New Minnesota Laws Effective July 1, 2017

The following information was supplied by the Minnesota House of Representatives:

The following is a list of select new laws passed during the 2017 regular and special legislative sessions that take effect July 1, 2017. The asterisk following the bill number denotes the language that became law. Summaries of all laws passed by the 2017 Legislature in regular and special sessions are available online from nonpartisan House Public Information Services at http://www.house.mn/newlaws/#/ search/2017.

AGRICULTURE

New law includes money designated for plant pests, noxious weeds

Sponsored by Rep. Rod Hamilton (R-Mountain Lake) and Sen. Torrey Westrom (R-Elbow Lake), the omnibus agriculture finance law appropriates more than $120 million from the General Fund during the upcoming biennium to fund the Department of Agriculture ($106.24 million), Board of Animal Health ($10.87 million) and Agricultural Utilization Research Institute ($7.58 million).

The Department of Agriculture appropriation includes money designated to expand capabilities for the rapid detection, identification, containment, control and management of high priority plant pests and pathogens, as well as grants to local units of government responding to noxious weed threats.

Other provisions of the new law that are effective July 1, 2017, include:

  • establishing a new pollinator habitat and research account in the agricultural fund for pollinator research and outreach work at the University of Minnesota that includes identifying science-based best practices and establishing habitat beneficial to pollinators;
  • appropriating up to $1 million each year for the University of Minnesota to conduct research on avian influenza, including prevention measures;
  • an increase to $125 on the waste pesticide program surcharge for each registered nonagricultural pesticide product;
  • establishing a wolf-livestock conflict prevention pilot program; and
  • appropriating $200,000 each year for the industrial hemp pilot program.

The law does not include delays for implementing the 2015 buffer law, but does have a provision allowing landowners, who file compliance plans with their soil and water conservation districts by Nov. 1, 2017, to receive compliance waivers giving them until July 1, 2018, for implementation. The date for buffers, or alternative water quality practices, to be in place on public waters remains Nov. 1, 2017, and Nov. 1, 2018, on public ditches. HF1545*/SF1545/CH88

BUSINESS AND COMMERCE

Off-sale Sunday liquor sales can begin July 2

Minnesotans will be able to purchase alcohol on Sundays from a liquor store.

Sponsored by Rep. Jenifer Loon (R-Eden Prairie) and Sen. Jeremy Miller (R-Winona), a new law removes the prohibition on off-sale Sunday liquor sales, allowing stores to sell alcohol between 11 a.m. and 6 p.m., and barring those stores from receiving deliveries on Sundays. This law also prohibits wholesalers from making deliveries, soliciting orders or merchandising on Sundays.

HF30/SF1086*/CH6

Credit unions can embrace technology in conducting business

A new law will scrap the requirement that credit unions must mail or hand its members special meeting notices and instead allow them to contact members through electronic means.

Sponsored by Rep. Kelly Fenton (R-Woodbury) and Sen. Andrew Mathews (R-Milaca), the law also adds “other verifiable means” to how credit unions conduct elections. Prior to the law’s passage, credit union members had to vote by mail-in ballot. HF1477*/SF1190/CH25

More data on complaints against appraisers to be classified

Real estate appraisers facing disciplinary action will be given more privacy by changing the classification of certain state-collected data and not count informal or unfinished complaints against them.

The law will also require real estate appraisers renewing their license to disclose in background checks any new crimes “involving moral turpitude” or “related to” the job.

Sponsored by Rep. Tim O’Driscoll (R-Sartell) and Sen. Karin Housley (R-St. Marys Point), the law will shift data relating to disciplinary actions to “classified”; state that informal complaints cannot count against appraisers as formal complaints; and disciplinary data against appraisers will be made private after five years. The law will also add a six-year limitation to private right of actions. HF593*/SF366/CH37

ECONOMIC DEVELOPMENT

Jobs, economic development funding boasts $14 million in new workforce training

A $373.8 million portion of the state’s two-year $46 billion budget assigns $14 million in new money for the state’s workforce development efforts, including a new student apprenticeship program. It also reduces some building permit fees, changes inspection fees for wind and solar systems, and makes changes to workers compensation funding and intervention.

