request for reimbursements was submitted after the deadline in the legislation. Effective May
24, 2013.
• St. Paul Saints stadium property tax exemption.
Section 41 is an uncodified session law that grants a
property tax exemption for a city-owned baseball stadium primarily used by a minor league team. The stadium remains subject to special assessments. Effective the
day after compliance by the governing body of the City of St.
Paul with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
• Target Center property tax exemption. Section
42 is an uncodified session law that provides a property tax exemption for the Target Center. The exemption does not apply to any portion of the facility leased
for business purposes unrelated to the operation of the
arena, including a restaurant open more than 200 days a
year. Effective the day after compliance by the governing body
of the City of Minneapolis with Minnesota Statutes, section
645.021, subds 2 and 3.
• Public entertainment facility; construction manager at risk. Section 43 is an uncodified session law
that allows the City of Minneapolis to contract with
persons, firms, or corporations to perform projects to
renovate, refurbish and remodel the Target Center under
either the traditional design-bid-build or construction
manager at risk, or a combination thereof. Effective the
day after compliance by the governing body of the City of Minneapolis with Minnesota Statutes, section 645.021, subds 2
and 3.
• Extension of property tax due date for resorts.
Section 44 is an uncodified session law that extends the
time resort owners and other seasonal business owners
have to pay their first half property taxes by two weeks,
from May 31 to June 14, for taxes payable in 2013 only.
• Report on tier structure for 4d class (low-income
rental housing). Section 45 is an uncodified session
law that requires the commissioners of revenue and the
housing finance agency to report to the Legislature by
Jan. 31, 2015, on the effect of the changes to the class 4d
(low-income rental housing) tier structure found in section 18 above. Effective July 1, 2013.
2013 Law Summaries
• Study and report on production property; moratorium on assessment changes. Section 46 is an
uncodified session law that requires the commissioner
of revenue to study the assessment of property used in
the production of biofuels and other industries that use
similar types of equipment, and report the findings of
the study to the Legislature by Feb. 1, 2014. This section
also prohibits assessors from changing current assessment
practices with regard to the taxable status of property
used in the production of biofuels and other industries
that use similar types of equipment, for taxes payable in
2014 and 2015 only. Effective July 1, 2013.
• Property tax savings report. Section 47 is an uncodified session law that requires all counties and each city
with a population over 500 to include along with its
certification of its proposed levy, the amount of sales and
use tax paid or estimated to have been paid in 2012. This
section also requires the proposed tax notice to include
a separate statement providing a list of sales and use taxes
certified by the county and cities. At the fall public tax
hearing, the county or the city must discuss the savings
as a result of the sales tax exemption for cities and counties provided in Article 8 of Chapter 143. Effective for
notices for taxes payable in 2014 only. Effective May 24,
2013, for taxes levied in 2013 and payable in 2014.
• Levy limits for taxes levied in 2013. Section 48 is
an uncodified session law that establishes a levy limit for
taxes payable in 2014 only for all counties over 5,000
population and all cities over 2,500 population. The
levy limit base is the certified levy minus allowable special levies (generally for debt service, natural disasters
and abatements) plus the certified LGA for taxes payable in 2012 or 2013, whichever is greater, increased by
3 percent. The levy limit is the levy limit base minus the
certified LGA for 2014. In no case may the levy limit be
less than the certified levy for taxes payable in 2012 or
2013, whichever is greater. In addition to the allowable
levy limit, cities can additionally levy for allowable special levies (generally for debt service, natural disasters and
abatements and levies approved by voters that are applied
to referendum market value). For more information on
the levy limit, please see Appendix A. (Note: The allowable special levies were amended in the corrections bill,
Chapter 144, section 18.) Effective for taxes levied in 2013,
payable in 2014, only.
• City of Moose Lake state facility grant. Section 49
is an uncodified session law that appropriates $2 million in FY 2014 for a grant to the City of Moose Lake
for reimbursement for payments related to connection of
state facilities to a sewer line. Effective July 1, 2013.
Article 5: Special taxes
This article makes changes in various special taxes including. Article 5 modifies and increases to tobacco taxes;
repeals the health impact fee and fund and replaces it with
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an increase in the regular tobacco excise tax; makes changes
to the taxes imposed on jet fuels as well as aircraft in lieu
taxes; and directs that some of the revenues raised under the
jet fuel provisions are deposited into the state airports fund.
• Revenues from aircraft sales deposited in state
airports fund. Section 5 amends Minn. Stat. § 297A.82
to require that any tax collected from the sale or purchase of an aircraft taxable under chapter 297A is to be
deposited in the state airports fund established in Minn.
Stat. § 360.017. These funds, estimated to be $2.9 million
per year, were previously deposited in the state general
fund. Effective on July 1, 2014 and applied to sales and purchases made on or after that date.
• Lawful gambling-raffle drawings without
registering. Section 21 amends Minn. Stat. § 349.166,
subd. 1 to expand the ability for organizations to
conduct raffle drawings without registering with the
Minnesota Gambling Control Board. Under current
law, an organization does not need to register if the
organization does not annually award more than $1,500
in prizes. Under this section, the registration exclusion is
expanded to allow a 501(c)(3) organization to conduct
a raffle without registering if the organization does not
award more than $5,000 at an event in the calendar year.
Article 6: Individual income and corporate franchise taxes
• Greater Minnesota internship program. Sections 4
adds a new section, Minn. Stat. § 136A.129, and Section 12 amends Minn. Stat. § 290.06, to establish an
internship program for students at Minnesota public,
post-secondary institutions, or a baccalaureate degree
granting nonprofit Minnesota institution, to be administered by the Office of Higher Education. The goal of
the program is to connect students with non-metro area
Minnesota employers for permanent employment in
Greater Minnesota. The internship must be at a place of
employment in Greater Minnesota (outside of the counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti,
Ramsey, Scott, Sherburne, Washington, and Wright).
Employers are eligible for an income tax credit. Effective
for taxable years beginning after Dec. 31, 2013.
• Historic structure rehabilitation credit. Sections 17
through 20 and Section 32 extend the historic structure
rehabilitation credit sunset and makes various changes to
the program:
• Section 16 amends Minn. Stat § 290.0681, subd.1,
defining “federal credit” as the federal historic structure rehabilitation credit, and the terms “placed in
service” and “qualified rehabilitation expenditures,”
to have the meanings given in the Internal Revenue
Code for the federal credit. Effective the day following
final enactment.
• Section 17 amends Minn. Stat. § 290.0681, subd. 3
to authorize the State Historic Preservation Office
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(SHPO) of the Minnesota Historical Society to
collect up to 0.5 percent of estimated qualified
rehabilitation expenditures, up to a maximum of
$40,000, as an application fee for a project. Prior
to this change, the law limited the application fee,
which is used to offset the costs of administering the
credit and preparing reports, to $5,000. This section
also requires the SHPO to notify the developer in
writing if a project is eligible for a credit. This section
allows determinations of the SHPO regarding project
eligibility for the historic credit to be appealed
through a contested case procedure under Minn. Stat.
ch. 14, within 45 days of the written notification.
Effective the day following final enactment, except the fee
increase applies to applications first received on or after the
day following final enactment.
to allow grant agreements to provide for grants to
be issued to an individual or entity other than the
developer. This section also requires entities that are
assigned a credit certificate to notify the commissioner within 30 days of being assigned a credit, in a
form and manner prescribed by the commissioner, and
clarifies that the pass-through of credits to owners of a
pass-through entity are not considered credit assignments. Effective May 24, 2013.
to allow entities with multiple owners to allocate the
credit among owners based on an “executed agreement.” Current law allows allocation of the credit
either based on the ownership of the entity’s assets, or
as specified in the entity’s organizational documents.
• Section 20 amends Minn. Stat. § 290.0681, subd. 10 to
extend the availability of the historic structure rehabilitation credit from June 30, 2015 to June 30, 2021.
• Section 32 amends Laws 2010, chapter 216, section
11 (the effective date), to make the credit effective for
rehabilitation expenditures first paid by the developer or taxpayer after May 1, 2010, and for rehabilitation that occurs after May 1, 2010, provided that the
application submitted for credit eligibility is submitted
before the project is placed in service. Effective May 24,
2013, and applies retroactively for certified historic structures
placed in service after May 1, 2010, but no credit certificates
allowed under the change to this effective date clarification
may be issued until July 1, 2013.
Article 8: Sales and use tax; local sales taxes
• Sales tax exemption for qualified Greater Minnesota business expansions. Section 1 adds a new
section, Minn. Stat. § 116J.3738, and Section 28 adds a
new subdivision, Minn. Stat. § 297A.68, Subd. 49, that
together provide for a sales tax exemption for qualify-
ing Greater Minnesota businesses. A qualified business is
defines as a business that:
• Has operated in Greater Minnesota for at least one
year before applying for certification;
• Pays or agrees to pay its employees compensation of at
least 120 percent of the federal poverty line for a family four not including benefits mandated by law;
• Plans and agrees to expand its employment in Greater
Minnesota by a minimum number of employees; and
• Receives qualification from the commissioner of
Department of Employment and Economic Development (DEED) as a qualified business.
Public utilities and retail employers that are primarily engaged in selling to purchasers physically present at
the business’s location are ineligible.
The business must apply to the commissioner of
DEED for certification as a qualified business. A copy of
the application must also be filed with the chief clerical officer of the city, or the county auditor if located
outside a city. DEED must determine that the business
would not expand its operations in Greater Minnesota
without the sales tax exemption and the business must
enter into a business subsidy agreement with DEED that
will satisfy minimum expansion requirements within
three years of execution of the agreement. The city or
county in which a business or agricultural processing
facility proposes to expand may file support or opposition to the certification with DEED. Certification is
valid for 12 years beginning the first day of the calendar month following execution of the business subsidy
agreement. The minimum expansion requirements, based
on the number of employees in Greater Minnesota at
the time of execution of the agreement, are:
• 50 or fewer FTEs: must increase by five or more FTEs.
• 51-199 FTEs: must increase FTEs by at least 10 percent.
• 200 or more FTEs: must increase by at least 21 FTEs.
The certified businesses must meet the minimum
expansion requirements within three years of entering
the business subsidy agreement and continue to satisfy
the requirements for the duration of the certification
period. A business would cease to be a qualified business
at the end of its certification period or the date the commissioner finds that the business failed to meet its minimum expansion requirements. The commissioner may
waive a breach of the certification agreement after consulting with the commissioner of revenue if the breach is
the result of natural disaster, unforeseen industry trends,
an overall decline in the statewide or Greater Minnesota
economy, or the loss of a major supplier or customer.
Section 28 provides an upfront sales tax exemption
for purchases of tangible personal property and taxable
services purchased by a qualified business if the exemption is provided for in the business subsidy agreement
under Section 1 above. The property or services must
be primarily used or consumed in Greater Minnesota
2013 Law Summaries
and the purchase must have been made, and delivery
received, during the certification period.
Purchase and use of construction materials used or
consumed in, and equipment incorporated into, the construction of improvements to real property in Greater
Minnesota are exempt if the improvements are used
in the conduct of the trade or business of the qualified
business. The exemption applies for state and local sales
and use taxes. The allocations to all qualifying businesses
may not exceed $7 million in a fiscal year, but any qualifying claims not paid in one year are available in subsequent years. Unused amounts may be carried forward
and used for refunds in future years. Section 1 is effective
May 24, 2013, and Section 28 is effective for sales and purchases made after June 30, 2014.
• Definition of retail sale. Section 3 amends Minn.
Stat § 297A.61, subd. 4 to clarify that payments made
to electric utilities and cooperatives as a contribution in
aid of construction is a contract for improvement to real
property and not a taxable sale. Effective for sales, purchases,
and leases entered after June 30, 2013.
• Sales tax collection responsibility for retailer not
maintaining place of business in Minnesota. Section 18 amends Minn. Stat. § 297A.66, subd. 3 to clarify
that a remote seller must collect and remit the state sales
tax in accordance with any federal remote seller law. If
the Main Street Fairness Act now before Congress is
enacted into law, this change will allow Minnesota to
impose the duty to collect the sales tax on remote sellers.
• Solicitor nexus. Section 19 adds a subdivision to
Minn. Stat. § 297A.66, subd. 4a, that provides a definition of “solicitor,” which includes residents in the state
who directly or indirectly refer potential customers to a
seller through website or similar link for a commission
or other consideration.
The presumption is that a retailer without a physical presence in Minnesota has nexus if the total receipts
of sales to Minnesota customers generated by Internet
referrals made through websites operated by Minnesota
residents exceed $10,000 in the last 12-month period. A
rebuttal process to this presumption is provided. Effective
for sales and purchases made after June 30, 2013.
• Capital equipment up-front exemption. Section
26 amends Minn. Stat. § 297A.68, subd. 5 to eliminate
the requirement that the sales tax on capital equipment
purchases be paid at the time of purchase and refunded
as provided in statute. Effective for sales and purchases made
after Aug. 31, 2014.
• Qualified data centers. Section 27 amends Minn. Stat.
§ 297A.68, subd. 42 to modify the sales tax exemption
for data centers by adding “refurbished data centers” and
modifying the qualifications as follows:
• Reduces the investment requirement from $50 million in
24-month period to $30 million in a 48-month period.
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• Reduces the minimum square footage requirement of
the building housing the data center from 30,000 to
25,000 square feet.
• Reduces the amount of space that must be “substantially refurbished” for building the data center from
30,000 square feet to 25,000 square feet.
• Defines “substantially refurbished” to retain the
requirement of $50 million in investment within 24
months.
• Specifies that “computer software” included in calculating investment includes the maintenance, licensing,
and customization of the software.
Effective for sales and purchases made after June 30, 2013.
• City and county exemption from the state sales
tax. Section 29 amends Minn. Stat. § 297A.70, subd. 2
to add cities and counties to the list of purchasers eligible for a sales tax exemption on qualifying purchases.
Purchases by cities, counties, and townships were subjected to the state sales tax beginning in 1992. Townships
were exempted under a change enacted in 2011. This
provision does not exempt purchases of goods or services
used as inputs to goods and services generally provided
by a private business, such as those provided by liquor
stores, utilities, golf courses, marinas, health and fitness
centers, campgrounds, cafes, and laundromats. Goods
and services generally provided by a private business do
not include housing services, sewer and water services,
wastewater treatment, ambulance and other public safety
services, correctional services, core or homemaking services provided to elderly or disabled individuals, or road
and street maintenance or lighting. Effective for sales and
purchases made after Dec. 31, 2013.
• Nursing homes and boarding care homes. Section
36 amends Minn. Stat. § 297A.70 to provide a sales tax
exemption for most purchases by a nursing home or a
boarding care facility. To qualify:
• The nursing home must be licensed by the state, and
the boarding care home must be certified as a nursing
facility under federal law.
• Be an exempt 501(c)(3) entity.
• Either be certified to participate in the medical assistance program, or certify to the commissioner of revenue that it does not discharge residents due to inability
to pay.
The exemption does not apply to certain construction materials, lodging, prepared food and drink, and
leased vehicles not used to transport residents and property to the facility. Effective for sales made after June 30,
2013.
• Biopharmaceutical manufacturing facility sales
tax exemption. Section 37 adds a subdivision to Minn.
Stat. § 297A.71, subd. 45 to provide a sales tax exemption for materials, supplies, and capital equipment incorporated into construction, improvement, or expansion of
Page 56
a biopharmaceutical manufacturing facility if the facility
meets the following conditions:
• It manufactures biologics.
• It makes a total capital investment of at least $50 million.
• The facility creates and maintains 190 new FTE
employees in the state.
• The Department of Employment and Economic
Development determines that the project meets
these requirement in each year in which a refund is
requested.
The known qualifying project is related to a business
location in the City of Brooklyn Park. The exemption
also applies to materials used in privately owned infrastructure needed to support the facility. The tax is owed
at the time of purchase, and the owner of the facility
may apply for a refund. The refund is metered out so that
25 percent of the total allowable refund to date is paid
annually. Effective retroactively to investments entered into and
jobs created after Dec. 31, 2012, and before July 1, 2019.
• Research and development facility sales tax
exemption. Section 38 adds a subdivision to Minn. Stat.
§ 297A.71, subd 46 to exempt materials and supplies
used or consumed in, and equipment incorporated into,
the construction or improvement of a qualifying research
and development facility. The facility must have laboratory space of at least 400,000 square feet, utilize high
and low-intensity laboratories, and have a total construction cost of at least $140 million in a 24-month period.
The known qualifying project is related to a business in
Maplewood. Effective for sales and purchases made after June
30, 2013 and before Sept. 1, 2015.
• Industrial measurement manufacturing and controls facility. Section 39 adds a subdivision to Minn.
Stat. § 297A.71, subd 47 to provide a sales tax exemption
for materials, supplies, capital equipment, and fixtures in
construction, improvement, or expansion of an industrial
measurement manufacturing and controls facility if the
facility meets the following conditions:
• Total capital investment of at least $60 million.
• Employs 250 new FTE employees in the state.
• The Department of Employment and Economic
Development determines that the project has a significant impact on the state economy.
The exemption also applies to materials used in
privately owned infrastructure needed to support the
facility. The tax is owed at the time of purchase and the
owner of the facility may apply for a refund. The known
qualifying project is related to a business in Shakopee.
Effective for sales and purchases after June 30, 2013.
• Tax collected and refunds for specific projects.
Sections 40 and 41 amend Minn. Stat. § 297A.75, subd. 1
and Minn. Stat.§ 297A.75, subdivision 2 to provide that
the purchasers of construction materials and equipment
granted an exemption under sections 37 to 39 above
may pay the tax and apply for a refund of sales taxes paid.
Section 40 is effective for sales and purchases made after June
30, 2013. Section 41 is effective May 24, 2013.
• Application for refund for specific projects. Section 42 amends Minn. Stat. § 297A.75, subd. 3 to provide that subcontractors and contractors must provide
information to the facility owner on taxes paid on
construction materials exempt under Sections 37 to 39
above to allow the owners to apply for a refund. The
owner of the biopharmaceutical manufacturing facility
under section 37 may not apply for a refund until after
June 30, 2016, and may only file one refund application per year. Also updates a cross reference related to
the repeal of the capital equipment sales tax collection
requirement. Effective May 24, 2013.
• Local sales tax referenda; authorized expenditures. Section 43 amends Minn. Stat. § 297A.99, subd.
1 to authorize political subdivisions to expend funds
to disseminate information included in a city council
resolution adopting the imposition of a local sales tax;
provide notice of and conduct forums for expression of
public opinion on the referendum; and provide facts and
data on the impact of a proposed sales tax and on the
programs and projects that are proposed to be funded
with the local sales tax. Effective May 24, 2013.
• St. Paul use of sales tax revenues. Section 44 amends
Laws 1993, ch. 375, art. 9, sec. 46, subd. 2, (as amended
most recently by Laws 2009, ch. 88, art. 4, sec. 15) to
allow the City of St. Paul to deposit into an economic
development fund any portion of the 40 percent of its
sales tax revenue dedicated to the St. Paul Civic Center
Complex not needed for meeting civic center obligations. Effective the day after compliance by the governing body
of the City of St. Paul with Minn. Stat.§ 645.021, subds 2
and 3.
• St. Paul extension of expiration of tax authority. Section 45 amends Laws 1993, ch. 375, art. 9, sec. 46,
subd. 5, as amended by Laws 1998, ch. 389, art. 8, sec. 32
to extend the authority for the St. Paul local sales tax to
Dec. 31, 2042. The tax is currently set to expire on Dec.
31, 2030. Effective the day after compliance by the governing body of the City of St. Paul with Minn. Stat.§ 645.021,
subds 2 and 3.
• Rochester lodging tax. Section 46 Laws 2002, ch.
377, art. 3, sec. 25, as amended by Laws 2009, ch. 88, art.
4, sec. 19, and Laws 2010, ch. 389, art. 5, sec. 3 modifies
the Rochester lodging tax as follows:
• Increases the allowed rate of the lodging tax imposed
to fund construction, renovation, improvement, and
expansion of the Mayo Civic Center Complex from 1
percent to 3 percent.
• Adds design costs to the allowed uses for the lodging
tax proceeds.
• Increases the authority to issue bonds for this project
from $43.5 million to $50 million.
2013 Law Summaries
• Removes the requirement that the tax in subdivision
1a expires when the proceeds are sufficient to pay the
bonds in subdivision 2a; however, it allows the city to
choose to repeal the tax any time after that time.
Effective the day after the governing body of the City of Rochester and its chief fiscal officer comply with Minn. Stat.§
645.021, subdivisions 2 and 3.
• Central Minnesota cities; use of sales tax revenues
and termination of tax. Section 47 amends Laws
2005, First Special Session chapter 3, article 5, section 37,
subdivision 2 to modify one of the existing allowed uses
of the sales tax in the City of St. Cloud to limit funding to regional community and aquatic centers. Section
48 amends Laws 2005, First Special Session chapter 3,
article 5, section 37, subdivision 4 to allow each city (St.
Joseph, Sartell, Waite Park, Sauk Rapids, and St. Augusta)
to extend the tax in its community from 2018 to 2038,
provided the extension is approved by the voters no later
than Nov. 7, 2017, at either a general election or a special
election held on the first Tuesday after the First Monday
of a November. The vote must still list the projects to be
funded from the tax extension but the tax does not have
to expire for one year before being re-imposed. Both
sections are effective for the city that approves them the day
after compliance by the governing body of each city with Minn.
Stat.§ 645.021, subdivisions 2 and 3.
• Clearwater; use of sales tax revenues. Section 49
subdivision 3, as amended by Laws 2011, First Special
Session chapter 7, article 4, section 8 to provide a specific list of park and trail improvements that the City
of Clearwater may fund with its local sales tax. The $12
million total amount of revenue that the city was permitted to raise from the sales tax remains the same as it
was in the original 2008 authorizing legislation. Effective
the day after compliance by the governing body of the City of
Clearwater with Minn. Stat.§ 645.021, subdivisions 2 and 3.
• Marshall; use of food and beverage tax and validation of prior act. Section 50 amends Laws 2010, chapter 389, article 5, section 6, subdivision 6 to allow the
City of Marshall to use proceeds of this tax for construction of the Minnesota Emergency Response and Training Center and the Southwest Amateur Sports Center,
as well as for their ongoing maintenance costs. Section
51 gives the City of Marshall until July 1, 2013, to file
its approval of the special laws authorizing the food and
beverage and lodging taxes originally enacted in 2010.
Both sections are effective May 24, 2013.
• City of Proctor; validation of prior act. Section 52
allows the City of Proctor to approve the extended uses
and additional bond authority authorized under 2008
and 2010 special law by passing a resolution and filing the
approval with the secretary of state by Jan. 1, 2014. The
additional bonding authority in the 2010 law was already
approved by the city voters. Effective May 24, 2013.
Page 57
Article 9: Economic development
• Bloomington Port Authority public bidding
requirement. Section 1 amends Minn. Stat. § 469.071,
subd. 5 to modify the Bloomington Port Authority’s
special law exception to the general competitive bidding requirements. Under present law, this exception is
limited to structured parking constructed above, below,
or adjacent to the development. The section expands
the exemption to apply regardless of the source of port
authority funds used (present law is limited to TIF
and revenue bonds) and to extend it to other public
improvements in addition to structured parking. Effective upon compliance of the governing body of the City of
Bloomington with the requirements of Minn. Stat.§ 645.021,
subdivisions 2 and 3.
• Border city funding. Section 2 amends Minn. Stat. §
469.169 to allocate $1.5 million for border city enterprise zone and border city development zone tax reductions. This allocation is divided equally between the
two programs, but the city can reallocate the amounts
between the two programs. The allocation is divided
among the qualifying border cities on a per capita basis.
The five cities that qualify are Moorhead, Dilworth, East
Grand Forks, Breckenridge, and Ortonville. Effective July
1, 2013.
• TIF economic development districts. Section 3
amends Minn. Stat. § 469.176, subd. 4c to eliminate
obsolete language related to qualified border retail facilities as well as the temporary 2010 jobs bill exemptions.
(Note: Although the Senate tax bill extended the 2010
jobs flexibilities for two additional years, the final bill did
not include the extension.) Effective for districts for which
the request for certification was made after June 30, 2012.
• TIF general government use. Section 4 amends
Minn. Stat. § 469.176, subdivision 4g to eliminate the
prohibition on using tax increments for improvements
and equipment that either primarily serve a decorative
or aesthetic purpose or have costs twice as high because
of the selection of the types of materials or designs
compared with more commonly used improvements or
equipment. Effective May 24, 2013, for all tax increment
financing districts, regardless of when the request for certification
was made, but applies only to amounts spent after final enactment.
