Journal of the House - 106th Day - Saturday, May 15,
2010 - Top of Page 13079
STATE OF MINNESOTA
EIGHTY-SIXTH SESSION - 2010
_____________________
ONE HUNDRED SIXTH DAY
Saint Paul, Minnesota, Saturday, May 15, 2010
����� The House of Representatives convened at 12:00 noon and was
called to order by Margaret Anderson Kelliher, Speaker of the House.
����� Prayer was offered by the Reverend Dennis
J. Johnson, House Chaplain.
����� The members of the House gave the pledge
of allegiance to the flag of the United States of America.
����� The roll was called and the following
members were present:
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Hayden
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
����� A quorum was present.
����� Abeler was excused.
����� Garofalo was excused until 8:30 p.m.� Demmer was excused until 2:30 a.m.� Davids was excused until 3:15 a.m.
����� The Speaker called Thissen to the Chair.
����� The Chief Clerk proceeded to read the Journal of the preceding
day.� Urdahl moved that further reading
of the Journal be dispensed with and that the Journal be approved as corrected
by the Chief Clerk.� The motion
prevailed.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13080
����� Sertich moved that the House recess
subject to the call of the Chair.� The
motion prevailed.
RECESS
RECONVENED
����� The House reconvened and was called to
order by Speaker pro tempore Juhnke.
����� Zellers was excused between the hours of
2:30 p.m. and 3:55 p.m.
PETITIONS AND COMMUNICATIONS
����� The following communications were
received:
STATE OF MINNESOTA
OFFICE OF THE GOVERNOR
SAINT PAUL 55155
May 13, 2010
The
Honorable Margaret Anderson Kelliher
Speaker of
the House of Representatives
The State of
Minnesota
Dear Speaker
Kelliher:
����� I have vetoed and am returning Chapter No.
341, H. F. No. 2634, a bill extending current groundwater usage
restrictions in the Mt. Simon-Hinckley aquifer.
����� The enhanced water use restrictions in
this bill are a significant obstacle to business expansion within the area
served by the aquifer and are unnecessary given the current regulatory scheme, which
is sufficient.
������������������������������������������������������������������������������������������������������������������������������� Sincerely,
������������������������������������������������������������������������������������������������������������������������������� Tim
Pawlenty
������������������������������������������������������������������������������������������������������������������������������� Governor
STATE OF MINNESOTA
OFFICE OF THE GOVERNOR
SAINT PAUL 55155
May 13, 2010
The
Honorable Margaret Anderson Kelliher
Speaker of
the House of Representatives
The State of
Minnesota
Dear Speaker
Kelliher:
����� I have vetoed and am returning Chapter No.
360, H. F. No. 2614.� This
bill was presented to me in the absence of a global budget agreement or even
good faith negotiations with my Administration.
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13081
����� On May 4, I sent a letter to Senator Berglin and Representative
Huntley highlighting several serious concerns regarding new spending financed
by higher surcharges.� The surcharges on
hospitals, insurance companies, and group homes will increase health care costs
at a time when we should be focused on lowering health care costs.� I will not sign a bill that moves in that
misguided direction.
����� Moreover, the minimal deficit reduction targets found in this
bill may not be sufficient to help address the FY 2010-11 deficit or make
any meaningful progress on the FY 2012-13 shortfall.
����� Fortunately, after the May 4 letter was sent, the negotiated,
bipartisan agreement over General Assistance Medical Care (GAMC) took a
significant step forward.� The news about
the four major hospitals which have signed contracts with the state proves that
this program can and will work.� I once
again thank you for your key leadership in that negotiated compromise.
����� I encourage you and Senator Pogemiller to direct your health
care chairs to work with Commissioner Ludeman and my staff to address these
concerns and develop a bill that can be signed into law as part of an overall
budget agreement.
������������������������������������������������������������������������������������������������������������������������������� Sincerely,
������������������������������������������������������������������������������������������������������������������������������� Tim
Pawlenty
������������������������������������������������������������������������������������������������������������������������������� Governor
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Solberg from the Committee
on Ways and Means to which was referred:
H. F. No. 3492,
A bill for an act relating to capital investment; appropriating money for
higher education asset preservation and replacement; authorizing the sale and
issuance of state bonds.�
Reported the same back with
the following amendments:
Delete everything after the
enacting clause and insert:
"Section 1.� Laws 2005, chapter 20, article 1, section 7,
subdivision 14, as amended by Laws 2006, chapter 258, section 43, is amended to
read:
����� Subd. 14.� State Trail Development �������������������������������������������������������������������������������������������������������������������� 7,910,000
To acquire land for and to develop and rehabilitate
state trails as specified in Minnesota Statutes, section 85.015.�
$1,500,000 is for the Blazing Star Trail and,
notwithstanding Minnesota Statutes, section 16A.642, the bond sale
authorization and appropriation of bond proceeds for this project are available
until June 30, 2014.�
$435,000 is for a segment of the Blufflands Trail,
from Preston to Forestville.�
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13082
$200,000 is
for a segment of the Blufflands Trail, from Chester Woods County Park to the
city limits of Rochester in Olmsted County, primarily for nonmotorized riding
and hiking.�
$400,000 is
for the Douglas Trail.�
$400,000 is
for the Gateway Trail.�
$725,000 is
for the Gitchi Gami Trail.�
$500,000 is
for the Glacial Lakes Trail.�
$200,000 is
for the Goodhue Pioneer Trail.�
$300,000 is
for the Heartland Trail.�
$300,000 is
for the Mill Towns Trail.�
$100,000 is
for the Minnesota River Trail.�
$2,400,000
is for the Paul Bunyan Trail:� $320,000
is for an extension across Excelsior Road in the city of Baxter to connect with
the Oberstar Tunnel and may be used to match federal money for the trail;
$900,000 is to acquire right-of-way in the city of Bemidji and to rehabilitate
the trail.�
$450,000 is
for the Shooting Star Trail.�
����� Sec. 2.� Laws 2006, chapter 258, section 7,
subdivision 23, is amended to read:
����� Subd. 23.� Trail
connections ��������������������������������������������������������������������������������������������������������������������������������� 2,010,000
For matching
grants under Minnesota Statutes, section 85.019, subdivision 4c.
$500,000 is
for a grant to Carlton County to predesign, design, and construct a
nonmotorized pedestrian trail connection to the Willard Munger State Trail from
the city of Carlton through the city of Scanlon continuing to the city of
Cloquet, along the St. Louis River in Carlton County.
$260,000 is
to provide the state match for the cost of the Soo Line Multiuse Recreational
Bridge project over marked Trunk Highway 169 in Mille Lacs County.�
$175,000 is
for a grant to the city of Bowlus in Morrison County to design, construct,
furnish, and equip a trailhead center at the head of the Soo Line Recreational
Trail.
$125,000 is
for a grant to Morrison County to predesign, design, construct, furnish, and
equip a park-and-ride lot and restroom building adjacent to the Soo Line
Recreational Trail at U.S.� Highway 10.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13083
$950,000 is
for a grant to the St. Louis and Lake Counties Regional Railroad Authority
for land acquisition, engineering, construction, furnishing, and equipping of a
19-mile "Boundary Waters Connection" of the Mesabi Trail from
Bearhead State Park to the International Wolf Center in Ely.� This appropriation is contingent upon a
matching contribution of $950,000 from other sources, public or private.� Notwithstanding Minnesota Statutes,
section 16A.642, the bond authorization and appropriation of bond proceeds for
this project are available until June 30, 2014.
����� Sec. 3.� Laws 2008, chapter 179, section 4,
subdivision 4, is amended to read:
����� Subd. 4.� Independent
School District No. 279, Osseo ������������������������������������������������������������������������������������� 2,000,000
For a grant
to Independent School District No. 279, Osseo, to predesign, design,
construct, furnish, and equip the Northwest Hennepin Family Center and
parking facility in Brooklyn Center.�
This appropriation is not available until the commissioner has
determined that at least an equal amount has been committed from nonstate
sources.
No later
than five years after the facility opens, the school district must report to
the commissioner of education on how the facility has improved student
achievement and reduced educational disparities.
����� Sec. 4.� Laws 2008, chapter 179, section 18,
subdivision 6, is amended to read:
����� Subd. 6.� Hennepin
County Medical Center ��������������������������������������������������������������������������������������������������������� 820,000
For a grant
to Hennepin County to predesign and, design, construct,
furnish, and equip an outpatient clinic and health education facility at
Hennepin County Medical Center that includes teaching clinics and an education
center.
����� Sec. 5.� Laws 2009, chapter 93, article 1, section 16,
subdivision 5, is amended to read:
����� Subd. 5.� Olmsted
County - Steam Line Extension ������������������������������������������������������������������������������������������ 5,000,000
For a grant
to Olmsted County to design and construct approximately 1.25 miles of a new
steam pipeline from the Olmsted Waste-to-Energy Facility to the Rochester
Community and Technical College Campus, supplying steam heat and cooling from a
renewable energy source.� Any portion
of this appropriation remaining after the construction is completed is
reappropriated to the Board of Trustees of the Minnesota State Colleges and
Universities to convert heating and cooling systems within existing Rochester
Community and Technical College buildings from electrical energy to
steam-derived energy.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13084
This
appropriation is not available until the commissioner has determined that at
least an equal amount has been committed from Olmsted County.
����� Sec. 6.� Laws 2010, chapter 189, section 14,
subdivision 2, is amended to read:
����� Subd. 2.� Emergency
Management Training Facility - Camp Ripley ��������������������������� ��������������������������������������������������������������������������������������������� 6,000,000
To the
commissioner of administration to predesign, design, construct, furnish,
and equip an emergency vehicle operator's course at Camp Ripley.
Nonmilitary
public safety personnel from Minnesota must be given access to the facility.
����� Sec. 7.� Laws 2010, chapter 189, section 19,
subdivision 4, is amended to read:
����� Subd. 4.� Minneapolis
Veterans Home ��������������������������������������������������������������������������������������������������������������� 9,450,000
To remodel
predesign, design, construct, furnish, and equip the renovation of building
16 to accommodate a domiciliary program, demolish the north wing of building
17, predesign a new building 17, and design, construct, furnish, and
equip up to a 72-bed single occupancy person-centered nursing care building
the north wing of the new building 17, including site improvements and
amenities for building and program support.
����� Sec. 8.� Laws 2010, chapter 189, section 21,
subdivision 4, is amended to read:
����� Subd. 4.� Redevelopment
Account ����������������������������������������������������������������������������������������������������������������������� 5,000,000
For purposes
of the redevelopment account under Minnesota Statutes, sections 116J.571 to
116J.575.
$2,000,000
is for a grant to the city of Lake Elmo.�
$1,000,000 must be used to design and construct an expansion of the
city's water pumping, storage, and distribution system to provide approximately
1,000 additional service hookups and replace a city well lost to contamination
by perfluorochemicals (PFC's).�
$1,000,000 must be used to design and construct the extension of a
16-inch sanitary sewer force main from the Metropolitan Council interceptor on
Interstate Highway 94 to 30th Street to the proposed southern edge of the Lake
Elmo Village area.� This appropriation is
not available until the council commissioner has determined that
at least an equal amount has been committed to the project from nonstate
sources.
Notwithstanding
Minnesota Statutes, section 16A.642, grant number RDGP-06-0007-0-FY07, awarded
in September 2006 to the city of Tower from an appropriation to the
redevelopment account in Laws 2005, chapter 20, article 1, section 23,
subdivision 11, is available until June 30, 2013.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13085
Sec. 9.� EFFECTIVE
DATE.�
This act is
effective the day following final enactment."
Amend the
title accordingly
With the
recommendation that when so amended the bill pass.
����� The report was adopted.
SECOND READING OF HOUSE
BILLS
����� H. F. No. 3492 was read for
the second time.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
����� The following House Files were introduced:
����� Bly introduced:
����� H. F. No. 3856, A bill for an act relating
to health; authorizing expanded health care practices for health care
professionals; proposing coding for new law as Minnesota Statutes, chapter
146B.
����� The bill was read for the first time and
referred to the Committee on Health Care and Human Services Policy and
Oversight.
����� Lillie and Slawik introduced:
����� H. F. No. 3857, A bill for an act relating
to taxation; income; providing a subtraction for wages of public safety
officers killed in the line of duty; amending Minnesota Statutes 2009
Supplement, sections 290.01, subdivision 19b, as amended; 290.091, subdivision 2.
����� The bill was read for the first time and
referred to the Committee on Taxes.
����� Zellers introduced:
����� H. F. No. 3858, A bill for an act relating
to education; requiring a report on school bus fires.
����� The bill was read for the first time and referred
to the Committee on K-12 Education Policy and Oversight.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13086
����� Shimanski; Anderson, P., and Dettmer introduced:
����� H. F. No. 3859, A bill for an act relating
to public safety; providing grants to local law enforcement agencies for
training officers regarding immigration; providing for a surcharge;
appropriating money.
����� The bill was read for the first time and
referred to the Committee on Public Safety Policy and Oversight.
����� Scalze introduced:
����� H. F. No. 3860, A bill for an act relating
to human services; expanding the use of the public assistance reporting
information system; amending Minnesota Statutes 2009 Supplement, section
256.01, subdivision 18a.
����� The bill was read for the first time and
referred to the Committee on Health Care and Human Services Policy and
Oversight.
����� Rukavina, Clark, Obermueller, Gunther and
Reinert introduced:
����� H. F. No. 3861, A bill for an act relating
to higher education; establishing an applied learning initiative in the
Minnesota State Colleges and Universities for technical education;
appropriating money; proposing coding for new law in Minnesota Statutes, chapter
136F.
����� The bill was read for the first time and
referred to the Committee on Finance.
MESSAGES
FROM THE SENATE
����� The following messages were received from
the Senate:
Madam Speaker:
����� I hereby announce
that the Senate accedes to the request of the House for the appointment of a
Conference Committee on the amendments adopted by the Senate to the following
House File:
H. F. No. 2227, A bill for an act
relating to local government; establishing Minnesota Innovation and Research
Council; imposing powers and duties of council; appropriating money; amending
Minnesota Statutes 2008, section 3.971, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapter 465; repealing Minnesota
Statutes 2008, section 6.80.
The Senate has appointed as such committee:
Senators Metzen, Bonoff and Rosen.
Said House File is herewith returned to the House.
Colleen J. Pacheco, First
Assistant Secretary of the Senate
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Top of Page 13087
RECONSIDERATION
����� Carlson moved that
the vote whereby the House refused to concur in the Senate amendments to
H. F. No. 3834, and requested that a conference committee of 3
members be appointed to confer on the disagreeing votes of the two houses be
now reconsidered.� The motion prevailed.
����� Carlson withdrew his motion relating to
the appointment of conferees to H. F. No. 3834.
����� Carlson moved that the House refuse to
concur in the Senate amendments to H. F. No. 3834, that the
Speaker appoint a Conference Committee of 5 members of the House, and that the
House requests that a like committee be appointed by the Senate to confer on
the disagreeing votes of the two houses.�
The motion prevailed.
Madam
Speaker:
����� I hereby announce the passage by the
Senate of the following House File, herewith returned, as amended by the Senate,
in which amendments the concurrence of the House is respectfully requested:
H. F. No. 2801,
A bill for an act relating to establishing complete streets program and
requiring reports; amending Minnesota Statutes 2008, sections 162.02,
subdivision 3a; 162.09, subdivision 3a; proposing coding for new law in
Minnesota Statutes, chapter 174.
Colleen J. Pacheco, First
Assistant Secretary of the Senate
����� Obermueller moved that the House refuse to
concur in the Senate amendments to H. F. No. 2801, that the
Speaker appoint a Conference Committee of 3 members of the House, and that the
House requests that a like committee be appointed by the Senate to confer on
the disagreeing votes of the two houses.�
The motion prevailed.
Madam
Speaker:
����� I hereby announce that the Senate refuses
to concur in the House amendments to the following Senate File:
S. F. No. 3134, A bill for an act relating to
government operations; describing how to fold the state flag; defining certain
powers of the Council on Black Minnesotans; requiring fiscal notes to include
information about job creation; limiting requirements for approval by
individual legislators in the disposal process for certain state-owned
buildings; increasing threshold requirements for deposit of agency receipts;
imposing requirements on agencies for contracts over a certain amount;
requiring state chief information officer to develop standards for enhanced
public access to state electronic records; clarifying use of fees in the
combined charities campaign; transferring membership in the Workers'
Compensation Reinsurance Association from the commissioner of management and
budget to the commissioner of administration; eliminating and modifying fees
for certain filings with the secretary of state; authorizing grants to counties
for voting equipment and vote-counting equipment; establishing the Commission
on Service Innovation; allowing contiguous counties to establish a home rule
charter commission; requiring reports; appropriating money; amending Minnesota
Statutes 2008, sections 1.141, by adding subdivisions; 3.9225, subdivision 5;
3.98, subdivision 2; 16A.275; 16B.24, subdivision 3; 16E.04, subdivision 2;
16E.05, by
Journal of the House - 106th Day - Saturday, May 15, 2010 -
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adding a subdivision; 43A.50, subdivision 2; 79.34,
subdivision 1; 318.02, subdivision 1; 557.01; proposing coding for new law in Minnesota
Statutes, chapters 3; 16C; proposing coding for new law as Minnesota Statutes,
chapter 372A; repealing Laws 2005, chapter 162, section 34, subdivision 2, as
amended.
The Senate respectfully requests that a Conference Committee
be appointed thereon.� The Senate has
appointed as such committee:
Senators Betzold, Robling, Rest, Olseen and Kubly.
Said Senate File is herewith transmitted to the House with
the request that the House appoint a like committee.
Colleen J. Pacheco, First
Assistant Secretary of the Senate
����� Kahn moved that the House accede to the
request of the Senate and that the Speaker appoint a Conference Committee of 5
members of the House to meet with a like committee appointed by the Senate on
the disagreeing votes of the two houses on S. F. No. 3134.� The motion prevailed.
����� Mahoney was excused between the hours of
3:00 p.m. and 7:00 p.m.
����� The following Conference Committee Report
was received:
CONFERENCE COMMITTEE REPORT ON
H. F. NO. 910
A bill for an act relating to notaries public; modifying
fees; regulating commissions and notarial stamps and seals; providing
clarifications; providing for the accommodations of physical limitations;
amending Minnesota Statutes 2008, sections 358.028; 358.09; 358.15; 358.47;
358.48; 359.01, subdivision 2; 359.02; 359.03, subdivisions 1, 2, 3, 4;
359.061; 359.12; Minnesota Statutes 2009 Supplement, sections 357.021,
subdivision 2; 359.01, subdivision 3; proposing coding for new law in Minnesota
Statutes, chapter 359; repealing Minnesota Statutes 2008, section 359.05.
May 14, 2010
The
Honorable Margaret Anderson Kelliher
Speaker of
the House of Representatives
The
Honorable James P. Metzen
President
of the Senate
We, the undersigned conferees for H. F. No. 910
report that we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its amendment and that
H. F. No. 910 be further amended as follows:
Delete everything after the enacting clause and insert:
"Section 1.� Minnesota
Statutes 2009 Supplement, section 357.021, subdivision 2, is amended to read:
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13089
Subd. 2.� Fee
amounts.� The fees to be charged and
collected by the court administrator shall be as follows:
(1) In every civil action or
proceeding in said court, including any case arising under the tax laws of the
state that could be transferred or appealed to the Tax Court, the plaintiff,
petitioner, or other moving party shall pay, when the first paper is filed for
that party in said action, a fee of $310, except in marriage dissolution
actions the fee is $340.
The defendant or other
adverse or intervening party, or any one or more of several defendants or other
adverse or intervening parties appearing separately from the others, shall pay,
when the first paper is filed for that party in said action, a fee of $310,
except in marriage dissolution actions the fee is $340.
The party requesting a trial
by jury shall pay $100.
The fees above stated shall
be the full trial fee chargeable to said parties irrespective of whether trial
be to the court alone, to the court and jury, or disposed of without trial, and
shall include the entry of judgment in the action, but does not include copies
or certified copies of any papers so filed or proceedings under chapter 103E,
except the provisions therein as to appeals.
(2) Certified copy of any
instrument from a civil or criminal proceeding, $14, and $8 for an uncertified
copy.
(3) Issuing a subpoena, $16
for each name.
(4)
Filing a motion or response to a motion in civil, family, excluding child
support, and guardianship cases, $100.
(5) Issuing an execution and
filing the return thereof; issuing a writ of attachment, injunction, habeas
corpus, mandamus, quo warranto, certiorari, or other writs not specifically
mentioned, $55.
(6) Issuing a transcript of
judgment, or for filing and docketing a transcript of judgment from another
court, $40.
(7) Filing and entering a
satisfaction of judgment, partial satisfaction, or assignment of judgment, $5.
(8) Certificate as to
existence or nonexistence of judgments docketed, $5 for each name certified to.
(9) Filing and indexing trade
name; or recording basic science certificate; or recording certificate of
physicians, osteopaths, chiropractors, veterinarians, or optometrists, $5.
(10) For the filing of each
partial, final, or annual account in all trusteeships, $55.
(11) For the deposit of a
will, $27.
(12) For recording notary
commission, $100, of which, notwithstanding subdivision 1a, paragraph (b),
$80 must be forwarded to the commissioner of management and budget to be
deposited in the state treasury and credited to the general fund $20.
(13) Filing a motion or
response to a motion for modification of child support, a fee of $100.
(14) All other services
required by law for which no fee is provided, such fee as compares favorably
with those herein provided, or such as may be fixed by rule or order of the
court.
(15) In addition to any
other filing fees under this chapter, a surcharge in the amount of $75 must be
assessed in accordance with section 259.52, subdivision 14, for each adoption
petition filed in district court to fund the fathers' adoption registry under
section 259.52.
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The fees in clauses (3) and (5) need not be paid by a public
authority or the party the public authority represents.
Sec. 2.� Minnesota
Statutes 2008, section 358.028, is amended to read:
358.028 LEGISLATORS, OFFICIAL
SEALS.�
Every member of the legislature, while in office and residing
in the district from which elected, may have an official seal notarial
stamp, in the form provided in section 358.03, with which to authenticate
official acts provided for in section 358.15.�
Sec. 3.� Minnesota
Statutes 2008, section 358.09, is amended to read:
358.09 BY WHOM AND HOW
ADMINISTERED.�
Any officer authorized by this chapter to take and certify
acknowledgments may administer an oath, and, if the same be in writing, may
certify the same under the officer's signature, and the seal of office, if
there be one an official notarial
stamp, in the following
form:� "Subscribed and sworn to
before me this ............� day of
................., ....." The mode of administering an oath
commonly practiced in the place where it is taken shall be followed, including,
in this state, the ceremony of uplifting the hand.
Sec. 4.� Minnesota
Statutes 2008, section 358.15, is amended to read:
358.15 EX OFFICIO NOTARY
PUBLIC.�
(a) The following officers have the powers of a notary
public within the state:
(1) every member of the legislature, while still a resident in
the district from which elected; but no fee or compensation may be received for
exercising these powers.� The form of the
official signature in these cases is:�
"A.B., Representative (or Senator),
....................................... District, Minnesota, ex officio notary
public.� My term expires January 1,
.......";
(2) the clerks or recorders of towns, and cities.� The form of the official signature in these
cases is:� "A.B.� (official title), ....... County, Minnesota,
ex officio notary public.� My term
expires ....... (or where applicable) my term is indeterminate.";
(3) court commissioners, county recorders, and county
auditors, and their several deputies, and county commissioners, all within
their respective counties.� The form
of the official signature in these cases:�
"A.B.� (official title),
....... County, Minnesota, ex officio notary public.� My term expires ....... (or where applicable)
my term is indeterminate."; and
(4) peace officers licensed under section 626.845 for the
purpose of administering oaths upon information submitted to establish probable
cause to any judge or judicial officer under the Rules of Criminal
Procedure.� The form of the official
signature in these cases is "A.B., Peace Officer License Number .......,
....... County, Minnesota.� My license
expires June 30, .......".�
(b) An officer using the powers of a notary public within the
state pursuant to clauses (1) to (3) shall obtain an official stamp as
specified under section 359.03, subdivisions 1, 3, and 4, with which to
authenticate official acts.
(c) The county auditor and county recorder, and their
deputies, and the clerk or recorder of a town or city with ex officio powers
under this section may authenticate official acts related to the statutory
duties of their respective offices without using the official stamp for 90 days
after initially assuming the office, or until the officer acquires an official
stamp, whichever is earlier.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
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EFFECTIVE
DATE; APPLICABILITY.� This section is effective August 1,
2010, except that an officer with ex officio powers subject to paragraph (c)
may authenticate official acts related to the officer's statutory duties
without using the official stamp for up to 90 days after the effective date of
this section, or until the officer acquires an official stamp, whichever is
earlier.
Sec. 5.� Minnesota Statutes 2008, section 358.47, is
amended to read:
358.47 CERTIFICATE OF NOTARIAL ACTS.�
(a) A notarial act must be
evidenced by a certificate physically or electronically signed and dated by a
notarial officer in a manner that attributes such signature to the notary
public identified on the commission.�
The notary's name as it appears on the official notarial stamp and on
any jurat or certificate of acknowledgment and in the notary's commission must
be identical.� The certificate must
include identification of the jurisdiction in which the notarial act is
performed and the title of the office of the notarial officer and may must
include the official notarial stamp or seal of office, or
the notary's electronic seal pursuant to section 359.03.� If the officer is a notary public, the
certificate must also indicate the date of expiration, if any, of the
commission of office, but omission of that information may subsequently be
corrected.� If the officer is a
commissioned officer on active duty in the military service of the United
States, it must also include the officer's rank.
(b) A
certificate of a notarial act is sufficient if it is in English and
meets the requirements of subsection (a) and it:
(1) is in the short form set
forth in section 358.48;
(2) is in a form otherwise
prescribed by the law of this state;
(3) is in a form prescribed
by the laws or regulations applicable in the place in which the notarial act
was performed; or
(4) sets forth the actions
of the notarial officer and those are sufficient to meet the requirements of
the designated notarial act.
(c) By executing a
certificate of a notarial act, the notarial officer certifies that the officer
has made the determinations required by section 358.42.�
Sec. 6.� Minnesota Statutes 2008, section 358.48, is
amended to read:
358.48 SHORT FORMS.�
The following short form
certificates of notarial acts are sufficient for the purposes indicated, if
completed with the information required by section 358.47, subsection (a):�
(1) For an acknowledgment in
an individual capacity;
State of ������������.�
County of ������������.
This instrument was
acknowledged before me on ..........(date) by ....................(name(s) of
person(s)).
����������������������������������������������������������������������������������������������������������������� ������������..�������.
����������������������������������������������������������������������������������������������������������������� (Signature
of notarial officer)
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13092
(Seal, if
any Stamp)
����������������������������������������������������������������������������������������������������������������� ������������������.�..
����������������������������������������������������������������������������������������������������������������� Title
(and Rank)
����������������������������������������������������������������������������������������������������������������� My
commission expires: ���������..
(2) For an acknowledgment in a representative capacity:
State of
�������������
County of
������������
This instrument was acknowledged before me on ..........(date)
by ....................(name(s) of person(s)) as
........................................(type of authority, e.g., officer,
trustee, etc.) of .............................�
.................(name of party on behalf of whom the instrument was
executed).
����������������������������������������������������������������������������������������������������������������� �������������������...
����������������������������������������������������������������������������������������������������������������� (Signature
of notarial officer)
(Seal, if
any Stamp)
����������������������������������������������������������������������������������������������������������������� �������������������...
����������������������������������������������������������������������������������������������������������������� Title
(and Rank)
����������������������������������������������������������������������������������������������������������������� My
commission expires: ���������..
(3) For a verification upon oath or affirmation:
State of
�������������.
County of
������������..
Signed and sworn to (or affirmed) before me on .........(date)
by ...................(name(s) of person(s) making statement).
����������������������������������������������������������������������������������������������������������������� �������������������
����������������������������������������������������������������������������������������������������������������� (Signature
of notarial officer)
(Seal, if
any Stamp)
����������������������������������������������������������������������������������������������������������������� �������������������...
����������������������������������������������������������������������������������������������������������������� Title
(and Rank)
����������������������������������������������������������������������������������������������������������������� My
commission expires: ���������..
(4) For witnessing or attesting a signature:
State of
�������������.
County of
������������.
Signed or attested before me on ..........(date) by
....................(name(s) of person(s)).
����������������������������������������������������������������������������������������������������������������� �������������������...
����������������������������������������������������������������������������������������������������������������� (Signature
of notarial officer)
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Day - Saturday, May 15, 2010 - Top of Page 13093
(Seal, if any Stamp)
����������������������������������������������������������������������������������������������������������������� �������������������...
����������������������������������������������������������������������������������������������������������������� Title
(and Rank)
����������������������������������������������������������������������������������������������������������������� My
commission expires: ���������..
(5) For attestation of a
copy of a document:
State of ������������.�
County of ������������.
I certify that this is a
true and correct copy of a document in the possession of
....................� .
Dated: ����������.��
����������������������������������������������������������������������������������������������������������������� �������������������...
����������������������������������������������������������������������������������������������������������������� (Signature
of notarial officer)
(Seal, if any Stamp)
����������������������������������������������������������������������������������������������������������������� �������������������...
����������������������������������������������������������������������������������������������������������������� Title
(and Rank)
����������������������������������������������������������������������������������������������������������������� My
commission expires: ���������..
Sec. 7.� Minnesota Statutes 2008, section 359.01,
subdivision 2, is amended to read:
Subd. 2.� Nonresident
notaries.� (a) The governor, by and
with the advice and consent of the senate, may appoint as notary public a
person who is not a resident of this state if:
(1) the person is a resident
of Wisconsin, Iowa, North Dakota, or South Dakota, and of a county that
shares a boundary with this state;
(2) the person designates
the secretary of state as agent for the service of process for all purposes
relating to notarial acts and for receipt of all correspondence relating to
notarial acts.; and
(3) the person designates
the Minnesota county in which the person's notary commission will be recorded
pursuant to section 359.061.
(b) The secretary of state
shall receive applications for nonresident notary appointments and commissions,
shall keep a register of those persons appointed and commissioned as notaries
public by the governor with the advice and consent of the senate, shall update
that register when informed of a change in name and address by a notary public,
shall process applications by a notary public for reappointment, shall receive
fees for the performance of these functions to be deposited into the general
fund, and shall perform those clerical and administrative duties associated
with these functions.� The governor may
also receive such applications directly.
Sec. 8.� Minnesota Statutes 2009 Supplement, section
359.01, subdivision 3, is amended to read:
Subd. 3.� Fees.� (a) When making application for a
commission the applicant must submit, along with the information required by
the secretary of state, a nonrefundable fee of $40 $120, which shall
be forwarded by the secretary of state to the commissioner of management and
budget to be deposited in the state treasury and credited to the general fund.
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(b) Except as otherwise provided in paragraph (a), all
fees shall be retained by the secretary of state and are nonreturnable, except
for an overpayment of a fee.
Sec. 9.�
Minnesota Statutes 2008, section 359.02, is amended to read:
359.02
TERM.�
A notary commissioned under section 359.01 holds office
for five years until January 31 of the fifth year following the year
the commission was issued, unless sooner removed by the governor or the
district court, or by action of the commissioner of commerce.� Within 60 days Six months
before the expiration of the commission, a notary may apply for
reappointment renew the notary's commission for a new term to
commence and to be designated in the new commission as beginning upon the day
immediately following the date of the expiration.� A notary whose commission expires on
January 1, 2005, may apply for reappointment six months before after
the expiration date.� The reappointment or
renewal takes effect and is valid although the appointing governor may not
be in the Office of Governor on the effective day.�
All notary commissions expire on January 31 of the
fifth year following the year of issue.
EFFECTIVE
DATE.� The provisions of this section
relating to the time during which a notary's commission may be renewed are
effective July 31, 2011.� The remainder
of this section is effective August 1, 2010.
Sec. 10.�
Minnesota Statutes 2008, section 359.03, subdivision 1, is amended to
read:
Subdivision 1.� Requirement.� Every notary, including an ex officio
notary under section 358.15, shall get obtain an official seal
notarial stamp as specified in subdivision 3, with which to authenticate
official acts, and upon which shall be engraved the arms of this state, the
words "notarial seal." The seal, with official
notarial stamp, and the notary's official register, is journal,
are the personal property of the notary and are exempt from execution,
and, on death or removal from office, the register must be deposited with the
court administrator of the district court of the notary's county.
Sec. 11.�
Minnesota Statutes 2008, section 359.03, subdivision 2, is amended to
read:
Subd. 2.� Validation and legalization of certain
instruments.� (a) All
instruments heretofore duly made and executed which have been acknowledged
before a notary public as provided by law, but the seal or stamp used
thereon has engraved on it "notary public," are hereby validated and legalized,
and in case such instruments are recorded, the recording is hereby validated
and legalized, and all such instruments are validated to the same extent as
though properly sealed at the time of their acknowledgment.� This subdivision shall not affect any action
now pending in any of the courts of this state.
(b) The official notarial stamp required by this
section, whether applied to the record physically or electronically, is deemed
to be a "seal" for purposes of the admission of a document in court.
Sec. 12.�
Minnesota Statutes 2008, section 359.03, subdivision 3, is amended to
read:
Subd. 3.� Specifications.� The seal of every notary public may
be affixed by a stamp that will print a seal which legibly reproduces under
photographic methods The official notarial stamp consists of the
seal of the state of Minnesota, the name of the notary as it appears on the
commission or the name of the ex officio notary, the words "Notary
Public," or "Notarial Officer" in the case of an ex officio
notary, and the words "My commission expires ...............� (or where applicable) My term is
indeterminate," with the expiration date shown thereon or may be an
electronic form on it and must be able to be reproduced in any legibly
reproducible manner.� A physical
seal used to authenticate a paper document The official notarial stamp
shall be a rectangular form of not more than three-fourths of an inch
vertically by 2-1/2 inches horizontally, with a serrated or milled edge border,
and shall contain the information required by this subdivision.
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Sec. 13.�
Minnesota Statutes 2008, section 359.03, subdivision 4, is amended to
read:
Subd. 4.� Electronic seal Notarial stamp may be affixed
electronically.� A notary's
electronic seal shall contain the notary's name, jurisdiction, and commission
expiration date, and shall be logically and securely affixed to or associated
with the electronic record being notarized.�
The information required by this section may be affixed
electronically and shall be logically and securely affixed or associated with
the electronic record being notarized.
Sec. 14.�
Minnesota Statutes 2008, section 359.061, is amended to read:
359.061
RECORD OF COMMISSION; CERTIFICATE.�
Subdivision 1.�
Resident notaries.� The commission of every notary commissioned
under section 359.01, together with: �(1)
a signature that matches the first, middle, and last name as listed on the
notary's commission and shown on the notarial stamp, and (2) a sample signature
in the style in which the notary will actually execute notarial acts, shall
be recorded in the office of the court administrator of the district court of
the notary's county of residence or in the county department to which duties
relating to notaries public have been assigned under section 485.27, in a
record kept for that purpose.�
Subd. 2.�
Nonresident notaries.� The commission of a nonresident notary
must be recorded in the Minnesota county the notary designates pursuant to
section 359.01, subdivision 2, clause (3), in the office of the court
administrator of the district court of the Minnesota county that borders the
county in which the nonresident notary resides of that county or in the
county department to which duties relating to notaries public have been
assigned under section 485.27.�
Subd. 3.�
Certificate of court
administrator.� The court
administrator, when requested, shall certify to official acts in the manner and
for the fees prescribed by statute or court rule.
Subd. 4.�
County notary certificate.� The county department, to which duties
relating to notaries public have been
assigned under section 485.27, shall certify to official acts under this
section for the fee of $5 and in the form of:
State of Minnesota
..........................� County
"I the undersigned
.........................................., in and for said county and state,
do hereby certify that ..................................., whose name is
subscribed to on the attached document held the office of notary public in said
county and state at the date of said subscription and was authorized under the
laws of this state to take acknowledgments, to administer oaths, take
depositions, acknowledgments of deeds, and other written instruments, and
exercise all such powers and duties authorized by the laws of Minnesota as
notary public.� I further certify that I
have compared the subscribed signature to the signature on file in this office
and believe them to be the same.
Signed this date .................................� in the county of
......................................, state of Minnesota."
Signature ................................................
Title
........................................................
Sec. 15.� [359.091] ACCOMMODATION OF PHYSICAL
LIMITATIONS.�
(a) A notary public may certify as to the subscription or
signature of an individual when it appears that the individual has a physical
limitation that restricts the individual's ability to sign by writing or making
a mark, pursuant to the following:
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(1) the name of an individual may be signed, or
attached electronically in the case of an electronic record, by another
individual other than the notary public at the direction and in the presence of
the individual whose name is to be signed and in the presence of the notary
public.� The signature may be made by a
rubber stamp facsimile of the person's actual signature, mark, or a signature
of the person's name or mark made by another and adopted for all purposes of
signature by the person with a physical limitation; and
(2) the words "Signature written by" or
"Signature attached by" in the case of an electronic record,
"(name of individual directed to sign or directed to attach) at the
direction and in the presence of (name as signed) on whose behalf the signature
was written" or "attached electronically" in the case of an
electronic record, or words of substantially similar effect must appear under or
near the signature.
(b) A notary public may use signals or electronic or
mechanical means to take an acknowledgment from, administer an oath or
affirmation to, or otherwise communicate with any individual in the presence of
such notary public when it appears that the individual is unable to communicate
verbally or in writing.
Sec. 16.�
Minnesota Statutes 2008, section 359.12, is amended to read:
359.12
ADMINISTRATIVE ACTIONS AND PENALTIES.�
Every notary who shall charge or receive a fee or
reward for any act or service done or rendered as a notary greater than the
amount allowed by law, or who dishonestly or unfaithfully discharges duties as
notary, or who has pleaded guilty, with or without explicitly admitting guilt,
plead nolo contendere, or been convicted of a felony, gross misdemeanor, or
misdemeanor involving moral turpitude, is subject to the penalties imposed
pursuant to section 45.027, except that.� A notary may be removed from office only by
the governor oder, the district court, or the commissioner of
commerce.� The commissioner of
commerce has all the powers provided by section 45.027 and shall proceed in
the manner provided by that section in actions against notaries.�
Notwithstanding section 359.03, subdivision 1, upon
removal from office by the commissioner of commerce, a notary public shall
deliver the notary's official notarial stamp to the commissioner of commerce.
Sec. 17.�
Minnesota Statutes 2009 Supplement, section 517.08, subdivision 1b, is
amended to read:
Subd. 1b.� Term of license; fee; premarital
education.� (a) The local registrar
shall examine upon oath the parties applying for a license relative to the
legality of the contemplated marriage.�
If one party is unable to appear in person, the party appearing may complete
the absent applicant's information.� The
local registrar shall provide a copy of the marriage application to the party
who is unable to appear, who must verify the accuracy of the party's
information in a notarized statement.�
The marriage license must not be released until the verification
statement has been received by the local registrar.� If at the expiration of a five-day period, on
being satisfied that there is no legal impediment to it, including the restriction
contained in section 259.13, the local registrar shall issue the license,
containing the full names of the parties before and after marriage, and county
and state of residence, with the county seal attached, and make a record of the
date of issuance.� The license shall be
valid for a period of six months.� Except
as provided in paragraph (c), the local registrar shall collect from the
applicant a fee of $110 for administering the oath, issuing, recording, and
filing all papers required, and preparing and transmitting to the state
registrar of vital statistics the reports of marriage required by this
section.� If the license should not be
used within the period of six months due to illness or other extenuating
circumstances, it may be surrendered to the local registrar for cancellation,
and in that case a new license shall issue upon request of the parties of the
original license without fee.� A local
registrar who knowingly issues or signs a marriage license in any manner other
than as provided in this section shall pay to the parties aggrieved an amount
not to exceed $1,000.
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(b) In case of emergency or extraordinary
circumstances, a judge of the district court of the county in which the
application is made may authorize the license to be issued at any time before
expiration of the five-day period required under paragraph (a).� A waiver of the five-day waiting period must
be in the following form:
STATE OF MINNESOTA, COUNTY OF ....................
(insert county name)
APPLICATION FOR WAIVER OF MARRIAGE LICENSE WAITING
PERIOD:
.................................................................................
(legal names of the applicants)
Represent and state as follows:
That on ......................... (date of application)
the applicants applied to the local registrar of the above-named county for a
license to marry.
That it is necessary that the license be issued before
the expiration of five days from the date of the application by reason of the
following:� (insert reason for requesting
waiver of waiting period)
.............................................................................................................
.............................................................................................................
.............................................................................................................
WHEREAS, the applicants request that the judge waive
the required five-day waiting period and the local registrar be authorized and
directed to issue the marriage license immediately.
Date:�
.............................
.......................................................................................
.......................................................................................
(Signatures of applicants)
Acknowledged before me on this .......� day of .................... .
..........................................
NOTARY PUBLIC
COURT ORDER AND AUTHORIZATION:
STATE OF MINNESOTA, COUNTY OF ....................
(insert county name)
After reviewing the above application, I am satisfied
that an emergency or extraordinary circumstance exists that justifies the
issuance of the marriage license before the expiration of five days from the
date of the application.� IT IS HEREBY
ORDERED that the local registrar is authorized and directed to issue the license
forthwith.
.....................................................
................................ (judge of district
court)
................................ (date).
(c) The marriage license fee for parties who have
completed at least 12 hours of premarital education is $40.� In order to qualify for the reduced license
fee, the parties must submit at the time of applying for the marriage license a
statement that is signed, dated, and notarized statement or
marked with a church seal, from the person who provided
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the premarital education on their letterhead confirming
that it was received.� The premarital
education must be provided by a licensed or ordained minister or the minister's
designee, a person authorized to solemnize marriages under section 517.18, or a
person authorized to practice marriage and family therapy under section
148B.33.� The education must include the
use of a premarital inventory and the teaching of communication and conflict
management skills.
(d) The statement from the person who provided the
premarital education under paragraph (b) must be in the following form:
"I, .......................... (name of educator),
confirm that .......................... (names of both parties) received at
least 12 hours of premarital education that included the use of a
premarital inventory and the teaching of communication and conflict management
skills.� I am a licensed or ordained
minister, a person authorized to solemnize marriages under Minnesota Statutes,
section 517.18, or a person licensed to practice marriage and family therapy
under Minnesota Statutes, section 148B.33."
The names of the parties in the educator's statement
must be identical to the legal names of the parties as they appear in the
marriage license application.�
Notwithstanding section 138.17, the educator's statement must be
retained for seven years, after which time it may be destroyed.
(e) If section 259.13 applies to the request for a
marriage license, the local registrar shall grant the marriage license without
the requested name change.�
Alternatively, the local registrar may delay the granting of the marriage
license until the party with the conviction:
(1) certifies under oath that 30 days have passed since
service of the notice for a name change upon the prosecuting authority and, if applicable, the attorney general and no
objection has been filed under section 259.13; or
(2) provides a certified copy of the court order
granting it.� The parties seeking the
marriage license shall have the right to choose to have the license granted
without the name change or to delay its granting pending further action on the
name change request.
Sec. 18.� REPEALER.�
Minnesota Statutes 2008, section 359.05, is repealed."
Delete the title and insert:
"A bill for an act relating to notaries public;
modifying fees; regulating commissions and notarial stamps and seals; providing
clarifications; providing for the accommodations of physical limitations;
modifying a provision relating to premarital education; amending Minnesota
Statutes 2008, sections 358.028; 358.09; 358.15; 358.47; 358.48; 359.01,
subdivision 2; 359.02; 359.03, subdivisions 1, 2, 3, 4; 359.061; 359.12;
Minnesota Statutes 2009 Supplement, sections 357.021, subdivision 2; 359.01,
subdivision 3; 517.08, subdivision 1b; proposing coding for new law in
Minnesota Statutes, chapter 359; repealing Minnesota Statutes 2008, section
359.05."
We request the adoption of this report and repassage of the
bill.
House Conferees:�
Melissa Hortman, Gail Kulick
Jackson and Mark Murdock.
Senate Conferees:�
Don Betzold, Steve Dille
and Gary Kubly.
����� Hortman moved that the report of the
Conference Committee on H. F. No. 910 be adopted and that the
bill be repassed as amended by the Conference Committee.� The motion prevailed.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13099
H. F. No. 910, A bill for an act relating to
notaries public; modifying fees; regulating commissions and notarial stamps and
seals; providing clarifications; providing for the accommodations of physical
limitations; amending Minnesota Statutes 2008, sections 358.028; 358.09;
358.15; 358.47; 358.48; 359.01, subdivision 2; 359.02; 359.03, subdivisions 1,
2, 3, 4; 359.061; 359.12; Minnesota Statutes 2009 Supplement, sections 357.021,
subdivision 2; 359.01, subdivision 3; proposing coding for new law in Minnesota
Statutes, chapter 359; repealing Minnesota Statutes 2008, section 359.05.
����� The bill was read for the third time, as
amended by Conference, and placed upon its repassage.
����� The question was taken on the repassage of
the bill and the roll was called.� There
were 108 yeas and 20 nays as follows:
����� Those who voted in the affirmative were:
Anderson, P.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dettmer
Dill
Dittrich
Doty
Drazkowski
Eastlund
Eken
Falk
Faust
Fritz
Gardner
Gottwalt
Greiling
Gunther
Hamilton
Hansen
Hausman
Haws
Hayden
Hilstrom
Hilty
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mariani
Marquart
Masin
McFarlane
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Paymar
Pelowski
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Scalze
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Spk. Kelliher
����� Those who voted in the negative were:
Anderson, B.
Anderson, S.
Brod
Buesgens
Dean
Doepke
Downey
Emmer
Hackbarth
Holberg
Loon
Mack
McNamara
Otremba
Peppin
Sanders
Scott
Seifert
Smith
Solberg
����� The bill was repassed, as amended by
Conference, and its title agreed to.
REPORT FROM
THE COMMITTEE ON RULES AND
LEGISLATIVE
ADMINISTRATION
����� Sertich from the Committee on Rules and
Legislative Administration, pursuant to rule 1.21, designated the following
bills to be placed on the Supplemental Calendar for the Day for Saturday, May
15, 2010:
����� S. F. Nos. 2629, 3379 and
2891.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13100
CALENDAR FOR THE DAY
����� S. F. No. 2629, A bill for
an act relating to elections; appropriating money for grants to counties for
voting equipment and vote-counting equipment; specifying grant terms and
procedures; repealing Laws 2005, chapter 162, section 34, subdivision 2, as
amended.
����� The bill was read for the third time and
placed upon its final passage.
����� The question was taken on the passage of
the bill and the roll was called.� There
were 128 yeas and 0 nays as follows:
����� Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Hayden
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Spk. Kelliher
����� The bill was passed and its title agreed
to.
����� Hilstrom was excused between the hours of
3:15 p.m. and 2:30 a.m.
����� S. F. No. 3379, A bill for
an act relating to public safety; appropriating money to match federal disaster
assistance made available through FEMA Public Assistance Program.�
����� The bill was read for the third time and
placed upon its final passage.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13101
����� The question was taken on the passage of
the bill and the roll was called.� There
were 100 yeas and 24 nays as follows:
����� Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Brod
Brynaert
Carlson
Clark
Cornish
Davnie
Dean
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Gottwalt
Gunther
Hackbarth
Hamilton
Haws
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Kohls
Lanning
Lenczewski
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Marquart
McFarlane
McNamara
Morrow
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Olin
Otremba
Pelowski
Peppin
Persell
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Smith
Solberg
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Ward
Welti
Westrom
Winkler
Spk. Kelliher
����� Those who voted in the negative were:
Bigham
Bly
Brown
Buesgens
Bunn
Champion
Greiling
Hansen
Hausman
Hayden
Kalin
Laine
Lesch
Liebling
Masin
Morgan
Mullery
Obermueller
Paymar
Peterson
Scalze
Slocum
Sterner
Wagenius
����� The bill was passed and its title agreed
to.
ANNOUNCEMENTS BY THE SPEAKER
����� The Speaker announced the appointment of
the following members of the House to a Conference Committee on
H. F. No. 2801:
����� Obermueller, Morrow and Hoppe.
����� The Speaker announced the appointment of
the following members of the House to a Conference Committee on
H. F. No. 3834:
����� Carlson, Huntley, Lenczewski, Greiling and
Dean.
����� The Speaker announced the appointment of
the following members of the House to a Conference Committee on
S. F. No. 3134:
����� Kahn, Winkler, Simon, Kalin and Smith.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13102
CALENDAR FOR THE DAY,
Continued
����� S. F. No. 2891, A bill for
an act relating to corrections; adopting the Interstate Compact for Juveniles;
proposing coding for new law in Minnesota Statutes, chapter 260.
����� The bill was read for the third time and
placed upon its final passage.
����� The question was taken on the passage of
the bill and the roll was called.� There
were 116 yeas and 11 nays as follows:
����� Those who voted in the affirmative were:
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Eastlund
Eken
Falk
Faust
Fritz
Gardner
Gottwalt
Greiling
Gunther
Hamilton
Hansen
Hausman
Haws
Hayden
Hilty
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Winkler
Spk. Kelliher
����� Those who voted in the negative were:
Anderson, B.
Buesgens
Drazkowski
Emmer
Hackbarth
Holberg
Hoppe
Peppin
Seifert
Smith
Westrom
����� The bill was passed and its title agreed
to.
����� S. F. No. 445, A resolution
relating to Lake of the Woods.
����� The bill was read for the third time and
placed upon its final passage.
����� The question was taken on the passage of
the bill and the roll was called.� There
were 95 yeas and 1 nay as follows:
����� Those who voted in the affirmative were:
Anzelc
Atkins
Benson
Bigham
Bly
Brynaert
Carlson
Champion
Clark
Cornish
Davnie
Dettmer
Dill
Dittrich
Doty
Downey
Eken
Falk
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13103
Faust
Fritz
Gardner
Gottwalt
Greiling
Hackbarth
Hamilton
Hansen
Hausman
Haws
Hayden
Hilty
Hoppe
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Knuth
Koenen
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mariani
Marquart
Masin
McNamara
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Obermueller
Olin
Otremba
Paymar
Persell
Peterson
Reinert
Rosenthal
Ruud
Sailer
Scalze
Scott
Seifert
Sertich
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Thao
Thissen
Tillberry
Torkelson
Wagenius
Ward
Welti
Westrom
Winkler
Spk. Kelliher
����� Those who voted in the negative were:
Drazkowski
����� The bill was passed and its title agreed
to.
����� H. F. No. 3188, A
resolution calling on the Congressional Delegation of the Great State of
Minnesota to fully support and fund passage of the Agent Orange Equity Act of
2009.
����� The bill was read for the third time and
placed upon its final passage.
����� The question was taken on the passage of
the bill and the roll was called.� There
were 105 yeas and 0 nays as follows:
����� Those who voted in the affirmative were:
Anderson, P.
Anzelc
Atkins
Benson
Bigham
Bly
Brod
Brynaert
Carlson
Champion
Clark
Cornish
Davnie
Dill
Dittrich
Doty
Drazkowski
Eastlund
Eken
Falk
Faust
Fritz
Gardner
Gottwalt
Greiling
Hackbarth
Hamilton
Hansen
Hausman
Haws
Hayden
Hilty
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mariani
Marquart
Masin
McFarlane
McNamara
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Obermueller
Olin
Otremba
Paymar
Persell
Peterson
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Scalze
Scott
Seifert
Sertich
Severson
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Spk. Kelliher
����� The bill was passed and its title agreed
to.
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13104
����� H. F. No. 1680
was reported to the House.
McNamara, Gunther and Clark
moved to amend H. F. No. 1680 as follows:
Page 2, line 1, after
"were" insert "sometimes"
Page 2, line 2, delete
"Minnesota's medical professionals"
Page 2, line 5, delete
"Minnesota public officials" and insert "some"
Page 2, line 14, after
"WHEREAS," insert "many"
Page 2, line 27, delete
"ensure that all" and insert "help"
Page 2, line 28, delete
"assistance will receive the assistance they need" and insert
"services to receive them in the least restrictive manner"
����� The motion prevailed and the amendment was adopted.
����� McNamara moved to amend H. F. No. 1680, as
amended, as follows:
����� Page 2, line 1, delete "by"
����� The motion prevailed and the amendment was adopted.
����� H. F. No. 1680, A resolution apologizing on
behalf of citizens of the state to all persons with mental illness and
developmental and other disabilities who have been wrongfully committed to
state institutions.
����� The bill was read for the third time, as amended, and placed
upon its final passage.
����� The question was taken on the passage of the bill and the roll
was called.� There were 88 yeas and 0
nays as follows:
����� Those who
voted in the affirmative were:
Anzelc
Atkins
Benson
Bigham
Bly
Brynaert
Carlson
Champion
Clark
Cornish
Davnie
Dill
Dittrich
Doty
Eken
Falk
Faust
Fritz
Gardner
Gottwalt
Greiling
Gunther
Hamilton
Hansen
Hausman
Hayden
Hilty
Hornstein
Hortman
Hosch
Howes
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Knuth
Koenen
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Mariani
Marquart
Masin
McNamara
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Obermueller
Olin
Otremba
Paymar
Persell
Peterson
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Scalze
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13105
Seifert
Sertich
Simon
Slawik
Slocum
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Wagenius
Ward
Welti
Winkler
Spk. Kelliher
����� The bill was passed, as amended, and its
title agreed to.
REPORTS FROM THE COMMITTEE ON
RULES AND LEGISLATIVE ADMINISTRATION
����� Sertich for the Committee on Rules and
Legislative Administration offered the following resolution and moved its
adoption:
����� Be It Resolved, by the House of
Representatives of the State of Minnesota, that it retains the use of the Speaker's
parking place in front of the capitol building just east of the porte-coch�re
and parking lots B, C, D, N, O and the state office building parking ramp for
members and employees of the House of Representatives during the time between
adjournment in 2010 and the convening of the House of Representatives in
2011.� The Sergeant at Arms is directed
to manage the use of the lots and ramp while the House of Representatives is
adjourned.� The Controller of the House
may continue to deduct from the check of any legislator or legislative employee
a sum adequate to cover the exercise of the parking privilege.
����� The motion prevailed and the resolution
was adopted.
����� Sertich for the Committee on Rules and Legislative
Administration offered the following resolution and moved its adoption:
����� Be It Resolved, by the
House of Representatives of the State of Minnesota, that the Chief Clerk is
directed to correct and approve the Journal of the House for the last day of
the 2010 Regular Session.
����� Be It Further Resolved that the
Chief Clerk is authorized to include in the Journal for the last day of the
2010 Regular Session any proceedings, including subsequent proceedings and any
legislative interim committees or commissions created or appointments made to
them by legislative action or by law.
����� The motion prevailed and the resolution
was adopted.
����� Sertich for the Committee on Rules and
Legislative Administration offered the following resolution and moved its adoption:
����� Be It Resolved, by the House of
Representatives of the State of Minnesota, that during the time between
adjournment in 2010 and the convening of the House of Representatives in 2011,
the Chief Clerk and Chief Sergeant at Arms under the direction of the Speaker
shall maintain House facilities in the Capitol Complex.� The House chamber, retiring room, hearing and
conference rooms, and offices shall be set up and made ready for legislative
use and reserved for the House and its committees.� Those rooms may be reserved for use by others
that are not in conflict with use by the House.�
The House Chamber, retiring room, and hearing rooms may be used by YMCA
Youth in Government, Girls' State, Young Leaders Organization, and 4-H
Leadership Conference.
����� The motion prevailed and the resolution
was adopted.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13106
����� Pursuant to rule 1.50, Sertich moved that
the House be allowed to continue in session after 12:00 midnight.� The motion prevailed.
MOTION TO ADJOURN
����� Buesgens moved that the House adjourn
until 6:00 p.m., Sunday, May 16, 2010.
����� A roll call was requested and properly
seconded.
����� The question was taken on the Buesgens
motion and the roll was called.� There
were 10 yeas and 117 nays as follows:
����� Those who voted in the affirmative were:
Anderson, B.
Beard
Buesgens
Drazkowski
Hackbarth
Holberg
Kohls
Nornes
Shimanski
Westrom
����� Those who voted in the negative were:
Anderson, P.
Anderson, S.
Anzelc
Atkins
Benson
Bigham
Bly
Brod
Brown
Brynaert
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Gottwalt
Greiling
Gunther
Hamilton
Hansen
Hausman
Haws
Hayden
Hilty
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kelly
Kiffmeyer
Knuth
Koenen
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Magnus
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Winkler
Zellers
Spk. Kelliher
����� The motion did not prevail.
����� Magnus was excused for the remainder of
today's session.
����� Sertich moved that the House recess
subject to the call of the Chair.� The
motion prevailed.
RECESS
RECONVENED
����� The House reconvened and was called to order
by Speaker pro tempore Hortman.
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13107
����� Kelly was excused for the remainder of today's session.
����� There being no objection, the order of business reverted to
Messages from the Senate.
MESSAGES FROM THE SENATE
����� The following messages were received from the Senate:
Madam Speaker:
����� I hereby announce that the Senate has
concurred in and adopted the report of the Conference Committee on:
H. F. No. 910,
A bill for an act relating to notaries public; modifying fees; regulating
commissions and notarial stamps and seals; providing clarifications; providing
for the accommodations of physical limitations; amending Minnesota Statutes
2008, sections 358.028; 358.09; 358.15; 358.47; 358.48; 359.01, subdivision 2;
359.02; 359.03, subdivisions 1, 2, 3, 4; 359.061; 359.12; Minnesota Statutes
2009 Supplement, sections 357.021, subdivision 2; 359.01, subdivision 3;
proposing coding for new law in Minnesota Statutes, chapter 359; repealing
Minnesota Statutes 2008, section 359.05.
����� The Senate has repassed said bill in
accordance with the recommendation and report of the Conference Committee.� Said House File is herewith returned to the
House.
Colleen
J. Pacheco,
First Assistant Secretary of the Senate
Madam Speaker:
����� I hereby announce that the Senate accedes
to the request of the House for the appointment of a Conference Committee on
the amendments adopted by the Senate to the following House File:
H. F. No. 2801,
A bill for an act relating to establishing complete streets program and
requiring reports; amending Minnesota Statutes 2008, sections 162.02,
subdivision 3a; 162.09, subdivision 3a; proposing coding for new law in
Minnesota Statutes, chapter 174.
The
Senate has appointed as such committee:
Senators
Murphy, Lourey and Jungbauer.
Said
House File is herewith returned to the House.
Colleen J. Pacheco, First Assistant Secretary of the Senate
Madam Speaker:
����� I hereby announce that the Senate accedes
to the request of the House for the appointment of a Conference Committee on
the amendments adopted by the Senate to the following House File:
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13108
H. F. No. 3834,
A bill for an act relating to state government; requiring the commissioner of
Minnesota Management and Budget to provide a cash flow forecast to the governor
and legislature; proposing coding for new law in Minnesota Statutes, chapter
16A.
The
Senate has appointed as such committee:
Senators
Cohen, Bakk, Stumpf, Berglin and Senjem.
Said
House File is herewith returned to the House.
Colleen J. Pacheco, First Assistant Secretary of the Senate
Madam Speaker:
I hereby announce the
following change in the membership of the Conference Committee on:
H. F. No. 3729,
A bill for an act relating to the financing and operation of state and local
government; making policy, technical, administrative, payment, enforcement,
collection, refund, and other changes to individual income; corporate
franchise, estate, sales and use, local taxes, gross receipts, gross revenues,
cigarette, tobacco, insurance, property, minerals, petroleum, and other taxes
and tax-related provisions; requiring sunset of new tax expenditures; property
tax reform, accountability, value, and efficiency provisions; modifying certain
payment schedules; making changes to tax-forfeited land, emergency debt
certificate, local government aid, job opportunity building zone, special
service district, agricultural preserve, tax increment financing, economic
development authority, and special taxing district provisions; increasing and
modifying certain borrowing authorities; modifying bond allocation provisions;
specifying duties of assessors; requiring studies; providing appointments;
repealing political contribution refund; appropriating money; amending
Minnesota Statutes 2008, sections 60A.209, subdivision 1; 82B.035, subdivision
2; 103D.335, subdivision 17; 270.075, subdivisions 1, 2; 270.41, subdivision 5;
270A.03, subdivision 7; 270C.11, subdivision 4; 270C.34, subdivision 1;
270C.52, subdivision 2; 270C.87; 270C.94, subdivision 3; 272.0213; 272.025,
subdivisions 1, 3; 272.029, subdivisions 4, 7; 273.061, subdivisions 7, 8;
273.113, subdivision 3; 273.1231, subdivision 1; 273.1232, subdivision 1;
273.124, subdivisions 1, 8, 14; 273.13, subdivision 34; 273.1392; 275.71,
subdivisions 4, 5; 275.75; 276.02; 276.112; 279.01, subdivision 3; 279.025;
279.37, subdivision 1; 282.01, subdivisions 1, 1a, 1b, 1c, 1d, 2, 3, 4, 7, 7a,
by adding subdivisions; 289A.08, subdivision 7; 289A.09, subdivision 2; 289A.10,
subdivision 1; 289A.12, subdivision 14; 289A.30, subdivision 2; 289A.50,
subdivisions 1, 2, 4; 289A.60, subdivision 7, by adding a subdivision; 290.014,
subdivision 2; 290.067, subdivision 1; 290.081; 290.0921, subdivision 3;
290.17, subdivision 2; 290.21, subdivision 4; 290A.04, subdivision 2; 290B.03,
by adding a subdivision; 290B.04, subdivisions 3, 4; 290B.05, subdivision 1;
291.03, by adding a subdivision; 295.55, subdivisions 2, 3; 297A.62, as
amended; 297A.665; 297A.68, subdivision 39; 297A.70, subdivision 13; 297A.71,
subdivisions 23, 39; 297A.995, subdivisions 10, 11; 297F.01, subdivision 22a;
297F.04, by adding a subdivision; 297F.07, subdivision 4; 297F.25, subdivision
1; 297I.01, subdivision 9; 297I.05, subdivision 7; 297I.30, subdivisions 1, 2,
7, 8; 297I.40, subdivisions 1, 5; 297I.65, by adding a subdivision; 298.282,
subdivision 1; 428A.12; 428A.18, subdivision 2; 469.101, subdivision 1;
469.319, subdivision 5; 469.3193; 473.39, by adding a subdivision; 473H.05,
subdivision 1; 474A.04, subdivision 6; 474A.091, subdivision 3; Minnesota
Statutes 2009 Supplement, sections 134.34, subdivision 4; 137.025, subdivision
1; 273.114, subdivision 2; 273.124, subdivision 3a; 273.13, subdivisions 23,
25; 275.065, subdivision 3; 275.70, subdivision 5, as amended; 276.04,
subdivision 2; 279.01, subdivision 1; 289A.18, subdivision 1; 289A.20,
subdivision 4; 290.01, subdivisions 19a, 19b, as amended, 19d; 290.06,
subdivision 2c; 290.0671, subdivision 1; 290.091, subdivision 2; 290B.03,
subdivision 1; 291.005, subdivision 1, as amended; 297I.35, subdivision 2;
475.755; 477A.011, subdivision 36, as amended; 477A.013, subdivision 8; Laws
2001, First Special Session chapter 5, article 3, section 50, as amended; Laws
2002, chapter 377, article 3, section 25, as amended; Laws 2009, chapter 88,
article 2, section 49; article 4, sections 5; 23, subdivision 4; Laws 2010,
chapter 216, sections 2, subdivision 3; 3, subdivision 6; by adding
subdivisions; 4,
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13109
subdivisions 1, 2, 4, 6, 7,
8; proposing coding for new law in Minnesota Statutes, chapters 3; 6; 270C;
273; 296A; 524; 645; repealing Minnesota Statutes 2008, sections 10A.322,
subdivision 4; 13.4967, subdivision 2; 282.01, subdivisions 9, 10, 11; 290.06,
subdivision 23; 297I.30, subdivisions 4, 5, 6; 383A.76.
The name of Senjem has been stricken, and the name of Rosen
has been added.
Colleen J. Pacheco, First
Assistant Secretary of the Senate
Madam Speaker:
����� I hereby announce
that the Senate has concurred in and adopted the report of the Conference
Committee on:
����� S. F. No. 560.
����� The Senate has repassed
said bill in accordance with the recommendation and report of the Conference
Committee.� Said Senate File is herewith
transmitted to the House.
Colleen J. Pacheco, First
Assistant Secretary of the Senate
CONFERENCE COMMITTEE REPORT ON S. F. NO. 560
A bill for
an act relating to public safety; authorizing the expungement of criminal
records for certain individuals who have received stays of adjudication or
diversion; authorizing expungements without petitions in certain cases where
charges were dismissed against a person upon prosecutorial approval and with
victim notification; requiring persons petitioning for an expungement to
provide a copy of the criminal complaint or police report; authorizing the
opening of certain expunged records without a court hearing; amending Minnesota
Statutes 2008, sections 609A.02, subdivision 3; 609A.03, subdivisions 2, 7;
proposing coding for new law in Minnesota Statutes, chapter 609A.
May 14,
2010
The Honorable James P. Metzen
President of the Senate
The Honorable Margaret Anderson
Kelliher
Speaker of the House of
Representatives
We, the
undersigned conferees for S. F. No. 560 report that we have
agreed upon the items in dispute and recommend as follows:
That the
House recede from its amendments and that S. F. No. 560 be
further amended as follows:
Page 1,
line 24, after the period, insert "This clause does not apply to
felony-level crimes of violence as defined in section 624.712, subdivision 5,
that are codified in chapter 609."
Page 3,
lines 23 and 24, delete the new language
Page 3,
line 25, reinstate the stricken language and strike "prosecution, or
sentencing," and delete "without a"
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13110
Page 3,
after line 25, insert:
"(2)
an expunged record may be opened upon request by a prosecutor, or a probation
officer for sentencing purposes, without a court order;"
Page 3,
line 26, strike "(2)" and insert "(3)" and after
"conviction" insert "or delinquency proceeding"
Page 3,
line 28, strike "(3)" and insert "(4)" and after
"conviction" insert "or delinquency proceeding"
We request the adoption of this report and repassage of the
bill.
Senate Conferees:�
Ron Latz, Linda Higgins
and Julianne Ortman.
House Conferees:�
Bobby Joe Champion, Debra
Hilstrom and Tony Cornish.
����� Champion moved that the report of the
Conference Committee on S. F. No. 560 be adopted and that the
bill be repassed as amended by the Conference Committee.� The motion prevailed.
S. F. No. 560,
A bill for an act relating to public safety; authorizing the expungement of
criminal records for certain individuals who have received stays of
adjudication or diversion; authorizing expungements without petitions in
certain cases where charges were dismissed against a person upon prosecutorial
approval and with victim notification; requiring persons petitioning for an
expungement to provide a copy of the criminal complaint or police report; authorizing
the opening of certain expunged records without a court hearing; amending
Minnesota Statutes 2008, sections 609A.02, subdivision 3; 609A.03, subdivisions
2, 7; proposing coding for new law in Minnesota Statutes, chapter 609A.
����� The bill was read for the third time, as
amended by Conference, and placed upon its repassage.
����� The question was taken on the repassage of
the bill and the roll was called.� There
were 87 yeas and 41 nays as follows:
����� Those who voted in the affirmative were:
Anzelc
Atkins
Benson
Bigham
Bly
Brown
Brynaert
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dill
Dittrich
Doty
Eken
Falk
Faust
Gardner
Greiling
Hansen
Hausman
Haws
Hayden
Hilty
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Knuth
Koenen
Kohls
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
Morgan
Morrow
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Scalze
Sertich
Simon
Slawik
Slocum
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Wagenius
Ward
Welti
Winkler
Spk. Kelliher
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13111
����� Those who
voted in the negative were:
Anderson, B.
Anderson, P.
Anderson, S.
Beard
Brod
Buesgens
Dean
Dettmer
Doepke
Downey
Drazkowski
Eastlund
Emmer
Fritz
Garofalo
Gottwalt
Gunther
Hackbarth
Hamilton
Holberg
Hoppe
Kath
Kiffmeyer
Lanning
Loon
Mack
McFarlane
McNamara
Murdock
Nornes
Peppin
Sanders
Scott
Seifert
Severson
Shimanski
Smith
Torkelson
Urdahl
Westrom
Zellers
����� The bill was repassed, as amended by
Conference, and its title agreed to.
Madam Speaker:
����� I hereby announce
that the Senate has concurred in and adopted the report of the Conference
Committee on:
����� S. F. No. 2642.
����� The Senate has
repassed said bill in accordance with the recommendation and report of the
Conference Committee.� Said Senate File
is herewith transmitted to the House.
Colleen J. Pacheco, First
Assistant Secretary of the Senate
CONFERENCE COMMITTEE REPORT ON S. F. NO. 2642
A bill for
an act relating to legislation; correcting erroneous, ambiguous, and omitted
text and obsolete references; eliminating redundant, conflicting, and
superseded provisions; making miscellaneous technical corrections to laws and
statutes; amending Minnesota Statutes 2008, sections 3.7393, subdivision 12;
12A.05, subdivision 3; 13.321, subdivision 10; 13.411, subdivision 5; 13.861,
subdivision 2; 16B.24, subdivision 5; 16D.11, subdivision 7; 53C.01, subdivision
12a; 84.797, subdivision 6; 84.803, subdivision 2; 84.8045; 115A.932,
subdivision 1; 116.155, subdivision 3; 125A.64, subdivision 6; 126C.55,
subdivision 6; 128D.03, subdivision 2; 129C.10, subdivision 8; 136F.61;
168.002, subdivision 13; 168.013, subdivision 1; 169.67, subdivision 1;
190.025, subdivision 3; 214.04, subdivision 1; 216B.1691, subdivision 1;
245A.18, subdivision 2; 256L.04, subdivision 1; 260C.301, subdivision 1;
270.41, subdivision 5; 273.1115, subdivisions 1, 3; 273.124, subdivision 11; 290.0921,
subdivision 3a; 297A.61, subdivision 3; 309.72; 325F.675, subdivision 6;
325F.732, subdivision 2; 332.37; 332.40, subdivision 2; 332.52, subdivision 3;
374.02; 469.154, subdivision 3; 473.599, subdivision 8; 490.133; 507.071,
subdivision 16; 515B.1-102; Minnesota Statutes 2009 Supplement, sections
16A.126, subdivision 1; 16C.138, subdivision 2; 47.60, subdivisions 4, 6;
53.09, subdivision 2; 69.772, subdivision 6; 116J.401, subdivision 2; 120B.30,
subdivisions 1, 2; 122A.60, subdivision 2; 124D.10, subdivisions 3, 8, 14, 15,
23, 25; 152.025; 168.33, subdivision 7; 169.011, subdivision 71; 169.865,
subdivision 1; 176.135, subdivision 8; 246B.06, subdivision 7; 256.969,
subdivision 3b; 256B.0659, subdivision 3; 256B.5012, subdivision 8; 260C.212,
subdivision 7; 270.97; 270C.445, subdivision 7; 299A.61, subdivision 1;
332B.07, subdivisions 1, 4; 332B.09, subdivision 3; 424A.02, subdivision 10;
524.5-701; 571.914, subdivision 4; 626.557, subdivision 20; Laws 2009, chapter
78, article 8, section 22, subdivision 3; Laws 2009, chapter 79, article 10,
section 48; Laws 2009, chapter 88, article 5, section 17; Laws 2009, chapter
172, article 1, section 2, subdivision 5; repealing Minnesota Statutes 2008,
sections 13.6435, subdivision 9; 15.38, subdivision 5; 168.098; 256B.041,
subdivision 5; 256D.03, subdivision 5; Laws 2005, First Special Session chapter
4, article 8, section 87; Laws 2006, chapter 277, article 1, sections 1; 3;
Laws 2008, chapter 287, article 1, section 104; Laws 2008, chapter 300, section
6; Laws 2009, chapter 78, article 4, section 41; Laws 2009, chapter 88, article
6, sections 14; 15; 16; Laws 2009, chapter 169, article 10, section 32;
Minnesota Rules, parts 9525.0750; 9525.0760; 9525.0770; 9525.0780; 9525.0790;
9525.0800; 9525.0810; 9525.0820; 9525.0830.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13112
May 13, 2010
The Honorable James P. Metzen
President of the Senate
The Honorable Margaret Anderson
Kelliher
Speaker of the House of
Representatives
We, the
undersigned conferees for S. F. No. 2642 report that we have
agreed upon the items in dispute and recommend as follows:
That the
Senate concur in the House amendment.
We request the adoption of this report and repassage of the
bill.
Senate Conferees:�
Mee Moua, Satveer Chaudhary, Bill
Ingebrigtsen, Ann H. Rest and Dan
Skogen.
House Conferees:� Gail
Kulick Jackson, Debra Hilstrom, Bobby Joe Champion, Joe Atkins and Paul Kohls.
����� Jackson moved that the report of the
Conference Committee on S. F. No. 2642 be adopted and that the bill
be repassed as amended by the Conference Committee.� The motion prevailed.
S. F. No. 2642,
A bill for an act relating to legislation; correcting erroneous, ambiguous, and
omitted text and obsolete references; eliminating redundant, conflicting, and superseded
provisions; making miscellaneous technical corrections to laws and statutes;
amending Minnesota Statutes 2008, sections 3.7393, subdivision 12; 12A.05,
subdivision 3; 13.321, subdivision 10; 13.411, subdivision 5; 13.861,
subdivision 2; 16B.24, subdivision 5; 16D.11, subdivision 7; 53C.01,
subdivision 12a; 84.797, subdivision 6; 84.803, subdivision 2; 84.8045;
115A.932, subdivision 1; 116.155, subdivision 3; 125A.64, subdivision 6;
126C.55, subdivision 6; 128D.03, subdivision 2; 129C.10, subdivision 8;
136F.61; 168.002, subdivision 13; 168.013, subdivision 1; 169.67, subdivision
1; 190.025, subdivision 3; 214.04, subdivision 1; 216B.1691, subdivision 1;
245A.18, subdivision 2; 256L.04, subdivision 1; 260C.301, subdivision 1;
270.41, subdivision 5; 273.1115, subdivisions 1, 3; 273.124, subdivision 11;
290.0921, subdivision 3a; 297A.61, subdivision 3; 309.72; 325F.675, subdivision
6; 325F.732, subdivision 2; 332.37; 332.40, subdivision 2; 332.52, subdivision
3; 374.02; 469.154, subdivision 3; 473.599, subdivision 8; 490.133; 507.071,
subdivision 16; 515B.1-102; Minnesota Statutes 2009 Supplement, sections
16A.126, subdivision 1; 16C.138, subdivision 2; 47.60, subdivisions 4, 6;
53.09, subdivision 2; 69.772, subdivision 6; 116J.401, subdivision 2; 120B.30,
subdivisions 1, 2; 122A.60, subdivision 2; 124D.10, subdivisions 3, 8, 14, 15,
23, 25; 152.025; 168.33, subdivision 7; 169.011, subdivision 71; 169.865,
subdivision 1; 176.135, subdivision 8; 246B.06, subdivision 7; 256.969,
subdivision 3b; 256B.0659, subdivision 3; 256B.5012, subdivision 8; 260C.212,
subdivision 7; 270.97; 270C.445, subdivision 7; 299A.61, subdivision 1;
332B.07, subdivisions 1, 4; 332B.09, subdivision 3; 424A.02, subdivision 10;
524.5-701; 571.914, subdivision 4; 626.557, subdivision 20; Laws 2009, chapter
78, article 8, section 22, subdivision 3; Laws 2009, chapter 79, article 10,
section 48; Laws 2009, chapter 88, article 5, section 17; Laws 2009, chapter
172, article 1, section 2, subdivision 5; repealing Minnesota Statutes 2008, sections
13.6435, subdivision 9; 15.38, subdivision 5; 168.098; 256B.041, subdivision 5;
256D.03, subdivision 5; Laws 2005, First Special Session chapter 4, article 8,
section 87; Laws 2006, chapter 277, article 1, sections 1; 3; Laws 2008,
chapter 287, article 1, section 104; Laws 2008, chapter 300, section 6; Laws
2009, chapter 78, article 4, section 41; Laws 2009, chapter 88, article 6,
sections 14; 15; 16; Laws 2009, chapter 169, article 10, section 32; Minnesota
Rules, parts 9525.0750; 9525.0760; 9525.0770; 9525.0780; 9525.0790; 9525.0800;
9525.0810; 9525.0820; 9525.0830.