The omnibus job growth and energy affordability finance package will provide $194.3 million for the Department of Employment and Economic Development, $107.6 million for the Minnesota Housing Finance Agency, $46.6 million for the Department of Commerce and $15 million for the Public Utilities Commission, among other agencies. It’s filled with grants, loans and various appropriations funded through different state departments.

Rep. Pat Garofalo (R-Farmington) and Sen. Jeremy Miller (R-Winona) are the sponsors.

The Department of Employment and Economic Development’s slice of the spending package aids everything from a $2 million renovation project for Minneapolis-based Pillsbury United Communities and $300,000 for St. Paul’s East Side Enterprise Center to $250,000 for the Small Business Development Center at Minnesota State University, Mankato and $2.6 million in Thief River Falls for Digi-Key-related projects.

The law includes funding for the Metropolitan Economic Development Association for business development and entrepreneur services, workforce assistance for White Earth Nation, the Minnesota Investment Fund and a reimbursement for a “small resort business” in Isle “whose business was adversely impacted by a decline in walleye fishing on Lake Mille Lacs.”

The two-year, $61.6 million appropriation for workforce development includes $3 million to Pathways to Prosperity; $2.6 million for the Minnesota High Tech Association’s SciTechsperience STEM program; $2 million for Construction Careers Foundation career pathway initiative; $1 million for a women and high-wage, high-demand, nontraditional jobs grant; and $1 million for youth-at-work competitive grants.

Twin Cities R!SE will receive $3 million for training “hard-to-train” individuals; EMERGE Community Development will receive $2 million for African and African-American joblessness; $1.5 million goes to Latino Communities United in Service for culturally tailored programs; Resource, Inc. will receive $1 million; and the YMCA in St. Paul will receive $500,000.

Housing Finance Agency funding includes nearly $30 million to address the disparity rate between white households and indigenous American Indians and communities of color, $17 million in family homeless prevention and assistance programs and $13 million for housing rehabilitation and $8 million in rental assistance for people with mental illness. HF1620/SF1456*/CH94

EDUCATION

Education finance law increases school funding

After months of negotiations over the best approach to reduce the student achievement gap, a new law increases overall education funding and shifts pre-kindergarten education investments into early learning scholarships and school readiness programs.

Sponsored by Rep. Jenifer Loon (R-Eden Prairie) and Sen. Carla Nelson (R-Rochester), the law spends $18.75 billion during the 2018-19 biennium, a General Fund base increase of $483.4 million, or 2.6 percent.

The law increases General Education Basic Formula funding by 2 percent per year — an additional $371.5 million in base funding.

It also appropriates $117.36 million in combined school readiness, and mixed delivery prekindergarten and school readiness plus funding as well as $140.41 million for early learning scholarships.

School readiness plus programs will provide early learning opportunities to 4-year-olds who demonstrate one or more risk factors. A school district or charter school that did not apply to participate in a voluntary pre-k program would be able to apply for funding by July 1, 2017. A school district or charter school that did apply to participate in a voluntary pre-kindergarten program may amend its application by July 1, 2017, to apply instead for school readiness plus.

Other provisions in the law require school boards to negotiate unrequested leave of absence plans with teacher representatives as well as a $15.3 million appropriation for the Perpich Center for Arts Education.

The law also ushers in the teacher licensure overhaul, providing $3.36 million over the biennium for a new licensure system implementation and Professional Educator Licensing and Standards Board administration. SSHF2*/SSSFnone/CH5

ENVIRONMENT AND NATURAL RESOURCES

Omnibus law includes outdoors fee increases

Higher fees for hunting and fishing licenses are included in a new omnibus environment and natural resources law.

Sponsored by Rep. Dan Fabian (R-Roseau) and Sen. Bill Ingebrigtsen (R-Alexandria), the law appropriates more than $870 million during the 2018-19 biennium.

Direct appropriations in the new law include:

  • Department of Natural Resources – $569.72 million
  • Pollution Control Agency – $202.03 million • Explore Minnesota – $30.01 million
  • Board of Water and Soil Resources – $28.48 million
  • Minnesota Zoo – $18.53 million
  • Metropolitan Council – $17.08 million
  • Science Museum of Minnesota – $2.16 million
  • Conservation Corps – $1.89 million
  • School Trust Administration – $1.1 million

The law includes a number of new fees for hunting and fishing licenses, increasing the cost of a resident fishing license from $22 to $25 and a deer license from $30 to $34, along with increases to licenses in a number of other areas. The increases are meant provide new revenue for the dedicated funds meant to support those activities. HF771/SF844*/CH93

New law appropriates more than $500 million in Legacy funds

A new law will appropriate millions of dollars for projects aimed at improving the state’s water quality, and the state’s other natural and cultural resources.