• TIF four-year rule. Section 5 amends Minn. Stat. §
469.176, subd. 6 to extend through Dec. 31, 2016, the
temporary two-year extension of the four-year rule that
applies to TIF districts certified between Jan. 1, 2005,
and April 20, 2009. Effective May 24, 2013, and applies to
districts certified on or after Jan. 1, 2005, and before April 20,
2009.
• TIF original local tax rate; general education levy.
Section 6 amends Minn. Stat. § 469.177, subd. 1a to
exclude the tax rate attributable to the reinstated general education levy from the certified original TIF tax
Page 58
rate. This change will prevent the general education tax,
authorized under Session Laws 2013, Chapter 116, from
applying to the captured tax capacity and from generating tax increment. Effective for districts for which the request
for certification is made after April 15, 2013.
• TIF Adjustment to original net tax capacity. Sections 7 adds a subdivision to Minn. Stat. § 469.177, subd.
1d, to authorize development authorities to elect to
reduce the original net tax capacity of a qualifying TIF
district to adjust for the effects the homestead market
value exclusion (HMVE). The HMVE had the effect
of reducing the amount of increment in districts with
qualifying homestead property. Under this new law, the
development authority can elect to reduce a qualifying
district’s original tax capacity which will have the effect
of increasing captured tax capacity and the amount of
tax increment for the district.
The election must be approved by the municipality, which is typically the city in which the TIF district
is located. The election is limited to districts that have
a large loss in captured tax capacity as a result of enactment of the HMVE. To qualify for the election, a district
must satisfy three criteria:
(1) The district received a homestead market value
credit of $10,000 or more for taxes payable in
2011 (the last year before the credit was replaced
by the HMVE).
(2) The captured net tax capacity of the district must
have dropped by at least 1.75 percent as a result
of the HMVE for taxes payable in 2013 (the most
recently available year).
(3) Either the district’s five-year rule must still be
open (i.e., the increments are still permitted to be
spent) or the district must not have enough increment to pay its outstanding bonds.
For a qualifying district, the subtraction will equal
the reduction in net tax capacity of the TIF district
that results from the HMVE for taxes payable in 2013.
The subtraction cannot reduce original net tax capacity below zero. An election must be made before July 1,
2014. For an election to apply for taxes payable in 2014,
it must be made by July 1, 2013. Effective May 24, 2013,
and applies to all tax increment financing districts regardless of
when the request for certification was made.
• Adjustment to original TIF net tax capacity;
qualifying 4d class (low-income rental housing)
districts. Section 8 adds a subdivision to Minn. Stat. §
469.177, Subd. 1e, to provide for a reduction in original net tax capacity for qualifying TIF districts of up
to $20,000. Reductions in original tax capacity under
this provision have the effect of increasing captured tax
capacity and the amount of tax increment for the district. To qualify for the reduction, the district must have
been certified in calendar year 2011 and have 75 percent
of its value in class 4d apartment property apartment
property and have a per unit market value of at least
$115,000. The adjustment expires for property taxes payable in 2021. Effective beginning for taxes payable in 2014.
• Distributions of general education levy taxes. Section 9 amends Minn. Stat. § 469.177, subdivision 9 to
provide that the taxes paid by captured tax capacity of
TIF districts that are attributable to the new general
education levy authorized under Laws 2013, Chapter 143, Article 3, will be paid to the school district that
imposed the levy. Effective for districts for which the request
for certification is made after April 15, 2013.
• Mall of America (MOA) fiscal disparities calculations. Section 10 adds a new subdivision to Minn. Stat.
§ 473F.08, Subd 3c, to provide that commercial-industrial tax capacity in the MOA TIF districts is exempt
from contributing to the area-wide pool and that tax
increments in the MOA TIF districts include the tax that
would normally be paid to the area-wide pool. Effective
for taxes payable in 2014, after Bloomington certifies to the
Hennepin County auditor that the city has entered a binding,
written agreement to rehabilitate or replace the Old Cedar Avenue bridge, and approves the provisions of section 23 requiring
the city to transfer increments from these districts to pay for the
Old Cedar Avenue bridge.
• Bloomington Central Station (BCS) TIF. Section 11
amends Laws 2008, chapter 366, article 5, section 26 to
make three changes in Bloomington’s BCS TIF district:
(a) E
xtends the five-year rule (previously extended to
ten years under 2008 special legislation) to 15 years.
(b) Allows the city to extend the duration of the district through 2039 (an eight-year extension).
(c) U
nfreezes the original tax capacity rate, allowing the district’s increment to be calculated using
the current tax rate, not the rate that was in effect
when the district was certified.
Bullet points (a) and (c) are effective upon compliance by
Bloomington with the requirements of Minn. Stat. § 645.021,
subdivision 3. Bullet point (b) is effective upon compliance
by the governing bodies of the City of Bloomington, Hennepin County, and Independent School District No. 271 with
the requirements of Minn. Stat. §§ 469.1782, subd. 2, and
645.021, subd. 3.
• Oakdale TIF. Section 12 amends Laws 2008, chapter
366, article 5, section 34 to modify the special TIF law
for the City of Oakdale, passed in 2008 and modified in
2009, granting the city authority to deviate from general
law with regard to TIF districts created in a defined area
of the city. This provision makes two changes in the special law authority:
• The period of time that the city has to establish TIF
districts under the special law is extended by four years
from 2013 to 2017.
• An exemption is provided to the general “blight test”
rules. The blight test (essentially a requirement that an
area contain “blighting” conditions that legally justify
2013 Law Summaries
creating a redevelopment TIF district) requires that 70
percent of the parcels in an area be occupied by buildings or other qualifying structures and that 50 percent
of the buildings be substandard. A parcel can be treated
as being occupied by a substandard building if the parcel was occupied by a substandard building that was
demolished within three years of certification of the
district and if a four-part test is satisfied. The bill provides special rules for meeting this four-part test:
·· The three-year time limit between demolition of
the building and the certification of the district does
not apply.
·· The requirement that private demolition (if done
by the property owner rather than the development
authority) be done under a development agreement
does not apply.
The adjustment to original net tax capacity (increasing it for any reduction in tax capacity resulting from
demolition of the building) does not apply. This is consistent with the original special law, which allowed the
city to set the original tax capacity at the land value.
Effective upon compliance by the governing body of the City
of Oakdale with the requirements of Minn. Stat. § 645.021,
subd. 3, except that the provisions of paragraph (c) are effective
only upon compliance with Minn. Stat. § 469.1782, subd. 2,
by the county and school district.
• Oakdale TIF; extension and expanded spending
authority. Section 13 amends Laws 2010, chapter 216,
sec. 55 to extend the duration of the Bergen Plaza TIF
district in Oakdale by 16 years. In 2010, the Legislature
granted this district a 10-year extension, so the combined extensions would equal 26 years. This section also
repeals the restrictions the 2010 special legislation placed
on the extension. The 2010 legislation prohibited pooling of increments from the district during the extension,
except to the extent that they were used for improvements on two listed parcels. (Pooling refers to the spending of increments from the district on activities outside
of the geographic area of the district. This district is a
pre-1990 district that would otherwise not have been
subject to pooling restrictions.) Under the changes made
by this section, this restriction would not apply, allowing
the city to use the district’s increments on activities anywhere in the project area. Effective upon compliance by the
governing body of the City of Oakdale with the requirements
of Minn. Stat. § 645.021, subd. 3, except that the provisions
of paragraph (c) are effective only upon compliance with Minn.
Stat. § 469.1782, subd. 2, by the county and school district.
• St. Cloud TIF. Section 14 is an uncodified session law
that deems TIF District No. 2, referred to as the Norwest
District, in the City of St. Cloud, a “gap district”—a
district for which the request for certification was made
on or after Aug. 1, 1979, and before July 1, 1982. This
will clarify when the district was certified and what TIF
rules apply to it. “Gap districts” were created before the
Page 59
1982 Legislature allowed pooling of increments for new
TIF districts. Effective upon approval by the governing body
of the City of St. Cloud and compliance with Minn. Stat. §
645.021, subd. 3.
• Glencoe TIF extension. Section 15 is an uncodified session law that authorizes the City of Glencoe to
extend the duration of its TIF district No. 4 through
Dec. 31, 2023. This district is a redevelopment district
that is required by general law to be decertified in 2013.
The additional increment collected during the extension
would be limited to paying debt service on bonds that
were outstanding on Jan. 1, 2013, for public improvements serving:
• The city’s TIF district No. 14 (a redevelopment district
certified in 2004);
• The city’s TIF district No. 15 (an economic development district certified in 2007); and
• Benefited properties related to a series of special assessment bonds issued in 2007 (or refunding bonds).
Effective upon compliance by the governing bodies of the cities
of Glencoe, McLeod County, and Independent School District
No. 2859 with the requirements of Minn. Stat. §§ 469.1782,
subd. 2, and 645.021, subd. 3.
• Ely TIF extension. Section 16 is an uncodified session
law that allows the City of Ely to extend the duration of
its TIF district No. 1 from 2017 to 2021. The city is also
permitted to transfer increments from TIF District No.
3 to pay binding obligations of the TIF District No. 1,
which has a deficit. This transfer is limited to $168,000
or the amount of the shortfall in District No. 1, whichever is less. Effective upon approval by the governing bodies
of the cities of Ely, St. Louis County, and Independent School
District No. 696 with the requirements of Minn. Stat. §§
469.1782, subd. 2, and 645.021, subd. 3.
• Dakota County Community Development Agency
(CDA) TIF district in West St. Paul. Section 17 is an
uncodified session law that allows the Dakota County
Community Development Agency (CDA) to establish a redevelopment TIF district in the City of West St.
Paul, consisting of the parcels of a redevelopment district
decertified in 2012. The district is treated as a redevelopment district, but it must be decertified in 2023. Under
general law, a redevelopment district is allowed 26 years
of increment, as contrasted with the five years allowed
to this district. This district would be exempt from the
blight test (i.e., the rules that restrict areas that qualify as
redevelopment districts) and is provided exemptions for
the following limits on the spending of redevelopment
district increments:
• The requirement that increments be used for blight
correction does not apply.
• The pooling rules (percentage limits on how much
increment may be spent on activities outside of the
TIF district) do not apply.
Page 60
The district’s captured tax capacity is included for
computing state aid formulas (e.g., local government
aid, county program aid, education aid, and so forth).
Effective upon compliance by the governing body of the Dakota
County Community Development Agency with the requirements of Minn. Stat. § 645.021, subd. 3.
• City of Apple Valley TIF authority. Section 18 is an
uncodified session law that grants special law authority to the City of Apple Valley to create TIF districts
(until Dec. 31, 2022) under special rules in a defined
area of the city. The city must find that 70 percent of the
defined area has one or more of the following conditions:
• Peat or other geotechnical difficulties with the soil
that “impair” the ability to develop the parcel.
• Substantial fill required for commercial development.
• Landfills, dumps, or similar conditions.
• Quarries (e.g., gravel pits) or similar resource extraction sites.
• Floodway.
• Substandard building(s), as defined under the TIF
blight test under general law, on the parcel.
A parcel is treated as wholly meeting a requirement
if 70 percent of its area meets the requirement, except
that a 30-percent test applies for the substandard building requirement.
The following exceptions to general TIF rules
would apply to new districts created in the defined area.
Any type of TIF district, except an economic development district or housing district, could be created in the
area and qualify for these special rules.
• A new type of TIF district—a soils deficiency district—with special qualifying rules would be allowed.
This authority roughly mirrors a similar type of district that existed under an old TIF law, which was
repealed by the Legislature in the 1990s. To qualify, 60
percent of the area would need to have soils or terrain difficulties with estimated correction costs such as
grading or filling that exceed the fair market value of
the property, not counting the cost of roads and other
public improvements for which landowners could be
specially assessed. These soils deficiency districts could
collect 21 years of increments and would be limited to spending increments on land acquisition, soils
correction, public improvements, and administrative
expenses.
• The five-year rule is extended to 10 years. Under general law, the five-year rule limits the period of time
that in-district expenditures (under the percentagepooling rules) may be spent.
• The pooling percentage is increased from 20 percent
to 80 percent, but to qualify for the higher percentage,
the increment must be spent in the area defined by
the bill (i.e., the project area could not extend beyond
these boundaries).
Effective upon approval by the governing body of the City
of Apple Valley and timely compliance with Minn. Stat. §
645.021, subd. 3.
• City of Apple Valley; TIF Authority. Section 19 is an
uncodified session law that authorizes the City of Apple
Valley to use TIF to provide improvements, loans, and
subsidies to buildings and facilities, if:
• The projects will create or retain jobs, including construction jobs, in Minnesota.
• Construction of the project will not begin prior to
July 1, 2014 without the use of tax increment financing.
• Request for certification of the district is made no
later than June 30, 2014.
• Construction of the project begins no later than July
1, 2014.
of Apple Valley and timely compliance with Minn. Stat. §
645.021, subd. 3.
• Minneapolis value capture district for transit. Section 20 is an uncodified session law that authorizes the
City of Minneapolis to create a value capture district
to finance construction of a streetcar line and related
improvements. The city could include parcels in the
district that are located in five defined areas of the city
along the proposed line. Revenues from the district
would be calculated using the same method that applies
under the TIF law, except current tax rates would be
used, rather than a certified original tax rate. Revenues
from the district may be spent for items within an area
located within one block on either side of the streetcar
line. Permitted uses of district revenues are limited to:
• Planning and design for the streetcar line.
• Acquiring, constructing, and equipping the line.
• Acquiring, constructing, and equipping transit stations.
• Related public infrastructure improvements (sidewalks,
street improvements, etc.).
District revenues may not be used to pay for operation of the streetcar line. The city is authorized to issue
bonds without an election under the authority. The
duration of the district is limited to 25 years or the time
needed to pay for the capital improvements, including
bonds, if that is shorter. Effective May 24, 2013.
• Maplewood TIF. Section 21 is an uncodified session
law that authorizes the City of Maplewood to establish
TIF districts within an area of the city, consisting of all
or part of the corporate campus of the 3M Company.
If the city so elects, these TIF districts will be subject
to special law rules that differ from those under general
TIF law. The city could approve TIF plans and establish
districts under this authority through Dec. 31, 2018.
The following special rules or exemptions from general law would apply to districts certified in the defined
project area:
2013 Law Summaries
• Blight test exemption. Redevelopment districts
could be established without meeting the blight test.
Ninety percent of increments from the district, unlike
a general law redevelopment district, would not be
required to be spent on correction of blight.
• Pooling exemption. So long as increments are spent
within the defined project area, restrictions on pooling
increments do not apply.
• Five-year rule exemption. The five-year rule, which
requires spending to be completed within five years of
certification of the district, is extended to ten years.
• One-year knockdown rule. Parcels in a district
would be subject to a one-year knockdown rule—if
construction does not start on a parcel within one year
after its certification for inclusion in the TIF district,
the parcel would be dropped from the district and
could only be reinstated when construction actually
begins. Under general law, a four-year period applies.
of Maplewood and upon compliance with Minn. Stat. §
645.021, subd. 3.
• Mall of America (MOA) TIF district; property
transfer and extension. Section 22 is an uncodified
session law that allows the port authority and City of
Bloomington to elect to transfer several parcels between
the MOA TIF districts. This will allow these undeveloped parcels on the northern edge of the district containing the mall to be shifted to the district containing
the site of the former Met Center. This would have the
effect of extending by three years the ability to collect
increments from these parcels.
In addition, this section allows Bloomington to
extend the two MOA TIF districts through 2034 (an
18-year extension for the district containing the mall
and 15-year extension for the district containing the
Met Center site). During the extension, however, increment would be limited to the special fiscal disparities
computation provided by section 10 and local tax rates
for the city, county, school, and special districts would be
computed including the captured tax capacity of the TIF
districts. The extensions would terminate for taxes payable in 2024 if new improvements, worth at least $100
million, have not been constructed in the Met Center
District by Jan. 1, 2021.
Effective upon compliance of the governing body of the City of
Bloomington with the requirements of Minn. Stat. § 645.021,
subd. 3, but only if the city enters into a binding written agreement with the Metropolitan Council to repair and restore, or to
replace, the old Cedar Avenue bridge for use by bicycle commuters and recreational users.This section is effective without
approval of the county and school district under Minn. Stat. §
469.1782, subd. 2.
• City of Bloomington; Old Cedar Avenue bridge.
Section 23 is an uncodified session law that requires the
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City of Bloomington to transfer increment from its two
MOA TIF districts equal to the amount of increment for
taxes payable in 2014 as a result of section 10 to be used
to renovate or replace the Old Cedar Avenue bridge. The
section also prohibits putting signage on or around the
bridge acknowledging contributions, sponsorships, or
sale of naming rights to the bridge. Effective upon compliance by the City of Bloomington with the requirements of
Minn. Stat. § 645.021, subd. 3.
Article 10: Destination medical center
This article provides local bonding, taxing, and other
development financing powers to the City of Rochester to
fund public infrastructure for the Mayo Destination Medical Center project. The city must create a nonprofit corporation to develop the plan and help finance development.
The article provides state aid—based on the level of new
nonpublic capital investment in Mayo Clinic and other
private building projects in the city—to assist in building public infrastructure for the development. The maximum amount of general state aid is $327 million, with no
more than $30 million per year (the city and county are
expected to pay for $128 million to qualify for this aid). In
addition, $116 million in funding for public transit is provided with a portion of this to be funded with local taxes.
A sales tax exemption for construction materials and supplies is provided for public projects.
• Rochester sales and use taxes authorized. Section
11 amends Laws 1998, chapter 389, article 8, section 43,
subd. 1 to authorize the City of Rochester to impose an
additional general sales tax of up to one-quarter of 1 percent without voter approval. This tax would be in addition to the current one-half percent tax in Rochester.
• Rochester sales tax; use of revenues. Section 12
subdivision 3, (as amended by Laws 2005, First Special
Session chapter 3, article 5, section 28, and Laws 2011,
First Special Session chapter 7, article 4, section 5) to
require that any additional revenue resulting from either
(1) an extension of the duration of the existing local sales
tax or (2) an increase in the local sales tax rate under section 11 above, be used to fund the city share of public
infrastructure costs related to the DMC development
plan. This section repeals the requirement for the city to
share $5 million of its existing sales tax revenues with
surrounding cities. This authority is reinstated subject to
city council approval in section 14 below.
• Rochester termination of taxes. Section 13 amends
Laws 1998, chapter 389, article 8, section 43, subdivision
5, (as amended by Laws 2005, First Special Session chapter 3, article 5, section 30, and Laws 2011, First Special
Session chapter 7, article 4, section 7) to authorize the
city to extend the duration of the existing one-half of 1
percent local sales tax as late as Dec. 31, 2049, without
voter approval. This section also provides that if the sales
Page 62
tax rate is increased under section 11, the additional tax
expires at the earlier of Dec. 31, 2049, or when the city
determines that the total revenues raised by the city for
the DMC project under this and other optional taxes is
sufficient to meet the city’s obligation.
• Rochester sales tax sharing. Section 14 is a session
law that effectively reinstates the Rochester sales tax
sharing authority stricken in section 12. This section
allows the City of Rochester to share $5 million of its
local sales tax revenue collection with the surrounding
cities of Byron, Chatfield, Dodge Center, Dover, Elgin,
Eyota, Hayfield, Kasson, Mantorville, Oronoco, Pine
Island, Plainview, Spring Valley, St. Charles, Stewartville,
West Concord, and Zumbrota. The section requires the
city council to hold a hearing and approve the revenue
sharing by resolution by Sept. 1, 2013, in order to share
the money. If the city does not pass the resolution, the
$5 million is directed to paying the city share of costs
related to the DMC development plan.
Article 10 is generally effective the day after the governing body
of the City of Rochester timely complies with Minn. Stat.§
645.021, subds 2 and 3.
Article 11: Minerals taxes
The article increases the taconite production tax by five
cents per ton and makes the following changes in the distribution of the taconite production tax revenues:
• Provides for increased payments to all school districts in
the taconite tax relief area.
• Increases the match requirement for companies receiving
distributions from the taconite economic development
fund from 50 percent to an equal match.
• Reduces the distribution to the property tax relief fund
by nine cents per ton. (This fund pays the taconite
homestead credit.)
• Modifies the one-time distributions made in 2013 Laws
Ch. 85 (the omnibus jobs bill) by decreasing a distribution to the City of Tower and providing an additional
distribution to the City of Grand Rapids.
• Authorizes the Iron Range Resources and Rehabilitation commissioner to issue bonds to finance school capital projects for schools in the two taconite areas.
Article 12: Public finance
• Authority to invest in state and local securities.
Section 1 amends Minn. Stat. § 118A.04, subd. 3 to
modify the law regulating the authority to invest local
government funds in municipal securities to include:
• Revenue obligations of local governments without
taxing authority, if the obligations are rated AA or better. Under current law, the issuing governmental unit
must have taxing power.
• Any short-term school district obligation (13
months or less) if it is either: (1) rated in the highest
rating category; or (2) covered by the state credit
enhancement program.
• Guaranteed investment contracts (GICs). Section 2
amends Minn. Stat. § 118A.05, subd. 5 to authorize local
governments to invest in short-term GICs (18 months
or less), if the issuer’s or guarantor’s short-term debt is
rated in the highest rating category, even if the longterm debt of those companies is rated below the top two
rating categories. Effective July 1, 2013.
• Special assessments for energy improvements.
Section 3 amends Minn. Stat. § 216C.436, subd. 7 to
eliminate a reference under the energy improvement
financing program (EIFP) enacted in 2010 that the
properties must be “benefited,” and allows EIFP special
assessments to be repaid in 20 equal annual installments.
• Dakota County Community Development
Agency (DCCDA) authority to establish housing
improvement areas. Section 7 adds a new subdivision to Minn. Stat. § 383D.4, subd. 10, to authorize
the DCCDA to exercise housing improvement district powers. The agency would be allowed to do this
by resolution, rather than ordinance, as is required for
cities exercising those powers. The community development agency is required to send a copy of each
petition for the establishment of a housing improvement area to the city in which the proposed housing
improvement area is located and the DCCDA may not
establish a housing improvement area if the applicable city council opposes the establishment by resolution adopted within 30 days after the petition is sent.
Housing improvement districts assist townhome and
condominium developments to finance rehabilitation
costs. Effective July 1, 2013.
• Home rule charter city and statutory city capital
notes. Sections 8 and 9 amend Minn. Stat. §§ 410.32
and 412.301 to expand the capital note authority for
home rule charter cities and statutory cities to allow the
purchase of application development services and training related to the use of the computer hardware and
software. Both sections are effective July 1, 2013.
• City capital improvement program (CIP) bonds.
authorize use of CIP bonds for expenditures incurred
before adoption of the CIP, if the expenditures are
included in the plan. Effective July 1, 2013.
• City CIP bonds; election requirement. Section 16
amends Minn. Stat. § 475.521, subd. 2 to make changes
to the city CIP reverse referendum provisions. If the
municipality elects not to submit the question to the
voters, the municipality shall not propose the issuance of
bonds under this section for the same purpose and in the
same amount for a period of 365 days from the date of
2013 Law Summaries
receipt of the petition. If the issue is submitted and the
voters do not approve, the issue can be resubmitted to
the voters after 180 days. Effective July 1, 2013.
• Street reconstruction bonds. Section 17 amends
Minn. Stat. § 475.58, subd. 3b to allow street reconstruction bonds to be used for bituminous overlay projects,
which currently are not considered reconstruction.
The section makes changes in the reverse referendum
provisions that parallel the similar provisions for city
CIP bonds in section 16 above, and also provides that
expenditures incurred before adoption of the capital
improvement plan can be financed with the bonds, if
the expenditures are included in the plan. Effective July 1,
2013.
• St. Paul capital improvement plan (CIP) bonding.
Section 18 amends Laws 1971, chapter 773, section 1,
subdivision 2, (as amended most recently by Laws 2002,
chapter 390, section 23) to extend through 2014 the St.
Paul CIP bonding authority, which is set to expire at
the end of 2013. These general obligation bonds may be
issued upon a vote of five of the seven members of the
city council without voter approval—this is an exception to the city’s home rule charter, which otherwise
would require simple majority approval by the council and voter approval. Effective the day after compliance by
the governing body of the City of St. Paul with Minn. Stat.§
645.021, subdivisions 2 and 3.
• Purpose statements for tax expenditures. Section
22 is an uncodified session law that establishes purpose statements for various tax expenditures added by
the omnibus tax bill, as required by Minn. Stat. § 3.192,
requires bills that create new tax expenditures or renew
existing tax expenditures to provide a purpose for the
tax expenditure and a standard or goal for use in measuring its effectiveness. The purpose statements include:
• Federal conformity: to simplify compliance and
administration of the individual income tax.