����� The bill was read for the third time, as
amended by Conference, and placed upon its repassage.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13113
����� The question was taken on the repassage of
the bill and the roll was called.� There
were 128 yeas and 0 nays as follows:
����� Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Hayden
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
����� The bill was repassed, as amended by
Conference, and its title agreed to.
Madam Speaker:
����� I hereby announce
that the Senate has concurred in and adopted the report of the Conference
Committee on:
����� S. F. No. 2725.
����� The Senate has repassed
said bill in accordance with the recommendation and report of the Conference
Committee.� Said Senate File is herewith
transmitted to the House.
Colleen J. Pacheco, First
Assistant Secretary of the Senate
CONFERENCE COMMITTEE REPORT ON S. F. NO. 2725
A bill for
an act relating to public safety; establishing a certification process for
multijurisdictional gang and drug task forces; regulating law enforcement
criminal gang investigative databases; classifying data received from law
enforcement agencies in other states; changing membership of a council;
delineating uses of data in the comprehensive incident-based reporting system;
restricting the acquisition of cell phone tracking devices; amending Minnesota
Statutes 2008, sections 13.82, by adding a subdivision; 299A.641; 299C.091,
subdivision 4; 299C.40, subdivision 2; 609.531, subdivision 1; proposing coding
for new law in Minnesota Statutes, chapters 13; 626; 626A.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13114
May 15,
2010
The Honorable James P. Metzen
President of the Senate
The Honorable Margaret Anderson
Kelliher
Speaker of the House of
Representatives
We, the
undersigned conferees for S. F. No. 2725 report that we have
agreed upon the items in dispute and recommend as follows:
That the
House recede from its amendments and that S. F. No. 2725 be
further amended as follows:
Delete
everything after the enacting clause and insert:
"Section
1.� [299A.642]
VIOLENT CRIME COORDINATING COUNCIL.�
Subdivision
1.� Coordinating council established.� The Violent Crime Coordinating Council
is established to provide guidance related to the investigation and prosecution
of gang and drug crime.� For the purposes
of this section, "gang and drug crime" includes violent crimes
associated with gang activity.
Subd. 2.� Membership.� The coordinating council shall consist
of the following individuals or their designees:
(1) the
director of the Office of Special Investigations as the representative of the
commissioner of corrections;
(2) the
superintendent of the Bureau of Criminal Apprehension as the representative of
the commissioner of public safety;
(3) the
attorney general;
(4) four
chiefs of police, selected by the Minnesota Chiefs of Police Association, of
which one must be employed by the city of Minneapolis, one must be employed by
the city of St. Paul, one must be employed by a municipality located in
the seven-county metropolitan area excluding Minneapolis and St. Paul, and
one must be employed in greater Minnesota;
(5) four
sheriffs, selected by the Minnesota Sheriffs Association, of which, one must
work in Hennepin County, one must work in Ramsey County, one must work in
Anoka, Carver, Dakota, Scott, or Washington county, and one must work in
greater Minnesota;
(6) the
United States attorney for the district of Minnesota;
(7) two
county attorneys, selected by the Minnesota County Attorneys Association, one who
must work in the seven-county metropolitan area and one who must work in
greater Minnesota;
(8) four
citizen members appointed by the commissioner of public safety in consultation
with representatives from the councils created in sections 3.922, 3.9223,
3.9225, and 3.9226; and
(9) a
tribal peace officer, selected by the commissioner of public safety, in
consultation with the Minnesota Indian Affairs Council.
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13115
The coordinating council
shall adopt procedures to govern its conduct as necessary and shall select a
chair from among its members.� The chair
shall serve a two-year term and the appointment of the chair shall alternate
between a person who works in greater Minnesota and a person who works in the
seven-county metropolitan area.
Subd. 3.� Coordinating
council's duties.� The
coordinating council shall develop an overall strategy to ameliorate the harm
caused to the public by gang and drug crime within the state of Minnesota.� Additionally, the coordinating council shall:
(1) subject to approval by
the commissioner of public safety, develop an operating procedures and policies
manual to investigate gang and drug crime in a multijurisdictional manner;
(2) identify and recommend a
candidate or candidates for statewide coordinator to the commissioner of public
safety;
(3) assist the Department of
Public Safety in developing grant eligibility criteria and operating an
objective and conflict-free grant review application process;
(4) make recommendations to
the commissioner of public safety to terminate grant funding for
multijurisdictional entities if an entity no longer operates in accordance with
subdivision 4, or no longer functions in a manner consistent with the best
interests of the state or public;
(5) assist in developing a
process to collect and share information to improve the investigation and
prosecution of gang and drug offenses;
(6) develop and approve an
operational budget for the coordinating council;
(7) develop policies that
prohibit the improper use of personal characteristics such as race, color,
national origin, gender, or religion to target individuals for law enforcement
action, prosecution, or forfeiture action; and
(8) subject to approval by
the commissioner of public safety, adopt narrowly tailored, objective criteria
and identifying characteristics for use in determining whether individuals are
or may be members of gangs involved in criminal activity.� The council shall review and update the
criteria and characteristics adopted under this clause every two years with the
objective to ensure effectiveness and relevance to the accurate identification
of subjects actively involved in criminal gang activity.� As part of its review process, the council
shall obtain input from members of communities that are impacted by criminal
gang activity.� Before adopting any
changes under this clause, the council must submit its recommendations to the
commissioner of public safety for approval.
Subd. 4.� Duties
and authority of commissioner.� (a)
The commissioner of public safety shall certify multijurisdictional entities,
and their designated fiscal agents, that are established pursuant to this
section to combat gang and drug crime and receive grant funding under
subdivision 9.� To certify an entity and
its designated fiscal agent, the commissioner shall require that a
multijurisdictional entity:
(1) be subject to the
operational command and supervision of one of the participating agencies;
(2) be subject to a biennial
operational and financial audit contracted out to an external organization not
associated with the multijurisdictional entity and designed to ensure that the
entity and its designated fiscal agent are in compliance with applicable legal
requirements, proper law enforcement standards and practices, and effective
financial controls;
(3) have adequate staffing
and funding to support law enforcement, prosecutorial, and financial
operations, including bookkeeping, evidence handling, and inventory recording;
and
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13116
(4) be
subject to any other conditions the commissioner deems necessary to carry out
the purposes of this section.
The
commissioner may use grant funds authorized under subdivision 9 to pay for
costs incurred in conducting audits under clause (2).
(b) A
multijurisdictional entity, and its designated fiscal agent, must be certified
annually by the commissioner and may not operate under this section unless it
is certified.� If the commissioner
revokes an entity's or fiscal agent's certification, the commissioner may
order, for purposes relating to this section, any or all of the following:
(1)
dissolution of the entity, its governing boards, or both;
(2)
transfer of duties of the entity, its governing boards, or both, to the Department
of Public Safety; and
(3) any
other action deemed necessary by the commissioner.
Notwithstanding
any action taken by the commissioner, any outstanding obligations or
liabilities of the entity remain with the entity and the parties of the agreement
and do not transfer.
(c) An
agreement entered into pursuant to section 471.59 and this section shall
provide that the parties to the agreement are subject to the provisions in this
subdivision and shall provide for the disposition of property and allocation of
obligations upon voluntary or mandated dissolution of the entity or upon
termination of the agreement.�
(d) Except
as provided in section 5, a multijurisdictional entity that is operating on the
effective date of this section pursuant to section 299A.641 shall have until
December 31, 2010, to be certified under this section.
Subd. 5.� Statewide
coordinator.� The commissioner
of public safety shall appoint a statewide coordinator.� The coordinator serving in the unclassified
service shall:
(1)
coordinate and monitor all multijurisdictional gang and drug enforcement
activities;
(2)
facilitate local efforts and ensure statewide coordination with efforts to
combat gang and drug crime;
(3)
facilitate training for personnel;
(4) monitor
compliance with investigative protocols; and
(5) review
audits conducted under subdivision 4, take corrective actions based on audit
results, and submit a summary report of the audits and any corrective actions
to the commissioner of public safety.
Subd. 6. �Participating
officers; employment status.� All
participating law enforcement officers must be licensed peace officers as
defined in section 626.84, subdivision 1, or qualified federal law enforcement
officers as defined in section 626.8453.�
Participating officers remain employees of the same entity that employed
them before joining any multijurisdictional entity established under this
section.� Participating officers are not
employees of the state.� Participating
officers shall be subject to annual performance reviews conducted by the
entity's operational supervisor.
Subd. 7.� Jurisdiction
and powers.� Law enforcement
officers participating in any multijurisdictional entity established under this
section have statewide jurisdiction to conduct criminal investigations and have
the same powers of arrest as those possessed by a sheriff.
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Subd. 8.� Evidence
handling.� A
multijurisdictional entity established pursuant to this section shall process
all seized cash, physical assets, and evidence through the standard evidence
handling procedures established by the participating agencies.
Subd. 9.� Grants
authorized.� The commissioner
of public safety may make grants to state and local units of government to
combat gang and drug crime.� When
awarding grants, the commissioner shall consider awarding grants under this
section to fund community-based gang intervention and prevention efforts for
youth.
Subd. 10.� Coordinating
council is permanent.� Notwithstanding
section 15.059, this section does not expire.
Subd. 11.� Governing
board; prosecutor's role.� (a)
A multijurisdictional entity established under this section shall create a
governing board consisting of the chief law enforcement officer, or designee,
from each participating agency, a prosecutor from one of the participating
agencies, and up to three additional members selected by the governing board.� A governing board shall have no less than six
members.�
(b) The prosecutor on the
governing board shall have the following responsibilities:
(1) to recommend to the
governing board the nature and frequency of training for officers assigned to a
multijurisdictional entity in order to increase successful prosecutions;
(2) to advise on the lawful
handling and processing of seized property and evidence and forfeited property
and money; and
(3) to ensure that seizures
and forfeitures are reported in accordance with section 609.5315, subdivision
6.
Subd. 12.� Funding.� Participating agencies may accept
lawful grants or contributions from any federal source or legal business or
entity.
Subd. 13.� Role
of attorney general.� The
attorney general or a designee shall generally advise on any matters that the
coordinating council deems appropriate.
Subd. 14.� Attorney
general; community liaison.� (a)
The attorney general or a designee shall serve as a liaison between the
coordinating council and the councils created in sections 3.922, 3.9223,
3.9225, and 3.9226.� The attorney general
or designee will be responsible for:
(1) informing the councils
of the plans, activities, and decisions and hearing their reactions to those
plans, activities, and decisions; and
(2) providing the
coordinating council with the position of the councils on the coordinating
council's plan, activities, and decisions.
(b) In no event is the
coordinating council required to disclose the names of individuals identified
by it to the councils referenced in this subdivision.
(c) Nothing in this
subdivision changes the data classification of any data held by the
coordinating council.
Subd. 15.� Required
reports.� By February 1 of each
year, the commissioner of public safety shall submit the following reports 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:�
(1) a report containing a
summary of all audits conducted on multijurisdictional entities under
subdivision 4;
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(2) a report on the results
of audits conducted on data submitted to the criminal gang investigative data
system under section 299C.091; and
(3) a report on the
activities and goals of the coordinating council.�
Sec. 2.� Minnesota Statutes 2008, section 299C.091,
subdivision 4, is amended to read:
Subd. 4.� Audit
of data submitted to system; reports.�
(a) At least once every three years, the bureau shall conduct
periodic random audits of data under subdivision 2 that documents
inclusion of an individual in, and removal of an individual from, the
criminal gang investigative data system for the purpose of determining the
validity, completeness, and accuracy of data submitted to the system.� The bureau has access to the documenting data
for purposes of conducting an audit.� By
October 1 of each year, the bureau shall submit a report on the results of the
audits to the commissioner of public safety.
(b) If any audit
requirements under federal rule or statute overlap with requirements in
paragraph (a), the audit required by paragraph (a) may be done in conjunction
with the federal audit to the extent they overlap.� Nothing in this paragraph shall be construed
to eliminate any audit requirements specified in this subdivision.
Sec. 3.� Minnesota Statutes 2008, section 299C.40,
subdivision 2, is amended to read:
Subd. 2.� Purpose.� CIBRS is a statewide system containing
data from law enforcement agencies.� Data
in CIBRS must be made available to law enforcement agencies in order to:
(1) prepare a case against a
person, whether known or unknown, for the commission of a crime or other
offense for which the agency has investigative authority,;
(2) serve process in a
criminal case;
(3) inform law enforcement
officers of possible safety issues before service of process;
(4) enforce no contact
orders;
(5) locate missing persons; oder
for purposes of (6) conduct
background investigations required by section 626.87.
Sec. 4.� Minnesota Statutes 2008, section 609.531,
subdivision 1, is amended to read:
Subdivision 1.� Definitions.� For the purpose of sections 609.531 to
609.5318, the following terms have the meanings given them.
(a) "Conveyance
device" means a device used for transportation and includes, but is not
limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any
equipment attached to it.� The term
"conveyance device" does not include property which is, in fact,
itself stolen or taken in violation of the law.
(b) "Weapon used"
means a dangerous weapon as defined under section 609.02, subdivision 6, that
the actor used or had in possession in furtherance of a crime.
(c) "Property"
means property as defined in section 609.52, subdivision 1, clause (1).
(d) "Contraband"
means property which is illegal to possess under Minnesota law.
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(e) "Appropriate
agency" means the Bureau of Criminal Apprehension, the Department of
Commerce Division of Insurance Fraud Prevention, the Minnesota Division of
Driver and Vehicle Services, the Minnesota State Patrol, a county sheriff's
department, the Three Rivers Park District park rangers, the Department of
Natural Resources Division of Enforcement, the University of Minnesota Police
Department, the Department of Corrections Fugitive Apprehension Unit, oder
a city, metropolitan transit, or airport police department; or a
multijurisdictional entity established under section 299A.642 or 299A.681.
(f) "Designated
offense" includes:
(1) for weapons used:� any violation of this chapter, chapter 152,
or chapter 624;
(2) for driver's license or
identification card transactions:� any
violation of section 171.22; and
(3) for all other
purposes:� a felony violation of, or a
felony-level attempt or conspiracy to violate, section 325E.17; 325E.18;
609.185; 609.19; 609.195; 609.21; 609.221; 609.222; 609.223; 609.2231; 609.24;
609.245; 609.25; 609.255; 609.282; 609.283; 609.322; 609.342, subdivision 1,
clauses (a) to (f); 609.343, subdivision 1, clauses (a) to (f); 609.344,
subdivision 1, clauses (a) to (e), and (h) to (j); 609.345, subdivision 1,
clauses (a) to (e), and (h) to (j); 609.352; 609.42; 609.425; 609.466; 609.485;
609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561;
609.562; 609.563; 609.582; 609.59; 609.595; 609.611; 609.631; 609.66,
subdivision 1e; 609.671, subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821;
609.825; 609.86; 609.88; 609.89; 609.893; 609.895; 617.246; 617.247; or a gross
misdemeanor or felony violation of section 609.891 or 624.7181; or any
violation of section 609.324.
(g) "Controlled
substance" has the meaning given in section 152.01, subdivision 4.
Sec. 5.� MULTIJURISDICTIONAL
GANG AND DRUG STRIKE FORCES.�
A joint powers entity
established pursuant to Minnesota Statutes, section 299A.641, before the
effective date of this section that included as parties to the joint powers
agreement two counties with a population over 500,000 each is dissolved and any
governing or advisory board established by the terms of the agreement is also
dissolved.� All current and future
obligations and liabilities of the joint powers entity remain with the parties
to the agreement and do not transfer to the state.
For purposes of this
section, "population" means the most recent population estimate made
by the state demographer under Minnesota Statutes, section 4A.02.
EFFECTIVE DATE.� This section is effective July 1, 2011.
Sec. 6.� WORK
GROUP.�
(a) The superintendent of
the Bureau of Criminal Apprehension shall convene a work group of stakeholders
and interested parties to:� (1) discuss
issues and laws pertaining to criminal intelligence databases; and (2) make
recommendations on proposed legislative changes for the classification,
storage, dissemination, and use of criminal investigative data, including data
from other states, and for guidelines governing usage and collection of
criminal investigative data held by law enforcement agencies.� The work group shall be chaired by a
representative from the Bureau of Criminal Apprehension and a representative
from the Minnesota Coalition on Government Information.� The work group must include one
representative from each of the following organizations:� the Minnesota Sheriffs' Association; the
Minnesota Chiefs of Police Association; the Minnesota Police and Peace Officers
Association; the American Civil Liberties Union � Minnesota; the Minnesota
Newspaper Association; the National Association for the Advancement of Colored
People; the councils created in Minnesota Statutes, sections 3.922, 3.9223,
3.9225, and 3.9226; the Board of Public Defense; the Minnesota County Attorneys
Association; and the Minnesota City
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Attorneys Association; and a
citizen member who is knowledgeable in data privacy issues.� The work group must be balanced between law
enforcement and nonlaw enforcement representatives.� The work group shall not exceed 20 members,
including chairs.� In its discussions,
the work group shall balance public safety and privacy interests, state policy
according to Minnesota Statutes, section 260B.002, oversight, minimization of
discretion, and regulation of the collection of these data, including the
individualized criteria for inclusion in a computerized gang database.
(b) By February 1, 2011, the
work group shall submit an executive summary document to the chairs and ranking
minority members of the committees of the senate and house of representatives
with jurisdiction over criminal justice and data practices issues.� The document must summarize the work group
meetings and outline proposed legislative changes to implement recommendations
on which there is agreement.� The
Department of Public Safety shall provide administrative support to the work
group.
Sec. 7.� REVISOR
INSTRUCTION.�
The revisor of statutes
shall replace references to Minnesota Statutes, section 299A.641, in statutes
and rules with a reference to Minnesota Statutes, section 299A.642, and shall
make any other changes to statutory cross-references as necessitated by this
bill.
Sec. 8.� REPEALER.�
Minnesota Statutes 2008,
section 299A.641, is repealed.
EFFECTIVE DATE.� This section is effective December 31, 2010."
Delete the title and insert:
"A bill for an act
relating to public safety; establishing a certification process for
multijurisdictional gang and drug task forces; establishing a Violent Crime
Coordinating Council; modifying criminal gang investigative data system audit
requirements; delineating uses of data in the comprehensive incident-based
reporting system; providing for application of forfeiture requirements;
establishing a work group; amending Minnesota Statutes 2008, sections 299C.091,
subdivision 4; 299C.40, subdivision 2; 609.531, subdivision 1; proposing coding
for new law in Minnesota Statutes, chapter 299A; repealing Minnesota Statutes
2008, section 299A.641."
We request the adoption of
this report and repassage of the bill.
Senate Conferees:�
Mee Moua, D. Scott Dibble, Patricia Torres Ray, Satveer
Chaudhary and Paul Koering.
House Conferees:� Michael
Paymar, Debra Hilstrom, John Lesch, Bobby Joe Champion and Mary Liz Holberg.
����� Paymar moved that the report of the Conference Committee on
S. F. No. 2725 be adopted and that the bill be repassed as
amended by the Conference Committee.� The
motion prevailed.
S. F. No. 2725,
A bill for an act relating to public safety; establishing a certification
process for multijurisdictional gang and drug task forces; regulating law enforcement
criminal gang investigative databases; classifying data received from law
enforcement agencies in other states; changing membership of a council;
delineating uses of data in the comprehensive incident-based reporting system;
restricting the acquisition of cell
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phone tracking devices;
amending Minnesota Statutes 2008, sections 13.82, by adding a subdivision;
299A.641; 299C.091, subdivision 4; 299C.40, subdivision 2; 609.531, subdivision
1; proposing coding for new law in Minnesota Statutes, chapters 13; 626; 626A.
����� The bill was read for the third time, as
amended by Conference, and placed upon its repassage.
����� The question was taken on the repassage of
the bill and the roll was called.� There
were 128 yeas and 0 nays as follows:
����� Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Hayden
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
����� The bill was repassed, as amended by
Conference, and its title agreed to.
Madam Speaker:
����� I hereby announce
that the Senate has concurred in and adopted the report of the Conference
Committee on:
����� S. F. No. 2839.
����� The Senate has
repassed said bill in accordance with the recommendation and report of the
Conference Committee.� Said Senate File
is herewith transmitted to the House.
Colleen J. Pacheco, First
Assistant Secretary of the Senate
CONFERENCE COMMITTEE REPORT ON S. F. NO. 2839
A bill for
an act relating to commerce; regulating various licensees and other entities; modifying
definitions, informational requirements, continuing education requirements,
information reporting requirements, and notice requirements; making various
housekeeping, technical, and clarifying changes; regulating securities;
reorganizing
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and
modifying various provisions relating to real estate brokers, salespersons, and
closing agents; modifying the membership requirements of, and appointment
authority to, the real estate appraiser advisory board; regulating certain
workers' compensation self-insurers; amending Minnesota Statutes 2008, sections
45.0112; 60A.031, subdivision 4; 60A.084; 60A.204; 60A.36, by adding a
subdivision; 60K.31, subdivision 10; 61A.092, subdivision 3; 62A.046,
subdivision 6, by adding a subdivision; 62A.17, subdivision 5; 62A.3099,
subdivision 17; 62A.65, subdivision 2; 62E.02, subdivision 15; 62E.14,
subdivision 4c; 62L.05, subdivision 4; 62S.24, subdivision 8; 62S.266,
subdivision 4; 62S.29, subdivision 1; 72A.08, subdivision 4; 72A.12,
subdivision 4; 72A.20, subdivisions 10, 36, 37; 72A.492, subdivision 2; 72A.51,
subdivision 2; 72B.01; 72B.08, subdivision 8; 79A.03, subdivision 8; 79A.06,
subdivision 5; 79A.21, subdivision 3; 80A.41; 80A.46; 80A.65, subdivision 6;
82.17, subdivision 15, by adding subdivisions; 82.19; 82.21, subdivision 2;
82.24, subdivision 3; 82.29, subdivisions 4, 5, 8; 82.31, subdivisions 1, 2;
82.33, subdivisions 1, 2, by adding a subdivision; 82.34, subdivisions 1, 2, 4,
5, 13; 82.39; 82.41, subdivisions 1, 2, by adding a subdivision; 82.45,
subdivision 3, by adding subdivisions; 82.48, subdivisions 2, 3; 82B.05, as
amended; 82B.06; 82B.14; 326.3382, subdivision 3; 326B.33, subdivision 16;
326B.56, subdivision 2; 326B.86, subdivision 2; 326B.921, subdivision 6;
327B.04, subdivision 4; 332.34; 340A.409, subdivision 1; Minnesota Statutes
2009 Supplement, sections 45.027, subdivision 1; 45.30, subdivision 4; 60A.39,
subdivisions 1, 4, 5; 60A.9572, subdivision 6; 60K.361; 62A.3099, subdivision
18; 65A.29, subdivision 13; 72B.03, subdivision 2; 72B.045, subdivision 1;
72B.06; 82.31, subdivision 4; 82.32; 326B.46, subdivision 2; Laws 2007, chapter
147, article 12, section 14; proposing coding for new law in Minnesota
Statutes, chapters 82; 332; repealing Minnesota Statutes 2008, sections 72B.04;
82.19, subdivision 3; 82.22, subdivisions 1, 6, 7, 8, 9; 82.31, subdivision 6;
82.34, subdivision 16; 82.41, subdivisions 3, 7; 332.31, subdivision 7;
332.335; Minnesota Statutes 2009 Supplement, sections 65B.133, subdivision 3;
72B.02, subdivision 11.
May 14,
2010
The Honorable James P. Metzen
President of the Senate
The Honorable Margaret Anderson
Kelliher
Speaker of the House of
Representatives
We, the
undersigned conferees for S. F. No. 2839 report that we have
agreed upon the items in dispute and recommend as follows:
That the
House recede from its amendments and that S. F. No. 2839 be further
amended as follows:
Delete
everything after the enacting clause and insert:
"Section
1.� Minnesota Statutes 2008, section
45.0112, is amended to read:
45.0112 STREET AND E-MAIL ADDRESSES
REQUIRED.�
Licensees
or applicants for licenses issued by the commissioner shall provide to the
commissioner a residence telephone number, a street address where the licensee
actually resides, and a street address where the licensee's business is
physically located, and a current e-mail address for business use.� A post office box address is not
sufficient to satisfy this requirement.� The
individual shall notify the department of any change in street address, e‑mail
address for business use, or residence telephone number within ten days.
Sec. 2.� Minnesota Statutes 2009 Supplement, section
45.027, subdivision 1, is amended to read:
Subdivision
1.� General
powers.� In connection with the
duties and responsibilities entrusted to the commissioner, and Laws 1993,
chapter 361, section 2, the commissioner of commerce may:
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(1) make
public or private investigations within or without this state as the
commissioner considers necessary to determine whether any person has violated
or is about to violate any law, rule, or order related to the duties and
responsibilities entrusted to the commissioner;
(2) require
or permit any person to file a statement in writing, under oath or otherwise as
the commissioner determines, as to all the facts and circumstances concerning
the matter being investigated;
(3) hold
hearings, upon reasonable notice, in respect to any matter arising out of the
duties and responsibilities entrusted to the commissioner;
(4) conduct
investigations and hold hearings for the purpose of compiling information
related to the duties and responsibilities entrusted to the commissioner;
(5) examine
the books, accounts, records, and files of every licensee, and of every person
who is engaged in any activity regulated; the commissioner or a designated
representative shall have free access during normal business hours to the
offices and places of business of the person, and to all books, accounts,
papers, records, files, safes, and vaults maintained in the place of business;
(6) publish
information which is contained in any order issued by the commissioner;
(7) require
any person subject to duties and responsibilities entrusted to the
commissioner, to report all sales or transactions that are regulated.� The reports must be made within ten days
after the commissioner has ordered the report.�
The report is accessible only to the respondent and other governmental
agencies unless otherwise ordered by a court of competent jurisdiction; and
(8) assess
a licensee natural person or entity subject to the jurisdiction of
the commissioner the necessary expenses of the investigation performed by
the department when an investigation is made by order of the commissioner.� The cost of the investigation shall be
determined by the commissioner and is based on the salary cost of investigators
or assistants and at an average rate per day or fraction thereof so as to provide
for the total cost of the investigation.�
All money collected must be deposited into the general fund.� A natural person licensed under chapter 60K
or 82 shall not be charged costs of an investigation if the investigation
results in no finding of a violation.� This
clause does not apply to a natural person or entity already subject to the
assessment provisions of sections 60A.03 and 60A.031.
Sec. 3.� Minnesota Statutes 2009 Supplement, section
45.30, subdivision 4, is amended to read:
Subd. 4.� Credit
earned.� (a) Upon completion of
approved courses, students must earn one hour of continuing education credit
for each hour approved by the commissioner.�
Continuing education courses must be attended in their entirety in order
to receive credit for the number of approved hours.
(b)
Qualified instructors will earn three hours of continuing education credit for
each classroom hour of approved instruction that they deliver (1)
independently, or (2) as part of a team presentation in a course of two hours
or less, if they attend the course in its entirety.� For licensees other than appraisers,
no more than half of the continuing education hours required for renewal of a
license may be earned as a qualified instructor at the rate of three hours of
continuing education credit for each classroom hour of approved
instruction.� For licensed appraisers,
no more than one-half of the continuing education hours required for renewal of
a license may be earned as a qualified instructor.� No credit will be earned if the licensee has
previously obtained credit for the same course as either a student or
instructor during the same licensing period.
(c) A
licensee must not receive credit for more than eight hours of continuing
education in one day.
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Sec. 4.� Minnesota Statutes 2008, section 60A.031,
subdivision 4, is amended to read:
Subd. 4.� Examination
report; foreign and domestic companies.� (a)
The commissioner shall make a full and true report of every examination
conducted pursuant to this chapter, which shall include (1) a statement of
findings of fact relating to the financial status and other matters ascertained
from the books, papers, records, documents, and other evidence obtained by
investigation and examination or ascertained from the testimony of officers,
agents, or other persons examined under oath concerning the business, affairs,
assets, obligations, ability to fulfill obligations, and compliance with all
the provisions of the law of the company, applicant, organization, or person
subject to this chapter and (2) a summary of important points noted in the
report, conclusions, recommendations and suggestions as may reasonably be
warranted from the facts so ascertained in the examinations.� The report of examination shall be verified
by the oath of the examiner in charge thereof, and shall be prima facie
evidence in any action or proceedings in the name of the state against the
company, applicant, organization, or person upon the facts stated therein.
(b) No later
than 60 days following completion of the examination, the examiner in charge
shall file with the department a verified written report of examination under oath.� Upon receipt of the verified report, the
department shall transmit the report to the company examined, together with a
notice which provides the company examined with a reasonable opportunity of not
more than 30 days to make a written submission or rebuttal with respect to
matters contained in the examination report.
(c) Within
30 days of the end of the period allowed for the receipt of written submissions
or rebuttals, the commissioner shall fully consider and review the report,
together with the written submissions or rebuttals and the relevant portions of
the examiner's workpapers and enter an order:
(1) adopting
the examination report as filed or with modification or corrections.� If the examination report reveals that the
company is operating in violation of any law, rule, or prior order of the
commissioner, the commissioner may order the company to take any action the
commissioner considers necessary and appropriate to cure the violation;
(2)
rejecting the examination report with directions to the examiners to reopen the
examination for purposes of obtaining additional data, documentation, or
information, and refiling the report as required under paragraph (b); or
(3) calling
for an investigatory hearing with no less than 20 days' notice to the company
for purposes of obtaining additional documentation, data, information, and
testimony.
(d)(1) All
orders entered under paragraph (c), clause (1), must be accompanied by findings
and conclusions resulting from the commissioner's consideration and review of
the examination report, relevant examiner workpapers, and any written
submissions or rebuttals.� The order is a
final administrative decision and may be appealed as provided under chapter 14.� The order must be served upon the company by
certified mail, together with a copy of the adopted examination report.� Within 30 days of the issuance of the adopted
report, the company shall file affidavits executed by each of its directors
stating under oath that they have received a copy of the adopted report and
related orders.
(2) A
hearing conducted under paragraph (c), clause (3), by the commissioner or
authorized representative, must be conducted as a nonadversarial confidential
investigatory proceeding as necessary for the resolution of inconsistencies,
discrepancies, or disputed issues apparent upon the face of the filed
examination report or raised by or as a result of the commissioner's review of
relevant workpapers or by the written submission or rebuttal of the company.� Within 20 days of the conclusion of the
hearing, the commissioner shall enter an order as required under paragraph (c),
clause (1).
(3) The
commissioner shall not appoint an examiner as an authorized representative to
conduct the hearing.� The hearing must
proceed expeditiously.� Discovery by the
company is limited to the examiner's workpapers which tend to substantiate
assertions in a written submission or rebuttal.�
The commissioner or the commissioner's
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representative
may issue subpoenas for the attendance of witnesses or the production of
documents considered relevant to the investigation whether under the control of
the department, the company, or other persons.�
The documents produced must be included in the record.� Testimony taken by the commissioner or the
commissioner's representative must be under oath and preserved for the record.
This section
does not require the department to disclose information or records which would
indicate or show the existence or content of an investigation or activity of a
criminal justice agency.
(4) The
hearing must proceed with the commissioner or the commissioner's representative
posing questions to the persons subpoenaed.�
Thereafter, the company and the department may present testimony
relevant to the investigation.�
Cross-examination may be conducted only by the commissioner or the
commissioner's representative.� The
company and the department shall be permitted to make closing statements and
may be represented by counsel of their choice.
(e)(1) Upon
the adoption of the examination report under paragraph (c), clause (1), the commissioner
shall continue to hold the content of the examination report as private and
confidential information for a period of 30 days except as otherwise provided
in paragraph (b).� Thereafter, the
commissioner may open the report for public inspection if a court of competent
jurisdiction has not stayed its publication.
(2) Nothing
contained in this subdivision prevents or shall be construed as prohibiting the
commissioner from disclosing the content of an examination report, preliminary
examination report or results, or any matter relating to the reports, to the
Commerce Department or the insurance department of another state or country, or
to law enforcement officials of this or another state or agency of the federal
government at any time, if the agency or office receiving the report or matters
relating to the report agrees in writing to hold it confidential and in a
manner consistent with this subdivision.
(3) If the
commissioner determines that regulatory action is appropriate as a result of an
examination, the commissioner may initiate proceedings or actions as provided
by law.
(f) All
working papers, recorded information, documents and copies thereof produced by,
obtained by, or disclosed to the commissioner or any other person in the course
of an examination made under this subdivision, or in the course of market
analysis, must be given confidential treatment and are not subject to
subpoena and may not be made public by the commissioner or any other person,
except to the extent provided in paragraph (e).�
Access may also be granted to the National Association of Insurance
Commissioners (NAIC), the National Association of Securities Dealers
Financial Industry Regulatory Authority, and any national securities
association registered under the Securities Exchange Act of 1934.� The parties must agree in writing prior to
receiving the information to provide to it the same confidential treatment as
required by this section, unless the prior written consent of the company to
which it pertains has been obtained.� For
purposes of this section, "market analysis" means a process whereby
market conduct surveillance personnel collect and analyze information from
filed schedules, surveys, required reports, such as the NAIC Market Conduct
Annual Statement, or other sources in order to develop a baseline profile of an
insurer, review the operation or activity of an insurer, or to identify
patterns or practices of insurers licensed to do business in this state that
deviate significantly from the norm or that may pose a potential risk to the
insurance consumer.
Sec. 5.� Minnesota Statutes 2008, section 60A.084, is
amended to read:
60A.084 NOTIFICATION ON GROUP POLICIES.�
An employer
providing life or health benefits may not change benefits, limit coverage, or
otherwise restrict participation until the certificate holder or enrollee has
been notified of any changes, limitations, or restrictions.� Notice in a format which meets the
requirements of the Employee Retirement Income Security Act, United States Code
Annotated, title 29, sections 1001 to 1461, United States Department of
Labor is satisfactory for compliance with this section.
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Sec. 6.� Minnesota Statutes 2008, section 60A.204, is
amended to read:
60A.204 ADDITIONAL CHARGES AND FEES AND COMMISSIONS.�
Subdivision
1.� Placement fees.� A
surplus lines licensee may charge, in addition to the premium charged by an
eligible or ineligible surplus lines insurer, a fee to cover the cost incurred
in the placement of the policy which exceeds $25, but only to the extent that
the actual additional cost incurred for services performed by persons or
entities unrelated to the licensee exceeds that amount.
Subd. 2.� Regulation
of fees.� A surplus lines
licensee may charge a fee charged pursuant to subdivision 1 shall
and commission, in addition to the premium, that is not be excessive
or discriminatory.� The licensee shall
maintain complete documentation of all fees and commissions
charged.� Those fees shall not be
included as part of the premium for purposes of the computation of the premium
taxes.
Subd. 3.� Commission
charges.� Notwithstanding the provisions
of subdivision 1, a licensee may add a commission charge if the insurer quotes
a rate net of commission and the commission is not excessive or discriminatory.
Sec. 7.� Minnesota Statutes 2008, section 60A.36, is
amended by adding a subdivision to read:
Subd. 2a.� Third-party
notices.� An insurer shall
provide notice to a third party if:
(1) the
policyholder has, separately from the certificate, notified the insurer of the
identity of the third party; and
(2) the
third party is a licensing authority authorized by statute to receive the
notice or a state, city, or county governmental unit on whose behalf the
insured is providing services.
Sec. 8.� Minnesota Statutes 2009 Supplement, section
60A.39, subdivision 1, is amended to read:
Subdivision
1.� Issuance.� A licensed insurer or insurance producer
may provide to a third party a certificate of insurance which documents
insurance coverage.� The purpose of
For the purposes of this chapter, a certificate of insurance is to
provide a document that provides evidence of property or
liability insurance coverage and the amount of insurance issued, and
does not convey any contractual rights to the certificate holder.
Sec. 9.� Minnesota Statutes 2009 Supplement, section
60A.39, subdivision 4, is amended to read:
Subd. 4.� Cancellation
notice.� A certificate provided to a
third party must not provide for notice of cancellation that exceeds the
statutory notice of cancellation provided to the policyholder or a period of
notice specified in the policy.
Sec. 10.� Minnesota Statutes 2009 Supplement, section
60A.39, subdivision 5, is amended to read:
Subd. 5.� Filing.� An insurer not using the standard ACORD
or ISO form "Certificate of Insurance" shall file with the
commissioner, prior to its use, the form of certificate or memorandum of
insurance coverage that will be used a similar alternative
"Certificate of Insurance" covering the same information for use
by the insurer.� Filed forms may not be
amended at the request of a third party.
EFFECTIVE DATE.� This
section is effective January 1, 2011.
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Sec. 11.� Minnesota Statutes 2009 Supplement, section
60A.9572, subdivision 6, is amended to read:
Subd. 6.� Disclosures.� The applicant shall provide information
on forms required by the commissioner.�
The commissioner shall have authority, at any time, to require the
applicant to fully disclose the identity of all stockholders who hold more than
ten percent of the shares of the company, partners, officers, members, and
employees, and the commissioner may, in the exercise of the commissioner's
discretion, refuse to issue a license in the name of a legal entity if not
satisfied that any officer, employee, stockholder, partner, or member of the
legal entity who may materially influence the applicant's conduct meets the
standards of sections 60A.957 to 60A.9585.
Sec. 12.� Minnesota Statutes 2008, section 60K.31,
subdivision 10, is amended to read:
Subd. 10.� Limited
lines insurance.� "Limited lines
insurance" means those lines of insurance defined in section 60K.38, subdivision
1, paragraph (c), or any other line of insurance that the commissioner
considers necessary to recognize for the purposes of complying with section
60K.39, subdivision 5 6.�
Sec. 13.� Minnesota Statutes 2009 Supplement, section
60K.361, is amended to read:
60K.361 INSURANCE EDUCATION.�
(a)
Prelicense education must consist of 20 hours of education per line of
authority.
(b) The first
ten hours course must be include an introduction to
insurance and insurance-related concepts covering all of the major lines of
authority except variable life and variable annuities.� The course must consist of the following:
(1) rules,
regulations, and law;
(2) basic
fundamentals of insurance;
(3)
property:
(i) types of
policies;
(ii) policy
provisions;
(iii) perils,
exclusions, deductibles, and liability; and
(iv)
evaluating needs;
(4)
casualty:
(i) types of
policies;
(ii) policy
provisions;
(iii)
perils, exclusions, deductibles, and liability; and
(iv)
evaluating needs;
(5) life:
(i) types of
policies;
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(ii) policy
provisions; and
(iii) group
insurance; and
(6)
accident and health:
(i) types of
policies;
(ii) policy
provisions; and
(iii) group
insurance.
(c) The
second ten hours of insurance prelicense education must be composed of
Courses that cover a specific major line of authority and consist of must
include the following:
(1) life:
(i) types
of life insurance policies; and
(ii)
Minnesota laws, rules, and regulations pertinent to life insurance;
(2)
accident and health:
(i) types
of health insurance policies; and
(ii)
Minnesota laws, rules, and regulations pertinent to accident and health
insurance;
(3)
property:
(i)
personal lines;
(ii)
commercial lines; and
(iii)
Minnesota laws, rules, and regulations pertinent to property insurance.
(4)
casualty:
(i)
personal lines;
(ii)
commercial lines; and
(iii) Minnesota
laws, rules, and regulations pertinent to casualty insurance; and
(5)
personal lines:
(i) types
of property/casualty personal lines insurance policies; and
(ii)
Minnesota laws, rules, and regulations pertinent to property/casualty personal
lines insurance.
EFFECTIVE DATE.� This
section is effective July 1, 2010.
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Sec. 14.� Minnesota Statutes 2008, section 61A.092,
subdivision 3, is amended to read:
Subd. 3.� Notice
of options.� Upon termination of or
layoff from employment of a covered employee, the employer shall inform the
employee within 14 days after termination or layoff of:
(1) the employee's
right to elect to continue the coverage;
(2) the
amount the employee must pay monthly to the employer to retain the coverage;
(3) the
manner in which and the office of the employer to which the payment to the
employer must be made; and
(4) the
time by which the payments to the employer must be made to retain coverage.
The
employee has 60 days within which to elect coverage.� The 60-day period shall begin to run on the
date coverage would otherwise terminate or on the date upon which notice of the
right to coverage is received, whichever is later.
If the
covered employee or covered dependent dies during the 60-day election period
and before the covered employee makes an election to continue or reject
continuation, then the covered employee will be considered to have elected
continuation of coverage.� The
beneficiary previously selected by the former employee or covered dependent
would then be entitled to a death benefit equal to the amount of insurance that
could have been continued less any unpaid premium owing as of the date of
death.
Notice must
be in writing and sent by first class mail to the employee's last known address
which the employee has provided to the employer.
A notice in
substantially the following form is sufficient:�
"As a terminated or laid off employee, the law authorizes you to
maintain your group insurance benefits, in an amount equal to the amount of
insurance in effect on the date you terminated or were laid off from
employment, for a period of up to 18 months.�
To do so, you must notify your former employer within 60 days of your
receipt of this notice that you intend to retain this coverage and must make a
monthly payment of $............ at ............. by the ............. of each
month."
Sec. 15.� Minnesota Statutes 2008, section 62A.046,
subdivision 6, is amended to read:
Subd. 6.� Coordination
of benefits.� Insurers, vendors of
risk management services, nonprofit health service plan corporations,
fraternals, and health maintenance organizations may coordinate benefits to
prohibit greater than 100 percent coverage when an insured, subscriber, or
enrollee is covered by both an individual and a group contract providing
coverage for hospital and medical treatment or expenses.� Benefits coordinated under this paragraph
must provide for 100 percent coverage of an insured, subscriber, or
enrollee.� To the extent appropriate, all
coordination of benefits provisions currently applicable by law or rule to
insurers, vendors of risk management services, nonprofit health service plan
corporations, fraternals, and health maintenance organizations, shall apply to
coordination of benefits between individual and group contracts, except that
the group contract shall always be the primary plan.� Notwithstanding the definition of
"plan" in Minnesota Rules, part 2742.0200, subpart 2, and in
Minnesota Rules, part 4685.0910, subpart 7, an individual contract must
coordinate benefits with a group contract under this subdivision consistent
with applicable coordination of benefit rules.�
When a covered person's other coverage is Medicare or TRICARE, a health
plan company must determine primacy and coordinate benefits in accordance with
the Medicare Secondary Payor or TRICARE provisions of federal law.� This paragraph does not apply to specified
accident, hospital indemnity, specified disease, or other limited benefit
insurance policies.
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Sec. 16.� Minnesota Statutes 2008, section 62A.046, is
amended by adding a subdivision to read:
Subd. 7.� High-deductible
health plans.� If a health carrier
is advised by a covered person that all health plans covering the person are
high-deductible health plans and the person intends to contribute to a health
savings account established in accordance with section 223 of the Internal
Revenue Code of 1986, the primary high-deductible health plan's deductible is
not an allowable expense, except for any health care expense incurred that may
not be subject to the deductible as described in section 223(c)(2)(C) of the
Internal Revenue Code of 1986.
Sec. 17.� Minnesota Statutes 2008, section 62A.17,
subdivision 5, is amended to read:
Subd. 5.� Notice
of options.� Upon the termination of
or lay off from employment of an eligible employee, the employer shall inform
the employee within ten 14 days after termination or lay off of:
(a) (1)
the right to elect to continue the coverage;
(b) (2)
the amount the employee must pay monthly to the employer to retain the
coverage;
(c) (3) the manner in which and the
office of the employer to which the payment to the employer must be made; and
(d) (4)
the time by which the payments to the employer must be made to retain coverage.
If the
policy, contract, or health care plan is administered by a trust, the employer
is relieved of the obligation imposed by clauses (a) (1) to (d)
(4).� The trust shall inform the
employee of the information required by clauses (a) (1) to (d)
(4).
The
employee shall have 60 days within which to elect coverage.� The 60-day period shall begin to run on the
date plan coverage would otherwise terminate or on the date upon which notice
of the right to coverage is received, whichever is later.
Notice must
be in writing and sent by first class mail to the employee's last known address
which the employee has provided the employer or trust.
A notice in
substantially the following form shall be sufficient:� "As a terminated or laid off employee,
the law authorizes you to maintain your group medical insurance for a period of
up to 18 months.� To do so you must
notify your former employer within 60 days of your receipt of this notice that
you intend to retain this coverage and must make a monthly payment of
$.......... to ........... at .......... by the ............... of each
month."
Sec. 18.� Minnesota Statutes 2008, section 62A.3099,
subdivision 17, is amended to read:
Subd. 17.� Medicare-related
coverage.� "Medicare-related
coverage" means a policy, contract, or certificate issued as a supplement
to Medicare, regulated under sections 62A.3099 to 62A.44, including Medicare
select coverage; policies, contracts, or certificates that supplement Medicare
issued by health maintenance organizations; or policies, contracts, or
certificates governed by section 1833 (known as "cost" or
"HCPP" contracts) or 1876 (known as "TEFRA" or
"risk" "Cost" contracts) of the federal Social
Security Act, United States Code, title 42, section 1395, et seq., as amended;
or Section 4001 of the Balanced Budget Act of 1997 (BBA)(Public Law 105-33),
Sections 1851 to 1859 of the Social Security Act establishing Part C of the Medicare
program, known as the "Medicare Advantage program."
EFFECTIVE DATE.� This
section is effective the day following final enactment.
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Sec. 19.� Minnesota Statutes 2009 Supplement, section
62A.3099, subdivision 18, is amended to read:
Subd. 18.� Medicare
supplement policy or certificate.� "Medicare
supplement policy or certificate" means a group or individual policy of
accident and sickness insurance or a subscriber contract of hospital and
medical service associations or health maintenance organizations, other than
those policies or certificates covered by section 1833 1876 of
the federal Social Security Act, United States Code, title 42, section 1395, et
seq., or an issued policy under a demonstration project specified under
amendments to the federal Social Security Act, which is advertised, marketed,
or designed primarily as a supplement to reimbursements under Medicare for the
hospital, medical, or surgical expenses of persons eligible for Medicare or as
a supplement to Medicare Advantage plans established under Medicare Part
C.� "Medicare supplement
policy" does not include Medicare Advantage plans established under
Medicare Part C, outpatient prescription drug plans established under Medicare
Part D, oder any health care prepayment plan that provides benefits under
an agreement under section 1833(a)(1)(A) of the Social Security Act, or any
policy issued to an employer or employers or to the trustee of a fund
established by an employer where only employees or retirees, and dependents of
employees or retirees, are eligible for coverage, or any policy issued to a
labor union or similar employee organization.
EFFECTIVE DATE.� This
section is effective the day following final enactment.
Sec. 20.� Minnesota Statutes 2008, section 62A.65,
subdivision 2, is amended to read:
Subd. 2.� Guaranteed
renewal.� No individual health plan
may be offered, sold, issued, or renewed to a Minnesota resident unless the
health plan provides that the plan is guaranteed renewable at a premium rate
that does not take into account the claims experience or any change in the
health status of any covered person that occurred after the initial issuance of
the health plan to the person.� The
premium rate upon renewal must also otherwise comply with this section.� A health carrier must not refuse to renew an
individual health plan prior to enrollment in Medicare Parts A and B,
except for nonpayment of premiums, fraud, or misrepresentation.
Sec. 21.� Minnesota Statutes 2008, section 62E.02, subdivision
15, is amended to read:
Subd. 15.� Medicare.� "Medicare" means part A and
part B of the United States Social Security Act, title XVIII, as amended,
United States Code, title 42, sections 1394, et seq.� the Health Insurance for the Aged Act, title
XVIII of the Social Security Amendments of 1965, United States Code, title 42,
sections 1395 to 1395hhh, as amended, or title I, part I, of Public Law 89-97,
as amended.
Sec. 22.� Minnesota Statutes 2008, section 62E.14,
subdivision 4c, is amended to read:
Subd. 4c.� Waiver
of preexisting conditions for persons whose coverage is terminated or who
exceed the maximum lifetime benefit.� (a)
A Minnesota resident may enroll in the comprehensive health plan with a waiver
of the preexisting condition limitation described in subdivision 3 if that
persons's application for coverage is received by the writing carrier no later
than 90 days after termination of prior coverage and if the termination is for
reasons other than fraud or nonpayment of premiums.
For purposes
of this paragraph, termination of prior coverage includes exceeding the maximum
lifetime benefit of existing coverage.
Coverage in
the comprehensive health plan is effective on the date of termination of prior
coverage.� The availability of conversion
rights does not affect a person's rights under this paragraph.
This
section does not apply to prior coverage provided under policies designed
primarily to provide coverage payable on a per diem, fixed indemnity, or nonexpense
incurred basis, or policies providing only accident coverage.
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(b) An
eligible individual, as defined under the Health Insurance Portability and
Accountability Act (HIPAA), United States Code, chapter 42, section
300gg-41(b) may enroll in the comprehensive health insurance plan with a waiver
of the preexisting condition limitation described in subdivision 3 and a waiver
of the evidence of rejection or similar events described in subdivision 1,
clause (c).� The eligible individual must
apply for enrollment under this paragraph by submitting a substantially complete
application that is received by the writing carrier no later than 63 days after
termination of prior coverage, and coverage under the comprehensive health
insurance plan is effective as of the date of receipt of the complete
application.� The six-month durational
residency requirement provided in section 62E.02, subdivision 13, does not
apply with respect to eligibility for enrollment under this paragraph, but the
applicant must be a Minnesota resident as of the date that the application was
received by the writing carrier.� A
person's eligibility to enroll under this paragraph does not affect the
person's eligibility to enroll under any other provision.�
(c) A
qualifying individual, as defined in the Internal Revenue Code of 1986, section
35(e)(2)(B), who is eligible under the Federal Trade Act of 2002 for the credit
Health Coverage Tax Credit (HCTC) for health insurance costs under the
Internal Revenue Code of 1986, section 35, may enroll in the comprehensive
health insurance plan with a waiver of the preexisting condition limitation
described in subdivision 3, and without presenting evidence of rejection or
similar requirements described in subdivision 1, paragraph (c).� The six-month durational residency
requirement provided in section 62E.02, subdivision 13, does not apply with
respect to eligibility for enrollment under this paragraph, but the applicant
must be a Minnesota resident as of the date of application.� A person's eligibility to enroll under this
paragraph does not affect the person's eligibility to enroll under any other
provision.� This paragraph is intended
solely to meet the minimum requirements necessary to qualify the comprehensive
health insurance plan as qualified health coverage under the Internal Revenue
Code of 1986, section 35(e)(2).�
Sec. 23.� Minnesota Statutes 2008, section 62L.05,
subdivision 4, is amended to read:
Subd. 4.� Benefits.� The medical services and supplies listed
in this subdivision are the benefits that must be covered by the small employer
plans described in subdivisions 2 and 3.�
Benefits under this subdivision may be provided through the managed care
procedures practiced by health carriers:
(1)
inpatient and outpatient hospital services, excluding services provided for the
diagnosis, care, or treatment of chemical dependency or a mental illness or
condition, other than those conditions specified in clauses (10), and
(11), and (12).� The health care
services required to be covered under this clause must also be covered if
rendered in a nonhospital environment, on the same basis as coverage provided
for those same treatments or services if rendered in a hospital, provided,
however, that this sentence must not be interpreted as expanding the types or
extent of services covered;
(2)
physician, chiropractor, and nurse practitioner services for the diagnosis or
treatment of illnesses, injuries, or conditions;
(3)
diagnostic x-rays and laboratory tests;
(4) ground
transportation provided by a licensed ambulance service to the nearest facility
qualified to treat the condition, or as otherwise required by the health
carrier;
(5)
services of a home health agency if the services qualify as reimbursable
services under Medicare;
(6)
services of a private duty registered nurse if medically necessary, as
determined by the health carrier;
(7) the rental
or purchase, as appropriate, of durable medical equipment, other than
eyeglasses and hearing aids, unless coverage is required under section 62Q.675;
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of Page 13133
(8) child
health supervision services up to age 18, as defined in section 62A.047;
(9)
maternity and prenatal care services, as defined in sections 62A.041 and
62A.047;
(10)
inpatient hospital and outpatient services for the diagnosis and treatment of
certain mental illnesses or conditions, as defined by the International
Classification of Diseases-Clinical Modification (ICD-9-CM), seventh edition
(1990) and as classified as ICD-9 codes 295 to 299; and
(11) ten
hours per year of outpatient mental health diagnosis or treatment for illnesses
or conditions not described in clause (10);
(12) 60
hours per year of outpatient treatment of chemical dependency; and
(13) (11)
50 percent of eligible charges for prescription drugs, up to a separate annual
maximum out-of-pocket expense of $1,000 per individual for prescription drugs,
and 100 percent of eligible charges thereafter.
Sec. 24.� [62L.0561]
FLEXIBLE BENEFITS PLANS.�
Subdivision
1.� Definitions.� For
the purposes of this section, the terms used in this section have the meanings
defined in section 62Q.01, except that "health plan" includes
individual coverage and group coverage for employer plans with up to 100
employees.
Subd. 2.� Flexible
benefits plan.� Notwithstanding
any provision of this chapter, chapter 363A, or any other law to the contrary,
a health plan company may offer, sell, issue, and renew a health plan that is a
flexible benefits plan under this section if the following requirements are
satisfied:
(1) the
health plan must be offered in compliance with the laws of this state, except
as otherwise permitted in this section;
(2) the
health plan must be designed to enable covered persons to better manage costs and
coverage options through the use of co-pays, deductibles, and other
cost-sharing arrangements;
(3) the
health plan may modify or exclude any or all coverages of benefits that would
otherwise be required by law, except for maternity benefits and other benefits
required under federal law;
(4) each
health plan and plan's premiums must be approved by the commissioner of health
or commerce, whichever is appropriate under section 62Q.01, subdivision 2, but neither
commissioner may disapprove a plan on the grounds of a modification or
exclusion permitted under clause (3); and
(5) prior to
the sale of the health plan, the purchaser must be given a written list of the
coverages otherwise required by law that are modified or excluded in the health
plan.� The list must include a
description of each coverage in the list and indicate whether the coverage is
modified or excluded.� If coverage is
modified, the list must describe the modification.� The list may, but is not required to, also
list any or all coverages otherwise required by law that are included in the
health plan and indicate that they are included.� The health plan company must require that a
copy of this written list be provided, prior to the effective date of the
health plan, to each enrollee or employee who is eligible for health coverage
under the plan.
Subd. 3.� Employer
health plan.� An employer may
provide a health plan permitted under this section to its employees, the
employees' dependents, and other persons eligible for coverage under the
employer's plan, notwithstanding chapter 363A or any other law to the contrary.
EFFECTIVE DATE.� This section
is effective January 1, 2012.
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Sec. 25.� Minnesota Statutes 2008, section 62S.24,
subdivision 8, is amended to read:
Subd. 8.� Exchange
for long-term care partnership policy; addition of policy rider.� (a) If authorized by federal law or a
federal waiver is granted With respect to the long-term care partnership
program referenced in section 256B.0571, issuers of long-term care policies may
voluntarily exchange a current long-term care insurance policy for a long-term
care partnership policy that meets the requirements of Public Law 109-171,
section 6021, after the effective date of the state plan amendment implementing
the partnership program in this state.� The
exchange may be in the form of:� (1) an
amendment or rider; or (2) a disclosure statement indicating that the coverage
is now partnership qualified.
(b) If authorized by
federal law or a federal waiver is granted With respect to the long-term
care partnership program referenced in section 256B.0571, allowing to
allow an existing long-term care insurance policy to qualify as a
partnership policy by addition of a policy rider or amendment or disclosure
statement, the issuer of the policy is authorized to add the rider or
amendment or disclosure statement to the policy after the effective date of
the state plan amendment implementing the partnership program in this state.
(c) The commissioner, in
cooperation with the commissioner of human services, shall pursue any federal
law changes or waivers necessary to allow the implementation of paragraphs (a)
and (b).
Sec. 26.� Minnesota Statutes 2008, section 62S.266,
subdivision 4, is amended to read:
Subd. 4.� Contingent
benefit upon lapse.� (a) After
rejection of the offer required under subdivision 2, for individual and group
policies without nonforfeiture benefits issued after July 1, 2001, the insurer
shall provide a contingent benefit upon lapse.
(b) If a group policyholder
elects to make the nonforfeiture benefit an option to the certificate holder, a
certificate shall provide either the nonforfeiture benefit or the contingent
benefit upon lapse.
(c) The contingent benefit
on lapse must be triggered every time an insurer increases the premium rates to
a level which results in a cumulative increase of the annual premium equal to
or exceeding the percentage of the insured's initial annual premium based on
the insured's issue age provided in this paragraph, and the policy or
certificate lapses within 120 days of the due date of the premium
increase.� Unless otherwise required,
policyholders shall be notified at least 30 days prior to the due date of the
premium reflecting the rate increase.
����������������������������������������������� Triggers for a
Substantial Premium Increase
������������������������������������������������������������������������������������������������������������������� Percent
Increase Over
�������������������������������������� Issue Age���������������������������������������������������������������� Initial
Premium
�������������������������������� 29 and Under������������������������������������������������������������������������ 200
���������������������������������������������� 30-34������������������������������������������������������������������������ 190
���������������������������������������������� 35-39������������������������������������������������������������������������ 170
���������������������������������������������� 40-44������������������������������������������������������������������������ 150
���������������������������������������������� 45-49������������������������������������������������������������������������ 130
���������������������������������������������� 50-54������������������������������������������������������������������������ 110
���������������������������������������������� 55-59�������������������������������������������������������������������������� 90
���������������������������������������������������� 60�������������������������������������������������������������������������� 70
���������������������������������������������������� 61�������������������������������������������������������������������������� 66
���������������������������������������������������� 62�������������������������������������������������������������������������� 62
���������������������������������������������������� 63�������������������������������������������������������������������������� 58
���������������������������������������������������� 64�������������������������������������������������������������������������� 54
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13135
���������������������������������������������������� 65�������������������������������������������������������������������������� 50
���������������������������������������������������� 66�������������������������������������������������������������������������� 48
���������������������������������������������������� 67�������������������������������������������������������������������������� 46
���������������������������������������������������� 68�������������������������������������������������������������������������� 44
���������������������������������������������������� 69�������������������������������������������������������������������������� 42
���������������������������������������������������� 70�������������������������������������������������������������������������� 40
���������������������������������������������������� 71�������������������������������������������������������������������������� 38
���������������������������������������������������� 72�������������������������������������������������������������������������� 36
���������������������������������������������������� 73�������������������������������������������������������������������������� 34
���������������������������������������������������� 74�������������������������������������������������������������������������� 32
���������������������������������������������������� 75�������������������������������������������������������������������������� 30
���������������������������������������������������� 76�������������������������������������������������������������������������� 28
���������������������������������������������������� 77�������������������������������������������������������������������������� 26
���������������������������������������������������� 78�������������������������������������������������������������������������� 24
���������������������������������������������������� 79�������������������������������������������������������������������������� 22
���������������������������������������������������� 80�������������������������������������������������������������������������� 20
���������������������������������������������������� 81�������������������������������������������������������������������������� 19
���������������������������������������������������� 82�������������������������������������������������������������������������� 18
���������������������������������������������������� 83�������������������������������������������������������������������������� 17
���������������������������������������������������� 84�������������������������������������������������������������������������� 16
���������������������������������������������������� 85�������������������������������������������������������������������������� 15
���������������������������������������������������� 86�������������������������������������������������������������������������� 14
���������������������������������������������������� 87�������������������������������������������������������������������������� 13
���������������������������������������������������� 88�������������������������������������������������������������������������� 12
���������������������������������������������������� 89�������������������������������������������������������������������������� 11
����������������������������������� 90
and over�������������������������������������������������������������������������� 10
(d) A contingent benefit on lapse
must also be triggered for policies with a fixed or limited premium paying period
every time an insurer increases the premium rates to a level that results in a
cumulative increase of the annual premium equal to or exceeding the percentage
of the insured's initial annual premium set forth below based on the insured's
issue age, the policy or certificate lapses within 120 days of the due date of
the premium so increased, and the ratio in paragraph (e) (f),
clause (2), is 40 percent or more.�
Unless otherwise required, policyholders shall be notified at least 30
days prior to the due date of the premium reflecting the rate increase.
����������������������������������������������� Triggers
for a Substantial Premium Increase
������������������������������������������������������������������������������������������������������������������������ Percent
Increase
���������������������������������������� Issue
Age���������������������������������������������������������
Over Initial Premium
���������������������������������������� Under
65����������������������������������������������������������������������� 50%
���������������������������������������������� 65-80����������������������������������������������������������������������� 30%
������������������������������������������ Over
80����������������������������������������������������������������������� 10%
This provision shall be in addition to the contingent benefit
provided by paragraph (c) and where both are triggered, the benefit provided
must be at the option of the insured.
(e) On or before the effective
date of a substantial premium increase as defined in paragraph (c), the insurer
shall:
(1) offer to reduce policy benefits provided by the
current coverage without the requirement of additional underwriting so that
required premium payments are not increased;
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Day - Saturday, May 15, 2010 - Top of Page 13136
(2) offer to convert the
coverage to a paid-up status with a shortened benefit period according to the
terms of subdivision 5.� This option may
be elected at any time during the 120-day period referenced in paragraph (c);
and
(3) notify the policyholder
or certificate holder that a default or lapse at any time during the 120-day
period referenced in paragraph (c) is deemed to be the election of the offer to
convert in clause (2).
(f) On
or before the effective date of a substantial premium increase as defined in
paragraph (d), the insurer shall:
(1) offer to reduce policy
benefits provided by the current coverage without the requirement of additional
underwriting so that required premium payments are not increased;
(2) offer to convert the
coverage to a paid-up status where the amount payable for each benefit is 90
percent of the amount payable in effect immediately prior to lapse times the
ratio of the number of completed months of paid premiums divided by the number
of months in the premium paying period.�
This option may be elected at any time during the 120-day period
referenced in paragraph (d); and
(3) notify the policyholder
or certificate holder that a default or lapse at any time during the 120-day
period referenced in paragraph (d) shall be deemed to be the election of the
offer to convert in clause (2) if the ratio is 40 percent or more.
Sec. 27.� Minnesota Statutes 2008, section 62S.29,
subdivision 1, is amended to read:
Subdivision 1.� Requirements.� An insurer or other entity marketing
long-term care insurance coverage in this state, directly or through its
producers, shall:
(1) establish marketing
procedures and agent training requirements to assure that any marketing
activities, including any comparison of policies by its agents or other
producers, are fair and accurate;
(2) establish marketing
procedures to assure excessive insurance is not sold or issued;
(3) display prominently by
type, stamp, or other appropriate means, on the first page of the outline of
coverage and policy, the following:
"Notice to buyer:� This policy may not cover all of the costs
associated with long-term care incurred by the buyer during the period of
coverage.� The buyer is advised to review
carefully all policy limitations.";
(4) provide copies of the
disclosure forms required in section 62S.081, subdivision 4, to the applicant;
(5) inquire and otherwise
make every reasonable effort to identify whether a prospective applicant or
enrollee for long-term care insurance already has long-term care insurance and
the types and amounts of the insurance;
(6) establish auditable
procedures for verifying compliance with this subdivision;
(7) if applicable, provide
written notice to the prospective policyholder and certificate holder, at
solicitation, that a senior insurance counseling program approved by the
commissioner, the Senior LinkAge Line, is available and the name,
address, and telephone number of the program;
(8) use the terms "noncancelable"
or "level premium" only when the policy or certificate conforms to
section 62S.14; and
(9) provide an explanation
of contingent benefit upon lapse provided for in section 62S.266.
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Sec. 28.�
Minnesota Statutes 2009 Supplement, section 65A.29, subdivision 13, is
amended to read:
Subd. 13.� Notice of possible cancellation.� (a) A written notice must be provided to
all applicants for homeowners' insurance, at the time the application is
submitted, containing the following language in bold print:� "THE INSURER MAY ELECT TO CANCEL
COVERAGE AT ANY TIME DURING THE FIRST 60 59 DAYS FOLLOWING
ISSUANCE OF THE COVERAGE FOR ANY REASON WHICH IS NOT SPECIFICALLY PROHIBITED BY
STATUTE."
(b) If the insurer provides the notice on the insurer's
Web site, the insurer or agent may advise the applicant orally or in writing of
its availability for review on the insurer's Web site in lieu of providing a
written notice, if the insurer advises the applicant of the availability of a
written notice upon the applicant's request.�
The insurer shall provide the notice in writing if requested by the
applicant.� An oral notice shall be
presumed delivered if the agent or insurer makes a contemporaneous notation in
the applicant's record of the notice having been delivered or if the insurer or
agent retains an audio recording of the notification provided to the applicant.
Sec. 29.�
Minnesota Statutes 2008, section 72A.08, subdivision 4, is amended to
read:
Subd. 4.� Exceptions.�
(a) The provisions of this section shall not apply to any
policy procured by officers, agents, subagents, employees, intermediaries, or representatives
wholly and solely upon property of which they are, respectively, the owner at
the time of procuring the policy, where the officers, agents, subagents,
employees, intermediaries, or representatives are, and have been for more than
six months prior to the issuing of the policy, regularly employed by, or
connected with, the company or association issuing the policy; and any life
insurance company doing business in this state may issue industrial policies of
life or endowment insurance, with or without annuities, with special rates of
premiums less than the usual rates of premiums for these policies, to members
of labor organizations, credit unions, lodges, beneficial societies, or similar
organizations, or employees of one employer, who, through their secretary or
employer, may take out insurance in an aggregate of not less than 50 members
and pay their premiums through the secretary or employer.
(b) A promotional advertising item of $25 or less or a
gift of $25 or less per year is not a rebate if the receipt of the item or gift
is not conditioned upon purchase of an insurance policy or product.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 30.�
Minnesota Statutes 2008, section 72A.12, subdivision 4, is amended to
read:
Subd. 4.� Discrimination; rebates.� (a) No life insurance company
doing business in this state shall make or permit any distinction or
discrimination in favor of individuals between insurants of the same class and
equal expectation of life in the amount or payment of premiums or rates charged
for policies of life or endowment insurance, or in the dividends or other
benefits payable thereon, or in any other of the terms and conditions of the
contracts it makes; nor shall any such company or agent thereof make any
contract of insurance or agreement as to such contract other than as plainly
expressed in the policy issued thereon; nor shall any such company or any
officer, agent, solicitor, or representative thereof pay, allow or give, or
offer to pay, allow or give, directly or indirectly, as inducement to
insurance, any rebate of premium payable on the policy, or any special favor or
advantage in the dividends or other benefits to accrue thereon or any paid
employment or contract for services of any kind, or any valuable consideration
or inducement whatever not specified in the policy contract of insurance.
Any violation of the provisions of this subdivision
shall be a misdemeanor and punishable as such.
(b) A promotional advertising item of $25 or less or a
gift of $25 or less per year is not a rebate if the receipt of the item or gift
is not conditioned upon purchase of an insurance policy or product.
EFFECTIVE
DATE.� This section is effective the day following
final enactment.
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Sec. 31.� Minnesota Statutes 2008, section 72A.20,
subdivision 10, is amended to read:
Subd. 10.� Rebates.� (a) Except as otherwise expressly
provided by law, knowingly permitting or offering to make or making any
contract of life insurance, annuity, or accident and health insurance, or
agreement as to such contract, other than as plainly expressed in the contract
issued thereon, or paying or allowing or giving, or offering to pay, allow, or
give, directly or indirectly, as inducement to such insurance or annuity, any
rebate of premiums payable on the contract, or any special favor or advantage
in the dividends or other benefits thereon, or any valuable consideration or
inducement whatever not specified in the contract; or giving or selling or
purchasing, or offering to give, sell, or purchase, as inducement to such
insurance or annuity, or in connection therewith, any stocks, bonds, or other
securities of any insurance company or other corporation, association, or
partnership, or any dividends or profits accrued thereon, or anything of value
whatsoever not specified in the contract, shall constitute an unfair method of
competition and an unfair and deceptive act or practice.
(b) A promotional
advertising item of $25 or less or a gift of $25 or less per year is not a
rebate if the receipt of the item or gift is not conditioned upon purchase of
an insurance policy or product.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 32.� Minnesota Statutes 2008, section 72A.20,
subdivision 36, is amended to read:
Subd. 36.� Limitations
on the use of credit information.� (a)
No insurer or group of affiliated insurers may reject, cancel, or nonrenew a
policy of private passenger motor vehicle insurance as defined under section
65B.01 or a policy of homeowner's insurance as defined under section 65A.27,
for any person in whole or in part on the basis of credit information,
including a credit reporting product known as a "credit score" or
"insurance score," without consideration and inclusion of any other
applicable underwriting factor.
(b) If credit information, credit
scoring, or insurance scoring is to be used in underwriting, the insurer must
disclose to the consumer that credit information will be obtained and used as
part of the insurance underwriting process.
(c) Insurance inquiries and
non-consumer-initiated inquiries must not be used as part of the credit scoring
or insurance scoring process.
(d) If a credit score,
insurance score, or other credit information relating to a consumer, with
respect to the types of insurance referred to in paragraph (a), is adversely
impacted or cannot be generated because of the absence of a credit history, the
insurer must exclude the use of credit as a factor in the decision to reject,
cancel, or nonrenew.
(e) Insurers must upon the
request of a policyholder reevaluate the policyholder's score.� Any change in premium resulting from the
reevaluation must be effective upon the renewal of the policy.� An insurer is not required to reevaluate a
policyholder's score pursuant to this paragraph more than twice in any given
calendar year.
(f) Insurers must upon
request of the applicant or policyholder provide reasonable underwriting
exceptions based upon prior credit histories for persons whose credit
information is unduly influenced by expenses related to a catastrophic injury
or illness, temporary loss of employment, or the death of an immediate family
member.� The insurer may require
reasonable documentation of these events prior to granting an exception.
(g) A credit scoring or
insurance scoring methodology must not be used by an insurer if the credit
scoring or insurance scoring methodology incorporates the gender, race,
nationality, or religion of an insured or applicant.
(h) Insurers that employ a
credit scoring or insurance scoring system in underwriting of coverage
described in paragraph (a) must have on file with the commissioner:
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(1) the insurer's credit scoring or insurance scoring
methodology; and
(2) information that supports the insurer's use of a
credit score or insurance score as an underwriting criterion.
(i) Insurers described in paragraph (g) (h)
shall file the required information with the commissioner within 120 days of
August 1, 2002, or prior to implementation of a credit scoring or insurance
scoring system by the insurer, if that date is later.
(j) Information provided by, or on behalf of, an
insurer to the commissioner under this subdivision is trade secret information
under section 13.37.
Sec. 33.�
Minnesota Statutes 2008, section 72A.20, subdivision 37, is amended to
read:
Subd. 37.� Electronic transmission of required
information.� (a) A health carrier,
as defined in section 62A.011, subdivision 2, is not in violation of this
chapter for electronically transmitting or electronically making available
information otherwise required to be delivered in writing under chapters 62A to
62Q and 72A to an enrollee as defined in section 62Q.01, subdivision 2a, or
to a health plan as defined in paragraph (b), and with the requirements of
those chapters if the following conditions are met:�
(1) the health carrier informs the group
policyholder or the enrollee or both that electronic transmission or
access is available and, at the discretion of the health carrier, the enrollee
is given one of the following options:
(i) electronic transmission or access will occur only
if the group policyholder or the enrollee or both affirmatively
requests to the health carrier that the required information be electronically
transmitted or available and a record of that request is retained by the health
carrier; or
(ii) electronic transmission or access will
automatically occur if the group policyholder or the enrollee or both
has not opted out of that manner of transmission by request to the health
carrier and requested that the information be provided in writing.� If the group policyholder or the
enrollee or both opts out of electronic transmission, a record of that
request must be retained by the health carrier;
(2) the group policyholder or the enrollee or
both is allowed to withdraw the request at any time;
(3) if the information transmitted electronically
contains individually identifiable data, it must be transmitted to a secured
mailbox.� If the information made
available electronically contains individually identifiable data, it must be
made available at a password-protected secured Web site;
(4) the group policyholder or the enrollee or
both is provided a customer service number on the enrollee's member card
that may be called to request a written copy of the document; and
(5) the electronic transmission or electronic
availability meets all other requirements of this chapter including, but not
limited to, size of the typeface and any required time frames for distribution.
(b) For the purpose of this section, "health
plan" means a health plan as defined in section 62A.011 or a policy of
accident and sickness insurance as defined in section 62A.01.
Sec. 34.�
Minnesota Statutes 2008, section 72A.492, subdivision 2, is amended to
read:
Subd. 2.� Covered persons.� The rights granted by sections 72A.49 to
72A.505 extend to:
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(1) a person who is a
resident of this state and is the subject of information collected,
received, or maintained in connection with an insurance transaction; and
(2) a person who is a resident of this
state and engages in or seeks to engage in an insurance transaction.