Sponsored by Rep. Bob Gunther (R-Fairmont) and Sen. Carrie Ruud (R-Breezy Point), it appropriates $529.56 million during the upcoming biennium from the four funds established by the Clean Water, Land and Legacy Amendment in 2008 to benefit the state’s natural and cultural resources.

The appropriations include: $211.87 million for the Clean Water Fund, $123.36 million for the Arts and Cultural Heritage Fund, $104.56 million for the Outdoor Heritage Fund and $89.76 million for the Parks and Trails Fund.

The Clean Water Fund appropriation includes $22 million for grants to the state’s 90 soil and water conservation districts to help them comply with the 2015 buffer law meant to improve water quality and assist with other costs.

There are also $3 million in CWF appropriations to help fund the Conservation Reserve Enhancement Program, which pays landowners to retire environmentally sensitive land from production to help improve the environment. Gov. Mark Dayton signed an agreement with the U.S. Department of Agriculture in January to secure $350 million in federal funding for the program, but the state must commit $150 million of its own money.

Soil and Water Conservation Districts will receive $5 million to help implement buffers or alternative water-quality practices. Of that total, $2.5 million can be used outside the Conservation Reserve Enhancement Area – the 54 Minnesota counties designated with the highest need for improving water quality and protecting habitat.

The law provides $5 million to the Department of Agriculture’s Water Quality Certification Program to help implement approved farm management practices that improve water quality. That money should help leverage an additional $5.2 million in federal funds for the program.

Minnesota Management & Budget is required to submit a report to the Legislature by Oct. 1, 2017, for each of the four funds detailing the amount used from each to reimburse the General Fund for indirect costs, such as overhead expenses, and how those cost allocations align with the legacy amendment’s constitutional requirements.

Other appropriations in the law include:

  • $46.3 million for grants to support Minnesota artists and arts organizations for high-quality arts activities, overcoming barriers to access arts activities and instilling the arts in community and public life;
  • $17.7 million for grants for parks and trails of regional significance outside the seven-county Twin Cities metropolitan area;
  • $8.05 million for grants to the Minnesota Public Television Association;
  • $3.5 million for the Minnesota Zoo;
  • $3.2 million for Minnesota Public Radio;
  • $2.7 million for Como Park Zoo; and
  • $1.2 million for the Science Museum of Minnesota.

HF707*/SF566/CH91

HEALTH AND HUMAN SERVICES

Health and human services agencies see budget cuts

After receiving a veto from Gov. Mark Dayton calling its first spending proposal “reckless and foolish,” lawmakers worked to reduce unnecessary spending throughout Minnesota’s health and human services agencies while still providing an adequate balance of funding.

Sponsored by Rep. Matt Dean (R-Dellwood) and Sen. Michelle Benson (R-Ham Lake), the 680-page law trims $463.47 million in General Fund state health and human services agency spending during the 2018-19 biennium.

An additional $392 million from the Health Care Access Fund will be spent over the biennium. Funded through a 2 percent tax on medical providers set to expire in 2020, the fund finances MinnesotaCare health insurance programs that increase access to health care for low-income Minnesotans. The increased spending from this fund for the upcoming biennium will be used to fund $389 million in Medical Assistance expenditures.

Under the law, Department of Human Services’ General Fund appropriations will decrease by $500.2 million, including:

  • $173.26 million for capitation payment delay;
  • $19.3 million for MNChoices administration reform using person-centered planning principles;
  • $18.61 million from the one-time use of Child Care and Development Block Grant funds for Child Care Assistance Programs;
  • $15.27 million for child care assistance program integrity modifications; • $13.08 million to defund the Medical Assistance Reasonable Opportunity to Enroll verification; and
  • $11.73 million to provide long-term care Medical Assistance facilities for the Return to Communities program.