• Income tax subtraction for federal railroad
track maintenance credit: to increase maintenance
and upgrading of railroad track in Minnesota.
• Historic structure rehabilitation credit: to create
and retain jobs related to historic rehabilitation.
• Greater Minnesota internship credit: to encourage Minnesota businesses to provide more internships
in Greater Minnesota.
• Sales tax exemption for Greater Minnesota
businesses: to induce increased investment and
expand employment in Greater Minnesota.
• Expansion of sales tax exemption of durable
medical products to Medicare and Medicaid
purchases: to simplify sales tax administration and
provide relief for sellers unable to collect tax under
Medicare and Medicaid.
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• Sales tax exemption for public safety radio
communications systems: to provide equal treatment to local governments on public safety radio purchases.
• Sales tax exemption for established religious
orders: to maintain an existing exemption that is
jeopardized due to a St. John’s University governance
change.
• Sales tax exemption for certain dental providers: to defray the costs of these providers to encourage
provision of service to underserved communities.
• Sales tax exemption for nursing homes and
boarding care homes: to maintain an existing
exemption potentially eliminated due to a property
tax court case.
• Various sales tax exemptions for construction
materials: to increase jobs and reduce tax pyramiding.
• Sales tax exemption for aircraft parts and labor:
to encourage growth of the aviation service sector in
the state.
• Sales tax exemption for public infrastructure
related to destination medical center: to reduce
city costs for projects.
Article 14: Market value definitions
Article 14 converts the computation of levy, tax, spending,
debt, and similar limits that are based on “market value” or
“taxable market value” to estimated market value. This is
done in response to the 2011 law that repealed the market
value homestead credit and established the new homestead market value exclusion. Subsequent statutory interpretations by the Department of Revenue had the effect of
reducing these limits by the amount of the new homestead
market value exclusion. Converting these definitions to”
estimated market value” will base these limits on the assessor’s estimate of the properties’ fair market value, including
any board or court orders adjusting that value, but before
any exclusions, adjustments, or other changes are made to
the value for tax or legislative policy purposes. Below are
summaries of several of the more substantial sections of the
article that impact cities.
• Eminent domain blight test. Section 14 amends
Minn. Stat. § 117.025, subd. 7 to modify the definition
of “structurally substandard” under the blight test in the
eminent domain statute to refer to estimated market
value, rather than taxable market value. Effective May 24,
2013.
• Computation of adjusted net tax capacity
(ANTC) for aid distribution purposes. Section 15
amends Minn. Stat. § 127A.48, subd. 1 to require the
department of revenue to compute ANTC values for
cities, counties, and townships. ANTC is used in various state aid formulas that are based on “equalized”
tax base amounts, including LGA, which is equalized
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or adjusted for the variations in local assessment practices using assessment sales ratios. The existing statute,
which is codified in the school aid statutes, only refers to
the computation of ANTC for school districts but this
statute is cross-referenced by city, county and township
aid programs. This section also clarifies that the ANTC
computations use values that reflect fiscal disparities, tax
increment financing, and the power line credit. Article
14, Section 110 further directs the Revisor of Statutes to recodify this and adjacent statutes (Minn. Stat. §
127A.48, Subds. 1 to 6) as Minn. Stat. § 273.1325, subdivisions 1 to 6. Effective May 24, 2013.
• Definition of estimated market value. Section 23
adds a new subdivision, Minn. Stat. § 272.03, Subd. 14.
to define “estimated market value” for purposes of the
property tax statutes as the assessor’s determination of
market value, including any board orders, for the parcel
of property. The definition of estimated market for a taxing district in section 25 governs the computation of tax
levy limits, debt limits, and state aid computations. This
section contains the general definition of a parcel’s estimated market value. Effective May 24, 2013.
• Definition of taxable market value. Section 24 adds
a new subdivision, Minnesota Statutes 2012, section
272.03, subd 15, that defines “taxable market value” for
purposes of the property tax statutes as the estimated
market value of the parcel reduced by market value
exclusions, deferments of value (e.g., green acres, rural
preserves, open space, metropolitan agricultural preserves) and other adjustments that reduce market value
before class rates are applied. Effective May 24, 2013.
• Market value definition; computation of levy limits, debt limits, and state aid. Section 25 amends
Minn. Stat. § 273.032 to convert the statute that provides the general rules for computing tax levy limits,
debt limits, and state aid computations based on market
value from “taxable market value” to “estimated market
value.” Under current law, taxable market value is computed after (1) limited market value (which has expired
and is obsolete) and (2) the “This Old House” valuation
exclusion, but includes tax-exempt wind energy values.
In addition, it provides that market value does not reflect
adjustments for TIF, fiscal disparities, and the power
line credit. In the past, the department of revenue has
applied the statute to exclude a variety of minor valuation exclusions not explicitly referenced in the statute.
The amendments now specifically reference these minor
exclusions, while providing that estimated market value
is the value before these adjustments. By converting the
limits to estimated market value, the definition will not
reflect the reductions or shifts in value caused by the following:
• The various deferrals, such as green acres, open space,
and rural preserves. This change from current practice
will increase limits in areas with these properties.
• Exclusions, including the homestead market value
exclusion enacted by the 2011 Legislature, as well as
the more minor exclusions in prior law.
• Adjustments to tax capacity, such as fiscal disparities
and TIF (current practice).
Present law requires that tax-exempt wind energy
property be added to taxable market value. The section reverses that, confirming apparent local administrative practices in the counties with the largest amounts
of this property. The measure of estimated market value
for tax limits is the amount for the previous assessment
year, while for debt limits it is the most recently available amount. Limits under special law and city charters
that are based on market value are also converted to estimated market value. Effective May 24, 2013.
• Levy limits based on mill rates; growth factor.
Section 32 amends Minn. Stat. § 275.011, subd 1 to
provide that the law converting old special law and city
charter provisions containing levy or mill rate limits will
provide increases based on the rate of growth in estimated market value, rather than taxable market value.
• Continuance of nonconforming land uses. Section
61 amends Minn. Stat. § 394.36, subd. 1 to modify the
exception to the authority to continue nonconforming
land uses if more than 50 percent of the market value of
the building or structure is destroyed by fire or natural
disaster so that the test is based on estimated, rather than
taxable, market value. Effective May 24, 2013.
• Capital notes; home rule charter cities. Section 64
amends Minn. Stat. § 410.32 to convert the debt limit
that applies to capital notes issued without an election
by a home rule charter city from 0.03 percent of taxable market value to estimated market value. Effective
May 24, 2013.
• Certain contracts; statutory cities. Section 65
amends Minn. Stat. § 412.221, subd. 2 to convert the
threshold that subjects conditional sale contracts and
contracts for deed purchases by statutory cities to reverse
referendum authority from 0.24177 percent of taxable
market value to the same percentage of estimated market
value. Effective May 24, 2013.
• Certificates of indebtedness; statutory cities. Section
66 amends Minn. Stat. § 412.301 to convert the threshold that subjects statutory cities’ issuance of certificates of
indebtedness to reverse referendum authority from 0.25
percent of taxable market value to the same percentage of
estimated market value. Effective May 24, 2013.
• Special service districts; property subject to
charges. Section 67 amends Minn. Stat. § 428A.02,
subd. 1 to modify the test to determine whether a splituse property in a special service district is subject in full
or proportionately to the charges or levies from 50 percent of taxable market value to the same percentage of
2013 Law Summaries
• Campground levy. Section 70 amends Minn. Stat. §
450.19 to convert the authorized levy for operation and
maintenance of a city or town tourist camping grounds
from 0.0806 percent of taxable market value to the
same percentage of estimated market value. Effective May
24, 2013.
• St. Cloud Transit Commission levy. Section 72
amends Minn. Stat. § 458A.10 to convert the limits on
the St. Cloud Transit Commission property tax levy
from 0.12089 percent of taxable market value to the
24, 2013.
• Duluth Transit Commission levy. Section 73 amends
Minn. Stat. § 458A.31, subd. 1 to convert the limits on
the Duluth Transit Commission property tax levy from
0.07253 percent of taxable market value to the same percentage of estimated market value. Effective May 24, 2013.
• Cities; acceptance of conditional gifts. Section 74
amends Minn. Stat. § 465.04, the qualifying rule allowing cities of the second, third, and fourth class cities to
accept gifts with conditions (such as life annuity gifts
with interest not to exceed 5 percent). The $41 million
cap is now measured by estimated, not taxable, market
• Housing and Redevelopment Authority (HRA)
levy limit. Section 75 amends Minn. Stat. § 469.033,
subd. 6 to convert the levy limit for housing and redevelopment authorities from 0.0185 percent of taxable
market value to the same percentage of estimated market
• Housing and Redevelopment Authority (HRA)
debt limit. Section 76 amends Minn. Stat. § 469.034,
subd. 2 to convert limit on the issuance of general obligation HRA bonds from 0.5 percent of taxable market
value to the same percentage of estimated market value.
• Port authority; mandatory city levy limit. Section
77 amends Minn. Stat. § 469.053, subd. 4 to convert the
levy limit for the mandatory port authority levy (i.e.,
the levy the city must levy on behalf of the port authority) from 0.01813 percent of taxable market value to the
24, 2013.
• Seaway Port Authority levy limit. Section 78 amends
Minn. Stat. § 469.053, subd. 4a to convert the maximum
basic levy of the Seaway Port Authority from 0.01813
percent of taxable market value to the same percentage of
• Port authority; discretionary city levy limit. Section 79 amends Minn. Stat. § 469.053, subd. 6 to convert
the limit for the discretionary port authority levy (i.e.,
the levy the city may levy on behalf of the port authority) from 0.00282 percent of taxable market value to the
24, 2013.
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• Economic Development Authority (EDA) levy
limit. Section 80 amends Minn. Stat. § 469.107, subd.
1 to convert the EDA city levy from 0.01813 percent of
taxable market value to the same percentage of estimated
market value. Effective May 24, 2013.
• First-class city publicity levy limit. Section 82
amends Minn. Stat § 469.187 to convert the authorized
first-class city publicity levy from 0.0008 percent of taxable market value to the same percentage of estimated
• Hazardous property penalty. Section 83 amends
Minn. Stat. § 469.206 to convert the limit on the penalty
a city may assess on hazardous properties from 1 percent
of taxable market value to the same percentage of estimated market value. Effective May 24, 2013.
• Joint maintenance of cemeteries. Section 84 amends
Minn. Stat. § 471.24 to modify the law allowing contiguous towns and statutory cities to jointly maintain public
cemeteries, if each has a minimum market value of $2
million. The minimum market value requirement is now
based on estimated market value. Effective May 24, 2013.
• Taconite cities improvement fund. Section 85 amends
Minn. Stat. § 471.571, subd 1 to modify the $2.5 million
valuation threshold basis that permits a city with real and
personal property consisting in part of iron ore or lands
containing taconite or semi-taconite to establish a permanent improvement fund to being based on estimated,
rather than taxable, market value. Effective May 24, 2013.
• Taconite cities improvement fund levy limit. Section 86 amends Minn. Stat. § 471.571, subd. 2 to convert
calculation of the levy limits for the permanent improvement fund for taconite cities from 0.08059 percent of
• Metro area fiscal disparities; adjusted market
value. Section 94 amends Minn. Stat. § 473F.02, subd.
12 to define “adjusted market value” for the purposes of
the metropolitan area fiscal disparities law to be taxable
market value, adjusted by the assessment sales ratio. This
change confirms existing practice, which is contrary to
the statute’s use of estimated market value. Effective May
24, 2013.
• Metro area fiscal disparities; fiscal capacity. Section
95 amends Minn. Stat. § 473F.02, subd. 14 to clarify that
fiscal capacity under the metropolitan area fiscal disparities law is based on adjusted market value. Effective May
24, 2013.
• Metro area fiscal disparities; average fiscal capacity. Section 96 amends Minn. Stat. § 473F.02, subdivision
15 to clarify that average fiscal capacity under the metropolitan area fiscal disparities law is based on adjusted
• Metro area fiscal disparities; net tax capacity. Section 97 amends Minn. Stat. § 473F.02, subdivision 23 to
clarify that net tax capacity under the metropolitan area
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fiscal disparities law is based on taxable market value.
• Metro area fiscal disparities; adjustment of values.
Section 98 amends Minn. Stat. § 473F.08, subdivision 10
to eliminate the mandate that limits on levies, aid, taxes,
debt, or salary based on values be adjusted to reflect the
effect of the fiscal disparities law. Most of these limits
will be based on estimated market value, which does not
reflect the effects of fiscal disparities. The section also
clarifies computation of fiscal capacity that are used to
compute distributions to be consistent with administrative practices. Effective May 24, 2013.
• City CIP bonds. Section 99 amends Minn. Stat. §
475.521, subd. 4 to convert the limit that applies under
the city capital improvement program (CIP) bond law
from 0.16 percent of taxable to estimated market value.
• General net debt limit. Section 100 amends Minn.
Stat. § 475.53, subd. 1 to convert the general net debt
limit that applies to municipalities, other than school
districts and first-class cities, from 3 percent of taxable to
• Net debt limit; first-class cities. Section 101 amends
Minn. Stat. § 475.53, subd. 3 to convert the net debt
limit that applies to first-class cities from 2 percent of
market value. If the city charter permits a debt limit in
excess of 2 percent, this section converts the maximum
limit of 3-2/3 percent of taxable to estimated market
• Referendum exemption for refunding bonds. Section 103 amends Minn. Stat. § 475.58, subd. 2 to convert the debt threshold that allows a city, county, town,
or school to issue refunding bonds without holding an
election from 1.62 percent of taxable to estimated market value. Effective May 24, 2013.
• Bonds qualifying for State Board of Investment
(SBI) purchase. Section 104 amends Minn. Stat.§
475.73, subd. 1 to convert the maximum limit on Minnesota municipal bond purchases by SBI from 3.63 percent
of the taxable market value of the issuer to the same percentage of estimated market value. Effective May 24, 2013.
• Definition of estimated market value. Section 109
adds a subdivision to Minn. Stat. § 645.44. subd. 20, that
adds a definition of “estimated market value” to the general definition section of the statutes. This definition cross
references the amended definitions in Section 25 and
applies for purposes of levy, tax, spending, and debt limits
and calculation of aid payments. Effective May 24, 2013.
Unless otherwise provided, the sections of this article are effective
May 24, 2014, for purposes of limits on net debt, the issuance of
bonds, certificates of indebtedness, and capital notes and is effective
beginning for taxes payable in 2014 for all other purposes.
Article 16: Sales and use and special taxes
• Sales and use tax accelerated remittance repeal.
Section 2 amends Minn. Stat. § 289A.20, subd. 4 to
eliminate the accelerated remittance schedules for
vendors with annual sales tax collections of at least
$120,000 for all months except for June collections.
These early remittance requirements for larger vendors
became inactive after the full statutory amounts for the
budget reserve and cash flow accounts were restored in
the February 2012 economic forecast.
Article 17: Property and minerals provisions
• Prohibited activity: assessor’s duties. Section 3
amends Minn. Stat. § 270.41, subd. 5 to modify the list
of nontax property appraisals that assessors may perform
within their jurisdictions, so that county assessors are
allowed to do appraisals related to land exchanges. Effective May 24, 2013.
• Exempt property used by private entity. Section
5 amends Minn. Stat. § 272.01, subd. 2 to clarify that
taxes on the use of federal real property are assessed as a
personal property tax against the user and applies to real
property leased, loaned or otherwise made available to a
user. This change is consistent with the treatment of state
and political subdivision-owned property. Effective May
24, 2013.
• Definition of person for property taxes. Section
7 amends Minn. Stat. § 272.03, subd. 9 to clarify that
for property tax purposes, the term “person” includes
an individual, association, estate, trust, partnership, firm,
company, or corporation. Effective May 24, 2013.
• Tax status of leased, tax-exempt property owned
by political subdivisions. Section 10 amends Minn.
Stat. § 273.19, subd. 1 to clarify that tax-exempt property owned by a political subdivision and held under
a lease for a term of at least one year, and not taxable
under section 272.01, subdivision 2, or under a contract
for the purchase thereof, shall be considered for all purposes of taxation as the property of the person holding
it. This change makes the treatment of leased property
owned by local units of government consistent with
the treatment of leased property owned by the federal
government, the state of Minnesota and school districts.
• Definition of rural area; electrical cooperatives
per capita tax. Section 12 amends Minn. Stat.§ 273.39
to change the definition of rural area to refer to “statutory cities” and “home rule charter cities.” This technical change is necessary because the current statute refers
only to “incorporated city,” a designation that no longer
exists. Effective May 24, 2013.
• Repealer. Section 18 repeals obsolete statutory provisions including Minn. Stat. § 273.11, subd 1a, the expired
limited market value statute, and Minn. Stat. § 273.11,
2013 Law Summaries
subd 22, the expired market value exclusion for property
treated for lead paint removal. Effective May 24, 2013.
(GC)
TELECOMMUNICATIONS
Broadband provisions included in omnibus jobs,
economic development, housing, commerce, and
energy law
Chapter 85 (HF 729*/SF 1057) is the omnibus jobs, economic development, housing, commerce, and energy bill.
The bill includes a provision establishing the Office of
Broadband Development under the jurisdiction of the
Department of Employment and Economic Development
(DEED). The bill also creates a fiber collaboration database
to coordinate state broadband infrastructure and requires
the broadband development office to produce a statewide
broadband strategy report. The provisions related to broadband in the omnibus bill are summarized below:
• Appropriation. Article 1, Section 3, subd. 2(o) appropriates $250,000 each year in FY2014-15 from the
general fund for the Broadband Development Office.
• Office of Broadband Development established.
Article 3, Section 13 adds a new statute, Minn. Stat. §
116J.998, which creates an office of broadband development within DEED to encourage, foster, develop, and
improve broadband within the state in order to meet
statewide broadband goals established in Minn. Stat. §
237.012. The director of the office will be a gubernatorial appointee. Section 13 also spells out the duties of the
office, Duties of interest to cities include:
• Coordinate with state, regional, local, and private entities to develop, to the maximum extent practicable, a
uniform statewide broadband access and usage policy;
• Provide consultation services to local units of government or other project sponsors in connection with the
planning, acquisition, improvement, construction, or
development of any broadband deployment project;
• Encourage public-private partnerships to increase
deployment and adoption of broadband services and
applications, including recommending funding options
and possible incentives to encourage investment in
broadband expansion;
• Serve as an information clearinghouse for federal
programs providing financial assistance to institutions
located in rural areas seeking to obtain access to highspeed broadband service, and use this information as
an outreach tool to make institutions located in rural
areas that are unserved or underserved with respect
to broadband service aware of the existence of federal
assistance;
• Provide logistical and administrative support for the
Governor’s Broadband Task Force; and,
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• Coordinate an ongoing collaborative effort of stakeholders to evaluate and address security, vulnerability,
and redundancy issues in order to ensure the reliability
of broadband networks.
• Coordination of broadband infrastructure development. Article 3, Section 14 adds a new statute, Minn.
Stat. § 116J.999, directing the Office of Broadband
Development to coordinate, with the Department of
Transportation, “dig once” efforts to facilitate the costeffective deployment of broadband infrastructure. To the
extent practicable, the office shall encourage and assist
local units of government to adopt and implement “dig
once” for construction or other improvements to county
state-aid highways, municipal state-aid roads, and any
other rights-of-way under the local unit of government’s
jurisdiction, and to other lands or buildings owned by
the local unit of government.
• Fiber collaboration database. Article 3, Section 18
adds a new statute, Minn. Stat. § 161.462, requiring
MnDOT to post upcoming construction projects on
the department’s Web site so broadband providers can
coordinate the installation of infrastructure with highway
projects.
• State broadband strategy; report. Article 3, Section
26, (see also, Article 3, section 13, subd. 5 and section
14, subd. 3 of the omnibus bill) requires the broadband
development office to produce a state broadband strategy
report. The report shall include research and recommendations to improve and promote expansion and efficient
use of broadband throughout the state. The report is due
to the Legislature by Jan. 15, 2014.
Effective May 24, 2013, unless otherwise noted. (LZ)
TRANSPORTATION
I-35W bridge remnant steel disposition provided for
3.7396. It allows the commissioner of the Minnesota
Department of Transportation to distribute the remnant
steel from the I-35W bridge collapse once the special
claims process and any litigation is completed to the Minnesota Historical Society, survivors of the collapse, federal
and state agencies responsible for transportation, colleges
and universities in the field of engineering, or other persons or institutions directly impacted by the bridge collapse.
The commissioner must complete the process of distributing pieces of remnant steel within a period of six months
from the effective date. After that time, the commissioner
must dispose of the remaining steel as surplus property to be
melted down and recycled. The first $22,000 of the proceeds
from the disposal of the remaining steel will be deposited in
the trunk highway fund, and any additional proceeds will be
deposited in the general fund. Effective May 25, 2013. (AF)
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Omnibus transportation finance act
Chapter 117 (HF 1444*/SF 1173) is the 2013 omnibus
transportation and public safety finance act. The chapter spends $2.394 billion in FY 2014 and $2.346 in FY
2015. It sets the budget for the Minnesota Department
of Transportation (MnDOT) and part of the Minnesota
Department of Public Safety (DPS), as well as funding
for the Metropolitan Council, for the upcoming biennium. It makes various changes in base appropriation levels
largely reflecting the governor’s budget proposal, including
increased appropriations for state roads, Driver and Vehicle
Services, and capitol security. It authorizes $300 million in
trunk highway bonds, available in fiscal year 2015, for the
Corridors of Commerce program being established. Summarized below are transportation provisions that may be of
interest to cities. (Note: Public safety provisions in Chapter 117 are summarized in the Public Safety section of the
2013 Law Summaries.)
Article 1. Appropriations for FY 2014 and 2015
Article 1 provides a summary of all appropriations by fund.
• Airport development and assistance funded.
$13.648 million in 2014 and $13.648 million in 2015 is
for airport development and assistance. This appropriation is from the State Airports Fund and must be spent
according to Minn. Stat. § 360.305, subd. 4. This amount
represent an approximately $1 million reduction from
the previous biennium. The base appropriation for fiscal years 2016 and 2017 is $14.298 million for each year.
• Aviation support and services funded. $6.386 million in 2014 and $6.386 million in 2015 is for aviation
support and services. This amount represents an approximately $200,000 increase over the previous biennium.
• Greater Minnesota Transit appropriation provided. $17.226 million in 2014 and $17.245 in 2015 is
for Greater Minnesota Transit. This amount represents
an approximately $3 million increase over the previous biennium. $100,000 in each year is from the general
fund for the administrative expenses of the Minnesota
Council on Transportation Access under Minn. Stat. §
174.285. $78,000 in each year is from the general fund
for grants to Greater Minnesota transit providers as
reimbursement for the costs of providing fixed route
public transit rides free of charge under Minn. Stat. §
174.24, subd. 7, for veterans certified as disabled. Effective July 1, 2013.
• Passenger rail funded. $500,000 in each year of the
biennium is provided from the general fund for passenger rail system planning, alternatives analysis, environmental analysis, design, and preliminary engineering
under Minn. Stat. § 174.632 to 174.636. This is the same
amount appropriated for this purpose in the previous
• Freight appropriation provided. $5.653 in 2014 and
$5.153 in 2015 is provided for freight purposes. This
amount is approximately $500,000 more than was appropriated in the previous biennium. Effective July 1, 2013.
• Safe routes to school activities funded. $250,000 in
each year of the biennium is from the general fund for
non-infrastructure activities in the safe routes to school
program under Minn. Stat. § 174.40, subd. 7a. Effective
July 1, 2013.
• State roads operations and maintenance funded.
$262.395 in each year of the biennium is for operations
and maintenance of state roads. This amount is almost
$300 million less than was provided in the previous
• State roads program planning and delivery
funded. $206.795 million in 2014 and $206.720 million in 2015 is for program planning and delivery. This
amount is approximately the same as what was appropriated in the previous biennium. Effective July 1, 2013.
• Joint Program Office for Economic Development and Alternative Finance created. $250,000 in
each year of the biennium is appropriated for MnDOT’s
administrative costs for creation and operation of the
Joint Program Office for Economic Development and
Alternative Finance, including costs of hiring a consultant and preparing required reports. Effective July 1, 2013.
• Targeted group business program funded. $130,000
in each year is available for administrative costs of the targeted group business program. Effective July 1, 2013.
• Planning grants provided. $266,000 in each year is
available for grants to metropolitan planning organizations outside the seven-county metropolitan area. Effective July 1, 2013.
• Research contingent account funds provided.
$75,000 in each year is available for a transportation
research contingent account to finance research projects
that are reimbursable from the federal government or
from other sources. for the other year is available for it.