Sec. 35.� Minnesota Statutes 2008, section 72A.51,
subdivision 2, is amended to read:
Subd. 2.� Return
of policy or contract; notice.� Any
individual person may cancel an individual policy of insurance against loss or
damage by reason of the sickness of the assured or the assured's dependents, a
nonprofit health service plan contract providing benefits for hospital,
surgical and medical care, a health maintenance organization subscriber
contract, or a policy of insurance authorized by section 60A.06, subdivision 1,
clause (4), except Medicare-related coverage as defined in section 62A.3099,
subdivision 17, and long-term care insurance as defined in section 62S.01,
subdivision 18, by returning the policy or contract and by giving written
notice of cancellation any time before midnight of the tenth day following the
date of purchase.� Notice of cancellation
may be given personally or by mail.� The
policy or contract may be returned personally or by mail.� If by mail, the notice or return of the
policy or contract is effective upon being postmarked, properly addressed and
postage prepaid.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 36.� Minnesota Statutes 2008, section 72B.01, is
amended to read:
72B.01 PURPOSE AND SCOPE.�
It is the purpose of
sections 72B.01 to 72B.14 to provide high quality service to insureds and
insurance claimants in the state of Minnesota by providing for well trained
adjusters and persons engaged in soliciting business for adjusters, who are
qualified to deal with the public in the interest of a fair resolution of
insurance claims.� Sections 72B.01 to
72B.14 shall apply to all adjusters, and adjusters' solicitors, except as
specifically stated to the contrary; but nothing in sections 72B.01 to 72B.14
shall apply to:
(a) An attorney at law who
is licensed or otherwise allowed to practice law in this state and who does not
hold out to be an adjuster, or adjuster's solicitor.
(b) A licensed agent of an
authorized insurer who adjusts losses for such insurer solely under policies
issued by the agent or the agent's agency or on which the agent is the agent of
record, provided the agent receives no extra compensation for such services.
(c) Personnel of township
mutual companies.
(d)
Adjusters for crop hail and farm windstorm damage claims who are on the staff
of companies covering such risks.
(e) Persons who process life
insurance annuity contract or accident and health insurance claims.
(f) Persons processing or
adjusting wet marine or inland transportation claims or losses.
Sec. 37.� Minnesota Statutes 2009 Supplement, section
72B.03, subdivision 2, is amended to read:
Subd. 2. �Classes
of licenses.� (a) Unless denied
licensure pursuant to section 72B.08, persons who have met the requirements of
section 72B.04 72B.041 must be issued an adjuster license.� There shall be four classes of licenses, as
follows:
(1) independent adjuster's
license;
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(2) public adjuster's license;
(3) public adjuster solicitor's license; and
(4) crop hail adjuster's license.
(b) An independent adjuster and a public adjuster may
qualify for a license in one or more of the following lines of authority:
(1) property and casualty; or
(2) workers' compensation; or
(3) crop.
(c) Any person holding a license pursuant to this
section is not required to hold any other independent adjuster, public
adjuster, insurance, or self-insurance administrator license in this state
pursuant to section 60A.23, subdivision 8, or any other provision, provided
that the person does not act as an adjuster with respect to life, health, or
annuity insurance, other than disability insurance.
(d) An adjuster license remains in effect unless
probated, suspended, revoked, or refused as long as the fee set forth in
section 72B.04, subdivision 10 72B.041, subdivision 9, is paid
and all other requirements for license renewal are met by the due date,
otherwise, the license expires.
(e) An adjuster whose license expires may, within 12
months of the renewal date, be reissued an adjuster license upon receipt of the
renewal request, as prescribed by the commissioner; however, a penalty in the
amount of double the unpaid renewal fee is required to reissue the expired
license.
(f) An adjuster who is unable to comply with license
renewal procedures and requirements due to military service, long-term medical
disability, or some other extenuating circumstance may request a waiver of same
and a waiver of any examination requirement, fine, or other sanction imposed
for failure to comply with renewal procedures.
(g) An adjuster is subject to sections 72A.17 to
72A.32.
(h) The adjuster must inform the commissioner by any
means acceptable of any change in resident or business addresses for the home
state or in legal name within 30 days of the change.
(i) The license must contain the licensee's name,
address, and personal identification number; the dates of issuance and
expiration; and any other information the commissioner deems necessary.
(j) In order to assist in the performance of the
commissioner's duties, the commissioner may contract with nongovernmental
entities, including the National Association of Insurance Commissioners, its
affiliates, or its subsidiaries, to perform any ministerial functions related
to licensing that the commissioner may deem appropriate, including the
collection of fees and data.
Sec. 38.�
Minnesota Statutes 2009 Supplement, section 72B.045, subdivision 1, is
amended to read:
Subdivision 1.� Requirement.� An individual who holds an independent
or public adjuster license and who is not exempt under this section must
satisfactorily complete a minimum of 24 hours of continuing education courses,
of which three hours must be in ethics, reported to the commissioner on a
biennial basis in conjunction with the individual's license renewal cycle.
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Sec. 39.�
Minnesota Statutes 2009 Supplement, section 72B.06, is amended to read:
72B.06
CATASTROPHE OR EMERGENCY SITUATIONS.�
(a) In the event of a declared catastrophe or the occurrence
of an emergency situation, For purposes of this chapter, a catastrophe
exists when, due to a specific, infrequent, and sudden natural or man-made
disaster or phenomenon, there have arisen losses to property in Minnesota that
are covered by insurance, and the losses are so numerous and severe that
resolution of claims related to such covered property losses will not occur
expeditiously without the licensing of emergency independent adjusters due to
the magnitude of the catastrophic damage.�
A failure of claims to be resolved expeditiously shall exist upon an
insurer's filing with the department a written statement that one of the
following conditions exists:� (1) the
insurer expects to incur at least 500 claims as a result of the event; or (2)
the magnitude of the event is expected to generate twice the mean number of
claims for one month for the affected area.�
Such written statement may be sent electronically to the commissioner.� An insurer must notify the commissioner via an
application for registration of each individual independent
adjuster not already licensed in the state where the catastrophe has
been declared or an emergency situation has occurred Minnesota, that
will act as an emergency independent adjuster on behalf of the insurer pursuant
to paragraph (b).
(b) A person who is otherwise qualified to adjust
claims, but not already licensed in the state where the catastrophe has been
declared or an emergency situation has occurred Minnesota, may act
as an emergency independent adjuster and adjust claims, if, within five days of
deployment to adjust claims arising from the declared catastrophe or
the occurrence of an emergency situation, the insurer or the independent
adjuster's employer, in the notification required by paragraph (a), notifies
the commissioner by providing the following information in a format prescribed
by the commissioner:
(1) the name of the individual;
(2) the Social Security number of the individual;
(3) the name of the insurer the independent adjuster
will represent;
(4) the effective date of the contract between the
insurer and independent adjuster or the independent adjuster's employer;
(5) the catastrophe, emergency situation, or
loss control number;
(6) the catastrophe or emergency situation event
name; and
(7) other information the commissioner deems
necessary.
(c) An emergency independent adjuster's license or
registration remains in force for the period of time established by the
commissioner 180 days; such license or registration shall be effective
for all catastrophes described in paragraph (a), clauses (1) and (2).� Such license or registration may be extended
for 180 days.
The commissioner may summarily suspend or revoke the
right of any person adjusting in this state under the authority of this section
to continue to adjust in this state, if the commissioner finds that that person
has engaged in any of the practices forbidden to a licensed adjuster under
sections 72B.01 to 72B.14.� Notice of
such suspension or revocation may be given personally or by mail sent to the
temporary address stated in the registration and to the insurer or
independent adjusting firm company who submitted the independent adjuster
information.
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Sec. 40.�
Minnesota Statutes 2008, section 72B.08, subdivision 8, is amended to
read:
Subd. 8.� Bond.�
In the case of any licensee or permit holder who has had a license or
permit suspended or revoked or whose license renewal has been prohibited by a
lawful order of the commissioner, the commissioner may condition the issuance
of a new license on the filing of a surety bond in an amount not to exceed
$10,000, made and conditioned in accordance with the requirements of section 72B.04,
subdivision 4 72B.041, subdivision 3, relating to public adjusters'
bonds.� Nothing in this subdivision shall
reduce or alter the bonding requirements for a public adjuster.
Sec. 41.� Minnesota
Statutes 2008, section 79A.03, subdivision 8, is amended to read:
Subd. 8.� Processing application.� The commissioner shall grant or deny the
group's application to self-insure within 60 days after a complete application
has been filed, provided that the time may be extended for an additional 30
days upon 15 days' prior notice to the applicant.� The commissioner shall grant approval for
self-insurance upon a determination that the financial ability of the self-insurer's
group is sufficient to fulfill all joint and several obligations of the member
companies that may arise under chapter 176 or this chapter; the gross annual
premium of the group members is at least $300,000 150 percent of the
WCRA minimum retention in effect at the time of the application; the group
has established a fund pursuant to Minnesota Rules, parts 2780.4100 to
2780.5000; the group has contracted with a licensed workers' compensation
service company to administer its program; and the required securities or
surety bond shall be on deposit prior to the effective date of coverage for any
member.� Approval shall be effective
until revoked by order of the commissioner or until the employer members of the
group become insured.
EFFECTIVE
DATE.� This section is effective August 1,
2010, and applies to applications processed on or after that date, but not to
self-insured groups existing as of that date.
Sec. 42.�
Minnesota Statutes 2008, section 79A.06, subdivision 5, is amended to
read:
Subd. 5.� Private employers who have ceased to be
self-insured.� (a) Private employers
who have ceased to be private self-insurers shall discharge their continuing
obligations to secure the payment of compensation which is accrued during the
period of self-insurance, for purposes of Laws 1988, chapter 674, sections 1 to
21, by compliance with all of the following obligations of current certificate
holders:
(1) Filing reports with the commissioner to carry out
the requirements of this chapter;
(2) Depositing and maintaining a security deposit for
accrued liability for the payment of any compensation which may become due,
pursuant to chapter 176.� However, if a
private employer who has ceased to be a private self-insurer purchases an
insurance policy from an insurer authorized to transact workers' compensation
insurance in this state which provides coverage of all claims for compensation
arising out of injuries occurring during the entire period the employer was
self-insured, whether or not reported during that period, the policy will:
(i) discharge the obligation of the employer to
maintain a security deposit for the payment of the claims covered under the
policy;
(ii) discharge any obligation which the self-insurers'
security fund has or may have for payment of all claims for compensation
arising out of injuries occurring during the period the employer was
self-insured, whether or not reported during that period; and
(iii) discharge the obligations of the employer to pay
any future assessments to the self-insurers' security fund; provided,
however, that a member that terminates its self-insurance authority on or after
August 1, 2010, shall be liable for an assessment under paragraph (b).� The actuarial opinion shall not take into
consideration any transfer of the member's liabilities to an insurance policy
if the member obtains a replacement policy as described in this subdivision
within one year of the date of terminating its self-insurance.
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A private employer who has ceased to be a private
self-insurer may instead buy an insurance policy described above, except that
it covers only a portion of the period of time during which the private
employer was self-insured; purchase of such a policy discharges any obligation
that the self-insurers' security fund has or may have for payment of all claims
for compensation arising out of injuries occurring during the period for which
the policy provides coverage, whether or not reported during that period.
A policy described in this clause may not be issued by
an insurer unless it has previously been approved as to form and substance by
the commissioner; and
(3) Paying within 30 days all assessments of which
notice is sent by the security fund, for a period of seven years from the last
day its certificate of self-insurance was in effect.� Thereafter, the private employer who has
ceased to be a private self-insurer may either:�
(i) continue to pay within 30 days all assessments of which notice is
sent by the security fund until it has no incurred liabilities for the payment
of compensation arising out of injuries during the period of self-insurance; or
(ii) pay the security fund a cash payment equal to four percent of the net
present value of all remaining incurred liabilities for the payment of
compensation under sections 176.101 and 176.111 as certified by a member of the
casualty actuarial society.� Assessments
shall be based on the benefits paid by the employer during the calendar year
immediately preceding the calendar year in which the employer's right to
self-insure is terminated or withdrawn.
(b) With respect to a self-insurer who terminates its
self-insurance authority after April 1, 1998, that member shall obtain and file
with the commissioner an actuarial opinion of its outstanding liabilities as
determined by an associate or fellow of the Casualty Actuarial Society within
120 days of the date of its termination.�
If the actuarial opinion is not timely filed, the self-insurers'
security fund may, at its discretion, engage the services of an actuary for
this purpose.� The expense of this
actuarial opinion must be assessed against and be the obligation of the
self-insurer.� The commissioner may issue
a certificate of default against the self-insurer for failure to pay this
assessment to the self-insurers' security fund as provided by section 79A.04,
subdivision 9.� The opinion must
separate liability for indemnity benefits from liability from medical benefits,
and must may discount each liabilities up to four
percent per annum to net present value.�
Within 30 60 days after notification of approval of the
actuarial opinion by the commissioner, the exiting member shall pay to
the security fund an amount equal to 120 percent of that discounted
outstanding indemnity liability, multiplied by the greater of the average
annualized assessment rate since inception of the security fund or the annual
rate at the time of the most recent assessment before termination determined
as follows:� a percentage will be
determined by dividing the security fund's members' deficit as determined by
the most recent audited financial statement of the security fund by the total
actuarial liability of all members of the security fund as calculated by the
commissioner within 30 days of the exit date of the member.� This quotient will then be multiplied by that
exiting member's total future liability as contained in the exiting member's
actuarial opinion.� If the payment is
not made within 30 days of the notification, interest on it at the rate
prescribed by section 549.09 must be paid by the former member to the security
fund until the principal amount is paid in full.
(c) A former member who terminated its self-insurance
authority before April 1, 1998, who has paid assessments to the self-insurers'
security fund for seven years, and whose annualized assessment is $15,000 or
less, may buy out of its outstanding liabilities to the self-insurers' security
fund by an amount calculated as follows:�
1.35 multiplied by the indemnity case reserves at the time of the
calculation, multiplied by the then current self-insurers' security fund
annualized assessment rate.
(d) A former member who terminated its self-insurance
authority before April 1, 1998, and who is paying assessments within the first
seven years after ceasing to be self-insured under paragraph (a), clause (3),
may elect to buy out its outstanding liabilities to the self-insurers' security
fund by obtaining and filing with the commissioner an actuarial opinion of its
outstanding liabilities as determined by an associate or fellow of the Casualty
Actuarial Society.� The opinion must
separate liability for indemnity benefits from liability for medical benefits,
and must discount each up to four percent per annum to net present value.� Within 30 days after notification of approval
of the actuarial opinion by the commissioner, the member shall pay to the
security fund an amount equal to 120 percent of that discounted outstanding
indemnity liability, multiplied by the greater of the average annualized
assessment rate since inception of the security fund or the annual rate at the
time of the most recent assessment.
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(e) A former member who has paid the security fund
according to paragraphs (b) to (d) and subsequently receives authority from the
commissioner to again self-insure shall be assessed under section 79A.12,
subdivision 2, only on indemnity benefits paid on injuries that occurred after
the former member received authority to self-insure again; provided that the
member furnishes verified data regarding those benefits to the security fund.
(f) In addition to proceedings to establish
liabilities and penalties otherwise provided, a failure to comply may be the
subject of a proceeding before the commissioner.� An appeal from the commissioner's
determination may be taken pursuant to the contested case procedures of chapter
14 within 30 days of the commissioner's written determination.
Any current or past member of the self-insurers'
security fund is subject to service of process on any claim arising out of
chapter 176 or this chapter in the manner provided by section 5.25, or as
otherwise provided by law.� The issuance
of a certificate to self-insure to the private self-insured employer shall be
deemed to be the agreement that any process which is served in accordance with
this section shall be of the same legal force and effect as if served
personally within this state.
EFFECTIVE
DATE.� This section is effective August 1,
2010, and applies to terminations of self-insurance authority that become
effective on or after that date.
Sec. 43.�
Minnesota Statutes 2008, section 79A.21, subdivision 3, is amended to
read:
Subd. 3.� Approval.�
The commissioner shall approve an application for self-insurance
upon a determination that all of the following conditions are met:
(1) a completed application and all required documents
have been submitted to the commissioner;
(2) the financial ability of the commercial
self-insurance group is sufficient to fulfill all obligations that may arise
under this chapter or chapter 176;
(3) the annual premium of the commercial
self-insurance group to be charged to initial members is at least $400,000
150 percent of the WCRA minimum retention in effect at the time of the
application;
(4) the commercial self-insurance group has contracted
with a service company to administer its program; and
(5) the required securities or surety bond shall be on
deposit prior to the effective date of coverage for the commercial
self-insurance group.
EFFECTIVE
DATE.� This section is effective August 1,
2010, and applies to applications processed on or after that date, but not to
self-insured groups existing as of that date.
Sec. 44.�
Minnesota Statutes 2008, section 80A.41, is amended to read:
80A.41
SECTION 102; DEFINITIONS.�
In this chapter, unless the context otherwise
requires:�
(1) "Accredited investor" means an
accredited investor as the term is defined in Rule 501(a) of Regulation D
adopted pursuant to the Securities Act of 1933.�
(2) "Administrator" means the commissioner
of commerce.�
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(3) "Agent" means an individual, other than
a broker-dealer, who represents a broker-dealer in effecting or attempting to effect
purchases or sales of securities or represents an issuer in effecting or
attempting to effect purchases or sales of the issuer's securities.� But a partner, officer, or director of a
broker-dealer or issuer, or an individual having a similar status or performing
similar functions is an agent only if the individual otherwise comes within the
term.� The term does not include an
individual excluded by rule adopted or order issued under this chapter.�
(4) "Bank" means:�
(A) a banking institution organized under the laws of
the United States;
(B) a member bank of the Federal Reserve System;
(C) any other banking institution, whether
incorporated or not, doing business under the laws of a state or of the United
States, a substantial portion of the business of which consists of receiving
deposits or exercising fiduciary powers similar to those permitted to be
exercised by national banks under the authority of the Comptroller of the
Currency pursuant to Section 1 of Public Law 87-722 (12 U.S.C. Section 92a),
and which is supervised and examined by a state or federal agency having
supervision over banks, and which is not operated for the purpose of evading
this chapter; and
(D) a receiver, conservator, or other liquidating
agent of any institution or firm included in subparagraph (A), (B), or
(C).�
(5) "Broker-dealer" means a person engaged
in the business of effecting transactions in securities for the account of
others or for the person's own account.�
The term does not include:�
(A) an agent;
(B) an issuer;
(C) a depository institution; provided such activities
are conducted in accordance with such rules as may be adopted by the
administrator;
(D) an international banking institution; or
(E) a person excluded by rule adopted or order issued
under this chapter.�
(6) "Depository institution" means:�
(A) a bank; or
(B) a savings institution, trust company, credit
union, or similar institution that is organized or chartered under the laws of a
state or of the United States, authorized to receive deposits, and supervised
and examined by an official or agency of a state or the United States if its
deposits or share accounts are insured to the maximum amount authorized by
statute by the Federal Deposit Insurance Corporation, the National Credit Union
Share Insurance Fund, or a successor authorized by federal law.� The term does not include:�
(i) an insurance company or other organization
primarily engaged in the business of insurance;
(ii) a Morris Plan bank; or
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(iii) an industrial loan company that is not an
"insured depository institution" as defined in section 3(c)(2) of the
Federal Deposit Insurance Act, United States Code, title 12, section
1813(c)(2), or any successor federal statute.�
(7) "Federal covered investment adviser"
means a person registered under the Investment Advisers Act of 1940.�
(8) "Federal covered security" means a
security that is, or upon completion of a transaction will be, a covered
security under Section 18(b) of the Securities Act of 1933 (15 U.S.C. Section
77r(b)) or rules or regulations adopted pursuant to that provision.�
(9) "Filing" means the receipt under this
chapter of a record by the administrator or a designee of the
administrator.�
(10) "Fraud," "deceit," and
"defraud" are not limited to common law deceit.�
(11) "Guaranteed" means guaranteed as to
payment of all principal and all interest.�
(12) "Institutional investor" means any of
the following, whether acting for itself or for others in a fiduciary
capacity:�
(A) a depository institution or international banking
institution;
(B) an insurance company;
(C) a separate account of an insurance company;
(D) an investment company as defined in the Investment
Company Act of 1940;
(E) a broker-dealer registered under the Securities
Exchange Act of 1934;
(F) an employee pension, profit-sharing, or benefit
plan if the plan has total assets in excess of $10,000,000 or its investment
decisions are made by a named fiduciary, as defined in the Employee Retirement
Income Security Act of 1974, that is a broker-dealer registered under the
Securities Exchange Act of 1934, an investment adviser registered or exempt
from registration under the Investment Advisers Act of 1940, an investment
adviser registered under this chapter, a depository institution, or an
insurance company;
(G) a plan established and maintained by a state, a
political subdivision of a state, or an agency or instrumentality of a state or
a political subdivision of a state for the benefit of its employees, if the
plan has total assets in excess of $10,000,000 or its investment decisions are
made by a duly designated public official or by a named fiduciary, as defined
in the Employee Retirement Income Security Act of 1974, that is a broker-dealer
registered under the Securities Exchange Act of 1934, an investment adviser registered
or exempt from registration under the Investment Advisers Act of 1940, an
investment adviser registered under this chapter, a depository institution, or
an insurance company;
(H) a trust, if it has total assets in excess of
$10,000,000, its trustee is a depository institution, and its participants are
exclusively plans of the types identified in subparagraph (F) or (G),
regardless of the size of their assets, except a trust that includes as
participants self-directed individual retirement accounts or similar
self-directed plans;
(I) an organization described in Section 501(c)(3) of
the Internal Revenue Code (26 U.S.C. Section 501(c)(3)), corporation,
Massachusetts trust or similar business trust, limited liability company, or
partnership, not formed for the specific purpose of acquiring the securities
offered, with total assets in excess of $10,000,000;
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(J) a small business investment company licensed by
the Small Business Administration under Section 301(c) of the Small Business
Investment Act of 1958 (15 U.S.C. Section 681(c)) with total assets in excess
of $10,000,000;
(K) a private business development company as defined
in Section 202(a)(22) of the Investment Advisers Act of 1940 (15 U.S.C. Section
80b-2(a)(22)) with total assets in excess of $10,000,000;
(L) a federal covered investment adviser acting for
its own account;
(M) a "qualified institutional buyer" as
defined in Rule 144A(a)(1), other than Rule 144A(a)(1)(i)(H), adopted under the
Securities Act of 1933 (17 C.F.R. 230.144A);
(N) a "major U.S.�
institutional investor" as defined in Rule 15a-6(b)(4)(i) adopted
under the Securities Exchange Act of 1934 (17 C.F.R. 240.15a-6);
(O) any other person, other than an individual, of
institutional character with total assets in excess of $10,000,000 not
organized for the specific purpose of evading this chapter; or
(P) any other person specified by rule adopted or
order issued under this chapter;
(13) "Insurance company" means a company
organized as an insurance company whose primary business is writing insurance
or reinsuring risks underwritten by insurance companies and which is subject to
supervision by the insurance commissioner or a similar official or agency of a
state.�
(14) "Insured" means insured as to payment
of all principal and all interest.�
(15) "International banking institution"
means an international financial institution of which the United States is a
member and whose securities are exempt from registration under the Securities
Act of 1933.�
(16) "Investment adviser" means a person
that, for compensation, engages in the business of advising others, either
directly or through publications or writings, as to the value of securities or
the advisability of investing in, purchasing, or selling securities or that,
for compensation and as a part of a regular business, issues or promulgates
analyses or reports concerning securities.�
The term includes a financial planner or other person that, as an
integral component of other financially related services, provides investment
advice to others for compensation as part of a business or that holds itself
out as providing investment advice to others for compensation.� The term does not include:�
(A) an investment adviser representative;
(B) a lawyer, accountant, engineer, or teacher whose
performance of investment advice is solely incidental to the practice of the person's
profession;
(C) a broker-dealer or its agents whose performance of
investment advice is solely incidental to the conduct of business as a
broker-dealer and that does not receive special compensation for the investment
advice;
(D) a publisher of a bona fide newspaper, news
magazine, or business or financial publication of general and regular
circulation;
(E) a federal covered investment adviser;
(F) a bank or savings institution;
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(G) any other person that is excluded by the
Investment Advisers Act of 1940 from the definition of investment adviser; or
(H) any other person excluded by rule adopted or order
issued under this chapter.�
(17) "Investment adviser representative"
means an individual employed by or associated with an investment adviser or
federal covered investment adviser and who makes any recommendations or
otherwise gives investment advice regarding securities, manages accounts or
portfolios of clients, determines which recommendation or advice regarding
securities should be given, provides investment advice or holds herself or
himself out as providing investment advice, receives compensation to solicit,
offer, or negotiate for the sale of or for selling investment advice, or
supervises employees who perform any of the foregoing.� The term does not include an individual who:�
(A) performs only clerical or ministerial acts;
(B) is an agent whose performance of investment advice
is solely incidental to the individual acting as an agent and who does not
receive special compensation for investment advisory services;
(C) is employed by or associated with a federal
covered investment adviser, unless the individual has a "place of
business" in this state as that term is defined by rule adopted under
Section 203A of the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-3a)
and is
(i) an "investment adviser representative"
as that term is defined by rule adopted under Section 203A of the Investment
Advisers Act of 1940 (15 U.S.C. Section 80b-3a); or
(ii) not a "supervised person" as that term
is defined in Section 202(a)(25) of the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-2(a)(25)); or
(D) is excluded by rule adopted or order issued under
this chapter.�
(18) "Issuer" means a person that issues or
proposes to issue a security, subject to the following: �
(A) The issuer of a voting trust certificate,
collateral trust certificate, certificate of deposit for a security, or share
in an investment company without a board of directors or individuals performing
similar functions is the person performing the acts and assuming the duties of
depositor or manager pursuant to the trust or other agreement or instrument
under which the security is issued.�
(B) The issuer of an equipment trust certificate or
similar security serving the same purpose is the person by which the property
is or will be used or to which the property or equipment is or will be leased
or conditionally sold or that is otherwise contractually responsible for
assuring payment of the certificate. �
(C) The issuer of a fractional undivided interest in
an oil, gas, or other mineral lease or in payments out of production under a
lease, right, or royalty is the owner of an interest in the lease or in
payments out of production under a lease, right, or royalty, whether whole or
fractional, that creates fractional interests for the purpose of sale.�
(19) "Nonissuer transaction" or
"nonissuer distribution" means a transaction or distribution not
directly or indirectly for the benefit of the issuer.�
(20) "Offer to purchase" includes an attempt
or offer to obtain, or solicitation of an offer to sell, a security or interest
in a security for value.� The term does
not include a tender offer that is subject to Section 14(d) of the Securities
Exchange Act of 1934 (15 U.S.C. Section 78n(d)).�
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(21) "Person"
means an individual; corporation; business trust; estate; trust; partnership;
limited liability company; association; joint venture; government; governmental
subdivision, agency, or instrumentality; public corporation; or any other legal
or commercial entity.�
(22)
"Place of business" of a broker-dealer, an investment adviser, or a
federal covered investment adviser means:�
(A) an office at which the
broker-dealer, investment adviser, or federal covered investment adviser
regularly provides brokerage or investment advice or solicits, meets with, or
otherwise communicates with customers or clients; or
(B) any other location that
is held out to the general public as a location at which the broker-dealer,
investment adviser, or federal covered investment adviser provides brokerage or
investment advice or solicits, meets with, or otherwise communicates with
customers or clients.�
(23) "Predecessor
Act" means Minnesota Statutes 2002, sections 80A.01 to 80A.31.�
(24) "Price
amendment" means the amendment to a registration statement filed under the
Securities Act of 1933 or, if an amendment is not filed, the prospectus or
prospectus supplement filed under the Securities Act of 1933 that includes a
statement of the offering price, underwriting and selling discounts or
commissions, amount of proceeds, conversion rates, call prices, and other
matters dependent upon the offering price.�
(25) "Principal place
of business" of a broker-dealer or an investment adviser means the
executive office of the broker-dealer or investment adviser from which the
officers, partners, or managers of the broker-dealer or investment adviser
direct, control, and coordinate the activities of the broker-dealer or
investment adviser.�
(26) Only for purposes of
calculating the number of purchasers under section 80A.46(1) and 80A.46(14), "purchaser"
does not include:�
(A) any relative, spouse, or
relative of the spouse of a purchaser who has the same principal residence as
the purchaser;
(B) any trust or estate in
which a purchaser and any of the persons related to him as specified in
Regulation D, Rule 501(e)(1)(i) or (e)(1)(ii) collectively have more than 50
percent of the beneficial interest (excluding contingent interests);
(C) any corporation or other
organization of which a purchaser and any of the persons related to the
purchaser as specified in Regulation D, Rule 501(e)(1)(i) or (e)(1)(ii)
collectively are beneficial owners of more than 50 percent of the equity
securities (excluding directors' qualifying shares) or equity interests; and
(D) any accredited
investor.�
A corporation, partnership,
or other entity must be counted as one purchaser.� If, however, that entity is organized for the
specific purpose of acquiring the securities offered and is not an accredited
investor, then each beneficial owner of equity securities or equity interests
in the entity shall count as a separate purchaser for all provisions of
Regulation D, except to the extent provided in Regulation D, Rule 501(e)(1).�
A noncontributory employee
benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974 shall be counted as one
purchaser where the trustee makes all investment decisions for the plan.�
(27) "Record,"
except in the phrases "of record," "official record," and
"public record," means information that is inscribed on a tangible medium or that is stored in an electronic or
other medium and is retrievable in perceivable form.�
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(28) "Sale"
includes every contract of sale, contract to sell, or disposition of, a
security or interest in a security for value, and "offer to sell"
includes every attempt or offer to dispose of, or solicitation of an offer to
purchase, a security or interest in a security for value.�
(A) A security given or
delivered with, or as a bonus on account of, any purchase of securities or any
other thing is considered to constitute part of the subject of the purchase and
to have been offered and sold for value.�
(B) A gift of assessable
stock is considered to involve an offer and sale.�
(C) A sale or offer of a
warrant or right to purchase or subscribe to another security of the same or
another issuer and a sale or offer of a security that gives the holder a
present or future right or privilege to convert the security into another
security of the same or another issuer, are each considered to include an offer
of the other security.�
(29) "Securities and
Exchange Commission" means the United States Securities and Exchange
Commission.�
(30) "Security"
means a note; stock; treasury stock; security future; bond; debenture; evidence
of indebtedness; certificate of interest or participation in a profit-sharing
agreement; collateral trust certificate; preorganization certificate or
subscription; transferable share; investment contract; voting trust
certificate; certificate of deposit for a security; fractional undivided
interest in oil, gas, or other mineral rights; put, call, straddle, option, or
privilege on a security, certificate of deposit, or group or index of
securities, including an interest therein or based on the value thereof; put,
call, straddle, option, or privilege entered into on a national securities
exchange relating to foreign currency; or, in general, an interest or
instrument commonly known as a "security"; or a certificate of
interest or participation in, temporary or interim certificate for, receipt
for, guarantee of, or warrant or right to subscribe to or purchase, any of the
foregoing.� The term:�
(A) includes both a
certificated and an uncertificated security;
(B) does not include an
insurance or endowment policy or annuity contract under which an insurance
company promises to pay a fixed or variable sum of money either in a lump sum
or periodically for life or other specified period;
(C) does not include an
interest in a contributory or noncontributory pension or welfare plan subject
to the Employee Retirement Income Security Act of 1974;
(D) includes as an
"investment contract," among other contracts, an interest in a
limited partnership and a limited liability company and an investment in a
viatical settlement or similar agreement; and
(E) does not include any
equity interest of a closely held corporation or other entity with not more
than 35 holders of the equity interest of such entity offered or sold
pursuant to a transaction in which 100 percent of the equity interest of such
entity is sold as a means to effect the sale of the business of the entity if
the transaction has been negotiated on behalf of all purchasers and if all
purchasers have access to inside information regarding the entity before
consummating the transaction.�
(31) "Self-regulatory
organization" means a national securities exchange registered under the
Securities Exchange Act of 1934, a national securities association of
broker-dealers registered under the Securities Exchange Act of 1934, a clearing
agency registered under the Securities Exchange Act of 1934, or the Municipal
Securities Rulemaking Board established under the Securities Exchange Act of
1934.�
(32) "Sign" means,
with present intent to authenticate or adopt a record:�
(A) to execute or adopt a
tangible symbol; or
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(B) to attach or logically
associate with the record an electronic symbol, sound, or process.�
(33) "State" means
a state of the United States, the District of Columbia, Puerto Rico, the United
States Virgin Islands, or any territory or insular possession subject to the
jurisdiction of the United States.�
(34) "Associated
with" with respect to a person means any partner, officer, director, or
manager of such person or any person occupying a similar status or performing
similar functions or any person directly or indirectly controlling, controlled
by, or in common control with, such person, but does not include a person whose
primary duties are ministerial or clerical.�
Sec. 45.� Minnesota Statutes 2008, section 80A.46, is
amended to read:
80A.46 SECTION 202; EXEMPT TRANSACTIONS.�
The following transactions
are exempt from the requirements of sections 80A.49 through 80A.54 and
80A.71:�
(1) isolated nonissuer
transactions, consisting of sale to not more than ten purchasers in Minnesota
during any period of 12 consecutive months, whether effected by or through a
broker-dealer or not;
(2) a nonissuer transaction
by or through a broker-dealer registered, or exempt from registration under
this chapter, and a resale transaction by a sponsor of a unit investment trust
registered under the Investment Company Act of 1940, in a security of a class
that has been outstanding in the hands of the public for at least 90 days, if,
at the date of the transaction:�
(A) the issuer of the
security is engaged in business, the issuer is not in the organizational stage
or in bankruptcy or receivership, and the issuer is not a blank check, blind
pool, or shell company that has no specific business plan or purpose or has
indicated that its primary business plan is to engage in a merger or
combination of the business with, or an acquisition of, an unidentified person;
(B) the security is sold at
a price reasonably related to its current market price;
(C) the security does not
constitute the whole or part of an unsold allotment to, or a subscription or
participation by, the broker-dealer as an underwriter of the security or a
redistribution;
(D) a nationally recognized
securities manual or its electronic equivalent designated by rule adopted or
order issued under this chapter or a record filed with the Securities and Exchange
Commission that is publicly available contains:�
(i) a description of the
business and operations of the issuer;
(ii) the names of the
issuer's executive officers and the names of the issuer's directors, if any;
(iii) an audited balance
sheet of the issuer as of a date within 18 months before the date of the
transaction or, in the case of a reorganization or merger when the parties to
the reorganization or merger each had an audited balance sheet, a pro forma
balance sheet for the combined organization; and
(iv) an audited income
statement for each of the issuer's two immediately previous fiscal years or for
the period of existence of the issuer, whichever is shorter, or, in the case of
a reorganization or merger when each party to the reorganization or merger had
audited income statements, a pro forma income statement; and
(E) any one of the following
requirements is met:�
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(i) the issuer of the security has a class of equity
securities listed on a national securities exchange registered under Section 6
of the Securities Exchange Act of 1934 or designated for trading on the
National Association of Securities Dealers Automated Quotation System;
(ii) the issuer of the security is a unit investment
trust registered under the Investment Company Act of 1940;
(iii) the issuer of the security, including its predecessors,
has been engaged in continuous business for at least three years; or
(iv) the issuer of the security has total assets of at
least $2,000,000 based on an audited balance sheet as of a date within 18
months before the date of the transaction or, in the case of a reorganization
or merger when the parties to the reorganization or merger each had such an
audited balance sheet, a pro forma balance sheet for the combined organization;
(3) a nonissuer transaction by or through a
broker-dealer registered or exempt from registration under this chapter in a
security of a foreign issuer that is a margin security defined in regulations
or rules adopted by the Board of Governors of the Federal Reserve System;
(4) a nonissuer transaction by or through a broker-dealer
registered or exempt from registration under this chapter in an outstanding
security if the guarantor of the security files reports with the Securities and
Exchange Commission under the reporting requirements of Section 13 or 15(d) of
the Securities Exchange Act of 1934 (15 U.S.C. Sections 78m or 78o(d));
(5) a nonissuer transaction by or through a
broker-dealer registered or exempt from registration under this chapter in a
security that:�
(A) is rated at the time of the transaction by a nationally
recognized statistical rating organization in one of its four highest rating
categories; or
(B) has a fixed maturity or a fixed interest or
dividend, if:�
(i) a default has not occurred during the current fiscal
year or within the three previous fiscal years or during the existence of the
issuer and any predecessor if less than three fiscal years, in the payment of
principal, interest, or dividends on the security; and
(ii) the issuer is engaged in business, is not in the
organizational stage or in bankruptcy or receivership, and is not and has not
been within the previous 12 months a blank check, blind pool, or shell company
that has no specific business plan or purpose or has indicated that its primary
business plan is to engage in a merger or combination of the business with, or
an acquisition of, an unidentified person;
(6) a nonissuer transaction by or through a
broker-dealer registered or exempt from registration under this chapter
effecting an unsolicited order or offer to purchase;
(7) a nonissuer transaction executed by a bona fide
pledgee without the purpose of evading this chapter;
(8) a nonissuer transaction by a federal covered
investment adviser with investments under management in excess of $100,000,000
acting in the exercise of discretionary authority in a signed record for the
account of others;
(9) a transaction in a security, whether or not the
security or transaction is otherwise exempt, in exchange for one or more bona
fide outstanding securities, claims, or property interests, or partly in such
exchange and partly for cash, if the terms and conditions of the issuance and
exchange or the delivery and exchange and the fairness of the terms and
conditions have been approved by the administrator after a hearing;
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(10) a transaction between
the issuer or other person on whose behalf the offering is made and an
underwriter, or among underwriters;
(11) a transaction in a
note, bond, debenture, or other evidence of indebtedness secured by a mortgage
or other security agreement if:�
(A) the note, bond,
debenture, or other evidence of indebtedness is offered and sold with the
mortgage or other security agreement as a unit;
(B) a general solicitation
or general advertisement of the transaction is not made; and
(C) a commission or other
remuneration is not paid or given, directly or indirectly, to a person not
registered under this chapter as a broker-dealer or as an agent;
(12) a transaction by an
executor, administrator of an estate, sheriff, marshal, receiver, trustee in
bankruptcy, guardian, or conservator;
(13) a sale or offer to sell
to:�
(A) an institutional
investor;
(B) an accredited investor;
(C) a federal covered
investment adviser; or
(D) any other person
exempted by rule adopted or order issued under this chapter;
(14) a sale or an offer to
sell securities by an issuer, if the transaction is part of a single issue in
which:�
(A) not more than 35
purchasers are present in this state during any 12 consecutive months, other
than those designated in paragraph (13);
(B) a general solicitation
or general advertising is not made in connection with the offer to sell or sale
of the securities;
(C) a commission or other
remuneration is not paid or given, directly or indirectly, to a person other
than a broker-dealer registered under this chapter or an agent registered under
this chapter for soliciting a prospective purchaser in this state; and
(D) the issuer reasonably
believes that all the purchasers in this state, other than those designated in
paragraph (13), are purchasing for investment.�
Any issuer selling to
purchasers in this state in reliance on this clause (14) exemption must provide
to the administrator notice of the transaction by filing a statement of issuer
form as adopted by rule.� Notice must be
filed at least ten days in advance of any sale or such shorter period as
permitted by the administrator.� However,
an issuer who makes sales to ten or fewer purchasers in Minnesota during any
period of 12 consecutive months is not required to provide this notice;
(15) a transaction under an
offer to existing security holders of the issuer, including persons that at the
date of the transaction are holders of convertible securities, options, or
warrants, if a commission or other remuneration, other than a standby
commission, is not paid or given, directly or indirectly, for soliciting a
security holder in this state.�
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The person making the offer
and effecting the transaction must provide to the administrator notice of the
transaction by filing a written description of the transaction.� Notice must be filed at least ten days in advance
of any transaction or such shorter period as permitted by the administrator;
(16) an offer to sell, but not a sale, of a security
not exempt from registration under the Securities Act of 1933 if:�
(A) a registration or offering statement or similar record
as required under the Securities Act of 1933 has been filed, but is not
effective, or the offer is made in compliance with Rule 165 adopted under the
Securities Act of 1933 (17 C.F.R. 230.165); and
(B) a stop order of which the offeror is aware has not
been issued against the offeror by the administrator or the Securities and
Exchange Commission, and an audit, inspection, or proceeding that is public and
that may culminate in a stop order is not known by the offeror to be pending;
(17) an offer to sell, but not a sale, of a security
exempt from registration under the Securities Act of 1933 if:�
(A) a registration statement has been filed under this
chapter, but is not effective;
(B) a solicitation of interest is provided in a record
to offerees in compliance with a rule adopted by the administrator under this
chapter; and
(C) a stop order of which the offeror is aware has not
been issued by the administrator under this chapter and an audit, inspection,
or proceeding that may culminate in a stop order is not known by the offeror to
be pending;
(18) a transaction involving the distribution of the
securities of an issuer to the security holders of another person in connection
with a merger, consolidation, exchange of securities, sale of assets, or other
reorganization to which the issuer, or its parent or subsidiary and the other
person, or its parent or subsidiary, are parties.� The person distributing the issuer's
securities must provide to the administrator notice of the transaction by
filing a written description of the transaction along with a consent to service
of process complying with section 80A.88.�
Notice must be filed at least ten days in advance of any transaction or
such shorter period as permitted by the administrator;
(19) a rescission offer, sale, or purchase under
section 80A.77;.� The person
making the rescission offer must provide to the administrator notice of the
transaction by filing a written description of the transaction and a copy of
the record that must be delivered to the offeree under section 80A.77.� Notice must be filed at least ten days in
advance of any rescission offer under section 80A.77 or a shorter period as
permitted by the administrator;
(20) an offer or sale of a security to a person not a
resident of this state and not present in this state if the offer or sale does
not constitute a violation of the laws of the state or foreign jurisdiction in
which the offeree or purchaser is present and is not part of an unlawful plan
or scheme to evade this chapter;
(21) employees' stock purchase, savings, option,
profit-sharing, pension, or similar employees' benefit plan, including any
securities, plan interests, and guarantees issued under a compensatory benefit plan
or compensation contract, contained in a record, established by the issuer, its
parents, its majority-owned subsidiaries, or the majority-owned subsidiaries of
the issuer's parent for the participation of their employees including offers
or sales of such securities to:�
(A) directors; general partners; trustees, if the
issuer is a business trust; officers; consultants; and advisors;
(B) family members who acquire such securities from
those persons through gifts or domestic relations orders;
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(C) former employees, directors, general partners,
trustees, officers, consultants, and advisors if those individuals were
employed by or providing services to the issuer when the securities were
offered; and
(D) insurance agents who are exclusive insurance
agents of the issuer, or the issuer's subsidiaries or parents, or who derive
more than 50 percent of their annual income from those organizations.�
A person establishing an employee benefit plan under
the exemption in this clause (21) must provide to the administrator notice of
the transaction by filing a written description of the transaction along with a
consent to service of process complying with section 80A.88.� Notice must be filed at least ten days in
advance of any transaction or such shorter period as permitted by the
administrator;
(22) a transaction involving:�
(A) a stock dividend or equivalent equity
distribution, whether the corporation or other business organization
distributing the dividend or equivalent equity distribution is the issuer or
not, if nothing of value is given by stockholders or other equity holders for
the dividend or equivalent equity distribution other than the surrender of a
right to a cash or property dividend if each stockholder or other equity holder
may elect to take the dividend or equivalent equity distribution in cash,
property, or stock;
(B) an act incident to a judicially approved
reorganization in which a security is issued in exchange for one or more
outstanding securities, claims, or property interests, or partly in such
exchange and partly for cash; or
(C) the solicitation of tenders of securities by an
offeror in a tender offer in compliance with Rule 162 adopted under the
Securities Act of 1933 (17 C.F.R. 230.162);
(23) a nonissuer transaction in an outstanding
security by or through a broker-dealer registered or exempt from registration
under this chapter, if the issuer is a reporting issuer in a foreign
jurisdiction designated by this paragraph or by rule adopted or order issued
under this chapter; has been subject to continuous reporting requirements in
the foreign jurisdiction for not less than 180 days before the transaction; and
the security is listed on the foreign jurisdiction's securities exchange that
has been designated by this paragraph or by rule adopted or order issued under
this chapter, or is a security of the same issuer that is of senior or
substantially equal rank to the listed security or is a warrant or right to
purchase or subscribe to any of the foregoing.�
For purposes of this paragraph, Canada, together with its provinces and
territories, is a designated foreign jurisdiction and The Toronto Stock
Exchange, Inc., is a designated securities exchange.� After an administrative hearing in compliance
with chapter 14, the administrator, by rule adopted or order issued under this
chapter, may revoke the designation of a securities exchange under this
paragraph, if the administrator finds that revocation is necessary or
appropriate in the public interest and for the protection of investors;
(24) any transaction effected by or through a Canadian
broker-dealer exempted from broker-dealer registration pursuant to section
80A.56(b)(3); or
(25)(A) the offer and sale by a cooperative organized
under chapter 308A, or under the laws of another state, of its securities when
the securities are offered and sold only to its members, or when the purchase
of the securities is necessary or incidental to establishing membership in the
cooperative, or when the securities are issued as patronage dividends.� This paragraph applies to a cooperative
organized under chapter 308A, or under the laws of another state, only if the
cooperative has filed with the administrator a consent to service of process
under section 80A.88 and has, not less than ten days before the issuance or
delivery, furnished the administrator with a written general description of the
transaction and any other information that the administrator requires by rule
or otherwise;
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(B) the offer and sale by a cooperative organized
under chapter 308B of its securities when the securities are offered and sold
to its existing members or when the purchase of the securities is necessary or
incidental to establishing patron membership in the cooperative, or when such
securities are issued as patronage dividends.�
The administrator has the power to define "patron membership"
for purposes of this paragraph.� This
paragraph applies to securities, other than securities issued as patronage
dividends, only when:�
(i) the issuer, before the completion of the sale of
the securities, provides each offeree or purchaser disclosure materials that,
to the extent material to an understanding of the issuer, its business, and the
securities being offered, substantially meet the disclosure conditions and
limitations found in rule 502(b) of Regulation D promulgated by the Securities
and Exchange Commission, Code of Federal Regulations, title 17, section
230.502; and
(ii) within 15 days after the completion of the first
sale in each offering completed in reliance upon this exemption, the
cooperative has filed with the administrator a consent to service of process
under section 80A.88 (or has previously filed such a consent), and has
furnished the administrator with a written general description of the
transaction and any other information that the administrator requires by rule
or otherwise; and
(C) a cooperative may, at or about the same time as
offers or sales are being completed in reliance upon the exemptions from
registration found in this subpart and as part of a common plan of financing,
offer or sell its securities in reliance upon any other exemption from
registration available under this chapter.�
The offer or sale of securities in reliance upon the exemptions found in
this subpart will not be considered or deemed a part of or be integrated with
any offer or sale of securities conducted by the cooperative in reliance upon
any other exemption from registration available under this chapter, nor will
offers or sales of securities by the cooperative in reliance upon any other
exemption from registration available under this chapter be considered or
deemed a part of or be integrated with any offer or sale conducted by the cooperative
in reliance upon this paragraph.�
Sec. 46.�
Minnesota Statutes 2008, section 80A.65, subdivision 6, is amended to
read:
Subd. 6.� Rescission offer filing fee.� The filing of a rescission offer under
section 80A.77 80A.46(19), shall be accompanied by the fees as
calculated in subdivision 1.
Sec. 47.�
Minnesota Statutes 2008, section 82.17, is amended by adding a
subdivision to read:
Subd. 1a.�
Brokerage; business entity.� "Brokerage" or
"business entity" means a corporation, partnership, limited liability
company, limited liability partnership, or other business structure that holds
a real estate broker license.
Sec. 48.�
Minnesota Statutes 2008, section 82.17, subdivision 15, is amended to
read:
Subd. 15.� Protective list.� "Protective list" means the
written list of names and addresses of prospective purchasers buyers
with whom a licensee has negotiated the sale or rental of the property or to
whom a licensee has exhibited the property before the expiration of the listing
agreement.� For the purposes of this
subdivision, "property" means the property that is the subject of the
listing agreement in question.
Sec. 49.�
Minnesota Statutes 2008, section 82.17, is amended by adding a
subdivision to read:
Subd. 20a.�
Responsible person.� "Responsible person" means a
natural person that is an officer of a corporation, a partner of a partnership,
a general partner of a limited liability partnership, or a manager of a limited
liability company.
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Sec. 50.�
Minnesota Statutes 2008, section 82.19, is amended to read:
82.19
COMPENSATION.�
Subdivision 1.� Licensee to receive only from broker.� A licensee shall not accept a commission,
compensation, referral fee, or other valuable consideration for the
performance of any acts requiring a real estate license from any person except
the real estate broker to whom the licensee is licensed or to whom the licensee
was licensed at the time of the transaction.
Subd. 1a.�
Commission-splitting, rebates,
referral fee, and fees.� (a)
In connection with a real estate or business opportunity transaction, a real
estate broker or real estate salesperson shall not offer, pay, or give, and a
person shall not accept, any compensation or other thing of value from a real
estate broker or real estate salesperson by way of commission-splitting,
rebate, referral fees, finder's fees, or otherwise.
(b) This subdivision does not apply to transactions:
(1) between a licensed real estate broker or
salesperson and the parties to the transaction;
(2) among persons licensed as provided in this chapter;
(3) between a licensed real estate broker or salesperson
and persons from other jurisdictions similarly licensed in that jurisdiction;
(4) involving timeshare or other recreational lands
where the amount offered or paid does not exceed $150, and payment is not conditioned
upon any sale but is made merely for providing the referral and the person
paying the fee is bound by any representations made by the person receiving the
fee; and
(5) involving a person who receives a referral fee from
a person or an agent of a person licensed under this section, provided that in
any 12-month period, no recipient may earn more than the value of one month's
rent, that the recipient is a resident of the property or has lived there
within 60 days of the payment of the fee, and that the person paying the fee is
bound by any representations made by the recipient of the fee.
Subd. 2.� Undisclosed compensation.� A licensee shall not accept, give, or
charge any undisclosed compensation or realize any direct or indirect
remuneration that inures to the benefit of the licensee on an expenditure made
for a principal.
Subd. 2a.�
Sharing of compensation with
other brokers.� The seller
may, in the listing agreement, authorize the seller's broker to disburse part
of the broker's compensation to other brokers, including the buyer's brokers
solely representing the buyer.
Subd. 3.� Limitation on broker when transaction not
completed.� When the owner fails or
is unable to consummate a real estate transaction, through no fault of the
purchaser, the listing broker may not claim any portion of any trust funds
deposited with the broker by the purchaser, absent a separate agreement with
the purchaser.
Subd. 3a.�
Directing payment of
compensation.� A licensed real
estate broker or salesperson may assign or direct that commissions or other
compensation earned in connection with a real estate or business opportunity
transaction be paid to a corporation, limited liability company, or sole
proprietorship of which the licensed real estate broker or salesperson is the
sole owner.
Subd. 3b.�
Closing agent fee.� A real estate closing agent may not
charge a fee for closing services to a borrower, and a borrower may not be
required to pay such a fee at settlement, if the fee was not previously
disclosed in writing at least one business day before the settlement.� This disclosure requirement is satisfied if a
disclosure is made or an estimate given under section 507.45.
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Sec. 51.� Minnesota Statutes 2008, section 82.21,
subdivision 2, is amended to read:
Subd. 2.� Listing
agreements.� (a) Requirement.� Licensees shall
obtain a signed listing agreement or other signed written authorization from
the owner of real property or from another person authorized to offer the
property for sale or lease before advertising to the general public that the
real property is available for sale or lease.�
For the purposes of this
section "advertising" includes placing a sign on the owner's property
that indicates that the property is being offered for sale or lease.
(b) Contents.� All listing
agreements must be in writing and must include:�
(1) a definite expiration
date;
(2) a description of the
real property involved;
(3) the list price and any
terms required by the seller;
(4) the amount of any
compensation or commission or the basis for computing the commission;
(5) a clear statement explaining
the events or conditions that will entitle a broker to a commission;
(6) a clear statement
explaining if the agreement may be canceled and the terms under which the
agreement may be canceled;
(6) (7) information
regarding an override clause, if applicable, including a statement to the
effect that the override clause will not be effective unless the licensee
supplies the seller with a protective list within 72 hours after the expiration
of the listing agreement;
(7) (8) the following
notice in not less than ten point boldface type immediately preceding any
provision of the listing agreement relating to compensation of the licensee:
"NOTICE:� THE COMPENSATION FOR THE SALE, LEASE, RENTAL,
OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL
BROKER AND THE BROKER'S CLIENT.";
(8) (9) for residential
property listings, the following "dual agency" disclosure statement:
If a buyer represented by
broker wishes to buy the seller's property, a dual agency will be created.� This means that broker will represent both
the seller(s) and the buyer(s), and owe the same duties to the buyer(s) that
broker owes to the seller(s).� This
conflict of interest will prohibit broker from advocating exclusively on the
seller's behalf.� Dual agency will limit
the level of representation broker can provide.�
If a dual agency should arise, the seller(s) will need to agree that
confidential information about price, terms, and motivation will still be kept
confidential unless the seller(s) instruct broker in writing to disclose
specific information about the seller(s).�
All other information will be shared.�
Broker cannot act as a dual agent unless both the seller(s) and the buyer(s)
agree to it.� By agreeing to a possible
dual agency, the seller(s) will be giving up the right to exclusive
representation in an in-house transaction.�
However, if the seller(s) should decide not to agree to a possible dual
agency, and the seller(s) want broker to represent the seller(s), the seller(s)
may give up the opportunity to sell the property to buyers represented by
broker.
Seller's Instructions to
Broker
Having read and understood
this information about dual agency, seller(s) now instructs broker as follows:
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��������..�������������������� Seller(s)
will agree to a dual agency representation and will consider offers ���������� made by buyers represented by broker.
��������..�������������������� Seller(s)
will not agree to a dual agency representation and will not consider �������� offers made by buyers represented by
broker.
����������������.���������������������������������� ������������������
Seller����������������������������������������������������������������������������������������������� Real
Estate Company Name
����������������.���������������������������������� By: ���������������.�
Seller����������������������������������������������������������������������������������������������� Salesperson
Date:�
�������������;
(9) (10) a notice requiring the
seller to indicate in writing whether it is acceptable to the seller to have
the licensee arrange for closing services or whether the seller wishes to
arrange for others to conduct the closing; and
(10) (11) for residential
listings, a notice stating that after the expiration of the listing agreement,
the seller will not be obligated to pay the licensee a fee or commission if the
seller has executed another valid listing agreement pursuant to which the
seller is obligated to pay a fee or commission to another licensee for the
sale, lease, or exchange of the real property in question.� This notice may be used in the listing
agreement for any other type of real estate.
(c) Prohibited
provisions.� Except as otherwise
provided in paragraph (d), clause (2), licensees shall not include in a listing
agreement a holdover clause, automatic extension, or any similar provision, or
an override clause the length of which is more than six months after the
expiration of the listing agreement.
(d) Override
clauses.� (1) Licensees shall not
seek to enforce an override clause unless a protective list has been furnished
to the seller within 72 hours after the expiration of the listing agreement.
(2) A listing agreement may contain an override clause
of up to two years in length when used in conjunction with the purchase or sale
of a business.� The length of the
override clause must be negotiable between the licensee and the seller of the
business.� The protective list provided
in connection with the override clause must include the written acknowledgment
of each party named on the protective list, that the business which is the
subject of the listing agreement was presented to that party by the licensee.
(e) Protective
lists.� A broker or salesperson has
the burden of demonstrating that each person on the protective list has, during
the period of the listing agreement, either made an affirmative showing of
interest in the property by responding to an advertisement or by contacting the
broker or salesperson involved or has been physically shown the property by the
broker or salesperson.� For the purpose
of this section, the mere mailing or other distribution by a licensee of
literature setting forth information about the property in question does not,
of itself, constitute an affirmative showing of interest in the property on the
part of a subsequent purchaser.
For listings of nonresidential real property which do
not contain the notice described in paragraph (b), clause (10) (11),
the protective list must contain the following notice in boldface type:
"IF YOU RELIST WITH ANOTHER BROKER WITHIN THE
OVERRIDE PERIOD AND THEN SELL YOUR PROPERTY TO ANYONE WHOSE NAME APPEARS ON
THIS LIST, YOU COULD BE LIABLE FOR FULL COMMISSIONS TO BOTH BROKERS.� IF THIS NOTICE IS NOT FULLY UNDERSTOOD, SEEK
COMPETENT ADVICE."
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Sec. 52.� Minnesota Statutes 2008, section 82.24,
subdivision 3, is amended to read:
Subd. 3.� Broker
payment consolidation.� For all
license renewal fees, recovery fund renewal fees, and recovery fund assessments
pursuant to this section and section 82.43, the broker must remit the fees or
assessments for the company, broker, and all salespersons licensed to the
broker, in the form of a single check payment.�
Sec. 53.� Minnesota Statutes 2008, section 82.29,
subdivision 4, is amended to read:
Subd. 4.� Broker's
examination.� (a) The examination for
a real estate broker's license shall be more exacting than that for a real
estate salesperson, and shall require a higher degree of knowledge of the
fundamentals of real estate practice and law.
(b) Every application for a
broker's examination shall be accompanied by proof that the applicant has had a
minimum of two years of actual experience within the previous five-year period
prior to application as a licensed real estate salesperson in this or in
another state having comparable requirements or is, in the opinion of the
commissioner, otherwise or similarly qualified by reason of education or
practical experience.� The applicant
shall have completed educational requirements in accordance with subdivision
8.�
(c) An applicant for a limited
broker's license pursuant to section 82.34, subdivision 13, shall not be
required to have a minimum of two years of actual experience as a real estate
person in order to obtain a limited broker's license to act as principal
only.�
Sec. 54.� Minnesota Statutes 2008, section 82.29,
subdivision 5, is amended to read:
Subd. 5.� Waivers.� The commissioner may waive grant
a waiver of the real estate licensing experience requirement for the
broker's examination to a qualified applicant for a waiver.
(a) An A qualified
applicant for a waiver shall provide evidence of is an individual who:
(1) successful completion
of a minimum of 90 quarter credits or 270 classroom hours of real
estate-related studies has a degree in real estate from an accredited
college or university;
(2) a minimum of five
consecutive years of practical experience in real estate-related areas is
a licensed practicing attorney whose practice involves real estate law; or
(3) successful completion
of 30 credits or 90 classroom hours and three consecutive years of practical
experience in real estate-related areas is a public officer whose
official duties involve real estate law or real estate transactions.
(b) A request for a waiver
shall be submitted to the commissioner in writing on a form prescribed by
the commissioner and be accompanied by documents necessary to evidence qualification
as set forth in paragraph (a).
(c) The waiver will lapse if
the applicant fails to successfully complete the broker's examination within
one year from the date of the granting of the waiver.
Sec. 55.� Minnesota Statutes 2008, section 82.29, subdivision
8, is amended to read:
Subd. 8.� Instruction;
new licenses.� (a) Every An
applicant for a salesperson's license shall be required to successfully
complete a course of study in the real estate field consisting of 30 hours of
instruction approved by the commissioner before taking the examination
specified in subdivision 1.� Every
An applicant for a salesperson's license shall be required to
successfully complete an additional course of study in the real estate field
consisting of 60 hours of instruction approved by the commissioner, of which
three hours shall consist of training in state and
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federal fair housing laws,
regulations, and rules, and of which two hours must consist of training in laws
and regulations on agency representation and disclosure, before filing an
application for the license.� This subdivision
does not apply to salespeople licensed in Minnesota before July 1, 1969.
(b) An applicant for a broker's license must
successfully complete a course of study in the real estate field consisting of
30 hours of instruction approved by the commissioner, of which three hours
shall consist of training in state and federal fair housing laws, regulations,
and rules.� The course must have been
completed within 12 months prior to the date of application for the broker's
license.
(c) An applicant for a real estate closing agent's
license must successfully complete a course of study relating to closing
services consisting of eight hours of instruction approved by the commissioner.
Sec. 56.�
Minnesota Statutes 2008, section 82.31, subdivision 1, is amended to
read:
Subdivision 1.� Qualification of applicants.� Every An applicant for a
real estate broker, oder real estate salesperson, or real estate
closing agent license shall be at least 18 years of age at the time of
making application for said license.
Sec. 57.�
Minnesota Statutes 2008, section 82.31, subdivision 2, is amended to
read:
Subd. 2.� Application for license; contents.� (a) Every An applicant for
a license as a real estate broker, oder real estate salesperson,
or closing agent shall make an application in writing upon forms
prepared and furnished the format prescribed by the
commissioner.� Each The
application shall be signed and sworn to by the applicant and shall be
accompanied by the license fee required by this chapter.
(b) Each application for a real estate broker license,
oder real estate salesperson license, or real estate closing agent
license shall contain such information as required by the commissioner
consistent with the administration of the provisions and purposes of this
chapter.
(c) Each The application for a real
estate salesperson license shall give the applicant's legal name, age,
residence address, and the name and place of business of the real estate broker
on whose behalf the salesperson is to be acting.
(d) Each application for a real estate closing agent
license shall give the applicant's name, age, residence address, and the name
and place of business of the closing agent.
(e) (d) The commissioner may
require such further information as the commissioner deems appropriate to administer
the provisions and further the purposes of this chapter.
(f) Applicants (e) An applicant for a real
estate salesperson license shall submit to the commissioner, along with the application
for licensure, a copy of the course completion certificate for courses I, II,
and III and passing examination results.
Sec. 58.�
Minnesota Statutes 2009 Supplement, section 82.31, subdivision 4, is
amended to read:
Subd. 4.� Corporate and partnership Business entity; brokerage
licenses.� (a) A corporation business
entity applying for a license shall have at least one officer responsible
person individually licensed to act as broker for the corporation brokerage.� The corporation business entity
broker's license shall extend no authority to act as broker to any person other
than the corporate Geschäft entity.� Each officer responsible person
who intends to act as a broker shall obtain a license.
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(b) A partnership business entity
applying for a license shall have at least one partner responsible
person individually licensed to act as broker for the partnership business
entity.� Each partner responsible
person who intends to act as a broker shall obtain a license.
(c) Applications An application for a business
entity license made by a corporation shall be verified by the president
and one other officer.� Applications made
by a partnership shall be verified by at least two partners
responsible persons for the business entity.
(d) Any partner or officer A responsible
person who ceases to act as broker for a partnership or corporation
business entity shall notify the commissioner upon said termination.� The individual licenses of all salespersons
acting on behalf of a corporation or partnership, brokerage are
automatically ineffective upon the revocation or suspension of the license of
the partnership or corporation brokerage.� The commissioner may suspend or revoke the
license of an officer or partner a responsible person licensee
without suspending or revoking the license of the corporation or partnership
business entity.
(e) The application of all officers responsible
persons of a corporation or partners in a partnership business
entity who intend to act as a broker brokers on behalf of a corporation
or partnership business entity shall accompany the initial license
application of the corporation or partnership business entity.� Officers or partners Responsible
persons intending to act as brokers subsequent to the licensing of the corporation
or partnership business entity shall procure an individual real
estate broker's license prior to acting in the capacity of a broker.� No corporate officer, or partner,
responsible person who maintains a salesperson's license may exercise any
authority over any trust account administered by the broker nor may they be
vested with any supervisory authority over the broker.
(f) The corporation or partnership business
entity applicant shall make available upon request, such records and data
required by the commissioner for enforcement of this chapter.
(g) The commissioner may require further information,
as the commissioner deems appropriate, to administer the provisions and further
the purposes of this chapter.
Sec. 59.�
Minnesota Statutes 2009 Supplement, section 82.32, is amended to read:
82.32
LICENSING:� CONTINUING EDUCATION AND
INSTRUCTION.�
(a) All real estate salespersons and all real estate
brokers shall be required to successfully complete 30 hours of real estate
continuing education, either as a student or a lecturer, in courses of study
approved by the commissioner, during the initial license period and during each
succeeding 24-month license period.� At
least 15 of the 30 credit hours must be completed during the first 12 months of
the 24-month licensing period.� Licensees
may not claim credit for continuing education not actually completed as of the
date their report of continuing education compliance is filed.
(b) The commissioner may adopt rules defining the
standards for course and instructor approval, and may adopt rules for the
proper administration of prelicense instruction as required under section
82.29, subdivision 8, and continuing education as required under this section
and sections 82.29; 82.31, subdivisions subdivision 5 and 6;
82.33, subdivisions 1 and 4 to 6; and 82.44.�
The commissioner may not approve a course which can be completed by the
student at home or outside the classroom without the supervision of an
instructor except accredited courses using new delivery technology, including
interactive technology, and the Internet.�
The commissioner may approve courses of study in the real estate field
offered in educational institutions of higher learning in this state or courses
of study in the real estate field developed by and offered under the auspices
of the National Association of Realtors, its affiliates, or private real estate
schools.� Courses in motivation,
salesmanship, psychology, or time management shall not be approved by the
commissioner for continuing education credit.�
The commissioner may approve courses in any other subjects, including,
but not limited to, communication, marketing, negotiation, and technology for
continuing education credit.�
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(c) As part of the continuing
education requirements of this section and sections 82.29; 82.31, subdivisions
5 and 6; 82.33, subdivisions 1 and 4 to 6; and 82.44, the
commissioner shall require that all real estate brokers and salespersons
receive:�
(1) at least one hour of training during each license
period in courses in laws or regulations on agency representation and
disclosure; and
(2) at least one hour of training during each license
period in courses in state and federal fair housing laws, regulations, and
rules, other antidiscrimination laws, or courses designed to help licensees to
meet the housing needs of immigrant and other underserved populations.
Clauses (1) and (2) do not apply to real estate
salespersons and real estate brokers engaged solely in the commercial real
estate business who file with the commissioner a verification of this status
along with the continuing education report required under paragraph (a).
(d) The commissioner is authorized to establish a
procedure for renewal of course accreditation.
(e) Approved continuing education courses may be
sponsored or offered by a broker of a real estate company and may be held on
the premises of a company licensed under this chapter.� All continuing education course offerings
must be open to any interested individuals.�
Access may be restricted by the education provider based on class size
only.� Courses must not be approved if
attendance is restricted to any particular group of people.� A broker must comply with all continuing
education rules prescribed by the commissioner.�
The commissioner shall not approve any prelicense instruction courses
offered by, sponsored by, or affiliated with any person or company licensed to
engage in the real estate business.
(f) Credit may not be earned if the licensee has
previously obtained credit for the same course as either a student or
instructor during the same licensing period.
(g) The real estate education course completion
certificate must be in the form set forth by the commissioner.� Students are responsible for maintaining
copies of course completion certificates.
(h) An approved prelicense 30-hour broker course may
be used for continuing education credit by a real estate salesperson or broker
if the course is completed during the appropriate licensing period.
Sec. 60.�
Minnesota Statutes 2008, section 82.33, subdivision 1, is amended to
read:
Subdivision 1.� Duration.�
No The renewal of a salesperson's license shall be
is not effective beyond a date two years after the granting of such
the salesperson's license unless the salesperson has furnished evidence
of compliance with section 82.29, subdivision 8.� The commissioner shall cancel the license of any
a salesperson who fails to comply with section 82.29, subdivision
8.� This subdivision shall not apply
to salespeople licensed in Minnesota prior to July 1, 1969.�
Sec. 61.�
Minnesota Statutes 2008, section 82.33, is amended by adding a
subdivision to read:
Subd. 1a.�
Broker's responsibility.� (a) A broker shall renew the license of
each eligible salesperson who is and will continue to be associated with the
broker.� For the purposes of this
subdivision, an eligible salesperson is one who has demonstrated compliance
with all renewal requirements before June 15 of the renewal year.
(b) When a broker does not intend to renew the license
of an eligible salesperson who is associated with the broker, the broker must
notify the salesperson in writing 30 days before June 15 of the renewal year.
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(c) When the broker
responsible for the salesperson's license renewal does not renew an eligible
salesperson's license before the renewal deadline, the broker shall pay on the
salesperson's behalf any additional higher license fees that result.
Sec. 62.� Minnesota Statutes 2008, section 82.33,
subdivision 2, is amended to read:
Subd. 2.� Timely
renewals.� Persons A person
whose applications have application for a license renewal has not
been properly and timely filed and who have has
not received notice of denial approval of renewal are deemed
to have been approved for renewal and may not continue to transact
business either as a real estate broker, salesperson, or closing agent whether
or not the renewed license has been received on or before July 1 after
June 30 of the renewal year until approval of renewal is received.� Application for renewal of a license shall
be deemed to have been is timely filed if received by the
commissioner by, or mailed with proper postage and postmarked by,:�
(1) all requirements for
renewal, including continuing education requirements, have been completed by June 15 of the renewal year.� Applications for renewal shall be deemed
properly filed if made; and
(2) the application is
submitted before the renewal deadline in the manner prescribed by the
commissioner
upon forms duly executed and sworn to, accompanied by fees prescribed by this
chapter, and contain containing any information which
the commissioner may require requires.
Sec. 63.� Minnesota Statutes 2008, section 82.34,
subdivision 1, is amended to read:
Subdivision 1.� Generally.� (a) The commissioner shall issue a
license as a real estate broker, oder real estate salesperson,
or closing agent to any person who qualifies for such the
license under the terms of this chapter.
(b) The commissioner is
authorized to establish by rule a special license for real estate brokers and
real estate salespeople engaged solely in the rental or management of an
interest or estate in real estate, to prescribe qualifications for the license,
and to issue the license consistent with the terms of this chapter.� This clause shall not be construed to require
those owners or managers or their agents or employees who are excluded by
section 82.23, clause (d), from the definition of real estate broker, to obtain
the special license.�
Sec. 64.� Minnesota Statutes 2008, section 82.34,
subdivision 2, is amended to read:
Subd. 2.� Additional
broker's license.� An individual who
holds a broker's license in his or her the broker's own name or
for or on behalf of a corporation or partnership business entity
must be issued an additional broker's license only upon demonstrating:�
(1) that the additional license
is necessary in order to serve a legitimate business purpose;
(2) that the broker will be
capable of supervising all salespersons over whom he or she the
broker will have supervisory responsibility or, in the alternative, that
the broker will have no supervisory responsibilities under the additional
license; and
(3) that the broker:�
(i) has a substantial at
least 51 percent ownership interest in each corporation or partnership
business entity for or on whose behalf he or she the broker
holds or will hold a broker's license.; or
(ii) is an elected or
appointed officer, signing partner, or managing member of both the business
entity for which or on whose behalf the broker already holds a license, and an
affiliated business entity for which or on whose behalf the broker is applying
for an additional license.
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The requirement of a
substantial ownership interest does not apply where the broker seeking the
additional license or licenses is an officer of a corporation for or on whose
behalf the broker already holds a license and the broker is applying for the
additional license or licenses for or on behalf of an affiliated corporation or
corporations of which he or she is also an officer.� For the purpose of this section and sections 82.31,
subdivisions 1 to 4; 82.33, subdivisions 1 to 3; 82.35, subdivision 2; and 82.39,
"affiliated corporation business entity" means a corporation
which is directly or indirectly controlled business entity that is
majority-owned by the same persons as the corporation business
entity for which or on whose behalf the broker is already licensed
to act.�
For the purposes of this
section and sections 82.31, subdivisions 1 to 4; 82.33, subdivisions 1 to 3;
82.35, subdivision 2; and 82.39, a legitimate business purpose includes
engaging in a different and specialized area of real estate or maintaining an
existing business name.�
Sec. 65.� Minnesota Statutes 2008, section 82.34,
subdivision 4, is amended to read:
Subd. 4.� Issuance
of license; salesperson.� A
salesperson must be licensed to act on behalf of a licensed broker and may not
be licensed to act on behalf of more than one broker in this state during the
same period of time.� The license of
each real estate salesperson shall be mailed to and remain in the possession of
the licensed broker with whom the salesperson is or is to be associated until
canceled or until such licensee leaves such broker.
Sec. 66.� Minnesota Statutes 2008, section 82.34,
subdivision 5, is amended to read:
Subd. 5.� Effective
date of license.� Licenses
A license renewed pursuant to this chapter are is valid for a
period of 24 months.� New licenses
A new license issued during a 24-month licensing period will expire on
June 30 of the expiration year assigned to the license.� Implementation of the 24-month licensing
program must be staggered so that approximately one-half of the licenses will
expire on June 30 of each even-numbered year and the other one-half on June 30
of each odd-numbered year.� Those
licensees who will receive a 12-month license on July 1, 1995, because of the
staggered implementation schedule will pay for the license a fee reduced by an
amount equal to one-half the fee for renewal of the license.
Sec. 67.� Minnesota Statutes 2008, section 82.34,
subdivision 13, is amended to read:
Subd. 13.� Limited
broker's license.� (a) The
commissioner shall have the authority to issue a limited real estate broker's
license authorizing the licensee to engage in transactions as principal
only.� Such license shall be issued only
after receipt of the application described in section 82.31, subdivision 2, and
payment of the fee prescribed by section 82.24, subdivision 1.� No salesperson may be licensed to act on
behalf of an individual holding a limited broker's license.� An officer of a corporation or partner of a
partnership licensed as a limited broker may act on behalf of that corporation
or partnership without being subject to the licensing requirements.� following limited activities:�
(b) A limited broker's
license shall also authorize the licensee to engage in negotiation of mortgage loans,
other than residential mortgage loans, as described in section 82.17,
subdivision 18, clause (b).�
(1) the licensee to engage
in transactions as principal only; or
(2) the licensee to engage
in negotiations of mortgage loans, other than residential mortgage loans, as
described in section 82.17, subdivision 18, clause (b).
The license may be issued
only after receipt of the application described in section 82.31, subdivision
2, and payment of the fee prescribed by section 82.24, subdivision 1.� A salesperson may not be licensed to act on
behalf of an individual holding a limited broker's license.� A responsible person of a business entity
licensed as a limited broker may act on behalf of that business entity without
being subject to the licensing requirements.
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Sec. 68.� Minnesota Statutes 2008, section 82.39, is
amended to read:
82.39 NOTICE TO COMMISSIONER.�
Subdivision 1.� Notice
Change of application information.� Notice in writing or in the format
prescribed by the commissioner shall be given to the commissioner by each
a licensee of any change in of information contained in the license
application on file with the commissioner, including but not limited to
personal name, trade name, address or business location not later than ten days
after such the change.� The
commissioner shall issue a new license if required for the unexpired period.
Subd. 2.� Mandatory.� Licensees The licensee
shall notify the commissioner in writing or in the format prescribed by the
commissioner within ten days of the facts in subdivisions 3 to 5.
Subd. 3.� Civil
judgment.� Licensees The
licensee must notify the commissioner in writing within ten days of
a final adverse decision or order of a court, whether or not the decision or
order is appealed, regarding any proceeding in which the licensee was named as
a defendant, and which alleged fraud, misrepresentation, or the conversion of
funds, if the final adverse decision relates to the allegations of fraud,
misrepresentation, or the conversion of funds.
Subd. 4.� Disciplinary
action.� The licensee must notify the
commissioner in writing within ten days of the suspension or revocation
of the licensee's real estate or other occupational license issued by this
state or another jurisdiction.
Subd. 5.� Criminal
offense.� The licensee must notify
the commissioner in writing within ten days if the licensee is charged
with, adjudged guilty of, or enters a plea of guilty or nolo contendere to a
charge of any felony, or of any gross misdemeanor alleging fraud,
misrepresentation, conversion of funds, or a similar violation of any real
estate licensing law.