Notable funding increases for the department include:

  • $24 million to fund self-directed workforce negotiations to implement rate adjustments in compliance with wages and benefits negotiated between Minnesota and the Service Employees International Union;
  • $22.85 million for increased security hospital staffing to improve client care and staff security;
  • $18 million for child care assistance program modification;
  • $17.3 million to modernize the Medicaid management information and integrated service delivery systems;
  • $12.42 million for compliance with federal managed care and access to care rules; and
  • • $10.28 million for state-operated services sustainability.

The Department of Health will see a budget increase of $36.3 million, most of it in General Fund spending, including $12 million for home visiting services for pregnant and parenting teens, and $7.63 million for operating adjustments.

The Board of Nursing ($2.67 million), Board of Nursing Home Administrators ($2.47 million) and Board of Medical Practice ($2.3 million) receive funding increases. But, the Board of Physical Therapy ($1.47 million) and Board of Social Work ($533,000) will see a budget decrease. SSHFnone/SSSF2*/CH6

Changes made to medical faculty physician licenses

A new law removes the expiration date of licenses for medical faculty physicians.

Sponsored by Rep. Matt Dean (R-Dellwood) and Sen. Carla Nelson (R-Rochester), the law repeals the expiration date of the statute establishing the medical faculty physician license. Previously set to expire on July 1, 2018, the law makes the license permanent.

The license allows a person to practice medicine after satisfying multiple requirements, including proof of medical school graduation and no previous disciplinary actions. Once granted, the person must continue education requirements under Minnesota law.

The law also appropriates $1,000 in Fiscal Year 2018 and $1,000 in Fiscal Year 2019 from the Special Revenue Fund to the Board of Medical Practice for licensing activities. HF959*/SF815/CH82

Benefits for people with autism, related conditions expanded

More people with autism spectrum disorders and related conditions will receive early intensive developmental and behavioral intervention benefits.

The law, sponsored by Rep. Roz Peterson (R-Lakeville) and Sen. Jim Abeler (R-Anoka), modifies a 2013 law that provides intensive treatment for children with autism spectrum disorders. The changes will expand benefits to include adults younger than 21 years old and broaden qualifying conditions.

Supporters say the law will provide more flexibility in therapy and treatment, as well as additional workplace opportunities.

Sections of the law regarding benefit provider qualifications and the development of an exception process to address provider shortages took effect April 28, 2017. The rest of the legislation takes effect July 1, 2017. HF919/SF562*/CH19

HIGHER EDUCATION

Increases in biennium funding provide for public post-secondary institutions

Sponsored by Rep. Bud Nornes (R-Fergus Falls) and Senate President Michelle Fischbach (R-Paynesville), the omnibus higher education law provides $3.28 billion in funding during the 2018-19 biennium, a base funding increase of $210 million.

The law provides $1.45 billion in biennial appropriations for Minnesota State, $1.31 billion for the University of Minnesota and $517 million for the Office of Higher Education.

A provision requires a student vote on mandatory student fee increases of more than 2 percent. If the University of Minnesota raises fees by more than 2 percent without a student vote approval, its base funding would be punitively decreased by 1 percent over the next biennium.

Minnesota State’s 2017-18 academic year tuition rates at colleges will not exceed the previous year’s rate by more than 1 percent. For the 2018-19 academic year, tuition rates for undergraduates at both colleges and universities will not exceed the 2017-18 rate. Per the law, “The Board of Trustees is requested to help Minnesota close the attainment gap by funding activities which improve retention and completion for students of color.”

Tuition relief cannot be offset by increases in mandatory fees, but colleges and universities will be permitted to increase different tuition charges to cover costs of programs facing increases due to unforeseen and extraordinary circumstances.

It also requests a tuition freeze at the University of Minnesota in the second year of the biennium, but due to the university’s constitutional autonomy, the state cannot require it to adhere to legislative requests.

The Office of Higher Education funding includes $250,000 each year for College Possible “to support programs of college admission and college graduation for low-income students through an intensive curriculum of coaching and support at both the high school and postsecondary level.” This is to be proportionately allocated between students in the Twin Cities metropolitan area and Greater Minnesota. HF2080/SF943*/CH89

PUBLIC SAFETY

More court funding, Appleton prison language in omnibus law

Additional dollars for the judiciary, language regarding potential use of the Appleton prison and rulemaking related to driver’s licenses for undocumented residents are three of the more high-profile items in the omnibus judiciary and public safety law.