• Transportation study grant funds provided.
$900,000 in each year is available for grants for transportation studies outside the metropolitan area to identify
critical concerns, problems, and issues. These grants are
available: (1) to regional development commissions; (2)
in regions where no regional development commission
is functioning, to joint powers boards established under
agreement of two or more political subdivisions in the
region to exercise the planning functions of a regional
development commission; and (3) in regions where no
regional development commission or joint powers board
is functioning, to the department’s district office for that
region. Effective July 1, 2013.
• WorkPlace Telework program funded. $75,000 in
the first year is from the Highway User Tax Distribution Fund for a grant to the Humphrey School of Public
2013 Law Summaries
Affairs at the University of Minnesota for WorkPlace
Telework program congestion relief efforts consisting of
maintenance of website tools and content. Effective July
1, 2013.
• Economic recovery completion funds provided.
$1 million in each year of the biennium is to complete
projects using funds made available to the MnDOT
under title XII of the American Recovery and Reinvestment Act of 2009, Public Law 111-5, and implemented
under Minn. Stat. § 161.36, subd. 7. The base appropriation is $1 million in fiscal year 2016 and $0 in fiscal year
• State road construction funded. $909.4 million in
2014 and $815.6 million in 2015 are for state road construction. This amount is approximately $300 more than
was appropriated in the previous biennium. $489.2 million in 2014 and $482.2 million in 2015 are from the
Federal Highway Administration. $420.2 million in 2014
and $333.4 million in 2015 are from highway user taxes.
• Transportation Economic Development program
funded. $10 million in each year is for the Transportation Economic Development (TED) program under
Minn. Stat. § 174.12. The commissioner of MnDOT
may expend up to one-half of 1 percent of the federal
appropriations under this clause as grants to opportunity
industrialization centers and other nonprofit job training centers for job training programs related to highway
construction. Effective July 1, 2013.
• Transportation Revolving Loan Fund transfers
authorized. The commissioner of MnDOT may transfer up to $15 million each year to the Transportation
Revolving Loan Fund. The commissioner may receive
money covering other shares of the cost of partnership
projects. Effective July 1, 2013.
• Highway debt service provided. $158.417 million
in 2014 and $189.821 million in 2015 is for debt service
on trunk highway bonds. Effective July 1, 2013.
• Electronic communications funded. $5.171 million
in each year of the biennium is for electronic communications. Of this amount, $3,000 in each year is from
the general fund appropriation to equip and operate the
Roosevelt signal tower for Lake of the Woods weather
broadcasting. The remainder is from the Trunk Highway
Fund. Effective July 1, 2013.
• County state-aid roads funded. $594.883 million in
2014 and $607.505 million in 2015 is from the County
State-Aid Highway fund under Minn. Stat. § 161.082 to
161.085, and Chapter 162. Effective July 1, 2013.
• Municipal state-aid roads funded. $152.219 million in 2014 and $155.060 million in 2015 is from the
Municipal State-Aid Street Fund for the purposes under
Minn. Stat. Chapter 162. Effective July 1, 2013.
• Flexible Highway Account transfers required. The
commissioner of MnDOT must transfer from the Flexi-
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ble Highway Account in the County State-Aid Highway
Fund: (1) $5.7 million in the first year to the trunk highway fund; (2) $13 million in the first year to the Municipal Turnback Account in the Municipal State-Aid Street
Fund; (3) $10 million in the second year to the Municipal Turnback Account in the Municipal State-Aid Street
Fund; and (4) the remainder in each year to the County
Turnback Account in the County State-Aid Highway
Fund. The funds transferred are for highway turnback
purposes as provided under Minn. Stat. § 161.081, subd.
• Metropolitan Council transit operations funded.
$107.889 million in 2014 and $76.97 million in 2015
is appropriated from the general fund for transit system operations under Minn. Stat. § 473.371 to 473.449.
The base appropriation for fiscal years 2016 and 2017
is $76,686 million in each year. $37,000,000 in the first
year is for the Southwest Corridor light rail transit line
from the Hiawatha light rail transit line in downtown
Minneapolis to Eden Prairie, to be used for environmental studies, preliminary engineering, acquisition of real
property or interests in real property, and design. Effective
July 1, 2013.
• Trunk highway bond reauthorization provided.
$1.4146 million of the amount appropriated in Laws
2008, chapter 152, article 2, section 6, for trunk highway bond sale expenses, which was reported to the
Legislature according to Minn. Stat. § 16A.642, subd.
1, is reauthorized and does not cancel under the terms
of that subdivision. This appropriation for the bond sale
expenses and the bond sale authorization in Laws 2008,
chapter 152, article 2, section 7, subd. 1, as amended, are
available until Dec. 31, 2019. Effective May 24, 2013.
Article 2. Corridors of Commerce bonding provided
Article 2 contains authorization and appropriation of
$300 million in trunk highway bonds for the Corridors of
Commerce program (being established in article 3, section
1). The appropriation in this section is for the construction, reconstruction, and improvement of trunk highways,
including design-build contracts and consultant usage to
support these activities. This includes the cost of payments
to landowners for lands acquired for highway rights-ofway, payments to lessees, interest subsidies, and relocation
expenses. The commissioner may use up to 17 percent for
program delivery. Effective July 1, 2014.
Article 3. Funding policy provisions
Article 3 contains policy provisions related to transportation and public safety funding. (Note: The public safety
provisions can be found in the Public Safety section of the
2013 Law Summaries.) Following are transportation provisions that may be of interest to cities.
• Corridors of Commerce Program created. Section 1 establishes Minn. Stat. § 161.088, the Corridors of
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Commerce Program. It creates classifications for candidate trunk highway projects, consisting of capacity development projects that add additional capacity to the trunk
highway system and freight improvements. It establishes
basic requirements for whether a project is eligible to
be included in the program, including consistency with
transportation plans, location on an interregional corridor (for projects outside the Twin Cities metropolitan area), fit in one of the project classifications, a time
limit for when the project would be ready to start, and a
maximum project cost. It requires MnDOT to establish
a selection process and criteria for evaluation of projects as well as a cost participation policy for local units
of government. It provides for stakeholder recommendations on candidate projects. It specifies some criteria that
must be included in determining which projects to fund
through the program, including return on investment,
measures of commerce impacts, efficiency of freight
movement, safety improvements, and project support. It
provides for accounting for future operating costs resulting from a project funded under the program. It requires
an annual report to the Legislature starting in November
2014 on the program, as well as an independent program
evaluation every other year starting in 2016. Effective May
24, 2013; however, per Article 2, funds will not be available
until July 1, 2014.
• Center for Transportation Policy funding
increased. Section 3 amends Minn. Stat. § 161.53 by
increasing the cap from $1.2 million to $2 million on
how much funding MnDOT can provide to the Center for Transportation Studies at the University of Minnesota for transportation research. Requires research to
be undertaken on transportation policy and economic
competitiveness, which is due by June 30, 2018. Effective
July 1, 2013.
• County wheelage tax expansion provided. Section
4 amends Minn. Stat. § 163.051. It broadens the authority for counties to impose an annual wheelage tax, to: 1)
provide the authority to all counties, expanded from the
current restriction to the seven-county Twin Cities metropolitan area; and 2) set the tax rate at $10 (increased
from $5) to be imposed until Jan. 1, 2018, after which a
tax of up $20 can be imposed. Effective May 24, 2013 and
applies to a registration period under Minn. Stat. Chapter 168,
starting on or after Jan. 1, 2014.
• “High-value vehicle” definition amended. Section 5 amends Minn. Stat. § 168A.01, subd. 6a. It amends
the definition of “high-value vehicle” in the chapter on
motor vehicle titles, to raise the minimum value of a
vehicle prior to being damaged in a crash, from $5,000
to $9,000, in order to be considered high-value. This has
the effect of reducing the collection of vehicles considered high-value. High-value vehicles are subject to
provisions under section 168A.151 that (1) require an
insurance company to obtain a salvage title on the vehi-
cle if it was acquired as a result of paying an insurance
claim, and (2) require a salvage title on some damaged
vehicle scenarios involving an out-of-state title. Effective
July 1, 2013.
• Vehicle title fees increased. Section 6 amends Minn.
Stat. § 168A.29, subd. 1. Modifies fees for motor vehicle titling transactions starting in January 2017, to: 1)
raise the fee for new vehicle titles by $2 (going from
$6.25 to $8.25, with no changes made to a $1 technology surcharge and an additional $3.50 that goes into a
public safety vehicle account), with $0.90 of the increase
going to an account that funds Driver and Vehicle Services (DVS) operations, and the other $1.10 going to the
general fund; and 2) eliminate a $5.50 title transfer fee,
which is currently distributed $2.50 to a DVS operating
account and $3 to the general fund. Effective July 1, 2013.
• Driver’s license renewal fee increased. Section 11
amends Minn. Stat. §171.061, subd. 4. It increases, from
$5 to $8, the filing fee charged for a new or renewal
driver’s licenses and Minnesota identification cards. The
same fee amount is imposed by agents authorized by
Driver and Vehicle Services (DVS) to administer driver
licensing offices, and by DVS at its locations. (Filing fees
collected by agents are retained by them, and fees collected by DVS are deposited in an operating account in
the special revenue fund for DVS program administration.) Effective Jan. 1, 2014.
• Transportation Economic Development Program
codified. Section 19 creates Minn. Stat. § 174.12. It
codifies authorization and requirements governing the
Transportation Economic Development (TED) Program, a joint MnDOT/Department of Employment
and Economic Development (DEED) program for road
construction related to economic development. It directs
MnDOT and DEED to jointly establish a program for
funding transportation projects that have economic
development impacts. It establishes accounts for the
program in the Special Revenue Fund and the Trunk
Highway Fund. It directs MnDOT and DEED to make
public solicitations for projects and provide information
and technical resources to potential applicants. It requires
DEED to develop performance measures on economic
impacts to use in evaluating projects for inclusion in the
program. It specifies core criteria that must be included
in evaluating projects for inclusion in the program. It
specifies that project selection must be based on the
criteria established, and directs certifications by both
MnDOT and DEED regarding project eligibility. It limits funds from the program to 70 percent of project costs.
It requires geographic balance throughout the state with
respect to both numbers of projects and funding levels. Finally, it mandates a legislative report, due Feb. 1 of
every other year starting in 2015. Effective July 1, 2013.
• Solar installations made in Minnesota requirement
provided. Section 20 creates Minn. Stat. § 174.187.
2013 Law Summaries
It requires MnDOT to use solar photovoltaic modules
that are manufactured in Minnesota if such modules are
included in a MnDOT construction project. It prevents
the provision from applying if receipt of federal funds
requires a conflicting procurement method, or if no
modules are available that fulfill the required function.
• Safe Routes to School expenditure authorized.
Section 21 adds a subdivision to Minn. Stat. § 174.40. It
establishes allowable uses of non-bond proceeds funds in
the Safe Routes to School program, to include planning,
education, traffic enforcement, and financial assistance
activities. Effective July 1, 2013.
• Bicycle and pedestrian trail categories required.
Section 22 creates Minn. Stat. § 174.42. It requires
MnDOT to obtain the same or a greater level of funding
for certain bicycle and pedestrian trail project categories
in each year compared to the average funding over the
previous four years. Effective July 1, 2013.
• Grade Crossing Safety Account discretion provided. Section 23 amends Minn. Stat. § 219.1651. It
gives MnDOT discretion in whether to cancel remaining funds in the grade crossing safety account at the end
of each biennium. Effective July 1, 2013.
• Motor vehicle lease tax revenue dedication provided. Section 24 amends Minn. Stat. § 297A.815, subd.
3. It amends the allocation of revenue from the sales tax
on leased motor vehicles, so that for 2014 and 2015 only,
$9 million is allocated to Twin Cities metropolitan-area
counties (except for Hennepin and Ramsey) for county
roads and the remainder is provided to Greater Minnesota transit. Starting in 2016, the allocation reverts to the
previous formula of 50 percent to certain county roads
and 50 percent to Greater Minnesota transit. Effective Jan.
1, 2014.
• County sales tax for transportation authority
provided. Section 25 amends Minn. Stat. § 297A.993,
subd. 1. It eliminates a referendum requirement for a
county to impose a local option transportation sales tax
in Greater Minnesota, which may instead be imposed by
resolution following a hearing. Effective May 24, 2013.
• Use of sales tax proceeds clarified. Section 26
amends Minn. Stat. § 297A.993, subd. 2. It clarifies eligible uses of proceeds from a local option transportation
sales tax in Greater Minnesota, to specifically include
funding transit capital and ongoing operations as well
as projects in the safe routes to school program. Effective
May 24, 2013.
• Collector vehicle fee increased. Section 29 amends
Minn. Stat. § 297B.02, subd. 3. It raises the flat fee from
$90 to $150 imposed on sales of collector vehicles—
including collector fire trucks—which applies instead of
the motor vehicle sales tax. Effective July 1, 2013.
• Metropolitan Council bonding authority increased.
Section 34 adds a subdivision to Minn. Stat. § 473.39.
It increases by $35.8 million the Metropolitan Coun-
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cil’s authority to issue debt obligations to fund its capital
improvement plan for transit and paratransit. Proceeds may
also be used to pay issuance costs (subject to the limit).
Effective May 24 and applies in the counties of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and Washington.
• Appropriation authority extended. Section 36
amends Laws 2009, chapter 9, section 1 by extending from 2013 to 2016 appropriations authority for
MnDOT from federal aid received under the American Economic Recovery and Reinvestment Act of 2009
(ARRA). Effective May 24, 2013.
• Novice driver education improvement task force
created. Section 37 is a 2013 Session Law. It creates a
task force to compare Minnesota novice driver education with national group standards and submit a report
to the Legislature, which is due by Aug. 31, 2015. The
task force expires on Sept. 1, 2015, or the day after the
report is submitted. Effective May 24, 2013.
• Transitway community engagement contract
authorized. Section 38 is a 2013 Session Law. It allows
the Metropolitan Council, when it is the lead authority in a transitway project, to contract with communitybased organizations to promote community engagement
activities along the corridor. It requires the Metropolitan
Council to report activities related to this provision to
the chairs of the House and Senate transportation committees. Effective July 1, 2013.
• Transportation infrastructure hiring and recruitment practices encouraged. Section 38 is a 2013
Session Law. It encourages the lead transportation authority in a transportation project to make efforts to employ
women and minorities and contract with targeted group
businesses owned by women and minorities. It also
encourages MnDOT to increase participation in highway
projects of small businesses located in economically disadvantaged areas of the state. Effective July 1, 2013.
• Financial assistance for Northstar Commuter
Rail provided. Section 40 is a 2013 Session Law. It
exempts the Greater Minnesota transit component of
the costs of Northstar Commuter Rail from a requirement that financial assistance be provided only to
recipients outside the Twin Cities metropolitan area.
(AF)
Special freight distribution authorized for west central Minnesota
169.868. It allows annual permits for truck weights above
the restricted amount in Minnesota Department of Transportation (MnDOT) District 4 to haul freight to or from
a distribution facility that is constructed on or after July 1,
2013. MnDOT District 4 serves Becker, Big Stone, Clay,
Douglas, Grant, Mahnomen, Otter Tail, Pope, Stevens,
Swift, Traverse, and Wilkin counties.
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• Six-axle vehicles weight limit increase allowed
by permit. Subdivision 1 allows a road authority to
issue an annual permit for a vehicle or combination of
vehicles with a combination of six or more axles to haul
Minn. Stat. § 169.826, subd. 1. The fee for a permit
issued under this subdivision is $300.
• Seven-axle vehicles weight limit increased by permit. Subdivision 2 allows a road authority to issue an
annual permit for a vehicle or combination of vehicles with a combination of seven or more axles to haul
Minn. Stat. § 169.826, subd 1. The fee for a permit issued
under this subdivision is $500.
• Restrictions provided. Subdivision 3 provides that
vehicles issued permits under this section must comply
with all requirements and restrictions in Minn. Stat. §
169.865, subd. 3. A vehicle may be operated under a permit issued under this section only to haul freight to or
from a distribution facility that is: (1) constructed on or
after July 1, 2013; and (2) located within the Department
of Transportation District 4.
• Deposit of revenues provided. Subdivision 4 provides that revenue from the permits issued by MnDOT
under this section must be deposited in the bridge
inspection and signing account as provided under Minn.
Stat. § 169.86, subd 5b.
Omnibus transportation policy act
Chapter 127 (HF 1416/SF 1270*) is the omnibus transportation policy act. Summarized below are provisions that
may be of interest to cities.
• Snow removal authority in uncompleted subdivisions sunset extended. Section 1 amends Minn. Stat.
§ 160.21, subd. 6. It extends, by one year (until May 2,
2014), authority for MnDOT and local units of government to perform snow removal on roads in certain
uncompleted subdivisions that are not being maintained
by the developer. Effective Aug. 1, 2013.
• Signage authorization expanded. Section 2 amends
Minn. Stat. § 160.80, subd. 1 by expanding eligible types
of businesses to include “attractions” under MnDOT’s
logo sign program for advertising along interstates and
controlled access trunk highways. Effective Aug. 1, 2013.
• Requirements for businesses in logo sign program
modified. Section 3 amends Minn. Stat. § 160.80, subd.
1a. It makes various changes in the requirements for
businesses that advertise in the logo sign program. It sets
requirements for attractions that are authorized to advertise under section 2 of the bill. Effective Aug. 1, 2013.
• Trunk highway emergency relief account. Section
5 amends Minn. Stat. § 161.04, subd. 5. It allows funds
in the trunk highway emergency relief account to be
expended for operations and maintenance related to a
disaster. It removes a requirement that account interest
be credited to the account. Effective Aug. 1, 2013.
• Special account funds usage expanded. Section 9
amends Minn. Stat. § 161.1231, subd. 8. It expands the
permissible uses of funds from an account for parking
ramps owned by MnDOT at the terminus of I-394 in
Minneapolis. Uses would expand to include work on
MnPASS lanes and associated technology improvements
for users of the ramps. Effective Aug. 1, 2013.
• MnDOT encouraged to examine property. Section 9 adds a subdivision to Minn. Stat. § 161.44. It
encourages the commissioner of MnDOT to examine all real property owned by the state and under the
custodial control of the department to decide whether
any real property may be suitable for sale or some other
means of disposal. The commissioner may not sell or
otherwise dispose of property under this subdivision
unless: (1) an analysis has been performed of suitability of the property for bicycle or pedestrian facilities,
which must take into account any relevant non-motorized transportation plans or in the absence of such
plans, demographic and development factors affecting the region; and (2) the analysis demonstrates that
(i) the property is not reasonably suitable for bicycle or
pedestrian facilities, and (ii) there is not a likelihood of
facility development involving the property. The commissioner must report the findings under paragraph (a)
to the House of Representatives and Senate committees with jurisdiction over transportation policy and
finance by March 1 of each odd-numbered year. Effective Aug. 1, 2013.
• County State Aid Highway variance request process modified. Section 10 amends Minn. Stat. § 162.02,
subd. 3a. It modifies the process for requesting variances
from engineering standards for the county state-aid
highway system, to eliminate publication of the request
in the State Register and to only require hearings only
after request denial. Effective Aug. 1, 2013.
• Municipal State Aid Street variance request process modified. Section 11 amends Minn. Stat. § 162.09,
subd. 3a. It modifies the process for requesting variances
from engineering standards for the municipal state-aid
street system, to eliminate publication of the request in
the State Register and to only require hearings only
after request denial. Effective Aug. 1, 2013.
• Municipal State Aid money needs formula modified. Section 12 amends Minn. Stat. § 162.13, subd. 2.
It updates the statute by amending the calculation of
money needs to eliminate exclusion of certain county
roads with a combination designation across road jurisdictions, which is no longer used. Money needs are used
2013 Law Summaries
in a formula-based allocation of municipal state-aid
street funds among cities. Effective Aug. 1, 2013.
• Driving on bicycle lane to pass prohibited. Section 28 amends Minn. Stat. § 169.18, subd. 4. It prohibits a motor vehicle from passing on the right by driving
in a bicycle lane. (Under the traffic regulations in state
statutes, a “bicycle lane” is a portion of the roadway or
shoulder that is marked for use by bicyclists. Minn. Stat.
§ 169.011, subd. 5.) Effective Aug. 1, 2013.
• Driving on bicycle lane to park authorized. Section 29 amends Minn. Stat. § 169.18, subd. 7. It clarifies
that a motor vehicle may drive in a bicycle lane when
performing parking maneuvers. Effective Aug. 1, 2013.
• Crossing into bicycle lane authorization clarified. Section 30 amends Minn. Stat. § 169.19, subd. 1. It
modifies driving rules for making turns that cross into
an adjacent bicycle lane, so that a driver must (1) signal
prior to making the movement, (2) yield to bicycles, (3)
obey traffic control signs and markings. Effective Aug. 1,
2013.
• Bicycle passenger limits provided. Section 31
amends Minn. Stat. § 169.222, subd. 2. It modifies
requirements on bicycle passengers, including extending
limitations on number of passenger to apply to various
types of bicycles as well as trailers. Effective Aug. 1, 2013.
• Riding bicycle at right-hand curb exception provided. Section 32 amends Minn. Stat. § 169.222, subd.
4. It eliminates a requirement of riding a bicycle at the
right-hand curb or edge of the road, if riding in a shoulder or a bicycle lane. Effective Aug. 1, 2013.
• Bicycle equipment requirements modified. Section 33 amends Minn. Stat. § 169.222, subd. 6. It modifies
bicycle equipment regulations, including expanding lighting equipment that can be used to meet nighttime bicycle
lighting requirements, permitting coaster brakes, and
allowing a horn or bell on a bike. Effective Aug. 1, 2013.
• Stopping in bicycle lane prohibited. Section 35
amends Minn. Stat. § 169.34, subd 1. It prohibits stopping, standing, or parking in a bicycle lane, unless parking is authorized by posted signs. Effective Aug. 1, 2013.
• Disability parking alternative authorized. Section
36 adds a subdivision to Minn. Stat. § 169.346. It provides that, in the event the designated disability parking spaces are either occupied or unavailable, a vehicle
bearing a valid disability parking certificate issued under
Minn. Stat. § 169.345 or license plates for physically disabled persons under Minn. Stat. § 168.021 may park at
an angle and occupy two standard parking spaces. Effective Aug. 1, 2013.
• Disability parking signage requirement provided. Section 37 amends Minn. Stat. § 169.346, subd.
2. It requires, in the regulations on signage for disability
parking, that the parking signs be non-moveable, which
would no longer allow a sign that is moveable by authorized personnel. Effective Aug. 1, 2013.
Page 73
• School bus drivers prohibited from cell phone
usage while in traffic. Section 38 amends Minn. Stat.
§ 169.443, subd. 9. It amends a prohibition on using a
cell phone for personal reasons when operating a school
bus to include times when the vehicle is part of the flow
of traffic (such as at a stop light). Effective Aug. 1, 2013.
• Transportation ombudsperson required. Section
47 adds a subdivision to Minn. Stat. § 174.02. It creates a position of ombudsperson in MnDOT, codified in
statute. It outlines basic powers and duties of the position, sets reporting and appointment requirements, and
restricts the person from holding other positions within
the department as well as from charging a fee for services. Effective Aug. 1, 2013.
• Public-private partnership program authorized.
Section 50 creates Minn. Stat. § 174.45. It authorizes
the commissioner of MnDOT to establish a joint program office to oversee and coordinate activities to
develop, evaluate, and implement public-private partnerships involving public infrastructure investments. At
the request of the commissioner of MnDOT, the commissioner of Minnesota Management and Budget, the
commissioner of the Department of Employment and
Economic Development, the executive director of the
Public Facilities Authority, and other state agencies shall
cooperate with and provide assistance to the commissioner of MnDOT for activities related to public-private
partnerships involving public infrastructure investments.
• Railroad crossing warning sign requirements modified. Section 53 amends Minn. Stat. § 219.17. It amends
the types of uniform signs that can be placed at railroad
crossings, including allowing a yield sign and modifying
terminology for sign types. Effective Aug. 1, 2013.
• Railroad sign placement modified. Section 54
amends Minn. Stat. § 219.18. It decreases the maximum
distance from a railroad crossing that crossback signs
must be placed and maintained by railroads, from 75 to
50 feet. It provides that MnDOT can authorize a greater
distance. Effective Aug. 1, 2013.
• Yield signs at railroad crossings authorized. Section 55 amends Minn. Stat. § 219.20. It clarifies when
requirements apply for placing stop signs or yield signs at
railroad crossings, to exclude crossings that are equipped
with flashing lights or with lights and gates. Effective Aug.
1, 2013.
• Bus rapid transit system development authorized.