Sec. 69.� Minnesota Statutes 2008, section 82.41,
subdivision 1, is amended to read:
Subdivision 1.� License
required.� No person shall act as a
real estate broker, or real estate salesperson, or real estate
closing agent unless licensed as herein provided in this section.
Sec. 70.� Minnesota Statutes 2008, section 82.41,
subdivision 2, is amended to read:
Subd. 2.� Misrepresenting
status as licensee.� No persons shall
advertise or represent themselves to be real estate brokers, salespeople, or
closing agents or real estate salespersons unless licensed as herein
provided in this section.
Sec. 71.� Minnesota Statutes 2008, section 82.41, is
amended by adding a subdivision to read:
Subd. 3a.� Limitation
on broker when transaction not completed.�
When the owner fails or is unable to consummate a real estate
transaction, through no fault of the purchaser, the listing broker may not
claim any portion of any trust funds deposited with the broker by the
purchaser, absent a separate agreement with the purchaser.
Sec. 72.� Minnesota Statutes 2008, section 82.45,
subdivision 3, is amended to read:
Subd. 3.� Retention.� A licensed real estate broker shall
retain for three six years copies of all listings, buyer
representation and facilitator services contracts, deposit receipts, purchase
money contracts, canceled checks, trust account records, and such other
documents as may reasonably be related to carrying on a real estate brokerage
business.� The retention period shall run
from the date of the closing of the transaction, or from the date of the
document if the document is not consummated.�
The following documents need not be retained:
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(1) agency disclosure forms provided to prospective
buyers or sellers, where no contractual relationship is subsequently created
and no services are provided by the licensee; and
(2) facilitator services contracts or buyer
representation contracts entered into with prospective buyers, where the
prospective buyer abandons the contractual relationship before any services
have been provided by the licensee.
Sec. 73.�
Minnesota Statutes 2008, section 82.45, is amended by adding a
subdivision to read:
Subd. 4.�
Storage.� Storage of documents identified in
subdivision 3 may be stored by electronic means.
Sec. 74.�
Minnesota Statutes 2008, section 82.45, is amended by adding a
subdivision to read:
Subd. 5.�
Destruction.� After the retention period specified
in subdivision 3 has elapsed and the broker no longer wishes to retain the
documents, the broker must ensure that the documents are disposed of according
to the confidential record destruction
procedures of the Fair and Accurate Credit Transaction Act of 2003, Public Law
108-159.
Sec. 75.�
Minnesota Statutes 2008, section 82.48, subdivision 2, is amended to
read:
Subd. 2.� Penalty for noncompliance.� The methods, acts, or practices set forth
in subdivisions 1 and 3 and sections 82.19; 82.22; 82.27; 82.31, subdivision
6; 82.37; and 82.41, subdivision 11, are standards of conduct governing the
activities of real estate brokers and salespersons.� Failure to comply with these standards shall
constitute grounds for license denial, suspension, or revocation, or for
censure of the licensee.�
Sec. 76.�
Minnesota Statutes 2008, section 82.48, subdivision 3, is amended to
read:
Subd. 3.� Responsibilities of brokers.� (a) Supervision
of personnel.� Brokers A
broker shall adequately supervise the activities of their the
broker's salespersons and employees.�
Supervision includes the ongoing monitoring of listing agreements,
purchase agreements, other real estate-related documents which are prepared or
drafted by the broker's salespersons or employees or which are otherwise
received by the broker's office, and the review of all trust account books and
records.� If an individual broker
maintains more than one place of business, each place of business shall be
under the broker's direction and supervision.�
If a partnership or corporate broker brokerage maintains
more than one place of business, each place of business shall be under the
direction and supervision of an individual broker licensed to act on behalf of
the partnership or corporation brokerage.�
The primary broker shall maintain records specifying
the name of each broker responsible for the direction and supervision of each
place of business.� If an individual
broker, who may be the primary broker, is responsible for supervising more than
one place of business, the primary broker shall, upon written request of the
commissioner, file a written statement specifying the procedures which have
been established to ensure that all salespersons and employees are adequately
supervised.� Designation of another
broker to supervise a place of business does not relieve the primary broker of
the ultimate responsibility for the actions of licensees.
(b) Preparation
and safekeeping of documents.� Brokers
shall be A broker is responsible for the preparation, custody,
safety, and accuracy of all real estate contracts, documents, and records, even
though another person may be assigned these duties by the broker.�
(c) Documentation
and resolution of complaints.� Brokers
A broker shall investigate and attempt to resolve complaints made
regarding the practices of any individual licensed to them the broker
and shall maintain, with respect to each individual licensed to them the
broker, a complaint file containing all material relating to any complaints
received in writing for a period of three years.�
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(d) Disclosure
of listed property information.� A
broker may allow any unlicensed person, who is authorized by the broker, to
disclose any factual information pertaining to the properties listed with the
broker, if the factual information is provided to the unlicensed person in
written form by the broker representing or assisting the seller(s).�
Sec. 77.� [82.52] ADVERTISING REQUIREMENTS.�
A licensee shall identify himself or herself as either
a broker or an agent salesperson in any advertising for the purchase, sale,
lease, exchange, mortgaging, transfer, or other disposition of real property,
whether the advertising pertains to the licensee's own property or the property
of others.
If a salesperson or broker is part of a team or group
within the brokerage, the licensee may include the team or group name in the
advertising only under the following conditions:
(1) the inclusion of the team or group name is
authorized by the primary broker of the brokerage to which the salesperson or
broker is licensed; and
(2) the real estate brokerage name is included and
more prominently displayed than the team or group name in the advertising.
Sec. 78.� [82.53] REAL ESTATE CLOSING AGENT
LICENSING.�
Subdivision 1.�
Generally.� The commissioner shall issue a license
as a closing agent to a person who qualifies for the license under the terms of
this chapter.
Subd. 2.�
Qualification of applicants.� An applicant for a real estate closing
agent license must be at least 18 years of age at the time of making
application for the license.
Subd. 3.�
Application for license;
contents.� (a) An applicant
for a real estate closing agent license shall make an application in the format
prescribed by the commissioner.� The
application must be accompanied by the license fee required by this chapter.
(b) An application for a real estate closing agent
license must contain the information required by the commissioner consistent
with this chapter.
(c) An application for a real estate closing agent
license shall give the applicant's legal name, age, residence address, and the
name and place of business of the closing agent.
(d) The commissioner may require further information
the commissioner considers appropriate to administer this chapter.
Subd. 4.�
Instruction.� An applicant for a real estate closing
agent's license must successfully complete a course of study relating to
closing services consisting of eight hours of instruction approved by the
commissioner.
Subd. 5.�
Change of application information.� The commissioner must be notified in
the format prescribed by the commissioner of a change of information contained
in the license application on file with the commissioner within ten days of the
change.
Subd. 6.�
Exemption.� The following persons, when acting as
closing agents, are exempt from the requirements of sections 82.41 and 82.50
unless otherwise required in this chapter:
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(1) a direct employee of a title insurance company
authorized to do business in this state, or a direct employee of a title
company, or a person who has an agency agreement with a title insurance company
or a title company in which the agent agrees to perform closing services on the
title insurance company's or title company's behalf and the title insurance
company or title company assumes responsibility for the actions of the agent as
if the agent were a direct employee of the title insurance company or title
company;
(2) a licensed attorney or a direct employee of a
licensed attorney;
(3) a licensed real estate broker or salesperson;
(4) a direct employee of a licensed real estate broker
if the broker maintains all funds received in connection with the closing
services in the broker's trust account;
(5) a bank, trust company, savings association, credit
union, industrial loan and thrift company, regulated lender under chapter 56,
public utility, or land mortgage or farm loan association organized under the
laws of this state or the United States, when engaged in the transaction of
businesses within the scope of its corporate powers as provided by law;
(6) a title insurance company authorized to do
business in this state; and
(7) a title company that has a contractual agency
relationship with a title insurance company authorized to do business in this
state, where the title insurance company assumes responsibility for the actions
of the title company and its employees or agents as if they were employees or
agents of the title insurance company.
Sec. 79.� [82.54] OTHER DISCLOSURE REQUIREMENTS.�
Subdivision 1.�
Agent of broker disclosure.� A salesperson shall only conduct
business under the licensed name of and on behalf of the broker to whom the
salesperson is licensed.� An individual
broker shall only conduct business under the brokerage's licensed name.� A broker licensed to a business entity shall
only conduct business under the licensed business entity name.� A licensee shall affirmatively disclose,
before the negotiation or consummation of any transaction, the licensed name of
the brokerage under whom the licensee is authorized to conduct business
according to this section.
Subd. 2.�
Financial interests or
relative or business associate disclosure; licensee.� (a) Before the negotiation or
consummation of any transaction, a licensee shall affirmatively disclose to the
owner of real property that the licensee is a real estate broker or agent
salesperson, and in what capacity the licensee is acting, if the licensee
directly, or indirectly through a third party, purchases for himself or herself
or acquires, or intends to acquire, any interest in, or any option to purchase,
the owner's property.
(b) When a principal in the transaction is a licensee
or a relative or business associate of the licensee, that fact must be
disclosed in writing.
Subd. 3.�
Material facts.� (a) A licensee shall disclose to a
prospective purchaser all material facts of which the licensee is aware, which
could adversely and significantly affect an ordinary purchaser's use or
enjoyment of the property, or any intended use of the property of which the
licensee is aware.
(b) It is not a material fact relating to real property
offered for sale the fact or suspicion that the property:
(1) is or was occupied by an owner or occupant who is
or was suspected to be infected with human immunodeficiency virus or diagnosed
with acquired immunodeficiency syndrome;
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(2) was the site of a suicide, accidental death,
natural death, or perceived paranormal activity; or
(3) is located in a neighborhood containing any adult
family home, community-based residential facility, or nursing home.
(c) A licensee or employee of the licensee has no duty
to disclose information regarding an offender who is required to register under
section 243.166, or about whom notification is made under that section, if the
broker or salesperson, in a timely manner, provides a written notice that
information about the predatory offender registry and persons registered with
the registry may be obtained by contacting local law enforcement where the
property is located or the Department of Corrections.
(d) A licensee or employee of the licensee has no duty
to disclose information regarding airport zoning regulations if the broker or
salesperson, in a timely manner, provides a written notice that a copy of the
airport zoning regulations as adopted can be reviewed or obtained at the office
of the county recorder where the zoned area is located.
(e) A licensee is not required to disclose, except as
otherwise provided in paragraph (f), information relating to the physical
condition of the property or any other information relating to the real estate
transaction, if a written report that discloses the information has been
prepared by a qualified third party and provided to the person.� For the purposes of this paragraph, "qualified
third party" means a federal, state, or local governmental agency, or any
person whom the broker, salesperson, or a party to the real estate transaction
reasonably believes has the expertise necessary to meet the industry standards
of practice for the type of inspection or investigation that has been conducted
by the third party in order to prepare the written report and who is acceptable
to the person to whom the disclosure is being made.
(f) A licensee shall disclose to the parties to a real
estate transaction any facts known by the broker or salesperson that contradict
any information included in a written report described in paragraph (e), if a
copy of the report is provided to the licensee.
(g) The limitation on disclosures in paragraphs (b) and
(c) shall modify any common law duties with respect to disclosure of material
facts.
Subd. 4.�
Nonperformance of party.� If a licensee is put on notice by a
party to a real estate transaction that the party will not perform according to
the terms of a purchase agreement or other similar written agreement to convey
real estate, the licensee shall immediately disclose the fact of that party's
intent not to perform to the other party or parties to the transaction.� The licensee shall, if reasonably possible,
inform the party who will not perform of the licensee's obligation to disclose
this fact to the other party or parties to the transaction before making the
disclosure.� The obligation required by
this section does not apply to notice of a party's inability to keep or fulfill
any contingency to which the real estate transaction has been made subject.
Sec. 80.�
Minnesota Statutes 2008, section 82B.05, as amended by Laws 2009,
chapter 63, section 62, is amended to read:
82B.05 REAL
ESTATE APPRAISER ADVISORY BOARD.�
Subdivision 1.� Members.�
The Real Estate Appraiser Advisory Board consists of 15 nine
members appointed by the commissioner of commerce.� Three of the members must be public
members, four must be consumers of appraisal services, of whom one
member must be employed in the financial lending industry, and eight
six must be real estate appraisers who are currently licensed in good
standing, of whom not less than two three members must be trainee
real property appraisers, licensed real property appraisers, or certified residential
real property appraisers, not less than two and three members
must be certified general real property appraisers, and not less than.� At least one member of the board
must be certified by the Appraisal Qualification Board of the Appraisal Foundation
to teach the Uniform Standards of Professional Appraisal Practice.� The board is governed by section 15.0575.
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Subd. 3.� Terms.�
The term of office for members is three years.
Upon expiration of their terms, members of the board
shall continue to hold office until the appointment and qualification of their
successors.� No person may serve as a
member of the board for more than two consecutive terms.� The commissioner may remove a member for
cause.
Subd. 4.�
Practice of public members
prohibited.� The public
members of the board may not be engaged in the practice of real estate appraising.
Subd. 5.� Conduct of meetings.� Places of regular board meetings must be
decided by the vote of members.� Written
notice must be given to each member of the time and place of each meeting of
the board at least ten days before the scheduled date of regular board
meetings.� The board shall establish
procedures for emergency board meetings and other operational procedures,
subject to the approval of the commissioner.
The members of the board shall elect a chair to
preside at board meetings, a vice-chair, and a secretary from among the
members to preside at board meetings.
A quorum of the board is eight five
members.
The board shall meet at least once every six three
months as determined by a majority vote of the members or a call of the
commissioner.
Subd. 6.� Compensation.� Each member of the board is entitled to a
per diem allowance of $35 for each meeting of the board at which the member is
present and for each day or substantial part of a day actually spent in the
conduct of the business of the board, plus all appropriate expenses unless a
greater amount is authorized by section 15.0575.�
Subd. 7.�
Enforcement reports.� The commissioner shall, on a regular
basis, provide the board with the commissioner's public enforcement data.
EFFECTIVE DATE.� This
section is effective January 1, 2011.
Sec. 81.�
Minnesota Statutes 2008, section 82B.06, is amended to read:
82B.06
POWERS OF THE BOARD.�
The board shall make recommendations to the
commissioner as the commissioner requests or at the board's own initiative
on:
(1) rules with respect to each category of licensed
real estate appraiser, the type of educational experience, appraisal
experience, and equivalent experience that will meet the requirements of this
chapter;
(2) examination specifications for each category of
licensed real estate appraiser, to assist in providing or obtaining appropriate
examination questions and answers, and procedures for grading examinations;
(3) rules with respect to each category of licensed
real estate appraiser, the continuing education requirements for the renewal of
licensing that will meet the requirements provided in this chapter;
(4) periodic review of the standards for the
development and communication of real estate appraisals provided in this
chapter and rules explaining and interpreting the standards; and
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(5) other matters necessary in carrying out the
provisions of this chapter.
EFFECTIVE
DATE.� This section is effective January
1, 2011.
Sec. 82.�
Minnesota Statutes 2008, section 82B.14, is amended to read:
82B.14
EXPERIENCE REQUIREMENT.�
(a) As a prerequisite for licensing as a licensed real
property appraiser, an applicant must present evidence satisfactory to the
commissioner that the person has obtained 2,000 hours of experience in real
property appraisal obtained in no fewer than 12 months.
As a prerequisite for licensing as a certified
residential real property appraiser, an applicant must present evidence
satisfactory to the commissioner that the person has obtained 2,500 hours of experience
in real property appraisal obtained in no fewer than 24 months.
As a prerequisite for licensing as a certified general
real property appraiser, an applicant must present evidence satisfactory to the
commissioner that the person has obtained 3,000 hours of experience in real
property appraisal obtained in no fewer than 30 months.� At least 50 percent, or 1,500 hours, must be
in nonresidential appraisal work.
(b) Each applicant for license under section 82B.11,
subdivision 3, 4, or 5, shall give under oath a detailed listing of the real
estate appraisal reports or file memoranda for which experience is claimed by
the applicant.� Upon request, the
applicant shall make available to the commissioner for examination, a sample of
appraisal reports that the applicant has prepared in the course of appraisal
practice.
(c) Notwithstanding section 45.22, a college or
university real estate course may be approved retroactively by the commissioner
for appraiser prelicense education credit if:
(1) the course was offered by a college or university
physically located in Minnesota;
(2) the college or university was an approved
education provider at the time the course was offered;
(3) the commissioner's approval is made to the same
extent in terms of courses and hours and with the same time limits as those
specified by the Appraiser Qualifications Board.�
(d) Applicants may not receive credit
for experience accumulated while unlicensed, if the experience is based on
activities which required a license under this section.
(d) (e) Experience for all
classifications must be obtained after January 30, 1989, and must be USPAP
compliant.
Sec. 83.�
Minnesota Statutes 2009 Supplement, section 137.0225, is amended to
read:
137.0225
UNIVERSITY PROMISE SCHOLARSHIP.�
The Board of Regents may establish a scholarship to
help offset the impact of rising tuition for Minnesota students from
middle-income families.� To be
eligible for a scholarship under this section, a student must be a Minnesota
resident undergraduate from a family that is not Pell Grant eligible
with an annual adjusted gross income not to exceed $100,000.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
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Sec. 84.� [137.66]
SCHOLARSHIP FUNDING PROGRAM.�
As a condition of a license
for an arena or stadium location under section 340A.404, subdivision 4a,
paragraph (a), clause (3), the University of Minnesota shall deposit at least
75 percent of the net revenue generated through the existence of this license
for scholarships under section 137.0225 for Minnesota resident men and women
attending the University of Minnesota.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 85.� Minnesota Statutes 2008, section 326.3382,
subdivision 3, is amended to read:
Subd. 3.� Proof
of insurance.� (a) No license may be
issued to a private detective or protective agent applicant until the applicant
has complied with the requirements in this subdivision.
(b) The applicant shall
execute a surety bond to the state of Minnesota in the penal sum of $10,000 and
file it with the board.� The surety bond
must be executed by a company authorized to do business in the state of
Minnesota, must name the applicant as principal, and must state that the
applicant and each of the applicant's employees shall faithfully observe all of
the laws of Minnesota and of the United States and shall pay all damages
suffered by any person by reason of a violation of law by the applicant or by
the commission of any willful and malicious wrong by the applicant in the
course of business.
(c) The applicant shall
furnish proof, acceptable to the board, of the applicant's ability to respond
in damages for liability on account of accidents or wrongdoings arising out of
the ownership and operation of a private detective or protective agent
business.� Compliance with paragraph (d),
(e), or (f) is satisfactory proof of financial responsibility for purposes of
this paragraph.
(d) The applicant may file
with the board a certificate of insurance demonstrating coverage for general
liability, completed operations, and personal injury.� Personal injury insurance must include
coverage for:
(1) false arrest, detention,
imprisonment, and malicious prosecution;
(2) libel, slander,
defamation, and violation of rights of privacy; and
(3) wrongful entry,
eviction, and other invasion of rights of private occupancy.
The certificate must provide
that the insurance may not be modified or canceled unless 30 days prior notice
is given to the board.� In the event of a policy
cancellation, the insurer will send notice to the board at the same time that a
cancellation request is received from or a notice is sent to the insured.
(e) The applicant may file
with the board an annual net worth statement, signed by a licensed certified
public accountant, evidencing that the applicant has a net worth of at least
the following:
(1) for an applicant with no
employees, $10,000;
(2) for an applicant with
one to ten employees, $15,000;
(3) for an applicant with 11
to 25 employees, $25,000;
(4) for an applicant with 26
to 50 employees, $50,000; or
(5) for an applicant with 51
or more employees, $100,000.
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Data indicating with which of the above requirements an
applicant must comply is public data.�
The contents of the net worth statement are private data on individuals
or nonpublic data, as defined in section 13.02.�
(f) The applicant may file with the board an
irrevocable letter of credit from a financial institution acceptable to the
board in the amount listed in the appropriate category in paragraph (e).
Sec. 86.�
Minnesota Statutes 2008, section 326B.33, subdivision 16, is amended to
read:
Subd. 16.� Insurance required.� Each contractor shall have and maintain
in effect general liability insurance, which includes premises and operations
insurance and products and completed operations insurance, with limits of at
least $100,000 per occurrence, $300,000 aggregate limit for bodily injury, and
property damage insurance with limits of at least $50,000 or a policy with a
single limit for bodily injury and property damage of $300,000 per occurrence
and $300,000 aggregate limits.� Such
insurance shall be written by an insurer licensed to do business in the state
of Minnesota and each contractor shall maintain on file with the commissioner a
certificate evidencing such insurance which provides that such insurance
shall not be canceled without the insurer first giving 15 days written notice
to the commissioner of such cancellation.�
In the event of a policy cancellation, the insurer shall send written
notice to the commissioner at the same time that a cancellation request is
received from or a notice is sent to the insured.
Sec. 87.�
Minnesota Statutes 2009 Supplement, section 326B.46, subdivision 2, is
amended to read:
Subd. 2.� Bond; insurance.� Any person contracting to do plumbing
work must give bond to the state in the amount of at least $25,000 for (1) all
plumbing work entered into within the state or (2) all plumbing work and
subsurface sewage treatment work entered into within the state.� If the bond is for both plumbing work and
subsurface sewage treatment work, the bond must comply with the requirements of
this section and section 115.56, subdivision 2, paragraph (e).� The bond shall be for the benefit of persons
injured or suffering financial loss by reason of failure to comply with the
requirements of the State Plumbing Code and, if the bond is for both plumbing
work and subsurface sewage treatment work, financial loss by reason of failure
to comply with the requirements of sections 115.55 and 115.56.� The bond shall be filed with the commissioner
and shall be written by a corporate surety licensed to do business in the
state.�
In addition, each applicant for a master plumber
license or restricted master plumber license, or renewal thereof, shall provide
evidence of public liability insurance, including products liability insurance
with limits of at least $50,000 per person and $100,000 per occurrence and
property damage insurance with limits of at least $10,000.� The insurance shall be written by an insurer
licensed to do business in the state of Minnesota and each licensed master
plumber shall maintain on file with the commissioner a certificate evidencing
the insurance providing that the insurance shall not be canceled without the
insurer first giving 15 days written notice to the commissioner.� The term of the insurance shall be concurrent
with the term of the license.� In
the event of a policy cancellation, the insurer shall send written notice to
the commissioner at the same time that a cancellation request is received from
or a notice is sent to the insured.
Sec. 88.�
Minnesota Statutes 2008, section 326B.46, is amended by adding a
subdivision to read:
Subd. 6.�
Well contractor exempt from
licensing and bond; conditions.� No
license, registration, or bond under sections 326B.42 to 326B.49 is required of
a well contractor or a limited well/boring contractor who is licensed and bonded
under section 103I.525 or 103I.531 and is engaged in the work or business of
installing (1) water service pipe from a well to a pressure tank or a
frost-free water hydrant with an antisiphon device which is located entirely
outside of a structure requiring potable water, or (2) a temporary shut-off
valve on a well water service pipe.� For
the purposes of this subdivision, "temporary" means a time period not
to exceed six months.� This subdivision
expires one year after the date of enactment.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
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Sec. 89.�
Minnesota Statutes 2008, section 326B.56, subdivision 2, is amended to
read:
Subd. 2.� Insurance.�
(a) Each applicant for a water conditioning contractor or installer
license or renewal thereof who is required by any political subdivision to
maintain insurance to obtain or maintain the license may comply with any
political subdivision's insurance requirement by maintaining the insurance
described in paragraph (b).� No applicant
for a water conditioning contractor or installer license who maintains the
insurance described in paragraph (b) shall be otherwise required to meet the
insurance requirements of any political subdivision.
(b) The insurance shall provide coverage, including
products liability coverage, for all damages in connection with licensed work
for which the licensee is liable, with personal damage limits of at least
$50,000 per person and $100,000 per occurrence and property damage insurance
with limits of at least $10,000.� The
insurance shall be written by an insurer licensed to do business in this state
and a certificate evidencing the insurance shall be filed with the
commissioner.� The insurance must remain
in effect at all times while the application is pending and while the license
is in effect.� The insurance shall not
be canceled without the insurer first giving 15 days' written notice to the
commissioner.� In the event of a
policy cancellation, the insurer shall send written notice to the commissioner
at the same time that a cancellation request is received from or a notice is
sent to the insured.
Sec. 90.�
Minnesota Statutes 2008, section 326B.86, subdivision 2, is amended to
read:
Subd. 2.� Insurance.�
Each licensee shall have and maintain in effect commercial general
liability insurance, which includes premises and operations insurance and products
and completed operations insurance, with limits of at least $100,000 per
occurrence, $300,000 aggregate limit for bodily injury, and property damage
insurance with limits of at least $25,000 or a policy with a single limit for
bodily injury and property damage of $300,000 per occurrence and $300,000
aggregate limits.� The insurance must be
written by an insurer licensed to do business in this state.� Each licensee shall maintain on file with the
commissioner a certificate evidencing the insurance which provides that the
insurance shall not be canceled without the insurer first giving 15 days'
written notice of cancellation to the commissioner.� In the event of a policy cancellation, the
insurer shall send written notice to the commissioner at the same time that a
cancellation request is received from or a notice is sent to the insured.� The commissioner may increase the minimum
amount of insurance required for any licensee or class of licensees if the
commissioner considers it to be in the public interest and necessary to protect
the interests of Minnesota consumers.
Sec. 91.�
Minnesota Statutes 2008, section 326B.921, subdivision 6, is amended to
read:
Subd. 6.� Insurance.�
In addition to the bond described in subdivision 5, each applicant
for a high pressure pipefitting business license or renewal shall have in force
public liability insurance, including products liability insurance, with limits
of at least $100,000 per person and $300,000 per occurrence and property damage
insurance with limits of at least $50,000.
The insurance must be kept in force for the entire
term of the high pressure pipefitting business license, and the license shall
be suspended by the department if at any time the insurance is not in force.
The insurance must be written by an insurer licensed
to do business in the state and shall be in lieu of any other insurance
required by any subdivision of government for high pressure pipefitting.� Each person holding a high pressure
pipefitting business license shall maintain on file with the department a
certificate evidencing the insurance.� Any
purported cancellation of insurance shall not be effective without the insurer
first giving 30 days' written notice to the department.� In the event of a policy cancellation, the
insurer shall send written notice to the commissioner at the same time that a
cancellation request is received from or a notice is sent to the insured.
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Sec. 92.�
Minnesota Statutes 2008, section 327B.04, subdivision 4, is amended to
read:
Subd. 4.� License prerequisites.� No application shall be granted nor
license issued until the applicant proves to the commissioner that:�
(a) the applicant has a permanent, established place
of business at each licensed location.�
An "established place of business" means a permanent enclosed
building other than a residence, or a commercial office space, either owned by
the applicant or leased by the applicant for a term of at least one year,
located in an area where zoning regulations allow commercial activity, and
where the books, records and files necessary to conduct the business are kept
and maintained.� The owner of a licensed manufactured
home park who resides in or adjacent to the park may use the residence as the
established place of business required by this subdivision, unless prohibited
by local zoning ordinance.�
If a license is granted, the licensee may use
unimproved lots and premises for sale, storage, and display of manufactured
homes, if the licensee first notifies the commissioner in writing;
(b) if the applicant desires to sell, solicit or
advertise the sale of new manufactured homes, it has a bona fide contract or
franchise in effect with a manufacturer or distributor of the new manufactured
home it proposes to deal in;
(c) the applicant has secured:� (1) a surety bond in the amount of $20,000 for
each agency and each subagency location that bears the applicant's name and the
name under which the applicant will be licensed and do business in this
state.� Each bond is for the protection
of consumer customers, and must be executed by the applicant as principal and
issued by a surety company admitted to do business in this state.� Each bond shall be exclusively for the
purpose of reimbursing consumer customers and shall be conditioned upon the
faithful compliance by the applicant with all of the laws and rules of this
state pertaining to the applicant's business as a dealer or manufacturer,
including sections 325D.44, 325F.67 and 325F.69, and upon the applicant's
faithful performance of all its legal obligations to consumer customers; and
(2) a certificate of liability insurance in the amount of $1,000,000 that
provides aggregate coverage for the agency and each subagency location.� In the event of a policy cancellation, the
insurer shall send written notice to the commissioner at the same time that a
cancellation request is received from or a notice is sent to the insured;
(d) the applicant has established a trust account as
required by section 327B.08, subdivision 3, unless the applicant states in
writing its intention to limit its business to selling, offering for sale,
soliciting or advertising the sale of new manufactured homes; and
(e) the applicant has provided evidence of having had
at least two years' prior experience in the sale of manufactured homes, working
for a licensed dealer.�
Sec. 93.� [332.3351] EXEMPTION FROM LICENSURE.�
A collection agency shall be exempt from the licensing
and registration requirements of this chapter if all of the following
conditions are met:
(1) the agency is located in another state that
regulates and licenses collection agencies, but does not require a Minnesota
collection agency to obtain a license to collect debts in their state if the
agency's collection activities are limited in the same manner;
(2) the agency's collection activities are limited to collecting
debts not incurred in this state from consumers located in this state; and
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13178
(3) the agency's collection activities in Minnesota
are conducted by means of interstate communications, including telephone, mail,
electronic mail, or facsimile transmission.
EFFECTIVE
DATE.� This section is effective January
1, 2011.
Sec. 94.�
Minnesota Statutes 2008, section 332.34, is amended to read:
332.34
BOND.�
The commissioner of commerce shall require each
collection agency licensee to annually file and maintain in force a
corporate surety bond, in a form to be prescribed by, and acceptable to, the commissioner,
and in a sum of at least $20,000 $50,000 plus an additional $5,000
for each $100,000 received by the collection agency from debtors located in
Minnesota during the previous calendar year, less commissions earned by the
collection agency on those collections for the previous calendar year.� The total amount of the bond shall not exceed
$100,000.� A collection agency may
deposit cash in and with a depository acceptable to the commissioner in an amount
and in the manner prescribed and approved by the commissioner in lieu of a
bond.
EFFECTIVE
DATE.� This section is effective for bonds
obtained or renewed after January 1, 2011.
Sec. 95.�
Minnesota Statutes 2009 Supplement, section 340A.404, subdivision 4a, is
amended to read:
Subd. 4a.� Publicly owned recreation; entertainment
facilities.� (a) Notwithstanding any
other law, local ordinance, or charter provision, the commissioner may issue
on-sale intoxicating liquor licenses:
(1) to the state agency administratively responsible
for, or to an entity holding a concession or facility management contract with
such agency for beverage sales at, the premises of any Giants Ridge Recreation
Area building or recreational improvement area owned by the state in the city
of Biwabik, St. Louis County;
(2) to the state agency administratively responsible
for, or to an entity holding a concession or facility management contract with
such agency for beverage sales at, the premises of any Ironworld Discovery
Center building or facility owned by the state at Chisholm;
(3) to the Board of Regents of the University of
Minnesota for events at Northrop Auditorium, the intercollegiate football
stadium, or at no more than seven other locations within the boundaries of the University
of Minnesota, provided that the Board of Regents has approved an application
for a license for the specified location and provided that a license for an
arena or stadium location is void unless it requires the sale or service of
intoxicating liquor throughout the arena or stadium if intoxicating liquor
is sold or served anywhere in the arena or stadium in a public portion
consisting of at least one-third of the general seating of a stadium or
arena.� It is solely within the
discretion of the Board of Regents to choose the manner in which to carry out
this condition; and
(4) to the Duluth Entertainment and Convention Center
Authority for beverage sales on the premises of the Duluth Entertainment and
Convention Center Arena during intercollegiate hockey games.
The commissioner shall charge a fee for licenses
issued under this subdivision in an amount comparable to the fee for comparable
licenses issued in surrounding cities.
(b) No alcoholic beverage may be sold or served at TCF
Bank Stadium unless the Board of Regents holds an on-sale intoxicating liquor
license for the stadium as provided in paragraph (a), clause (3).
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13179
Sec. 96.�
Minnesota Statutes 2008, section 340A.409, subdivision 1, is amended to
read:
Subdivision 1.� Insurance required.� (a) No retail license may be issued,
maintained or renewed unless the applicant demonstrates proof of financial
responsibility with regard to liability imposed by section 340A.801.� The issuing authority must submit to the
commissioner the applicant's proof of financial responsibility.� This subdivision does not prohibit a local
unit of government from requiring higher insurance or bond coverages, or a
larger deposit of cash or securities.�
The minimum requirement for proof of financial responsibility may be
given by filing:�
(1) a certificate that there is in effect for the
license period an insurance policy issued by an insurer required to be licensed
under section 60A.07, subdivision 4, or by an insurer recognized as an eligible
surplus lines carrier pursuant to section 60A.206 or pool providing at least
$50,000 of coverage because of bodily injury to any one person in any one
occurrence, $100,000 because of bodily injury to two or more persons in any one
occurrence, $10,000 because of injury to or destruction of property of others in
any one occurrence, $50,000 for loss of means of support of any one person in
any one occurrence, and $100,000 for loss of means of support of two or more
persons in any one occurrence;
(2) a bond of a surety company with minimum coverages
as provided in clause (1); or
(3) a certificate of the commissioner of management
and budget that the licensee has deposited with the commissioner of management
and budget $100,000 in cash or securities which may legally be purchased by
savings banks or for trust funds having a market value of $100,000.
(b) This subdivision does not prohibit
an insurer from providing the coverage required by this subdivision in
combination with other insurance coverage.
(c) An annual aggregate policy limit
for dram shop insurance of not less than $300,000 per policy year may be
included in the policy provisions.
(d) A liability insurance policy
required by this section must provide that it may not be canceled for:
(1) any cause, except for nonpayment of premium, by
either the insured or the insurer unless the canceling party has first given 30
60 days' notice in writing to the issuing authority insured
of intent to cancel the policy; and
(2) nonpayment of premium unless the canceling party
has first given ten days' notice in writing to the issuing authority insured
of intent to cancel the policy.; and
(3) in the event of a policy cancellation, the insurer
will send notice to the issuing authority at the same time that a cancellation
request is received from or a notice is sent to the insured.
Sec. 97.�
Minnesota Statutes 2008, section 471.61, subdivision 2b, is amended to
read:
Subd. 2b.� Insurance continuation.� A unit of local government must allow a
former employee and the employee's dependents to continue to participate indefinitely
in the employer-sponsored hospital, medical, and dental insurance group that
the employee participated in immediately before retirement, under the following
conditions:
(a) The continuation requirement of this subdivision
applies only to a former employee who is receiving a disability benefit or an
annuity from a Minnesota public pension plan other than a volunteer firefighter
plan, or who has met age and service requirements necessary to receive an
annuity from such a plan.
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13180
(b) Until the former
employee reaches age 65, the former employee and dependents must be pooled in
the same group as active employees for purposes of establishing premiums and
coverage for hospital, medical, and dental insurance.� However, a former employee under the age
of 65 who is enrolled in Medicare Parts A and B due to the former employee's
disability and for whom Medicare's obligation to pay claims is primary, and the
former employee's dependents, must be pooled in the same group for purposes of
this paragraph as former employees who have reached age 65.
(c) A former employee may
receive dependent coverage only if the employee received dependent coverage
immediately before leaving employment.�
This subdivision does not require dependent coverage to continue after
the death of the former employee.� For
purposes of this subdivision, "dependent" has the same meaning for
former employees as it does for active employees in the unit of local
government.
(d) Coverage for a former
employee and dependents may not discriminate on the basis of evidence of
insurability or preexisting conditions
unless identical conditions are imposed on active employees in the group that
the employee left.
(e) The former employee must
pay the entire premium for continuation coverage, except as otherwise provided
in a collective bargaining agreement or personnel policy.� A unit of local government may discontinue
coverage if a former employee fails to pay the premium within the deadline
provided for payment of premiums under federal law governing insurance
continuation.
(f) An employer must notify
an employee before termination of employment of the options available under
this subdivision, and of the deadline for electing to continue to participate.
(g) A former employee must
notify the employer of intent to participate within the deadline provided for
notice of insurance continuation under federal law.� A former employee who does not elect to
continue participation does not have a right to reenter the employer's group
insurance program.
(h) A former employee who
initially selects dependent coverage may later drop dependent coverage while
retaining individual coverage.� A former
employee may not drop individual coverage and retain dependent coverage.
(i) This subdivision does
not limit rights granted to former employees under other state or federal law,
or under collective bargaining agreements or personnel plans.
(j) Unless otherwise
provided by a collective bargaining agreement, if retired employees were not
permitted to remain in the active employee group prior to August 1, 1992, a
public employer may assess active employees through payroll deduction for all
or part of the additional premium costs from the inclusion of retired employees
in the active employee group.� This
paragraph does not apply to employees covered by section 179A.03, subdivision
7.�
(k) Notwithstanding section
179A.20, subdivision 2a, insurance continuation under this subdivision may be
provided for in a collective bargaining agreement or personnel policy.�
EFFECTIVE DATE.� This section is effective August 1, 2010, and
applies to coverage in existence on or after that date.
Sec. 98.� Minnesota Statutes 2008, section 514.20, is
amended to read:
514.20 SALE.�
If any sum secured by such
lien be not paid within 90 days after it becomes due, the lienholder may sell
the property and out of the proceeds of such sale there shall be paid, first,
the disbursements aforesaid; second, all charges against the property paid by
such person to any other person; and, third, the total indebtedness then
secured
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13181
by the lien.� The remainder, if any, shall be paid on
demand to the owner or other person entitled thereto.� If the property subject to the lien is a
motor vehicle registered in this state and subject to a certificate of title,
then the lienholder must provide written notice, by registered certified
mail, to all secured creditors listed on the certificate of title 45 days
before the lienholder's right to sell the motor vehicle is considered
effective.� The notice must state the
name, address, and telephone number of the lienholder, the amount of money
owed, and the rate at which storage charges, if any, are accruing.� Costs for registered certified
mail and other reasonable costs related to complying with this notice provision
constitute "lawful charges" pursuant to section 514.19.� Failure to comply with the notice provision
in this section renders any lien created by this chapter ineffective against
any secured party listed on the certificate of title of the motor vehicle
involved.�
EFFECTIVE DATE.� This section is effective the day following final
enactment, and applies to notices mailed on or after that date, provided
however that it is also permissible to send notices under this section by
registered mail prior to August 1, 2010, and the costs of those notices are
lawful charges under this section.
Sec. 99.� Laws 2007, chapter 147, article 12, section
14, is amended to read:
Sec. 14.� AGRICULTURAL
COOPERATIVE HEALTH PLAN FOR FARMERS.�
Subdivision 1.� Pilot
project requirements.� Notwithstanding
contrary provisions of Minnesota Statutes, chapter 62H, the following apply to
a joint self-insurance pilot project administered by a trust sponsored by one
or more agricultural cooperatives organized under Minnesota Statutes, chapter
308A or 308B, or under a federal charter for the purpose of offering
health coverage to members of the cooperatives and their families, provided the
project satisfies the other requirements of Minnesota Statutes, chapter 62H:
(1) Minnesota Statutes,
section 62H.02, paragraph (b), does not apply;
(2) the notice period
required under Minnesota Statutes, section 62H.02, paragraph (e), is 90 days;
(3) a joint self-insurance
plan may elect to treat the sale of a health plan to or for an employer that
has only one eligible employee who has not waived coverage as the sale of an
individual health plan as allowed under Minnesota Statutes, section 62L.02,
subdivision 26;
(4) Minnesota Statutes,
section 297I.05, subdivision 12, paragraph (c), applies; and
(5) the trust must pay the
assessment for the Minnesota Comprehensive Health Association as provided under
Minnesota Statutes, section 62E.11.
Subd. 2.� Evaluation
and renewal.� The pilot project
authorized under this section is for a period of four years from the date of
initial enrollment.� The commissioner of
commerce shall grant an extension of four additional years if the trust
provides evidence that it remains in compliance with the requirements of this
section and other applicable laws and rules.�
If the commissioner determines that the operation of the trust has not
improved access, expanded health plan choices, or improved the affordability of
health coverage for farm families, or that it has significantly damaged access,
choice, or affordability for other consumers not enrolled in the trust, the
commissioner shall provide at least 180 days' advance written notice to the
trust and to the chairs of the senate and house finance and policy committees
with jurisdiction over health and insurance of the commissioner's intention not
to renew the pilot project at the expiration of a four-year period.
Subd. 3.� Use
of surplus lines.� Plans
created under this section may use surplus lines carriers to fulfill its
obligations under Minnesota Statutes, chapter 62H.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Journal of the House - 106th Day -
Saturday, May 15, 2010 - Top of Page 13182
Sec. 100.� ON-SALE
LICENSE; THEATRE L'HOMME DIEU.�
Notwithstanding any law, ordinance, or charter
provision to the contrary, Douglas County may issue a wine and intoxicating
malt liquor license to Theatre L'Homme Dieu.�
The license authorizes sales on all days of the week to holders of
tickets for performances presented by the theater and to members of the
nonprofit corporations holding the license and to their guests.
EFFECTIVE
DATE.� This section is effective upon
approval by the licensing authority in the manner specified by Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
Sec. 101.� 2011 APPOINTMENTS TO REAL ESTATE
APPRAISER ADVISORY BOARD.�
The terms of all members of the Real Estate Appraiser
Advisory Board expire the effective date of this section.� The commissioner of commerce shall, as soon
as practicable after this date, appoint members to an initial term of office as
follows:� three years for one consumer of
appraisal services member, one certified residential real property appraiser
member, and one certified general real property appraiser member; two years for
one consumer of appraisal services member, one certified residential real
property appraiser member, and one certified general real property appraiser
member; and one year for one consumer of appraisal services member, one
certified residential real property appraiser member, and one certified general
real property appraiser member.
Upon the expiration of the term of office established in
this section, the successor must be appointed pursuant to Minnesota Statutes,
section 82B.05.
All provisions of Minnesota Statutes, section 82B.05,
not inconsistent with this section apply to the initial board appointed
pursuant to this section.
EFFECTIVE
DATE.� This section is effective January 1,
2011.
Sec. 102.� COORDINATION OF BENEFITS STUDY.�
The commissioner of commerce, in consultation with the
commissioner of health and health plan companies, shall consider the
appropriateness of adopting the National Association of Insurance Commissioners
2005 Coordination of Benefits Model Regulation.�
The commissioner shall submit recommendations and draft legislation, if
any, needed to implement the recommendations, to the legislature by January 15,
2011.
Sec. 103.� SAUK RAPIDS; ON-SALE LICENSE.�
Notwithstanding any other law, ordinance, or charter
provision to the contrary, the city of Sauk Rapids may issue an on-sale
intoxicating liquor license, or an on-sale 3.2 percent malt liquor license, to
the owner of an arena located on the Benton County Fairgrounds or to an entity
holding a concession contract with the owner for use on the premises of that
arena.� Any license authorized by this
section may be issued for space that is not compact or contiguous, provided
that all of the space is within the boundaries of the arena and is included in
the description of the licensed premises on the approved license
application.� A license issued under this
section authorizes sales on all days of the week to persons attending
activities or events at the arena.� All
other provisions of Minnesota Statutes, chapter 340A not inconsistent with this
section apply to the license authorized under this section.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 104.� REPEALER.�
Minnesota Statutes 2008, sections 82.19, subdivision 3;
82.22, subdivisions 1, 6, 7, 8, and 9; 82.31, subdivision 6; 82.34, subdivision
16; 82.41, subdivisions 3 and 7; 332.31, subdivision 7; and 332.335, are repealed.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13183
Minnesota Statutes 2009 Supplement, section 65B.133,
subdivision 3; and 72B.02, subdivision 11, are repealed.
Minnesota Statutes 2008, section 72B.04, is repealed
effective July 1, 2010.
Minnesota Statutes 2008, section 62L.056, is repealed
effective January 1, 2012."
Delete the title and insert:
"A bill for an act relating to state government; regulating
various licensees and other entities; regulating various insurance coverages
and practices; modifying definitions, informational requirements, continuing
education requirements, information reporting requirements, and notice
requirements; making various housekeeping, technical, and clarifying changes;
authorizing certain flexible benefit health plans; regulating insurance
continuation provisions for local government employees; regulating securities;
reorganizing and modifying various provisions relating to real estate brokers,
salespersons, and closing agents; modifying the membership requirements of, and
appointment authority to, the real estate appraiser advisory board; regulating
certain workers' compensation self-insurers; modifying the eligibility criteria
for a University Promise Scholarship; authorizing and conditioning the issuance
of certain on-sale liquor licenses; modifying certain lien notices; requiring a
certain study; amending Minnesota Statutes 2008, sections 45.0112; 60A.031, subdivision
4; 60A.084; 60A.204; 60A.36, by adding a subdivision; 60K.31, subdivision 10;
61A.092, subdivision 3; 62A.046, subdivision 6, by adding a subdivision;
62A.17, subdivision 5; 62A.3099, subdivision 17; 62A.65, subdivision 2; 62E.02,
subdivision 15; 62E.14, subdivision 4c; 62L.05, subdivision 4; 62S.24,
subdivision 8; 62S.266, subdivision 4; 62S.29, subdivision 1; 72A.08,
subdivision 4; 72A.12, subdivision 4; 72A.20, subdivisions 10, 36, 37; 72A.492,
subdivision 2; 72A.51, subdivision 2; 72B.01; 72B.08, subdivision 8; 79A.03,
subdivision 8; 79A.06, subdivision 5; 79A.21, subdivision 3; 80A.41; 80A.46;
80A.65, subdivision 6; 82.17, subdivision 15, by adding subdivisions; 82.19;
82.21, subdivision 2; 82.24, subdivision 3; 82.29, subdivisions 4, 5, 8; 82.31,
subdivisions 1, 2; 82.33, subdivisions 1, 2, by adding a subdivision; 82.34,
subdivisions 1, 2, 4, 5, 13; 82.39; 82.41, subdivisions 1, 2, by adding a
subdivision; 82.45, subdivision 3, by adding subdivisions; 82.48, subdivisions
2, 3; 82B.05, as amended; 82B.06; 82B.14; 326.3382, subdivision 3; 326B.33,
subdivision 16; 326B.46, by adding a subdivision; 326B.56, subdivision 2;
326B.86, subdivision 2; 326B.921, subdivision 6; 327B.04, subdivision 4;
332.34; 340A.409, subdivision 1; 471.61, subdivision 2b; 514.20; Minnesota
Statutes 2009 Supplement, sections 45.027, subdivision 1; 45.30, subdivision 4;
60A.39, subdivisions 1, 4, 5; 60A.9572, subdivision 6; 60K.361; 62A.3099,
subdivision 18; 65A.29, subdivision 13; 72B.03, subdivision 2; 72B.045,
subdivision 1; 72B.06; 82.31, subdivision 4; 82.32; 137.0225; 326B.46,
subdivision 2; 340A.404, subdivision 4a; Laws 2007, chapter 147, article 12,
section 14; proposing coding for new law in Minnesota Statutes, chapters 62L;
82; 137; 332; repealing Minnesota Statutes 2008, sections 62L.056; 72B.04;
82.19, subdivision 3; 82.22, subdivisions 1, 6, 7, 8, 9; 82.31, subdivision 6;
82.34, subdivision 16; 82.41, subdivisions 3, 7; 332.31, subdivision 7;
332.335; Minnesota Statutes 2009 Supplement, sections 65B.133, subdivision 3;
72B.02, subdivision 11."
We request the adoption of this report and repassage of the
bill.
Senate Conferees:�
Linda Scheid, Sandra Pappas
and Geoff Michel.
House Conferees:�
Joe Atkins, Leon Lillie and Joe Hoppe.
����� Atkins moved that the report of the
Conference Committee on S. F. No. 2839 be adopted and that the
bill be repassed as amended by the Conference Committee.� The motion prevailed.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13184
S. F. No. 2839,
A bill for an act relating to commerce; regulating various licensees and other
entities; modifying definitions, informational requirements, continuing
education requirements, information reporting requirements, and notice
requirements; making various housekeeping, technical, and clarifying changes;
regulating securities; reorganizing and modifying various provisions relating
to real estate brokers, salespersons, and closing agents; modifying the membership
requirements of, and appointment authority to, the real estate appraiser
advisory board; regulating certain workers' compensation self-insurers;
amending Minnesota Statutes 2008, sections 45.0112; 60A.031, subdivision 4;
60A.084; 60A.204; 60A.36, by adding a subdivision; 60K.31, subdivision 10;
61A.092, subdivision 3; 62A.046, subdivision 6, by adding a subdivision;
62A.17, subdivision 5; 62A.3099, subdivision 17; 62A.65, subdivision 2; 62E.02,
subdivision 15; 62E.14, subdivision 4c; 62L.05, subdivision 4; 62S.24,
subdivision 8; 62S.266, subdivision 4; 62S.29, subdivision 1; 72A.08,
subdivision 4; 72A.12, subdivision 4; 72A.20, subdivisions 10, 36, 37; 72A.492,
subdivision 2; 72A.51, subdivision 2; 72B.01; 72B.08, subdivision 8; 79A.03,
subdivision 8; 79A.06, subdivision 5; 79A.21, subdivision 3; 80A.41; 80A.46;
80A.65, subdivision 6; 82.17, subdivision 15, by adding subdivisions; 82.19;
82.21, subdivision 2; 82.24, subdivision 3; 82.29, subdivisions 4, 5, 8; 82.31,
subdivisions 1, 2; 82.33, subdivisions 1, 2, by adding a subdivision; 82.34,
subdivisions 1, 2, 4, 5, 13; 82.39; 82.41, subdivisions 1, 2, by adding a
subdivision; 82.45, subdivision 3, by adding subdivisions; 82.48, subdivisions
2, 3; 82B.05, as amended; 82B.06; 82B.14; 326.3382, subdivision 3; 326B.33,
subdivision 16; 326B.56, subdivision 2; 326B.86, subdivision 2; 326B.921,
subdivision 6; 327B.04, subdivision 4; 332.34; 340A.409, subdivision 1;
Minnesota Statutes 2009 Supplement, sections 45.027, subdivision 1; 45.30,
subdivision 4; 60A.39, subdivisions 1, 4, 5; 60A.9572, subdivision 6; 60K.361;
62A.3099, subdivision 18; 65A.29, subdivision 13; 72B.03, subdivision 2;
72B.045, subdivision 1; 72B.06; 82.31, subdivision 4; 82.32; 326B.46,
subdivision 2; Laws 2007, chapter 147, article 12, section 14; proposing coding
for new law in Minnesota Statutes, chapters 82; 332; repealing Minnesota
Statutes 2008, sections 72B.04; 82.19, subdivision 3; 82.22, subdivisions 1, 6,
7, 8, 9; 82.31, subdivision 6; 82.34, subdivision 16; 82.41, subdivisions 3, 7;
332.31, subdivision 7; 332.335; Minnesota Statutes 2009 Supplement, sections
65B.133, subdivision 3; 72B.02, subdivision 11.
����� The bill was read for the third time, as
amended by Conference, and placed upon its repassage.
����� The question was taken on the repassage of
the bill and the roll was called.� There
were 124 yeas and 4 nays as follows:
����� Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Hayden
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13185
����� Those who voted in the negative were:
Dettmer
Eastlund
Loeffler
Murphy, E.
����� The bill was repassed, as amended by
Conference, and its title agreed to.
Madam
Speaker:�
����� I hereby announce the passage by the
Senate of the following House File, herewith returned, as amended by the Senate,
in which amendments the concurrence of the House is respectfully
requested:�
����� H. F. No. 2859, A bill for
an act relating to human services; modifying a nursing facility rate provision;
amending Minnesota Statutes 2008, section 256B.431, subdivision 35.
Colleen J. Pacheco, First
Assistant Secretary of the Senate
����� Simon moved that the House refuse to
concur in the Senate amendments to H. F. No. 2859, that the
Speaker appoint a Conference Committee of 3 members of the House, and that the House
requests that a like committee be appointed by the Senate to confer on the
disagreeing votes of the two houses.� The
motion prevailed.
CALENDAR FOR THE DAY
����� S. F. No. 1778, A
resolution memorializing the Congress of the United States to oppose enactment
of legislation of the substance and tenor of S. 40/H.R. 3200 � the National
Insurance Act of 2007 � proposed optional federal charter legislation.
����� The bill was read for the third time and
placed upon its final passage.
����� The question was taken on the passage of
the bill and the roll was called.� There
were 94 yeas and 0 nays as follows:
����� Those who voted in the affirmative were:
Anderson, P.
Anzelc
Atkins
Beard
Benson
Bigham
Brod
Brynaert
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dill
Dittrich
Doty
Downey
Eken
Falk
Fritz
Gottwalt
Greiling
Hackbarth
Hamilton
Hausman
Haws
Hayden
Hilty
Hoppe
Hornstein
Hortman
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kiffmeyer
Knuth
Koenen
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mahoney
Mariani
Marquart
Masin
McNamara
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Persell
Peterson
Reinert
Rosenthal
Ruud
Sailer
Scalze
Seifert
Sertich
Journal of the
House - 106th Day - Saturday, May 15, 2010 - Top of Page 13186
Simon
Slawik
Smith
Solberg
Sterner
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
����� The bill was passed and its title agreed to.
����� There being no objection, the order of business reverted to
Reports of Standing Committees and Divisions.
REPORTS OF
STANDING COMMITTEES AND DIVISIONS
Sertich from the Committee
on Rules and Legislative Administration to which was referred:
H. F. No. 3787,
A bill for an act relating to legislative enactments; correcting miscellaneous
oversights, inconsistencies, ambiguities, unintended results, and technical errors;
amending Minnesota Statutes 2008, section 245A.18, subdivision 2.
Reported the same back with
the following amendments:
Page 2, after line 7,
insert:
"Sec. 2.� Laws 2010, chapter 189, section 21,
subdivision 4, is amended to read:
����� Subd. 4.� Redevelopment Account ����������������������������������������������������������������������������������������������������������������������� 5,000,000
For purposes of the redevelopment account under
Minnesota Statutes, sections 116J.571 to 116J.575.
$2,000,000 is for a grant to the city of Lake
Elmo.� $1,000,000 must be used to design
and construct an expansion of the city's water pumping, storage, and
distribution system to provide approximately 1,000 additional service hookups
and replace a city well lost to contamination by perfluorochemicals
(PFC's).� $1,000,000 must be used to design
and construct the extension of a 16-inch sanitary sewer force main from the
Metropolitan Council interceptor on Interstate Highway 94 to 30th Street to the
proposed southern edge of the Lake Elmo Village area.� This appropriation is not available until the
council commissioner has determined that at least an equal amount
has been committed to the project from nonstate sources.
Notwithstanding Minnesota Statutes, section 16A.642,
grant number RDGP-06-0007-0-FY07, awarded in September 2006 to the city of
Tower from an appropriation to the redevelopment account in Laws 2005, chapter 20, article 1, section 23, subdivision 11,
is available until June 30, 2013.
Sec. 3.� Minnesota Statutes 2008, section 160.21,
subdivision 6, as added by Laws 2010, chapter 279, section 1, is amended to
read:
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13187
Subd. 6.� Uncompleted
subdivisions.� (a) A road authority,
including a statutory or home rule charter city, may remove snow from unopened
or private roads in uncompleted subdivisions containing five or more lots, upon
adoption of an annual resolution finding that the subdivision developer, due to
general insolvency or pending foreclosure, is unable to maintain the roads and
that public safety may be jeopardized if the access of school buses, public
works vehicles, or authorized emergency vehicles, as defined in section
169.011, subdivision 3, is obstructed.�
Snow removal activities are limited to streets reasonably necessary for
access by these buses or vehicles.
(b) Snow
removal under this subdivision does not constitute:
(1)
acceptance of the road from the developer by the road authority for public use;
(2) the
opening of the road to public use; nor
(3) a use,
repair, or maintenance of the road sufficient for the purposes of dedication of
roads under section 160.05.
(c) The road
authority may impose a reasonable and proportionate charge on all properties
within the subdivision for services provided under this subdivision.� These charges, if unpaid, may constitute a
lien upon the properties within the subdivision and may be collected as a
special assessment as provided by section 492.101 429.101 or
by charter.
(d) Where a
road has been maintained pursuant to this subdivision, the road authority with
jurisdiction over the road, and its officers and employees, are exempt from
liability for any tort claim for injury to person or property arising from
plowing, maintaining, or otherwise working on the road and from traveling on
the road and related to its maintenance or condition.� This paragraph does not apply to a claim for
injury that is affirmatively caused by a negligent act of the road authority or
its officers and employees.
(e) This
subdivision expires May 2, 2013.
Sec. 4.� Minnesota Statutes 2008, section 118A.05,
subdivision 3, as amended by Laws 2010, chapter 234, section 1, is amended to
read:
Subd. 3.� Securities
lending agreements.� Securities
lending agreements, including custody agreements, may be entered into with a
financial institution meeting the qualifications of subdivision 2, clause (1)
or (2), and having a bank an office located in Minnesota.� Securities lending transactions may be
entered into with entities meeting the qualifications of subdivision 2 and the
collateral for such transactions shall be restricted to the securities
described in this section and section 118A.04.�
Sec. 5.� Minnesota Statutes
2008, section 332.70, subdivision 3, as amended by Laws 2010, chapter 240,
section 3, is amended to read:
Subd. 3.� Correction
and deletion of records.� (a) If the
completeness or accuracy of a criminal record maintained by a business
screening service is disputed by the individual who is the subject of the
record, the screening service shall, without charge, investigate the disputed
record.� In conducting an investigation,
the business screening service shall review and consider all relevant
information submitted by the subject of the record with respect to the disputed
record to determine whether the record maintained by the screening service
accurately reflects the content of the official record, as maintained by the
official government custodian.
(b) If, upon
investigation, the screening service determines that the record does not accurately
reflect the content of the official record, the screening service shall correct
the disputed record so as to accurately reflect the content of the official
record.� If the disputed record is found
to be sealed, expunged, or the subject of a pardon, the business screening
service shall promptly delete the record.�
A business screening service that complies with this subdivision is
not in violation of this section.
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(c) A business screening
service may terminate an investigation of a disputed record if the business
screening agency reasonably determines that the dispute is frivolous, which may
be based on the failure of the subject of the record to provide sufficient
information to investigate the disputed record.�
Upon making a determination that the dispute is frivolous, the business
screening service shall inform the subject of the record of the specific
reasons why it has determined that the dispute is frivolous and provide a
description of any information required to investigate the disputed record.
(d) The business screening
service shall notify the subject of the disputed record of the correction or
deletion of the record or of the termination or completion of the investigation
related to the record within 30 days of the date when the agency receives
notice of the dispute from the subject of the record.
Sec. 6.� 2010 S. F. No. 2510, article 3, section
76, if enacted, is amended to read:
Sec. 76.� EFFECTIVE
DATE.�
Sections 3 to 10,;
12 to 17, and; 19 to 28; 29, subdivisions 1 to 5; and 30
to 56 are effective January 1, 2012.� Section
29, subdivision 6, is effective the day following final enactment.
Sec. 7.� Minnesota Statutes 2008, section 253B.185,
subdivision 1, as amended by Laws 2010, chapter 300, section 26, is amended to
read:
Subdivision 1.� Commitment
generally.� (a) Except as otherwise
provided in this section, the provisions of this chapter pertaining to persons
who are mentally ill and dangerous to the public apply with like force and
effect to persons who are alleged or found to be sexually dangerous persons or
persons with a sexual psychopathic personality.�
For purposes of this section, "sexual psychopathic
personality" includes any individual committed as a "psychopathic
personality" under Minnesota Statutes 1992, section 526.10.
(b) Before commitment
proceedings are instituted, the facts shall first be submitted to the county
attorney, who, if satisfied that good cause exists, will prepare the
petition.� The county attorney may
request a prepetition screening report.�
The petition is to be executed by a person having knowledge of the facts
and filed with the committing court of the county in which the patient has a
settlement or is present.� If the patient
is in the custody of the commissioner of corrections, the petition may be filed
in the county where the conviction for which the person is incarcerated
was entered.�
(c) Upon the filing of a
petition alleging that a proposed patient is a sexually dangerous person or is
a person with a sexual psychopathic personality, the court shall hear the
petition as provided in section 253B.18.�
(d) In commitments under
this section, the court shall commit the patient to a secure treatment facility
unless the patient establishes by clear and convincing evidence that a less
restrictive treatment program is available that is consistent with the
patient's treatment needs and the requirements of public safety.�
(e) After a final
determination that a patient is a sexually dangerous person or sexual
psychopathic personality, the court shall order commitment for an indeterminate
period of time and the patient shall be transferred, provisionally discharged,
or discharged, only as provided in this section.
Sec. 8.� Minnesota Statutes 2009 Supplement, section
549.09, subdivision 1, as amended by Laws 2010, chapter 249, section 1, is
amended to read:
Subdivision 1.� When
owed; rate.� (a) When a judgment or
award is for the recovery of money, including a judgment for the recovery of
taxes, interest from the time of the verdict, award, or report until judgment
is finally entered shall be computed by the court administrator or arbitrator
as provided in paragraph (c) and added to the judgment or award.
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(b) Except
as otherwise provided by contract or allowed by law, preverdict, preaward, or
prereport interest on pecuniary damages shall be computed as provided in
paragraph (c) from the time of the commencement of the action or a demand for
arbitration, or the time of a written notice of claim, whichever occurs first,
except as provided herein.� The action
must be commenced within two years of a written notice of claim for interest to
begin to accrue from the time of the notice of claim.� If either party serves a written offer of
settlement, the other party may serve a written acceptance or a written
counteroffer within 30 days.� After that
time, interest on the judgment or award shall be calculated by the judge or
arbitrator in the following manner.� The
prevailing party shall receive interest on any judgment or award from the time
of commencement of the action or a demand for arbitration, or the time of a
written notice of claim, or as to special damages from the time when special
damages were incurred, if later, until the time of verdict, award, or report
only if the amount of its offer is closer to the judgment or award than the
amount of the opposing party's offer.� If
the amount of the losing party's offer was closer to the judgment or award than
the prevailing party's offer, the prevailing party shall receive interest only
on the amount of the settlement offer or the judgment or award, whichever is
less, and only from the time of commencement of the action or a demand for
arbitration, or the time of a written notice of claim, or as to special damages
from when the special damages were incurred, if later, until the time the
settlement offer was made.� Subsequent
offers and counteroffers supersede the legal effect of earlier offers and
counteroffers.� For the purposes of
clause (2), the amount of settlement offer must be allocated between past and
future damages in the same proportion as determined by the trier of fact.� Except as otherwise provided by contract or
allowed by law, preverdict, preaward, or prereport interest shall not be
awarded on the following:
(1)
judgments, awards, or benefits in workers' compensation cases, but not
including third-party actions;
(2)
judgments or awards for future damages;
(3) punitive
damages, fines, or other damages that are noncompensatory in nature;
(4)
judgments or awards not in excess of the amount specified in section 491A.01;
and
(5) that
portion of any verdict, award, or report which is founded upon interest, or costs,
disbursements, attorney fees, or other similar items added by the court or
arbitrator.
(c)(1) For a
judgment or award of $50,000 or less or a judgment or award for or against the
state or a political subdivision of the state, regardless of the amount, the
interest shall be computed as simple interest per annum.� The rate of interest shall be based on the
secondary market yield of one year United States Treasury bills, calculated on
a bank discount basis as provided in this section.
On or before
the 20th day of December of each year the state court administrator shall
determine the rate from the one-year constant maturity treasury yield for the
most recent calendar month, reported on a monthly basis in the latest
statistical release of the board of governors of the Federal Reserve
System.� This yield, rounded to the
nearest one percent, or four percent, whichever is greater, shall be the annual
interest rate during the succeeding calendar year.� The state court administrator shall
communicate the interest rates to the court administrators and sheriffs for use
in computing the interest on verdicts and shall make the interest rates
available to arbitrators.
This clause
applies to any section that references section 549.09 by citation for the
purposes of computing an interest rate on any amount owed to or by the state or
a political subdivision of the state, regardless of if the amount is greater
than or less than $50,000 the amount.
(2) For a
judgment or award over $50,000, other than a judgment or award for or against
the state or a political subdivision of the state, the interest rate shall be
ten percent per year until paid.
(3) When a
judgment creditor, or the judgment creditor's attorney or agent, has received a
payment after entry of judgment, whether the payment is made voluntarily by or
on behalf of the judgment debtor, or is collected by legal process other than
execution levy where a proper return has been filed with the court
administrator, the judgment
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creditor, or
the judgment creditor's attorney, before applying to the court administrator
for an execution shall file with the court administrator an affidavit of
partial satisfaction.� The affidavit must
state the dates and amounts of payments made upon the judgment after the most
recent affidavit of partial satisfaction filed, if any; the part of each payment
that is applied to taxable disbursements and to accrued interest and to the
unpaid principal balance of the judgment; and the accrued, but the unpaid
interest owing, if any, after application of each payment.
(d) This section does not
apply to arbitrations between employers and employees under chapter 179 or
179A.� An arbitrator is neither required
to nor prohibited from awarding interest under chapter 179 or under section
179A.16 for essential employees.
(e) For purposes of this
subdivision:
(1) "state" includes
a department, board, agency, commission, court, or other entity in the
executive, legislative, or judicial branch of the state; and
(2) "political
subdivision" includes a town, statutory or home rule charter city, county,
school district, or any other political subdivision of the state.
Sec. 9.� EMERALD
ASH BORER FUNDS.�
All funds appropriated in
Laws 2009, chapter 172, for Emerald Ash Borer must be in accordance with the
same criteria for all other projects funded in article 1 of that law.
Sec. 10.� Laws 2009, chapter 172, article 1, section 2,
subdivision 5, is amended to read:
����� Subd. 5.� Fish, Game, and Wildlife Habitat ������������������������������������������������������������ 13,903,000���������������������������������� -0-
(a) Outdoor Heritage Conservation Partners Grant Program���������������������������������������������������������������������������������������������
$4,000,000 in fiscal year 2010 is to the commissioner
of natural resources for a pilot program to provide competitive,
matching grants of up to $400,000 to local, regional, state, and national
organizations, including government, for enhancement, restoration, or
protection of forests, wetlands, prairies, and habitat for fish, game, or
wildlife in Minnesota.� Up to 6-1/2
percent of this appropriation may be used for administering the grant.� The funds may
be advanced in three equal sums, on or after November 1, 2009, February
1, 2010, and April 1, 2010.� Grantees may
protect land through acquisition of land or interests in land.� Easements must be permanent.� Land acquired in fee must be open to hunting
and fishing during the open season unless otherwise provided by state law.� The commissioner of natural resources must
agree to each proposed acquisition of land or interest in land.� The program shall require a match of at least
$1 nonstate funds to $10 state funds.�
The nonstate dollars match may be in-kind.� The criteria for evaluating grant applications
must include amount of habitat restored, enhanced, or protected; local support;
degree of collaboration; urgency; multiple benefits; habitat benefits provided;
consistency with sound conservation science; adjacency to protected lands; full
funding of the project; supplementing existing funding; public access for
hunting and fishing during the open season; sustainability; and use of native
plant materials.� Alle
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projects must conform to the Minnesota statewide
conservation and preservation plan.�
Wildlife habitat projects must also conform to the state wildlife action
plan.� Priority may be given to projects
acquiring land or easements associated with existing wildlife management
areas.� All restoration or enhancement
projects must be on land permanently protected by conservation easement or
public ownership.� To the extent
possible, a person conducting prairie restorations with money appropriated in
this section must plant vegetation or sow seed only of ecotypes native to
Minnesota, and preferably of the local ecotype, using a high diversity of
species originating from as close to the restoration site as possible, and
protect existing native prairies from genetic contamination.� Subdivision 10 applies to grants awarded
under this paragraph.� This appropriation
is available until June 30, 2013, at which time all grant projects must be
completed and final products delivered, unless an earlier date is specified in
the grant agreement.� No less than 15
percent of the amount of each grant must be held back from reimbursement until
the grant recipient has completed a grant accomplishment report in the form
prescribed by and satisfactory to the Lessard Outdoor Heritage Council.
As a condition of proceeding with this
appropriation, the commissioner shall report on the feasibility, process, and
timeline for creation of a Minnesota fish and wildlife foundation, to be
modeled after the National Fish and Wildlife Foundation, and on the possibility
of allowing for the administration by this entity of the conservation partners
grant program.
The legislative guide created in this act shall
consider whether this program should be administered by the National Fish and
Wildlife Foundation, the commissioner of natural resources, or some neutral
third party.
(b) Aquatic Management Area Acquisition
$5,748,000 in fiscal year 2010 is to the
commissioner of natural resources to acquire land in fee title and easement to
be added to the state aquatic management area system.� Acquired land must remain open to hunting and
fishing, consistent with the capacity of the land, during the open season, as
determined by the commissioner of natural resources.� A list of proposed fee title and easement
acquisitions must be provided as part of the required accomplishment plan.
(c) Cold
Water River and Stream Restoration, Protection, and Enhancement
$2,050,000 in fiscal year 2010 is to the
commissioner of natural resources for an agreement with Trout Unlimited or
successor to restore, enhance, and protect cold water river and stream habitats
in Minnesota.� A list of proposed acquisitions
and a list of proposed projects, describing the types and locations of
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restorations and enhancements, must be provided as
part of the required accomplishment plan.�
The commissioner of natural resources must agree to each proposed
acquisition, restoration, and enhancement.
(d) Dakota County Habitat Protection
$1,000,000
in fiscal year 2010 is to the commissioner of natural resources for an
agreement with Dakota County for acquisition of permanent easements.� A list of proposed acquisitions must be provided
as part of the required accomplishment plan.
(e) Lake Rebecca Water Quality Improvement
Project
$450,000 in
fiscal year 2010 is to the commissioner of natural resources for an agreement
with the Three Rivers Park District to improve the water quality in Lake
Rebecca in Lake Rebecca Park Reserve in Hennepin County.� A description of the activities to enhance
fish habitat in Lake Rebecca must be provided as part of the required
accomplishment plan.
(f) Fountain Lake Fish Barriers
$655,000 in fiscal year 2010 is to the commissioner of natural resources
for an agreement with the Shell Rock River Watershed District to construct fish
barriers at three locations on Fountain Lake.�
Land acquisition necessary for fish barrier construction is
permitted.� A list of
proposed projects, describing the types and locations of barriers, must be
provided as part of the required accomplishment plan.� The commissioner of natural resources must
agree to each proposed barrier.
Sec. 11.� Minnesota Statutes
2008, section 171.30, subdivision 1, as amended by 2010
H. F. No. 3106, section 11, if enacted, is amended to read:
Subdivision
1.� Conditions
of issuance.� (a) The commissioner
may issue a limited license to the driver under the conditions in paragraph (b)
in any case where a person's license has been:
(1) suspended
under section 171.18, 171.173, or 171.186;
(2) revoked,
canceled, or denied under section:
(i) 169.792;
(ii) 169.797;
(iii) 169A.52,:
(A)
subdivision 3, paragraph (a), clause (1), oder (2),;
(B)
subdivision 3, paragraph (a), clause (4), (5), or (6), oder if
in compliance with section 171.306;
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(C)
subdivision 4, paragraph (a), clause (1) or (2), if the test results
indicate an alcohol concentration of less than twice the legal limit, (2) if
the test results indicate an alcohol concentration of less than twice the legal
limit,;
(D)
subdivision 4, paragraph (a), clause (4), (5), or (6), if in
compliance with section 171.306;
(iv) 171.17; or
(v) 171.172;
or
(3) revoked,
canceled, or denied under section 169A.54,:
(i)
subdivision 1, clause (1), if the test results indicate an alcohol concentration
of less than twice the legal limit;
(ii)
subdivision 1, clause (2),;
(iii)
subdivision 1, clause (4), (5), or (6), if in compliance with section
171.306; oder
(iv)
subdivision 2, if the person does not have a qualified prior impaired driving
incident as defined in section 169A.03, subdivision 22, on the person's record,
the commissioner may issue a limited license to the driver including under
the following conditions:� and the
test results indicate an alcohol concentration of less than twice the legal
limit.
(b) The
following conditions for a limited license under paragraph (a) include:
(1) if the
driver's livelihood or attendance at a chemical dependency treatment or
counseling program depends upon the use of the driver's license;
(2) if the
use of a driver's license by a homemaker is necessary to prevent the
substantial disruption of the education, medical, or nutritional needs of the
family of the homemaker; or
(3) if
attendance at a postsecondary institution of education by an enrolled student
of that institution depends upon the use of the driver's license.
(b) (c)
The commissioner in issuing a limited license may impose such conditions and
limitations as in the commissioner's judgment are necessary to the interests of
the public safety and welfare including reexamination as to the driver's
qualifications.� The license may be
limited to the operation of particular vehicles, to particular classes and
times of operation, and to particular conditions of traffic.� The commissioner may require that an
applicant for a limited license affirmatively demonstrate that use of public
transportation or carpooling as an alternative to a limited license would be a
significant hardship.
(c) (d)
For purposes of this subdivision:� (1)
"homemaker" refers to the person primarily performing the domestic
tasks in a household of residents consisting of at least the person and the
person's dependent child or other dependents; and (2) "twice the legal
limit" means an alcohol concentration of two times the limit specified in
section 169A.20, subdivision 1, clause (5).
(d) (e)
The limited license issued by the commissioner shall clearly indicate the
limitations imposed and the driver operating under the limited license shall
have the license in possession at all times when operating as a driver.
(e) (f)
In determining whether to issue a limited license, the commissioner shall
consider the number and the seriousness of prior convictions and the entire
driving record of the driver and shall consider the number of miles driven by
the driver annually.
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(f) (g) If the person's
driver's license or permit to drive has been revoked under section 169.792 or
169.797, the commissioner may only issue a limited license to the person after
the person has presented an insurance identification card, policy, or written
statement indicating that the driver or owner has insurance coverage
satisfactory to the commissioner of public safety.� The commissioner of public safety may require
the insurance identification card provided to satisfy this subdivision be
certified by the insurance company to be noncancelable for a period not to
exceed 12 months.
(g) (h) The limited
license issued by the commissioner to a person under section 171.186,
subdivision 4, must expire 90 days after the date it is issued.� The commissioner must not issue a limited license
to a person who previously has been issued a limited license under section
171.186, subdivision 4.
(h) (i) The commissioner
shall not issue a limited driver's license to any person described in section
171.04, subdivision 1, clause (6), (7), (8), (11), or (14).
(i) (j) The commissioner
shall not issue a class A, class B, or class C limited license.