The law calls for $2.33 billion in spending, a $167.89 million base increase. Rep. Tony Cornish (R-Vernon Center) and Sen. Warren Limmer (R-Maple Grove) are the sponsors.

A 2.5 percent annual salary increase for judges and court staff of the Supreme Court, Tax Court, district courts and Court of Appeals is included. Health insurance increases are also covered. A new district court judge unit (judge, court reporter and law clerk) in the seventh and ninth judicial districts are funded with $1.7 million and 10 new attorneys are part of the law through an additional $1.5 million in Board of Public Defense funding.

Three court filing fee reductions — which total almost $6.3 million in lost revenue — are in the law, including the civil court filing fee dropping from $310 to $285. Motion filing fees in civil and family court cases are reduced from $100 to $75 and motion fees in child support cases decrease from $100 to $50. Another $242,000 will be lost by eliminating harassment restraining order filing fees for the respondent.

Among new spending at the Bureau of Criminal Apprehension is $4.1 million to replace its aging predatory registration system; $1.3 million for two more firearms examiners, two criminal history system maintenance staff and a drug forensic scientist; and $852,000 for a 1 percent employee salary increase each year. Health care cost increases are also covered.

Other General Fund spending includes:

  • $12 million to “support and strengthen law enforcement training and implement best practices”;
  • $400,000 each year for pathway to policing programs “intended to bring persons with nontraditional backgrounds into law enforcement”;
  • $250,000 each year for local law enforcement agencies to “develop strategies and make efforts to combat the recruitment of Minnesota residents by terrorist organizations”;
  • $180,000 each year to combat sex trafficking; and
  • $150,000 in Fiscal Year 2018 for nonprofit security grants to for physical security enhancements to nonprofit organizations that are at high risk of terrorist attack.

The law calls for $83.92 million more for the Corrections Department, mostly compensation and health care cost increases.

In an effort to reduce the number of people returning to prison for technical release violations, probation and parole agents supervising nonviolent controlled substance offenders will be permitted to instead identify community options, including substance abuse treatment. Offenders will be able to restructure, in writing, terms of supervision to include participation in appropriate community options. Courts will be permitted to amend the terms of supervision based on offenders’ written stipulations. If revoking supervision, supervising agents must attempt to place an offender in a local jail.

To address potential prison needs, the Corrections Department is to select an independent entity to conduct a thorough assessment of the empty 1,600-bed Appleton prison to “determine the current physical state of the facility and the improvements to it, if any, that would be necessary for the department to open and operate it to house Minnesota offenders in a manner consistent with other state correctional facilities. The assessment must estimate the costs involved in upgrading, leasing or purchasing, and operating the facility.” A report is due the Legislature by Jan. 15, 2018.

The Public Safety Department will be prohibited “from adopting any final rule that amends, conflicts with, or has the effect of modifying requirements in Minnesota Rules, parts 7410.0100 to 7410.0800,” which, in essence, prevents the department from using its rulemaking authority to issue driver’s licenses for undocumented residents.

The law also clarifies statute so that off-duty peace officers have the right to carry firearms in — and cannot be prohibited from entering — private establishments. However, an establishment owner “may require the display of official credentials issued by the agency that employs the peace officer prior to granting the officer entry.” HF470*/SF1098/CH95

STATE GOVERNMENT

New law funds state government agencies, constitutional offices 

Part of the overall state budget package, a new law funds portions of executive branch agencies, boards, commissions and constitutional offices.

While Gov. Mark Dayton signed the law sponsored by Rep. Sarah Anderson (R-Plymouth) and Sen. Mary Kiffmeyer (R-Big Lake), he line-item vetoed the $32 million budgets for both the House and the Senate. A lawsuit has been filed regarding legislative funding.

The law funds for two years agencies like the Department of Administration, Minnesota Management and Budget, Department of Revenue, Minnesota IT, Department of Military Affairs and the Department of Veterans Affairs. It also funds the Minnesota Lottery, Racing Commission, Gambling Control Board and Minnesota Historical Society, along with ethnic councils and boards tasked with regulating everything from arts and architecture to barbers and cosmetologists.

The law expands the Minnesota GI bill, which covers the costs of postsecondary educational benefits, on-the-job training and apprenticeships for active military members and veterans. It also provides grants for the Veterans Journey Home program. SSHFnone/SSSF1*/CH4

State vendors must certify they don’t boycott Israel

The Legislature and state agencies will be prohibited from entering contracts with vendors that “discriminate against Israel.”