Section 59 adds a subdivision to Minn. Stat. § 398A.04
It provides that a regional rail authority may exercise
the powers conferred under this section to: plan, establish, acquire, develop, purchase, enlarge, extend, improve,
maintain, equip, regulate, and protect; and pay costs of
construction and operation of a bus rapid transit system
located within its county on transit ways included in and
Page 74
approved by the Metropolitan Council’s 2030 Transportation Policy Plan. This subdivision applies only to the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington. Effective May 25, 2013.
• Diversion pilot program sunset extended. Section 60 amends Laws 2009, chapter 59, article 3, section
4, subd. 9, as amended by Laws 2010, chapter 197, section 1, and Laws 2011, chapter 87, section 1, subd. 9. It
provides that a city or county participating in a diversion
pilot program may accept an individual for diversion
into the pilot program until June 30, 2017. The authority
had been set to expire on June 30, 2013. The section also
provides that the third party administering the diversion
program may collect and disburse fees collected pursuant to subd. 6, paragraph (a), clause (2), through Dec. 31,
2018, at which time the pilot program under this section
expires. This authority had been set to expire in 2014.
• Pedestrian skyway connection required for Central Station. Section 61 is a 2013 Session Law. It
requires the City of St. Paul to include construction or
establishment of access to a pedestrian skyway system as
part of the initial transit line construction of the Central Station on the Central Corridor light rail transit line.
The council and city must ensure that public access to
the pedestrian skyway system is provided by an elevator
located at the site of the station. Effective May 25, 2013.
(AF)
UTILTIES
Energy provisions in omnibus jobs act
Chapter 85 (*HF 729/SF 1057) is the omnibus jobs, economic development, housing, commerce, and energy bill.
It contains a number of sections changing electric utility
requirements and regulations, but they apply to investorowned utilities and not to municipal utilities. Some sections of interest to cities include:
• Article 8 makes fixes to the Property Assessed Clean
Energy (PACE) program that allow repayment to extend
for up to 20 years (previously limited at 10 years) and
clarifies that qualified projects must have been identified
in an energy audit as being cost-effective. Effective May
24, 2013.
• Article 10 includes new policy and requirements related
to solar energy. The new state solar power generation
goal of 10 percent by 2030 is found in section 3 and is a
statewide goal, so will include municipal electric utilities
to some extent. Effective July 1, 2013.
• Article 11 prioritizes and incentivizes solar panels made
in Minnesota in terms of meeting renewable energy and
CIP requirements for investor-owned utilities. Effective
May 24, 2013.
• Article 12 includes municipal power agencies as participants in planning groups required under sections 1 and
• Article 13, Section 1 increases the allowable duration
for guaranteed savings contracts done under MN State
§16C.144, subd. 2 on state buildings to 25 years (previously 15 years) to allow for deeper retrofits and more
renewable energy options. Effective July 1, 2013.
(CJ)
2013 Law Summaries
Page 75
BILLS VETOED BY THE GOVERNOR
VETOED: ENVIRONMENT
Legacy spending bill
Chapter 137 (*HF 1183/ SF 1051) allocates the money
from constitutionally-dedicated sales tax funds targeted to
environmental and cultural programs. Gov. Dayton eventu-
ally line-item vetoed two appropriations from the outdoor heritage fund that went against the recommendations
of the Lessard-Sams Outdoor Heritage Council. The two
vetoed line items were $6.3 million to metropolitan parks
in Subd. 5(i) and $3 million for aquatic invasive species
control in Subd. 5(j). (CJ)
BILLS THAT DID NOT BECOME LAW (DNBL)
DNBL-AID TO CITIES
Governor’s proposed changes to local government
aid program
In his budget recommendations released on Jan. 22, Gov.
Dayton proposed an appropriation increase and significant
reforms to the local government aid (LGA) program for
the 2014-2015 biennium. Under the governor’s proposal,
most of the current LGA formula would have been discarded. Each city’s need would have been computed using
an entirely new formula that includes three need factors: 1)
public safety/streets need based on population; 2) percentage of housing built before 1970; and 3) percentage of parcels that are tax-exempt.
The per capita dollars of need for each of the three
factors would have been added together to arrive at the
city’s total per capita need. The formula then compares
total per capita need multiplied by the city’s population
to the city’s capacity. If there is a gap between need and
capacity, the city would have received LGA. If capacity
exceeds need, the city would not have received LGA. The
formula included an initial $40 per capita increase for each
city currently receiving LGA. For many cities, that initial
increase would have been phased-down over the next four
years as the formula was implemented.
(GC)
DNBL-BONDING
House bonding bill
HF 270 (Rep. Alice Hausman, DFL-St. Paul) is the omnibus bonding bill, which contained approximately $850
million in bonding projects. The bill failed by a vote of
76-56, failing to obtain the constitutionally required threefifths majority for passage. The proposal contained nearly
$119 million in local government projects throughout the
state including: three regional civic centers in Mankato
($14.5 million), Rochester ($30 million), and St. Cloud
($10.8 million); the Children’s Museum in St. Paul ($14
million); $2.5 million for the Park Rapids Upper Mississippi Center; $1.5 million for a water main improvement
in Eveleth; and $250,000 for the Grand Rapids Regional
Arts Center.
Page 76
The proposal also included $30 million for supportive housing, $10 million for public housing rehabilitation;
$4 million for wastewater inflow & infiltration abatement
grants; $1 million to Pollution Control Agency for stormwater ponds (coal tar abatement); $8 million for clean and
drinking water match for USEPA capitalization grants; $20
million for Wastewater Infrastructure Fund (Public Facilities Authority); and $46.6 million for transportation projects, including the Local Bridge Replacement Program,
Local Road Improvements (includes TCAAP and Rochester), and Greater Minnesota Transit Assistance (St. Cloud).
(GC)
“Buy American” steel
HF 548/SF 318 (Rep. Carly Melin, DFL-Hibbing and Sen.
David Tomassoni, DFL-Chisholm) would have required
American steel products to be used for any project that
received public funds, including local or state tax revenue.
(PH)
DNBL-BUILDLING CODES
Residential sprinklers
A floor amendment to the Senate omnibus environment,
agriculture, commerce, energy, jobs and economic development bill (SF 1607) bill would have prohibited the State
Building Code, Fire Code, or local governments from
requiring the installation of fire sprinklers in new or existing single family homes. The prohibition was not adopted
by the conference committee and did not become law.
Gov. Dayton vetoed the same provision in 2011 and 2012.
(PH)
DNBL-DATA PRACTICES
Classification of license plate reader data
SF 385/HF 474 (Sen. Scott Dibble, DFL-Minneapolis and
Rep. Mary Liz Holberg, R-Lakeville) would have classified
license plate reader (LPR) data as private data under the
Minnesota Government Data Practices Act. Minnesota law
enforcement agencies use automated cameras to photograph license plates and compare the plate numbers to law
enforcement databases. In addition to classifying the data
as private, the bills set limits on how long law enforcement
agencies could retain data that did not result in a “hit” in
one of the databases. The House passed a bill requiring the
immediate destruction of non-hit data. The Senate bill,
passed by the Judiciary Committee, allowed non-hit data
to be retained for 90 days. The full Senate did not take up
the bill. (Note: LPR data is currently classified as private
data pursuant to a temporary classification issued by the
Information Policy Analysis Division of the Department
of Administration). Absent legislative action, the temporary
classification expires on Aug. 1, 2015. Law enforcement
agencies currently can retain non-hit data indefinitely.
(PH)
tricts to be used for any type of project if the municipality
finds the project will create new jobs in the state, including construction jobs, and the project otherwise would
not have begun before Jan. 1, 2014, without the assistance.
The additional authority expired on Dec. 31, 2012. The
bill would have reinstituted for 18 months the 2010 jobs
bill provision that allows the use of surplus tax increment
financing (TIF) increments to stimulate projects where
construction commences by Jan. 1, 2014 (Minn. Stat. §
469.176, subd. 4m). The authority to spend increments
would have expired on Dec. 31, 2012. (PH)
Unauthorized data access security policies and penalties
HF 183/SF 211 (Sen. Scott Dibble, DFL-Minneapolis and
Rep. Mary Liz Holberg, R-Lakeville) would have required
municipalities to adopt additional security policies to prevent the unauthorized access of private data by employees,
and would subject municipalities to statutory requirements
regarding the disclosure of data breaches that currently
apply to state agencies. As introduced, it also would have
instituted a new gross misdemeanor penalty for certain
data practices violations, and would have required public
entities to post the results of investigations of unauthorized
access to data on the entity’s website. The legislation was
introduced in response to reports and lawsuits regarding
unauthorized access of private data in the driver’s license
database maintained by the Department of Public Safety.
(PH)
Early voting
HF 334/SF 535 (Rep. Connie Bernardy, DFL-Fridley and
Sen. Katie Sieben, DFL-Newport), would have established an early voting system statewide. The bill would
have defined early voting as “voting in person before election day at the office of the county auditor or designated
municipal clerk.” The early voting option would have been
made available to any eligible voter for primary, general
and special elections for federal, state, or county offices.
(AL)
Creating an exception to the Open Meeting Law
for social media
HF 653/SF 527 (Rep. Duane Quam, R-Byron and Sen.
Kevin Dahle, DFL-Northfield) would have created an
exception to the Open Meeting Law for certain communications made by elected officials on social media, such as
Facebook or Twitter. The social media forums would have
to be open to the public, and the forums used by a government entity would have to be previously identified by the
council at a public meeting and publicly posted. Participation could not replace any required public hearing or
meeting, and could not be the sole means of deliberation
by the public body. (PH)
DNBL-ECONOMIC DEVELOPMENT
Jobs bill extension
SF 669/ HF 706 (Sen. Ann Rest, DFL-New Hope and
Rep. Mike Nelson, DFL-Brooklyn Center) would have
reinstituted a provision in the 2010 jobs bill (Minn. Stat. §
469.176, subd. 4c) that allows economic development dis-
2013 Law Summaries
DNBL-ELECTIONS
Ranked-choice voting
HF 367/SF 335 (Rep. Steve Simon, DFL-Hopkins and
Sen. Ann Rest, DFL-New Hope) would have allowed statutory cities to adopt and implement ranked-choice voting
(RCV) if approval by the city council. Currently, charter
cities are able to adopt RCV, and Minneapolis and St. Paul
have done so by referendum. RCV allows voters to rank
their candidate choices instead of choosing a single candidate for local, non-partisan races. (AL)
Felon voting
SF 164/HF 637 (Sen. Bobby Jo Champion, DFL-Minneapolis and Rep. Laurie Halverson, DFL-Eagan) is the bill
containing the recommendations from the Governor’s Task
Force on Election Integrity regarding felon voting rights
and notification. Several provisions were adopted into the
omnibus elections bills and are now law (see Chapter 131).
A key provision that did not become law was the requirement to notify the adult felon on probation of loss of voting rights in writing and signed by the individual. (AL)
June primary
HF 687/SF 898 (Rep. Steve Simon, DFL-Hopkins and
Sen. Jim Carlson, DFL-Eagan) would have changed the
state primary date from the second Tuesday in August to
the first Tuesday after the third Monday in June. (AL)
Page 77
DNBL-EMPLOYMENT LAW
Statewide teacher health insurance pool
HF 573/SF 446 (Rep. John Ward, DFL-Baxter and Sen.
Scott Dibble, DFL, Minneapolis) would have pooled
school employees into a statewide health plan. The proposal has been a high priority for Education Minnesota,
the association that represents public school teachers. Proponents for the legislation argued that a statewide pool
would lower health insurance premiums for all school
employees. Opponents argued that the measure, if enacted,
would raise costs for many school districts, which currently
have the option of negotiating with other districts as cooperatives. (AF)
Minimum wage
HF 92/SF 3 (Rep. Ryan Winkler, DFL-Golden Valley and
Sen. Chris Eaton, DFL-Brooklyn Center) would have
increased the Minnesota minimum wage for large employers (with business volume in excess of $625,000 per year)
from the current $6.15 per hour to $8.35 per hour on
Aug. 1, 2013; $9.45 per hour on Aug. 1, 2014; and $10.55
per hour on Aug. 1, 2015. Small employers (with business
volume under $625,000 per year) would see an increase
in the minimum wage from the current $5.25 per hour to
$6.50 per hour on Aug. 1, 2013; $7.75 per hour on Aug. 1,
2014; and $9 per hour on Aug. 1, 2015. Beginning on Jan.
1, 2016, the minimum wage amounts for both large and
small employers would be increased by the rate of inflation as measured by the consumer price index for all urban
consumers. (GC)
Pregnancy leave
HF 463 (Rep. Phyllis Kahn, DFL-Minneapolis) would
have required an employer to grant an unpaid leave not to
exceed 12 weeks to a female employee disabled by pregnancy, childbirth, or a related medical condition. The bill
would also have allowed an employee to utilize all available accrued vacation or sick leave during the leave. The
employer may require the employee to give reasonable
notice of the leave. The bill would have also required an
employer to provide reasonable accommodations related
to pregnancy, including but not limited to seating, frequent restroom breaks, and limits on heavy lifting. The
bill requires the employer to make accommodations
upon request of the employee and with the advice of a
health care provider. The bill also would have required an
employer to transfer a pregnant female employee to a less
strenuous or hazardous position, with the advice of a physician and upon her request, where the transfer can be reasonably accommodated. (GC)
Page 78
Prompt payment of wages
HF 748 (Rep. Steve Simon, DFL-St. Louis Park) would
have modified the prompt payment of wages requirements
in Minnesota Statutes, sections 181.13 and 181.14. Under
the bill, an employee who is being discharged or resigns
from employment must be paid all wages at the “regular
rate of pay or at the rate required by law, whichever rate is
greater.” This would likely come into play for cities if there
is a dispute about the “regular rate of pay” under the terms
of a union agreement or a personnel policy. “Regular rate
of pay” is not defined under the new law, but there is a
definition of “regular rate of pay” in the federal Fair Labor
Standards Act that includes nearly all forms of compensation except benefits and expense reimbursements. The
bill would have allowed “compensatory damages” equal
to the amount of wages that were earned and unpaid. The
employee’s demand for payment would not have needed to
be in writing or state the precise amount of unpaid wages.
The bill also would have clarified that employers cannot
make deductions from wages due at time of discharge for
lost, stolen, or damaged property of the employer, unless
the deduction is voluntarily authorized by the employee in
writing after the loss has occurred. (AF)
Overtime hour threshold
HF 763 (Rep. Jason Metsa, DFL-Virginia) that would have
reduced the overtime threshold to 40 hours from the current 48 hours. In most instances, this bill would not have
impacted cities because the federal threshold of 40 hours
is already required for most positions. However, because
of federal exemptions for seasonal/recreational establishments, there may have been some sectors of city employment impacted by the lower limit of 40 hours. Cities that
currently take advantage of this 48-hour limit for lifeguards
at beaches and outdoor swimming pools or for golf course
employees would have been subject to the same 40-hour
limit as other city employees. (GC)
DNBL-ENVIRONMENT
Water appropriation fee increase
HF 976 (Rep. Jean Wagenius, DFL-Minneapolis) included
an increase to water appropriation fees by $6.1 million
per year. Based on 2010 water use data, the fee would
have generated an additional $2.15 million from water
appropriation fees on municipal systems and an additional
$1.45 million from summer water use surcharges. Agricultural irrigation and golf courses would have seen their
rates increase by $725,000 and $425,000 respectively. The
remaining $1.4 million would have come from increases to
various industrial permits.
The bill would have also set residential water use fees
at $15 per million gallons. The size of the system would
have no longer resulted in a change to the base fee. Nonagricultural irrigation would have been charged $70 per
million gallons. Agricultural irrigation would have been
billed at $22 per million gallons, and other water uses
would have been charged $30 per million gallons. The
summer surcharge rate paid on the difference between
summer water use and January water use would have been
set at $75 per million gallons. The proposal would have
expanded the summer surcharge window to include May
and September in addition to the current June, July, and
August time period. These fees were not increased in the
final budget agreement, but the groundwater research they
were intended to finance was all funded through the general fund.
(CJ)
Silica sand mining
SF 786/no House companion (Sen. Matt Schmit, DFLRed Wing) would have created an organization similar to
the Iron Range Rehabilitation and Recovery Board, but
focused on silica mining. The legislation would have also
required the completion of a statewide Generic Environmental Impact Statement (GEIS), would have allowed the
extension of local moratoria beyond the normal statutory
limits, and would have allowed the Environmental Quality
Board (EQB) to veto government decisions on the need
for the completion of environmental impact statements
for any project. Other provisions related to silica sand that
were agreed to by local government organizations were
adopted at part of Chapter 114, the omnibus environment
and natural resources budget bill. (CJ)
Silica sand mining
HF 1336/SF 1487 (Rep. Rick Hansen, DFL-South St.
Paul/Sen. Matt Schmit, DFL-Red Wing) would have
imposed a tax of $1 per ton is imposed on the extraction of silica sand as well as a separate tax on the processing of silica sand, and this amount is equal to 3 percent of
the market value of the sand. Proceeds from the extraction
tax would have been appropriated to the Environmental
Quality Board. Proceeds from the production tax would
have been divided in equal parts and appropriated to the
commission of transportation for road maintenance, the
commissioner of natural resources for acquisition of certain lands, and to the Board of Water and Soil Resources to
acquire easements preventing mining in wellhead protection areas. (GC)
State shoreland rules
SF 1089/no House companion (Sen. Tom Saxhaug, DFLGrand Rapids) would grant legislative authority to the
Department of Natural Resources to restart its efforts to
revise statewide restrictions related to shoreland develop-
2013 Law Summaries
ment. Those rules had previously been completed in draft
form and sent to Gov. Pawlenty, who refused to allow
them to be adopted. The authority has since expired.
The language allowing that process to continue briefly
appeared as an amendment to a different Senate bill, but
was dropped due to a lack of support from the governor.
It is likely to be an issue discussed in upcoming legislative
sessions, as the rules have not been updated since the late
1980s. (CJ)
Legislative water commission
HF 1769/SF 1601 (Rep. Peter Fischer, DFL-Maplewood/
Sen. Bev Scalze, DFL-Little Canada) would recreate the
Legislative Water Commission, a joint legislative body
that was phased out in 1994. The group would meet during legislative interim periods to discuss water policy and
funding issues. The goal is to have a group of legislators
from both bodies thoroughly knowledgeable about complex water issues, and able to provide legislative leadership
on discussions related to those issues during legislative session debates and discussions. The bill is likely to be discussed next year as a potential supplemental budget item.
(CJ)
DNBL-LAND USE AND GROWTH MANAGEMENT
Annexation
HF 1425 (Rep. Andrew Falk, DFL-Murdock) would have
created a prohibition on annexation of any type occurring of a property that is subject to an orderly annexation agreement with any other city. The bill would have
also prohibited the use of annexation by ordinance if a
parcel has been subdivided from a parcel larger than 120
acres within the previous five years. The bill was first heard
many weeks after the policy committee deadline and was
laid aside by the chair without a vote being taken. It followed numerous unsuccessful attempts by the same legislative author to include specific provisions affecting or
canceling annexations occurring next to Ortonville in
other pieces of legislation. (CJ)
Partial discharge of easements
HF 752/SF 480 (Rep. Debra Hilstrom, DFL-Brooklyn
Center and Sen. Lyle Koenen, DFL-Clara City) amends
Minn. Stat. § 177.225 and would allow a property owner
to petition to have a portion of an easement taken through
condemnation discharged if a court finds that any portion
is not being used for the purpose for which it was taken.
The League, counties, and the Department of Transportation worked to prevent passage of this bill, which could
have resulted in numerous lawsuits over easements that
have been in place for decades. (PH/CJ)
Page 79
DNBL-PENSIONS AND RETIREMENT
Increase in police and fire pension aid
HF 857/SF 935 (Rep. Joe Atkins, DFL-Inver Grove
Heights and Sen. Sandy Pappas, DFL-St. Paul) would
have imposed a surcharge on various insurance premiums
to provide additional funding for the existing police and
fire pension state aid programs. Since reaching its peak of
$31.7 million in 2006, the revenues collected to fund the
fire state aid program have declined by nearly 31 percent,
or $10 million. Police state aid, which is funded by a tax
on automobile insurance premiums, reached its peak in
2009 at $63.3 million and has since declined to $59.9 million in 2012, or a drop of 5.4 percent. Under the bill, a $5
annual surcharge would have been applied to each new or
renewed homeowner insurance policy and a $5 surcharge
would have been applied to each automobile insurance
policy. The final omnibus tax bill included a $15.5 million annual state general fund appropriation that will fund
portions of the initiatives in this bill without using the surcharge mechanisms. (GC/PH/AF)
DNBL-PUBLIC FINANCE
Municipal bond interest exemption repeal
HF 1493/no Senate companion (Rep. Ann Lenczewski,
DFL-Bloomington) included a provision that would have
removed the tax exempt status of municipal bonds. Without the tax benefits, interest rates would have increased in
order to be competitive with other bonds and to attract
investors. The increase in bond payments would have
increased the cost of construction projects funded by the
bonds, and that cost would flow to local taxpayers. (GC)
DNBL-PUBLIC SAFETY
Photo-cop
HF 487/SF 377 (Rep. Alice Hausman, DFL-St. Paul and
Sen. John Pederson, R-St. Cloud) would have given local
units of government the authority to use traffic cameras
to enforce red light violations. The bill would have also
authorized a vendor to contract with a local unit of government to capture images of red light runners, review
them, and forward them to the local law enforcement
agency. (AF)
DNBL-TAXES
Nonprofits exempted from city fees and service
charges
SF 1050/HF 781 (Sen. Chris Eaton, DFL-Brooklyn
Center and Rep. Mike Nelson, DFL-Brooklyn Center)
would have exempted institutions of public charity, such
Page 80
as defined in Minn. Stat., section 272.02, subdivision 7,
(churches, universities and colleges were not covered by
the bill) from paying fees or charges imposed by a city if
that fee or charge was for a service provided by the city,
and within the most recent five years, the service had been
paid for in whole or in part from revenue raised from the
city’s property tax levy. The definition would have likely
impacted storm sewer charges and street lighting charges
but it could have also impacted special assessments, water
and sewer charges, waste hauling charges, and other current service charges. In addition, even if a service provided
by a city had been largely paid by fees or charges, any use
of property taxes within the past five years to fund that
service would have triggered the exemption for nonprofit
organizations. (GC)
Levy authority to Southeast Minnesota Multicounty
Housing and Redevelopment Authority
SF 896/HF 1027(Sen. LeRoy Stumpf, DFL-Plummer and
Debra Kiel, R-Crookston) would have given the Southeast Minnesota Multicounty Housing and Redevelopment
Authority levy authority similar to the authority previously granted to the Northwest Minnesota Multicounty
Housing and Redevelopment Authority. Effective beginning with taxes payable in 2014 and through taxes payable
in 2019, the Southeast Minnesota Multicounty Housing
and Redevelopment Authority (HRA) would have been
allowed to levy up to 25 percent of its total levy authority
on its own and without the approval of the city or county
in which the authority operates. The remaining 75 percent
of the HRA’s permitted levy would have still required the
approval of two-thirds majority of all its members in order
to levy property taxes as permitted under Minn. Stat. §
469.033. (HC/GC)
Labor peace agreement
HF 1765/SF 1614 (Rep. Mike Nelson, DFL-Brooklyn
Park and Sen. Kari Dziedzic, DFL-Minneapolis) would
have required any public-funded project in Hennepin,
Ramsey, St. Louis, and Olmsted counties that employs hospitality workers to enter into a “labor peace agreement” as
a condition of accepting any public funds. The bill would
have applied to construction and development of a hotel,
sports facility, convention center, or cultural facility with
catering or cafeteria facilities. The provision was also carried in the House omnibus tax bill but was not included in
the final tax conference committee report. A labor peace
agreement is an agreement between a developer and a
labor organization seeking to represent hospitality workers on qualifying projects. The labor organization agrees
not to picket or otherwise disrupt work on the project,
in exchange for establishing a process for determining
employee preference regarding union representation. Labor
peace agreements have been used on individual projects,
such as the Vikings Stadium, and have been adopted as
municipal ordinances. Minneapolis has a labor peace ordinance, although the provisions differ from those in the proposed legislation. (GC)
Sales tax base broadening to clothing
SF 9/no House companion (Sen. Ann Rest, DFL-New
Hope) would have limited the clothing sales tax exemption
to the first $200 of any article of clothing. SF 11 (Sen. Ann
Rest, DFL-New Hope) would have eliminated the clothing sales tax exemption entirely and replaced it with an
income tax refund system. (GC)
Homeowner property tax refund
SF 552/HF 677 (Rod Skoe, DFL-Clearbrook and Ann
Lenczewski, DFL-Bloomington) as introduced included
Gov. Dayton’s proposed new property tax rebate for all
Minnesota homesteads. The homeowner property tax
rebate would have been equal to the lesser of $500 or 100
percent of the homestead’s previous-year property tax bill.