Sec. 12.� Minnesota Statutes 2009 Supplement, section
16C.16, subdivision 6a, as amended by Laws 2010, chapter 333, article 2,
section 3, is amended to read:
Subd. 6a.� Veteran-owned
small businesses.� (a) Except when
mandated by the federal government as a condition of receiving federal funds,
the commissioner shall award up to a six percent preference, but no less than
the percentage awarded to any other group under this section, in the amount bid
on state procurement to certified small businesses that are majority-owned and
operated by:
(1) recently separated
veterans who have served in active military service, at any time on or after
September 11, 2001, and who have been discharged under honorable
conditions from active service, as indicated by the person's United States
Department of Defense form DD-214 or by the commissioner of veterans affairs;
(2) veterans with
service-connected disabilities, as determined at any time by the United States
Department of Veterans Affairs; or
(3) any other veteran-owned
small businesses certified under section 16C.19, paragraph (d).
(b) The purpose of this
designation is to facilitate the transition of veterans from military to
civilian life, and to help compensate veterans for their sacrifices, including
but not limited to their sacrifice of health and time, to the state and nation
during their military service, as well as to enhance economic development within
Minnesota.
Sec. 13.� Minnesota Statutes 2009 Supplement, section
626.556, subdivision 2, as amended by Laws 2010, chapter 329, article 1,
section 19, is amended to read:
Subd. 2.� Definitions.� As used in this section, the following
terms have the meanings given them unless the specific content indicates
otherwise:
(a) "Family
assessment" means a comprehensive assessment of child safety, risk of
subsequent child maltreatment, and family strengths and needs that is applied
to a child maltreatment report that does not allege substantial child
endangerment.� Family assessment does not
include a determination as to whether child maltreatment occurred but does
determine the need for services to address the safety of family members and the
risk of subsequent maltreatment.
(b)
"Investigation" means fact gathering related to the current safety of
a child and the risk of subsequent maltreatment that determines whether child
maltreatment occurred and whether child protective services are needed.� An investigation must be used when reports
involve substantial child endangerment, and for reports of maltreatment
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in facilities required to be
licensed under chapter 245A or 245B; under sections 144.50 to 144.58 and
241.021; in a school as defined in sections 120A.05, subdivisions 9, 11, and
13, and 124D.10; or in a nonlicensed personal care provider association as
defined in sections 256B.04, subdivision 16, and 256B.0625, subdivision 19a.
(c)
"Substantial child endangerment" means a person responsible for a
child's care, and in the case of sexual abuse includes a person who has a
significant relationship to the child as defined in section 609.341, or a
person in a position of authority as defined in section 609.341, who by act or
omission commits or attempts to commit an act against a child under their care
that constitutes any of the following:
(1)
egregious harm as defined in section 260C.007, subdivision 14;
(2) sexual
abuse as defined in paragraph (d);
(3)
abandonment under section 260C.301, subdivision 2;
(4) neglect
as defined in paragraph (f), clause (2), that substantially endangers the
child's physical or mental health, including a growth delay, which may be
referred to as failure to thrive, that has been diagnosed by a physician and is
due to parental neglect;
(5) murder
in the first, second, or third degree under section 609.185, 609.19, or
609.195;
(6)
manslaughter in the first or second degree under section 609.20 or 609.205;
(7) assault
in the first, second, or third degree under section 609.221, 609.222, or
609.223;
(8)
solicitation, inducement, and promotion of prostitution under section 609.322;
(9) criminal
sexual conduct under sections 609.342 to 609.3451;
(10)
solicitation of children to engage in sexual conduct under section 609.352;
(11) malicious
punishment or neglect or endangerment of a child under section 609.377 or
609.378;
(12) use of
a minor in sexual performance under section 617.246; or
(13)
parental behavior, status, or condition which mandates that the county attorney
file a termination of parental rights petition under section 260C.301,
subdivision 3, paragraph (a).
(d)
"Sexual abuse" means the subjection of a child by a person
responsible for the child's care, by a person who has a significant
relationship to the child, as defined in section 609.341, or by a person in a
position of authority, as defined in section 609.341, subdivision 10, to any
act which constitutes a violation of section 609.342 (criminal sexual conduct
in the first degree), 609.343 (criminal sexual conduct in the second degree),
609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual
conduct in the fourth degree), or 609.3451 (criminal sexual conduct in the
fifth degree).� Sexual abuse also includes
any act which involves a minor which constitutes a violation of prostitution
offenses under sections 609.321 to 609.324 or 617.246.� Sexual abuse includes threatened sexual
abuse.
(e)
"Person responsible for the child's care" means (1) an individual
functioning within the family unit and having responsibilities for the care of
the child such as a parent, guardian, or other person having similar care
responsibilities, or (2) an individual functioning outside the family unit and
having responsibilities for the care of the child such as a teacher, school
administrator, other school employees or agents, or other lawful custodian of a
child having either full-time or short-term care responsibilities including,
but not limited to, day care, babysitting whether paid or unpaid, counseling,
teaching, and coaching.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13196
(f)
"Neglect" means the commission or omission of any of the acts
specified under clauses (1) to (9), other than by accidental means:
(1) failure
by a person responsible for a child's care to supply a child with necessary
food, clothing, shelter, health, medical, or other care required for the
child's physical or mental health when reasonably able to do so;
(2) failure
to protect a child from conditions or actions that seriously endanger the
child's physical or mental health when reasonably able to do so, including a
growth delay, which may be referred to as a failure to thrive, that has been
diagnosed by a physician and is due to parental neglect;
(3) failure
to provide for necessary supervision or child care arrangements appropriate for
a child after considering factors as the child's age, mental ability, physical condition,
length of absence, or environment, when the child is unable to care for the
child's own basic needs or safety, or the basic needs or safety of another
child in their care;
(4) failure
to ensure that the child is educated as defined in sections 120A.22 and
260C.163, subdivision 11, which does not include a parent's refusal to provide
the parent's child with sympathomimetic medications, consistent with section
125A.091, subdivision 5;
(5) nothing
in this section shall be construed to mean that a child is neglected solely
because the child's parent, guardian, or other person responsible for the
child's care in good faith selects and depends upon spiritual means or prayer
for treatment or care of disease or remedial care of the child in lieu of medical
care; except that a parent, guardian, or caretaker, or a person mandated to
report pursuant to subdivision 3, has a duty to report if a lack of medical
care may cause serious danger to the child's health.� This section does not impose upon persons,
not otherwise legally responsible for providing a child with necessary food,
clothing, shelter, education, or medical care, a duty to provide that care;
(6)
prenatal exposure to a controlled substance, as defined in section 253B.02,
subdivision 2, used by the mother for a nonmedical purpose, as evidenced by
withdrawal symptoms in the child at birth, results of a toxicology test
performed on the mother at delivery or the child at birth, or medical effects
or developmental delays during the child's first year of life that medically
indicate prenatal exposure to a controlled substance;
(7)
"medical neglect" as defined in section 260C.007, subdivision 6,
clause (5);
(8) chronic
and severe use of alcohol or a controlled substance by a parent or person
responsible for the care of the child that adversely affects the child's basic
needs and safety; or
(9)
emotional harm from a pattern of behavior which contributes to impaired
emotional functioning of the child which may be demonstrated by a substantial
and observable effect in the child's behavior, emotional response, or cognition
that is not within the normal range for the child's age and stage of
development, with due regard to the child's culture.
(g)
"Physical abuse" means any physical injury, mental injury, or
threatened injury, inflicted by a person responsible for the child's care on a
child other than by accidental means, or any physical or mental injury that
cannot reasonably be explained by the child's history of injuries, or any
aversive or deprivation procedures, or regulated interventions, that have not
been authorized under section 121A.67 or 245.825.
Abuse does
not include reasonable and moderate physical discipline of a child administered
by a parent or legal guardian which does not result in an injury.� Abuse does not include the use of reasonable
force by a teacher, principal, or school employee as allowed by section
121A.582.� Actions which are not
reasonable and moderate include, but are not limited to, any of the following
that are done in anger or without regard to the safety of the child:
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13197
(1)
throwing, kicking, burning, biting, or cutting a child;
(2)
striking a child with a closed fist;
(3) shaking
a child under age three;
(4)
striking or other actions which result in any nonaccidental injury to a child
under 18 months of age;
(5)
unreasonable interference with a child's breathing;
(6) threatening
a child with a weapon, as defined in section 609.02, subdivision 6;
(7)
striking a child under age one on the face or head;
(8)
purposely giving a child poison, alcohol, or dangerous, harmful, or controlled
substances which were not prescribed for the child by a practitioner, in order
to control or punish the child; or other substances that substantially affect
the child's behavior, motor coordination, or judgment or that results in
sickness or internal injury, or subjects the child to medical procedures that
would be unnecessary if the child were not exposed to the substances;
(9)
unreasonable physical confinement or restraint not permitted under section
609.379, including but not limited to tying, caging, or chaining; or
(10) in a
school facility or school zone, an act by a person responsible for the child's
care that is a violation under section 121A.58.
(h)
"Report" means any report received by the local welfare agency,
police department, county sheriff, or agency responsible for assessing or
investigating maltreatment pursuant to this section.
(i)
"Facility" means:
(1) a
licensed or unlicensed day care facility, residential facility, agency,
hospital, sanitarium, or other facility or institution required to be licensed
under sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or
chapter 245B;
(2) a
school as defined in sections 120A.05, subdivisions 9, 11, and 13; and 124D.10;
or
(3) a
nonlicensed personal care provider organization as defined in sections 256B.04,
subdivision 16, and 256B.0625, subdivision 19a.
(j)
"Operator" means an operator or agency as defined in section 245A.02.
(k)
"Commissioner" means the commissioner of human services.
(l)
"Practice of social services," for the purposes of subdivision 3, includes
but is not limited to employee assistance counseling and the provision of
guardian ad litem and parenting time expeditor services.
(m)
"Mental injury" means an injury to the psychological capacity or
emotional stability of a child as evidenced by an observable or substantial
impairment in the child's ability to function within a normal range of
performance and behavior with due regard to the child's culture.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13198
(n)
"Threatened injury" means a statement, overt act, condition, or
status that represents a substantial risk of physical or sexual abuse or mental
injury.� Threatened injury includes, but
is not limited to, exposing a child to a person responsible for the child's
care, as defined in paragraph (e), clause (1), who has:
(1)
subjected a child to, or failed to protect a child from, an overt act or
condition that constitutes egregious harm, as defined in section 260C.007,
subdivision 14, or a similar law of another jurisdiction;
(2) been
found to be palpably unfit under section 260C.301, paragraph (b), clause (4),
or a similar law of another jurisdiction;
(3)
committed an act that has resulted in an involuntary termination of parental
rights under section 260C.301, or a similar law of another jurisdiction; or
(4)
committed an act that has resulted in the involuntary transfer of permanent
legal and physical custody of a child to a relative under section 260C.201,
subdivision 11, paragraph (d), clause (1), or a similar law of another
jurisdiction.
(o) Persons
who conduct assessments or investigations under this section shall take into account
accepted child-rearing practices of the culture in which a child participates
and accepted teacher discipline practices, which are not injurious to the
child's health, welfare, and safety.
(p)
"Accidental" means a sudden, not reasonably foreseeable, and
unexpected occurrence or event which:
(1) is not
likely to occur and could not have been prevented by exercise of due care; and
(2) if
occurring while a child is receiving services from a facility, happens when the
facility and the employee or person
providing services in the facility are in compliance with the laws and rules
relevant to the occurrence or event.
(q)
"Nonmaltreatment mistake" means:
(1) at the
time of the incident, the individual was performing duties identified in the
center's child care program plan required under Minnesota Rules, part
9503.0045;
(2) the
individual has not been determined responsible for a similar incident that
resulted in a finding of maltreatment for at least seven years;
(3) the
individual has not been determined to have committed a similar nonmaltreatment
mistake under this paragraph for at least four years;
(4) any
injury to a child resulting from the incident, if treated, is treated only with
remedies that are available over the counter, whether ordered by a medical
professional or not; and
(5) except
for the period when the incident occurred, the facility and the individual
providing services were both in compliance with all licensing requirements
relevant to the incident.
This definition only applies to child care centers licensed under
Minnesota Rules, chapter 9503.� If
clauses (1) to (5) apply, rather than making a determination of substantial
substantiated maltreatment by the individual, the commissioner of human
services shall determine that a nonmaltreatment mistake was made by the
individual."
Renumber the
sections in sequence and correct the internal references
Correct the
title numbers accordingly
With the
recommendation that when so amended the bill pass.
����� The report was adopted.
Journal of
the House - 106th Day - Saturday, May 15, 2010 - Top of Page 13199
SECOND READING OF HOUSE BILLS
����� H. F. No. 3787 was read for
the second time.
DECLARATION OF URGENCY
����� Pursuant to Article IV, Section 19, of the
Constitution of the state of Minnesota, Jackson moved that the rule therein be
suspended and an urgency be declared so that H. F. No. 3787 be
given its third reading and be placed upon its final passage.� The motion prevailed.
SUSPENSION OF RULES
����� Jackson moved that the rules of the House
be so far suspended that H. F. No. 3787 be given its third
reading and be placed upon its final passage.�
The motion prevailed.
����� H. F. No. 3787, A bill for an
act relating to legislative enactments; correcting miscellaneous oversights,
inconsistencies, ambiguities, unintended results, and technical errors;
amending Minnesota Statutes 2008, sections 118A.05, subdivision 3, as amended;
160.21, subdivision 6, as added; 171.30, subdivision 1, as amended if enacted;
245A.18, subdivision 2; 253B.185, subdivision 1, as amended; 332.70,
subdivision 3, as amended; Minnesota Statutes 2009 Supplement, sections 16C.16,
subdivision 6a, as amended; 549.09, subdivision 1, as amended; 626.556,
subdivision 2, as amended; Laws 2009, chapter 172, article 1, section 2,
subdivision 5; Laws 2010, chapter 189, section 21, subdivision 4; 2010
S. F. No. 2510, article 3, section 76, if enacted.
����� The bill was read for the third time and
placed upon its final passage.
����� The question was taken on the passage of
the bill and the roll was called.� There
were 128 yeas and 0 nays as follows:
����� Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Hayden
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13200
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
����� The bill was passed and its title agreed
to.
MOTION TO ADJOURN
����� Buesgens moved that the House adjourn
until 12:00 noon, Sunday, May 16, 2010.
����� A roll call was requested and properly
seconded.
����� The question was taken on the Buesgens
motion and the roll was called.� There
were 20 yeas and 104 nays as follows:
����� Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Anderson, S.
Beard
Buesgens
Dean
Dettmer
Drazkowski
Gunther
Hackbarth
Hamilton
Kiffmeyer
Kohls
Murdock
Nornes
Sanders
Scott
Severson
Shimanski
Westrom
����� Those who voted in the negative were:
Anzelc
Atkins
Benson
Bigham
Bly
Brod
Brown
Brynaert
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dill
Dittrich
Doepke
Doty
Downey
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Hansen
Hausman
Haws
Hayden
Hilty
Holberg
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kalin
Kath
Knuth
Koenen
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Scalze
Seifert
Sertich
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Winkler
Zellers
Spk. Kelliher
����� The motion did not prevail.
����� Sertich moved that the House recess
subject to the call of the Chair.� The
motion prevailed.
RECESS
RECONVENED
����� The House reconvened and was called to
order by Speaker pro tempore Sertich.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13201
FISCAL CALENDAR ANNOUNCEMENT
����� Pursuant to rule 1.22, Solberg announced
his intention to place H. F. Nos. 2072, 3329 and 3330 on the
Fiscal Calendar for Saturday, May 15, 2010.
����� Hortman moved that the House recess
subject to the call of the Chair.� The motion
prevailed.
RECESS
RECONVENED
����� The House reconvened and was called to
order by Speaker pro tempore Sertich.
FISCAL CALENDAR
����� Pursuant to rule 1.22, Solberg requested
immediate consideration of H. F. No. 2072.
����� H. F. No. 2072, A bill for
an act relating to education finance; updating a reference; amending Minnesota
Statutes 2008, section 126C.05, subdivision 2.
����� The bill was read for the third time and
placed upon its final passage.
����� The question was taken on the passage of the
bill and the roll was called.� There were
128 yeas and 2 nays as follows:
����� Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Demmer
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Hayden
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kath
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13202
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
����� Those who
voted in the negative were:
Buesgens
Kalin
����� The bill was passed and its title agreed to.
����� Pursuant to rule 1.22, Solberg requested immediate
consideration of H. F. No. 3329.
����� H. F. No. 3329
was reported to the House.
Greiling moved to amend
H. F. No. 3329 as follows:
Page 1, delete section 1,
and insert:
"Section 1.� Minnesota Statutes 2008, section 127A.45, is
amended by adding a subdivision to read:
Subd. 6a.� Cash
flow adjustment.� The board of
directors of any charter school serving fewer than 150 students where the
percent of students eligible for special education services equals 100 percent
of the charter school's total enrollment may request that the commissioner of
education accelerate the school's cash flow under this section.� The commissioner must approve a properly
submitted request within 30 days of its receipt.� The commissioner must accelerate the school's
cash flow aid payments for all state aid according to the schedule in the
school's request and modify the payments to the school under subdivision 3
accordingly.� The commissioner must delay
the special education aid payments to all other school districts and charter
schools in proportion to each district or charter school's total share of
regular special education aid such that the overall aid payment savings from
the aid payment shift remains unchanged for any fiscal year.�
EFFECTIVE DATE.� This section is effective the day following final
enactment and applies to school district or charter school payments made on or
after that date."
Delete the title and insert:
"A bill for an act
relating to education finance; modifying the aid payment schedule for certain
charter schools; amending Minnesota Statutes 2008, section 127A.45, by adding a
subdivision."
����� The motion prevailed and the amendment was adopted.
����� H. F. No. 3329, A bill for an act relating to
education finance; modifying the aid payment schedule for certain charter
schools; amending Minnesota Statutes 2008, section 127A.45, by adding a
subdivision.
����� The bill was read for the third time, as amended, and placed
upon its final passage.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13203
����� The question was taken on the passage of
the bill and the roll was called.� There
were 130 yeas and 0 nays as follows:
����� Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Demmer
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Hayden
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
����� The bill was passed, as amended, and its
title agreed to.
����� The following Conference Committee Report
was received:
CONFERENCE COMMITTEE REPORT ON
H. F. NO. 2801
A bill for an act relating to establishing complete streets
program and requiring reports; amending Minnesota Statutes 2008, sections
162.02, subdivision 3a; 162.09, subdivision 3a; proposing coding for new law in
Minnesota Statutes, chapter 174.
May 15, 2010
The
Honorable Margaret Anderson Kelliher
Speaker of
the House of Representatives
The
Honorable James P. Metzen
President of
the Senate
We, the undersigned conferees for
H. F. No. 2801 report that we have agreed upon the items in
dispute and recommend as follows:
That the Senate recede from its amendment and that
H. F. No. 2801 be further amended as follows:
Delete everything after the enacting clause and insert:
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13204
"ARTICLE 1
LICENSE PLATES
Section 1.� [168.121]
SPECIAL PLATES REMEMBERING VICTIMS OF IMPAIRED DRIVERS.�
Subdivision 1.� Issuance
and design.� Notwithstanding
section 168.1293, the commissioner shall issue special plates remembering
victims of impaired drivers to an applicant who:
(1) is a registered owner of
a passenger automobile;
(2) pays a fee of $10 for
each set of license plates applied for; and
(3) complies with this
chapter and rules governing registration of motor vehicles and licensing of
drivers.
Subd. 2.� Design.� The commissioner shall design the
special plate emblem so that it bears an inscription "Remembering Victims
of Impaired Drivers" and displays an image of a broken heart.
Subd. 3.� Plates
transfer.� On payment of a
transfer fee of $5, plates issued under this section may be transferred to
another passenger automobile registered to the individual to whom the special
plates were issued.
Subd. 4.� Record.� The commissioner shall maintain a record
of the number of special plates issued under this section.
Subd. 5.� Fees
credited.� Fees collected
under this section must be credited to the vehicle services operating account
in the special revenue fund.
EFFECTIVE DATE.� This section is effective August 1, 2013.
Sec. 2.� Minnesota Statutes 2008, section 168.1291,
subdivision 1, is amended to read:
Subdivision 1.� Definition.� For purposes of this section
"special plates" means plates issued under sections 168.12,
subdivisions 2b and 2e; 168.121; 168.1235; and 168.129.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 3.� Minnesota Statutes 2008, section 168.1291,
subdivision 2, is amended to read:
Subd. 2.� Uniform
design of special plates.� (a) The
commissioner shall design a single special plate that will contain a unique
number and a space for a unique emblem for plates issued under sections 168.12,
subdivisions 2b and 2e; 168.121; 168.1235; and 168.129.� The commissioner shall design a unique emblem
related to the purpose of each special plate.
(b) Any provision of
sections 168.12, subdivisions 2b to 2e; 168.121; 168.123; and 168.129,
that requires the placement of a specified letter or letters on a special plate
applies to those plates only to the extent that the commissioner includes the
letter or letters in the design.
(c) If a law authorizing a
special plate contains a specific requirement for graphic design of that plate,
that requirement applies to the appropriate unique emblem.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13205
ARTICLE 2
ROAD CONSTRUCTION
Section 1.� STATE ROAD CONSTRUCTION APPROPRIATION.�
$30,000,000 is appropriated from the bond proceeds account in
the trunk highway fund in fiscal year 2011 to the commissioner of
transportation for the actual construction, reconstruction, and improvement of
trunk highways, including design-build contracts and consultant usage to
support these activities.� This includes
the cost of actual payments to landowners for lands acquired for highway
rights-of-way, payments to lessees, interest subsidies, and relocation expenses.� The commissioner may use up to $5,100,000 of
this amount for program delivery.
Sec. 2.� INTERCHANGE ACCOUNT APPROPRIATION.�
$70,000,000 is appropriated from the bond proceeds account in
the trunk highway fund in fiscal year 2011 to the commissioner of
transportation for construction of interchanges involving a trunk highway,
where the interchange will promote economic development, increase employment,
relieve growing traffic congestion, and promote traffic safety.� The amount under this paragraph must be
allocated 50 percent to the department's metropolitan district, and 50 percent
to districts in greater Minnesota.
Sec. 3.� BOND SALE EXPENSES.�
$100,000 is appropriated from the bond proceeds account in the
trunk highway fund to the commissioner of finance
for bond sale expenses under Minnesota Statutes, sections 16A.641, subdivision
8, and 167.50, subdivision 4.
Sec. 4.� TRUNK HIGHWAY BONDS AUTHORIZATION.�
To provide the money appropriated in sections 1, 2, and 3 from
the bond proceeds account in the trunk highway fund, the commissioner of
management and budget shall sell and issue bonds of the state in an amount up
to $100,100,000 in the manner, upon the terms, and with the effect prescribed
by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
Constitution, article XIV, section 11, at the times and in the amounts
requested by the commissioner of transportation.� The proceeds of the bonds, except accrued
interest and any premium received from the sale of the bonds, must be deposited
in the bond proceeds account in the trunk highway fund.
Sec. 5.� EFFECTIVE DATE.�
This article is effective the day following final enactment.
ARTICLE 3
TRANSPORTATION TAX COMPLIANCE
Section 1.� Laws 2009, chapter 36, article 1,
section 1, is amended to read:
Section 1.� SUMMARY OF APPROPRIATIONS.�
The amounts shown in this section summarize direct
appropriations, by fund, made in this article.
������������������������������������������������������������������������������������������������������ 2010���������������������������������������������� 2011����������������������������� Total
Allgemein�������������������������������������������������������������������������� $98,385,000������������������������������� $ 95,885,000������������� $ 194,270,000
�������������������������������������������������������������������������������������������������������������������������������������������������� 95,897,000���������������� 194,282,000
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13206
Airports���������������������������������������������������������������������������� 21,909,000���������������������������������� 19,659,000������������������ 41,568,000
C.S.A.H.������������������������������������������������������������������� ����� 496,786,000�������������������������������� 524,478,000������������� 1,021,264,000
M.S.A.S.������������������������������������������������������������������������ 134,003,000�������������������������������� 141,400,000���������������� 275,403,000
Special Revenue������������������������������������������������������������ 49,038,000���������������������������������� 49,038,000������������������ 98,076,000
�������������������������������������������������������������������������������������������������������������������������������������������������� 49,088,000������������������ 98,126,000
H.U.T.D.����������������������������������������������������������������������������� 9,538,000������������������������������������� 9,838,000������������������ 19,376,000
�������������������������������������������������������������������������������������������������������������������������������������������������� 10,017,000������������������ 19,555,000
Trunk Highway�������������������������������������������������������� 1,264,921,000����������������������������� 1,372,687,000������������� 2,637,608,000
��������������������������������������������������������������������������������������������������������������������������������������������� 1,372,496,000������������� 2,637,417,000
Total������������������������������������������������������������������������ $2,074,580,000������������������������� $
2,212,985,000��������� $
4,287,565,000
��������������������������������������������������������������������������������������������������������������������������������������������� 2,213,035,000������������� 4,287,615,000
����� EFFECTIVE DATE.� This section is effective July 1, 2010.
����� Sec. 2.� Laws 2009,
chapter 36, article 1, section 5, subdivision 1, is amended to read:
����� Subdivision 1.� Total Appropriation �������������������������������������������������������������������� $152,478,000������������� $ 152,578,000
���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 152,628,000
��������������������������������������� Appropriations by Fund
������������������������������������������������������ 2010�������������������������������������� 2011
Allgemein������������������������������� 7,959,000����������������������������� 7,959,000
��������������������������������������������������������������������������������������������� 7,971,000
Special Revenue������������ 49,038,000�������������������������� 49,038,000
������������������������������������������������������������������������������������������ 49,088,000
H.U.T.D.����������������������������� 9,413,000����������������������������� 9,713,000
��������������������������������������������������������������������������������������������� 9,892,000
Trunk Highway�������������� 86,068,000�������������������������� 85,868,000
������������������������������������������������������������������������������������������ 85,677,000
The amounts that may be spent for each purpose are
specified in the following subdivisions.
����� EFFECTIVE DATE.� This section is effective July 1, 2010.
����� Sec. 3.� Laws 2009,
chapter 36, article 1, section 5, subdivision 3, is amended to read:
����� Subd. 3.� State Patrol
(a) Patrolling Highways����������������������������������������������������������������������������������������������������� 71,522,000������������������ 71,522,000
������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 71,331,000
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13207
��������������������������������������� Appropriations by Fund
Allgemein������������������������������������ 37,000���������������������������������� 37,000
H.U.T.D.���������������������������������� 92,000���������������������������������� 92,000
Trunk Highway�������������� 71,393,000�������������������������� 71,393,000
������������������������������������������������������������������������������������������ 71,202,000
The base appropriation from the trunk highway fund
in fiscal years 2012 and 2013 is $71,393,000 for each fiscal year.
(b) Commercial Vehicle Enforcement������������������������������������������������������������������������������ 7,996,000��������������������� 7,796,000
This appropriation is from the trunk highway fund.
$800,000 the first year and $600,000 the second year
are for the Office of Pupil Transportation Safety.
(c) Capitol Security���������������������������������������������������������������������������������������������������������������� 3,113,000��������������������� 3,113,000
This appropriation is from the general fund.
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:� (1) appropriated for Department of Public
Safety administration, the patrolling of highways, commercial vehicle
enforcement, or driver and vehicle services to capitol security; or (2) from
capitol security.
(d) Vehicle Crimes Unit���������������������������������������������������������������������������������������������������������������������� -0-������������������������ 191,000
��������������������������������������� Appropriations by Fund
Allgemein�������������������������������������������� -0-���������������������������������� 12,000
H.U.T.D.������������������������������������������ -0-�������������������������������� 179,000
This appropriation is to investigate:� (1) registration tax and motor vehicle sales
tax liabilities from individuals and businesses that currently do not pay all
taxes owed; and (2) illegal or improper activity related to sale, transfer,
titling, and registration of motor vehicles.
This initiative is expected to result in new
revenues for the biennium as follows:
(1) $114,000 for the highway user tax distribution
fund;
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13208
(2) $75,000 for the transit assistance fund; and
(3) $13,000 for the general fund.
The general fund appropriation for fiscal year 2011
is a onetime appropriation.
The base appropriation from the highway user tax
distribution fund in fiscal years 2012 and 2013 is $693,000 for each fiscal
year.
By February 1, 2015, the commissioner shall submit a
report to the house of representatives and senate committees having
jurisdiction over transportation finance on the revenues generated by the
Vehicle Crimes Unit.� This report must be
made available electronically and made available in print only upon request.
EFFECTIVE DATE.� This section is effective July 1, 2010.
����� Sec. 4.� Laws 2009,
chapter 36, article 1, section 5, subdivision 4, is amended to read:
����� Subd. 4.� Driver and Vehicle Services
(a) Vehicle Services�������������������������������������������������������������������������������������������������������������� 26,909,000������������������ 27,209,000
������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 27,259,000
��������������������������������������� Appropriations by Fund
Special Revenue������������ 18,973,000�������������������������� 18,973,000
������������������������������������������������������������������������������������������ 19,023,000
H.U.T.D.����������������������������� 7,936,000����������������������������� 8,236,000
The special revenue fund appropriation is from the
vehicle services operating account.
Of the appropriation for fiscal year 2011 from the
special revenue fund, $50,000 is for assistance to the Vehicle Crimes Unit in
investigations as provided under subdivision 3, paragraph (d).
(b) Driver Services��������������������������������������������������������������������������������������������������������������� 28,712,000������������������ 28,712,000
��������������������������������������� Appropriations by Fund
Special Revenue������������ 28,711,000�������������������������� 28,711,000
Trunk Highway������������������������ 1,000������������������������������������� 1,000
The special revenue fund appropriation is from the
driver services operating account.
EFFECTIVE DATE.� This section is effective July 1, 2010."
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13209
Delete the title and insert:
"A bill for an act relating to transportation;
providing for certain special license plates; appropriating money for trunk
highways; authorizing the sale of state bonds; appropriating money and changing
appropriations for certain transportation and public safety programs and
activities; amending Minnesota Statutes 2008, section 168.1291, subdivisions 1,
2; Laws 2009, chapter 36, article 1, sections 1; 5, subdivisions 1, 3, 4;
proposing coding for new law in Minnesota Statutes, chapter 168."
We request the adoption of this report and repassage of the
bill.
House Conferees:�
Mike Obermueller and Terry Morrow.
Senate Conferees:�
Steve Murphy, Tony Lourey
and Michael Jungbauer.
����� Obermueller moved that the report of the
Conference Committee on H. F. No. 2801 be adopted and that the
bill be repassed as amended by the Conference Committee.� The motion prevailed.
H. F. No. 2801, A bill for an act relating to
establishing complete streets program and requiring reports; amending Minnesota
Statutes 2008, sections 162.02, subdivision 3a; 162.09, subdivision 3a;
proposing coding for new law in Minnesota Statutes, chapter 174.
����� The bill was read for the third time, as amended
by Conference, and placed upon its repassage.
����� The question was taken on the repassage of
the bill and the roll was called.� There
were 123 yeas and 7 nays as follows:
����� Those who voted in the affirmative were:
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dean
Demmer
Dill
Dittrich
Doepke
Doty
Downey
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hamilton
Hansen
Haws
Hayden
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13210
����� Those who
voted in the negative were:
Anderson, B.
Buesgens
Dettmer
Drazkowski
Hackbarth
Hausman
Severson
����� The bill was repassed, as amended by
Conference, and its title agreed to.
MOTION TO ADJOURN
����� Buesgens moved that the House adjourn
until 10:00 a.m., Sunday, May 16, 2010.
����� A roll call was requested and properly
seconded.
����� The question was taken on the Buesgens
motion and the roll was called.� There
were 21 yeas and 106 nays as follows:
����� Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Beard
Buesgens
Dean
Demmer
Dettmer
Drazkowski
Eastlund
Emmer
Gunther
Hackbarth
Hamilton
Kohls
Lanning
Loon
Nornes
Peppin
Severson
Shimanski
Torkelson
����� Those who voted in the negative were:
Anderson, S.
Anzelc
Atkins
Benson
Bigham
Bly
Brod
Brown
Brynaert
Bunn
Carlson
Champion
Clark
Cornish
Davnie
Dill
Dittrich
Doepke
Doty
Downey
Eken
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Hansen
Haws
Hayden
Hilstrom
Hilty
Holberg
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kiffmeyer
Knuth
Koenen
Laine
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Mack
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Urdahl
Wagenius
Ward
Welti
Winkler
Zellers
Spk. Kelliher
����� The motion did not prevail.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13211
����� Morrow moved that the House recess subject
to the call of the Chair.� The motion
prevailed.
RECESS
RECONVENED
����� The House reconvened and was called to
order by Speaker pro tempore Sertich.
����� The following Conference Committee Report
was received:
CONFERENCE COMMITTEE REPORT ON
H. F. NO. 3729
A bill for an act relating to the financing and operation of
state and local government; making policy, technical, administrative, payment,
enforcement, collection, refund, and other changes to individual income;
corporate franchise, estate, sales and use, local taxes, gross receipts, gross
revenues, cigarette, tobacco, insurance, property, minerals, petroleum, and
other taxes and tax-related provisions; requiring sunset of new tax
expenditures; property tax reform, accountability, value, and efficiency
provisions; modifying certain payment schedules; making changes to
tax-forfeited land, emergency debt certificate, local government aid, job
opportunity building zone, special service district, agricultural preserve, tax
increment financing, economic development authority, and special taxing
district provisions; increasing and modifying certain borrowing authorities;
modifying bond allocation provisions; specifying duties of assessors; requiring
studies; providing appointments; repealing political contribution refund;
appropriating money; amending Minnesota Statutes 2008, sections 60A.209,
subdivision 1; 82B.035, subdivision 2; 103D.335, subdivision 17; 270.075,
subdivisions 1, 2; 270.41, subdivision 5; 270A.03, subdivision 7; 270C.11,
subdivision 4; 270C.34, subdivision 1; 270C.52, subdivision 2; 270C.87;
270C.94, subdivision 3; 272.0213; 272.025, subdivisions 1, 3; 272.029,
subdivisions 4, 7; 273.061, subdivisions 7, 8; 273.113, subdivision 3;
273.1231, subdivision 1; 273.1232, subdivision 1; 273.124, subdivisions 1, 8,
14; 273.13, subdivision 34; 273.1392; 275.71, subdivisions 4, 5; 275.75;
276.02; 276.112; 279.01, subdivision 3; 279.025; 279.37, subdivision 1; 282.01,
subdivisions 1, 1a, 1b, 1c, 1d, 2, 3, 4, 7, 7a, by adding subdivisions;
289A.08, subdivision 7; 289A.09, subdivision 2; 289A.10, subdivision 1; 289A.12,
subdivision 14; 289A.30, subdivision 2; 289A.50, subdivisions 1, 2, 4; 289A.60,
subdivision 7, by adding a subdivision; 290.014, subdivision 2; 290.067,
subdivision 1; 290.081; 290.0921, subdivision 3; 290.17, subdivision 2; 290.21,
subdivision 4; 290A.04, subdivision 2; 290B.03, by adding a subdivision;
290B.04, subdivisions 3, 4; 290B.05, subdivision 1; 291.03, by adding a
subdivision; 295.55, subdivisions 2, 3; 297A.62, as amended; 297A.665; 297A.68,
subdivision 39; 297A.70, subdivision 13; 297A.71, subdivisions 23, 39;
297A.995, subdivisions 10, 11; 297F.01, subdivision 22a; 297F.04, by adding a
subdivision; 297F.07, subdivision 4; 297F.25, subdivision 1; 297I.01,
subdivision 9; 297I.05, subdivision 7; 297I.30, subdivisions 1, 2, 7, 8;
297I.40, subdivisions 1, 5; 297I.65, by adding a subdivision; 298.282,
subdivision 1; 428A.12; 428A.18, subdivision 2; 469.101, subdivision 1;
469.319, subdivision 5; 469.3193; 473.39, by adding a subdivision; 473H.05,
subdivision 1; 474A.04, subdivision 6; 474A.091, subdivision 3; Minnesota
Statutes 2009 Supplement, sections 134.34, subdivision 4; 137.025, subdivision
1; 273.114, subdivision 2; 273.124, subdivision 3a; 273.13, subdivisions 23,
25; 275.065, subdivision 3; 275.70, subdivision 5, as amended; 276.04, subdivision
2; 279.01, subdivision 1; 289A.18, subdivision 1; 289A.20, subdivision 4;
290.01, subdivisions 19a, 19b, as amended, 19d; 290.06, subdivision 2c;
290.0671, subdivision 1; 290.091, subdivision 2; 290B.03, subdivision 1;
291.005, subdivision 1, as amended; 297I.35, subdivision 2; 475.755; 477A.011,
subdivision 36, as amended; 477A.013, subdivision 8; Laws 2001, First Special
Session chapter 5, article 3, section 50, as amended; Laws 2002, chapter 377,
article 3, section 25, as amended; Laws 2009, chapter 88, article 2, section
49; article 4, sections 5; 23, subdivision 4; Laws 2010, chapter 216, sections
2, subdivision 3; 3, subdivision 6; by adding subdivisions; 4, subdivisions 1,
2, 4, 6, 7, 8; proposing coding for new law in Minnesota Statutes, chapters 3;
6; 270C; 273; 296A; 524; 645; repealing Minnesota Statutes 2008, sections
10A.322, subdivision 4; 13.4967, subdivision 2; 282.01, subdivisions 9, 10, 11;
290.06, subdivision 23; 297I.30, subdivisions 4, 5, 6; 383A.76.
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13212
May 15, 2010
The
Honorable Margaret Anderson Kelliher
Speaker of
the House of Representatives
The
Honorable James P. Metzen
President of
the Senate
We, the undersigned conferees for
H. F. No. 3729 report that we have agreed upon the items in
dispute and recommend as follows:
That the Senate recede from its amendment and that
H. F. No. 3729 be further amended as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
PROPERTY TAXES
Section 1.� Minnesota
Statutes 2008, section 270.075, subdivision 1, is amended to read:
Subdivision 1.� Rate of tax.� The commissioner shall determine the rate
of tax to be levied and collected against the net tax capacity as determined
pursuant to section 270.074, subdivision 2 3, to generate
revenues sufficient to fund the airflight property tax portion of each year's
state airport fund appropriation, as certified to the commissioner by the
commissioner of transportation.� The
certification shall be presented to the commissioner prior to December 31 of
each year.� The property tax portion
of the state airport fund appropriation is the difference between the total
fund appropriation and the estimated total fund revenues from other sources for
the state fiscal year in which the tax is payable and may include a portion
of the balance in the state airports fund as determined to be available by the
commissioner of transportation.� If
a levy amount has not been certified by September 1 of a levy year, the
commissioner shall use the last previous certified amount to determine the rate
of tax.� The certification by the
commissioner of transportation to the commissioner shall state the total fund
appropriation and shall list individually the estimated fund revenues including
the account carryover balance in the airport fund.� The difference of these amounts shall be
shown as the property tax portion of the state airport fund appropriation.
If a levy amount has not been certified by December 31 of a
levy year, the commissioner shall use the last previous certified amount to
determine the rate of tax, and shall notify the chairs and the ranking minority
members of the committees of the house of representatives and senate having
jurisdiction over the Department of Transportation that a certification was not
made under this subdivision.
EFFECTIVE
DATE.� This section is effective for taxes
payable in 2011 and thereafter.
Sec. 2.� Minnesota
Statutes 2008, section 270.075, subdivision 2, is amended to read:
Subd. 2.� Notice of taxes; payment.� As soon as practicable and not later than
December March 1 next following the levy of the tax, the commissioner
shall give actual notice to the airline company of the net tax capacity and of
the tax.� The taxes imposed under
sections 270.071 to 270.079 shall become due and payable on January April
1 following the levy thereof.� If any tax
is not paid on the due date or, if an appeal is made pursuant to section
270.076, within 60 days after notice of an increased tax, a late payment
penalty of five percent of the unpaid tax shall be assessed.� If the tax remains unpaid for more than 30
days, an additional penalty of five percent of the unpaid tax is imposed for
each additional 30 days or fraction of 30 days that the tax remains
unpaid.� The penalty
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imposed under this section must not exceed the lesser of
$25,000 or 25 percent of the unpaid tax.�
The unpaid tax and penalty shall bear interest at the rate specified in
section 270C.40 from the time such tax should have been paid until paid.� All interest and penalties shall be added to
the tax and collected as a part thereof.
EFFECTIVE DATE.� This section is effective for taxes payable in 2011
and thereafter.
Sec. 3.� Minnesota Statutes 2008, section 272.02, subdivision
31, is amended to read:
Subd. 31.� Business
incubator property.� Property owned
by a nonprofit charitable organization that qualifies for tax exemption under
section 501(c)(3) of the Internal Revenue Code that is intended to be used as a
business incubator in a high-unemployment county, is exempt.� As used in this subdivision, a "business
incubator" is a facility used for the development of nonretail businesses,
offering access to equipment, space, services, and advice to the tenant
businesses, for the purpose of encouraging economic development,
diversification, and job creation in the area served by the organization, and
"high-unemployment county" is a county that had an average annual
unemployment rate of 7.9 percent or greater in 1997.� Property that qualifies for the exemption
under this subdivision is limited to no more than two contiguous parcels and
structures that do not exceed in the aggregate 40,000 square feet.� This exemption expires after taxes payable in
2011 2016.
EFFECTIVE DATE. �This section is effective the day following final
enactment.
Sec. 4.� Minnesota Statutes 2008, section 272.0213, is
amended to read:
272.0213 LEASED SEASONAL-RECREATIONAL LAND.�
(a) A county board may elect,
by resolution, to exempt from taxation, including the tax under section 273.19,
qualified lands.� "Qualified
lands" for purposes of this section means property that:
(1) is owned by a county,
city, town, oder the state, or the federal governments;
(2) is rented by the entity
for noncommercial seasonal-recreational or noncommercial seasonal-recreational
residential use; and
(3) was rented for the
purposes specified in clause (2) and was exempt from taxation for property
taxes payable in 2008.
(b) Lands owned by the
federal government and rented for noncommercial seasonal-recreational or
noncommercial seasonal-recreational residential use is exempt from taxation,
including the tax under section 273.19.
EFFECTIVE DATE.� This section is effective beginning with taxes
payable in 2011.
Sec. 5.� Minnesota Statutes 2009 Supplement, section
273.111, subdivision 3a, is amended to read:
Subd. 3a.� Property
no longer eligible for deferment.� (a)
Real estate receiving the tax deferment under this section for assessment year
2008, but that does not qualify for the 2009 assessment year due to changes in
qualification requirements under Laws 2008, chapter 366, shall continue to
qualify until:� (1) the land is sold,
transferred, or subdivided, or (2) the 2013 assessment, whichever is earlier,
provided that the property continues to meet the requirements of Minnesota
Statutes 2006, section 273.111, subdivision 3.
(b) Except as provided in
paragraph (c), and subdivision 9, paragraph (b), when property assessed under
this subdivision is withdrawn from the program or becomes ineligible, the
property shall be subject to additional taxes as provided in subdivision 9.
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(c) If land described in paragraph (a) is (1) sold or
otherwise transferred to a son or daughter of the owner, or
(2) transferred from a family farm limited liability company upon its
termination to a son or daughter of an individual who had an ownership interest
in the company, it will continue to qualify for treatment under this
section as long as it continues to meet the requirements of Minnesota Statutes
2006, section 273.111, subdivision 3, but no later than the 2013 assessment.
(d) When property assessed under this subdivision is removed
from the program and is enrolled in the rural preserve property tax law program
under section 273.114, the property is not subject to the additional taxes
required under this subdivision or subdivision 9.
EFFECTIVE DATE.� This
section is effective for taxes payable in 2011 and thereafter.
Sec. 6.� Minnesota
Statutes 2009 Supplement, section 273.111, subdivision 4, is amended to read:
Subd. 4.� Determination of value.� (a) The value of any real estate described
in subdivision 3 shall upon timely application by the owner, in the manner
provided in subdivision 8, be determined solely with reference to its
appropriate agricultural classification and value notwithstanding sections
272.03, subdivision 8, and 273.11.�
Furthermore, the assessor shall not consider any added values resulting
from nonagricultural factors.� In order
to account for the presence of nonagricultural influences that may affect the
value of agricultural land, the commissioner of revenue shall, in
consultation with the Department of Applied Economics at the University of
Minnesota, develop a fair and uniform method of determining agricultural
values the average value of agricultural land for each county in the
state that are consistent with this subdivision.� The values must be determined using
appropriate sales data.� When
appropriate, the commissioner may make reasonable adjustments to the values
based on the most recent available county or regional data for agricultural
production, commodity prices, production expenses, rent, and investment return.� The commissioner shall annually assign the
resulting values countywide average value to each county, and
these values shall be used as the basis for determining the agricultural value
for all properties in the county qualifying for tax deferment under this
section.� The county assessor, in
consultation with the Department of Revenue, shall determine the relative value
of agricultural land for each assessment district in comparison to the countywide
average value, considering and giving recognition to appropriate agricultural
market and soil data available.
(b) In the case of property qualifying for tax deferment only
under subdivision 3a, the assessor shall not consider the presence of commercial,
industrial, residential, or seasonal recreational land use influences in
determining the value for ad valorem tax purposes provided that in no case
shall the value exceed the value prescribed by the commissioner of revenue for
class 2a tillable property in that county.
EFFECTIVE
DATE.� This section is effective for
assessment year 2012 and thereafter.
Sec. 7.� Minnesota
Statutes 2009 Supplement, section 273.114, subdivision 1, is amended to read:
Subdivision 1.� Definitions.� (a) In this section, the terms defined in
this subdivision have the meanings given them.
(b) "Conservation management assessment
plan" means a written document approved by the soil and water conservation
district providing a framework for site-specific healthy, productive, and
sustainable conservation resources.� A
conservation management assessment plan must include at least the
following:
(1) conservation management goals for the land;
(2) a reliable field inventory of the individual
conservation practices and cover types United States Department of
Agriculture field map;
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(3) a description of the soil type and quality;
(4) an aerial photo or map of the vegetation and other natural
features of the land clearly indicating the boundaries of the conservation
land;
(5) the proposed future conditions of the land;
(6) prescriptions to meet proposed future conditions of the
land;
(7) a recommended timetable for implementing the prescribed
practices; and
(8) a legal description of the land encompassing the parcels
included in the plan.
(c) The Board of Water and Soil Resources shall develop and
distribute guidance for conservation management assessment plan
preparation and approval.
(d) The commissioner of revenue is the final arbiter of
disputes arising over plan approvals.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 8.� Minnesota
Statutes 2009 Supplement, section 273.114, subdivision 2, is amended to read:
Subd. 2.� Requirements.� Class 2a or 2b property that had been
assessed under Minnesota Statutes 2006, section 273.111, or that is part of an
agricultural homestead under Minnesota Statutes, section 273.13, subdivision
23, paragraph (a), is entitled to valuation and tax deferment under this
section if:
(1) the land consists of at least ten acres;
(2) a conservation management assessment plan
for the land must be prepared by an approved plan writer and implemented during
the period in which the land is subject to valuation and deferment under this
section;
(3) the land must be enrolled for a minimum of ten eight
years; and
(4) there are no delinquent property taxes on the land.;
and
Real estate may (5) the property is not be
also enrolled for valuation and deferment under this section and
section 273.111, oder 273.112, or 273.117, or chapter 290C,
concurrently or 473H.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 9.� Minnesota
Statutes 2009 Supplement, section 273.114, subdivision 5, is amended to read:
Subd. 5.� Application and covenant agreement.� (a) Application for deferment of taxes
and assessment under this section shall be filed by May 1 of the year prior to
the year in which the taxes are payable.�
Any application filed under this subdivision and granted shall continue
in effect for subsequent years until the termination of the covenant agreement
under paragraph (b).� The application
must be filed with the assessor of the taxing district in which the real
property is located on the form prescribed by the commissioner of revenue.� The assessor may require proof by affidavit
or otherwise that the property qualifies under subdivision 2.
(b) The owner of the property must sign a covenant agreement
that is filed with the county recorder and recorded in the county where the
property is located.� The covenant
agreement must include all of the following:
(1) legal description of the area to which the covenant
applies;
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(2) name and address of the owner;
(3) a statement that the land described in the covenant must
be kept as rural preserve land, which meets the requirements of subdivision 2,
for the duration of the covenant;
(4) a statement that the landowner may terminate the covenant
agreement by notifying the county assessor in writing five three
years in advance of the date of proposed termination, provided that the notice
of intent to terminate may not be given at any time before the land has been
subject to the covenant for a period of five years;
(5) a statement that the covenant is binding on the owner or
the owner's successor or assigns and runs with the land; and
(6) a witnessed signature of the owner, agreeing by covenant,
to maintain the land as described in subdivision 2.
(c) After a covenant under this section has been terminated,
the land that had been subject to the covenant is ineligible for subsequent
valuation under this section for a period of three years after the termination.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 10.�
Minnesota Statutes 2009 Supplement, section 273.124, subdivision 3a, is
amended to read:
Subd. 3a.� Manufactured home park cooperative.� (a) When a manufactured home park
is owned by a corporation or association organized under chapter 308A or 308B,
and each person who owns a share or shares in the corporation or association is
entitled to occupy a lot within the park, the corporation or association may
claim homestead treatment for each lot occupied by a shareholder the
park.� Each lot must be designated by
legal description or number, and each lot is limited to not more than one-half
acre of land for each homestead.
(b) The manufactured home park shall be valued and
assessed as if it were homestead property within class 1 entitled to
homestead treatment if all of the following criteria are met:
(1) the occupant is using the property as a permanent
residence;
(2) the occupant or the cooperative corporation or
association is paying the ad valorem property taxes and any special assessments
levied against the land and structure either directly, or indirectly through
dues to the corporation or association; and
(3) (2) the corporation or association organized
under chapter 308A or 308B is wholly owned by persons having a right to occupy
a lot owned by the corporation or association.
(c) A charitable corporation, organized under the laws of
Minnesota with no outstanding stock, and granted a ruling by the Internal
Revenue Service for 501(c)(3) tax-exempt status, qualifies for homestead
treatment with respect to member residents of the a manufactured
home park who if its members hold residential participation
warrants entitling them to occupy a lot in the manufactured home park.
(d) "Homestead treatment" under this subdivision
means the class rate provided for class 4c property classified under section
273.13, subdivision 25, paragraph (d), clause (5), item (ii).� The homestead market value credit under
section 273.1384 does not apply and the property taxes assessed against the
park shall not be included in the determination of taxes payable for rent paid
under section 290A.03.
EFFECTIVE
DATE.� This section is effective for taxes
payable in 2011 and thereafter.
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Sec. 11.� Minnesota Statutes 2008, section 273.124,
subdivision 8, is amended to read:
Subd. 8.� Homestead
owned by or leased to family farm corporation, joint farm venture, limited
liability company, or partnership.� (a)
Each family farm corporation; each joint family farm venture; and each limited
liability company or partnership which operates a family farm; is entitled to
class 1b under section 273.13, subdivision 22, paragraph (b), or class 2a
assessment for one homestead occupied by a shareholder, member, or partner
thereof who is residing on the land, and actively engaged in farming of the land
owned by the family farm corporation, joint family farm venture, limited
liability company, or partnership.�
Homestead treatment applies even if legal title to the property is in
the name of the family farm corporation, joint family farm venture, limited liability
company, or partnership, and not in the name of the person residing on it.
"Family farm
corporation," "family farm," and "partnership operating a
family farm" have the meanings given in section 500.24, except that the
number of allowable shareholders, members, or partners under this subdivision
shall not exceed 12.� "Limited
liability company" has the meaning contained in sections 322B.03,
subdivision 28, and 500.24, subdivision 2, paragraphs (l) and (m).� "Joint family farm venture" means a
cooperative agreement among two or more farm enterprises authorized to operate
a family farm under section 500.24.
(b) In addition to property
specified in paragraph (a), any other residences owned by family farm
corporations, joint family farm ventures, limited liability companies, or
partnerships described in paragraph (a) which are located on agricultural land
and occupied as homesteads by its shareholders, members, or partners who are
actively engaged in farming on behalf of that corporation, joint farm venture,
limited liability company, or partnership must also be assessed as class 2a
property or as class 1b property under section 273.13.
(c) Agricultural property
that is owned by a member, partner, or shareholder of a family farm corporation
or joint family farm venture, limited liability company operating a family
farm, or by a partnership operating a family farm and leased to the family farm
corporation, limited liability company, partnership, or joint farm venture, as
defined in paragraph (a), is eligible for classification as class 1b or class
2a under section 273.13, if the owner is actually residing on the property, and
is actually engaged in farming the land on behalf of that corporation, joint
farm venture, limited liability company, or partnership.� This paragraph applies without regard to any
legal possession rights of the family farm
corporation, joint family farm venture, limited liability company, or
partnership under the lease.
(d) Agricultural property
that (1) is owned by a family farm corporation, joint farm venture, limited
liability company, or partnership and (2) is contiguous to a class 2a homestead
under section 273.13, subdivision 23, or if noncontiguous, is located in the
same township or city, or not farther than four townships or cities, or
combination thereof from a class 2a homestead, and the class 2a homestead is
owned by one of the shareholders, members, or partners; is entitled to receive
the first tier homestead class rate up to the first tier maximum market value
on any remaining market value not received on the shareholder's, member's, or
partner's homestead class 2a property.�
The owner must notify the county assessor by July 1 that a portion of
the market value under this subdivision may be eligible for homestead
classification for the current assessment year, for taxes payable in the
following year.
EFFECTIVE DATE.� This section is effective for assessment year 2010
and thereafter, for taxes payable in 2011 and thereafter.
Sec. 12.� Minnesota Statutes 2008, section 273.124,
subdivision 14, is amended to read:
Subd. 14.� Agricultural
homesteads; special provisions.� (a)
Real estate of less than ten acres that is the homestead of its owner must be
classified as class 2a under section 273.13, subdivision 23, paragraph (a), if:�
(1) the parcel on which the
house is located is contiguous on at least two sides to (i) agricultural land,
(ii) land owned or administered by the United States Fish and Wildlife Service,
or (iii) land administered by the Department of Natural Resources on which in
lieu taxes are paid under sections 477A.11 to 477A.14;
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(2) its owner also owns a noncontiguous parcel of
agricultural land that is at least 20 acres;
(3) the noncontiguous land is located not farther than four townships
or cities, or a combination of townships or cities from the homestead; and
(4) the agricultural use value of the noncontiguous land and
farm buildings is equal to at least 50 percent of the market value of the
house, garage, and one acre of land.�
Homesteads initially classified as class
2a under the provisions of this paragraph shall remain classified as class 2a,
irrespective of subsequent changes in the use of adjoining properties, as long
as the homestead remains under the same ownership, the owner owns a
noncontiguous parcel of agricultural land that is at least 20 acres, and the
agricultural use value qualifies under clause (4).� Homestead classification under this paragraph
is limited to property that qualified under this paragraph for the 1998
assessment.�
(b)(i) Agricultural property shall be classified as the
owner's homestead, to the same extent as other agricultural homestead property,
if all of the following criteria are met:�
(1) the property consists of at least 40 acres including
undivided government lots and correctional 40's;
(2) the owner, the owner's spouse, the son or daughter of the
owner or owner's spouse, the brother or sister of the owner or owner's spouse,
or the grandson or granddaughter of the owner or the owner's spouse, is
actively farming the agricultural property, either on the person's own behalf
as an individual or on behalf of a partnership operating a family farm, family
farm corporation, joint family farm venture, or limited liability company of
which the person is a partner, shareholder, or member;
(3) both the owner of the agricultural property and the
person who is actively farming the agricultural property under clause (2), are
Minnesota residents;
(4) neither the owner nor the spouse of the owner claims
another agricultural homestead in Minnesota; and
(5) neither the owner nor the person actively farming the
property lives farther than four townships or cities, or a combination of four
townships or cities, from the agricultural property, except that if the owner
or the owner's spouse is required to live in employer-provided housing, the
owner or owner's spouse, whichever is actively farming the agricultural
property, may live more than four townships or cities, or combination of four
townships or cities from the agricultural property.�
The relationship under this paragraph may be either by blood
or marriage.�
(ii) Real property held by a trustee under a trust is
eligible for agricultural homestead classification under this paragraph if the
qualifications in clause (i) are met, except that "owner" means the
grantor of the trust.�
(iii) Property containing the residence of an owner who owns
qualified property under clause (i) shall be classified as part of the owner's
agricultural homestead, if that property is also used for noncommercial storage
or drying of agricultural crops.�
(c) Noncontiguous land shall be included as part of a
homestead under section 273.13, subdivision 23, paragraph (a), only if the
homestead is classified as class 2a and the detached land is located in the
same township or city, or not farther than four townships or cities or
combination thereof from the homestead.�
Any taxpayer of these noncontiguous lands must notify the county assessor
that the noncontiguous land is part of the taxpayer's homestead, and, if the
homestead is located in another county, the taxpayer must also notify the
assessor of the other county.�
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(d) Agricultural land used
for purposes of a homestead and actively farmed by a person holding a vested
remainder interest in it must be classified as a homestead under section
273.13, subdivision 23, paragraph (a).�
If agricultural land is classified class 2a, any other dwellings on the
land used for purposes of a homestead by persons holding vested remainder
interests who are actively engaged in farming the property, and up to one acre
of the land surrounding each homestead and reasonably necessary for the use of
the dwelling as a home, must also be assessed class 2a.�
(e) Agricultural land and
buildings that were class 2a homestead property under section 273.13,
subdivision 23, paragraph (a), for the 1997
assessment shall remain classified as agricultural homesteads for subsequent
assessments if:�
(1) the property owner
abandoned the homestead dwelling located on the agricultural homestead as a
result of the April 1997 floods;
(2) the property is located
in the county of Polk, Clay, Kittson, Marshall, Norman, or Wilkin;
(3) the agricultural land
and buildings remain under the same ownership for the current assessment year
as existed for the 1997 assessment year and continue to be used for
agricultural purposes;
(4) the dwelling occupied by
the owner is located in Minnesota and is within 30 miles of one of the parcels
of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the
county assessor that the relocation was due to the 1997 floods, and the owner
furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling.�
Further notifications to the assessor are not required if the property
continues to meet all the requirements in this paragraph and any dwellings on
the agricultural land remain uninhabited.�
(f) Agricultural land and
buildings that were class 2a homestead property under section 273.13,
subdivision 23, paragraph (a), for the 1998 assessment shall remain classified
agricultural homesteads for subsequent assessments if:�
(1) the property owner
abandoned the homestead dwelling located on the agricultural homestead as a
result of damage caused by a March 29, 1998, tornado;
(2) the property is located
in the county of Blue Earth, Brown, Cottonwood, LeSueur, Nicollet, Nobles, or
Rice;
(3) the agricultural land
and buildings remain under the same ownership for the current assessment year
as existed for the 1998 assessment year;
(4) the dwelling occupied by
the owner is located in this state and is within 50 miles of one of the parcels
of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the
county assessor that the relocation was due to a March 29, 1998, tornado, and
the owner furnishes the assessor any information deemed necessary by the
assessor in verifying the change in homestead dwelling.� For taxes payable in 1999, the owner must
notify the assessor by December 1, 1998.�
Further notifications to the assessor are not required if the property
continues to meet all the requirements in this paragraph and any dwellings on
the agricultural land remain uninhabited.�
(g) Agricultural property of
a family farm corporation, joint family farm venture, family farm limited
liability company, or partnership operating a family farm as described under
subdivision 8 shall be classified homestead, to the same extent as other
agricultural homestead property, if all of the following criteria are met:�
(1) the property consists of
at least 40 acres including undivided government lots and correctional 40's;
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(2) a shareholder, member, or partner of that entity is actively
farming the agricultural property;
(3) that shareholder, member, or partner who is actively
farming the agricultural property is a Minnesota resident;
(4) neither that shareholder, member, or partner, nor the
spouse of that shareholder, member, or partner claims another agricultural
homestead in Minnesota; and
(5) that shareholder, member, or partner does not live
farther than four townships or cities, or a combination of four townships or
cities, from the agricultural property.�
Homestead treatment applies under this paragraph for property
leased to a family farm corporation, joint farm venture, limited liability
company, or partnership operating a family farm if legal title to the property
is in the name of an individual who is a member, shareholder, or partner in the
entity.�
(h) To be eligible for the special agricultural homestead
under this subdivision, an initial full application must be submitted to the
county assessor where the property is located.�
Owners and the persons who are actively farming the property shall be
required to complete only a one-page abbreviated version of the application in
each subsequent year provided that none of the following items have changed
since the initial application:�
(1) the day-to-day operation, administration, and financial
risks remain the same;
(2) the owners and the persons actively farming the property
continue to live within the four townships or city criteria and are Minnesota
residents;
(3) the same operator of the agricultural property is listed
with the Farm Service Agency;
(4) a Schedule F or equivalent income tax form was filed for
the most recent year;
(5) the property's acreage is unchanged; and
(6) none of the property's acres have been enrolled in a
federal or state farm program since the initial application.�
The owners and any persons who are actively farming the
property must include the appropriate Social Security numbers, and sign and
date the application.� If any of the
specified information has changed since the full application was filed, the
owner must notify the assessor, and must complete a new application to
determine if the property continues to qualify for the special agricultural
homestead.� The commissioner of revenue
shall prepare a standard reapplication form for use by the assessors.�
(i) Agricultural land and buildings that were class 2a
homestead property under section 273.13, subdivision 23, paragraph (a), for the
2007 assessment shall remain classified agricultural homesteads for subsequent
assessments if:�
(1) the property owner abandoned the homestead dwelling
located on the agricultural homestead as a result of damage caused by the
August 2007 floods;
(2) the property is located in the county of Dodge, Fillmore,
Houston, Olmsted, Steele, Wabasha, or Winona;
(3) the agricultural land and buildings remain under the same
ownership for the current assessment year as existed for the 2007 assessment
year;
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(4) the dwelling occupied by
the owner is located in this state and is within 50 miles of one of the parcels
of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the
county assessor that the relocation was due to the August 2007 floods, and the
owner furnishes the assessor any information deemed necessary by the assessor
in verifying the change in homestead dwelling.�
For taxes payable in 2009, the owner must notify the assessor by
December 1, 2008.� Further notifications
to the assessor are not required if the property continues to meet all the
requirements in this paragraph and any dwellings on the agricultural land
remain uninhabited.�
(j) Agricultural land and
buildings that were class 2a homestead property under section 273.13,
subdivision 23, paragraph (a), for the 2008
assessment shall remain classified as agricultural homesteads for subsequent
assessments if:�
(1) the property owner
abandoned the homestead dwelling located on the agricultural homestead as a
result of the March 2009 floods;
(2) the property is located
in the county of Marshall;
(3) the agricultural land
and buildings remain under the same ownership for the current assessment year
as existed for the 2008 assessment year and continue to be used for
agricultural purposes;
(4) the dwelling occupied by
the owner is located in Minnesota and is within 50 miles of one of the parcels
of agricultural land that is owned by the taxpayer; and
(5) the owner notifies the
county assessor that the relocation was due to the 2009 floods, and the owner
furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. �Further notifications to the assessor are not
required if the property continues to meet all the requirements in this
paragraph and any dwellings on the agricultural land remain uninhabited.�
EFFECTIVE DATE.� This section is effective for assessment years 2010
and 2011, for taxes payable in 2011 and 2012.
Sec. 13.� Minnesota Statutes 2008, section 273.13,
subdivision 22, is amended to read:
Subd. 22.� Class
1.� (a) Except as provided in
subdivision 23 and in paragraphs (b) and (c), real estate which is residential
and used for homestead purposes is class 1a.�
In the case of a duplex or triplex in which one of the units is used for
homestead purposes, the entire property is deemed to be used for homestead
purposes.� The market value of class 1a
property must be determined based upon the value of the house, garage, and
land.
The first $500,000 of market
value of class 1a property has a net class rate of one percent of its market
value; and the market value of class 1a property that exceeds $500,000 has a class
rate of 1.25 percent of its market value.
(b) Class 1b property
includes homestead real estate or homestead manufactured homes used for the
purposes of a homestead by:
(1) any person who is blind
as defined in section 256D.35, or the blind person and the blind person's
spouse;
(2) any person who is
permanently and totally disabled or by the disabled person and the disabled
person's spouse; or
(3) the surviving spouse of
a permanently and totally disabled veteran homesteading a property classified
under this paragraph for taxes payable in 2008.
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Property is classified and
assessed under clause (2) only if the government agency or income-providing
source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and
that the property is not eligible for the valuation exclusion under subdivision
34.
Property is classified and
assessed under paragraph (b) only if the commissioner of revenue or the county
assessor certifies that the homestead occupant satisfies the requirements of
this paragraph.
Permanently and totally
disabled for the purpose of this subdivision means a condition which is
permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income.�
The first $50,000 market value of class 1b property has a net class rate
of .45 percent of its market value.� The
remaining market value of class 1b property has a class rate using the rates
for class 1a or class 2a property, whichever is appropriate, of similar market
value.
(c) Class 1c property is
commercial use real and personal property that abuts public water as defined in
section 103G.005, subdivision 15, and is devoted to temporary and seasonal
residential occupancy for recreational purposes but not devoted to commercial
purposes for more than 250 days in the year preceding the year of assessment,
and that includes a portion used as a homestead by the owner, which includes a
dwelling occupied as a homestead by a shareholder of a corporation that owns
the resort, a partner in a partnership that owns the resort, or a member of a
limited liability company that owns the resort even if the title to the
homestead is held by the corporation, partnership, or limited liability company.� For purposes of this clause, property is
devoted to a commercial purpose on a specific day if any portion of the
property, excluding the portion used exclusively as a homestead, is used for
residential occupancy and a fee is charged for residential occupancy.� Class 1c property must contain three or more
rental units.� A "rental unit"
is defined as a cabin, condominium, townhouse, sleeping room, or individual
camping site equipped with water and electrical hookups for recreational
vehicles.� Class 1c property must provide
recreational activities such as the rental of ice fishing houses, boats and
motors, snowmobiles, downhill or cross-country ski equipment; provide marina
services, launch services, or guide services; or sell bait and fishing tackle.� Any unit in which the right to use the
property is transferred to an individual or entity by deeded interest, or the
sale of shares or stock, no longer qualifies for class 1c even though it may
remain available for rent.� A camping pad
offered for rent by a property that otherwise qualifies for class 1c is also
class 1c, regardless of the term of the rental agreement, as long as the use of
the camping pad does not exceed 250 days.�
If an owner of property that had been classified as class 1c ceases
to use that property as a homestead but retains ownership of that property and
continues to operate it as a resort, and begins to occupy a second property
that is located in the same township as the original class 1c property, both
properties will be assessed as a single class 1c property, provided that the
second property would separately qualify to be assessed as class 1c property.� The portion of the property used as a
homestead is class 1a property under paragraph (a).� The remainder of the property is classified
as follows:� the first $600,000 of market
value is tier I, the next $1,700,000 of market value is tier II, and any
remaining market value is tier III.� The
class rates for class 1c are:� tier I,
0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent.� Owners of real and personal property devoted
to temporary and seasonal residential occupancy for recreation purposes in
which all or a portion of the property was devoted to commercial purposes for
not more than 250 days in the year preceding the year of assessment desiring
classification as class 1c, must submit a declaration to the assessor
designating the cabins or units occupied for 250 days or less in the year
preceding the year of assessment by January 15 of the assessment year.� Those cabins or units and a proportionate
share of the land on which they are located must be designated as class 1c as
otherwise provided.� The remainder of the
cabins or units and a proportionate share of the land on which they are located
must be designated as class 3a commercial.�
The owner of property desiring designation as class 1c property must
provide guest registers or other records demonstrating that the units for which
class 1c designation is sought were not occupied for more than 250 days in the
year preceding the assessment if so requested.�
The portion of a property operated as a (1) restaurant, (2) bar, (3)
gift shop, (4) conference center or meeting room, and (5) other nonresidential
facility operated on a commercial basis not directly related to temporary and
seasonal residential occupancy for recreation purposes does not qualify for
class 1c.�
(d) Class 1d property
includes structures that meet all of the following criteria:�
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(1) the
structure is located on property that is classified as agricultural property
under section 273.13, subdivision 23;
(2) the structure is
occupied exclusively by seasonal farm workers during the time when they work on
that farm, and the occupants are not charged rent for the privilege of
occupying the property, provided that use of the structure for storage of farm
equipment and produce does not disqualify the property from classification
under this paragraph;
(3) the structure meets all
applicable health and safety requirements for the appropriate season; and
(4) the structure is not
salable as residential property because it does not comply with local
ordinances relating to location in relation to streets or roads.�
The market value of class 1d
property has the same class rates as class 1a property under paragraph
(a).�
EFFECTIVE DATE.� This section is effective for taxes levied in 2010,
payable in 2011, and thereafter.
Sec. 14.� Minnesota Statutes 2009 Supplement, section
273.13, subdivision 23, is amended to read:
Subd. 23.� Class
2.� (a) An agricultural homestead
consists of class 2a agricultural land that is homesteaded, along with any
class 2b rural vacant land that is contiguous to the class 2a land under the
same ownership.� The market value of the
house and garage and immediately surrounding one acre of land has the same
class rates as class 1a or 1b property under subdivision 22.� The value of the remaining land including
improvements up to the first tier valuation limit of agricultural homestead
property has a net class rate of 0.5 percent of market value.� The remaining property over the first tier
has a class rate of one percent of market value.� For purposes of this subdivision, the
"first tier valuation limit of agricultural homestead property" and
"first tier" means the limit certified under section 273.11,
subdivision 23.
(b) Class 2a agricultural
land consists of parcels of property, or portions thereof, that are
agricultural land and buildings.� Class
2a property has a net class rate of one percent of market value, unless it is
part of an agricultural homestead under paragraph (a).� Class 2a property must also include any
property that would otherwise be classified as 2b, but is interspersed with
class 2a property, including but not limited to sloughs, wooded wind shelters,
acreage abutting ditches, ravines, rock piles, land subject to a setback
requirement, and other similar land that is impractical for the assessor to
value separately from the rest of the property or that is unlikely to be able
to be sold separately from the rest of the property.
An assessor may classify the
part of a parcel described in this subdivision that is used for agricultural
purposes as class 2a and the remainder in the class appropriate to its use.
(c) Class 2b rural vacant
land consists of parcels of property, or portions thereof, that are unplatted
real estate, rural in character and not used for agricultural purposes,
including land used for growing trees for timber, lumber, and wood and wood
products, that is not improved with a structure.� The presence of a minor, ancillary
nonresidential structure as defined by the commissioner of revenue does not
disqualify the property from classification under this paragraph.� Any parcel of 20 acres or more improved with
a structure that is not a minor, ancillary nonresidential structure must be
split-classified, and ten acres must be assigned to the split parcel containing
the structure.� Class 2b property has a
net class rate of one percent of market value unless it is part of an
agricultural homestead under paragraph (a), or qualifies as class 2c under
paragraph (d).
(d) Class 2c managed forest
land consists of no less than 20 and no more than 1,920 acres statewide per
taxpayer that is being managed under a forest management plan that meets the
requirements of chapter 290C, but is not enrolled in the sustainable forest resource
management incentive program.� It has a
class rate of .65 percent, provided that the owner of the property must apply
to the assessor in order for the property to initially qualify for the reduced
rate and provide the information required by the assessor to verify that the
property qualifies for the reduced
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rate.� If the assessor receives the application and
information before May 1 in an assessment year, the property qualifies
beginning with that assessment year.� If
the assessor receives the application and information after April 30 in an
assessment year, the property may not qualify until the next assessment
year.� The commissioner of natural
resources must concur that the land is qualified.� The commissioner of natural resources shall
annually provide county assessors verification information on a timely
basis.� The presence of a minor,
ancillary nonresidential structure as defined by the commissioner of revenue
does not disqualify the property from classification under this paragraph.
(e) Agricultural land as used in this section means
contiguous acreage of ten acres or more, used during the preceding year for
agricultural purposes.�
"Agricultural purposes" as used in this section means the
raising, cultivation, drying, or storage of agricultural products for sale, or
the storage of machinery or equipment used in support of agricultural
production by the same farm entity.� For
a property to be classified as agricultural based only on the drying or storage
of agricultural products, the products being dried or stored must have been
produced by the same farm entity as the entity operating the drying or storage
facility.� "Agricultural
purposes" also includes enrollment in the Reinvest in Minnesota program
under sections 103F.501 to 103F.535 or the federal Conservation Reserve Program
as contained in Public Law 99-198 or a similar state or federal conservation
program if the property was classified as agricultural (i) under this
subdivision for the assessment year 2002 or (ii) in the year prior to its
enrollment.� Agricultural classification
shall not be based upon the market value of any residential structures on the
parcel or contiguous parcels under the same ownership.
(f) Real estate of less than ten acres, which is exclusively
or intensively used for raising or cultivating agricultural products, shall be
considered as agricultural land.� To
qualify under this paragraph, property that includes a residential structure
must be used intensively for one of the following purposes:
(i) for drying or storage of grain or storage of machinery or
equipment used to support agricultural activities on other parcels of property
operated by the same farming entity;
(ii) as a nursery, provided that only those acres used to
produce nursery stock are considered agricultural land;
(iii) for livestock or poultry confinement, provided that land
that is used only for pasturing and grazing does not qualify; or
(iv) for market farming; for purposes of this paragraph,
"market farming" means the cultivation of one or more fruits or
vegetables or production of animal or other agricultural products for sale to
local markets by the farmer or an organization with which the farmer is
affiliated.
(g) Land shall be classified as agricultural even if all or a
portion of the agricultural use of that property is the leasing to, or use by
another person for agricultural purposes.
Classification under this subdivision is not determinative
for qualifying under section 273.111.
(h) The property classification under this section
supersedes, for property tax purposes only, any locally administered
agricultural policies or land use restrictions that define minimum or maximum
farm acreage.
(i) The term "agricultural products" as used in
this subdivision includes production for sale of:
(1) livestock, dairy animals, dairy products, poultry and
poultry products, fur-bearing animals, horticultural and nursery stock, fruit
of all kinds, vegetables, forage, grains, bees, and apiary products by the
owner;
(2) fish bred for sale and consumption if the fish breeding
occurs on land zoned for agricultural use;
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(3) the commercial boarding
of horses, which may include related horse training and riding instruction,
if the boarding is done in conjunction with on property that is also
used for raising pasture to graze horses or raising or cultivating other
agricultural products as defined in clause (1);
(4) property which is owned
and operated by nonprofit organizations used for equestrian activities,
excluding racing;
(5) game birds and waterfowl
bred and raised for use on a shooting preserve licensed under section 97A.115;
(6) insects primarily bred
to be used as food for animals;
(7) trees, grown for sale as
a crop, including short rotation woody crops, and not sold for timber, lumber,
wood, or wood products; and
(8) maple syrup taken from
trees grown by a person licensed by the Minnesota Department of Agriculture
under chapter 28A as a food processor.