Under the law, sponsored by Rep. Ron Kresha (R-Little Falls) and Sen. Warren Limmer (R-Maple Grove), state contracts will have to include certification of compliance with the new law by the vendor. Contracts for less than $1,000 are exempt.

The new law defines discrimination as “engaging in refusals to deal, terminating business activities, or other actions that are intended to limit commercial relations with Israel, or persons or entities doing business in Israel.”

To meet the definition, a vendor’s actions must discriminate “on the basis of nationality or national origin” and not for a valid business reason. The law will not prohibit a vendor from engaging in constitutionally protected free-speech activities.

The Legislature or Department of Administration may waive application of the law if it is “not practicable or in the best interests of the state.” HF400*/SF247/CH21

Annual claims law will pay out $35K for eight injured people

Each year, a joint House-Senate Subcommittee on Claims decides which claims against the state it should fund.

The annual claims law, sponsored by Rep. Duane Quam (R-Byron) and Sen. Bruce Anderson (R-Buffalo), will provide $35,264 to cover eight claims against the Department of Corrections by individuals who suffered injuries while incarcerated or performing community service or sentence-toservice work. The amounts range from $750 to $9,350. HF2287*/SF1973/CH72

TRANSPORTATION

Law appropriates $6.5 billion for transportation in 2018-19 biennium

A $300 million increase in General Fund spending, $940 million in bonding and a $75 annual surcharge on electric motor vehicles are all part of the 2017 omnibus transportation finance and policy law.

The law appropriates $6.5 billion in the 2018-19 biennium for the state’s transportation system, including the Department of Transportation as well as the transportation portions of the Metropolitan Council and the Department of Public Safety.

Rep. Paul Torkelson (R-Hanska) and Sen. Scott Newman (R-Hutchinson) are the sponsors. SSHF3*/SSSFnone/CH3

Appropriations

In total, the law will appropriate roughly $6.5 billion in the 2018-19 biennium primarily from the following funds:

  • Trunk Highway Fund: $3.98 billion;
  • County State-Aid Highway Fund: $1.55 billion;
  • Municipal State-Aid Street Fund: $388.2 million;
  • General Fund: $339.5 million; and
  • State Airports Fund: $56.7 million.

Nearly $1.9 billion is appropriated for the construction, reconstruction and improvement of state highways, which is primarily used for contracts with highway construction firms. Additional funds are used for design and engineering work along with construction project management. The law also appropriates $50 million over the biennium for the Corridors of Commerce program as a new budgetary line item so that it is set to be funded on an ongoing basis.

The General Fund appropriation for Greater Minnesota transit is reduced by $17 million in Fiscal Year 2018.

The Metropolitan Council is slated to receive $250.9 million from the General Fund for transit system operations and the Department of Public Safety $399.2 million in the biennium from multiple sources, including the General Fund and special revenue funds.

The law reallocates $300 million in motor vehicle-related state sales tax revenues from the General Fund to go toward transportation spending. Tax revenues included in the shift are:

  • the remaining share of general sales tax from motor vehicle leases that is not already allocated to roads and transit;
  • short-term motor vehicle rental tax;
  • general sales tax from short-term motor vehicle rentals; and
  • a portion of general sales tax from motor vehicle repair and replacement parts.

Bonding

The law contains authorization for $940 million in trunk highway bonding and appropriations over four years.

It provides for $640 million in trunk highway bonding from fiscal years 2018-21, with the proceeds going to the Department of Transportation for road construction. Under the law, the department may use up to 17 percent of the amount each year for program delivery. Also appropriated is $300 million in trunk highway bond proceeds for fiscal years 2018-21 to MnDOT for the Corridors of Commerce program.

Policy

A trio of policy provisions take effect July 1, 2017: allowing a transfer-on-death beneficiary designation to be entered on a motor vehicle’s certificate of title; designating a segment of U.S. Highway 52 in Dakota County as “Senator Jim Metzen Memorial Highway”; and authorizing MnDOT to establish a highway sponsorship program allowing businesses, civic groups or individuals to assist in improving and maintaining the state highway right-of-way roadside monuments and historic sites.