According to the budget document, there are approximately 1.5 million homesteads in Minnesota, and an estimated 95 percent of those homesteads would receive the
maximum $500 rebate. The other 5 percent of eligible
homeowners would have 100 percent of their previous
year’s property tax bill paid via the state rebate. (GC)
Gov. Dayton’s tax recommendations
SF 552/HF 677 (Rod Skoe, DFL-Clearbrook and Ann
Lenczewski, DFL-Bloomington) as introduced were the
governor’s budget tax recommendations that included
a new fourth tier income tax bracket; modifications to
the corporate franchise tax; a sales tax rate reduction and
base expansion to services, higher-value clothing, digital
goods, and Internet commerce; and a new LGA formula
with an increased appropriation. Note that these bills were
amended to become the House and Senate omnibus tax
bills. (GC)
Tax hearing and notification law changes
HF 1570/no Senate companion (Rep. Paul Marquart,
DFL-Dilworth) would have repealed the current parcelspecific preliminary tax notice and in its place would have
required local governments with a population over 2,500
to hold an additional public hearing prior to adopting its
proposed levy. Affected cities would have been required
to publish a “preliminary proposed budget” prior to Sept.
1, and then required to hold a public hearing after Sept.
1, but before the proposed levy is adopted, which under
current law must occur by Sept. 15. The bill would have
required that the preliminary proposed budget be published on the city website, and the public hearing may not
start before 6 p.m., must allow for the public to testify,
must be distributed electronically via television or over the
2013 Law Summaries
Internet, and must allow for public input electronically via
e-mail or social media. (GC)
Tax hearing and notification law changes
HF 1724/SF 1563 (Rep. Jim Davnie, DFL-Minneapolis
and Sen. Rod Skoe, DFL-Clearbrook) would have required
that each taxing district provide the following information
at an publicly-noticed hearing prior to Sept. 1, including
the estimated proposed levy, prior final levy, and percent
change; the tax rate for the estimated proposed levy, current tax rate, and percent change; a statement of reason for
the increase or decrease, “including the four most significant factors resulting in the change, and an accounting
of the distribution of levy proceeds from the prior year.
Unlike the Marquart proposal above, HF 1724 would not
have repealed the parcel-specific notice required by current law. (GC)
Local Sales Tax Bills
• Walker sales tax. SF 15/HF 39 (Senator Tom Saxhaug,
DFL-Grand Rapids and Rep. John Persell, DFL-Bemidji) would have authorized the City of Walker to impose
up to a 1.5 percent general sales tax to fund underground utility, street, curb, gutter and sidewalk improvements. The bill would have also authorize the city to
issue bonds of up to $20 million to pay capital and
administrative costs related to the improvements. (GC)
• Windom sales tax. HF 1417/SF 1207 (Rep. Rod
Hamilton, R-Mountain Lake and Sen. Bill Weber,
R-Luverne) would have authorized the City of Windom
to impose up to a 0.5 percent local sales tax to fund the
costs of public facilities and the option for capitalization of a revolving loan fund for the Windom Economic
Development Authority. (GC)
• Bemidji lodging. SF 701/HF 1037 (Sen. Tom Saxhaug,
DFL-Grand Rapids and John Persell, DFL-Bemidji)
would have authorized the City of Bemidji to impose a
local lodging tax to fund the costs of operation, maintenance, and capital replacement costs for the Sanford
Center. (GC)
DNBL-TELECOMMUNICATIONS
Telecommunications regulation changes
SF 584/HF 985 is a modernization and update to various sections in Minn. Stat. § 237, Minnesota’s telecommunications statute. The bill defines “advanced services,”
“basic services,” “competitive local exchange carrier,” and
“wholesale telecommunications service.” The bill also
transfers the regulatory duties from the Department of
Commerce to the Public Utilities Commission. Furthermore, the bill outlines the regulation of local exchange
carriers and advanced service providers to combine local
access surcharge requirements.
Page 81
The bill received an informational hearing in the
House after committee deadlines and is expected to be
heard in the 2014 legislative session.
(LZ)
DNBL-TRANSPORTATION
Municipal street improvement district authority
HF 745/SF 607 (Rep. Ron Erhardt, DFL-Edina and Sen.
Jim Carlson, DFL-Eagan) would have allowed cities to collect fees from property owners within a district to fund
municipal street maintenance, construction, reconstruction, and facility upgrades. The street improvement district
authority legislation was modeled after Minnesota Statutes,
§ 435.44, which allows cities to establish sidewalk improvement districts. The authority would have provide a funding mechanism that establishes a clear relationship between
who pays fees and where projects occur, but stops short of
the benefit test that sometimes makes special assessments
vulnerable to legal challenges. As introduced, it also did not
prohibit cities from collecting fees from tax-exempt properties within a district, and the tool could have been used
to mitigate or eliminate the need for special assessments.
A modified version of the authority was included in
the initial version of the House omnibus tax bill, but the
provision was not included in the final tax conference
committee report.
(AF)
Sales tax on gasoline
SF 1173 (Sen. Scott Dibble, DFL-Minneapolis) included
a new sales tax at the fuel distributor level—which was
suggested by transportation advocates, including the Minnesota Transportation Alliance. Proponents of the distributor tax argue that gas tax revenues are declining and any
increase in the per-gallon tax would not only fail to keep
up with inflation, but would decline as fuel consumption is
projected to decrease. The proposal would have decreased
the current 25-cent-per-gallon fuel tax by 6 cents per gallon, and replace that tax with a 5.5 percent gross receipts
tax on distributors. Due to the fact that the sales tax is
a percentage of the price of gasoline, the revenue will
increase automatically as the price increases. (AF)
Mini-trucks
HF138/SF 67 (Rep. Bud Nornes, R-Fergus Falls and
Sen. Bill Ingebrigtsen, R-Alexandria) would have allowed
operation of mini-trucks on local roads as passenger automobiles. Although the bill would have provided that a local
road authority may by ordinance prohibit the operation of
a mini-truck on streets and highways under the local road
authority’s jurisdiction, local jurisdictions would no longer
have had the authority to issue permits for mini-truck use.
(AF)
Gas tax increase
Transportation advocates hoped the Senate’s more substantive funding package would prevail, but that hope
faded over the final weekend of the session. Transportation
advocates had held out hope that a transportation funding
package passed by the Senate on May 10 would prevail in
conference committee. It included an increase in both the
metro area sales tax for transit purposes and the state gas
tax. Instead, the conference committee report contained a
hefty bonding provision, new taxing authority for counties,
and a change in distribution of motor vehicle leased sales
tax revenue. (AF)
Page 82
Appendix A: Estimate Your 2014 Levy Limit
How to Estimate Your City’s 2014 Levy Limit
Preliminary and subject to final review by the MN Department of Revenue (revised 6/12/2013)
The 2013 legislature enacted a one-year levy limit for cities over 2,500 population that will cover levies
established by cities this fall for collection in 2014. The language on levy limits is contained in the final tax bill
of the 2013 session, Chapter 143 (HF 677) and amended in Chapter 144 (SF 1664). This fact sheet is intended
to provide an initial description of the levy limit for planning purposes.
Timeline: Cities will be required to provide the Department of Revenue (MDoR) with the information
needed to calculate levy limits. The first data request will be due July 20th, and there will be other
exchanges of information needed throughout the year. The Minnesota Department of Revenue (MDoR) will
be certifying levy limits by September 1, 2013. Cities, in turn, will be required to report by Sept. 30 to MDoR
the maximum amount it plans to levy for special levies. DOR will certify the allowed special levies by
December 10.
Please note that the levy limit exemption that is provided by participation in local performance measurement
and reporting under Minn. Stat. § 6.91 does not apply under this one-year levy limit.
Calculation:
Step 1: Calculate your allowable special levies for taxes payable in 2012 and 2013. The list of special levies
available under this one-year levy limit are a subset of the special levies available under previous levy limits.
These special levies are not covered by the levy limit and include levies:
(1) to pay the costs of the principal and interest on bonded indebtedness or to reimburse for the amount of
liquor store revenues used to pay the principal and interest due on municipal liquor store bonds in the year
preceding the year for which the levy limit is calculated;
(2) to pay the costs of principal and interest on certificates of indebtedness issued for any corporate purpose
except for the following:
(i) tax anticipation or aid anticipation certificates of indebtedness;
(ii) certificates of indebtedness issued for shortages in the taconite tax distribution under Minn. Stat.
§ 298.28 and Minn. Stat. § 298.282;
(iii) certificates of indebtedness used to fund current expenses or to pay the costs of extraordinary
expenditures that result from a public emergency; or
(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an insufficiency in
other revenue sources, provided that nothing in this subdivision limits the special levy authorized
under Minn. Stat. § 475.755;
(3) to provide for the bonded indebtedness portion of payments made to another political subdivision of the
state of Minnesota;
(4) to fund payments made to the Minnesota State Armory Building Commission under Minn. Stat.
§193.145, subd. 2, to retire the principal and interest on armory construction bonds;
2013 Law Summaries
Page 83
Page 2
Appendix A: Estimate Your 2014 Levy Limit
(5) to pay the expenses reasonably and necessarily incurred in preparing for or repairing the effects of
natural disaster including the occurrence or threat of widespread or severe damage, injury, or loss of life or
property resulting from natural causes, in accordance with standards formulated by the Emergency Services
Division of the state Department of Public Safety, as allowed by the commissioner of revenue under Minn.
Stat. § 275.74, subdivision 2;
(6) to pay an economic development abatement under Minn. Stat. § 469.1815;
(7) for purposes of a storm sewer improvement district under Minn. Stat. § 444.20;
Step 2: Calculate your initial levy limit base. Take the greater of: payable 2012 certified net tax capacity levy
plus certified 2012 LGA minus any payable 2012 amounts that would qualify as special levies OR payable
2013 certified net tax capacity levy plus 2013 certified LGA minus any 2013 amounts that would qualify as
special levies. (Note that for metro cities and cities on the Iron Range, the certified levy is the amount of levy
before accounting for any fiscal disparities).
Step 3: Calculate your final levy limit base. Increase your initial levy limit base from Step 2 by 3 percent
(multiply by 1.03).
Step 4: Calculate your levy limit. The levy limit equals your city’s final levy limit base plus any voterapproved levies to exceed the levy limit under Minn. Stat. § 275.73 minus the total LGA you are certified to
receive in 2014. (Note that no city’s final levy limit can be lower than the greater of 2012 or 2013 certified
net tax capacity levies).
Step 5: In addition to the amount of the levy limit, a city can levy amounts needed in 2014 for the special
levies identified in Step 1. These are above and beyond the limited portion of the city’s levy.
•
•
•
•
•
•
•
•
•
•
•
•
A simple example of estimating a levy limit:
2012 certified levy ..................................................................................................................$350,000
Plus 2012 LGA ........................................................................................................................ +$50,000
Minus 2012 levy that would have been special levies................................................................ -$25,000
2012 Total ..............................................................................................................................$375,000
2013 certified levy ..................................................................................................................$375,000
Plus 2013 LGA ........................................................................................................................+ $55,000
Minus 2013 levy that would have been special levies................................................................- $30,000
2013 Total ..............................................................................................................................$400,000
Initial levy limit base (greater of 2012 or 2013).........................................................................$400,000
Final Levy limit base (initial levy limit base X 1.03) ....................................................................$412,000
2014 LGA ............................................................................................................................... $75,000
Levy limit (final levy limit base minus 2014 LGA but not less than the greater of 2012 or 2013 certified levy) ..$375,000
2014 tax year special levies which can be levied above the limit................................................ $35,000
2014 total levy (limited portion plus special levies)……………………………………………………………………$410,000
Note: voter approved levies assessed against referendum market value can also be added as special levies.
Questions on levy limits?
Contact : Gary Carlson at (651) 281-1255 or [email protected] or
Rachel Walker at (651) 281-1236 or [email protected]
Page 84
Appendix B: City LGA Amounts 2013 and 2014
2014 LGA Estimates
(Based on estimates prepared by the House Research Department)
Governor Dayton signed the 2013 omnibus tax bill into
law as Chapter 143 on May 23, 2013. This chapter contains the first significant reform to the LGA program since
2003 as well as an increase to the appropriation for city aid
payments.
For 2014, the LGA distribution will be at $507.6
million, an $80.1 million increase over the 2013 certified level. In both 2015 and 2016, the appropriation grows
by an additional $1.5 million (to $509.1 million and to
$511.6 million respectively). Beyond 2016, the distribution
is currently set to remain at $511.6 million. For comparison, in 2002 when LGA received the highest level of state
funding, the formula distributed $565 million to cities
across the state.
The LGA calculation will continue to utilize a comparison of each city’s “need” as measured by a variety of
demographic factors with its “capacity” as measured by the
city’s adjusted net tax capacity multiplied by the statewide
average city tax rate. If a city is unable to fund its defined
“need” based on its defined “capacity,” the city will receive
LGA. The amount of that need-capacity gap that is filled
depends on the overall size of the pool of money to be
distributed. The share of the gap filled by LGA is the same
for all cities that receive LGA. If a city has no gap or if
capacity exceeds its need, the city will not receive LGA.
The changes to the formula made in the 2013 tax bill
focus largely on defining city need.
The LGA formula will now include three calculations
of need based on city size.
• For cities under 2,500 population: each city’s need is
simply a per capita amount starting at $410 per capita
and increasing to $630 per capita as city population size
increases.
• For cities between 2,500 and 10,000 population: three
factors will be used in the calculation of city need; 1)
the percent of the city’s housing stock built before 1940,
2) the average household size, and 3) the population
decline (percentage) from the city’s peak population of
the last forty years.
2013 Law Summaries
• For cities over 10,000 population: four factors will be
used in the calculation of city need; 1) the number of
jobs per capita, 2) the age of housing stock (defined as
the percent of housing built before 1940, 3) the percent
of housing built between 1940 and 1970, and 4) a sparsity adjustment for cities with less than 150 residents per
square mile.
For 2014 only, no city can receive less LGA than it
is set to receive in 2013. Beginning with aid payments in
2015, city aid amounts can decrease if a city’s current year
LGA exceeds its calculated need. Similar to recent formulas, there are limits to how much a city’s aid can decrease:
the lesser of 5 percent of the previous year’s levy or $10
per capita.
Columns in the spreadsheet
Column 1: City 2011 population from the state
demographer
Column 2: Certified 2013 LGA amount
Column 3: Estimate of 2014 LGA without the changes
made by the 2013 tax bill
Column 4: Estimate of 2014 LGA under Chapter 143 (the
omnibus tax bill)
Column 5: Change from 2013 certified to 2014 estimate
under Chapter 143
Prepared by LMC with data from House Research
Page 85
2011 Population
Page 86
1,710
792
1,208
2,887
2,160
430
2,590
17,994
100
7,114
662
48
12,920
116
492
366
533
30,847
3,280
17,331
49,801
1,403
74
9,381
643
2,231
448
363
1,131
522
1,679
24,803
143
1,403
1,465
246
369
1,404
645
2,588
614
414
16
877
1,111
7,620
3,525
230
181
298
4,581
91
748
6,621
571,600
208,384
362,303
0
732,618
48,881
627,315
4,724,618
28,357
0
145,081
6,423
1,204,947
35,367
43,918
55,149
125,545
0
260,224
901,095
0
876,061
24,655
0
197,165
636,892
102,139
64,584
237,341
98,560
605,415
7,122,450
26,223
209,935
299,542
28,410
100,302
384,402
198,557
655,766
128,897
57,809
2,476
42,044
289,939
0
335,228
74,065
12,520
40,424
0
19,645
180,345
54,473
2014 LGA
–old law
554,500
200,464
350,223
0
711,018
45,050
601,415
4,544,678
27,521
0
138,461
6,245
1,075,747
34,207
41,855
54,003
120,215
47,632
227,424
1,486,706
0
862,031
23,915
0
190,735
614,582
97,659
61,688
254,002
95,402
588,625
6,874,420
24,793
233,012
286,671
26,619
96,612
382,233
192,107
629,886
123,497
59,776
2,351
53,195
278,829
0
299,978
71,765
10,710
39,937
0
18,735
172,865
21,799
2014 LGA
–Ch 143
608,356
242,067
402,591
0
751,451
64,597
688,864
5,158,700
28,357
79,647
176,337
7,012
1,463,774
35,810
65,612
72,853
140,679
74,651
392,480
1,547,441
0
876,061
24,655
0
217,106
714,403
114,761
76,684
289,779
116,671
634,982
7,878,815
26,223
261,866
347,806
28,661
108,959
435,634
218,927
754,097
152,226
73,696
2,476
74,206
297,714
0
483,255
74,065
12,520