(j) If a parcel used for
agricultural purposes is also used for commercial or industrial purposes,
including but not limited to:
(1) wholesale and retail
sales;
(2) processing of raw
agricultural products or other goods;
(3) warehousing or storage
of processed goods; and
(4) office facilities for
the support of the activities enumerated in clauses (1), (2), and (3),
the assessor shall classify
the part of the parcel used for agricultural purposes as class 1b, 2a, or 2b,
whichever is appropriate, and the remainder in the class appropriate to its
use.� The grading, sorting, and packaging
of raw agricultural products for first sale is considered an agricultural
purpose.� A greenhouse or other building
where horticultural or nursery products are grown that is also used for the
conduct of retail sales must be classified as agricultural if it is primarily
used for the growing of horticultural or nursery products from seed, cuttings,
or roots and occasionally as a showroom for the retail sale of those
products.� Use of a greenhouse or
building only for the display of already grown horticultural or nursery
products does not qualify as an agricultural purpose.
(k) The assessor shall
determine and list separately on the records the market value of the homestead
dwelling and the one acre of land on which that dwelling is located.� If any farm buildings or structures are
located on this homesteaded acre of land, their market value shall not be
included in this separate determination.
(l) Class 2d airport landing
area consists of a landing area or public access area of a privately owned
public use airport.� It has a class rate
of one percent of market value.� To qualify
for classification under this paragraph, a privately owned public use airport
must be licensed as a public airport under section 360.018.� For purposes of this paragraph, "landing
area" means that part of a privately owned public use airport properly
cleared, regularly maintained, and made available to the public for use by
aircraft and includes runways, taxiways, aprons, and sites upon which are
situated landing or navigational aids.� A
landing area also includes land underlying both the primary surface and the
approach surfaces that comply with all of the following:
(i) the land is properly
cleared and regularly maintained for the primary purposes of the landing,
taking off, and taxiing of aircraft; but that portion of the land that contains
facilities for servicing, repair, or maintenance of aircraft is not included as
a landing area;
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(ii) the land is part of the airport property; and
(iii) the land is not used for commercial or residential
purposes.
The land
contained in a landing area under this paragraph must be described and
certified by the commissioner of transportation.� The certification is effective until it is
modified, or until the airport or landing area no longer meets the requirements
of this paragraph.� For purposes of this
paragraph, "public access area" means property used as an aircraft
parking ramp, apron, or storage hangar, or an arrival and departure building in
connection with the airport.
(m) Class 2e consists of land with a commercial aggregate
deposit that is not actively being mined and is not otherwise classified as
class 2a or 2b, provided that the land is not located in a county that has
elected to opt-out of the aggregate preservation program as provided in section
273.1115, subdivision 6.� It has a class
rate of one percent of market value.� To
qualify for classification under this paragraph, the property must be at least
ten contiguous acres in size and the owner of the property must record with the
county recorder of the county in which the property is located an affidavit
containing:
(1) a legal description of the property;
(2) a disclosure that the property contains a commercial
aggregate deposit that is not actively being mined but is present on the entire
parcel enrolled;
(3) documentation that the conditional use under the county or
local zoning ordinance of this property is for mining; and
(4) documentation that a permit has been issued by the local
unit of government or the mining activity is allowed under local
ordinance.� The disclosure must include a
statement from a registered professional geologist, engineer, or soil scientist
delineating the deposit and certifying that it is a commercial aggregate
deposit.
For purposes of this section and section 273.1115,
"commercial aggregate deposit" means a deposit that will yield
crushed stone or sand and gravel that is suitable for use as a construction
aggregate; and "actively mined" means the removal of top soil and
overburden in preparation for excavation or excavation of a commercial deposit.
(n) When any portion of the property under this subdivision or
subdivision 22 begins to be actively mined, the owner must file a supplemental
affidavit within 60 days from the day any aggregate is removed stating the
number of acres of the property that is actively being mined.� The acres actively being mined must be (1) valued
and classified under subdivision 24 in the next subsequent assessment year, and
(2) removed from the aggregate resource preservation property tax program under
section 273.1115, if the land was enrolled in that program.� Copies of the original affidavit and all
supplemental affidavits must be filed with the county assessor, the local
zoning administrator, and the Department of Natural Resources, Division of Land
and Minerals.� A supplemental affidavit
must be filed each time a subsequent portion of the property is actively mined,
provided that the minimum acreage change is five acres, even if the actual
mining activity constitutes less than five acres.
(o) The definitions prescribed by the commissioner under
paragraphs (c) and (d) are not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in
section 14.386 concerning exempt rules do not apply.
EFFECTIVE
DATE.� This section is effective for taxes
payable in 2011 and thereafter.
Sec. 15.� Minnesota
Statutes 2009 Supplement, section 273.13, subdivision 25, is amended to read:
Subd. 25.� Class 4.�
(a) Class 4a is residential real estate containing four or more
units and used or held for use by the owner or by the tenants or lessees of the
owner as a residence for rental periods of 30 days or more, excluding property
qualifying for class 4d.� Class 4a also
includes hospitals licensed under sections 144.50 to 144.56, other
Journal of the House - 106th Day - Saturday, May 15, 2010 -
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than hospitals exempt under section 272.02, and contiguous
property used for hospital purposes, without regard to whether the property has
been platted or subdivided.� The market
value of class 4a property has a class rate of 1.25 percent.
(b) Class 4b includes:
(1) residential real estate
containing less than four units that does not qualify as class 4bb, other than
seasonal residential recreational property;
(2) manufactured homes not
classified under any other provision;
(3) a dwelling, garage, and
surrounding one acre of property on a nonhomestead farm classified under
subdivision 23, paragraph (b) containing two or three units; and
(4) unimproved property that
is classified residential as determined under subdivision 33.
The market value of class 4b
property has a class rate of 1.25 percent.
(c) Class 4bb includes:
(1)
nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property; and
(2) a single family
dwelling, garage, and surrounding one acre of property on a nonhomestead farm
classified under subdivision 23, paragraph (b).
Class 4bb property has the same
class rates as class 1a property under subdivision 22.
Property that has been
classified as seasonal residential recreational property at any time during
which it has been owned by the current owner or spouse of the current owner
does not qualify for class 4bb.
(d) Class 4c property
includes:
(1) except as provided in
subdivision 22, paragraph (c), real and personal property devoted to temporary
and seasonal residential occupancy for recreation purposes, including real and
personal property devoted to temporary and seasonal residential occupancy for
recreation purposes and not devoted to commercial purposes for more than 250
days in the year preceding the year of assessment.� For purposes of this clause, property is
devoted to a commercial purpose on a specific day if any portion of the
property is used for residential occupancy, and a fee is charged for
residential occupancy.� Class 4c property
under this clause must contain three or more rental units.� A "rental unit" is defined as a
cabin, condominium, townhouse, sleeping room, or individual camping site
equipped with water and electrical hookups for recreational vehicles.� Class 4c property under this clause must
provide recreational activities such as renting ice fishing houses, boats and
motors, snowmobiles, downhill or cross-country ski equipment; provide marina
services, launch services, or guide services; or sell bait and fishing
tackle.� A camping pad offered for rent
by a property that otherwise qualifies for class 4c under this clause is also
class 4c under this clause regardless of the term of the rental agreement, as
long as the use of the camping pad does not exceed 250 days.� In order for a property to be classified as
class 4c, seasonal residential recreational for commercial purposes under this
clause, at least 40 percent of the annual gross lodging receipts related to the
property must be from business conducted during 90 consecutive days and either
(i) at least 60 percent of all paid bookings by lodging guests during the year
must be for periods of at least two consecutive nights; or (ii) at least 20
percent of the annual gross receipts must be from charges for rental of fish
houses, boats and motors, snowmobiles, downhill or cross-country ski equipment,
or charges for marina services, launch services, and guide services, or the
sale of bait and fishing tackle.� For
purposes of this determination, a paid booking of five or more nights shall be
counted as two
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bookings.� Class 4c property classified under this
clause also includes commercial use real property used exclusively for
recreational purposes in conjunction with other class 4c property classified
under this clause and devoted to temporary and seasonal residential occupancy
for recreational purposes, up to a total of two acres, provided the property is
not devoted to commercial recreational use for more than 250 days in the year
preceding the year of assessment and is located within two miles of the class
4c property with which it is used.�
Owners of real and personal property devoted to temporary and seasonal
residential occupancy for recreation purposes and all or a portion of which was
devoted to commercial purposes for not more than 250 days in the year preceding
the year of assessment desiring classification as class 4c, must submit a
declaration to the assessor designating the cabins or units occupied for 250
days or less in the year preceding the year of assessment by January 15 of the
assessment year.� Those cabins or units
and a proportionate share of the land on which they are located must be
designated class 4c under this clause as otherwise provided.� The remainder of the cabins or units and a
proportionate share of the land on which they are located will be designated as
class 3a.� The owner of property desiring
designation as class 4c property under this clause must provide guest registers
or other records demonstrating that the units for which class 4c designation is
sought were not occupied for more than 250 days in the year preceding the
assessment if so requested.� The portion
of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4)
conference center or meeting room, and (5) other nonresidential facility
operated on a commercial basis not directly related to temporary and seasonal
residential occupancy for recreation purposes does not qualify for class 4c;
(2) qualified property used
as a golf course if:
(i) it is open to the public
on a daily fee basis.� It may charge
membership fees or dues, but a membership fee may not be required in order to
use the property for golfing, and its green fees for golfing must be comparable
to green fees typically charged by municipal courses; and
(ii) it meets the
requirements of section 273.112, subdivision 3, paragraph (d).
A structure used as a
clubhouse, restaurant, or place of refreshment in conjunction with the golf
course is classified as class 3a property;
(3) real property up to a
maximum of three acres of land owned and used by a nonprofit community service
oriented organization and not used for residential purposes on either a
temporary or permanent basis, provided that:
(i) the property is not used
for a revenue-producing activity for more than six days in the calendar year
preceding the year of assessment; or
(ii) the organization makes
annual charitable contributions and donations at least equal to the property's
previous year's property taxes and the property is allowed to be used for
public and community meetings or events for no charge, as appropriate to the
size of the facility.
For purposes of this clause,
(A) "charitable
contributions and donations" has the same meaning as lawful gambling
purposes under section 349.12, subdivision 25, excluding those purposes
relating to the payment of taxes, assessments, fees, auditing costs, and
utility payments;
(B) "property
taxes" excludes the state general tax;
(C) a "nonprofit
community service oriented organization" means any corporation, society,
association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is
exempt from federal income taxation pursuant to section 501(c)(3), (8), (10),
or (19) of the Internal Revenue Code; and
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(D) "revenue-producing activities" shall include
but not be limited to property or that portion of the property that is used as
an on-sale intoxicating liquor or 3.2 percent malt liquor establishment
licensed under chapter 340A, a restaurant open to the public, bowling alley, a
retail store, gambling conducted by organizations licensed under chapter 349,
an insurance business, or office or other space leased or rented to a lessee
who conducts a for-profit enterprise on the premises.
Any portion
of the property not qualifying under either item (i) or (ii) is class 3a.� The use of the property for social events
open exclusively to members and their guests for periods of less than 24 hours,
when an admission is not charged nor any revenues are received by the organization
shall not be considered a revenue-producing activity.
The organization shall maintain records of its charitable
contributions and donations and of public meetings and events held on the
property and make them available upon request any time to the assessor to
ensure eligibility.� An organization
meeting the requirement under item (ii) must file an application by May 1 with
the assessor for eligibility for the current year's assessment.� The commissioner shall prescribe a uniform
application form and instructions;
(4) postsecondary student housing of not more than one acre
of land that is owned by a nonprofit corporation organized under chapter 317A
and is used exclusively by a student cooperative, sorority, or fraternity for
on-campus housing or housing located within two miles of the border of a
college campus;
(5)(i) manufactured home parks as defined in section
327.14, subdivision 3, excluding manufactured home parks described in section
273.124, subdivision 3a, and (ii) manufactured home parks as defined in section
327.14, subdivision 3, that are described in section 273.124, subdivision 3a;
(6) real property that is actively and exclusively devoted to
indoor fitness, health, social, recreational, and related uses, is owned and
operated by a not-for-profit corporation, and is located within the
metropolitan area as defined in section 473.121, subdivision 2;
(7) a leased or privately owned noncommercial aircraft
storage hangar not exempt under section 272.01, subdivision 2, and the land on
which it is located, provided that:
(i) the land is on an airport owned or operated by a city,
town, county, Metropolitan Airports Commission, or group thereof; and
(ii) the land lease, or any ordinance or signed agreement
restricting the use of the leased premise, prohibits commercial activity
performed at the hangar.
If a hangar classified under this clause is sold after June
30, 2000, a bill of sale must be filed by the new owner with the assessor of
the county where the property is located within 60 days of the sale;
(8) a privately owned noncommercial aircraft storage hangar
not exempt under section 272.01, subdivision 2, and the land on which it is
located, provided that:
(i) the land abuts a public airport; and
(ii) the owner of the aircraft storage hangar provides the
assessor with a signed agreement restricting the use of the premises,
prohibiting commercial use or activity performed at the hangar; and
(9) residential real estate, a portion of which is used by
the owner for homestead purposes, and that is also a place of lodging, if all
of the following criteria are met:
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(i) rooms are provided for
rent to transient guests that generally stay for periods of 14 or fewer days;
(ii) meals are provided to
persons who rent rooms, the cost of which is incorporated in the basic room
rate;
(iii) meals are not provided
to the general public except for special events on fewer than seven days in the
calendar year preceding the year of the assessment; and
(iv) the owner is the
operator of the property.
The market value subject to
the 4c classification under this clause is limited to five rental units.� Any rental units on the property in excess of
five, must be valued and assessed as class 3a.�
The portion of the property used for purposes of a homestead by the
owner must be classified as class 1a property under subdivision 22;
(10) real property up to a
maximum of three acres and operated as a restaurant as defined under section
157.15, subdivision 12, provided it:� (A)
is located on a lake as defined under section 103G.005, subdivision 15, paragraph
(a), clause (3); and (B) is either devoted to commercial purposes for not more
than 250 consecutive days, or receives at least 60 percent of its annual gross
receipts from business conducted during four consecutive months.� Gross receipts from the sale of alcoholic
beverages must be included in determining the property's qualification under
subitem (B).� The property's primary
business must be as a restaurant and not as a bar.� Gross receipts from gift shop sales located
on the premises must be excluded.� Owners
of real property desiring 4c classification under this clause must submit an
annual declaration to the assessor by February 1 of the current assessment
year, based on the property's relevant information for the preceding assessment
year; and
(11) lakeshore and riparian
property and adjacent land, not to exceed six acres, used as a marina, as
defined in section 86A.20, subdivision 5, which is made accessible to the
public and devoted to recreational use for marina services.� The marina owner must annually provide
evidence to the assessor that it provides services, including lake or river
access to the public by means of an access ramp or other facility that is
either located on the property of the marina or at a publicly owned site that
abuts the property of the marina.� No
more than 800 feet of lakeshore may be included in this classification.� Buildings used in conjunction with a marina
for marina services, including but not limited to buildings used to provide
food and beverage services, fuel, boat repairs, or the sale of bait or fishing
tackle, are classified as class 3a property.
Class 4c property has a
class rate of 1.5 percent of market value, except that (i) each parcel of
seasonal residential recreational property not used for commercial purposes has
the same class rates as class 4bb property, (ii) manufactured home parks
assessed under clause (5), item (i), have the same class rate as class
4b property, and the market value of manufactured home parks assessed under
clause (5), item (ii), has the same class rate as class 4d property if more
than 50 percent of the lots in the park are occupied by shareholders in the
cooperative corporation or association and a class rate of one percent if 50
percent or less of the lots are so occupied, (iii) commercial-use seasonal
residential recreational property and marina recreational land as described in
clause (11), has a class rate of one percent for the first $500,000 of market
value, and 1.25 percent for the remaining market value, (iv) the market value
of property described in clause (4) has a class rate of one percent, (v) the
market value of property described in clauses (2), (6), and (10) has a class
rate of 1.25 percent, and (vi) that portion of the market value of property in
clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
(e) Class 4d property is
qualifying low-income rental housing certified to the assessor by the Housing
Finance Agency under section 273.128, subdivision 3.� If only a portion of the units in the
building qualify as low-income rental housing units as certified under section
273.128, subdivision 3, only the proportion of qualifying units to the total
number of units in the building qualify for class 4d.� The remaining portion of the building shall be
classified by the assessor based upon its use.�
Class 4d also includes the same proportion of land as the qualifying
low-income rental housing units are to the total units in the building.� For all properties qualifying as class 4d,
the market value determined by the assessor must be based on the normal
approach to value using normal unrestricted rents.
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Class 4d property has a class rate of 0.75 percent.
EFFECTIVE
DATE.� This section is effective for taxes
levied in 2010, payable in 2011 and thereafter.
Sec. 16.� Minnesota
Statutes 2009 Supplement, section 275.065, subdivision 3, is amended to read:
Subd. 3.� Notice of proposed property taxes.� (a) The county auditor shall prepare and
the county treasurer shall deliver after November 10 and on or before November
24 each year, by first class mail to each taxpayer at the address listed on the
county's current year's assessment roll, a notice of proposed property
taxes.� Upon written request by the
taxpayer, the treasurer may send the notice in electronic form or by electronic
mail instead of on paper or by ordinary mail.
(b) The commissioner of revenue shall prescribe the form of
the notice.
(c) The notice must inform taxpayers that it contains the
amount of property taxes each taxing authority proposes to collect for taxes
payable the following year.� In the case
of a town, or in the case of the state general tax, the final tax amount will
be its proposed tax.� The notice must
clearly state for each city, county, school district, regional library
authority established under section 134.201, and metropolitan taxing districts
as defined in paragraph (i), the time and place of the taxing authorities'
regularly scheduled meetings in which the budget and levy will be discussed and
the final budget and levy determined, which must occur after November 24.� The taxing authorities must provide the
county auditor with the information to be included in the notice on or before
the time it certifies its proposed levy under subdivision 1.� The public must be allowed to speak at the
meetings and the meetings shall not be held before 6:00 p.m. It must provide a
telephone number for the taxing authority that taxpayers may call if they have
questions related to the notice and an address where comments will be received
by mail, except that no notice required under this section shall be
interpreted as requiring the printing of a personal telephone number or address
as the contact information for a taxing authority.� If a taxing authority does not maintain
public offices where telephone calls can be received by the authority, the
authority may inform the county of the lack of a public telephone number and
the county shall not list a telephone number for that taxing authority.
(d) The notice must state for each parcel:
(1) the market value of the property as determined under
section 273.11, and used for computing property taxes payable in the following
year and for taxes payable in the current year as each appears in the records
of the county assessor on November 1 of the current year; and, in the case of
residential property, whether the property is classified as homestead or nonhomestead.� The notice must clearly inform taxpayers of
the years to which the market values apply and that the values are final
values;
(2) the items listed below, shown separately by county, city
or town, and state general tax, net of the residential and agricultural
homestead credit under section 273.1384, voter approved school levy, other
local school levy, and the sum of the special taxing districts, and as a total
of all taxing authorities:
(i) the actual tax for taxes payable in the current year; and
(ii) the proposed tax amount.
If the county levy under clause (2) includes an amount for a
lake improvement district as defined under sections 103B.501 to 103B.581, the
amount attributable for that purpose must be separately stated from the
remaining county levy amount.
In the case of a town or the state general tax, the final tax
shall also be its proposed tax unless the town changes its levy at a special
town meeting under section 365.52.� If a
school district has certified under section 126C.17, subdivision 9, that a
referendum will be held in the school district at the November general
election, the county
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auditor must note next to the school district's proposed
amount that a referendum is pending and that, if approved by the voters, the
tax amount may be higher than shown on the notice.� In the case of the city of Minneapolis, the
levy for Minneapolis Park and Recreation shall be listed separately from the
remaining amount of the city's levy.� In
the case of the city of St. Paul, the levy for the St. Paul Library
Agency must be listed separately from the remaining amount of the city's
levy.� In the case of Ramsey County, any
amount levied under section 134.07 may be listed separately from the remaining
amount of the county's levy.� In the case
of a parcel where tax increment or the fiscal disparities areawide tax under
chapter 276A or 473F applies, the proposed tax levy on the captured value or
the proposed tax levy on the tax capacity subject to the areawide tax must each
be stated separately and not included in the sum of the special taxing
districts; and
(3) the increase or decrease between the total taxes payable
in the current year and the total proposed taxes, expressed as a percentage.
For purposes of this section, the amount of the tax on
homesteads qualifying under the senior citizens' property tax deferral program
under chapter 290B is the total amount of property tax before subtraction of
the deferred property tax amount.
(e) The notice must clearly state that the proposed or final
taxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the proposed
taxes are certified, including bond referenda and school district levy
referenda;
(3) a levy limit increase approved by the voters by the first
Tuesday after the first Monday in November of the levy year as provided under
section 275.73;
(4) amounts necessary to pay cleanup or other costs due to a
natural disaster occurring after the date the proposed taxes are certified;
(5) amounts necessary to pay tort judgments against the taxing
authority that become final after the date the proposed taxes are certified;
and
(6) the contamination tax imposed on properties which
received market value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the county
auditor to prepare or the county treasurer to deliver the notice as required in
this section does not invalidate the proposed or final tax levy or the taxes
payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this section
lists the property as nonhomestead, and satisfactory documentation is provided
to the county assessor by the applicable deadline, and the property qualifies
for the homestead classification in that assessment year, the assessor shall
reclassify the property to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as a
residence for lease or rental periods of 30 days or more, the taxpayer must
either:
(1) mail or deliver a copy of the notice of proposed property
taxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the
premises of the property.
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The notice must be mailed or posted by the taxpayer by
November 27 or within three days of receipt of the notice, whichever is
later.� A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the
premises to which the notice must be mailed in order to fulfill the
requirements of this paragraph.
(i) For purposes of this subdivision and subdivision 6,
"metropolitan special taxing districts" means the following taxing
districts in the seven-county metropolitan area that levy a property tax for
any of the specified purposes listed below:
(1) Metropolitan Council under section 473.132, 473.167,
473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;
(2) Metropolitan Airports Commission under section 473.667,
473.671, or 473.672; and
(3) Metropolitan Mosquito Control Commission under section
473.711.
For purposes of this section, any levies made by the regional
rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, or Washington under chapter 398A shall be included with the appropriate
county's levy.
(j) The governing body of a county, city, or school district
may, with the consent of the county board, include supplemental information
with the statement of proposed property taxes about the impact of state aid
increases or decreases on property tax increases or decreases and on the level
of services provided in the affected jurisdiction.� This supplemental information may include
information for the following year, the current year, and for as many
consecutive preceding years as deemed appropriate by the governing body of the
county, city, or school district.� It may
include only information regarding:
(1) the impact of inflation as measured by the implicit price
deflator for state and local government purchases;
(2) population growth and decline;
(3) state or federal government action; and
(4) other financial factors that affect the level of property
taxation and local services that the governing body of the county, city, or
school district may deem appropriate to include.
The information may be presented using tables, written
narrative, and graphic representations and may contain instruction toward
further sources of information or opportunity for comment.
EFFECTIVE
DATE.� This section is effective for
notices prepared in 2010, for taxes payable in 2011 and thereafter.
Sec. 17.�
Minnesota Statutes 2008, section 275.71, subdivision 4, is amended to
read:
Subd. 4.� Adjusted levy limit base.� For taxes levied in 2008 through 2010,
the adjusted levy limit base is equal to the levy limit base computed under
subdivision 2 or section 275.72, multiplied by:
(1) one plus the lesser of 3.9 percent or the
percentage growth in the implicit price deflator, but the percentage shall
not be less than zero or exceed 3.9 percent;
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(2) one plus a percentage
equal to 50 percent of the percentage increase in the number of households, if
any, for the most recent 12-month period for which data is available; and
(3) one plus a percentage
equal to 50 percent of the percentage increase in the taxable market value of
the jurisdiction due to new construction of class 3 property, as defined in
section 273.13, subdivision 4, except for state-assessed utility and railroad
property, for the most recent year for which data is available.
EFFECTIVE DATE.� This section is effective for taxes levied in 2010
and thereafter.
Sec. 18.� Minnesota Statutes 2008, section 275.75, is
amended to read:
275.75 CHARTER EXEMPTION FOR AID LOSS.�
Notwithstanding any other
provision of a municipal charter that limits ad valorem taxes to a lesser
amount, or that would require voter approval for any increase, the governing
body of a municipality may by resolution increase its levy for taxes payable
in 2004 and 2005 only by an amount equal to the reduction in the amount of aid
it is certified to receive under sections 477A.011 to 477A.03 for that same
payable year compared to the amount certified for payment in 2003 in any
year by an amount equal to its special levies under section 275.70, subdivision
5, clauses 22 and 25.�
EFFECTIVE DATE.� This section is effective for levies payable in
calendar year 2011 and thereafter.
Sec. 19.� Minnesota Statutes 2008, section 276.02, is
amended to read:
276.02 TREASURER TO BE COLLECTOR.�
The county treasurer shall
collect all taxes extended on the tax lists of the county and the fines,
forfeitures, or penalties received by any person or officer for the use of the
county.� The treasurer shall collect the
taxes according to law and credit them to the proper funds.� This section does not apply to fines and
penalties accruing to municipal corporations for the violation of their
ordinances that are recoverable before a city justice.� Taxes, fines, interest, and penalties must be
paid with United States currency or by check oder, money order,
or electronic payments, including, but not limited to, automated clearing house
transactions and federal wires drawn on a bank or other financial
institution in the United States.� The
county board may by resolution authorize the treasurer to impose a charge for
any dishonored checks or electronic payments.� The charges for dishonored payment of
property taxes may be added to the tax, shall constitute a lien on the property,
and when collected shall be distributed to the county.
The county board may, by
resolution, authorize the treasurer and/or other designees to accept payments
of real property taxes by credit card provided that a fee is charged for its
use.� The fee charged must be
commensurate with the costs assessed by the card issuer.� If a credit card transaction under this
section is subsequently voided or otherwise reversed, the lien of real property
taxes under section 272.31 is revived and attaches in the manner and time
provided in that section as though the credit card transaction had never
occurred, and the voided or reversed credit card transaction shall not impair
the right of a lienholder under section 272.31 to enforce the lien in its
favor.�
EFFECTIVE DATE.� This section is effective for property taxes payable
in 2011 and thereafter.
Sec. 20.� Minnesota Statutes 2009 Supplement, section
279.01, subdivision 1, is amended to read:
Subdivision 1.� Due
dates; penalties.� Except as provided
in subdivision 3 or 4, on May 16 or 21 days after the postmark date on the
envelope containing the property tax statement, whichever is later, a penalty
accrues and thereafter is charged upon all unpaid taxes on real estate on the
current lists in the hands of the county treasurer.� The penalty is at a rate of two percent on
homestead property until May 31 and four percent on June 1.� The penalty on
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nonhomestead property is at
a rate of four percent until May 31 and eight percent on June 1.� This penalty does not accrue until June 1 of
each year, or 21 days after the postmark date on the envelope containing the
property tax statements, whichever is later, on commercial use real property
used for seasonal residential recreational purposes and classified as class 1c
or 4c, and on other commercial use real property classified as class 3a,
provided that over 60 percent of the gross income earned by the enterprise on
the class 3a property is earned during the months of May, June, July, and
August.� In order for the first half of
the tax due on class 3a property to be paid after May 15 and before June 1, or
21 days after the postmark date on the envelope containing the property tax
statement, whichever is later, without penalty, the owner of the property must
attach an affidavit to the payment attesting to compliance with the income
provision of this subdivision.�
Thereafter, for both homestead and nonhomestead property, on the first
day of each month beginning July 1, up to and including October 1 following, an
additional penalty of one percent for each month accrues and is charged on all
such unpaid taxes provided that if the due date was extended beyond May 15 as
the result of any delay in mailing property tax statements no additional
penalty shall accrue if the tax is paid by the extended due date.� If the tax is not paid by the extended due
date, then all penalties that would have accrued if the due date had been May
15 shall be charged.� When the taxes
against any tract or lot exceed $250 $100, one-half thereof may
be paid prior to May 16 or 21 days after the postmark date on the envelope
containing the property tax statement, whichever is later; and, if so paid, no
penalty attaches; the remaining one-half may be paid at any time prior to
October 16 following, without penalty; but, if not so paid, then a penalty of
two percent accrues thereon for homestead property and a penalty of four
percent on nonhomestead property.�
Thereafter, for homestead property, on the first day of November an
additional penalty of four percent accrues and on the first day of December
following, an additional penalty of two percent accrues and is charged on all
such unpaid taxes.� Thereafter, for
nonhomestead property, on the first day of November and December following, an
additional penalty of four percent for each month accrues and is charged on all
such unpaid taxes.� If one-half of such
taxes are not paid prior to May 16 or 21 days after the postmark date on the
envelope containing the property tax statement, whichever is later, the same
may be paid at any time prior to October 16, with accrued penalties to the date
of payment added, and thereupon no penalty attaches to the remaining one-half
until October 16 following.
This section applies to payment of personal property taxes assessed
against improvements to leased property, except as provided by section 277.01,
subdivision 3.
A county may provide by resolution that in the case of a
property owner that has multiple tracts or parcels with aggregate taxes
exceeding $250 $100, payments may be made in installments as
provided in this subdivision.
The county treasurer may accept payments of more or less than
the exact amount of a tax installment due.�
Payments must be applied first to the oldest installment that is due but
which has not been fully paid.� If the
accepted payment is less than the amount due, payments must be applied first to
the penalty accrued for the year or the installment being paid.� Acceptance of partial payment of tax does not
constitute a waiver of the minimum payment required as a condition for filing
an appeal under section 278.03 or any other law, nor does it affect the order
of payment of delinquent taxes under section 280.39.
EFFECTIVE
DATE.� This section is effective for taxes
payable in 2011 and thereafter.
Sec. 21.�
Minnesota Statutes 2008, section 279.025, is amended to read:
279.025 PAYMENT OF
DELINQUENT PROPERTY TAXES, SPECIAL ASSESSMENTS.�
Payment of delinquent property tax and related interest and
penalties and special assessments shall be paid with United States currency or
by check oder, money order, or electronic means, including, but
not limited to, automated clearing house transactions and federal wires
drawn on a bank or other financial institution in the United States.
EFFECTIVE
DATE.� This section is effective for
property taxes payable in 2011 and thereafter.
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Sec. 22.�
Minnesota Statutes 2008, section 428A.12, is amended to read:
428A.12 PETITION
REQUIRED.�
No action may be taken under sections 428A.13 and 428A.14
unless owners of 25 50 percent or more of the housing units that
would be subject to fees in the proposed housing improvement area file a
petition requesting a public hearing on the proposed action with the city
clerk.� No action may be taken under
section 428A.14 to impose a fee unless owners of 25 50 percent or
more of the housing units subject to the proposed fee file a petition
requesting a public hearing on the proposed fee with the city clerk or other
appropriate official.
EFFECTIVE
DATE.� This section is effective for
petitions filed beginning July 1, 2010.
Sec. 23.�
Minnesota Statutes 2008, section 428A.18, subdivision 2, is amended to
read:
Subd. 2.� Requirements for veto.� If residents of 35 45
percent or more of the housing units in the area subject to the fee file an
objection to the ordinance adopted by the city under section 428A.13 with the
city clerk before the effective date of the ordinance, the ordinance does not
become effective.� If owners of 35
45 percent or more of the housing units' tax capacity subject to the fee
under section 428A.14 file an objection with the city clerk before the
effective date of the resolution, the resolution does not become
effective.�
EFFECTIVE
DATE.� This section is effective beginning
July 1, 2010.
Sec. 24.�
Minnesota Statutes 2008, section 473H.05, subdivision 1, is amended to
read:
Subdivision 1.� Before March June 1 for next year's taxes.� An owner or owners of certified long-term
agricultural land may apply to the authority with jurisdiction over the land on
forms provided by the commissioner of agriculture for the creation of an
agricultural preserve at any time.� Land
for which application is received prior to March June 1 of any
year shall be assessed pursuant to section 473H.10 for taxes payable in the
following year.� Land for which
application is received on or after March June 1 of any year
shall be assessed pursuant to section 473H.10 in the following year.� The application shall be executed and
acknowledged in the manner required by law to execute and acknowledge a deed
and shall contain at least the following information and such other information
as the commissioner deems necessary:�
(a) Legal description of the area proposed to be designated
and parcel identification numbers if so designated by the county auditor and
the certificate of title number if the land is registered;
(b) Name and address of owner;
(c) An affidavit by the authority evidencing that the land is
certified long-term agricultural land at the date of application;
(d) A statement by the owner covenanting that the land shall
be kept in agricultural use, and shall be used in accordance with the
provisions of sections 473H.02 to 473H.17 which exist on the date of
application and providing that the restrictive covenant shall be binding on the
owner or the owner's successor or assignee, and shall run with the land.�
EFFECTIVE
DATE.� This section is effective the day
following final enactment, except that in 2010 the application date in this
section shall be extended to August 1.
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Sec. 25.� Minnesota
Statutes 2008, section 477A.17, is amended to read:
477A.17 LAKE VERMILION STATE
PARK AND SOUDAN
UNDERGROUND MINE STATE PARK; ANNUAL PAYMENTS.�
(a) Beginning in fiscal year 2010 2012, in lieu
of the payment amount provided under section 477A.12, subdivision 1, clause
(1), the county shall receive an annual payment for land acquired for Lake
Vermilion State Park, established in section 85.012, subdivision 38a, and
land within the boundary of Soudan Underground Mine State Park, established in
section 85.012, subdivision 53a, equal to 1.5 percent of the appraised
value of the land.
(b) For the purposes of this section, the appraised value of
the land acquired for Lake Vermilion State Park for the first five years after
acquisition shall be the purchase price of the land, plus the value of any
portion of the land that is acquired by donation.� The appraised value must be redetermined by
the county assessor every five years after the land is acquired.
(c) The annual payments under this section shall be
distributed to the taxing jurisdictions containing the property as
follows:� one-third to the school
districts; one-third to the town; and one-third to the county.� The payment to school districts is not a
county apportionment under section 127A.34 and is not subject to aid
recapture.� Each of those taxing jurisdictions
may use the payments for their general purposes.
(d) Except as provided in this section, the payments shall be
made as provided in sections 477A.11 to 477A.13.
Sec. 26.� Laws
2009, chapter 88, article 2, section 49, is amended to read:
Sec. 49.� TAX ABATEMENT; NEWLY CONSTRUCTED
RESIDENTIAL STRUCTURES IN FLOOD-DAMAGED CITIES.�
Subdivision 1.� Eligibility.� A residential structure qualifies for a
tax abatement under this section if:
(1) the structure is located in a city that is eligible to
designate a development zone under Minnesota Statutes, section 469.1731;
(2) the structure is located in a county designated as an
emergency area under presidential declaration FEMA-3304-EM;
(3) the structure is located on property classified as class
1a, 1b, 2a, 4a, 4b, 4bb, or 4d under Minnesota Statutes, section 273.13;
(4) no part of the structure was in existence prior to January
1, 2009, unless (i) the structure is located on property classified as 1a, 1b,
2a, 4b, or 4bb; (ii) a building permit was issued and construction commenced in
2008; and (iii) as of March 26, 2009, the property was owned by the original
builder, was not subject to any form of purchase contract or agreement, and had
never been occupied; and
(5) construction of the structure is commenced prior to
December 31, 2010 2011.�
For the purposes of this clause, construction is deemed to have been
commenced if a proper building permit has been issued and the mandatory footing
or foundation inspection has been completed.
Subd. 2.� Application.� Application for the abatement authorized under
this section must be filed by January 2 of the year following the year in which
construction began, except that those qualifying structures for which
construction commenced in 2008 must file an application no later than January
2, 2010, for assessment years 2010 and 2011.�
The application must be filed with the assessor of the county or city in
which the property is located on a form prescribed by the commissioner of
revenue.
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Subd. 3.� Tax
abated.� (a) For a property
qualifying under subdivision 1 and classified as either 1a, 1b, 2a, 4b, or 4bb,
the tax attributable to (1) $200,000 of market value, or (2) the entire market
value of the structure, whichever is less, shall be abated.� For a property qualifying under subdivision 1
and classified as class 4a or 4d, the tax attributable to (1) $20,000 of market
value per residential unit, or (2) the entire market value of the structure,
whichever is less, shall be abated.
(b) The abatement under
paragraph (a) shall be in effect for two taxes payable years, corresponding to
the two assessment years after construction has begun.� The abatement shall not apply to any special
assessments that have been levied against the property.
Subd. 4.� Reimbursement.� By May 1 of each taxes payable year in
which an abatement has been authorized under this section, the auditor shall
report the amount of taxes abated for each jurisdiction within the county to
the commissioner of revenue, on a form prescribed by the commissioner.� On or before September 1 of each taxes
payable year in which an abatement has been authorized under this section, the
commissioner of revenue shall reimburse each local jurisdiction for the amount
of taxes abated for the year under this section.
Subd. 5.� Appropriation.� The amount necessary to make the
reimbursements required under this section is annually appropriated to the
commissioner of revenue from the general fund.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 27.� Laws 2009, chapter 88, article 2, section 49,
the effective date, is amended to read:
EFFECTIVE DATE.� This section is effective
for assessment years 2010 to 2012 2013, for taxes payable in 2011
to 2013 2014.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 28.� FISCAL
DISPARITIES STUDY.�
The commissioner of revenue
shall conduct a study of the metropolitan revenue distribution program
contained in Minnesota Statutes, chapter 473F, commonly known as the fiscal
disparities program.� By February 1,
2012, the commissioner shall submit a report to the chairs and ranking minority
members of the house of representatives and senate tax committees consisting of
the findings of the study and identification of issues for policy makers to
consider.� The study must analyze:
(1) the extent to which the
benefits of economic growth of the region are shared throughout the region,
especially for growth that results from state or regional decisions;
(2) the program's impact on
the variability of tax rates across jurisdictions of the region;
(3) the
program's impact on the distribution of homestead property tax burdens across
jurisdictions of the region; and
(4) the relationship between
the impacts of the program and overburden on jurisdictions containing
properties that provide regional benefits, specifically the costs those
properties impose on their host jurisdictions in excess of their tax payments.
The report must include a
description of other property tax, aid, and local development programs that
interact with the fiscal disparities program.
EFFECTIVE DATE.� This section is effective January 1, 2011.
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Sec. 29.� FUND
TRANSFER FROM FISCAL DISPARITIES LEVY.�
For taxes payable in 2011
only, the Metropolitan Council must certify to the Ramsey County auditor the
amount of $100,000, to be certified by the Ramsey County auditor to the
administrative auditor as an addition to the Metropolitan Council's areawide
levy under Minnesota Statutes, section 473F.08, subdivision 5.� Upon receipt of the proceeds of this levy,
the Metropolitan Council must transfer this money to the commissioner of
management and budget for deposit into the
general fund.� One-half of the proceeds of
the levy must be transferred prior to June 30, 2011.
Sec. 30.� THIEF
RIVER FALLS AIRPORT AUTHORITY; SPECIAL LEVY AUTHORITY.�
If an airport authority is
established under Minnesota Statutes, section 360.042, that includes the city
of Thief River Falls within its boundaries, the authority may exercise its levy
authority through a levy on the referendum market value of the area, as defined
in Minnesota Statutes, section 126C.01, subdivision 3, in lieu of a levy on the
net tax capacity of the area.� If an authority
exercises its option under this section, the intent to do so must be stated in
the joint agreement establishing the authority.
EFFECTIVE DATE.� This section is effective the day following final
enactment, without local approval, as provided by Minnesota Statutes, section
654.023, subdivision 1, paragraph (a).
Sec. 31.� CITY
OF ST. CHARLES; ADDITIONAL AID, 2010 ONLY.�
$50,000 is appropriated in
fiscal year 2011 from the general fund to the commissioner of revenue to make a
payment to the city of St. Charles to compensate the city for a loss of a
major manufacturing facility in the city due to a fire in April 2009.� The payment shall be made with the December
2010 payment under Minnesota Statutes, section 477A.015.
Sec. 32.� APPROPRIATION.�
The sum of $50,000 in fiscal
year 2011 and $50,000 in fiscal year 2012 is appropriated from the general fund
to the commissioner of revenue to pay for the study required under section
28.� These are onetime appropriations.
ARTICLE 2
PROPERTY TAX REFORM,
ACCOUNTABILITY, VALUE, AND EFFICIENCY PROVISIONS
Section 1.� [6.90]
COUNCIL ON LOCAL RESULTS AND INNOVATION.�
Subdivision 1.� Creation.� The Council on Local Results and
Innovation consists of 11 members, as follows:
(1) the state auditor;
(2) two persons appointed by
the chair of the Property and Local Sales Tax Division of the house of
representatives Taxes Committee;
(3) two persons appointed by
the designated lead member of the largest minority party of the Property and
Local Sales Tax Division of the house of representatives Taxes Committee;
(4) four persons appointed
by the Subcommittee on Committees of the Senate Rules and Administration
Committee;
(5) one person appointed by
the Association of Minnesota Counties; and
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(6) one person appointed by the League of Minnesota Cities.
Each appointment under clauses (2) to (4) must include one
person with expertise or interest in county government and one person with
expertise or interest in city government.�
No members appointed under clauses (2) to (4) may be members of the
legislature.� The appointing authorities
must use their best efforts to ensure that a majority of council members have
experience with local performance measurement systems.� The membership of the council must include
geographically balanced representation as well as representation balanced
between large and small jurisdictions.�
The appointments under clauses (2) to (6) must be made within two months
of the date of enactment.
Appointees to the council under clauses (2) to (4) serve terms
of four years, except that one of each of the initial appointments under
clauses (2) to (4) shall serve a term of two years; each appointing agent must
designate which appointee is serving the two-year term.� Subsequent appointments for members appointed
under clauses (2) to (4) must be made by the council, including appointments to
replace any appointees who might resign from the council prior to completion of
their term.� Appointees under clauses (2)
to (4) are not eligible to vote on appointing their successor, nor on the
successors of other appointees whose terms are expiring contemporaneously.� In making appointments, the council shall
make all possible efforts to reflect the geographical distribution and meet the
qualifications of appointees required of the initial appointees.� Subsequent appointments for members appointed
under clauses (5) and (6) must be made by the original appointing authority.� Appointees to the council under clauses (2)
to (6) may serve no more than two consecutive terms.
Subd. 2.�
Duties.� (a) By February 15, 2011, the council
shall develop a standard set of approximately ten performance measures for counties
and ten performance measures for cities that will aid residents, taxpayers, and
state and local elected officials in determining the efficacy of counties and
cities in providing services, and measure residents' opinions of those
services.� In developing its measures,
the council must solicit input from private citizens.� Counties and cities that elect to participate
in the standard measures system shall report their results to the state auditor
under section 6.91, who shall compile the results and make them available to
all interested parties by publishing them on the auditor's Web site and report
them to the legislative tax committees.�
Each year after the initial designation of performance measures, the
council shall evaluate the usefulness of the standard set of performance
measures and may revise the set by adding or removing measures as it deems
appropriate.
(b) By February 15, 2012, the council shall develop minimum
standards for comprehensive performance measurement systems, which may vary by
size and type of governing jurisdiction.
(c) In addition to its specific duties under paragraphs (a)
and (b), the council shall generally promote the use of performance measurement
for governmental entities across the state and shall serve as a resource for
all governmental entities seeking to implement a system of local performance
measurement.� The council may highlight
and promote systems that are innovative, or are ones that it deems to be best
practices of local performance measurement systems across the state and
nation.� The council should give
preference in its recommendations to systems that are results-oriented.� The council may, with the cooperation of the
state auditor, establish and foster a collaborative network of practitioners of
local performance measurement systems.�
The council may support the Association of Minnesota Counties and the
League of Minnesota Cities to seek and receive private funding to provide
expert technical assistance to local governments for the purposes of
replicating best practices.
Subd. 3.�
Reports.� (a) The council shall report its
initial set of standard performance measures to the Property and Local Sales
Tax Division of the house of representatives Taxes Committee and the Taxes
Division on Property Taxes of the senate Taxes Committee by February 28, 2011.
(b) By February 1 of each subsequent year, the council shall
report to the committees with jurisdiction over taxes in the house of
representatives and the senate on participation in and results of the
performance measurement system, along with any revisions in the standard set of
performance measures for the upcoming year.�
These reports may be made by the state auditor in lieu of the council if
agreed to by the auditor and the council.
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Subd. 4.�
Operation of council.� (a) The state auditor shall convene
the initial meeting of the council.
(b) The chair of the council shall be
elected by the members.� Once elected, a
chair shall serve a term of two years.
(c) Members of the council serve without compensation.
(d) Council members shall share and rotate responsibilities
for administrative support of the council.
(e) Chapter 13D does not apply to meetings of the
council.� Meetings of the council must be
open to the public and the council must provide notice of a meeting on the
state auditor's Web site at least seven days before the meeting.� A meeting of the council occurs when a quorum
is present.
(f) The council must meet at least two times prior to the
initial release of the standard set of measurements.� After the initial set has been developed, the
council must meet a minimum of once per year.
Subd. 5.�
Termination.� The council expires on January 1,
2020.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 2.� [6.91] LOCAL PERFORMANCE MEASUREMENT AND
REPORTING.�
Subdivision 1.�
Reports of local performance
measures.� (a) A county or
city that elects to participate in the standard measures program must report
its results to its citizens annually through publication, direct mailing,
posting on the jurisdiction's Web site, or through a public hearing at which
the budget and levy will be discussed and public input allowed.
(b) Each year, jurisdictions participating in the local
performance measurement and improvement program must file a report with the
state auditor by July 1, in a form prescribed by the auditor.� All reports must include a declaration that
the jurisdiction has complied with, or will have complied with by the end of
the year, the requirement in paragraph (a).�
For jurisdictions participating in the standard measures program, the
report shall consist of the jurisdiction's results for the standard set of
performance measures under section 6.90, subdivision 2, paragraph (a).� In 2012, jurisdictions participating in the
comprehensive performance measurement program must submit a resolution approved
by its local governing body indicating that it either has implemented or is in
the process of implementing a local performance measurement system that meets
the minimum standards specified by the council under section 6.90, subdivision
2, paragraph (b).� In 2013 and
thereafter, jurisdictions participating in the comprehensive performance
measurement program must submit a statement approved by its local governing
body affirming that it has implemented a local performance measurement system
that meets the minimum standards specified by the council under section 6.90,
subdivision 2, paragraph (b).
Subd. 2.�
Benefits of participation.� (a) A county or city that elects to
participate in the standard measures program for 2011 is:� (1) eligible for per capita reimbursement of
$0.14 per capita, but not to exceed $25,000 for any government entity; and (2)
exempt from levy limits under sections 275.70 to 275.74 for taxes payable in
2012, if levy limits are in effect.
(b) Any county or city that elects to participate in the
standard measures program for 2012 is eligible for per capita reimbursement of
$0.14 per capita, but not to exceed $25,000 for any government entity.� Any jurisdiction participating in the
comprehensive performance measurement program is exempt from levy limits under
sections 275.70 to 275.74 for taxes payable in 2013 if levy limits are in
effect.
(c) Any county or city that elects to participate in the
standard measures program for 2013 or any year thereafter is eligible for per
capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any
government entity.� Any jurisdiction
participating in the comprehensive performance measurement program for 2013 or
any year thereafter is exempt from levy limits under sections 275.70 to 275.74
for taxes payable in the following year, if levy limits are in effect.
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Subd. 3.�
Certification of
participation.� (a) The state
auditor shall certify to the commissioner of revenue by August 1 of each year
the counties and cities that are participating in the standard measures program
and the comprehensive performance measurement program.
(b) The commissioner of revenue shall make per capita aid
payments under this section on the second payment date specified in section
477A.015, in the same year that the measurements were reported.
(c) The commissioner of revenue shall notify each county and
city that is entitled to exemption from levy limits by August 10 of each levy
year.�
Subd. 4.�
Appropriation.� (a) The amount necessary to fund
obligations under subdivision 2 is annually appropriated from the general fund
to the commissioner of revenue.
(b) The sum of $6,000 in fiscal year 2011 and $2,000 in each
fiscal year thereafter is annually appropriated from the general fund to the state
auditor to carry out the auditor's responsibilities under sections 6.90 to
6.91.
EFFECTIVE
DATE.� This section is effective December
31, 2010.
Sec. 3.� [270C.991] PROPERTY TAX SYSTEM
BENCHMARKS AND CRITICAL INDICATORS.�
Subdivision 1.�
Purpose.� State policy makers should be provided
with the tools to create a more accountable and efficient property tax
system.� This section provides the
principles and available tools necessary to work toward achieving that goal.
Subd. 2.�
Property tax principles.� To better evaluate the various
property tax proposals that come before the legislature, the following basic
property tax principles should be taken into consideration.� The property taxes proposed should be:
(1) transparent and understandable;
(2) simple and efficient;
(3) equitable;
(4) stable and predictable;
(5) compliance and accountability;
(6) competitive, both nationally and globally; and
(7) responsive to economic conditions.
Subd. 3.�
Major indicators.� There are many different types of indicators
available to legislators to evaluate tax legislation.� Indicators are useful to have available as
benchmarks when legislators are contemplating changes.� Each tool has its own limitation, and no one
tool is perfect or should be used independently.� Some of the tools measure the global
characteristics of the entire tax system, while others are only a measure of
the property tax impacts and its administration.� The following is a list of the available
major indicators:
(1) property tax principles scale, the components of which
are listed in subdivision 2, as they relate to the various features of the
property tax system;
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(2) price of government
report, as required under section 16A.102;
(3) tax incidence report, as
required under section 270C.13;
(4) tax expenditure budget
and report, as required under section 270C.11;
(5) state tax rankings;
(6) property tax levy plus
aid data, and market value and net tax capacity data, by taxing district for
current and past years;
(7) effective tax rate (tax
as a percent of market value) and the equalized effective tax rate (effective
tax rate adjusted for assessment differences);
(8) assessment sales ratio
study, as required under section 127A.48;
(9) "Voss"
database, which matches homeowner property taxes and household income;
(10) revenue estimates under
section 270C.11, subdivision 5, and state fiscal notes under section 477A.03,
subdivision 2b; and
(11) local impact notes
under section 3.987.
Subd. 4.� Property
tax working group.� (a) A
property tax working group is established as provided in this subdivision.� The goals of the working group are:
(1) to investigate ways to
simplify the property tax system and make advisory recommendations on ways to
make the system more understandable;
(2) to reexamine the
property tax calendar to determine what changes could be made to shorten the
two-year cycle from assessment through property tax collection; and
(3) to determine the cost
versus the benefits of the various property tax components, including property
classifications, credits, aids, exclusions, exemptions, and abatements, and to
suggest ways to achieve some of the goals in simpler and more cost-efficient
ways.
(b) The 13-member working
group shall consist of the following members:
(1) two state
representatives, both appointed by the chair of the house of representatives
Taxes Committee, one from the majority party and one from the largest minority
party;
(2) two senators appointed
by the Subcommittee on Committees of the Senate Rules and Administration
Committee, one from the majority party and one from the largest minority party;
(3) the commissioner of
revenue, or designee;
(4) one person appointed by
the Association of Minnesota Counties;
(5) one person appointed by
the League of Minnesota Cities;
(6) one person appointed by
the Minnesota Association of Townships;
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(7) one person appointed by the Minnesota Chamber of Commerce;
(8) one person appointed by the Minnesota Association of
Assessing Officers;
(9) two homeowners, one who is under 65 years of age, and one
who is 65 years of age or older, both appointed by the commissioner of revenue;
and
(10) one person jointly appointed by the Minnesota Farm Bureau
and the Minnesota Farmers Union.
The commissioner of revenue shall chair the initial meeting,
and the working group shall elect a chair at that initial meeting.� The working group will meet at the call of
the chair.� Members of the working group
shall serve without compensation.� The
commissioner of revenue must provide administrative support to the working
group.� Chapter 13D does not apply to
meetings of the working group.� Meetings
of the working group must be open to the public and the working group must
provide notice of a meeting to potentially interested persons at least seven
days before the meeting.� A meeting of
the council occurs when a quorum is present.
(c) The working group shall make its advisory recommendations
to the chairs of the house of representatives and senate Taxes Committees on or
before February 1, 2012, at which time the working group shall be finished and
this subdivision expires.� The advisory recommendations should be
reviewed by the Taxes Committee under subdivision 5.
Subd. 5.�
Taxes Committee review and
resolution.� On or before
March 1, 2012, and every two years thereafter, the house of representatives and
senate Taxes Committees must review the major indicators as contained in
subdivision 3, and ascertain the accountability and efficiency of the property
tax system.� The house of representatives
and senate Taxes Committees shall prepare a resolution on targets and
benchmarks for use during the current biennium.
Subd. 6.�
Department of Revenue; revenue
estimates.� As provided under
section 270C.11, subdivision 5, the Department of Revenue is required to
prepare an estimate of the effect on the state's tax revenues which result from
the passage of a legislative bill establishing, extending, or restricting a tax
expenditure.� Beginning with the 2011
legislative session, those revenue estimates must also identify how the
property tax principles contained in subdivision 2 apply to the proposed tax
changes.� The commissioner of revenue
shall develop a scale for measuring the appropriate principles for each
proposed change.� The department shall
quantify the effects, if possible, or at a minimum, shall identify the relevant
factors so that legislators are aware of possible outcomes, including
administrative difficulties and cost.�
The interaction of property tax shifting should be identified and
quantified to the degree possible.
Subd. 7.�
Appropriation.� The sum of $30,000 in fiscal year 2011
and $25,000 in each fiscal year thereafter is appropriated from the general
fund to the commissioner of revenue to carry out the commissioner's added
responsibilities under subdivision 6.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
ARTICLE 3
INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES
Section 1.� Minnesota
Statutes 2008, section 289A.08, subdivision 7, is amended to read:
Subd. 7.� Composite income tax returns for
nonresident partners, shareholders, and beneficiaries.� (a) The commissioner may allow a
partnership with nonresident partners to file a composite return and to pay the
tax on behalf of nonresident partners who have no other Minnesota source
income.� This composite return must
include the names, addresses, Social Security numbers, income allocation, and
tax liability for the nonresident partners electing to be covered by the
composite return.�
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(b) The computation of a
partner's tax liability must be determined by multiplying the income allocated
to that partner by the highest rate used to determine the tax liability for
individuals under section 290.06, subdivision 2c.� Nonbusiness deductions, standard deductions,
or personal exemptions are not allowed.�
(c) The partnership must
submit a request to use this composite return filing method for nonresident
partners.� The requesting partnership
must file a composite return in the form prescribed by the commissioner of
revenue.� The filing of a composite
return is considered a request to use the composite return filing method.�
(d) The electing partner
must not have any Minnesota source income other than the income from the
partnership and other electing partnerships.�
If it is determined that the electing partner has other Minnesota source
income, the inclusion of the income and tax liability for that partner under
this provision will not constitute a return to satisfy the requirements of
subdivision 1.� The tax paid for the
individual as part of the composite return is allowed as a payment of the tax
by the individual on the date on which the composite return payment was made.� If the electing nonresident partner has no
other Minnesota source income, filing of the composite return is a return for
purposes of subdivision 1.�
(e) This subdivision does
not negate the requirement that an individual pay estimated tax if the
individual's liability would exceed the requirements set forth in section
289A.25.� A composite estimate may,
however, be filed in a manner similar to and containing the information
required under paragraph (a).�
(f) If an electing partner's
share of the partnership's gross income from Minnesota sources is less than the
filing requirements for a nonresident under this subdivision, the tax liability
is zero.� However, a statement showing
the partner's share of gross income must be included as part of the composite
return.�
(g) The election provided in
this subdivision is only available to a partner who has no other Minnesota
source income and who is either (1) a full-year nonresident individual or (2) a
trust or estate that does not claim a deduction under either section 651 or 661
of the Internal Revenue Code.�
(h) A corporation defined in
section 290.9725 and its nonresident shareholders may make an election under
this paragraph.� The provisions covering
the partnership apply to the corporation and the provisions applying to the
partner apply to the shareholder.�
(i) Estates and trusts
distributing current income only and the nonresident individual beneficiaries
of the estates or trusts may make an election under this paragraph.� The provisions covering the partnership apply
to the estate or trust.� The provisions
applying to the partner apply to the beneficiary.�
(j) For the purposes of this
subdivision, "income" means the partner's share of federal adjusted
gross income from the partnership modified by the additions provided in section
290.01, subdivision 19a, clauses (6) to (10), and the subtractions provided
in:� (i) section 290.01, subdivision 19b,
clause (9) (8), to the extent the amount is assignable or
allocable to Minnesota under section 290.17; and (ii) section 290.01,
subdivision 19b, clause (14) (13).� The subtraction allowed under section 290.01,
subdivision 19b, clause (9) (8), is only allowed on the composite
tax computation to the extent the electing partner would have been allowed the
subtraction.�
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 2.� Minnesota Statutes 2008, section 289A.09,
subdivision 2, is amended to read:
Subd. 2.� Withholding
statement.� (a) A person required to
deduct and withhold from an employee a tax under section 290.92, subdivision 2a
or 3, or 290.923, subdivision 2, or who would have been required to deduct and
withhold a tax under section 290.92, subdivision 2a or 3, or persons required
to withhold tax under section 290.923, subdivision 2, determined without regard
to section 290.92, subdivision 19, if the employee or payee had claimed no
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more than one withholding
exemption, or who paid wages or made payments not subject to withholding under
section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an employee
or person receiving royalty payments in excess of $600, or who has entered into
a voluntary withholding agreement with a payee under section 290.92,
subdivision 20, must give every employee or person receiving royalty payments
in respect to the remuneration paid by the
person to the employee or person receiving royalty payments during the calendar
year, on or before January 31 of the succeeding year, or, if employment
is terminated before the close of the calendar year, within 30 days after the
date of receipt of a written request from the employee if the 30-day period
ends before January 31, a written statement showing the following:�
(1) name of the person;
(2) the name of the employee
or payee and the employee's or payee's Social Security account number;
(3) the total amount of
wages as that term is defined in section 290.92, subdivision 1, paragraph (1);
the total amount of remuneration subject to withholding under section 290.92,
subdivision 20; the amount of sick pay as required under section 6051(f) of the
Internal Revenue Code; and the amount of royalties subject to withholding under
section 290.923, subdivision 2; and
(4) the total amount
deducted and withheld as tax under section 290.92, subdivision 2a or 3, or
290.923, subdivision 2.�
(b) The statement required
to be furnished by paragraph (a) with respect to any remuneration must be
furnished at those times, must contain the information required, and must be in
the form the commissioner prescribes.�
(c) The commissioner may
prescribe rules providing for reasonable extensions of time, not in excess of
30 days, to employers or payers required to give the statements to their
employees or payees under this subdivision.�
(d) A duplicate of any
statement made under this subdivision and in accordance with rules prescribed
by the commissioner, along with a reconciliation in the form the commissioner
prescribes of the statements for the calendar year, including a reconciliation
of the quarterly returns required to be filed under subdivision 1, must be
filed with the commissioner on or before February 28 of the year after the
payments were made.�
(e) If an employer cancels
the employer's Minnesota withholding account number required by section 290.92,
subdivision 24, the information required by paragraph (d), must be filed with
the commissioner within 30 days of the end of the quarter in which the employer
cancels its account number.�
(f) The employer must submit
the statements required to be sent to the commissioner in the same manner
required to satisfy the federal reporting requirements of section 6011(e) of
the Internal Revenue Code and the regulations issued under it.� For wages paid in calendar year 2008,
An employer must submit statements to the commissioner required by this section
by electronic means if the employer is required to send more than 100
25 statements to the commissioner, even though the employer is not required
to submit the returns federally by electronic means.� For calendar year 2009, the 100 statements
threshold is reduced to 50, and for calendar year 2010, the threshold is reduced
to 25, and for statements issued for wages paid in 2011 and after,
the threshold is reduced to ten.� All
statements issued for withholding required under section 290.92 are aggregated
for purposes of determining whether the electronic submission threshold is met.
(g) A "third-party bulk
filer" as defined in section 290.92, subdivision 30, paragraph (a), clause
(2), must submit the returns required by this subdivision and subdivision 1,
paragraph (a), with the commissioner by electronic means.�
EFFECTIVE DATE.� This section is effective for statements required to
be filed after December 31, 2010.
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Sec. 3.� Minnesota Statutes 2008, section 289A.12,
subdivision 14, is amended to read:
Subd. 14.� Regulated
investment companies; reporting exempt-interest dividends.� (a) A regulated investment company paying
$10 or more in exempt-interest dividends to an individual who is a resident of
Minnesota must make a return indicating the amount of the exempt-interest
dividends, the name, address, and Social Security number of the recipient, and
any other information that the commissioner specifies.� The return must be provided to the
shareholder no later than 30 days after the close of the taxable year by
February 15 of the year following the year of the payment.� The return provided to the shareholder must
include a clear statement, in the form prescribed by the commissioner, that the
exempt-interest dividends must be included in the computation of Minnesota
taxable income.� The regulated
investment company is required in a manner prescribed by the commissioner to
file a copy of the return with the commissioner.� By June 1 of each year, the regulated
investment company must file a copy of the return with the commissioner.
(b) This subdivision applies
to regulated investment companies required to register under chapter 80A.�
(c) For purposes of this
subdivision, the following definitions apply.�
(1) "Exempt-interest
dividends" mean exempt-interest dividends as defined in section 852(b)(5)
of the Internal Revenue Code, but does not include the portion of
exempt-interest dividends that are not required to be added to federal taxable
income under section 290.01, subdivision 19a, clause (1)(ii).�
(2) "Regulated
investment company" means regulated investment company as defined in
section 851(a) of the Internal Revenue Code or a fund of the regulated
investment company as defined in section 851(g) of the Internal Revenue
Code.�
EFFECTIVE DATE.� This section is effective for returns due after
December 31, 2010.
Sec. 4.� Minnesota Statutes 2009 Supplement, section
289A.18, subdivision 1, is amended to read:
Subdivision 1.� Individual
income, fiduciary income, corporate franchise, and entertainment taxes;
partnership and S corporation returns; information returns; mining company returns.� The returns required to be made under
sections 289A.08 and 289A.12 must be filed at the following times:
(1) returns made on the
basis of the calendar year must be filed on April 15 following the close of the
calendar year, except that returns of corporations must be filed on March 15
following the close of the calendar year the due date for filing the
federal income tax return;
(2) returns made on the
basis of the fiscal year must be filed on the 15th day of the fourth month
following the close of the fiscal year, except that returns of corporations
must be filed on the 15th day of the third month following the close of the
fiscal year due date for filing the federal income tax return;
(3) returns for a fractional
part of a year must be filed on the 15th day of the fourth month following
the end of the month in which falls the last day of the period for which the
return is made, except that the returns of corporations must be filed on the
15th day of the third month following the end of the tax year; or, in the case
of a corporation which is a member of a unitary group, the return of the
corporation must be filed on the 15th day of the third month following the end
of the tax year of the unitary group in which falls the last day of the period
for which the return is made due date for filing the federal income tax
return;
(4) in the case of a final
return of a decedent for a fractional part of a year, the return must be filed
on the 15th day of the fourth month following the close of the 12-month period
that began with the first day of that fractional part of a year;
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(5) in the case of the return of a cooperative association,
returns must be filed on or before the 15th day of the ninth month following
the close of the taxable year;
(6) if a corporation has been divested from a unitary group and
files a return for a fractional part of a year in which it was a member of a
unitary business that files a combined report under section 290.17, subdivision
4, the divested corporation's return must be filed on the 15th day of the third
month following the close of the common accounting period that includes the
fractional year;
(7) returns of entertainment entities must be filed on April
15 following the close of the calendar year;
(8) returns required to be filed under section 289A.08,
subdivision 4, must be filed on the 15th day of the fifth month following the
close of the taxable year;
(9) returns of mining companies must be filed on May 1
following the close of the calendar year; and
(10) returns required to be filed with the commissioner under
section 289A.12, subdivision 2, 4 to 10, or 16 must be filed within 30 days
after being demanded by the commissioner.
EFFECTIVE
DATE.� This section is effective for
taxable years beginning after December 31, 2009.
Sec. 5.� Minnesota
Statutes 2008, section 289A.30, subdivision 2, is amended to read:
Subd. 2.� Estate tax.�
Where good cause exists, the commissioner may extend the time for
payment of estate tax for a period of not more than six months.� If an extension to pay the federal estate tax
has been granted under section 6161 of the Internal Revenue Code, the time for
payment of the estate tax without penalty is extended for that period.� A taxpayer who owes at least $5,000 in taxes
and who, under section 6161 or 6166 of the Internal Revenue Code has been
granted an extension for payment of the tax shown on the return, may elect to
pay the tax due to the commissioner in equal amounts at the same time as
required for federal purposes.� A
taxpayer electing to pay the tax in installments shall defer a percentage of
tax that does not exceed the percentage of federal tax deferred and must
notify the commissioner in writing no later than nine months after the death of
the person whose estate is subject to taxation.�
If the taxpayer fails to pay an installment on time, unless it is shown
that the failure is due to reasonable cause, the election is revoked and the
entire amount of unpaid tax plus accrued interest is due and payable 90 days
after the date on which the installment was payable.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 6.� Minnesota
Statutes 2008, section 289A.50, subdivision 4, is amended to read:
Subd. 4.� Notice of refund.� The commissioner shall determine the
amount of refund, if any, that is due, and notify the taxpayer of the
determination as soon as practicable after a claim has been filed.
If the commissioner determines that the address provided by
the taxpayer to claim a refund is invalid or is no longer the current address
of the taxpayer, then the date of the mailing of the notification provided
under this subdivision is considered the date that the refund is paid for
purposes of the payment of interest under section 289A.56 and is considered the
date of issuance of the original warrant or check for purposes of issuing a new
warrant or check under section 270C.347.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
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Sec. 7.� Minnesota Statutes 2008, section 289A.60,
subdivision 7, is amended to read:
Subd. 7.� Penalty
for frivolous return.� If a taxpayer
files what purports to be a tax return or a claim for refund but which does not
contain information on which the substantial correctness of the purported
return or claim for refund may be judged or contains information that on its
face shows that the purported return or claim for refund is substantially
incorrect and the conduct is due to a position that is frivolous or a desire
that appears on the purported return or claim for refund to delay or impede the
administration of Minnesota tax laws, then the individual taxpayer shall
pay a penalty of the greater of $1,000 or 25 percent of the amount of tax
required to be shown on the return.� In a
proceeding involving the issue of whether or not a person taxpayer
is liable for this penalty, the burden of proof is on the commissioner.
EFFECTIVE DATE.� This section is effective the day following final
enactment and applies to returns filed after that date.
Sec. 8.� Minnesota Statutes 2009 Supplement, section
290.01, subdivision 19a, is amended to read:
Subd. 19a.� Additions
to federal taxable income.� For
individuals, estates, and trusts, there shall be added to federal taxable
income:
(1)(i) interest income on
obligations of any state other than Minnesota or a political or governmental
subdivision, municipality, or governmental agency or instrumentality of any
state other than Minnesota exempt from federal income taxes under the Internal
Revenue Code or any other federal statute; and
(ii) exempt-interest
dividends as defined in section 852(b)(5) of the Internal Revenue Code, except:�
(A) the
portion of the exempt-interest dividends exempt from state taxation under the
laws of the United States; and
(B) the portion of the
exempt-interest dividends derived from interest income on obligations of the
state of Minnesota or its political or governmental subdivisions,
municipalities, governmental agencies or instrumentalities, but only if the
portion of the exempt-interest dividends from such Minnesota sources paid to
all shareholders represents 95 percent or more of the exempt-interest dividends,
including any dividends exempt under subitem (A), that are paid by the
regulated investment company as defined in section 851(a) of the Internal
Revenue Code, or the fund of the regulated investment company as defined in
section 851(g) of the Internal Revenue Code, making the payment; and
(iii) for the purposes of
items (i) and (ii), interest on obligations of an Indian tribal government
described in section 7871(c) of the Internal Revenue Code shall be treated as
interest income on obligations of the state in which the tribe is located;
(2) the amount of income,
sales and use, motor vehicle sales, or excise taxes paid or accrued within the
taxable year under this chapter and the amount of taxes based on net income
paid, sales and use, motor vehicle sales, or excise taxes paid to any other state
or to any province or territory of Canada, to the extent allowed as a deduction
under section 63(d) of the Internal Revenue Code, but the addition may not be
more than the amount by which the itemized deductions as allowed under section
63(d) of the Internal Revenue Code exceeds the amount of the standard deduction
as defined in section 63(c) of the Internal Revenue Code, disregarding the
amounts allowed under sections 63(c)(1)(C) and 63(c)(1)(E) of the Internal
Revenue Code.� For the purpose of this paragraph,
the disallowance of itemized deductions under section 68 of the Internal
Revenue Code of 1986, income, sales and use, motor vehicle sales, or excise
taxes are the last itemized deductions disallowed;
(3) the capital gain amount
of a lump-sum distribution to which the special tax under section
1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;
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(4) the amount of income taxes paid or accrued within the
taxable year under this chapter and taxes based on net income paid to any other
state or any province or territory of Canada, to the extent allowed as a
deduction in determining federal adjusted gross income.� For the purpose of this paragraph, income
taxes do not include the taxes imposed by sections 290.0922, subdivision 1,
paragraph (b), 290.9727, 290.9728, and 290.9729;
(5) the amount of expense, interest, or taxes disallowed
pursuant to section 290.10 other than expenses or interest used in computing
net interest income for the subtraction allowed under subdivision 19b, clause
(1);
(6) the amount of a partner's pro rata share of net income
which does not flow through to the partner because the partnership elected to
pay the tax on the income under section 6242(a)(2) of the Internal Revenue
Code;
(7) 80 percent of the depreciation deduction allowed under
section 168(k) of the Internal Revenue Code.�
For purposes of this clause, if the taxpayer has an activity that in the
taxable year generates a deduction for depreciation under section 168(k) and
the activity generates a loss for the taxable year that the taxpayer is not
allowed to claim for the taxable year, "the depreciation allowed under
section 168(k)" for the taxable year is limited to excess of the
depreciation claimed by the activity under section 168(k) over the amount of
the loss from the activity that is not allowed in the taxable year.� In succeeding taxable years when the losses
not allowed in the taxable year are allowed, the depreciation under section
168(k) is allowed;
(8) 80 percent of the amount by which the deduction allowed
by section 179 of the Internal Revenue Code exceeds the deduction allowable by
section 179 of the Internal Revenue Code of 1986, as amended through December
31, 2003;
(9) to the extent deducted in computing federal taxable
income, the amount of the deduction allowable under section 199 of the Internal
Revenue Code;
(10) the exclusion allowed under section 139A of the Internal
Revenue Code for federal subsidies for prescription drug plans;
(11) the amount of expenses disallowed under section 290.10,
subdivision 2;
(12) the amount deducted for qualified tuition and related
expenses under section 222 of the Internal Revenue Code, to the extent deducted
from gross income;
(13) the amount deducted for certain expenses of elementary
and secondary school teachers under section 62(a)(2)(D) of the Internal Revenue
Code, to the extent deducted from gross income;
(14) the additional standard deduction for property taxes
payable that is allowable under section 63(c)(1)(C) of the Internal Revenue
Code;
(15) the additional standard deduction for qualified motor
vehicle sales taxes allowable under section 63(c)(1)(E) of the Internal Revenue
Code;
(16) discharge of indebtedness income resulting from
reacquisition of business indebtedness and deferred under section 108(i) of the
Internal Revenue Code; and
(17) the amount of unemployment compensation exempt from tax
under section 85(c) of the Internal Revenue Code.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
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Sec. 9.� Minnesota
Statutes 2009 Supplement, section 290.01, subdivision 19b, as amended by Laws
2010, chapter 187, section 2, is amended to read:
Subd. 19b.� Subtractions from federal taxable
income.� For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:
(1) net interest income on obligations of any authority,
commission, or instrumentality of the United States to the extent includable in
taxable income for federal income tax purposes but exempt from state income tax
under the laws of the United States;
(2) if included in federal taxable income, the amount of any
overpayment of income tax to Minnesota or to any other state, for any previous
taxable year, whether the amount is received as a refund or as a credit to
another taxable year's income tax liability;
(3) the amount paid to others, less the amount used to claim
the credit allowed under section 290.0674, not to exceed $1,625 for each
qualifying child in grades kindergarten to 6 and $2,500 for each qualifying
child in grades 7 to 12, for tuition, textbooks, and transportation of each
qualifying child in attending an elementary or secondary school situated in
Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident
of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil
Rights Act of 1964 and chapter 363A.� For
the purposes of this clause, "tuition" includes fees or tuition as
defined in section 290.0674, subdivision 1, clause (1).� As used in this clause, "textbooks"
includes books and other instructional materials and equipment purchased or
leased for use in elementary and secondary schools in teaching only those
subjects legally and commonly taught in public elementary and secondary schools
in this state.� Equipment expenses
qualifying for deduction includes expenses as defined and limited in section
290.0674, subdivision 1, clause (3).�
"Textbooks" does not include instructional books and materials
used in the teaching of religious tenets, doctrines, or worship, the purpose of
which is to instill such tenets, doctrines, or worship, nor does it include
books or materials for, or transportation to, extracurricular activities
including sporting events, musical or dramatic events, speech activities,
driver's education, or similar programs.�
No deduction is permitted for any expense the taxpayer incurred in using
the taxpayer's or the qualifying child's vehicle to provide such transportation
for a qualifying child.� For purposes of
the subtraction provided by this clause, "qualifying child" has the
meaning given in section 32(c)(3) of the Internal Revenue Code;
(4) income as provided under section 290.0802;
(5) to the extent included in federal adjusted gross income,
income realized on disposition of property exempt from tax under section
290.491;
(6) to the extent not deducted or not deductible pursuant to section
408(d)(8)(E) of the Internal Revenue Code in determining federal taxable income
by an individual who does not itemize deductions for federal income tax
purposes for the taxable year, an amount equal to 50 percent of the excess of
charitable contributions over $500 allowable as a deduction for the taxable
year under section 170(a) of the Internal Revenue Code, under the provisions of
Public Law 109-1 and Public Law 111-126;
(7) for taxable years beginning before January 1, 2008, the
amount of the federal small ethanol producer credit allowed under section
40(a)(3) of the Internal Revenue Code which is included in gross income under
section 87 of the Internal Revenue Code;
(8) (7) for individuals who are allowed a federal
foreign tax credit for taxes that do not qualify for a credit under section
290.06, subdivision 22, an amount equal to the carryover of subnational foreign
taxes for the taxable year, but not to exceed the total subnational foreign
taxes reported in claiming the foreign tax credit.� For purposes of this clause, "federal
foreign tax credit" means the credit allowed under section 27 of the
Internal Revenue Code, and "carryover of subnational foreign taxes"
equals the carryover allowed under section 904(c) of the Internal Revenue Code
minus national level foreign taxes to the extent they exceed the federal
foreign tax credit;
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(9) (8) in each of the five tax years immediately
following the tax year in which an addition is required under subdivision 19a,
clause (7), or 19c, clause (15), in the case of a shareholder of a corporation
that is an S corporation, an amount equal to one-fifth of the delayed
depreciation.� For purposes of this
clause, "delayed depreciation" means the amount of the addition made
by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, clause
(15), in the case of a shareholder of an S corporation, minus the positive
value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition.�
The resulting delayed depreciation cannot be less than zero;
(10) (9) job opportunity building zone income as
provided under section 469.316;
(11) (10) to the extent included in federal taxable
income, the amount of compensation paid to members of the Minnesota National
Guard or other reserve components of the United States military for active
service performed in Minnesota, excluding compensation for services performed
under the Active Guard Reserve (AGR) program.�
For purposes of this clause, "active service" means (i) state
active service as defined in section 190.05, subdivision 5a, clause (1); (ii)
federally funded state active service as defined in section 190.05, subdivision
5b; or (iii) federal active service as defined in section 190.05, subdivision
5c, but "active service" excludes service performed in accordance
with section 190.08, subdivision 3;
(12) (11) to the extent included in federal taxable
income, the amount of compensation paid to Minnesota residents who are members
of the armed forces of the United States or United Nations for active duty
performed outside Minnesota under United States Code, title 10, section 101(d);
United States Code, title 32, section 101(12); or the authority of the United
Nations;
(13) (12) an amount, not to exceed $10,000, equal
to qualified expenses related to a qualified donor's donation, while living, of
one or more of the qualified donor's organs to another person for human organ
transplantation.� For purposes of this
clause, "organ" means all or part of an individual's liver, pancreas,
kidney, intestine, lung, or bone marrow; "human organ
transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person;
"qualified expenses" means unreimbursed expenses for both the
individual and the qualified donor for (i) travel, (ii) lodging, and (iii) lost
wages net of sick pay, except that such expenses may be subtracted under this
clause only once; and "qualified donor" means the individual or the
individual's dependent, as defined in section 152 of the Internal Revenue Code.� An individual may claim the subtraction in
this clause for each instance of organ donation for transplantation during the
taxable year in which the qualified expenses occur;
(14) (13) in each of the five tax years immediately
following the tax year in which an addition is required under subdivision 19a,
clause (8), or 19c, clause (16), in the case of a shareholder of a corporation
that is an S corporation, an amount equal to one-fifth of the addition made by
the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in
the case of a shareholder of a corporation that is an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal
Revenue Code generated for the tax year of the addition.� If the net operating loss exceeds the
addition for the tax year, a subtraction is not allowed under this clause;
(15) (14) to the extent included in federal taxable
income, compensation paid to a service member as defined in United States Code,
title 10, section 101(a)(5), for military service as defined in the
Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);
(16) (15) international economic development zone
income as provided under section 469.325;
(17) (16) to the extent included in federal taxable
income, the amount of national service educational awards received from the
National Service Trust under United States Code, title 42, sections 12601 to
12604, for service in an approved Americorps National Service program; and
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(18) (17) to the extent
included in federal taxable income, discharge of indebtedness income resulting
from reacquisition of business indebtedness included in federal taxable income
under section 108(i) of the Internal Revenue Code.� This subtraction applies only to the extent
that the income was included in net income in a prior year as a result of the
addition under section 290.01, subdivision 19a, clause (16).
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 10.� Minnesota Statutes 2009 Supplement, section
290.01, subdivision 19d, is amended to read:
Subd. 19d.� Corporations;
modifications decreasing federal taxable income.� For corporations, there shall be
subtracted from federal taxable income after the increases provided in
subdivision 19c:
(1) the
amount of foreign dividend gross-up added to gross income for federal income
tax purposes under section 78 of the Internal Revenue Code;
(2) the amount of salary
expense not allowed for federal income tax purposes due to claiming the work
opportunity credit under section 51 of the Internal Revenue Code;
(3) any dividend (not
including any distribution in liquidation) paid within the taxable year by a
national or state bank to the United States, or to any instrumentality of the
United States exempt from federal income taxes, on the preferred stock of the
bank owned by the United States or the instrumentality;
(4) amounts disallowed for
intangible drilling costs due to differences between this chapter and the
Internal Revenue Code in taxable years beginning before January 1, 1987, as
follows:
(i) to the extent the
disallowed costs are represented by physical property, an amount equal to the
allowance for depreciation under Minnesota Statutes 1986, section 290.09,
subdivision 7, subject to the modifications contained in subdivision 19e; and
(ii) to the extent the
disallowed costs are not represented by physical property, an amount equal to
the allowance for cost depletion under Minnesota Statutes 1986, section 290.09,
subdivision 8;
(5) the deduction for
capital losses pursuant to sections 1211 and 1212 of the Internal Revenue Code,
except that:
(i) for capital losses
incurred in taxable years beginning after December 31, 1986, capital loss
carrybacks shall not be allowed;
(ii) for capital losses
incurred in taxable years beginning after December 31, 1986, a capital loss
carryover to each of the 15 taxable years succeeding the loss year shall be
allowed;
(iii) for capital losses
incurred in taxable years beginning before January 1, 1987, a capital loss
carryback to each of the three taxable years preceding the loss year, subject
to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed;
and
(iv) for capital losses
incurred in taxable years beginning before January 1, 1987, a capital loss
carryover to each of the five taxable years succeeding the loss year to the
extent such loss was not used in a prior taxable year and subject to the
provisions of Minnesota Statutes 1986, section 290.16, shall be allowed;
(6) an amount for interest
and expenses relating to income not taxable for federal income tax purposes, if
(i) the income is taxable under this chapter and (ii) the interest and expenses
were disallowed as deductions under the provisions of section 171(a)(2), 265 or
291 of the Internal Revenue Code in computing federal taxable income;
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(7) in the case of mines, oil and gas wells, other natural
deposits, and timber for which percentage depletion was disallowed pursuant to
subdivision 19c, clause (9), a reasonable allowance for depletion based on
actual cost.� In the case of leases the
deduction must be apportioned between the lessor and lessee in accordance with
rules prescribed by the commissioner.� In
the case of property held in trust, the allowable deduction must be apportioned
between the income beneficiaries and the trustee in accordance with the
pertinent provisions of the trust, or if there is no provision in the
instrument, on the basis of the trust's income allocable to each;
(8) for certified pollution control
facilities placed in service in a taxable year beginning before December 31,
1986, and for which amortization deductions were elected under section 169 of
the Internal Revenue Code of 1954, as amended through December 31, 1985, an
amount equal to the allowance for depreciation under Minnesota Statutes 1986,
section 290.09, subdivision 7;
(9) amounts included in federal taxable income that are due
to refunds of income, excise, or franchise taxes based on net income or related
minimum taxes paid by the corporation to Minnesota, another state, a political
subdivision of another state, the District of Columbia, or a foreign country or
possession of the United States to the extent that the taxes were added to
federal taxable income under section 290.01, subdivision 19c, clause (1), in a
prior taxable year;
(10) 80 percent of royalties, fees, or other like income
accrued or received from a foreign operating corporation or a foreign
corporation which is part of the same unitary business as the receiving
corporation, unless the income resulting from such payments or accruals is
income from sources within the United States as defined in subtitle A, chapter
1, subchapter N, part 1, of the Internal Revenue Code;
(11) income or gains from the business of mining as defined
in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota
franchise tax;
(12) the amount of disability access expenditures in the
taxable year which are not allowed to be deducted or capitalized under section
44(d)(7) of the Internal Revenue Code;
(13) the amount of qualified research expenses not allowed
for federal income tax purposes under section 280C(c) of the Internal Revenue
Code, but only to the extent that the amount exceeds the amount of the credit
allowed under section 290.068;
(14) the amount of salary expenses not allowed for federal
income tax purposes due to claiming the Indian employment credit under section
45A(a) of the Internal Revenue Code;
(15) for taxable years beginning before January 1, 2008, the
amount of the federal small ethanol producer credit allowed under section
40(a)(3) of the Internal Revenue Code which is included in gross income under
section 87 of the Internal Revenue Code;
(16) (15) for a corporation whose foreign sales
corporation, as defined in section 922 of the Internal Revenue Code,
constituted a foreign operating corporation during any taxable year ending
before January 1, 1995, and a return was filed by August 15, 1996, claiming the
deduction under section 290.21, subdivision 4, for income received from the
foreign operating corporation, an amount equal to 1.23 multiplied by the amount
of income excluded under section 114 of the Internal Revenue Code, provided the
income is not income of a foreign operating company;
(17) (16) any decrease in subpart F income, as
defined in section 952(a) of the Internal Revenue Code, for the taxable year
when subpart F income is calculated without regard to the provisions of
Division C, title III, section 303(b) of Public Law 110-343;
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(18) (17) in each of the five tax years immediately
following the tax year in which an addition is required under subdivision 19c,
clause (15), an amount equal to one-fifth of the delayed depreciation.� For purposes of this clause, "delayed
depreciation" means the amount of the addition made by the taxpayer under
subdivision 19c, clause (15).� The
resulting delayed depreciation cannot be less than zero;
(19) (18) in each of the five tax years immediately
following the tax year in which an addition is required under subdivision 19c,
clause (16), an amount equal to one-fifth of the amount of the addition; and
(20) (19) to the extent included in federal taxable
income, discharge of indebtedness income resulting from reacquisition of
business indebtedness included in federal taxable income under section 108(i)
of the Internal Revenue Code.� This
subtraction applies only to the extent that the income was included in net
income in a prior year as a result of the addition under section 290.01,
subdivision 19c, clause (25).
EFFECTIVE
DATE.� This section is effective the day following
final enactment.
Sec. 11.�
Minnesota Statutes 2008, section 290.014, subdivision 2, is amended to
read:
Subd. 2.� Nonresident individuals.� Except as provided in section 290.015, a nonresident
individual is subject to the return filing requirements and to tax as provided
in this chapter to the extent that the income of the nonresident individual
is:�
(1) allocable to this state under section 290.17, 290.191, or
290.20;
(2) taxed to the individual under the Internal Revenue Code
(or not taxed under the Internal Revenue Code by reason of its character but of
a character which is taxable under this chapter) in the individual's capacity
as a beneficiary of an estate with income allocable to this state under section
290.17, 290.191, or 290.20 and the income, taking into account the income
character provisions of section 662(b) of the Internal Revenue Code, would be
allocable to this state under section 290.17, 290.191, or 290.20 if realized by
the individual directly from the source from which realized by the estate;
(3) taxed to the individual under the Internal Revenue Code
(or not taxed under the Internal Revenue Code by reason of its character but of
a character that is taxable under this chapter) in the individual's capacity as
a beneficiary or grantor or other person treated as a substantial owner of a
trust with income allocable to this state under section 290.17, 290.191, or
290.20 and the income, taking into account the income character provisions of
section 652(b), 662(b), or 664(b) of the Internal Revenue Code, would be
allocable to this state under section 290.17, 290.191, or 290.20 if realized by
the individual directly from the source from which realized by the trust;
(4) taxed to the individual under the Internal Revenue Code
(or not taxed under the Internal Revenue Code by reason of its character but of
a character which is taxable under this chapter) in the individual's capacity
as a limited or general partner in a partnership with income allocable to this
state under section 290.17, 290.191, or 290.20 and the income, taking into
account the income character provisions of section 702(b) of the Internal
Revenue Code, would be allocable to this state under section 290.17, 290.191,
or 290.20 if realized by the individual directly from the source from which
realized by the partnership; oder
(5) taxed to the individual under the Internal Revenue Code
(or not taxed under the Internal Revenue Code by reason of its character but of
a character which is taxable under this chapter) in the individual's capacity
as a shareholder of a corporation treated as an "S" corporation under
section 290.9725, and income allocable to this state under section 290.17,
290.191, or 290.20 and the income, taking into account the income character
provisions of section 1366(b) of the Internal Revenue Code, would be allocable
to this state under section 290.17, 290.191, or 290.20 if realized by the
individual directly from the source from which realized by the corporation;
or
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(6) taxed to the individual under the Internal Revenue Code
(or not taxed under the Internal Revenue Code by reason of its character but of
a character which is taxable under this chapter) in the individual's capacity
as the sole member of a limited liability company that is disregarded for
federal income tax purposes, with income allocable to this state under section
290.17, 290.191, or 290.20, as though realized by the individual directly from
the source from which it was realized by the limited liability company.�
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 12.�
Minnesota Statutes 2009 Supplement, section 290.06, subdivision 2c, is
amended to read:
Subd. 2c.� Schedules of rates for individuals,
estates, and trusts.� (a) The income
taxes imposed by this chapter upon married individuals filing joint returns and
surviving spouses as defined in section 2(a) of the Internal Revenue Code must
be computed by applying to their taxable net income the following schedule of
rates:
(1) On the first $25,680, 5.35 percent;
(2) On all over $25,680, but not over $102,030, 7.05 percent;
(3) On all over $102,030, 7.85 percent.
Married individuals filing separate returns, estates, and
trusts must compute their income tax by applying the above rates to their
taxable income, except that the income brackets will be one-half of the above
amounts.
(b) The income taxes imposed by this chapter upon unmarried
individuals must be computed by applying to taxable net income the following
schedule of rates:
(1) On the first $17,570, 5.35 percent;
(2) On all over $17,570, but not over $57,710, 7.05 percent;
(3) On all over $57,710, 7.85 percent.
(c) The income taxes imposed by this chapter upon unmarried
individuals qualifying as a head of household as defined in section 2(b) of the
Internal Revenue Code must be computed by applying to taxable net income the
following schedule of rates:
(1) On the first $21,630, 5.35 percent;
(2) On all over $21,630, but not over $86,910, 7.05 percent;
(3) On all over $86,910, 7.85 percent.
(d) In lieu of a tax computed according to the rates set
forth in this subdivision, the tax of any individual taxpayer whose taxable net
income for the taxable year is less than an amount determined by the
commissioner must be computed in accordance with tables prepared and issued by
the commissioner of revenue based on income brackets of not more than
$100.� The amount of tax for each bracket
shall be computed at the rates set forth in this subdivision, provided that the
commissioner may disregard a fractional part of a dollar unless it amounts to
50 cents or more, in which case it may be increased to $1.
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(e) An individual who is not a Minnesota resident for the
entire year must compute the individual's Minnesota income tax as provided in
this subdivision.� After the application
of the nonrefundable credits provided in this chapter, the tax liability must
then be multiplied by a fraction in which:
(1) the numerator is the individual's Minnesota source
federal adjusted gross income as defined in section 62 of the Internal Revenue
Code and increased by the additions required under section 290.01, subdivision
19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), (16), and (17), and
reduced by the Minnesota assignable portion of the subtraction for United
States government interest under section 290.01, subdivision 19b, clause (1),
and the subtractions under section 290.01, subdivision 19b, clauses (9),
(10), (14), (15), (16), and (18) (8), (9), (13), (14), (15), and (17), after applying the allocation and assignability provisions of section
290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted
gross income as defined in section 62 of the Internal Revenue Code of 1986,
increased by the amounts specified in section 290.01, subdivision 19a, clauses
(1), (5), (6), (7), (8), (9), (12), (13), (16), and (17), and reduced by the
amounts specified in section 290.01, subdivision 19b, clauses (1), (9),
(10), (14), (15), (16), and (18) (8), (9), (13), (14), (15), and (17).
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 13.�
Minnesota Statutes 2008, section 290.067, subdivision 1, is amended to
read:
Subdivision 1.� Amount of credit.� (a) A taxpayer may take as a credit
against the tax due from the taxpayer and a spouse, if any, under this chapter
an amount equal to the dependent care credit for which the taxpayer is eligible
pursuant to the provisions of section 21 of the Internal Revenue Code subject
to the limitations provided in subdivision 2 except that in determining whether
the child qualified as a dependent, income received as a Minnesota family
investment program grant or allowance to or on behalf of the child must not be
taken into account in determining whether the child received more than half of
the child's support from the taxpayer, and the provisions of section
32(b)(1)(D) of the Internal Revenue Code do not apply.
(b) If a child who has not attained the age of six years at
the close of the taxable year is cared for at a licensed family day care home
operated by the child's parent, the taxpayer is deemed to have paid
employment-related expenses.� If the
child is 16 months old or younger at the close of the taxable year, the amount
of expenses deemed to have been paid equals the maximum limit for one qualified
individual under section 21(c) and (d) of the Internal Revenue Code.� If the child is older than 16 months of age
but has not attained the age of six years at the close of the taxable year, the
amount of expenses deemed to have been paid equals the amount the licensee
would charge for the care of a child of the same age for the same number of
hours of care.
(c) If a married couple:
(1) has a child who has not attained the age of one year at
the close of the taxable year;
(2) files a joint tax return for the taxable year; and
(3) does not participate in a dependent care assistance
program as defined in section 129 of the Internal Revenue Code, in lieu of the
actual employment related expenses paid for that child under paragraph (a) or
the deemed amount under paragraph (b), the lesser of (i) the combined earned
income of the couple or (ii) the amount of the maximum limit for one qualified
individual under section 21(c) and (d) of the Internal Revenue Code will be
deemed to be the employment related expense paid for that child.� The earned income limitation of section 21(d)
of the Internal Revenue Code shall not apply to this deemed amount.� These deemed amounts apply regardless of
whether any employment-related expenses have been paid.
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(d) If the taxpayer is not required and does not file a
federal individual income tax return for the tax year, no credit is allowed for
any amount paid to any person unless:
(1) the name, address, and taxpayer identification number of
the person are included on the return claiming the credit; or
(2) if the person is an organization described in section
501(c)(3) of the Internal Revenue Code and exempt from tax under section 501(a)
of the Internal Revenue Code, the name and address of the person are included
on the return claiming the credit.
In the case
of a failure to provide the information required under the preceding sentence,
the preceding sentence does not apply if it is shown that the taxpayer
exercised due diligence in attempting to provide the information required.
In the case of a nonresident, part-year resident, or a person
who has earned income not subject to tax under this chapter including earned
income excluded pursuant to section 290.01, subdivision 19b, clause (10)
(9) oder (16) (15), the credit determined under section 21
of the Internal Revenue Code must be allocated based on the ratio by which the
earned income of the claimant and the claimant's spouse from Minnesota sources
bears to the total earned income of the claimant and the claimant's spouse.
For residents of Minnesota, the subtractions for military pay
under section 290.01, subdivision 19b, clauses (11) (10) and (12)
(11), are not considered "earned income not subject to tax under
this chapter."
For residents of Minnesota, the exclusion of combat pay under
section 112 of the Internal Revenue Code is not considered "earned income
not subject to tax under this chapter."
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 14.�
Minnesota Statutes 2009 Supplement, section 290.0671, subdivision 1, is
amended to read:
Subdivision 1.� Credit allowed.� (a) An individual is allowed a credit
against the tax imposed by this chapter equal to a percentage of earned
income.� To receive a credit, a taxpayer
must be eligible for a credit under section 32 of the Internal Revenue Code.
(b) For individuals with no qualifying children, the credit
equals 1.9125 percent of the first $4,620 of earned income.� The credit is reduced by 1.9125 percent of
earned income or adjusted gross income, whichever is greater, in excess of
$5,770, but in no case is the credit less than zero.
(c) For individuals with one qualifying child, the credit equals
8.5 percent of the first $6,920 of earned income and 8.5 percent of earned
income over $12,080 but less than $13,450.�
The credit is reduced by 5.73 percent of earned income or adjusted gross
income, whichever is greater, in excess of $15,080, but in no case is the
credit less than zero.
(d) For individuals with two or more qualifying children, the
credit equals ten percent of the first $9,720 of earned income and 20 percent
of earned income over $14,860 but less than $16,800.� The credit is reduced by 10.3 percent of
earned income or adjusted gross income, whichever is greater, in excess of
$17,890, but in no case is the credit less than zero.
(e) For a nonresident or part-year resident, the credit must
be allocated based on the percentage calculated under section 290.06,
subdivision 2c, paragraph (e).
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(f) For a person who was a resident for the entire tax year
and has earned income not subject to tax under this chapter, including income
excluded under section 290.01, subdivision 19b, clause (10) (9)
oder (16) (15), the credit must be allocated based on the ratio of
federal adjusted gross income reduced by the earned income not subject to tax
under this chapter over federal adjusted gross income.� For purposes of this paragraph, the
subtractions for military pay under section 290.01, subdivision 19b, clauses (11)
(10) and (12) (11), are not considered "earned income
not subject to tax under this chapter."
For the purposes of this paragraph, the exclusion of combat
pay under section 112 of the Internal Revenue Code is not considered
"earned income not subject to tax under this chapter."
(g) For tax years beginning after December 31, 2007, and
before December 31, 2010, the $5,770 in paragraph (b), the $15,080 in paragraph
(c), and the $17,890 in paragraph (d), after being adjusted for inflation under
subdivision 7, are each increased by $3,000 for married taxpayers filing joint
returns.� For tax years beginning after
December 31, 2008, the commissioner shall annually adjust the $3,000 by the
percentage determined pursuant to the provisions of section 1(f) of the Internal
Revenue Code, except that in section 1(f)(3)(B), the word "2007"
shall be substituted for the word "1992." For 2009, the commissioner
shall then determine the percent change from the 12 months ending on August 31,
2007, to the 12 months ending on August 31, 2008, and in each subsequent year, from
the 12 months ending on August 31, 2007, to the 12 months ending on August 31
of the year preceding the taxable year.�
The earned income thresholds as adjusted for inflation must be rounded
to the nearest $10.� If the amount ends
in $5, the amount is rounded up to the nearest $10.� The determination of the commissioner under
this subdivision is not a rule under the Administrative Procedure Act.
(h) The commissioner shall construct tables showing the
amount of the credit at various income levels and make them available to
taxpayers.� The tables shall follow the
schedule contained in this subdivision, except that the commissioner may
graduate the transition between income brackets.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 15.�
Minnesota Statutes 2008, section 290.081, is amended to read:
290.081 INCOME OF
NONRESIDENTS, RECIPROCITY.�
(a) The compensation received for the performance of personal
or professional services within this state by an individual whose residence,
place of abode, and place customarily returned to at least once a month is in
another state, shall be excluded from gross income to the extent such
compensation is subject to an income tax imposed by the state of residence;
provided that such state allows a similar exclusion of compensation received by
residents of Minnesota for services performed therein.
(b) When it is deemed to be in the best interests of the
people of this state, the commissioner may determine that the provisions of paragraph
(a) shall not apply.� As long as the
provisions of paragraph (a) apply between Minnesota and Wisconsin, the
provisions of paragraph (a) shall apply to any individual who is domiciled in
Wisconsin.
(c) For the purposes of paragraph (a), whenever the Wisconsin
tax on Minnesota residents which would have been paid Wisconsin without
paragraph (a) exceeds the Minnesota tax on Wisconsin residents which would have
been paid Minnesota without paragraph (a), or vice versa, then the state with
the net revenue loss resulting from paragraph (a) shall receive from must
be compensated by the other state the amount of such loss as
provided in the agreement under paragraph (d).� This provision shall be effective for all
years beginning after December 31, 1972.�
The data used for computing the loss to either state shall be determined
on or before September 30 of the year following the close of the previous
calendar year.
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(d) Interest is payable on
all amounts calculated under paragraph (c) relating to taxable years beginning
after December 31, 2000.� Interest
accrues from July 1 of the taxable year.�
The commissioner of revenue is authorized to enter into agreements with
the state of Wisconsin specifying the compensation required under paragraph
(b), the reciprocity payment due date, conditions constituting delinquency,
interest rates, and a method for computing interest due.� Calculation of compensation under the
agreement must specify if the revenue loss is determined before or after the
allowance of each state's credit for taxes paid to the other state.
(e) If an agreement cannot
be reached as to the amount of the loss, the commissioner of revenue and the
taxing official of the state of Wisconsin shall each appoint a member of a
board of arbitration and these members shall appoint the third member of the
board.� The board shall select one of its
members as chair.� Such board may
administer oaths, take testimony, subpoena witnesses, and require their
attendance, require the production of books, papers and documents, and hold
hearings at such places as are deemed necessary.� The board shall then make a determination as
to the amount to be paid the other state which determination shall be final and
conclusive.
(f) The commissioner may
furnish copies of returns, reports, or other information to the taxing official
of the state of Wisconsin, a member of the board of arbitration, or a
consultant under joint contract with the states of Minnesota and Wisconsin for
the purpose of making a determination as to the amount to be paid the other
state under the provisions of this section.�
Prior to the release of any information under the provisions of this
section, the person to whom the information is to be released shall sign an
agreement which provides that the person will protect the confidentiality of
the returns and information revealed thereby to the extent that it is protected
under the laws of the state of Minnesota.
Sec. 16.� Minnesota Statutes 2009 Supplement, section
290.091, subdivision 2, is amended to read:
Subd. 2.� Definitions.� For purposes of the tax imposed by this
section, the following terms have the meanings given:
(a) "Alternative
minimum taxable income" means the sum of the following for the taxable
year:
(1) the taxpayer's federal
alternative minimum taxable income as defined in section 55(b)(2) of the
Internal Revenue Code;
(2) the taxpayer's itemized
deductions allowed in computing federal alternative minimum taxable income, but
excluding:
(i) the charitable
contribution deduction under section 170 of the Internal Revenue Code;
(ii) the medical expense
deduction;
(iii) the casualty, theft,
and disaster loss deduction; and
(iv) the impairment-related
work expenses of a disabled person;
(3) for depletion allowances
computed under section 613A(c) of the Internal Revenue Code, with respect to
each property (as defined in section 614 of the Internal Revenue Code), to the
extent not included in federal alternative minimum taxable income, the excess
of the deduction for depletion allowable under section 611 of the Internal
Revenue Code for the taxable year over the adjusted basis of the property at
the end of the taxable year (determined without regard to the depletion
deduction for the taxable year);
(4) to the extent not
included in federal alternative minimum taxable income, the amount of the tax
preference for intangible drilling cost under section 57(a)(2) of the Internal
Revenue Code determined without regard to subparagraph (E);
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(5) to the extent not
included in federal alternative minimum taxable income, the amount of interest
income as provided by section 290.01, subdivision 19a, clause (1); and
(6) the
amount of addition required by section 290.01, subdivision 19a, clauses (7) to
(9), (12), (13), (16), and (17);
less the sum of the amounts
determined under the following:
(1) interest income as
defined in section 290.01, subdivision 19b, clause (1);
(2) an overpayment of state
income tax as provided by section 290.01, subdivision 19b, clause (2), to the
extent included in federal alternative minimum taxable income;
(3) the amount of investment
interest paid or accrued within the taxable year on indebtedness to the extent
that the amount does not exceed net investment income, as defined in section
163(d)(4) of the Internal Revenue Code.�
Interest does not include amounts deducted in computing federal adjusted
gross income; and
(4) amounts subtracted from
federal taxable income as provided by section 290.01, subdivision 19b, clauses
(6), (9) (8) to (16) (15), and (18) (17).
In the case of an estate or
trust, alternative minimum taxable income must be computed as provided in
section 59(c) of the Internal Revenue Code.
(b) "Investment
interest" means investment interest as defined in section 163(d)(3) of the
Internal Revenue Code.
(c) "Net minimum
tax" means the minimum tax imposed by this section.
(d) "Regular tax"
means the tax that would be imposed under this chapter (without regard to this
section and section 290.032), reduced by the sum of the nonrefundable credits
allowed under this chapter.
(e) "Tentative minimum
tax" equals 6.4 percent of alternative minimum taxable income after
subtracting the exemption amount determined under subdivision 3.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 17.� Minnesota Statutes 2008, section 290.0921,
subdivision 3, is amended to read:
Subd. 3.� Alternative
minimum taxable income.� "Alternative
minimum taxable income" is Minnesota net income as defined in section
290.01, subdivision 19, and includes the adjustments and tax preference items
in sections 56, 57, 58, and 59(d), (e), (f), and (h) of the Internal Revenue
Code.� If a corporation files a separate
company Minnesota tax return, the minimum tax must be computed on a separate
company basis.� If a corporation is part
of a tax group filing a unitary return, the minimum tax must be computed on a
unitary basis.� The following adjustments
must be made.�
(1) For purposes of the
depreciation adjustments under section 56(a)(1) and 56(g)(4)(A) of the Internal
Revenue Code, the basis for depreciable property placed in service in a taxable
year beginning before January 1, 1990, is the adjusted basis for federal income
tax purposes, including any modification made in a taxable year under section
290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09,
subdivision 7, paragraph (c).�
For taxable years beginning
after December 31, 2000, the amount of any remaining modification made under
section 290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09,
subdivision 7, paragraph (c), not previously deducted is a depreciation
allowance in the first taxable year after December 31, 2000.�
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(2) The portion of the depreciation deduction allowed for
federal income tax purposes under section 168(k) of the Internal Revenue Code
that is required as an addition under section 290.01, subdivision 19c, clause
(15), is disallowed in determining alternative minimum taxable income.�
(3) The subtraction for depreciation allowed under section 290.01,
subdivision 19d, clause (18) (17), is allowed as a depreciation
deduction in determining alternative minimum taxable income.�
(4) The alternative tax net operating loss deduction under
sections 56(a)(4) and 56(d) of the Internal Revenue Code does not apply.�
(5) The special rule for certain
dividends under section 56(g)(4)(C)(ii) of the Internal Revenue Code does not
apply.�
(6) The special rule for dividends from section 936 companies
under section 56(g)(4)(C)(iii) does not apply.�
(7) The tax preference for depletion under section 57(a)(1)
of the Internal Revenue Code does not apply.�
(8) The tax preference for intangible drilling costs under
section 57(a)(2) of the Internal Revenue Code must be calculated without regard
to subparagraph (E) and the subtraction under section 290.01, subdivision 19d,
clause (4).�
(9) The tax preference for tax exempt
interest under section 57(a)(5) of the Internal Revenue Code does not
apply.�
(10) The tax preference for charitable contributions of appreciated
property under section 57(a)(6) of the Internal Revenue Code does not
apply.�
(11) For purposes of calculating the tax preference for
accelerated depreciation or amortization on certain property placed in service
before January 1, 1987, under section 57(a)(7) of the Internal Revenue Code,
the deduction allowable for the taxable year is the deduction allowed under
section 290.01, subdivision 19e.�
For taxable years beginning after December 31, 2000, the
amount of any remaining modification made under section 290.01, subdivision
19e, not previously deducted is a depreciation or amortization allowance in the
first taxable year after December 31, 2004.�
(12) For purposes of calculating the adjustment for adjusted
current earnings in section 56(g) of the Internal Revenue Code, the term
"alternative minimum taxable income" as it is used in section 56(g)
of the Internal Revenue Code, means alternative minimum taxable income as
defined in this subdivision, determined without regard to the adjustment for adjusted
current earnings in section 56(g) of the Internal Revenue Code.�
(13) For purposes of determining the amount of adjusted
current earnings under section 56(g)(3) of the Internal Revenue Code, no
adjustment shall be made under section 56(g)(4) of the Internal Revenue Code
with respect to (i) the amount of foreign dividend gross-up subtracted as
provided in section 290.01, subdivision 19d, clause (1), (ii) the amount of refunds of income, excise, or
franchise taxes subtracted as provided in section 290.01, subdivision 19d,
clause (9), or (iii) the amount of royalties, fees or other like income
subtracted as provided in section 290.01, subdivision 19d, clause (10).�
(14) Alternative minimum taxable income excludes the income
from operating in a job opportunity building zone as provided under section
469.317.�
(15) Alternative minimum taxable income excludes the income
from operating in a biotechnology and health sciences industry zone as provided
under section 469.337.�
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(16) Alternative minimum taxable income excludes the income
from operating in an international economic development zone as provided under
section 469.326.�
Items of tax preference must not be reduced below zero as a
result of the modifications in this subdivision.�
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 18.� Minnesota
Statutes 2008, section 290.17, subdivision 2, is amended to read:
Subd. 2.� Income not derived from conduct of a trade
or business.� The income of a
taxpayer subject to the allocation rules that is not derived from the conduct
of a trade or business must be assigned in accordance with paragraphs (a) to
(f):�
(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from
wages as defined in section 3401(a) and (f) of the Internal Revenue Code is
assigned to this state if, and to the extent that, the work of the employee is
performed within it; all other income from such sources is treated as income
from sources without this state.�
Severance pay shall be considered income from labor or
personal or professional services.�
(2) In the case of an individual who is a nonresident of
Minnesota and who is an athlete or entertainer, income from compensation for
labor or personal services performed within this state shall be determined in
the following manner:�
(i) The amount of income to be assigned to Minnesota for an
individual who is a nonresident salaried athletic team employee shall be
determined by using a fraction in which the denominator contains the total
number of days in which the individual is under a duty to perform for the
employer, and the numerator is the total number of those days spent in
Minnesota.� For purposes of this
paragraph, off-season training activities, unless conducted at the team's
facilities as part of a team imposed program, are not included in the total
number of duty days.� Bonuses earned as a
result of play during the regular season or for participation in championship,
play-off, or all-star games must be allocated under the formula.� Signing bonuses are not subject to allocation
under the formula if they are not conditional on playing any games for the
team, are payable separately from any other compensation, and are
nonrefundable; and
(ii) The amount of income to be assigned to Minnesota for an
individual who is a nonresident, and who is an athlete or entertainer not listed
in clause (i), for that person's athletic or entertainment performance in
Minnesota shall be determined by assigning to this state all income from
performances or athletic contests in this state.�
(3) For purposes of this section, amounts received by a
nonresident as "retirement income" as defined in section (b)(1) of
the State Income Taxation of Pension Income Act, Public Law 104-95, are not
considered income derived from carrying on a trade or business or from wages or
other compensation for work an employee performed in Minnesota, and are not
taxable under this chapter.�
(b) Income or gains from tangible property located in this
state that is not employed in the business of the recipient of the income or
gains must be assigned to this state.�
(c) Income or gains from intangible personal property not
employed in the business of the recipient of the income or gains must be
assigned to this state if the recipient of the income or gains is a resident of
this state or is a resident trust or estate.�
Gain on the sale of a partnership interest is allocable to
this state in the ratio of the original cost of partnership tangible property
in this state to the original cost of partnership tangible property everywhere,
determined at the time of the sale.� If
more than 50 percent of the value of the partnership's assets consists of
intangibles, gain or loss from
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the sale of the partnership interest is allocated to this
state in accordance with the sales factor of the partnership for its first full
tax period immediately preceding the tax period of the partnership during which
the partnership interest was sold.�
Gain on the sale of an interest in a single member limited
liability company that is disregarded for federal income tax purposes is
allocable to this state as if the single member limited liability company did
not exist and the assets of the limited liability company are personally owned
by the sole member.
Gain on the sale of goodwill or income from a covenant not to
compete that is connected with a business operating all or partially in
Minnesota is allocated to this state to the extent that the income from the
business in the year preceding the year of sale was assignable to Minnesota
under subdivision 3.�
When an employer pays an employee for a covenant not to
compete, the income allocated to this state is in the ratio of the employee's
service in Minnesota in the calendar year preceding leaving the employment of
the employer over the total services performed by the employee for the employer
in that year.�
(d) Income from winnings on a bet made by an individual while
in Minnesota is assigned to this state.�
In this paragraph, "bet" has the meaning given in section
609.75, subdivision 2, as limited by section 609.75, subdivision 3, clauses
(1), (2), and (3).�
(e) All items of gross income not covered in paragraphs (a)
to (d) and not part of the taxpayer's income from a trade or business shall be
assigned to the taxpayer's domicile.�
(f) For the purposes of this section, working as an employee shall
not be considered to be conducting a trade or business.�
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 19.� Laws
2010, chapter 216, section 2, subdivision 3, is amended to read:
Subd. 3.� Certification of qualified investors.� (a) Investors may apply to the
commissioner for certification as a qualified investor for a taxable year.� The application must be in the form and be
made under the procedures specified by the commissioner, accompanied by an
application fee of $350.� Application
fees are deposited in the small business investment tax credit administration
account in the special revenue fund.� The
application for certification for 2010 must be made available on the
department's Web site by August 1, 2010.�
Applications for subsequent years'
certification must be made available on the department's Web site by November 1
of the preceding year.
(b) Within 30 days of receiving an application for
certification under this subdivision, the commissioner must either certify the
investor as satisfying the conditions required of a qualified investor, request
additional information from the investor, or reject the application for
certification.� If the commissioner
requests additional information from the investor, the commissioner must either
certify the investor or reject the application within 30 days of receiving the
additional information.� If the
commissioner neither certifies the investor nor rejects the application within
30 days of receiving the original application or within 30 days of receiving
the additional information requested, whichever is later, then the application
is deemed rejected, and the commissioner must refund the $350 application
fee.� An investor who applies for
certification and is rejected may reapply.
(c) To receive certification, an investor must (1) be a
natural person; and (2) certify to the commissioner that the investor will
only invest in a transaction that is exempt under section 80A.46, clause (13)
or (14), or in a security registered under section 80A.50, paragraph (b).
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(d) In order for a qualified investment in a qualified small
business to be eligible for tax credits, a qualified investor who makes the
investment must have applied for and received certification for the calendar
year prior to making the qualified investment, except in the case of an
investor who is not an accredited investor, within the meaning of Regulation D
of the Securities and Exchange Commission, Code of Federal Regulations, title
17, section 230.501, paragraph (a), application for certification may be made
within 30 days after making the qualified investment.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
ARTICLE 4
SALES AND USE TAXES
Section 1.� Minnesota
Statutes 2008, section 289A.50, subdivision 2, is amended to read:
Subd. 2.� Refund of sales tax to vendors;
limitation.� (a) If a vendor
has collected from a purchaser and remitted to the state a tax on a transaction
that is not subject to the tax imposed by chapter 297A, the tax is refundable
to the vendor only if and to the extent that the tax and any interest earned on
the tax is credited to amounts due to the vendor by the purchaser or returned
to the purchaser by the vendor.
(b) In addition to the requirements of subdivision 1, a
claim for refund under this subdivision must state in writing that the tax and
interest earned on the tax has been or will be refunded or credited to the
purchaser by the vendor.
(c) Within 60 days after the date the commissioner issues the
refund, any amount not refunded or credited to the purchaser by the vendor, as
required by paragraph (a), must be returned to the commissioner by the vendor.
(d) After the commissioner refunds the tax and interest to the
vendor, if the commissioner determines that the vendor did not refund or credit
the tax and interest as provided in this subdivision, or did not return the
amount required to be returned under paragraph (c), the commissioner may assess
the vendor for underpayment of tax and interest equal to that portion of the
amount that was not refunded or credited to the purchaser.� The assessment bears interest which is
computed at the rate specified in section 270C.40, subdivision 5, on the unpaid
amount from the date the commissioner issues the refund until the date the
amount is paid to the commissioner.� The
assessment may be made at any time within 3-1/2 years after the commissioner
refunds the tax and interest to the vendor.�
If part of the refund was induced by fraud or misrepresentation of a
material fact, the assessment may be made at any time.
EFFECTIVE
DATE.� This section is effective for
refunds issued after June 30, 2010.
Sec. 2.� Minnesota
Statutes 2008, section 297A.62, as amended by Laws 2009, chapter 88, article 4,
section 4, is amended to read:
297A.62 SALES TAX IMPOSED;
RATES.�
Subdivision 1.� Generally.�
Except as otherwise provided in subdivision 3 or in this chapter, a
sales tax of 6.5 percent is imposed on the gross receipts from retail sales as
defined in section 297A.61, subdivision 4, made in this state or to a
destination in this state by a person who is required to have or voluntarily
obtains a permit under section 297A.83, subdivision 1.�
Subd. 1a.� Constitutionally required sales tax
increase.� Except as otherwise
provided in subdivision 3 or in this chapter, an additional sales tax of
0.375 percent, as required under the Minnesota Constitution, article XI,
section 15, is imposed on the gross receipts from retail sales as defined in
section 297A.61, subdivision 4, made in this state or to a destination in this
state by a person who is required to have or voluntarily obtains a permit under
section 297A.83, subdivision 1.� This
additional tax expires July 1, 2034.
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Subd. 3.� Manufactured housing and park
trailers.� For retail sales of
manufactured homes as defined in section 327.31, subdivision 6, for residential
uses, the sales tax under subdivision subdivisions 1 and 1a
is imposed on 65 percent of the dealer's cost of the manufactured home.� For retail sales of new or used park
trailers, as defined in section 168.002, subdivision 23, the sales tax under subdivision
subdivisions 1 and 1a is imposed on 65 percent of the sales price
of the park trailer.�
Subd. 4.�
Combined rates.� In this chapter, wherever there is a
reference to the rate under subdivision 1, or to a combined rate under
subdivisions 1 and 1a, the rate to be applied is the combined rate under
subdivisions 1 and 1a until the additional tax imposed by subdivision 1a
expires.� This subdivision does not apply
to section 297A.65.
EFFECTIVE
DATE.� This section is effective
retroactively for sales and purchases made after June 30, 2009, except for
sales and purchases subject to subdivision 3.�
This section is effective for sales and purchases subject to subdivision
3 made after June 30, 2010.
Sec. 3.� Minnesota
Statutes 2008, section 297A.665, is amended to read:
297A.665 PRESUMPTION OF TAX;
BURDEN OF PROOF.�
(a) For the purpose of the proper administration of this
chapter and to prevent evasion of the tax, until the contrary is established,
it is presumed that:�
(1) all gross receipts are subject to the tax; and
(2) all retail sales for delivery in Minnesota are for
storage, use, or other consumption in Minnesota.�
(b) The burden of proving that a sale is not a taxable retail
sale is on the seller.� However, a seller
is relieved of liability if:�
(1) the seller obtains a fully completed exemption
certificate or all the relevant information required by section 297A.72,
subdivision 2, at the time of the sale or within 90 days after the date of the
sale; or
(2) if the seller has not obtained a fully completed
exemption certificate or all the relevant information required by section
297A.72, subdivision 2, within the time provided in clause (1), within 120 days
after a request for substantiation by the commissioner, the seller either:�
(i) obtains in good faith a fully completed exemption
certificate or all the relevant information required by section 297A.72,
subdivision 2, from the purchaser; or
(ii) proves by other means that the transaction was not
subject to tax.�
(c) Notwithstanding paragraph (b), relief from liability does
not apply to a seller who:�
(1) fraudulently fails to collect the tax; or
(2) solicits purchasers to participate in the unlawful claim
of an exemption.�
(d) A certified service provider, as defined in section
297A.995, subdivision 2, is relieved of liability under this section to the
extent a seller who is its client is relieved of liability.
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(e) A purchaser of tangible personal property or any items
listed in section 297A.63 that are shipped or brought to Minnesota by the
purchaser has the burden of proving that the property was not purchased from a
retailer for storage, use, or consumption in Minnesota.�
(f) If a seller claims that certain sales are exempt and does
not provide the certificate, information, or proof required by paragraph (b),
clause (2), within 120 days after the date of the commissioner's request for
substantiation, then the exemptions claimed by the seller that required
substantiation are disallowed.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 4.� Minnesota
Statutes 2008, section 297A.68, subdivision 39, is amended to read:
Subd. 39.� Preexisting bids or contracts.� (a) The sale of tangible personal
property or services is exempt from tax or a tax rate increase for a period of
six months from the effective date of the law change that results in the
imposition of the tax or the tax rate increase under this chapter if:
(1) the act imposing the tax or increasing the tax rate does
not have transitional effective date language for existing construction
contracts and construction bids; and
(2) the requirements of paragraph (b) are met.
(b) A sale is tax exempt under paragraph (a) if it meets the
requirements of either clause (1) or (2):
(1) For a construction contract:
(i) the goods or services sold must be used for the
performance of a bona fide written lump sum or fixed price construction
contract;
(ii) the contract must be entered into before the date the
goods or services become subject to the sales tax or the tax rate was
increased;
(iii) the contract must not provide for allocation of future
taxes; and
(iv) for each qualifying contract the contractor must give
the seller keep documentation of the contract on which an exemption
is to be claimed.
(2) For a construction bid:
(i) the goods or services sold must be used pursuant to an
obligation of a bid or bids;
(ii) the bid or bids must be submitted and accepted before
the date the goods or services became subject to the sales tax or the tax rate
was increased;
(iii) the bid or bids must not be able to be withdrawn,
modified, or changed without forfeiting a bond; and
(iv) for each qualifying bid, the contractor must give the
seller keep documentation of the bid on which an exemption is to be
claimed.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
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Sec. 5.� Minnesota Statutes 2008, section 297A.70,
subdivision 13, is amended to read:
Subd. 13.� Fund-raising
sales by or for nonprofit groups.� (a)
The following sales by the specified organizations for fund-raising purposes
are exempt, subject to the limitations listed in paragraph (b):�
(1) all sales made by an
a nonprofit organization that exists solely for the purpose of providing
educational or social activities for young people primarily age 18 and under;
(2) all sales made by an
organization that is a senior citizen group or association of groups if (i) in
general it limits membership to persons age 55 or older; (ii) it is organized
and operated exclusively for pleasure, recreation, and other nonprofit purposes;
and (iii) no part of its net earnings inures to the benefit of any private
shareholders;
(3) the sale or use of
tickets or admissions to a golf tournament held in Minnesota if the beneficiary
of the tournament's net proceeds qualifies as a tax-exempt organization under
section 501(c)(3) of the Internal Revenue Code; and
(4) sales of candy sold for
fund-raising purposes by a nonprofit organization that provides educational and
social activities primarily for young people age 18 and under.�
(b) The exemptions listed in
paragraph (a) are limited in the following manner:�
(1) the exemption under
paragraph (a), clauses (1) and (2), applies only if the gross annual receipts
of the organization from fund-raising do not exceed $10,000; and
(2) the exemption under
paragraph (a), clause (1), does not apply if the sales are derived from
admission charges or from activities for which the money must be deposited with
the school district treasurer under section 123B.49, subdivision 2, or be
recorded in the same manner as other revenues or expenditures of the school
district under section 123B.49, subdivision 4.�
(c) Sales of tangible
personal property are exempt if the entire proceeds, less the necessary
expenses for obtaining the property, will be contributed to a registered
combined charitable organization described in section 43A.50, to be used
exclusively for charitable, religious, or educational purposes, and the
registered combined charitable organization has given its written permission
for the sale. �Sales that occur over a
period of more than 24 days per year are not exempt under this paragraph.�
(d) For purposes of this
subdivision, a club, association, or other organization of elementary or
secondary school students organized for the purpose of carrying on sports,
educational, or other extracurricular activities is a separate organization
from the school district or school for purposes of applying the $10,000
limit.�
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 6.� Minnesota Statutes 2008, section 297A.71,
subdivision 23, is amended to read:
Subd. 23.� Construction
materials for qualified low-income housing projects.� (a) Purchases of materials and supplies
used or consumed in and equipment incorporated into the construction,
improvement, or expansion of qualified low-income housing projects are exempt
from the tax imposed under this chapter if the owner of the qualified
low-income housing project is:
(1) the public housing
agency or housing and redevelopment authority of a political subdivision;
(2) an entity exercising the
powers of a housing and redevelopment authority within a political subdivision;
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(3) a limited partnership in which the sole or managing
general partner is an authority under clause (1) or an entity under clause (2) oder,
(4), or (5);
(4) a nonprofit corporation subject to the provisions of
chapter 317A, and qualifying under section 501(c)(3) or 501(c)(4) of the
Internal Revenue Code of 1986, as amended; oder
(5) a limited liability company if it consists of a sole
member that is an entity under clause (4); or
(6) an owner entity, as defined in Code of Federal
Regulations, title 24, part 941.604, for a qualified low-income housing project
described in paragraph (b), clause (5).
This exemption applies regardless of whether the purchases
are made by the owner of the facility or a contractor.
(b) For purposes of this exemption, "qualified
low-income housing project" means:
(1) a housing or mixed use project in which at least 20
percent of the residential units are qualifying low-income rental housing units
as defined in section 273.126;
(2) a federally assisted low-income housing project financed
by a mortgage insured or held by the United States Department of Housing and
Urban Development under United States Code, title 12, section 1701s,
1715l(d)(3), 1715l(d)(4), or 1715z-1; United States Code, title 42, section
1437f; the Native American Housing Assistance and Self-Determination Act,
United States Code, title 25, section 4101 et seq.; or any similar successor
federal low-income housing program;
(3) a qualified low-income housing project as defined in
United States Code, title 26, section 42(g), meeting all of the requirements
for a low-income housing credit under section 42 of the Internal Revenue Code
regardless of whether the project actually applies for or receives a low-income
housing credit;
(4) a project that will be operated in compliance with
Internal Revenue Service revenue procedure 96-32; or
(5) a housing or mixed use project in which all or a portion
of the residential units are subject to the requirements of section 5 of the
United States Housing Act of 1937.
(c) For a project, a portion of which is not used for
low-income housing units, the amount of purchases that are exempt under this
subdivision must be determined by multiplying the total purchases, as specified
in paragraph (a), by the ratio of:
(1) the total gross square footage of units subject to the
income limits under section 273.126, the financing for the project, the federal
low-income housing tax credit, revenue procedure 96-32, or section 5 of the
United States Housing Act of 1937, as applicable to the project; and
(2) the total gross square footage of all units in the
project.
(d) The tax must be imposed and collected as if the rate
under section 297A.62, subdivision 1, applied, and then refunded in the manner
provided in section 297A.75.�
EFFECTIVE
DATE.� This section is effective for sales
and purchases made after June 30, 2010.
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Sec. 7.� Minnesota
Statutes 2008, section 297A.71, subdivision 39, is amended to read:
Subd. 39.� Hydroelectric generating facility.� Materials and supplies used or consumed in
the construction of a 10.3 megawatt run-of-the-river hydroelectric generating
facility that meets the requirements of this subdivision are exempt.� To qualify for the exemption under this
subdivision, a hydroelectric generating facility must:
(1) utilize between 12 and 16 turbine generators at a dam
site existing on March 31, 1994;
(2) be located on land within 3,000 feet of a 13.8 kilovolt
distribution circuit; and
(3) be eligible to receive a renewable energy production
incentive payment under section 216C.41.
This exemption applies to materials and
supplies purchased after April 30, 2006, and on or before December 31, 2010.
EFFECTIVE DATE.� This section is effective retroactively for sales and purchases made
after December 31, 2009.
Sec. 8.� Minnesota
Statutes 2008, section 297A.71, is amended by adding a subdivision to read:
Subd. 42.�
Aerospace defense
manufacturing facility.� (a)
Materials and supplies used or consumed in, capital equipment incorporated
into, and privately owned infrastructure in support of the construction,
improvement, or expansion of an aerospace defense manufacturing facility are
exempt if:
(1) the facility is used for the manufacturing of aerospace
or defense-related sensors and the production of micro-electro-mechanical systems;
and
(2) the total capital investment made at the facility is at
least $59,000,000.
(b) The tax must be imposed and collected as if the rate
under section 297A.62, subdivision 1, applied, and refunded in the manner
provided in section 297A.75, only after the following criteria have been met:
(1) a refund may not be issued until the owner of the
aerospace defense manufacturing facility has received certification from the
Department of Employment and Economic Development that the aerospace defense manufacturing
facility employs no less than 1,653 full-time equivalent workers within the
state, and has made a total capital investment of at least $59,000,000;
(2) for each year that the owner of the aerospace defense
manufacturing facility receives certification from the Department of Employment
and Economic Development that no less than 1,653 full-time equivalent worker
residents are employed workers within the state, the refund may be issued to
the owner of the aerospace defense manufacturing facility at a rate of 25
percent of the total allowable refund payable to date, provided that the
Department of Employment and Economic Development continues to certify that no
less than 1,653 full-time equivalent workers are employed workers within the
state, the commissioner of revenue may make annual payments of the remaining
refund until all of the refund has been paid; and
(3) to receive the refund, the owner of the aerospace defense
manufacturing facility must initially apply to the Department of Employment and
Economic Development for certification no later than one year from the final
completion date of construction of the expansion of the aerospace defense
manufacturing facility.
EFFECTIVE
DATE.� This section is effective for sales
and purchases made after July 1, 2010, and before December 31, 2015.
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Sec. 9.� Minnesota
Statutes 2009 Supplement, section 297A.75, subdivision 1, is amended to read:
Subdivision 1.� Tax collected.� The tax on the gross receipts from the
sale of the following exempt items must be imposed and collected as if the sale
were taxable and the rate under section 297A.62, subdivision 1, applied.� The exempt items include:
(1) capital equipment exempt under section 297A.68,
subdivision 5;
(2) building materials for an agricultural processing
facility exempt under section 297A.71, subdivision 13;
(3) building materials for mineral production facilities
exempt under section 297A.71, subdivision 14;
(4) building materials for correctional facilities under
section 297A.71, subdivision 3;
(5) building materials used in a residence for disabled
veterans exempt under section 297A.71, subdivision 11;
(6) elevators and building materials exempt under section
297A.71, subdivision 12;
(7) building materials for the Long Lake Conservation Center
exempt under section 297A.71, subdivision 17;
(8) materials and supplies for qualified low-income housing
under section 297A.71, subdivision 23;
(9) materials, supplies, and equipment
for municipal electric utility facilities under section 297A.71, subdivision
35;
(10) equipment and materials used for the generation,
transmission, and distribution of electrical energy and an aerial camera
package exempt under section 297A.68, subdivision 37;
(11) tangible personal property and taxable services and
construction materials, supplies, and equipment exempt under section 297A.68,
subdivision 41;
(12) commuter rail vehicle and repair parts under section
297A.70, subdivision 3, clause (11);
(13) materials, supplies, and equipment for construction or
improvement of projects and facilities under section 297A.71, subdivision 40; and
(14) materials, supplies, and equipment for construction or
improvement of a meat processing facility exempt under section 297A.71,
subdivision 41; and
(15) materials, supplies, and equipment for construction,
improvement, or expansion of an aerospace defense manufacturing facility exempt
under section 297A.71, subdivision 42.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 10.�
Minnesota Statutes 2009 Supplement, section 297A.75, subdivision 2, is
amended to read:
Subd. 2.� Refund; eligible persons.� Upon application on forms prescribed by
the commissioner, a refund equal to the tax paid on the gross receipts of the
exempt items must be paid to the applicant.�
Only the following persons may apply for the refund:
(1) for subdivision 1, clauses (1) to (3), the applicant must
be the purchaser;
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(2) for subdivision 1,
clauses (4) and (7), the applicant must be the governmental subdivision;
(3) for subdivision 1,
clause (5), the applicant must be the recipient of the benefits provided in
United States Code, title 38, chapter 21;
(4) for subdivision 1,
clause (6), the applicant must be the owner of the homestead property;
(5) for subdivision 1,
clause (8), the owner of the qualified low-income housing project;
(6) for subdivision 1,
clause (9), the applicant must be a municipal electric utility or a joint
venture of municipal electric utilities;
(7) for subdivision 1,
clauses (10), (11), and (14), and (15), the owner of the
qualifying business; and
(8) for subdivision 1,
clauses (12) and (13), the applicant must be the governmental entity that owns
or contracts for the project or facility.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 11.� Minnesota Statutes 2008, section 297A.75,
subdivision 3, is amended to read:
Subd. 3.� Application.� (a) The application must include
sufficient information to permit the commissioner to verify the tax paid.� If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8),
(9), (10), (11), (12), (13), oder (14), or (15), the contractor,
subcontractor, or builder must furnish to the refund applicant a statement
including the cost of the exempt items and the taxes paid on the items unless
otherwise specifically provided by this subdivision.� The provisions of sections 289A.40 and
289A.50 apply to refunds under this section.
(b) An applicant may not
file more than two applications per calendar year for refunds for taxes paid on
capital equipment exempt under section 297A.68, subdivision 5.
(c) Total refunds for
purchases of items in section 297A.71, subdivision 40, must not exceed
$5,000,000 in fiscal years 2010 and
2011.� Applications for refunds for
purchases of items in sections 297A.70, subdivision 3, paragraph (a),
clause (11), and 297A.71, subdivision 40, must not be filed until after June
30, 2009.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 12.� Minnesota Statutes 2008, section 297A.995,
subdivision 10, is amended to read:
Subd. 10.� Relief
from certain liability.� (a)
Notwithstanding subdivision 9, sellers and certified service providers are
relieved from liability to the state for having charged and collected the
incorrect amount of sales or use tax resulting from the seller or certified
service provider (1) relying on erroneous data provided by the commissioner in
the database files on tax rates, boundaries, or taxing jurisdiction
assignments, or (2) relying on erroneous data provided by the state in its
taxability matrix concerning the taxability of products and services.
(b) Notwithstanding
subdivision 9, sellers and certified service providers are relieved from
liability to the state for having charged and collected the incorrect amount of
sales or use tax resulting from the seller or certified service provider
relying on the certification by the commissioner as to the accuracy of a
certified automated system as to the taxability of product categories.� The relief from liability provided by this
paragraph does not apply when the sellers or certified service providers have
incorrectly classified an item or transaction into a product category, unless
the item or transaction within a product category was approved by the
commissioner or approved jointly by the states
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that are signatories to the
agreement.� The sellers and certified
service providers must revise a classification within ten days after receipt of
notice from the commissioner that an item or transaction within a product category
is incorrectly classified as to its taxability, or they are not relieved from
liability for the incorrect classification following the notification.
(c) Notwithstanding subdivision 9, if there are not at least
30 days between the enactment of a new tax rate and the effective date of the
new rate, sellers and certified service providers shall be relieved from
liability for failing to collect tax at the new rate during the first 30 days
of the rate change, beginning on the day after the date of enactment of the
rate change, provided the seller or certified service provider continued to
impose and collect the tax at the immediately preceding tax rate during this
period.� Relief from liability provided
by this paragraph shall not apply if the failure to collect at the newly
effective rate extends beyond 30 days after the enactment of the new rate.� The relief provided by this paragraph shall
not apply if the commissioner determines that the seller or certified service
provider fraudulently failed to collect at the new rate or that the seller or
certified service provider solicited purchasers based on the immediately
preceding tax rate.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 13.�
Minnesota Statutes 2008, section 297A.995, subdivision 11, is amended to
read:
Subd. 11.� Purchaser relief from certain
liability.� (a) Notwithstanding other
provisions in the law, a purchaser is relieved from liability resulting from
having paid the incorrect amount of sales or use tax if a purchaser, whether or
not holding a the commissioner gave the purchaser direct pay permit
authorization, or a purchaser's seller or certified service provider
relied on erroneous data provided by this state in the database files on tax
rates, boundaries, taxing jurisdiction assignments, or in the taxability
matrix.� After providing an address-based
database for assigning taxing jurisdictions and their associated rates, no
relief for errors resulting from the purchaser's reliance on a database using
zip codes is allowed.
(b) With respect to reliance on the taxability matrix
provided by this state in paragraph (a), relief is limited to erroneous
classifications in the taxability matrix for items included within the
classifications as "taxable," "exempt," "included in sales
price," "excluded from sales price," "included in the
definition," and "excluded from the definition."
(c) Notwithstanding other provisions in the law, if there are
not at least 30 days between the enactment of a new tax rate and the effective
date of the new rate, a purchaser shall be relieved from liability resulting
from failing to pay the tax at the new rate during the first 30 days of the
rate change, beginning on the day after the date of enactment of the rate
change, whether or not the purchaser has been given direct pay authorization by
the commissioner.� Relief from liability
provided by this paragraph shall not apply if the failure to pay at the newly
effective rate extends beyond 30 days after the enactment of the new rate, and shall
not apply to a purchaser that did not continue to pay the tax at the
immediately preceding tax rate during the 30-day period.� The relief provided by this paragraph shall not apply if the commissioner
determines that the purchaser fraudulently failed to pay at the new rate.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 14.� [645.025] SPECIAL LAWS; LOCAL TAXES.�
Subdivision 1.�
Definitions.� (a) If a special law grants a local
government unit or group of units the authority to impose a local tax other
than sales tax, including but not limited to taxes such as lodging,
entertainment, admissions, or food and beverage taxes, and the Department of
Revenue either has agreed to or is required to administer the tax, such that
the tax is reported and paid with the chapter 297A taxes, then the local
government unit or group of units must adopt each definition used in the
special law as follows:
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(1) the
definition must be identical to the definition found in chapter 297A or in
Minnesota Rules, chapter 8130; or
(2) if the specific term is
not defined either in chapter 297A or in Minnesota Rules, chapter 8130, then
the definition must be consistent with the position of the Department of
Revenue as to the extent of the tax base.
(b) This subdivision does
not apply to terms that are defined by the authorizing special law.
Subd. 2.� Application.� This section applies to a special law
that is described in subdivision 1 that was:
(1) originally enacted prior
to 2010, and that was amended by special law in or after 2010, to extend the
time for imposing the tax or to modify the tax base; or
(2) first enacted in or after
2010.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 15.� Laws 2009, chapter 88, article 4, section 5,
the effective date, is amended to read:
EFFECTIVE DATE.� This section is effective
July 1, 2009, and applies to registrations leases or rentals made
or renewed on or after that date.
EFFECTIVE DATE.� This section is effective retroactively for leases
or rentals made or renewed after June 30, 2009.
ARTICLE 5
LOCAL SALES TAX
Section 1.� Laws 1999, chapter 243, article 4, section
18, subdivision 3, as amended by Laws 2008, chapter 366, article 7, section 13,
is amended to read:
Subd. 3.� Use of
revenues.� (a) Revenues received from
taxes authorized by subdivisions 1 and 2 must be used by the city to pay the
cost of collecting the taxes and to pay for construction and improvement of the
following city facilities:
(1) streets; and
(2) constructing and
equipping the Proctor community activity center.
Authorized expenses include,
but are not limited to, acquiring property, paying construction and operating
expenses related to the development of an authorized facility, and paying debt
service on bonds or other obligations, including lease obligations, issued to
finance the construction, expansion, or improvement of an authorized
facility.� The capital expenses for
all projects authorized under this paragraph that may be paid with these taxes
is limited to $3,600,000, plus an amount equal to the costs related to issuance
of the bonds.
(b) Additional revenues
received from taxes authorized by subdivision 1, may be used by the city to pay
for the following capital improvement projects:�
public utilities, including water, sanitary sewer, storm sewer, and
electric; sidewalks; bikeways and trails; and parks and recreation.
EFFECTIVE DATE.� This section is effective the day following final
enactment, upon compliance by the city of Proctor with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
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Sec. 2.� Laws 1999,
chapter 243, article 4, section 18, subdivision 4, is amended to read:
Subd. 4.� Bonding authority.� (a) The city may issue bonds under Minnesota
Statutes, chapter 475, to finance the capital expenditure and improvement
projects described in subdivision 3.� An
election to approve the bonds under Minnesota Statutes, section 475.58, is not
required.
(b) The issuance of bonds under this subdivision
is not subject to Minnesota Statutes, sections 275.60 and 279.61.
(c) The bonds are not included in computing any debt
limitation applicable to the city, and the levy of taxes under Minnesota
Statutes, section 475.61, to pay principal of and interest on the bonds is not
subject to any levy limitation.
(d) The aggregate principal amount of bonds, plus the
aggregate of the taxes used directly to pay eligible capital expenditures and
improvements, may not exceed $3,600,000, plus an amount equal to the costs
related to issuance of the bonds, including interest on the bonds $10,000,000.
(e) The sales and use and excise taxes authorized in this
section may be pledged to and used for the payment of the bonds and any bonds
issued to refund them only if the bonds and any refunding bonds are general
obligations of the city.
EFFECTIVE
DATE.� This section is effective when
approved by the voters at a general or special election held within two years
after enactment of this section and upon compliance by the city of Proctor with
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 3.� Laws 2002, chapter 377, article 3, section
25, as amended by Laws 2009, chapter 88, article 4, section 19, is amended
to read:
Sec. 25.� ROCHESTER LODGING TAX.�
Subdivision 1.� Authorization.� Notwithstanding Minnesota Statutes,
section 469.190 or 477A.016, or any other law, the city of Rochester may impose
an additional tax of one percent on the gross receipts from the furnishing for
consideration of lodging at a hotel, motel, rooming house, tourist court, or
resort, other than the renting or leasing of it for a continuous period of 30
days or more.
Subd. 1a.� Authorization.� Notwithstanding Minnesota Statutes,
section 469.190 or 477A.016, or any other law, and in addition to the tax
authorized by subdivision 1, the city of Rochester may impose an additional tax
of one percent on the gross receipts from the furnishing for consideration of
lodging at a hotel, motel, rooming house, tourist court, or resort, other than
the renting or leasing of it for a continuous period of 30 days or more only
upon the approval of the city governing body of a total financial package for
the project.
Subd. 2.� Disposition of proceeds.� (a) The gross proceeds from the tax
imposed under subdivision 1 must be used by the city to fund a local convention
or tourism bureau for the purpose of marketing and promoting the city as a
tourist or convention center.
(b) The gross proceeds from the one percent tax imposed under
subdivision 1a shall be used to pay for (1) construction, renovation,
improvement, and expansion of the Mayo Civic Center and related skyway access,
lighting, parking, or landscaping; and (2) for payment of any principal,
interest, or premium on bonds issued to finance the construction, renovation,
improvement, and expansion of the Mayo Civic Center Complex.
Subd. 2a.�
Bonds.� The city of Rochester may issue,
without an election, general obligation bonds of the city, in one or more
series, in the aggregate principal amount not to exceed $43,500,000, to pay for
capital and administrative costs for the design, construction, renovation,
improvement, and expansion of the Mayo Civic Center
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Complex, and related skyway, access, lighting, parking, and
landscaping.� The city may pledge the
lodging tax authorized by subdivision 1a and the food and beverage tax
authorized under Laws 2009, chapter 88, article 4, section 23, to the payment
of the bonds.� The debt represented by
the bonds is not included in computing any debt limitations applicable to the city,
and the levy of taxes required by Minnesota Statutes, section 475.61, to pay
the principal of and interest on the bonds is not subject to any levy
limitation or included in computing or applying any levy limitation applicable
to the city.
Subd. 3.� Expiration of taxing authority.� The authority of the city to impose a tax
under subdivision 1a shall expire when the principal and interest on any bonds
or other obligations issued prior to December 31, 2014, to finance the
construction, renovation, improvement, and expansion of the Mayo Civic Center
Complex and related skyway access, lighting, parking, or landscaping have been
paid, including any bonds issued to refund such bonds, or at an earlier
time as the city shall, by ordinance, determine.� Any funds remaining after completion of
the project and retirement or redemption of the bonds shall be placed in the
general fund of the city.
EFFECTIVE
DATE.� This section is effective the day
after the governing body of the city of Rochester and its chief clerical
officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 4.� Laws
2009, chapter 88, article 4, section 23, subdivision 4, is amended to read:
Subd. 4.� Expiration of taxing authority.� The authority granted under subdivision 1
to the city to impose a one percent tax on food and beverages shall expire when
the principal and interest on any bonds or other obligations issued prior to
December 31, 2014, to finance the construction, renovation, improvement, and
expansion of the Mayo Civic Center Complex and related skyway access, lighting,
parking, or landscaping, and any bonds issued to refund such bonds, have
been paid or at an earlier time as the city shall, by ordinance,
determine.� Any funds remaining after
completion of the project and retirement or redemption of the bonds shall be
placed in the general fund of the city.
EFFECTIVE
DATE.� This section is effective the day
after the governing body of the city of Rochester and its chief clerical
officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 5.� CITY OF DETROIT LAKES; LOCAL TAXES
AUTHORIZED.�
Subdivision 1.�
Food and beverage tax
authorized.� Notwithstanding
Minnesota Statutes, section 477A.016, or any ordinance, city charter, or other
provision of law, the city of Detroit Lakes may, if approved by the voters at a
general or special election held within two years of enactment of this section,
impose a sales tax of up to one percent on the gross receipts of all food and
beverages sold by a restaurant or place of refreshment, as defined by
resolution of the city, that is located within the city.� For purposes of this section, "food and
beverages" include retail on-sale of intoxicating liquor and fermented
malt beverages.
Subd. 2.�
Use of proceeds from
authorized taxes.� The
proceeds of the taxes imposed under subdivision 1 must be used by the city to
pay all or a portion of the expenses of the following projects:
(1) control of flowering rush infestation;
(2) construction and improvement of bike trail facilities;
(3) parking improvements near public facilities; and
(4) redevelopment of the area returned to the city as a
result of realignment of Highway 10.
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Subd. 3.�
Expiration of taxing
authority.� The taxes
authorized under subdivision 1 expire when the governing body of the city
determines that sufficient revenues have been raised to finance the projects in
subdivision 2, including the amount to prepay to retire at maturity the
principal, interest, and premium due on any bonds issued for the projects.
Subd. 4.�
Collection, administration,
and enforcement. �The city may
enter into an agreement with the commissioner of revenue to administer,
collect, and enforce the taxes under subdivision 1.� If the commissioner agrees to collect the
tax, the provisions of Minnesota Statutes, section 297A.99, related to collection,
administration, and enforcement apply.
EFFECTIVE
DATE.� This section is effective the day
after the governing body of the city of Detroit Lakes and its chief clerical
officer comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 6.� CITY OF MARSHALL; LOCAL TAXES
AUTHORIZED.�
Subdivision 1.�
Authorization.� Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1, 2, and 3, or 477A.016, or any other law,
ordinance, or city charter, the city of Marshall, if imposed within two years
of the date of final enactment of this section, may impose any or all of the
taxes described in this section.
Subd. 2.�
Bonds.� (a) The city of Marshall may issue
bonds under Minnesota Statutes, chapter 475, to finance all or a portion of the
costs of the new and existing facilities of the Minnesota Emergency Response
and Industry Training Center and all or part of the costs of the facilities of
the Southwest Minnesota Regional Amateur Sports Center, and may issue bonds to
refund bonds previously issued.�
Authorized expenses include, but are not limited to, acquiring property,
predesign, design, and paying construction, furnishing, and equipment costs
related to these facilities.� The
aggregate principal amount of bonds issued under this subdivision may not
exceed $17,290,000, plus an amount to be applied to the payment of the costs of
issuing the bonds.� The bonds may be paid
from or secured by any funds available to the city of Marshall.
(b) The bonds are not included in computing any debt
limitation applicable to the city of Marshall, and any levy of taxes under
Minnesota Statutes, section 475.61, to pay principal and interest on the bonds,
is not subject to any levy limitation.� A
separate election to approve the bonds under Minnesota Statutes, section
475.58, is not required.
Subd. 3.�
Lodging tax.� The city of Marshall may impose by
ordinance a tax of up to 1-1/2 percent on the gross receipts subject to the
lodging tax under Minnesota Statutes, section 469.190, for the purposes specified
in subdivision 4.� This lodging tax is in
addition to any tax imposed under Minnesota Statutes, section 469.190, and may
be imposed within a tax district defined by the city council.
Subd. 4.�
Use of lodging tax revenues.� The revenues derived from the tax
imposed under subdivision 3 must be used by the city of Marshall to pay the
costs of collecting and administering the lodging tax, to pay all or part of
the operating costs of the new and existing facilities of the Minnesota
Emergency Response and Industry Training Center, including the payment of debt
service on bonds issued under subdivision 2, and to pay all or part of the
operating costs of the facilities of the Southwest Minnesota Regional Amateur
Sports Center, including the payment of debt service on bonds issued under
subdivision 2.
Subd. 5.�
Food and beverages tax.� The city of Marshall may impose, if
approved by the voters at a general or special election held within two years
of enactment of this section, an additional sales tax of up to 1-1/2 percent on
gross receipts of food and beverages sold primarily for consumption on the
premises by restaurants and places of refreshment that occur in the city of
Marshall.� The provisions of Minnesota
Statutes, section 297A.99, except subdivisions 1, 2, and 3, govern the
imposition, administration, collection, and enforcement of the tax authorized
under this subdivision.
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Subd. 6.�
Use of food and beverages tax.� The revenues derived from the tax
imposed under subdivision 5 must be used by the city of Marshall to pay the
costs of collecting and administering the food and beverages tax, to pay all or
part of the operating costs of the new and existing facilities of the Minnesota
Emergency Response and Industry Training Center, including the payment of debt
service on bonds issued under subdivision 2, and to pay all or part of the operating
costs of the facilities of the Southwest Minnesota Regional Amateur Sports
Center, including the payment of debt service on bonds issued under subdivision
2.
Subd. 7.�
Termination of taxes.� The taxes imposed under subdivisions 3
and 5 expire at the earlier of (1) 30 years after the tax is first imposed, or
(2) when the city council determines that the amount of revenues received from
the taxes to pay for the capital, operating, and administrative costs of the
facilities under subdivisions 2, 4, and 6 first equals or exceeds the amount
authorized to be spent for the facilities plus the additional amount needed to
pay the costs related to issuance of the bonds under subdivision 2, including
interest on the bonds.� Any funds
remaining after payment of all the costs and retirement or redemption of the
bonds must be placed in the general fund of the city.� The taxes imposed under subdivisions 3 and 5
may expire at an earlier time if the city so determines by ordinance.
EFFECTIVE
DATE.� This section is effective the day
after compliance by the governing body of the city of Marshall with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
Sec. 7.� GIANTS RIDGE RECREATION AREA TAXING
AUTHORITY.�
Subdivision 1.�
Additional taxes authorized.� Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or charter provision to the
contrary, the city of Biwabik, upon approval both by its governing body and by
the vote of at least seven members of the Iron Range Resources and Rehabilitation
Board, may impose any or all of the taxes described in this section.
Subd. 2.�
Use of proceeds.� The proceeds of any taxes imposed
under this section, less refunds and costs of collection, must be deposited into
the Iron Range Resources and Rehabilitation Board account enterprise fund
created under the provisions of Minnesota Statutes, section 298.221, paragraph
(c), and must be dedicated and expended by the commissioner of the Iron Range
Resources and Rehabilitation Board, upon approval by the vote of at least seven
members of the Iron Range Resources and Rehabilitation Board, to pay costs for
the construction, renovation, improvement, expansion, and maintenance of public
recreational facilities located in those portions of the city within the Giants
Ridge Recreation Area as defined in Minnesota Statutes, section 298.22,
subdivision 7, or to pay any principal, interest, or premium on any bond issued
to finance the construction, renovation, improvement, or expansion of such
public recreational facilities.
Subd. 3.�
Lodging tax.� The city of Biwabik, upon approval
both by its governing body and by the vote of at least seven members of the
Iron Range Resources and Rehabilitation Board, may impose, by ordinance, a tax
of not more than five percent on the gross receipts subject to the lodging tax
under Minnesota Statutes, section 469.190.�
This tax is in addition to any tax imposed under Minnesota Statutes,
section 469.190, and may be imposed only on gross lodging receipts generated
within the Giants Ridge Recreation Area as defined in Minnesota Statutes,
section 298.22, subdivision 7.