48,215
0
19,921
211,021
267,356
Change
+36,756
+33,683
+40,288
+0
+18,833
+15,716
+61,549
+434,082
+0
+79,647
+31,256
+589
+258,827
+443
+21,694
+17,704
+15,134
+74,651
+132,256
+646,346
+0
+0
+0
+0
+19,941
+77,511
+12,622
+12,100
+52,438
+18,111
+29,567
+756,365
+0
+51,931
+48,264
+251
+8,657
+51,232
+20,370
+98,331
+23,329
+15,887
+0
+32,162
+7,775
+0
+148,027
+0
+0
+7,791
+0
+276
+30,676
+212,883
2011 Population
BELLECHESTER
BELLINGHAM
BELTRAMI
BELVIEW
BEMIDJI
BENA
BENSON
BERTHA
BETHEL
BIG FALLS
BIG LAKE
BIGELOW
BIGFORK
BINGHAM LAKE
BIRCHWOOD
BIRD ISLAND
BISCAY
BIWABIK
BLACKDUCK
BLAINE
BLOMKEST
BLOOMING PRAIRIE
BLOOMINGTON
BLUE EARTH
BLUFFTON
BOCK
BORUP
BOVEY
BOWLUS
BOY RIVER
BOYD
BRAHAM
BRAINERD
BRANDON
BRECKENRIDGE
BREEZY POINT
BREWSTER
BRICELYN
BROOK PARK
BROOKLYN CENTER
BROOKLYN PARK
BROOKS
BROOKSTON
BROOTEN
BROWERVILLE
BROWNS VALLEY
BROWNSDALE
BROWNSVILLE
BROWNTON
BRUNO
BUCKMAN
BUFFALO
BUFFALO LAKE
BUHL
176
167
107
383
13,528
118
3,223
498
466
235
10,164
236
443
125
870
1,032
113
987
797
58,331
158
1,993
83,671
3,348
206
106
113
801
292
47
174
1,812
13,606
491
3,377
2,388
470
368
139
30,204
76,238
142
141
745
791
583
677
462
759
102
277
15,580
723
998
2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
17,774
61,143
25,817
103,367
2,906,194
27,257
776,650
132,871
35,117
67,827
156,014
49,185
80,363
26,063
0
370,344
12,234
263,385
205,021
0
16,533
647,677
0
1,535,819
32,101
15,437
17,772
251,002
36,888
4,648
65,766
465,196
3,637,320
86,841
1,168,004
0
180,836
122,801
17,784
411,378
0
28,524
6,665
138,694
206,697
357,430
168,304
58,162
230,476
17,945
18,509
145,886
203,623
326,569
16,989
59,473
24,747
99,537
2,770,914
26,141
744,420
127,891
34,819
65,477
491,839
47,268
75,933
24,813
0
360,024
12,555
253,515
197,051
0
15,307
627,747
0
1,502,339
31,431
15,010
17,777
242,992
37,622
4,549
64,026
475,202
3,501,260
82,202
1,134,234
0
176,478
119,121
16,525
1,317,891
1,441,081
27,610
6,626
136,839
198,787
351,600
162,065
55,206
222,886
16,925
21,212
711,067
196,393
316,589
21,312
61,143
25,817
114,645
3,211,265
29,545
947,350
149,117
46,105
70,673
481,526
55,154
94,302
26,063
0
388,605
16,048
263,385
238,784
0
19,001
695,248
403,931
1,772,985
36,201
16,169
20,957
274,750
48,049
6,722
65,766
549,404
4,019,514
99,765
1,442,079
0
180,836
127,624
20,633
1,352,393
1,022,502
30,220
11,105
170,024
237,343
357,430
199,427
65,697
264,769
18,404
28,598
636,249
225,545
354,761
+3,538
+0
+0
+11,278
+305,071
+2,288
+170,700
+16,246
+10,988
+2,846
+325,512
+5,969
+13,939
+0
+0
+18,261
+3,814
+0
+33,763
+0
+2,468
+47,571
+403,931
+237,166
+4,100
+732
+3,185
+23,748
+11,161
+2,074
+0
+84,208
+382,194
+12,924
+274,075
+0
+0
+4,823
+2,849
+941,015
+1,022,502
+1,696
+4,440
+31,330
+30,646
+0
+31,123
+7,535
+34,293
+459
+10,089
+490,363
+21,922
+28,192
Appendix B: 2014 LGA Estimates
ADA
ADAMS
ADRIAN
AFTON
AITKIN
AKELEY
ALBANY
ALBERT LEA
ALBERTA
ALBERTVILLE
ALDEN
ALDRICH
ALEXANDRIA
ALPHA
ALTURA
ALVARADO
AMBOY
ANDOVER
ANNANDALE
ANOKA
APPLE VALLEY
APPLETON
ARCO
ARDEN HILLS
ARGYLE
ARLINGTON
ASHBY
ASKOV
ATWATER
AUDUBON
AURORA
AUSTIN
AVOCA
AVON
BABBITT
BACKUS
BADGER
BAGLEY
BALATON
BARNESVILLE
BARNUM
BARRETT
BARRY
BATTLE LAKE
BAUDETTE
BAXTER
BAYPORT
BEARDSLEY
BEAVER BAY
BEAVER CREEK
BECKER
BEJOU
BELGRADE
BELLE PLAINE
2013 LGA
2011 Population
2013 Law Summaries
Page 87
60,664
144
586
4,952
2,851
236
366
8,194
159
1,781
4,082
346
499
861
3,831
764
45
629
3,804
362
23,223
267
23,247
24,002
2,784
110
4,974
4,997
392
4,922
1,349
550
682
857
701
550
521
1,749
152
717
267
445
111
159
12,144
160
36
2,706
2,721
4,040
1,977
1,531
19,619
3,919
0
27,162
160,498
136,035
832,011
34,220
118,691
426,004
58,644
664,915
469,740
78,420
47,513
226,274
40,299
411,951
5,968
26,951
0
127,725
0
68,662
0
37,441
666,960
0
0
2,711,002
119,050
152,142
358,536
153,171
157,119
344,785
165,361
23,234
146,914
209,623
33,903
124,558
43,962
137,750
16,870
22,120
1,968,020
0
3,505
0
435,043
456,875
351,624
149,495
895,180
0
2014 LGA
–old law
0
26,124
154,638
95,100
803,501
32,208
115,031
538,638
57,054
647,105
428,920
74,960
55,451
217,664
1,989
404,311
5,847
23,724
0
124,105
392,715
65,992
0
310,374
639,120
0
0
2,661,032
115,130
168,545
345,046
147,671
150,299
336,215
159,628
28,465
141,704
262,846
32,494
119,058
41,292
133,300
17,721
21,618
1,846,580
0
3,381
0
407,833
416,475
397,364
169,273
819,007
0
2014 LGA
–Ch 143
85,825
31,076
187,035
257,063
936,661
41,902
120,051
689,424
58,644
702,405
616,263
86,599
71,454
251,382
68,063
411,951
6,378
37,282
53,441
133,908
237,521
68,662
0
462,648
751,019
0
122,925
3,063,733
125,027
314,421
396,078
158,316
192,829
356,735
194,227
43,154
161,596
272,862
35,504
153,988
53,856
149,108
20,075
23,664
2,299,108
0
3,505
0
556,239
590,142
390,663
193,122
1,404,151
0
Change
+85,825
+3,914
+26,537
+121,028
+104,650
+7,682
+1,360
+263,420
+0
+37,490
+146,523
+8,179
+23,941
+25,108
+27,764
+0
+410
+10,331
+53,441
+6,183
+237,521
+0
+0
+425,207
+84,059
+0
+122,925
+352,731
+5,977
+162,279
+37,542
+5,145
+35,710
+11,950
+28,866
+19,920
+14,682
+63,239
+1,601
+29,430
+9,894
+11,358
+3,205
+1,544
+331,088
+0
+0
+0
+121,196
+133,267
+39,039
+43,627
+508,971
+0
COMFREY
COMSTOCK
CONGER
COOK
COON RAPIDS
CORCORAN
CORRELL
COSMOS
COTTAGE GROVE
COTTONWOOD
COURTLAND
CROMWELL
CROOKSTON
CROSBY
CROSSLAKE
CRYSTAL
CURRIE
CUYUNA
CYRUS
DAKOTA
DALTON
DANUBE
DANVERS
DARFUR
DARWIN
DASSEL
DAWSON
DAYTON
DEEPHAVEN
DEER CREEK
DEER RIVER
DEERWOOD
DEGRAFF
DELANO
DELAVAN
DELHI
DELLWOOD
DENHAM
DENNISON
DENT
DETROIT LAKES
DEXTER
DILWORTH
DODGE CENTER
DONALDSON
DONNELLY
DORAN
DOVER
DOVRAY
DULUTH
DUMONT
DUNDAS
DUNDEE
DUNNELL
2011 Population
2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
382
94
147
574
61,766
5,390
34
467
34,828
1,212
606
238
7,878
2,389
2,158
22,168
231
334
287
320
253
496
96
109
351
1,473
1,533
4,743
3,643
323
929
534
112
5,510
177
69
1,064
37
212
192
8,716
340
4,075
2,688
42
240
55
741
57
86,256
97
1,402
68
165
99,593
16,780
19,961
156,578
0
0
8,253
128,232
0
259,768
61,726
24,038
3,056,748
756,240
0
1,455,066
68,556
2,164
75,669
34,858
47,177
133,480
9,517
38,379
37,512
301,387
540,099
0
0
57,092
281,538
2,495
24,544
0
48,781
15,650
0
234
8,798
41,956
690,536
70,342
493,847
624,915
4,638
50,497
12,030
93,649
13,705
27,437,478
19,699
87,420
21,200
61,112
95,773
16,119
18,491
150,838
497,492
0
7,913
123,562
0
247,648
59,320
22,976
2,977,968
732,350
0
1,233,386
66,246
1,171
72,799
34,153
44,978
128,520
8,987
37,292
36,836
319,469
524,769
0
0
54,497
272,248
3,091
23,862
68,751
47,011
14,960
0
234
10,630
40,791
603,376
66,942
453,097
598,035
4,444
48,477
11,505
90,079
13,192
27,137,478
18,729
144,119
20,520
59,462
105,802
16,780
24,200
160,936
934,494
10,454
8,280
141,232
59,623
293,138
75,819
26,305
3,512,390
814,739
0
1,643,820
69,999
7,755
81,155
41,819
55,156
147,646
9,517
38,379
46,516
359,721
575,227
30,581
0
66,317
308,879
10,833
24,544
177,696
48,781
15,650
0
234
10,617
44,787
782,184
72,139
603,803
682,356
4,844
54,194
13,133
129,012
13,705
29,030,564
19,699
149,681
21,200
61,112
+6,209
+0
+4,239
+4,358
+934,494
+10,454
+27
+13,000
+59,623
+33,370
+14,093
+2,267
+455,642
+58,499
+0
+188,754
+1,443
+5,591
+5,486
+6,961
+7,979
+14,166
+0
+0
+9,004
+58,334
+35,128
+30,581
+0
+9,225
+27,341
+8,338
+0
+177,696
+0
+0
+0
+0
+1,819
+2,831
+91,648
+1,797
+109,956
+57,441
+206
+3,697
+1,103
+35,363
+0
+1,593,086
+0
+62,261
+0
+0
BURNSVILLE
BURTRUM
BUTTERFIELD
BYRON
CALEDONIA
CALLAWAY
CALUMET
CAMBRIDGE
CAMPBELL
CANBY
CANNON FALLS
CANTON
CARLOS
CARLTON
CARVER
CASS LAKE
CEDAR MILLS
CENTER CITY
CENTERVILLE
CEYLON
CHAMPLIN
CHANDLER
CHANHASSEN
CHASKA
CHATFIELD
CHICKAMAW BEACH
CHISAGO CITY
CHISHOLM
CHOKIO
CIRCLE PINES
CLARA CITY
CLAREMONT
CLARISSA
CLARKFIELD
CLARKS GROVE
CLEAR LAKE
CLEARBROOK
CLEARWATER
CLEMENTS
CLEVELAND
CLIMAX
CLINTON
CLITHERALL
CLONTARF
CLOQUET
COATES
COBDEN
COHASSET
COKATO
COLD SPRING
COLERAINE
COLOGNE
COLUMBIA HEIGHTS
COLUMBUS
2013 LGA
2011 Population
Page 88
64,456
532
2,482
11,783
8,590
992
199
272
61,151
1,046
1,184
48,262
123
242
155
1,167
1,095
173
23,101
4,240
141
691
456
116
665
212
3,473
657
816
388
148
504
84
609
3,711
2,203
1,995
1,225
10,631
5,385
23,409
21,369
52
107
177
13,103
840
390
316
433
227
531
39
2,612
0
156,373
510,589
0
2,471,550
0
31,062
70,726
0
228,099
293,365
0
9,800
32,958
29,764
349,082
281,551
29,650
0
164,986
11,799
124,811
161,977
5,281
216,939
24,938
1,713,366
20,524
0
80,748
25,909
95,104
14,726
119,255
2,186,891
0
422,699
398,946
3,722,165
310,126
4,772,748
0
14,192
0
25,659
3,563,824
259,982
0
34,625
70,862
20,587
133,152
9,193
634,131
2014 LGA
–old law
0
151,053
495,634
0
2,385,650
0
29,072
68,006
0
217,639
281,525
0
10,917
31,707
29,231
337,412
274,433
28,169
686,820
122,586
10,945
119,038
157,417
4,994
210,289
24,142
1,678,636
15,377
0
76,868
24,946
99,068
14,318
113,165
2,149,781
0
409,444
386,696
3,615,855
337,752
4,538,658
258,767
13,672
0
23,889
3,432,794
251,582
0
33,107
68,293
20,627
127,842
9,976
608,011
2014 LGA
–Ch 143
0
172,137
599,948
23,469
2,510,643
0
33,834
73,911
0
276,644
333,396
0
13,283
37,749
29,764
388,697
320,523
34,936
225,882
206,679
13,618
160,349
168,787
7,947
240,515
29,762
2,053,883
20,524
0
93,587
28,668
119,203
15,198
146,956
2,524,120
0
494,543
439,940
3,740,908
523,012
5,290,238
245,317
14,192
0
29,195
3,622,946
288,564
0
42,008
89,868
27,322
151,208
9,602
725,335
Change
+0
+15,764
+89,359
+23,469
+39,093
+0
+2,772
+3,185
+0
+48,545
+40,031
+0
+3,483
+4,791
+0
+39,615
+38,972
+5,286
+225,882
+41,693
+1,819
+35,538
+6,810
+2,666
+23,576
+4,824
+340,517
+0
+0
+12,839
+2,759
+24,099
+472
+27,701
+337,229
+0
+71,844
+40,994
+18,743
+212,886
+517,490
+245,317
+0
+0
+3,536
+59,122
+28,582
+0
+7,383
+19,006
+6,735
+18,056
+409
+91,204
FORADA
FOREST LAKE
FORESTON
FORT RIPLEY
FOSSTON
FOUNTAIN
FOXHOME
FRANKLIN
FRAZEE
FREEBORN
FREEPORT
FRIDLEY
FROST
FULDA
FUNKLEY
GARFIELD
GARRISON
GARVIN
GARY
GAYLORD
GEM LAKE
GENEVA
GENOLA
GEORGETOWN
GHENT
GIBBON
GILBERT
GILMAN
GLENCOE
GLENVILLE
GLENWOOD
GLYNDON
GOLDEN VALLEY
GONVICK
GOOD THUNDER
GOODHUE
GOODRIDGE
GOODVIEW
GRACEVILLE
GRANADA
GRAND MARAIS
GRAND MEADOW
GRAND RAPIDS
GRANITE FALLS
GRANT
GRASSTON
GREEN ISLE
GREENBUSH
GREENFIELD
GREENWALD
GREENWOOD
GREY EAGLE
GROVE CITY
GRYGLA
2011 Population
2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
185
18,591
529
69
1,521
407
117
503
1,363
301
643
27,515
196
1,308
5
351
212
134
212
2,313
393
552
74
131
367
773
1,795
227
5,621
638
2,553
1,410
20,427
285
580
1,184
134
4,057
583
301
1,356
1,147
10,879
2,879
4,134
158
560
713
2,786
222
688
346
635
222
0
0
68,533
0
531,772
61,595
24,020
132,445
429,375
58,270
84,947
759,414
49,882
402,389
141
35,975
0
35,795
49,407
768,161
0
64,937
547
12,022
78,035
216,241
685,125
9,574
1,063,153
181,068
634,282
272,438
0
60,511
146,720
203,727
22,707
138,108
186,713
91,663
96,422
266,391
963,410
717,911
0
15,678
53,119
220,770
0
27,389
0
59,124
156,743
42,945
0
0
69,120
0
516,562
59,121
22,947
127,415
415,745
57,791
80,164
484,264
47,922
389,309
139
46,330
0
34,455
47,287
745,031
0
62,013
536
11,567
74,980
208,511
667,175
11,833
1,006,943
174,688
608,752
286,877
0
57,661
140,920
233,965
21,367
141,057
180,883
88,653
82,862
254,921
905,765
689,121
0
17,028
60,731
213,640
0
26,762
0
55,664
150,393
40,725
0
56,002
92,985
0
571,827
68,555
26,225
152,057
476,533
69,220
108,214
1,211,004
52,585
446,007
141
45,796
0
37,522
51,976
838,309
0
93,001
547
15,936
91,294
252,828
706,174
17,177
1,290,925
191,967
665,498
346,889
219,070
69,371
163,762
261,658
27,950
250,835
202,156
95,830
96,422
316,762
1,270,377
904,460
0
20,552
79,967
249,729
0
33,043
0
68,980
185,271
48,633
+0
+56,002
+24,452
+0
+40,055
+6,960
+2,205
+19,612
+47,158
+10,950
+23,267
+451,590
+2,703
+43,618
+0
+9,821
+0
+1,727
+2,569
+70,148
+0
+28,064
+0
+3,914
+13,259
+36,587
+21,049
+7,603
+227,772
+10,899
+31,216
+74,451
+219,070
+8,860
+17,042
+57,931
+5,243
+112,727
+15,443
+4,167
+0
+50,371
+306,967
+186,549
+0
+4,874
+26,848
+28,959
+0
+5,654
+0
+9,856
+28,528
+5,688
EAGAN
EAGLE BEND
EAGLE LAKE
EAST BETHEL
EAST GRAND FORKS
EAST GULL LAKE
EASTON
ECHO
EDEN PRAIRIE
EDEN VALLEY
EDGERTON
EDINA
EFFIE
EITZEN
ELBA
ELBOW LAKE
ELGIN
ELIZABETH
ELK RIVER
ELKO NEW MARKET
ELKTON
ELLENDALE
ELLSWORTH
ELMDALE
ELMORE
ELROSA
ELY
ELYSIAN
EMILY
EMMONS
ERHARD
ERSKINE
EVAN
EVANSVILLE
EVELETH
EXCELSIOR
EYOTA
FAIRFAX
FAIRMONT
FALCON HEIGHTS
FARIBAULT
FARMINGTON
FARWELL
FEDERAL DAM
FELTON
FERGUS FALLS
FERTILE
FIFTY LAKES
FINLAYSON
FISHER
FLENSBURG
FLOODWOOD
FLORENCE
FOLEY
2013 LGA
2011 Population
2013 Law Summaries
Page 89
63
314
62
971
58
598
15,374
514
118
689
762
301
2,947
397
126
194
1,017
1,132
315
22,217
54
2,087
1,342
249
62
1,140
122
887
708
306
804
69
433
9,545
691
265
16,313
643
38
688
781
1,805
207
684
576
710
185
303
90
88
17,701
988
1,978
2,017
17,335
0
15,455
375,642
10,985
164,085
0
58,777
42,992
88,374
231,189
72,453
63,203
111,632
2,049
45,323
320,299
141,539
48,121
0
3,830
538,040
352,569
28,981
13,871
294,846
0
265,687
214,826
57,667
251,273
10,694
107,927
331,873
287,970
59,776
7,994,316
54,550
2,746
140,126
116,309
267,164
38,852
139,624
154,315
165,544
46,655
38,035
9,065
15,629
0
331,011
476,814
360,759
2014 LGA
–old law
16,733
0
15,058
365,932
10,500
158,105
0
56,324
41,890
87,399
223,569
69,443
33,733
107,662
3,249
43,383
310,129
136,935
48,000
63,673
3,691
520,101
339,149
26,971
13,251
283,446
0
256,817
207,746
54,607
243,233
10,682
103,597
236,423
281,060
57,134
7,831,186
64,343
2,599
133,733
111,693
316,933
36,782
132,784
148,555
158,444
44,805
43,239
8,165
15,060
50,000
321,131
457,576
340,589
2014 LGA
–Ch 143
17,335
0
15,455
390,592
12,433
182,078
0
72,948
42,992
107,524
263,794
82,014
100,492
120,338
6,408
45,899
339,818
171,046
59,162
510,111
3,830
600,784
390,126
34,773
13,871
338,883
833
287,000
241,773
66,943
278,375
11,960
116,634
355,570
295,049
65,974
8,082,401
90,999
4,115
176,522
138,621
329,583
43,029
176,342
167,109
195,215
47,704
50,316
9,065
17,890
289,907
353,617
543,979
391,193
Change
+0
+0
+0
+14,950
+1,448
+17,993
+0
+14,171
+0
+19,150
+32,605
+9,561
+37,289
+8,706
+4,359
+576
+19,519
+29,507
+11,041
+510,111
+0
+62,744
+37,557
+5,792
+0
+44,037
+833
+21,313
+26,947
+9,276
+27,102
+1,266
+8,707
+23,697
+7,079
+6,198
+88,085
+36,449
+1,369
+36,396
+22,312
+62,419
+4,177
+36,718
+12,794
+29,671
+1,049
+12,281
+0
+2,261
+289,907
+22,606
+67,165
+30,434
2011 Population
HUGO
HUMBOLDT
HUTCHINSON
IHLEN
INDEPENDENCE
INTERNATIONAL FALLS
INVER GROVE HEIGHTS
IONA
IRON JUNCTION
IRONTON
ISANTI
ISLE
IVANHOE
JACKSON
JANESVILLE
JASPER
JEFFERS
JENKINS
JOHNSON
JORDAN
KANDIYOHI
KARLSTAD
KASOTA
KASSON
KEEWATIN
KELLIHER
KELLOGG
KENNEDY
KENNETH
KENSINGTON
KENT
KENYON
KERKHOVEN
KERRICK
KETTLE RIVER
KIESTER
KILKENNY
KIMBALL
KINBRAE
KINGSTON
KINNEY
LACRESCENT
LAFAYETTE
LAKE BENTON
LAKE BRONSON
LAKE CITY
LAKE CRYSTAL
LAKE ELMO
LAKE HENRY
LAKE LILLIAN
LAKE PARK
LAKE SHORE
LAKE ST CROIX BEACH
LAKE WILSON
13,536
45
14,148
61
3,553
6,394
33,774
136
85
574
5,286
765
551
3,294
2,268
631
368
434
29
5,694
485
756
670
6,010
1,067
264
450
193
68
288
80
1,818
752
64
180
499
134
769
12
161
169
4,883
500
677
225
5,053
2,540
8,063
105
239
783
1,005
1,052
248
2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
0
12,042
1,784,272
16,654
0
3,710,994
0
37,043
12,230
114,741
313,359
25,272
203,179
1,086,755
724,872
182,806
112,493
0
7,000
0
97,952
232,848
143,296
780,209
343,738
107,307
83,859
66,764
10,330
54,270
20,567
466,643
185,283
3,489
22,510
151,029
35,924
117,942
201
12,833
59,925
422,847
120,676
198,628
71,423
610,347
621,727
0
6,578
33,155
231,084
0
25,673
76,722
0
11,592
1,806,921
16,044
0
3,647,054
0
35,683
11,847
109,001
416,394
21,383
197,669
1,053,815
702,192
176,496
108,813
0
6,771
65,493
93,907
225,288
138,273
720,109
333,068
104,667
80,575
64,834
9,650
51,519
19,767
453,930
177,763
3,207
20,710
146,039
34,584
112,551
157
12,442
58,235
374,017
115,676
191,858
69,173
559,817
596,327
0
7,813
30,765
223,254
0
42,315
74,242
0
12,302
2,213,177
16,654
0
3,968,511
0
37,234
12,315
137,845
545,474
36,767
213,187
1,290,625
775,072
206,477
116,128
5,387
7,000
237,080
114,796
260,381
168,055
982,338
378,008
107,307
93,910
66,764
10,536
60,470
21,171
516,684
217,166
5,352
27,092
165,486
35,924
146,838
201
17,977
59,925
531,684
129,923
223,629
74,541
748,389
705,898
0
10,510
39,931
253,109
0
66,312
78,109
+0
+260
+428,905
+0
+0
+257,517
+0
+191
+85
+23,104
+232,115
+11,495
+10,008
+203,870
+50,200
+23,671
+3,635
+5,387
+0
+237,080
+16,844
+27,533
+24,759
+202,129
+34,270
+0
+10,051
+0
+206
+6,200
+604
+50,041
+31,883
+1,863
+4,582
+14,457
+0
+28,896
+0
+5,144
+0
+108,837
+9,247
+25,001
+3,118
+138,042
+84,171
+0
+3,932
+6,776
+22,025
+0
+40,639
+1,387
GULLY
HACKENSACK
HADLEY
HALLOCK
HALMA
HALSTAD
HAM LAKE
HAMBURG
HAMMOND
HAMPTON
HANCOCK
HANLEY FALLS
HANOVER
HANSKA
HARDING
HARDWICK
HARMONY
HARRIS
HARTLAND
HASTINGS
HATFIELD
HAWLEY
HAYFIELD
HAYWARD
HAZEL RUN
HECTOR
HEIDELBERG
HENDERSON
HENDRICKS
HENDRUM
HENNING
HENRIETTE
HERMAN
HERMANTOWN
HERON LAKE
HEWITT
HIBBING
HILL CITY
HILLMAN
HILLS
HILLTOP
HINCKLEY
HITTERDAL
HOFFMAN
HOKAH
HOLDINGFORD
HOLLAND
HOLLANDALE
HOLLOWAY
HOLT
HOPKINS
HOUSTON
HOWARD LAKE
HOYT LAKES
2013 LGA
Page 90
2011 Population
1,690
1,796
311
56,534
826
338
767
754
108
662
87
104
2,398
2,506
84
41
52
932
1,720
4,045
1,613
250
2,078
631
4,464
20,505
227
6,721
9,839
8,331
646
337
1,775
3,445
154
3,721
652
47
296
189
4,745
550
449
781
2,307
1,542
1,033
217
1,215
7,645
54
57
39,628
1,205
614,261
33,574
0
0
287,784
75,242
79,977
204,520
10,915
66,553
16,635
3,428
516,153
719,916
21,916
4,390
34,670
296,859
425,969
767,922
383,755
67,068
335,280
0
134,663
0
65,548
1,588,853
195,843
2,089,080
214,814
0
26,410
735,532
0
245,346
0
7,954
49,088
49,989
1,194,175
163,174
55,313
223,127
860,375
729,097
119,406
43,194
446,371
0
14,717
0
6,228,727
209,003
2014 LGA
–old law
597,361
29,407
0
0
279,524
71,862
81,863
196,980
10,438
63,611
15,966
3,470
499,914
694,856
21,076
4,715
34,150
287,539
411,871
727,472
369,354
64,568
322,136
0
140,667
0
63,278
1,521,643
97,453
2,005,770
208,354
0
18,834
701,082
0
208,136
5,743
7,676
46,128
48,099
1,146,725
157,674
52,136
215,317
837,305
713,677
112,808
41,968
434,221
0
14,287
0
5,928,727
198,515
2014 LGA
–Ch 143
650,486
47,157
0
0
304,385
86,599
96,184
210,284
10,915
79,908
17,821
5,849
535,092
785,602
21,916
5,661
34,670
322,498
491,615
910,371
436,421
71,850
385,298
0
281,197
0
66,891
1,832,138
344,818
2,435,226
233,888
0
26,410
914,704
0
384,655
23,051
8,231
56,203
52,427
1,349,783
179,497
70,073
255,952
916,863
742,726
152,986
46,801
631,385
0
14,717
0
6,818,135
257,866
Change
+36,225
+13,583
+0
+0
+16,601
+11,357
+16,207
+5,764
+0
+13,355
+1,186
+2,421
+18,939
+65,686
+0
+1,271
+0
+25,639
+65,646
+142,449
+52,666
+4,782
+50,018
+0
+146,534
+0
+1,343
+243,285
+148,975
+346,146
+19,074
+0
+0
+179,172
+0
+139,309
+23,051
+277
+7,115
+2,438
+155,608
+16,323
+14,760
+32,825
+56,488
+13,629
+33,580
+3,607
+185,014
+0
+0
+0
+589,408
+48,863
2011 Population
MAPLE GROVE
MAPLE LAKE
MAPLE PLAIN
MAPLETON
MAPLEVIEW
MAPLEWOOD
MARBLE
MARIETTA
MARINE ON ST CROIX
MARSHALL
MAYER
MAYNARD
MAZEPPA
MCGRATH
MCGREGOR
MCINTOSH
MCKINLEY
MEADOWLANDS
MEDFORD
MEDICINE LAKE
MEDINA
MEIRE GROVE
MELROSE
MENAHGA
MENDOTA
MENDOTA HEIGHTS
MENTOR
MIDDLE RIVER
MIESVILLE
MILACA
MILAN
MILLERVILLE
MILLVILLE
MILROY
MILTONA
MINNEAPOLIS
MINNEISKA
MINNEOTA
MINNESOTA CITY
MINNESOTA LAKE
MINNETONKA
MINNETONKA BEACH
MINNETRISTA
MIZPAH
MONTEVIDEO
MONTGOMERY
MONTICELLO
MONTROSE
MOORHEAD
MOOSE LAKE
MORA
MORGAN
MORRIS
MORRISTOWN
62,436
2,081
1,786
1,761
177
38,374
700
162
688
13,767
1,756
363
844
79
390
621
128
133
1,243
371
4,916
180
3,622
1,300
204
11,098
153
304
125
2,944
365
105
184
251
419
387,873
109
1,392
201
688
50,046
544
6,450
56
5,360
2,952
12,840
2,923
38,516
2,791
3,557
896
5,343
986
2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
0
431,190
240,047
486,318
50,167
0
221,504
50,577
0
2,110,608
266,365
121,181
158,301
7,837
89,434
199,366
51,142
21,477
161,120
0
0
12,123
614,850
281,960
25,000
0
32,824
78,955
0
602,629
87,281
7,791
18,803
57,009
34,112
64,142,268
5,781
412,603
39,186
128,750
0
0
0
6,496
1,674,841
628,916
0
489,481
6,790,628
588,789
710,562
292,157
2,110,244
230,442
0
425,648
228,007
484,727
48,397
0
214,504
48,957
0
1,972,938
264,551
117,551
151,366
9,062
85,534
193,156
49,862
20,625
154,711
0
0
14,457
578,630
270,881
24,694
0
31,923
76,370
0
573,189
83,631
7,729
17,950
54,499
34,513
63,842,268
5,292
398,683
37,889
121,870
0
0
0
6,278
1,621,241
599,396
0
460,251
6,490,628
634,905
674,992
283,197
2,056,814
221,601
0
479,338
248,536
548,857
51,679
530,683
241,626
52,083
0
2,451,287
290,420
121,270
193,235
11,189
90,174
220,246
51,142
23,936
201,254
0
0
19,881
766,363
345,641
25,000
0
35,008
85,669
0
755,664
98,866
9,595
23,292
61,096
51,586
76,065,485
5,781
459,016
39,596
159,449
0
0
0
7,984
1,971,378
728,565
0
568,481
7,078,353
767,071
857,795
322,374
2,280,914
276,352
+0
+48,148
+8,489
+62,539
+1,512
+530,683
+20,122
+1,506
+0
+340,679
+24,055
+89
+34,934
+3,352
+740
+20,880
+0
+2,459
+40,134
+0
+0
+7,758
+151,513
+63,681
+0
+0
+2,184
+6,714
+0
+153,035
+11,585
+1,804
+4,489
+4,087
+17,474
+11,923,217
+0
+46,413
+410
+30,699
+0
+0
+0
+1,488
+296,537
+99,649
+0
+79,000
+287,725
+178,282
+147,233
+30,217
+170,670
+45,910
LAKEFIELD
LAKELAND
LAKELAND SHORES
LAKEVILLE
LAMBERTON
LANCASTER
LANDFALL
LANESBORO
LAPORTE
LAPRAIRIE
LASALLE
LASTRUP
LAUDERDALE
LECENTER
LENGBY
LEONARD
LEONIDAS
LEROY
LESTER PRAIRIE
LESUEUR
LEWISTON
LEWISVILLE
LEXINGTON
LILYDALE
LINDSTROM
LINO LAKES
LISMORE
LITCHFIELD
LITTLE CANADA
LITTLE FALLS
LITTLEFORK
LONG BEACH
LONG LAKE
LONG PRAIRIE
LONGVILLE
LONSDALE
LORETTO
LOUISBURG
LOWRY
LUCAN
LUVERNE
LYLE
LYND
MABEL
MADELIA
MADISON
MADISON LAKE
MAGNOLIA
MAHNOMEN
MAHTOMEDI
MANCHESTER
MANHATTAN BEACH
MANKATO
MANTORVILLE
2013 LGA
2013 Law Summaries
2011 Population
Page 91
406
673
9,084
12,136
2,859
2,111
273
47
68
982
72
183
294
393
451
21,496
374
20,486
1,260
322
7,351
1,214
112
13,467
1,195
374
3,449
1,091
89
71
1,979
70
10,122
13,426
4,539
11,485
20,454
202
223
3,558
4,469
8,045
4,593
27,538
136
106
192
362
189
441
2,479
875
131
7,438
131,431
131,075
0
232,078
1,156,268
807,450
69,561
11,424
0
403,480
17,638
23,990
24,733
41,623
106,481
0
11,743
41,843
274,860
69,686
515,478
325,599
779
4,111,762
342,150
75,781
588,876
179,752
21,942
2,542
0
16,497
146,132
1,358,107
0
1,863,726
2,243,397
65,984
45,444
203,574
0
0
0
0
37,973
24,822
26,614
123,218
49,544
107,276
706,366
239,116
24,183
0
2014 LGA
–old law
127,371
125,820
0
650,216
1,127,678
786,340
66,831
10,962
0
393,660
17,070
23,198
31,489
38,039
102,869
729,166
10,792
158,844
262,991
67,219
451,572
313,459
695
3,977,092
330,200
72,041
554,386
172,480
21,052
2,457
0
15,797
516,419
1,223,847
0
1,748,876
2,143,003
63,964
43,809
167,994
0
200,000
0
0
36,613
23,835
24,827
119,598
47,654
102,866
702,369
230,650
23,113
0
2014 LGA
–Ch 143
137,148
155,950
301,146
597,006
1,280,033
863,255
69,561
11,424
0
403,480
17,638
27,215
30,488
53,935
121,770
493,111
15,815
532,795
308,291
72,942
770,851
377,596
2,483
4,222,706
376,742
88,943
631,462
225,087
23,544
4,936
0
16,497
537,119
1,558,998
0
1,863,726
2,802,295
65,984
51,981
345,508
11,565
81,551
0
106,030
39,155
25,565
33,585
123,218
52,256
122,694
772,694
260,942
26,389
0
Change
+5,717
+24,875
+301,146
+364,928
+123,765
+55,805
+0
+0
+0
+0
+0
+3,225
+5,755
+12,312
+15,289
+493,111
+4,072
+490,952
+33,431
+3,256
+255,373
+51,997
+1,704
+110,944
+34,592
+13,162
+42,586
+45,335
+1,602
+2,394
+0
+0
+390,987
+200,891
+0
+0
+558,898
+0
+6,537
+141,934
+11,565
+81,551
+0
+106,030
+1,182
+743
+6,971
+0
+2,712
+15,418
+66,328
+21,826
+2,206
+0
ORONOCO
ORR
ORTONVILLE
OSAKIS
OSLO
OSSEO
OSTRANDER
OTSEGO
OTTERTAIL
OWATONNA
PALISADE
PARK RAPIDS
PARKERS PRAIRIE
PAYNESVILLE
PEASE
PELICAN RAPIDS
PEMBERTON
PENNOCK
PEQUOT LAKES
PERHAM
PERLEY
PETERSON
PIERZ
PILLAGER
PINE CITY
PINE ISLAND
PINE RIVER
PINE SPRINGS
PIPESTONE
PLAINVIEW
PLATO
PLUMMER
PLYMOUTH
PORTER
PRESTON
PRINCETON
PRINSBURG
PRIOR LAKE
PROCTOR
QUAMBA
RACINE
RAMSEY
RANDALL
RANDOLPH
RANIER
RAYMOND
RED LAKE FALLS
RED WING
REDWOOD FALLS
REGAL
REMER
RENVILLE
REVERE
RICE
2011 Population
2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
1,303
268
1,896
1,742
330
2,430
254
13,816
576
25,572
163
3,708
1,011
2,434
241
2,476
248
509
2,176
2,995
92
197
1,401
466
3,119
3,260
940
408
4,308
3,348
319
296
71,263
180
1,322
4,698
496
23,010
3,058
123
454
23,865
651
440
609
761
1,429
16,432
5,248
33
367
1,272
95
1,279
28,182
41,927
703,420
380,867
74,947
634,438
52,825
0
0
3,153,124
14,295
314,126
225,671
679,593
19,424
908,614
25,203
109,031
59,996
459,137
22,100
45,675
362,938
124,543
426,553
498,960
247,854
0
1,535,857
544,648
22,094
49,211
0
35,295
484,980
612,831
75,659
0
955,226
15,487
61,097
0
125,534
11,015
21,685
203,926
546,204
619,586
1,075,270
2,115
56,366
408,605
20,990
146,674
39,412
39,247
684,460
363,447
71,647
611,217
50,886
278,035
0
3,143,795
13,561
316,584
215,561
655,253
23,427
883,854
24,295
104,455
93,220
429,187
21,212
43,995
351,943
120,086
395,363
466,360
238,454
0
1,492,777
511,168
25,071
46,251
0
33,495
471,760
575,900
70,699
0
924,646
15,206
59,604
281,656
128,847
13,810
20,439
196,316
531,914
666,960
1,256,032
2,095
53,084
395,885
20,040
144,703
66,651
47,502
734,798
434,105
82,194
634,438
55,718
112,705
0
3,935,875
18,675
459,585
255,925
716,093
28,856
953,189
33,030
129,109
72,385
583,097
22,100
45,675
409,776
124,651
550,707
578,190
273,999
0
1,905,268
696,828
31,643
56,166
0
35,295
493,986
813,065
89,666
0
1,019,424
19,322
72,805
91,376
162,361
22,803
45,478
234,241
582,707
1,619,586
1,398,367
2,115
64,811
444,169
21,441
167,930
+38,469
+5,575
+31,378
+53,238
+7,247
+0
+2,893
+112,705
+0
+782,751
+4,380
+145,459
+30,254
+36,500
+9,432
+44,575
+7,827
+20,078
+12,389
+123,960
+0
+0
+46,838
+108
+124,154
+79,230
+26,145
+0
+369,411
+152,180
+9,549
+6,955
+0
+0
+9,006
+200,234
+14,007
+0
+64,198
+3,835
+11,708
+91,376
+36,827
+11,788
+23,793
+30,315
+36,503
+1,000,000
+323,097
+0
+8,445
+35,564
+451
+21,256
MORTON
MOTLEY
MOUND
MOUNDS VIEW
MOUNTAIN IRON
MOUNTAIN LAKE
MURDOCK
MYRTLE
NASHUA
NASHWAUK
NASSAU
NELSON
NERSTRAND
NEVIS
NEW AUBURN
NEW BRIGHTON
NEW GERMANY
NEW HOPE
NEW LONDON
NEW MUNICH
NEW PRAGUE
NEW RICHLAND
NEW TRIER
NEW ULM
NEW YORK MILLS
NEWFOLDEN
NEWPORT
NICOLLET
NIELSVILLE
NIMROD
NISSWA
NORCROSS
NORTH BRANCH
NORTH MANKATO
NORTH OAKS
NORTH ST PAUL
NORTHFIELD
NORTHOME
NORTHROP
NORWOOD YOUNG AMERICA
NOWTHEN
OAK GROVE
OAK PARK HEIGHTS
OAKDALE
ODESSA
ODIN
OGEMA
OGILVIE
OKABENA
OKLEE
OLIVIA
ONAMIA
ORMSBY
ORONO
2013 LGA
Page 92
2011 Population
35,376
1,430
95
117
14,014
107,630
1,624
4,321
2,466
11,314
657
150
103
395
2,622
22,139
33,807
490
374
1,241
3,091
1,749
808
340
336
239
227
537
541
8,333
2,287
45,505
337
2,848
61
15,963
4,325
12,796
27,147
3,967
991
86
708
43
1,047
37,652
190
1,131
178
25,118
7,312
1,869
835
285
1,218,346
237,322
14,049
5,562
1,170,849
5,101,571
133,506
309,689
105,568
0
135,555
18,964
21,702
71,101
569,076
0
0
116,916
119,605
209,265
620,496
559,018
43,944
101,319
81,277
80,121
3,257
73,496
192,791
0
294,333
0
121,650
869,374
12,070
3,554
966,004
1,579,706
0
0
175,093
16,402
169,550
7,025
150,254
0
65,258
291,361
24,244
0
0
450,020
168,619
4,344
2014 LGA
–old law
918,346
236,620
13,742
5,060
1,150,446
4,801,571
153,806
284,990
211,959
0
131,078
18,561
20,918
67,293
542,856
0
0
112,016
115,865
231,349
589,586
541,528
40,797
97,919
77,917
77,731
3,225
70,334
187,381
0
287,150
0
118,280
840,894
11,774
85,723
922,754
1,585,934
0
0
165,183
15,542
162,470
6,807
167,781
0
63,358
288,633
24,461
0
0
431,330
160,269
4,155
2014 LGA
–Ch 143
1,937,871
289,004
15,480
6,428
1,619,070
6,930,284
208,584
453,283
168,090
97,132
155,259
23,806
21,702
84,231
649,522
0
224,929
129,550
121,131
277,371
781,842
584,269
43,944
106,296
87,987
80,121
10,565
95,686
204,939
473,110
339,934
458,807
121,650
1,038,025
12,070
110,662
1,099,844
1,912,481
0
0
203,426
17,391
209,429
7,025
209,979
0
65,258
346,993
30,318
0
0
498,608
208,207
10,982
Change
+719,525
+51,682
+1,431
+866
+448,221
+1,828,713
+75,078
+143,594
+62,522
+97,132
+19,704
+4,842
+0
+13,130
+80,446
+0
+224,929
+12,634
+1,526
+68,106
+161,346
+25,251
+0
+4,977
+6,710
+0
+7,308
+22,190
+12,148
+473,110
+45,601
+458,807
+0
+168,651
+0
+107,108
+133,840
+332,775
+0
+0
+28,333
+989
+39,879
+0
+59,725
+0
+0
+55,632
+6,074
+0
+0
+48,588
+39,588
+6,638
SLAYTON
SLEEPY EYE
SOBIESKI
SOLWAY
SOUTH HAVEN
SOUTH ST PAUL
SPICER
SPRING GROVE
SPRING HILL
SPRING LAKE PARK
SPRING PARK
SPRING VALLEY
SPRINGFIELD
SQUAW LAKE
ST ANTHONY
ST AUGUSTA
ST CHARLES
ST CLAIR
ST CLOUD
ST FRANCIS
ST HILAIRE
ST JAMES
ST JOSEPH
ST LEO
ST MARTIN
ST MARY’S POINT
ST MICHAEL
ST PAUL
ST PAUL PARK
ST PETER
ST ROSA
ST STEPHEN
ST VINCENT
STACY
STAPLES
STARBUCK
STEEN
STEPHEN
STEWART
STEWARTVILLE
STILLWATER
STOCKTON
STORDEN
STRANDQUIST
STRATHCONA
STURGEON LAKE
SUNBURG
SUNFISH LAKE
SWANVILLE
TACONITE
TAMARACK
TAOPI
TAUNTON
TAYLORS FALLS
2011 Population
2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
2,147
3,598
197
98
189
20,275
1,164
1,324
85
6,432
1,686
2,474
2,144
109
86
3,358
3,737
871
65,633
7,255
283
4,597
6,579
99
307
370
16,536
286,367
5,304
11,459
68
853
61
1,456
2,976
1,297
179
658
567
5,972
18,299
690
216
69
44
437
100
521
349
359
98
58
136
974
762,656
1,274,191
11,997
4,975
32,626
1,663,720
45,440
367,822
2,131
0
0
797,702
875,030
9,160
7,166
10,963
757,339
182,675
10,081,386
80,929
68,008
1,336,057
645,151
16,916
42,909
0
0
50,320,488
143,307
2,616,126
0
105,818
21,076
235,912
957,573
316,109
33,495
193,225
131,959
599,307
174,580
154,893
68,812
17,869
3,915
28,838
25,134
0
85,817
92,714
15,076
9,097
43,070
156,385
741,186
1,238,211
11,838
6,375
30,908
1,599,824
38,454
354,582
3,446
258,896
0
774,585
853,590
8,688
6,919
0
719,969
176,124
9,781,386
352,507
65,766
1,290,087
579,361
16,272
41,820
0
415,766
50,020,488
205,883
2,501,536
0
101,999
20,466
228,975
927,813
303,139
32,594
186,645
126,289
541,555
290,641
151,729
66,652
17,179
4,215
36,654
24,134
0
82,327
89,124
14,828
8,866
42,076
149,408
799,335
1,411,867
18,511
9,073
34,495
2,290,358
57,262
411,369
5,191
291,257
0
860,778
911,482
10,726
9,655
55,216
860,980
231,868
11,728,245
313,455
69,996
1,565,697
873,161
19,623
46,121
0
239,129
60,423,748
459,542
2,908,494
0
146,645
21,076
281,738
1,120,083
350,548
37,680
219,586
153,700
852,606
568,571
175,912
68,812
18,785
5,896
47,793
25,365
0
90,257
92,714
16,030
9,682
43,070
170,970
+36,679
+137,676
+6,514
+4,098
+1,869
+626,638
+11,822
+43,547
+3,060
+291,257
+0
+63,076
+36,452
+1,566
+2,489
+44,253
+103,641
+49,193
+1,646,859
+232,526
+1,988
+229,640
+228,010
+2,707
+3,212
+0
+239,129
+10,103,260
+316,235
+292,368
+0
+40,827
+0
+45,826
+162,510
+34,439
+4,185
+26,361
+21,741
+253,299
+393,991
+21,019
+0
+916
+1,981
+18,955
+231
+0
+4,440
+0
+954
+585
+0
+14,585
RICHFIELD
RICHMOND
RICHVILLE
RIVERTON
ROBBINSDALE
ROCHESTER
ROCK CREEK
ROCKFORD
ROCKVILLE
ROGERS
ROLLINGSTONE
ROOSEVELT
ROSCOE
ROSE CREEK
ROSEAU
ROSEMOUNT
ROSEVILLE
ROTHSAY
ROUND LAKE
ROYALTON
RUSH CITY
RUSHFORD
RUSHFORD VILLAGE
RUSHMORE
RUSSELL
RUTHTON
RUTLEDGE
SABIN
SACRED HEART
SAINT ANTHONY
SAINT BONIFACIUS
SAINT LOUIS PARK
SANBORN
SANDSTONE
SARGEANT
SARTELL
SAUK CENTRE
SAUK RAPIDS
SAVAGE
SCANDIA
SCANLON
SEAFORTH
SEBEKA
SEDAN
SHAFER
SHAKOPEE
SHELLY
SHERBURN
SHEVLIN
SHOREVIEW
SHOREWOOD
SILVER BAY
SILVER LAKE
SKYLINE
2013 LGA
2013 Law Summaries
2011 Population
Page 93
205
8,587
157
63
1,477
497
2,178
46
742
98
85
1,107
80
152
823
3,728
1,130
553
339
428
54
290
12,393
332
420
601
331
319
7,554
108
250
78
8,685
2,516
693
10,833
4,014
207
6,714
230
925
871
72
151
1,084
83
178
1,563
1,768
9,368
4,215
1,869
957
203
2,960
2,418,906
9,022
11,846
0
80,156
859,170
2,350
218,148
6,968
18,940
392,748
0
26,141
269,231
1,107,828
387,654
138,006
70,902
64,069
6,744
30,803
0
30,206
5,649
130,357
66,020
82,326
0
18,592
36,658
9,042
4,062,905
584,751
183,887
0
1,191,075
0
0
41,621
79,001
225,413
18,983
33,076
182,565
22,194
12,403
561,156
732,836
2,273,651
173,368
438,284
251,433
59,458
2014 LGA
–old law
2,893
2,333,036
8,204
11,264
0
75,186
837,390
2,169
210,728
6,425
18,563
381,678
0
24,621
261,001
1,070,548
376,354
132,476
67,512
60,434
6,514
29,888
266,028
28,986
5,346
124,575
63,351
79,136
0
17,512
34,476
8,442
3,976,055
559,591
176,957
0
1,150,935
0
0
39,321
69,751
236,404
18,263
31,566
183,147
21,433
11,849
545,526
715,156
2,179,971
131,218
419,594
243,184
57,428
2014 LGA
–Ch 143
6,041
2,896,081
9,022
12,469
0
87,685
908,237
2,350
247,829
6,968
18,940
415,713
0
29,319
299,306
1,457,801
421,568
144,691
75,203
77,515
7,298
37,985
24,635
33,071
15,185
161,102
67,233
89,280
0
21,717
41,425
9,987
4,930,304
594,369
210,318
76,518
1,486,209
0
0
46,872
79,001
264,715
20,063
33,295
227,211
22,781
13,524
603,251
882,836
2,617,884
299,613
472,253
285,955
62,711
Change
+3,081
+477,175
+0
+623
+0
+7,529
+49,067
+0
+29,681
+0
+0
+22,965
+0
+3,178
+30,075
+349,973
+33,914
+6,685
+4,301
+13,446
+554
+7,182
+24,635
+2,865
+9,536
+30,745
+1,213
+6,954
+0
+3,125
+4,767
+945
+867,399
+9,618
+26,431
+76,518
+295,134
+0
+0
+5,251
+0
+39,302
+1,080
+219
+44,646
+587
+1,121
+42,095
+150,000
+344,233
+126,245
+33,969
+34,522
+3,253
WAUBUN
WAVERLY
WAYZATA
WELCOME
WELLS
WENDELL
WEST CONCORD
WEST ST PAUL
WEST UNION
WESTBROOK
WESTPORT
WHALAN
WHEATON
WHITE BEAR LAKE
WILDER
WILLERNIE
WILLIAMS
WILLMAR
WILLOW RIVER
WILMONT
WILTON
WINDOM
WINGER
WINNEBAGO
WINONA
WINSTED
WINTHROP
WINTON
WOLF LAKE
WOLVERTON
WOOD LAKE
WOODBURY
WOODLAND
WOODSTOCK
WORTHINGTON
WRENSHALL
WRIGHT
WYKOFF
WYOMING
ZEMPLE
ZIMMERMAN
ZUMBRO FALLS
ZUMBROTA
TOTALS
2011 Population
2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
403
1,371
3,720
683
2,338
166
785
19,605
110
739
56
63
1,425
23,820
60
508
190
19,600
414
337
218
4,649
220
1,435
27,603
2,348
1,400
170
59
142
434
63,143
437
125
12,829
403
130
444
7,796
93
5,235
180
3,267
93,242
82,979
0
216,934
893,883
34,022
261,011
773,763
6,713
230,048
5,951
8,001
562,909
1,532,448
16,106
75,922
41,672
4,052,790
45,572
86,327
7,670
1,202,917
33,075
503,310
9,162,003
547,848
393,587
24,869
8,042
24,318
108,208
0
0
32,442
2,705,107
42,399
7,938
118,215
0
742
235,842
34,610
426,975
90,187
144,470
0
210,104
870,503
32,362
253,161
577,713
7,713
222,658
5,857
7,371
548,659
1,294,248
15,506
73,860
39,772
3,856,790
43,725
82,957
7,646
1,156,427
31,530
488,960
8,885,973
559,915
379,587
29,743
8,006
22,898
103,868
0
0
31,192
2,576,817
39,200
7,494
113,775
0
682
360,516
33,077
394,305
107,486
143,685
0
217,709
927,216
35,761
283,647
1,153,324
11,833
259,730
7,368
8,001
581,818
1,532,448
16,106
78,239
43,738
4,439,703
58,702
92,678
14,127
1,419,013
40,385
524,076
9,699,955
628,517
413,497
27,875
9,654
27,029
119,766
0
0
32,906
3,109,564
49,695
11,153
126,862
170,783
3,552
445,571
35,688
552,668
+14,244
+60,706
+0
+775
+33,333
+1,739
+22,636
+379,561
+5,120
+29,682
+1,417
+0
+18,909
+0
+0
+2,317
+2,066
+386,913
+13,130
+6,351
+6,457
+216,096
+7,310
+20,766
+537,952
+80,669
+19,910
+3,006
+1,612
+2,711
+11,558
+0
+0
+464
+404,457
+7,296
+3,215
+8,647
+170,783
+2,810
+209,729
+1,078
+125,693
4,371,612
427,494,640
426,438,011
507,598,012
+80,103,372
TENSTRIKE
THIEF RIVER FALLS
THOMSON
TINTAH
TONKA BAY
TOWER
TRACY
TRAIL
TRIMONT
TROMMALD
TROSKY
TRUMAN
TURTLE RIVER
TWIN LAKES
TWIN VALLEY
TWO HARBORS
TYLER
ULEN
UNDERWOOD
UPSALA
URBANK
UTICA
VADNAIS HEIGHTS
VERGAS
VERMILLION
VERNDALE
VERNON CENTER
VESTA
VICTORIA
VIKING
VILLARD
VINING
VIRGINIA
WABASHA
WABASSO
WACONIA
WADENA
WAHKON
WAITE PARK
WALDORF
WALKER
WALNUT GROVE
WALTERS
WALTHAM
WANAMINGO
WANDA
WARBA
WARREN
WARROAD
WASECA
WATERTOWN
WATERVILLE
WATKINS
WATSON
2013 LGA
League of Minnesota Cities Intergovernmental Relations Department
The League’s Intergovernmental Relations (IGR) staff work on legislative issues that matter to cities. Feel free to
contact our IGR staff members with any questions, concerns, or suggestions regarding legislative issues.
IGR staff members and legislative issues:
Gary Carlson
Intergovernmental Relations Director
(651) 281-1255
[email protected]
www.twitter.com/garyncarlson
Patrick Hynes
Intergovernmental Relations Representative
(651) 281-1260
[email protected]
www.twitter.com/PJHynes2
Laura Ziegler
Intergovernmental Relations Liaison
(651) 281-1267
[email protected]
www.twitter.com/laurahziegler
Legislative issues:
• Aid to cities
• Civil liability
• Pensions and retirement
• Property tax system
• Public finance
Legislative issues:
• Building codes
• Civil liability
• Data practices
• Economic development
• Land use, zoning, and annexation
• Property tax system
• Public finance
• Tax-increment financing (TIF)
Legislative issues:
• Broadband
• Elections
• Grassroots member advocacy
• Legislative appointments
• Legislative listservs
• Policy committees
• Policy development process
• Transportation
• Underground locating
Heather Cederholm
Intergovernmental Relations Liaison
(651) 281-1256
[email protected]
www.twitter.com/hrceder
Legislative issues:
• Housing
• Grassroots member advocacy
• Legislative appointments
• Legislative listservs
• Libraries
• Policy committees
• Policy development process
• Sustainable development
• Tax increment financing (TIF)
Anne Finn
Assistant Intergovernmental Relations Director
(651) 281-1263
[email protected]
www.twitter.com/annemfinn
Legislative issues:
• Emergency management
• Insurance
• Personnel
• Public safety
• State bonding
• Transportation
2013 Law Summaries
Craig Johnson
(651) 281-1259
[email protected]
www.twitter.com/cajohnson_1
Legislative issues:
• Energy
• Environment
• Land use and annexation
• Local/tribal relations
• State bonding
• Sustainable development
• Utilities billing
• Wastewater, drinking water, and
stormwater
Ann Lindstrom
(651) 281-1261
[email protected]
www.twitter.com/AnnRL
Legislative issues:
• Economic development and redevelopment
• Elections
• Government redesign
• Public safety
• Regulated services and industries
Page 95
145 University Avenue West
St. Paul, MN 55103-2044
TEL: (651) 281-1200
(800) 925-1122
TDD: (651) 281-1290
FAX: (651) 281-1299
WEB:www.lmc.org

2013 Law Summaries - League of Minnesota Cities

Transcription

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