Subd. 4.�
Admissions and recreation tax.� (a) The city of Biwabik, upon approval
both by its governing body and by the vote of at least seven members of the
Iron Range Resources and Rehabilitation Board, may impose, by ordinance, a tax
of not more than five percent on admission receipts to entertainment and
recreational facilities and on receipts from the rental of recreation equipment,
at sites within the Giants Ridge Recreation Area as defined in Minnesota
Statutes, section 298.22, subdivision 7.�
The provisions of Minnesota Statutes, section 297A.99, except for
subdivisions 2 and 3, govern the imposition, administration, collection, and
enforcement of the tax authorized in this subdivision.
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(b) If the city imposes the tax under paragraph (a), it must
include in the ordinance an exemption for purchases of season tickets or
passes.
Subd. 5.�
Food and beverage tax.� The city of Biwabik, upon approval
both by its governing body and by the vote of at least seven members of the
Iron Range Resources and Rehabilitation Board, may impose, by ordinance, an
additional sales tax of not more than one percent on gross receipts of food and
beverages sold whether it is consumed on or off the premises by restaurants and
places of refreshment as defined by resolution of the city within the Giants
Ridge Recreation Area as defined in Minnesota Statutes, section 298.22,
subdivision 7.� The provisions of
Minnesota Statutes, section 297A.99, except for subdivisions 2 and 3, govern
the imposition, administration, collection, and enforcement of the tax
authorized in this subdivision.
EFFECTIVE
DATE.� This section shall be effective the
day after compliance with Minnesota Statutes, section 645.021, subdivisions 2
and 3, by the governing body of the city of Biwabik.� Notwithstanding Minnesota Statutes, section
645.021, subdivision 3, the city may comply with Minnesota Statutes, section
645.021, at any time before January 1, 2012.
ARTICLE 6
SPECIAL TAXES
Section 1.� Minnesota
Statutes 2008, section 60A.209, subdivision 1, is amended to read:
Subdivision 1.� Authorization; regulation.� A resident of this state may obtain
insurance from an ineligible surplus lines insurer in this state through a
surplus lines licensee.� The licensee
shall first attempt to place the insurance with a licensed insurer, or if that
is not possible, with an eligible surplus lines insurer.� If coverage is not obtainable from a licensed
insurer or an eligible surplus lines insurer, the licensee shall certify to the
commissioner, on a form prescribed by the commissioner, that these attempts
were made.� Upon obtaining coverage from
an ineligible surplus lines insurer, the licensee shall:
(a) Have printed, typed, or stamped in red ink upon the face of
the policy in not less than 10-point type the following notice:� "THIS INSURANCE IS ISSUED PURSUANT TO
THE MINNESOTA SURPLUS LINES INSURANCE ACT.�
THIS INSURANCE IS PLACED WITH AN INSURER THAT IS NOT LICENSED BY THE
STATE NOR RECOGNIZED BY THE COMMISSIONER OF COMMERCE AS AN ELIGIBLE SURPLUS
LINES INSURER.� IN CASE OF ANY DISPUTE
RELATIVE TO THE TERMS OR CONDITIONS OF THE POLICY OR THE PRACTICES OF THE
INSURER, THE COMMISSIONER OF COMMERCE WILL NOT BE ABLE TO ASSIST IN THE
DISPUTE.� IN CASE OF INSOLVENCY, PAYMENT
OF CLAIMS IS NOT GUARANTEED."� The
notice may not be covered or concealed in any manner; and
(b) Collect from the insured appropriate premium taxes, as
provided under chapter 297I, and report the transaction to the commissioner
of revenue on a form prescribed by the commissioner.� If the insured fails to pay the taxes when
due, the insured shall be subject to a civil fine of not more than $3,000, plus
accrued interest from the inception of the insurance.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 2.� Minnesota
Statutes 2008, section 295.55, subdivision 2, is amended to read:
Subd. 2.� Estimated tax; hospitals; surgical
centers.� (a) Each hospital or
surgical center must make estimated payments of the taxes for the calendar year
in monthly installments to the commissioner within 15 days after the end of the
month.
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(b) Estimated tax payments
are not required of hospitals or surgical centers if:� (1) the tax for the current calendar year is less
than $500 or less; or (2) the tax for the previous calendar year is less
than $500, if the taxpayer had a tax liability and was doing business
the entire year or less.
(c) Underpayment of
estimated installments bear interest at the rate specified in section 270C.40,
from the due date of the payment until paid or until the due date of the annual
return whichever comes first.� An
underpayment of an estimated installment is the difference between the amount
paid and the lesser of (1) 90 percent of one-twelfth of the tax for the
calendar year or (2) one-twelfth of the total tax for the previous calendar
year if the taxpayer had a tax liability and was doing business the entire
year.
EFFECTIVE DATE.� This section is effective for gross revenues
received after December 31, 2010.
Sec. 3.� Minnesota Statutes 2008, section 295.55,
subdivision 3, is amended to read:
Subd. 3.� Estimated
tax; other taxpayers.� (a) Each
taxpayer, other than a hospital or surgical center, must make estimated
payments of the taxes for the calendar year in quarterly installments to the
commissioner by April 15, July 15, October 15, and January 15 of the
following calendar year.
(b) Estimated tax payments
are not required if:� (1) the tax for the
current calendar year is less than $500 or less; or (2) the tax
for the previous calendar year is less than $500, if the taxpayer had
a tax liability and was doing business the entire year or less.
(c) Underpayment of
estimated installments bear interest at the rate specified in section 270C.40,
from the due date of the payment until paid or until the due date of the annual
return whichever comes first.� An
underpayment of an estimated installment is the difference between the amount
paid and the lesser of (1) 90 percent of one-quarter of the tax for the
calendar year or (2) one-quarter of the total tax for the previous calendar
year if the taxpayer had a tax liability and was doing business the entire
year.
EFFECTIVE DATE.� This section is effective for gross revenues
received after December 31, 2010.
Sec. 4.� [296A.061]
CANCELLATION OR NONRENEWAL OF LICENSES.�
The commissioner may cancel
a license or not renew a license if one of the following conditions occurs:
(1) the license holder has
not filed a petroleum tax return or report for at least one year;
(2) the license holder has
not reported any petroleum tax liability on the license holder's returns or
reports for at least one year; or
(3) the license holder
requests cancellation of the license.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 5.� Minnesota Statutes 2008, section 297F.01,
subdivision 22a, is amended to read:
Subd. 22a.� Weighted
average retail price.� "Weighted
average retail price" means (1) the average retail price per pack of 20
cigarettes, with the average price weighted by the number of packs sold at each
price, (2) reduced by the sales tax included in the retail price, and (3)
adjusted for the expected inflation from the time of the survey to the
average of the 12 months that the sales tax will be imposed.� The commissioner shall make the inflation
adjustment in accordance with the Consumer Price Index for all urban consumers
inflation indicator as published in the most recent state budget forecast.� The inflation factor for the calendar year in
which the new tax rate takes effect must be
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used.� If the survey indicates that the average
retail price of cigarettes has not increased relative to the average retail
price in the previous year's survey, then no inflation adjustment must be made as provided in section
297F.25, subdivision 1.
EFFECTIVE DATE.� This section is effective January 1, 2011.
Sec. 6.� Minnesota Statutes 2008, section 297F.04, is
amended by adding a subdivision to read:
Subd. 2a.� Cancellation
or nonrenewal.� The
commissioner may cancel a license or not renew a license if one of the
following conditions occurs:
(1) the license holder has
not filed a cigarette or tobacco products tax return for at least one year;
(2) the license holder has
not reported any cigarette or tobacco products tax liability on the license
holder's returns for at least one year; or
(3) the license holder
requests cancellation of the license.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 7.� Minnesota Statutes 2008, section 297F.07,
subdivision 4, is amended to read:
Subd. 4.� Sales
to nonqualified buyers.� A retailer
who sells or otherwise disposes of unstamped or untaxed stock other than to a
qualified purchaser shall collect from the buyer or transferee the tax imposed
by section 297F.05, and remit the tax to the Department of Revenue at the same
time and manner as required by section 297F.09.�
If the retailer fails to collect the tax from the buyer or transferee,
or fails to remit the tax, the retailer is personally responsible for the tax
and the commissioner may seize any product destined to be delivered to the
retailer.� The product so seized shall be
considered contraband and be subject to the procedures outlined in section
297F.21, subdivision 3.� The proceeds
of the sale of the stock may be applied to any tax liability owed by the
retailer after deducting all costs and expenses.�
This
section does not relieve the buyer or possessor of unstamped or untaxed stock
from personal liability for the tax.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 8.� Minnesota Statutes 2008, section 297F.25,
subdivision 1, is amended to read:
Subdivision 1.� Imposition.� (a) A tax is imposed on
distributors on the sale of cigarettes by a cigarette distributor to a retailer
or cigarette subjobber for resale in this state.� The tax is equal to 6.5 percent of the weighted
average retail price.� The weighted
average retail price and must be expressed in cents per pack when
rounded to the nearest one-tenth of a cent.�
The weighted average retail price must be determined annually, with new
rates published by May November 1, and effective for sales on or
after August January 1 of the following year.� The weighted average retail price must be
established by surveying cigarette retailers statewide in a manner and time
determined by the commissioner.� The
commissioner shall make an inflation adjustment in accordance with the Consumer
Price Index for all urban consumers inflation indicator as published in the
most recent state budget forecast.� The
commissioner shall use the inflation factor for the calendar year in which the
new tax rate takes effect.� If the survey
indicates that the average retail price of cigarettes has not increased
relative to the average retail price in the previous year's survey, then the
commissioner shall not make an inflation adjustment.� The determination of the commissioner
pursuant to this subdivision is not a "rule" and is not subject to
the Administrative Procedure Act contained in chapter 14.� As of August 1, 2005, the tax is 25.5
cents per pack of 20 cigarettes.� For
packs of cigarettes with other than 20 cigarettes, the tax must be adjusted
proportionally.
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(b) Notwithstanding paragraph (a), and in lieu of a survey of
cigarette retailers, the tax calculation of the weighted average retail price
for the sales of cigarettes from August 1, 2011, through December 31, 2011,
shall be calculated by:� (1) increasing the
average retail price per pack of 20 cigarettes from the most recent survey by
the percentage change in a weighted average of the presumed legal prices for
cigarettes during the year after completion of that survey, as reported and
published by the Department of Commerce under section 325D.371; (2) subtracting
the sales tax included in the retail price;
and (3) adjusting for expected inflation.�
The rate must be published by May 1 and is effective for sales
after July 31.� If the weighted average
of the presumed legal prices indicates that the average retail price of
cigarettes has not increased relative to the average retail price in the most
recent survey, then no inflation adjustment must be made.� For packs of cigarettes with other than 20
cigarettes, the tax must be adjusted proportionally.
EFFECTIVE
DATE.� This section is effective January
1, 2011.
Sec. 9.� Minnesota
Statutes 2008, section 297I.01, subdivision 9, is amended to read:
Subd. 9.� Gross premiums.� "Gross premiums" means total
premiums paid by policyholders and applicants of policies, whether received in
the form of money or other valuable consideration, on property, persons, lives,
interests and other risks located, resident, or to be performed in this state,
but excluding consideration and premiums for reinsurance assumed from other
insurance companies.
The term (a) "Gross premiums" includes the
total consideration paid to bail bond agents for bail bonds.
(b) For title insurance companies, "gross
premiums" means the charge for title insurance made by a title insurance company
or its agents according to the company's rate filing approved by the
commissioner of commerce without a deduction for commissions paid to or
retained by the agent.� Gross premiums of
a title insurance company does not include any other charge or fee for
abstracting, searching, or examining the title, or escrow, closing, or other
related services.
The term (c) "Gross premiums" includes any
workers' compensation special compensation fund premium surcharge pursuant to
section 176.129.�
(d) "Gross premiums" for surplus lines insurance
includes all related charges, commissions, and fees received by the
licensee.� Gross premiums does not
include the stamping fee, as provided under section 60A.2085, subdivision 7,
nor the operating assessment, as provided under section 60A.208, subdivision 8.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 10.�
Minnesota Statutes 2008, section 297I.05, subdivision 7, is amended to
read:
Subd. 7.� Surplus lines tax.� (a) A tax is imposed on surplus lines
licensees.� The rate of tax is equal to
three percent of the gross premiums less return premiums received by the
licensee minus any licensee association operating assessments paid under
section 60A.208.�
(b) If surplus lines insurance placed by a surplus lines
licensee and taxed under this subdivision covers a subject of insurance
residing, located, or to be performed outside this state, a proper pro rata
portion of the entire premium payable for all of that insurance must be allocated
according to the subjects of insurance residing, located, or to be performed in
this state.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
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Sec. 11.�
Minnesota Statutes 2008, section 297I.30, subdivision 1, is amended to
read:
Subdivision 1.� General rule.� On or before March 1, every insurer
taxpayer subject to taxation under section 297I.05, subdivisions 1 to 6
5, and 9, 10, 12, paragraphs (a), clauses (1) to (5)
(4), and (b), (c), and (d), and 14, shall file an annual
return for the preceding calendar year setting forth such information as the
commissioner may reasonably require on forms in the form prescribed
by the commissioner.�
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 12.�
Minnesota Statutes 2008, section 297I.30, subdivision 2, is amended to
read:
Subd. 2.� Surplus lines licensees and purchasing
groups.� On or before February 15 and
August 15 of each year, every surplus lines licensee subject to taxation under
section 297I.05, subdivision 7, and every purchasing group or member of a
purchasing group subject to tax under section 297I.05, subdivision 12,
paragraph (a), clause (6) (5), shall file a return with the
commissioner for the preceding six-month period ending December 31, or June 30,
setting forth any information the commissioner reasonably prescribes
on forms in the form prescribed by the commissioner.�
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 13.�
Minnesota Statutes 2008, section 297I.30, subdivision 7, is amended to
read:
Subd. 7.� Surcharge.�
(a)(1) By April 30 of each year, every company required to
pay the surcharge under section 297I.10, subdivision 1, shall file a return for
the five-month period ending March 31 setting forth any information the
commissioner reasonably requires on forms in the form prescribed by
the commissioner.�
(2) (b)
By June 30 of each year, every company required to pay the surcharge under
section 297I.10, subdivision 1, shall file a return for the two-month period ending
May 31 setting forth any information the commissioner reasonably requires on
forms in the form prescribed by the commissioner.�
(3) (c) By November 30 of each year, every company
required to pay the surcharge under section 297I.10, subdivision 1, shall file
a return for the five-month period ending October 31 setting forth any
information the commissioner reasonably requires on forms in the form
prescribed by the commissioner.�
(b) By February 15 and August 15 of each year, every company
required to pay a surcharge under section 297I.10, subdivision 2, must file a
return for the preceding six-month period ending December 31 and June 30.�
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 14.� Minnesota
Statutes 2008, section 297I.30, subdivision 8, is amended to read:
Subd. 8.� Fire insurance surcharge.� On or before May 15, August 15, November
15, and February 15 of each year, every insurer required to pay the surcharge
under section 297I.06, subdivisions 1 and 2, shall file a return with the
commissioner for the preceding three-month period ending March 31, June 30,
September 30, and December 31, setting forth any information the
commissioner reasonably requires on forms in the form prescribed by
the commissioner.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
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Sec. 15.� Minnesota Statutes 2009 Supplement, section
297I.35, subdivision 2, is amended to read:
Subd. 2.� Electronic
payments.� If the aggregate amount of
tax and surcharges due under this chapter during a calendar fiscal
year ending June 30 is equal to or exceeds $10,000, or if the taxpayer
is required to make payment of any other tax to the commissioner by electronic
means, then all tax and surcharge payments in the subsequent calendar year must
be paid by electronic means.
EFFECTIVE DATE.� This section is effective for payments due in
calendar year 2010 and thereafter, based upon liabilities incurred in the
fiscal year ending June 30, 2009, and in fiscal years thereafter.
Sec. 16.� Minnesota Statutes 2008, section 297I.40,
subdivision 1, is amended to read:
Subdivision 1.� Requirement
to pay.� On or before March 15, June
15, September 15, and December 15 of the current year, every taxpayer subject
to tax under section 297I.05, subdivisions 1 to 6 5, and 12, paragraphs
paragraph (a), clauses (1) to (5), (b), and (e) (4), and 14,
must pay to the commissioner an installment equal to one-fourth of the
insurer's total estimated tax for the current year.�
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 17.� Minnesota Statutes 2008, section 297I.40,
subdivision 5, is amended to read:
Subd. 5.� Definition
of tax.� The term "tax" as
used in this section means the tax imposed by section 297I.05, subdivisions 1
to 6 5, 11, and 12, paragraphs (a), clauses (1) to (5) (4),
(b), and (d), and 14, less any offset in section 297I.20.�
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 18.� Minnesota Statutes 2008, section 297I.65, is
amended by adding a subdivision to read:
Subd. 4.� Omission
in excess of 25 percent.� Additional
taxes or surcharges may be assessed within 6-1/2 years after the due date of
the return or the date the return was filed, whichever is later, if the
taxpayer omits from a gross premiums tax or surcharge return an amount of tax
in excess of 25 percent of the tax or surcharge reported in the return.
EFFECTIVE DATE.� This section is effective for premium taxes due
after December 31, 2010.
Sec. 19.� Minnesota Statutes 2008, section 298.282,
subdivision 1, is amended to read:
Subdivision 1.� Distribution
of taconite municipal aid account.� The
amount deposited with the county as provided in section 298.28, subdivision 3,
must be distributed as provided by this section among:� (1) the municipalities comprising a tax
relief taconite assistance area under section 273.134, paragraph
(b) 273.1341; (2) a township that contains a state park consisting
primarily of an underground iron ore mine; and (3) a city located within five
miles of that state park, each being referred to in this section as a
qualifying municipality.�
EFFECTIVE DATE.� This section is effective for distributions made
after the day following final enactment.
Sec. 20.� REPEALER.�
Minnesota Statutes 2008,
section 297I.30, subdivisions 4, 5, and 6, are repealed.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
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ARTICLE 7
PUBLIC FINANCE
Section 1.� Minnesota Statutes 2008, section 103D.335,
subdivision 17, is amended to read:
Subd. 17.� Borrowing
funds.� The managers may borrow funds
from an agency of the federal government, a state agency, a county where the
watershed district is located in whole or in part, or a financial institution
authorized under chapter 47 to do business in this state.� A county board may lend the amount requested
by a watershed district.� A watershed district
may not have more than a total of $600,000 $2,000,000 in loans
from counties and financial institutions under this subdivision outstanding at
any time.
Sec. 2.� Minnesota Statutes 2008, section 373.40,
subdivision 1, is amended to read:
Subdivision 1.� Definitions.� For purposes of this section, the
following terms have the meanings given.
(a) "Bonds" means
an obligation as defined under section 475.51.
(b) "Capital
improvement" means acquisition or betterment of public lands, buildings,
or other improvements within the county for the purpose of a county courthouse,
administrative building, health or social service facility, correctional
facility, jail, law enforcement center, hospital, morgue, library, park,
qualified indoor ice arena, roads and bridges, and the acquisition of
development rights in the form of conservation easements under chapter
84C.� An improvement must have an
expected useful life of five years or more to qualify.� "Capital improvement" does not
include light rail transit or any activity related to it or a recreation
or sports facility building (such as, but not limited to, a gymnasium, ice
arena, racquet sports facility, swimming pool, exercise room or health spa),
unless the building is part of an outdoor park facility and is incidental to
the primary purpose of outdoor recreation.
(c) "Metropolitan
county" means a county located in the seven-county metropolitan area as
defined in section 473.121 or a county with a population of 90,000 or more.
(d) "Population"
means the population established by the most recent of the following
(determined as of the date the resolution authorizing the bonds was adopted):
(1) the federal decennial
census,
(2) a special census
conducted under contract by the United States Bureau of the Census, or
(3) a
population estimate made either by the Metropolitan Council or by the state
demographer under section 4A.02.
(e) "Qualified indoor
ice arena" means a facility that meets the requirements of section 373.43.
(f) "Tax capacity"
means total taxable market value, but does not include captured market value.
Sec. 3.� Minnesota Statutes 2008, section 383B.79,
subdivision 5, is amended to read:
Subd. 5.� Financing.� Hennepin County may appropriate funds for
any of the activities described in subdivision 1, whether or not state funds
are appropriated for the activity.�
Hennepin County may include any part of the costs of a project described
in section 469.002, subdivision 12, in a capital improvement plan adopted under
section 373.40, and may issue bonds for such purposes pursuant to and subject
to the procedures and limitations set forth in section 373.40, whether or not
the capital improvement to be financed is to be owned by the county or any
other governmental entity.� Such purposes
are in addition to the capital improvements described in section 373.40, but
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shall not include light
rail transit, commuter rail, or any activity related to either of those, or
a sports facility building designed or used primarily for professional
sports.� No funds appropriated under this
subdivision may be used to pay operating expenses.�
Sec. 4.� Minnesota
Statutes 2009 Supplement, section 429.011, subdivision 2a, is amended to read:
Subd. 2a.� Municipality; certain counties.� "Municipality" also includes
the following:
(1) a county in the case of construction, reconstruction, or
improvement of a county state-aid highway;
(2) a county in the case of construction, reconstruction, or
improvement of a county highway as defined in section 160.02 including curbs
and gutters and storm sewers;
(3) a county exercising its powers and duties under section
444.075, subdivision 1;
(4) a county for expenses not paid for under section 403.113,
subdivision 3, paragraph (b), clause (3); and
(5) a county in the case of the abatement of nuisances;
and
(6) a county operating an energy improvements financing
program under section 216C.436.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 5.� Minnesota
Statutes 2008, section 469.101, subdivision 1, is amended to read:
Subdivision 1.� Establishment.� An economic development authority may
create and define the boundaries of economic development districts at any place
or places within the city if the district satisfies the requirements of
section 469.174, subdivision 10, except that the district boundaries must
be contiguous, and may use the powers granted in sections 469.090 to 469.108 to
carry out its purposes.� First the
authority must hold a public hearing on the matter.� At least ten days before the hearing, the
authority shall publish notice of the hearing in a daily newspaper of general
circulation in the city.� Also, the
authority shall find that an economic development district is proper and
desirable to establish and develop within the city.�
EFFECTIVE
DATE.� This section is effective for
economic development districts created after the day following final enactment.
Sec. 6.� Minnesota
Statutes 2008, section 469.319, subdivision 5, is amended to read:
Subd. 5.� Waiver authority.� (a) The commissioner may waive all or
part of a repayment required under subdivision 1, if the commissioner, in
consultation with the commissioner of employment and economic development and
appropriate officials from the local government units in which the qualified
business is located, determines that requiring repayment of the tax is not in
the best interest of the state or the local government units and the business
ceased operating as a result of circumstances beyond its control including, but
not limited to:
(1) a natural disaster;
(2) unforeseen industry trends; or
(3) loss of a major supplier or customer.
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(b)(1) The commissioner shall waive repayment required under
subdivision 1a if the commissioner has waived repayment by the operating
business under subdivision 1, unless the person that received benefits without
having to operate a business in the zone was a contributing factor in the
qualified business becoming subject to repayment under subdivision 1;
(2) the commissioner shall waive the repayment required under
subdivision 1a, even if the repayment has not been waived for the operating
business if:
(i) the person that received benefits without having to
operate a business in the zone and the business that operated in the zone are
not related parties as defined in section 267(b) of the Internal Revenue Code
of 1986, as amended through December 31, 2007; and
(ii) actions of the person were not a contributing factor in
the qualified business becoming subject to repayment under subdivision 1.
(c) Requests for waiver must be made no later than 60 days
after the notice date of an order issued under subdivision 4, paragraph (d),
or, in the case of property taxes, within 60 days of the date of a tax
statement issued under subdivision 4, paragraph (c).
EFFECTIVE
DATE.� This section is effective for waivers
requested in response to notices issued after the day following final
enactment.
Sec. 7.� Minnesota
Statutes 2008, section 469.3193, is amended to read:
469.3193 CERTIFICATION OF
CONTINUING ELIGIBILITY FOR JOBZ BENEFITS.�
(a) By December 1 October 15 of each year,
every qualified business must certify to the commissioner of revenue, on a form
prescribed by the commissioner of revenue, whether it is in compliance with any
agreement required as a condition for eligibility for benefits listed under
section 469.315.� A business that fails
to submit the certification, or any business, including those still operating
in the zone, that submits a certification that the commissioner of revenue
later determines materially misrepresents the business's compliance with the
agreement, is subject to the repayment provisions under section 469.319 from
January 1 of the year in which the report is due or the date that the business
became subject to section 469.319, whichever is earlier.� Any such business is permanently barred from
obtaining benefits under section 469.315.�
For purposes of this section, the bar applies to an entity and also
applies to any individuals or entities that have an ownership interest of at
least 20 percent of the entity.
(b) Before the sanctions under paragraph (a) apply to a
business that fails to submit the certification, the commissioner of revenue
shall send notice to the business, demanding that the certification be
submitted within 30 days and advising the business of the consequences for
failing to do so.� The commissioner of
revenue shall notify the commissioner of employment and economic development
and the appropriate job opportunity subzone administrator whenever notice is
sent to a business under this paragraph.
(c) The certification required under this section is
public.�
(d) The commissioner of revenue shall promptly notify the
commissioner of employment and economic development of all businesses that
certify that they are not in compliance with the terms of their business
subsidy agreement and all businesses that fail to file the certification.
EFFECTIVE
DATE.� This section is effective for
certifications required to be made in 2010 and thereafter.
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Sec. 8.� Minnesota
Statutes 2008, section 473.39, is amended by adding a subdivision to read:
Subd. 1p.�
Obligations.� After July 1, 2010, in addition to
other authority in this section, the council may issue certificates of
indebtedness, bonds, or other obligations under this section in an amount not
exceeding $34,600,000 for capital expenditures as prescribed in the council's
transit capital improvement program and for related costs, including the costs
of issuance and sale of the obligations.
EFFECTIVE
DATE.� This section is effective the day
following final enactment and applies in the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington.
Sec. 9.� Minnesota
Statutes 2008, section 474A.04, subdivision 6, is amended to read:
Subd. 6.� Entitlement transfers.� An entitlement issuer may enter into an
agreement with another entitlement issuer whereby the recipient entitlement
issuer issues obligations pursuant to bonding authority allocated to the
original entitlement issuer under this section.�
An entitlement issuer may enter into an agreement with an issuer which
is not an entitlement issuer whereby the recipient issuer issues qualified
mortgage bonds, up to $100,000 of which are issued pursuant to bonding
authority allocated to the original entitlement issuer under this section.� The agreement may be approved and executed by
the mayor of the entitlement issuer with or without approval or review by the
city council.� Notwithstanding section
474A.091, subdivision 4, prior to December 1, the Minnesota Housing Finance
Agency, Minnesota Office of Higher Education, and Minnesota Rural Finance
Authority may transfer allocated bonding authority made available under this
chapter to one another under an agreement by each agency and the commissioner.
Sec. 10.�
Minnesota Statutes 2008, section 474A.091, subdivision 3, is amended to
read:
Subd. 3.� Allocation procedure.� (a) The commissioner shall allocate available
bonding authority under this section on the Monday of every other week
beginning with the first Monday in August through and on the last Monday in
November.� Applications for allocations
must be received by the department by 4:30 p.m. on the Monday preceding the
Monday on which allocations are to be made.�
If a Monday falls on a holiday, the allocation will be made or the
applications must be received by the next business day after the holiday.
(b) Prior to October 1, only the following applications shall
be awarded allocations from the unified pool.�
Allocations shall be awarded in the following order of priority:
(1) applications for residential rental project bonds;
(2) applications for small issue bonds for manufacturing
projects; and
(3) applications for small issue bonds for agricultural
development bond loan projects.
(c) On the first Monday in October through the last Monday in
November, allocations shall be awarded from the unified pool in the following
order of priority:
(1) applications for student loan bonds issued by or on
behalf of the Minnesota Office of Higher Education;
(2) applications for mortgage bonds;
(3) applications for public facility projects funded by
public facility bonds;
(4) applications for small issue bonds for manufacturing
projects;
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(5) applications for small issue bonds for agricultural development
bond loan projects;
(6) applications for residential rental project bonds;
(7) applications for enterprise zone facility bonds;
(8) applications for governmental bonds; and
(9) applications for redevelopment bonds.
(d) If there are two or more applications for manufacturing
projects from the unified pool and there is insufficient bonding authority to
provide allocations for all manufacturing projects in any one allocation
period, the available bonding authority shall be awarded based on the number of
points awarded a project under section 474A.045 with those projects receiving
the greatest number of points receiving allocation first.� If two or more applications for manufacturing
projects receive an equal amount of points, available bonding authority shall
be awarded by lot unless otherwise agreed to by the respective issuers.�
(e) If there are two or more applications for enterprise zone
facility projects from the unified pool and there is insufficient bonding
authority to provide allocations for all enterprise zone facility projects in
any one allocation period, the available bonding authority shall be awarded
based on the number of points awarded a project under section 474A.045 with
those projects receiving the greatest number of points receiving allocation
first.� If two or more applications for
enterprise zone facility projects receive an equal amount of points, available
bonding authority shall be awarded by lot unless otherwise agreed to by the respective
issuers.�
(f) If there are two or more applications for residential
rental projects from the unified pool and there is insufficient bonding
authority to provide allocations for all residential rental projects in any one
allocation period, the available bonding authority shall be awarded in the
following order of priority:� (1)
projects that preserve existing federally subsidized housing; (2) projects that
are not restricted to persons who are 55 years of age or older; and (3) other
residential rental projects.
(g) From the first Monday in August through the last Monday
in November, $20,000,000 of bonding authority or an amount equal to the total
annual amount of bonding authority allocated to the small issue pool under
section 474A.03, subdivision 1, less the amount allocated to issuers from the
small issue pool for that year, whichever is less, is reserved within the
unified pool for small issue bonds to the extent such amounts are available
within the unified pool.�
(h) The total amount of allocations for mortgage bonds from
the housing pool and the unified pool may not exceed:
(1) $10,000,000 for any one city; or
(2) $20,000,000 for any number of cities in any one county.
(i) The total amount of allocations for student loan bonds
from the unified pool may not exceed $10,000,000 $25,000,000 per
year.
(j) If there is insufficient bonding authority to fund all
projects within any qualified bond category other than enterprise zone facility
projects, manufacturing projects, and residential rental projects, allocations
shall be awarded by lot unless otherwise agreed to by the respective issuers.
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(k) If an application is
rejected, the commissioner must notify the applicant and return the application
deposit to the applicant within 30 days unless the applicant requests in
writing that the application be resubmitted.
(l) The granting of an
allocation of bonding authority under this section must be evidenced by
issuance of a certificate of allocation.
Sec. 11.� Laws 2010, chapter 216, section 3, is amended
by adding a subdivision to read:
Subd. 3a.� Authority.� "Authority" means a housing
and redevelopment authority or economic development authority created pursuant
to section 469.003, 469.004, or 469.091, a port authority pursuant to section
469.049, 469.1082, or special law, or another entity authorized by law to
exercise the powers of an authority created pursuant to one of those sections.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 12.� Laws 2010, chapter 216, section 3, is amended
by adding a subdivision to read:
Subd. 3b.� Implementing
entity.� "Implementing
entity" means the local government or an authority designated by the local
government by resolution to implement and administer programs described in
section 216C.436.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 13.� Laws 2010, chapter 216, section 3,
subdivision 6, is amended to read:
Subd. 6.� Qualifying
real property.� "Qualifying real
property" means a single-family or multifamily residential dwelling, or a
commercial or industrial building, that the city implementing entity
has determined, after review of an energy audit or renewable energy system
feasibility study, can be benefited by installation of energy improvements.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 14.� Laws 2010, chapter 216, section 4,
subdivision 1, is amended to read:
Subdivision 1.� Program
authority.� A local government
An implementing entity may establish a program to finance energy
improvements to enable owners of qualifying real property to pay for
cost-effective energy improvements to the qualifying real property with the net
proceeds and interest earnings of revenue bonds authorized in this
section.� A local government An
implementing entity may limit the number of qualifying real properties for
which a property owner may receive program financing.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 15.� Laws 2010, chapter 216, section 4,
subdivision 2, is amended to read:
Subd. 2.� Program
requirements.� A financing program
must:
(1) impose requirements and
conditions on financing arrangements to ensure timely repayment;
(2) require an energy audit
or renewable energy system feasibility study to be conducted on the qualifying
real property and reviewed by the local government implementing
entity prior to approval of the financing;
(3) require the inspection
of all installations and a performance verification of at least ten percent of
the energy improvements financed by the program;
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(4) require that all cost-effective energy improvements be
made to a qualifying real property prior to, or in conjunction with, an
applicant's repayment of financing for energy improvements for that property;
(5) have energy improvements financed by the program
performed by licensed contractors as required by chapter 326B or other law or
ordinance;
(6) require disclosures to borrowers by the local
government implementing entity of the risks involved in borrowing,
including the risk of foreclosure if a tax delinquency results from a default;
(7) provide financing only to those who demonstrate an
ability to repay;
(8) not provide financing for a qualifying real property in
which the owner is not current on mortgage or real property tax payments;
(9) require a petition to the implementing entity by
all owners of the qualifying real property requesting collections of repayments
as a special assessment under section 429.101;
(10) provide that payments and assessments are not
accelerated due to a default and that a tax delinquency exists only for
assessments not paid when due; and
(11) require that liability for special assessments related
to the financing runs with the qualifying real property.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 16.� Laws
2010, chapter 216, section 4, subdivision 4, is amended to read:
Subd. 4.� Financing terms.� Financing provided under this section
must have:
(1) a term not to exceed the weighted average of weighted
average maturity not exceeding the useful life of the energy improvements
installed, as determined by the local government implementing entity,
but in no event may a term exceed 20 years;
(2) a principal amount not to exceed the lesser of ten
percent of the assessed value of the real property on which the improvements
are to be installed or the actual cost of installing the energy improvements,
including the costs of necessary equipment, materials, and labor, the costs of
each related energy audit or renewable energy system feasibility study, and the
cost of verification of installation; and
(3) an interest rate sufficient to pay the financing costs of
the program, including the issuance of bonds and any financing delinquencies.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 17.� Laws
2010, chapter 216, section 4, subdivision 6, is amended to read:
Subd. 6.� Certificate of participation.� Upon completion of a project, a local
government an implementing entity shall provide a borrower with a
certificate stating participation in the program and what energy improvements
have been made with financing program proceeds.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
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Sec. 18.� Laws 2010,
chapter 216, section 4, subdivision 7, is amended to read:
Subd. 7.� Repayment.�
A local government financing An implementing entity that
finances an energy improvement under this section must:�
(1) secure payment with a lien against the benefited
qualifying real property; and
(2) collect repayments as a special assessment as provided
for in section 429.101 or by charter.
If the implementing entity is an authority, the local
government that authorized the authority to act as implementing entity shall
impose and collect special assessments necessary to pay debt service on bonds
issued by the implementing entity under subdivision 8, and shall transfer all
collections of the assessments upon receipt to the authority.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 19.� Laws
2010, chapter 216, section 4, subdivision 8, is amended to read:
Subd. 8.� Bond issuance; repayment.� (a) A local government An
implementing entity may issue revenue bonds as provided in chapter 475 for
the purposes of this section.�
(b) The bonds must be payable as to both principal and
interest solely from the revenues from the assessments established in
subdivision 7.�
(c) No holder of bonds issued under this subdivision may compel
any exercise of the taxing power of the implementing entity that issued the
bonds to pay principal or interest on the bonds, and if the implementing entity
is an authority, no holder of the bonds may compel any exercise of the taxing
power of the local government that issued the bonds to pay principal or
interest on the bonds.� Bonds issued
under this subdivision are not a debt or obligation of the issuer or any
local government that issued them, nor is the payment of the bonds enforceable
out of any money other than the revenue pledged to the payment of the bonds.
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 20.� Laws
2010, chapter 216, section 58, as amended by Laws 2010, chapter 347, article 7,
section 1, is amended to read:
Sec. 58.� 2010 DISTRIBUTIONS ONLY.�
For distributions in 2010 only, a special fund is established
to receive 31.463 cents per ton the sum of the following amounts
that otherwise would be allocated under Minnesota Statutes, section 298.28,
subdivision 6.� The following amounts are
allocated to St. Louis County acting as the fiscal agent for the
recipients for the specific purposes:
(1) 0.764 cent per ton must be paid to Northern Minnesota
Dental to provide incentives for at least two dentists to establish dental
practices in high-need areas of the taconite tax relief area;
(2) 0.955 cent per ton must be paid to the city of Virginia
for repairs and geothermal heat at the Olcott Park Greenhouse/Virginia Commons
project;
(3) 0.796 cent per ton must be paid to the city of Virginia
for health and safety repairs at the Miners Memorial;
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(4) 1.114 cents per ton must
be paid to the city of Eveleth for the reconstruction of Highway 142/Grant and
Park Avenues;
(5) 0.478 cent per ton must
be paid to the Greenway Joint Recreation Board for upgrades and capital
improvements to the public arena in Coleraine;
(6) 0.796 cent per ton must
be paid to the city of Calumet for water treatment and pumphouse modifications;
(7) 0.159 cent per ton must
be paid to the city of Bovey for residential and commercial claims for water
damage due to water and flood-related damage caused by the Canisteo Pit;
(8) 0.637 cent per ton must
be paid to the city of Nashwauk for a community and child care center;
(9) 0.637 cent per ton must
be paid to the city of Keewatin for water and sewer upgrades;
(10) 0.637 cent per ton must
be paid to the city of Marble for the city hall and library project;
(11) 0.955 cent per ton must
be paid to the city of Grand Rapids for extension of water and sewer services
for Lakewood Housing;
(12) 0.159 cent per ton must
be paid to the city of Grand Rapids for exhibits at the Children's Museum;
(13) 0.637 cent per ton must
be paid to the city of Grand Rapids for Block 20/21 soil corrections.� This amount must be matched by local sources;
(14) 0.605 cent per ton must
be paid to the city of Aitkin for three water loops;
(15) 0.048 cent per ton must
be paid to the city of Aitkin for signage;
(16) 0.159 cent per ton must
be paid to Aitkin County for a trail;
(17) 0.637 cent per ton must
be paid to the city of Cohasset for the Beiers Road railroad crossing;
(18) 0.088 cent per ton must
be paid to the town of Clinton for expansion and striping of the community
center parking lot;
(19) 0.398 cent per ton must
be paid to the city of Kinney for water line replacement;
(20) 0.796 cent per ton must
be paid to the city of Gilbert for infrastructure improvements, milling, and
overlay for Summit Street between Alaska Avenue and Highway 135;
(21) 0.318 cent per ton must
be paid to the city of Gilbert for sanitary sewer main replacements and
improvements in the Northeast Lower Alley area;
(22) 0.637 cent per ton must
be paid to the town of White for replacement of the Stepetz Road culvert;
(23) 0.796 cent per ton must
be paid to the city of Buhl for reconstruction of Sharon Street and associated
infrastructure;
(24) 0.796 cent per ton must
be paid to the city of Mountain Iron for site improvements at the Park Ridge
development;
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(25) 0.796 cent per ton must
be paid to the city of Mountain Iron for infrastructure and site preparation
for its renewable and sustainable energy park;
(26) 0.637 cent per ton must
be paid to the city of Biwabik for sanitary sewer improvements;
(27) 0.796 cent per ton must
be paid to the city of Aurora for alley and road rebuilding for the Summit
Addition;
(28) 0.955 cent per ton must
be paid to the city of Silver Bay for bioenergy facility improvements;
(29) 0.318 cent per ton must
be paid to the city of Grand Marais for water and sewer infrastructure
improvements;
(30) 0.318 cent per ton must
be paid to the city of Orr for airport, water, and sewer improvements;
(31) 0.716 cent per ton must
be paid to the city of Cook for street and bridge improvements and land
purchase, provided that if the city sells or otherwise disposes of any of the
land purchased with the money provided under this clause within a period of ten
years after it was purchased, the city must transfer a portion of the proceeds
of the sale equal to the amount of the purchase price paid from the money
provided under this clause to the commissioner of Iron Range Resources and
Rehabilitation for deposit in the taconite environmental protection fund to be
used for the purposes of the fund under Minnesota Statutes, section 298.223;
(32) 0.955 cent per ton must
be paid to the city of Ely for street, water, and sewer improvements;
(33) 0.318 cent per ton must
be paid to the city of Tower for water and sewer improvements;
(34) 0.955 cent per ton must
be paid to the city of Two Harbors for water and sewer improvements;
(35) 0.637 cent per ton must
be paid to the city of Babbitt for water and sewer improvements;
(36) 0.096 cent per ton must
be paid to the township of Duluth for infrastructure improvements;
(37) 0.096 cent per ton must
be paid to the township of Tofte for infrastructure improvements;
(38) 3.184 cents per ton
must be paid to the city of Hibbing for sewer improvements;
(39) 1.273 cents per ton
must be paid to the city of Chisholm for NW Area Project infrastructure
improvements;
(40) 0.318 cent per ton must
be paid to the city of Chisholm for health and safety improvements at the
athletic facility;
(41) 0.796 cent per ton must
be paid to the city of Hoyt Lakes for residential street improvements;
(42) 0.796 cent per ton must
be paid to the Bois Forte Indian Reservation for infrastructure related to a
housing development;
(43) 0.159 cent per ton must
be paid to Balkan Township for building improvements;
(44) 0.159 cent per ton must
be paid to the city of Grand Rapids for a grant to a nonprofit for a signage
kiosk;
(45) 0.318 cent per ton must
be paid to the city of Crane Lake for sanitary sewer lines and adjacent
development near County State-Aid Highway 24; and
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(46) 0.159 cent per ton must be paid to the city of Chisholm
to rehabilitate historic wall infrastructure around the athletic complex;
and.
(47) 2.706 cents per ton must be paid to the Virginia
Regional Medical Center for operating room equipment and renovations.
EFFECTIVE
DATE.� This section is effective
retroactively from April 2, 2010.
Sec. 21.� CITY OF LANDFALL VILLAGE; TAX INCREMENT
FINANCING DISTRICT; SPECIAL RULES.�
The requirement of Minnesota Statutes, section 469.1763,
subdivision 3, that activities must be undertaken within a five-year period
from the date of certification of a tax increment financing district, is
considered to be met for Tax Increment Financing District No. 1-1 in the
city of Landfall Village if the activities were undertaken within eight years
from the date of certification of the district.
EFFECTIVE
DATE.� This section is effective upon
compliance by the governing body of the city of Landfall Village with the
requirements of Minnesota Statutes, section 645.021, subdivision 3.
Sec. 22.� CITY OF RAMSEY; TAX INCREMENT FINANCING
DISTRICT; SPECIAL RULES.�
(a) If the city of Ramsey or an authority of the city elects
upon the adoption of a tax increment financing plan for a district, the rules
under this section apply to a redevelopment tax increment financing district
established by the city or an authority of the city.� The redevelopment tax increment district
includes parcels within the area bounded on the North by Bunker Lake Boulevard
as extended West to Llama Street, on the West by Llama Street, and on the south
by a line running parallel to and 600 feet south of the southerly right-of-way
for U.S. Highway 10, but including Parcels 28-32-25-43-0007 and
28-32-25-34-0002 in their entirety, and excluding the Anoka County Regional
Park property in its entirety.� A parcel
within this area that is included in a tax increment financing district that
was certified before the date of enactment of this act may be included in the
district created under this act if the initial district is decertified.
(b) The requirements for qualifying a redevelopment tax
increment district under Minnesota Statutes, section 469.174, subdivision 10,
do not apply to the parcels located within the district.
(c) In addition to the costs permitted by Minnesota Statutes,
section 469.176, subdivision 4j, eligible expenditures within the district
include the city's share of the costs necessary to provide for the construction
of the Northstar Transit Station and related infrastructure, including
structured parking, a pedestrian overpass, and roadway improvements.
(d) The requirement of Minnesota Statutes, section 469.1763,
subdivision 3, that activities must be undertaken within a five-year period
from the date of certification of a tax increment financing district, is
considered to be met for the district if the activities were undertaken within
ten years from the date of certification of the district.
(e) Except for administrative expenses, the in-district
percentage for purposes of the restriction on pooling under Minnesota Statutes,
section 469.1763, subdivision 2, for this district is 100 percent.
EFFECTIVE
DATE.� This section is effective upon approval
by the governing body of the city of Ramsey, and upon compliance by the city
with Minnesota Statutes, section 645.021, subdivision 3.
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Sec. 23.� CITY OF WAYZATA; TAX INCREMENT FINANCING
DISTRICT; SPECIAL RULES.�
Subdivision 1.�
First receipt extended.� Notwithstanding Minnesota Statutes,
section 469.175, subdivision 1, paragraph (b), the city of Wayzata may modify
the tax increment financing plan for Redevelopment Tax Increment Financing
District No. 5 to change the first year in which it elects to receive
increment, up to six years following the year of approval of the district.� Minnesota Statutes, section 469.175,
subdivision 4, paragraph (b), does not apply to such modification of the tax
increment financing plan.
Subd. 2.�
Five-year rule.� The requirement of Minnesota Statutes,
section 469.1763, subdivision 3, that activities must be undertaken within a
five-year period from the date of certification of a tax increment financing
district, is considered to be met for Redevelopment Tax Increment Financing
District No. 5 in the city of Wayzata if the activities were undertaken
within ten years from the date of certification of the district.
Subd. 3.�
Parcels deemed occupied.� Any parcel in Redevelopment Tax
Increment Financing District No. 5 in the city of Wayzata is deemed to
meet the requirements of Minnesota Statutes, section 469.174, subdivision 10,
paragraph (d), clause (1), if the following conditions are met:
(1) a building on the parcel was demolished by a developer or
the city after the city council found the building to be structurally
substandard upon approval of original tax increment financing plan for the
district; and
(2) the city decertifies Redevelopment Tax Increment
Financing District No. 5, but files a request with the county auditor for
certification of the parcel as part of a subsequent redevelopment or renewal
and renovation district within ten years after the date of demolition.
EFFECTIVE
DATE.� This section is effective upon
compliance by the governing body of the city of Wayzata with the requirements
of Minnesota Statutes, section 645.021, subdivision 3.
Sec. 24.� REVISOR INSTRUCTION.�
The revisor of statutes shall code section 20 as Minnesota
Statutes, section 298.2961, subdivision 7.
ARTICLE 8
PROPERTY TAXES - TECHNICAL
Section 1.� Minnesota
Statutes 2009 Supplement, section 134.34, subdivision 4, is amended to read:
Subd. 4.� Limitation.�
(a) For calendar year 2010 and later, a regional library basic
system support grant shall not be made to a regional public library system for
a participating city or county which decreases the dollar amount provided for
support for operating purposes of public library service below the amount
provided by it for the second, or third preceding year, whichever is less.� For purposes of this subdivision and
subdivision 1, any funds provided under section 473.757, subdivision 2, for
extending library hours of operation shall not be considered amounts provided
by a city or county for support for operating purposes of public library
service.� This subdivision shall not
apply to participating cities or counties where the adjusted net tax capacity
of that city or county has decreased, if the dollar amount of the reduction in
support is not greater than the dollar amount by which support would be
decreased if the reduction in support were made in direct proportion to the
decrease in adjusted net tax capacity.
(b) For calendar year 2009 and later, in any calendar year in
which a city's or county's aid under sections 477A.011 to 477A.014 or credits
credit reimbursement under section 273.1384 is reduced after the city or
county has certified its levy payable in that year, it may reduce its local
support by the lesser of:
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(1) ten percent; or
(2) a percent equal to the
ratio of the aid and credit reimbursement reductions to the city's or
county's revenue base, based on aids certified for the current calendar
year.� For calendar year 2009 only, the
reduction under this paragraph shall be based on 2008 aid and credit reimbursement
reductions under the December 2008 unallotment, as well as any aid and credit reimbursement
reductions in calendar year 2009.� For
pay 2009 only, the commissioner of revenue will calculate the reductions under
this paragraph and certify them to the commissioner of education within 15 days
of May 17, 2009.
(c) For taxes payable in
2010 and later, in any payable year in which the total amounts certified for
city or county aids under sections 477A.011 to 477A.014 are less than the total
amounts paid under those sections in the previous calendar year, a city or
county may reduce its local support by the lesser of:
(1) ten percent; or
(2) a percent equal to the
ratio of:
(i) the difference between
(A) the sum of the aid it was paid under sections 477A.011 to 477A.014 and the credits
credit reimbursement it received under section 273.1398 273.1384
in the previous calendar year and (B) the sum of the aid it is certified to be
paid in the current calendar year under sections 477A.011 to 477A.014 and the credits
credit reimbursement estimated to be paid under section 273.1398 273.1384;
to
(ii) its revenue base for
the previous year, based on aids actually paid in the previous calendar
year.� The commissioner of revenue shall
calculate the percent aid cut for each county and city under this paragraph and
certify the percentage cuts to the commissioner of education by August 1 of the
year prior to the year in which the reduced aids and credits credit
reimbursements are to be paid.� The
percentage of reduction related to reductions to credits credit
reimbursements under section 273.1384 shall be based on the best estimation
available as of July 30.
(d) Notwithstanding
paragraph (a), (b), or (c), no city or county shall reduce its support for
public libraries below the minimum level specified in subdivision 1.
(e) For purposes of this
subdivision, "revenue base" means the sum of:
(1) its levy for taxes
payable in the current calendar year, including the levy on the fiscal
disparities distribution under section 276A.06, subdivision 3, paragraph (a),
or 473F.08, subdivision 3, paragraph (a);
(2) its aid under sections
477A.011 to 477A.014 in the current calendar year; and
(3) its taconite aid in the
current calendar year under sections 298.28 and 298.282.
EFFECTIVE DATE.� This section is effective retroactively for support
in calendar year 2009 and thereafter and for library grants paid in fiscal year
2010 and thereafter.
Sec. 2.� Minnesota Statutes 2008, section 270C.87, is
amended to read:
270C.87 REVISION OF MINNESOTA ASSESSORS' MANUAL.�
In accordance with the
provisions of section 270C.06 270C.85, the commissioner shall
periodically revise the Minnesota assessors' manual.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
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Sec. 3.� Minnesota Statutes 2008, section 270C.94,
subdivision 3, is amended to read:
Subd. 3.� Failure
to appraise.� When an assessor has
failed to properly appraise at least one-fifth of the parcels of property in a
district or county as provided in section 273.01, the commissioner shall
may appoint a special assessor and deputy assessor as necessary and
cause a reappraisal to be made of the property due for reassessment in
accordance with law.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 4.� Minnesota Statutes 2008, section 272.025,
subdivision 1, is amended to read:
Subdivision 1.� Statement
of exemption.� (a) Except in the case
of churches and houses of worship, property solely used for educational
purposes by academies, colleges, universities or seminaries of learning,
property owned by the state of Minnesota or any political subdivision thereof,
and property exempt from taxation under section 272.02, subdivisions 9, 10, 13,
15, 18, 20, and 22 to 26 25, and at the times provided in
subdivision 3, a taxpayer claiming an exemption from taxation on property
described in section 272.02, subdivisions 1 to 33, shall must file
a statement of exemption with the assessor of the assessment district in which
the property is located.�
(b) A taxpayer claiming an
exemption from taxation on property described in section 272.02, subdivision
10, shall must file a statement of exemption with the
commissioner of revenue, on or before February 15 of each year for which the
taxpayer claims an exemption.�
(c) In case of sickness,
absence or other disability or for good cause, the assessor or the
commissioner may extend the time for filing the statement of exemption for
a period not to exceed 60 days.
(d) The commissioner of
revenue shall prescribe the form and contents of the statement of exemption.
EFFECTIVE DATE.� This section is effective for taxes payable in 2012
and thereafter.
Sec. 5.� Minnesota Statutes 2008, section 272.025,
subdivision 3, is amended to read:
Subd. 3.� Filing
dates.� (a) The statement
required by subdivision 1, paragraph (a), must be filed with the assessor by
February 1 of the assessment year, however, any taxpayer who has filed the
statement required by subdivision 1 more than 12 months prior to February 1,
1983, or February 1 of each third year after 1983, shall file a statement by
February 1, 1983, and by February 1 of each third year thereafter.
(b) For churches and houses
of worship, and property solely used for educational purposes by academies,
colleges, universities, or seminaries of learning, no statement is required
after the statement filed for the assessment year in which the exemption began.
(c) This section does not
apply to existing churches and houses of worship, and property solely used for
educational purposes by academies, colleges, universities, or seminaries of
learning that were exempt for taxes payable in 2011.
EFFECTIVE DATE.� This section is effective for taxes payable in 2012
and thereafter.
Sec. 6.� Minnesota Statutes 2008, section 272.029,
subdivision 4, is amended to read:
Subd. 4.� Reports.� (a) An owner of a wind energy conversion
system subject to tax under subdivision 3 shall file a report with the
commissioner of revenue annually on or before February 1 detailing the amount
of electricity in kilowatt-hours that was produced by the wind energy
conversion system for the previous calendar year.� The
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commissioner shall prescribe
the form of the report.� The report must
contain the information required by the commissioner to determine the tax due
to each county under this section for the current year.� If an owner of a wind energy conversion
system subject to taxation under this section fails to file the report by the
due date, the commissioner of revenue shall determine the tax based upon the
nameplate capacity of the system multiplied by a capacity factor of 40 60
percent.
(b) On or before February 28, the commissioner of revenue
shall notify the owner of the wind energy conversion systems of the tax due to
each county for the current year and shall certify to the county auditor of
each county in which the systems are located the tax due from each owner for
the current year.
EFFECTIVE
DATE.� This section is effective beginning
with reports due on February 1, 2011, and thereafter.
Sec. 7.� Minnesota
Statutes 2008, section 272.029, subdivision 7, is amended to read:
Subd. 7.� Exemption.�
The tax imposed under this section does not apply to electricity
produced by wind energy conversion systems located in a job opportunity building
zone, designated under section 469.314, for the duration of the
zone.� The exemption applies beginning
for the first calendar year after designation of the zone and applies to each
calendar year that begins during the designation of the zone.� The exemption only applies if the owner of
the system is a qualified business under section 469.310, subdivision 11, who
has entered into a business subsidy agreement that covers the land on which the
system is situated.�
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 8.� Minnesota
Statutes 2008, section 273.113, subdivision 3, is amended to read:
Subd. 3.� Reimbursement for lost revenue.� The county auditor shall certify to the
commissioner of revenue, as part of the abstracts of tax lists required to be
filed with the commissioner under section 275.29, the amount of tax lost to the
county from the property tax credit under subdivision 2.� Any prior year adjustments must also be certified
in the abstracts of tax lists.� The
commissioner of revenue shall review the certifications to determine their
accuracy.� The commissioner may make the
changes in the certification that are considered necessary or return a
certification to the county auditor for corrections.� The commissioner shall reimburse each taxing
district, other than school districts, for the taxes lost.� The payments must be made at the time
provided in section 473H.10 for payment to taxing jurisdictions in the same
proportion that the ad valorem tax is distributed.� Reimbursements to school districts must be
made as provided in section 273.1392.�
The amount necessary to make the reimbursements under this section is
annually appropriated from the general fund to the commissioner of revenue.
EFFECTIVE
DATE.� This section is effective
retroactively for taxes payable in 2009 and thereafter.
Sec. 9.� Minnesota
Statutes 2008, section 273.1392, is amended to read:
273.1392 PAYMENT; SCHOOL
DISTRICTS.�
The amounts of bovine tuberculosis credit reimbursements
under section 273.113; conservation tax credits under section 273.119;
disaster or emergency reimbursement under sections 273.1231 to 273.1235;
homestead and agricultural credits under section 273.1384; aids and credits
under section 273.1398; wetlands reimbursement under section 275.295;
enterprise zone property credit payments under section 469.171; and
metropolitan agricultural preserve reduction under section 473H.10 for school
districts, shall be certified to the Department of Education by the Department of Revenue.� The amounts so certified shall be paid
according to section 127A.45, subdivisions 9 and 13.�
EFFECTIVE
DATE.� This section is effective
retroactively for taxes payable in 2009 and thereafter.
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Sec. 10.� Minnesota Statutes 2009 Supplement, section
275.065, subdivision 3, is amended to read:
Subd. 3.� Notice
of proposed property taxes.� (a) The
county auditor shall prepare and the county treasurer shall deliver after
November 10 and on or before November 24 each year, by first class mail to each
taxpayer at the address listed on the county's current year's assessment roll,
a notice of proposed property taxes.�
Upon written request by the taxpayer, the treasurer may send the notice
in electronic form or by electronic mail instead of on paper or by ordinary
mail.
(b) The commissioner of
revenue shall prescribe the form of the notice.
(c) The notice must inform
taxpayers that it contains the amount of property taxes each taxing authority
proposes to collect for taxes payable the following year.� In the case of a town, or in the case of the
state general tax, the final tax amount will be its proposed tax.� The notice must clearly state for each city that
has a population over 500, county, school district, regional library
authority established under section 134.201, and metropolitan taxing districts
as defined in paragraph (i), the time and place of the a meeting for
each taxing authorities' regularly scheduled meetings authority
in which the budget and levy will be discussed and public input allowed,
prior to the final budget and levy determined, which must occur after
November 24 determination.�
The taxing authorities must provide the county auditor with the
information to be included in the notice on or before the time it certifies its
proposed levy under subdivision 1.� The
public must be allowed to speak at the meetings and the meetings shall that
meeting, which must occur after November 24 and must not be held before
6:00 p.m.� It must provide a telephone
number for the taxing authority that taxpayers may call if they have questions
related to the notice and an address where comments will be received by mail.
(d) The notice must state
for each parcel:
(1) the market value of the
property as determined under section 273.11, and used for computing property
taxes payable in the following year and for taxes payable in the current year
as each appears in the records of the county assessor on November 1 of the
current year; and, in the case of residential property, whether the property is
classified as homestead or nonhomestead.�
The notice must clearly inform taxpayers of the years to which the
market values apply and that the values are final values;
(2) the items listed below,
shown separately by county, city or town, and state general tax, net of the
residential and agricultural homestead credit under section 273.1384, voter
approved school levy, other local school levy, and the sum of the special
taxing districts, and as a total of all taxing authorities:
(i) the actual tax for taxes
payable in the current year; and
(ii) the proposed tax
amount.
If the county levy under
clause (2) includes an amount for a lake improvement district as defined under
sections 103B.501 to 103B.581, the amount attributable for that purpose must be
separately stated from the remaining county levy amount.
In the case of a town or the
state general tax, the final tax shall also be its proposed tax unless the town
changes its levy at a special town meeting under section 365.52.� If a school district has certified under
section 126C.17, subdivision 9, that a referendum will be held in the school
district at the November general election, the county auditor must note next to
the school district's proposed amount that a referendum is pending and that, if
approved by the voters, the tax amount may be higher than shown on the
notice.� In the case of the city of
Minneapolis, the levy for Minneapolis Park and Recreation shall be listed
separately from the remaining amount of the city's levy.� In the case of the city of St. Paul, the
levy for the St. Paul Library Agency must be listed separately from the
remaining amount of the city's levy.� In
the case of Ramsey County, any amount levied under section 134.07 may be listed
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separately from the
remaining amount of the county's levy.�
In the case of a parcel where tax increment or the fiscal disparities
areawide tax under chapter 276A or 473F applies, the proposed tax levy on the
captured value or the proposed tax levy on the tax capacity subject to the
areawide tax must each be stated separately and not included in the sum of the
special taxing districts; and
(3) the increase or decrease between the total taxes payable
in the current year and the total proposed taxes, expressed as a percentage.
For purposes of this section, the amount of the tax on
homesteads qualifying under the senior citizens' property tax deferral program
under chapter 290B is the total amount of property tax before subtraction of
the deferred property tax amount.
(e) The notice must clearly state that the proposed or final
taxes do not include the following:
(1) special assessments;
(2) levies approved by the voters after the date the proposed
taxes are certified, including bond referenda and school district levy referenda;
(3) a levy limit increase approved by the voters by the first
Tuesday after the first Monday in November of the levy year as provided under
section 275.73;
(4) amounts necessary to pay cleanup or other costs due to a natural
disaster occurring after the date the proposed taxes are certified;
(5) amounts necessary to pay tort judgments against the
taxing authority that become final after the date the proposed taxes are
certified; and
(6) the contamination tax imposed on properties which
received market value reductions for contamination.
(f) Except as provided in subdivision 7, failure of the
county auditor to prepare or the county treasurer to deliver the notice as
required in this section does not invalidate the proposed or final tax levy or
the taxes payable pursuant to the tax levy.
(g) If the notice the taxpayer receives under this section
lists the property as nonhomestead, and satisfactory documentation is provided
to the county assessor by the applicable deadline, and the property qualifies
for the homestead classification in that assessment year, the assessor shall
reclassify the property to homestead for taxes payable in the following year.
(h) In the case of class 4 residential property used as a
residence for lease or rental periods of 30 days or more, the taxpayer must
either:
(1) mail or deliver a copy of the notice of proposed property
taxes to each tenant, renter, or lessee; or
(2) post a copy of the notice in a conspicuous place on the
premises of the property.
The notice must be mailed or posted by the taxpayer by
November 27 or within three days of receipt of the notice, whichever is
later.� A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the
premises to which the notice must be mailed in order to fulfill the
requirements of this paragraph.
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(i) For purposes of this subdivision and subdivision 6,
"metropolitan special taxing districts" means the following taxing
districts in the seven-county metropolitan area that levy a property tax for
any of the specified purposes listed below:
(1) Metropolitan Council under section 473.132, 473.167,
473.249, 473.325, 473.446, 473.521, 473.547, or 473.834;
(2) Metropolitan Airports Commission under section 473.667,
473.671, or 473.672; and
(3) Metropolitan Mosquito Control Commission under section
473.711.
For purposes of this section, any levies made by the regional
rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, or Washington under chapter 398A shall be included with the appropriate
county's levy.
(j) The governing body of a county, city, or school district
may, with the consent of the county board, include supplemental information
with the statement of proposed property taxes about the impact of state aid
increases or decreases on property tax increases or decreases and on the level
of services provided in the affected jurisdiction.� This supplemental information may include
information for the following year, the current year, and for as many
consecutive preceding years as deemed appropriate by the governing body of the
county, city, or school district.� It may
include only information regarding:
(1) the impact of inflation as measured by the implicit price
deflator for state and local government purchases;
(2) population growth and decline;
(3) state or federal government action; and
(4) other financial factors that affect the level of property
taxation and local services that the governing body of the county, city, or
school district may deem appropriate to include.
The information may be presented using tables, written
narrative, and graphic representations and may contain instruction toward
further sources of information or opportunity for comment.
EFFECTIVE
DATE.� This section is effective
retroactively for taxes payable in 2010 and thereafter.
Sec. 11.� Minnesota
Statutes 2009 Supplement, section 275.70, subdivision 5, as amended by Laws
2010, chapter 215, article 13, section 3, is amended to read:
Subd. 5.� Special levies.� "Special levies" means those
portions of ad valorem taxes levied by a local governmental unit for the
following purposes or in the following manner:
(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;
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(ii) certificates of indebtedness issued under sections 298.28
and 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 section
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 section 193.145, subdivision 2, to retire the
principal and interest on armory construction bonds;
(5) property taxes approved by voters which are levied against
the referendum market value as provided under section 275.61;
(6) to fund matching requirements needed to qualify for
federal or state grants or programs to the extent that either (i) the matching
requirement exceeds the matching requirement in calendar year 2001, or (ii) it
is a new matching requirement that did not exist prior to 2002;
(7) 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 section 275.74, subdivision 2;
(8) pay amounts required to correct an error in the levy
certified to the county auditor by a city or county in a levy year, but only to
the extent that when added to the preceding year's levy it is not in excess of
an applicable statutory, special law or charter limitation, or the limitation
imposed on the governmental subdivision by sections 275.70 to 275.74 in the
preceding levy year;
(9) to pay an abatement under section 469.1815;
(10) to pay any costs attributable to increases in the
employer contribution rates under chapter 353, or locally administered pension
plans, that are effective after June 30, 2001;
(11) to pay the operating or maintenance costs of a county
jail as authorized in section 641.01 or 641.262, or of a correctional facility
as defined in section 241.021, subdivision 1, paragraph (f), to the extent that
the county can demonstrate to the commissioner of revenue that the amount has
been included in the county budget as a direct result of a rule, minimum
requirement, minimum standard, or directive of the Department of Corrections,
or to pay the operating or maintenance costs of a regional jail as authorized
in section 641.262.� For purposes of this
clause, a district court order is not a rule, minimum requirement, minimum
standard, or directive of the Department of Corrections.� If the county utilizes this special levy,
except to pay operating or maintenance costs of a new regional jail facility
under sections 641.262 to 641.264 which will not replace an existing jail
facility, any amount levied by the county in the previous levy year for the
purposes specified under this clause and included in the county's previous
year's levy limitation computed under section 275.71, shall be deducted from
the levy limit base under section 275.71, subdivision 2, when determining the
county's current year levy limitation.�
The county shall provide the necessary information to the commissioner
of revenue for making this determination;
(12) to pay for operation of a lake improvement district, as
authorized under section 103B.555.� If
the county utilizes this special levy, any amount levied by the county in the
previous levy year for the purposes specified under this clause and included in
the county's previous year's levy limitation computed under section 275.71
shall be
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deducted from the levy limit base under section 275.71,
subdivision 2, when determining the county's current year levy limitation.� The county shall provide the necessary
information to the commissioner of revenue for making this determination;
(13) to repay a state or federal loan used to fund the direct
or indirect required spending by the local government due to a state or federal
transportation project or other state or federal capital project.� This authority may only be used if the
project is not a local government initiative;
(14) to pay for court administration costs as required under
section 273.1398, subdivision 4b, less the (i) county's share of transferred
fines and fees collected by the district courts in the county for calendar year
2001 and (ii) the aid amount certified to be paid to the county in 2004 under
section 273.1398, subdivision 4c; however, for taxes levied to pay for these
costs in the year in which the court financing is transferred to the state, the
amount under this clause is limited to the amount of aid the county is
certified to receive under section 273.1398, subdivision 4a;
(15) to fund a police or firefighters relief association as
required under section 69.77 to the extent that the required amount exceeds the
amount levied for this purpose in 2001;
(16) for purposes of a storm sewer improvement district under
section 444.20;
(17) to pay for the maintenance and support of a city or
county society for the prevention of cruelty to animals under section 343.11,
but not to exceed in any year $4,800 or the sum of $1 per capita based on the
county's or city's population as of the most recent federal census, whichever
is greater.� If the city or county uses
this special levy, any amount levied by the city or county in the previous levy
year for the purposes specified in this clause and included in the city's or
county's previous year's levy limit computed under section 275.71, must be
deducted from the levy limit base under section 275.71, subdivision 2, in
determining the city's or county's current year levy limit;
(18) for counties, to pay for the increase in their share of
health and human service costs caused by reductions in federal health and human
services grants effective after September 30, 2007;
(19) for a city, for the costs reasonably and necessarily
incurred for securing, maintaining, or demolishing foreclosed or abandoned
residential properties, as allowed by the commissioner of revenue under section
275.74, subdivision 2.� A city must have
either (i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a
foreclosure rate in 2007 in the city or in a zip code area of the city that is
at least 50 percent higher than the average foreclosure rate in the
metropolitan area, as defined in section 473.121, subdivision 2, to use this
special levy.� For purposes of this
paragraph, "foreclosure rate" means the number of foreclosures, as
indicated by sheriff sales records, divided by the number of households in the
city in 2007;
(20) for a city, for the unreimbursed costs of redeployed
traffic-control agents and lost traffic citation revenue due to the collapse of
the Interstate 35W bridge, as certified to the Federal Highway Administration;
(21) to pay costs attributable to wages and benefits for sheriff,
police, and fire personnel.� If a local
governmental unit did not use this special levy in the previous year its levy
limit base under section 275.71 shall be reduced by the amount equal to the
amount it levied for the purposes specified in this clause in the previous
year;
(22) an amount equal to any reductions in the certified aids
or credits credit reimbursements payable under sections 477A.011
to 477A.014, and section 273.1384, due to unallotment under section 16A.152 or
reductions under another provision of law.�
The amount of the levy allowed under this clause for each year is
equal limited to the amount unallotted or reduced in from
the aids and credit reimbursements certified for payment in the year following
the calendar year in which the tax levy is levied certified
unless the unallotment or reduction amount is not known by September 1 of the
levy certification year, and the local government has not adjusted its
levy under section 275.065, subdivision 6, or 275.07, subdivision 6, in which
case the that unallotment or reduction amount may be levied in
the following year;
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(23) to pay for the difference between one-half of the costs
of confining sex offenders undergoing the civil commitment process and any
state payments for this purpose pursuant to section 253B.185, subdivision 5;
(24) for a county to pay the costs of the first year of
maintaining and operating a new facility or new expansion, either of which
contains courts, corrections, dispatch, criminal investigation labs, or other
public safety facilities and for which all or a portion of the funding for the
site acquisition, building design, site preparation, construction, and related
equipment was issued or authorized prior to the imposition of levy limits in
2008.� The levy limit base shall then be increased by an amount equal to the new
facility's first full year's operating costs as described in this clause; and
(25) for the estimated amount of reduction to market value
credit reimbursements under section 273.1384 for credits payable in the year in
which the levy is payable.
EFFECTIVE
DATE.� This section is effective
retroactively for taxes payable in 2010 and thereafter.
Sec. 12.�
Minnesota Statutes 2008, section 275.71, subdivision 5, is amended to
read:
Subd. 5.� Property tax levy limit.� (a) For taxes levied in 2008
through 2010, the property tax levy limit for a local governmental unit is
equal to its adjusted levy limit base determined under subdivision 4 plus any
additional levy authorized under section 275.73, which is levied against net
tax capacity, reduced by the sum of (i) the total amount of aids and
reimbursements that the local governmental unit is certified to receive under
sections 477A.011 to 477A.014, (ii) taconite aids under sections 298.28 and
298.282 including any aid which was required to be placed in a special fund for
expenditure in the next succeeding year, (iii) estimated payments to the local
governmental unit under section 272.029, adjusted for any error in estimation
in the preceding year, and (iv) aids under section 477A.16.�
(b) If an aid, payment, or other amount used in paragraph (a)
to reduce a local government unit's levy limit is reduced by an unallotment
under section 16A.152, the amount of the aid, payment, or other amount prior to
the unallotment is used in the computations in paragraph (a).� In order for a local government unit to levy
outside of its limit to offset the reduction in revenues attributable to an
unallotment, it must do so under, and to the extent authorized by, a special
levy authorization.
EFFECTIVE
DATE.� This section is effective retroactively
for taxes payable in 2010 and thereafter.
Sec. 13.�
Minnesota Statutes 2008, section 279.01, subdivision 3, is amended to
read:
Subd. 3.� Agricultural property.� (a) In the case of class 1b
agricultural homestead, class 2a agricultural homestead property, and class 2b(3)
2a agricultural nonhomestead property, no penalties shall attach to the
second one-half property tax payment as provided in this section if paid by
November 15.� Thereafter for class 1b
agricultural homestead and class 2a homestead property, on November 16
following, a penalty of six percent shall accrue and be charged on all such
unpaid taxes and on December 1 following, an additional two percent shall be charged on all such unpaid taxes.� Thereafter for class 2b(3) 2a
agricultural nonhomestead property, on November 16 following, a penalty
of eight percent shall accrue and be charged on all such unpaid taxes and on
December 1 following, an additional four percent shall be charged on all such
unpaid taxes.
If the owner of class 1b agricultural homestead, class 2a,
or class 2b(3) 2a agricultural property receives a consolidated
property tax statement that shows only an aggregate of the taxes and special
assessments due on that property and on other property not classified as class
1b agricultural homestead, class 2a, or class 2b(3) 2a
agricultural property, the aggregate tax and special assessments shown due on
the property by the consolidated statement will be due on November 15.
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(b) Notwithstanding paragraph (a), for taxes payable in 2010
and 2011, for any class 2b property that was subject to a second-half due date of
November 15 for taxes payable in 2009, the county shall not impose, or if
imposed, shall abate penalty amounts in excess of those that would apply as if
the second-half due date were November 15.
EFFECTIVE
DATE.� Paragraph (a) is effective for
taxes payable in 2012 and thereafter.�
Paragraph (b) is effective for taxes payable in 2010 and 2011 only.
Sec. 14.�
Minnesota Statutes 2008, section 279.37, subdivision 1, is amended to
read:
Subdivision 1.� Composition into one item.� Delinquent taxes upon any parcel of real
estate may be composed into one item or amount by confession of judgment at any
time prior to the forfeiture of the parcel of land to the state for taxes, for
the aggregate amount of all the taxes, costs, penalties, and interest accrued against
the parcel, as provided in this section.�
Taxes upon property which, for the previous year's assessment, was
classified as mineral property, employment property, or commercial or
industrial property are only eligible to be composed into any confession of
judgment under this section as provided in subdivision 1a.� Delinquent taxes for property that has been
reclassified from 4bb to 4b under section 273.1319 may not be composed into a
confession of judgment under this subdivision.�
Delinquent taxes on unimproved land are eligible to be composed into a
confession of judgment only if the land is classified under section 273.13
as homestead, agricultural, or timberland rural vacant land, or
managed forest land, in the previous year or is eligible for installment
payment under subdivision 1a.� The entire
parcel is eligible for the ten-year installment plan as provided in subdivision
2 if 25 percent or more of the market value of the parcel is eligible for
confession of judgment under this subdivision.�
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 15.�
Minnesota Statutes 2009 Supplement, section 475.755, is amended to read:
475.755 EMERGENCY DEBT
CERTIFICATES.�
(a) If at any time during a fiscal year the receipts of a local
government are reasonably expected to be reduced below the amount provided in
the local government's budget when the final property tax levy to be collected
during the fiscal year was certified and the receipts are insufficient to meet
the expenses incurred or to be incurred during the fiscal year, the governing
body of the local government may authorize and sell certificates of
indebtedness to mature within two years or less from the end of the fiscal year
in which the certificates are issued.�
The maximum principal amount of the certificates that it may issue in a
fiscal year is limited to the expected reduction in receipts plus the cost of
issuance.� The certificates may be issued
in the manner and on the terms the governing body determines by resolution.
(b) The governing body of the local government shall levy
taxes for the payment of principal and interest on the certificates in
accordance with section 475.61.
(c) The certificates are not to be included in the net debt
of the issuing local government.
(d) To the extent that a local government issues certificates
under this section to fund an unallotment or other reduction in its state aid,
the local government may must not use a the special
levy authority for the aid reduction reductions
under section 275.70, subdivision 5, clause (22), or a similar or successor
provision.� This provision does not
affect the status of the, but must instead use the special levy
authority for the repayment of indebtedness under section 275.70, subdivision
5, clause (2), in order to levy under section 475.61 to pay fund
repayment of the certificates as with a levy that is not
subject to levy limits.
(e) For purposes of this section, the following terms have
the meanings given:
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(1) "Local
government" means a statutory or home rule charter city, a town, or a
county.
(2) "Receipts"
includes the following amounts scheduled to be received by the local government
for the fiscal year from:
(i) taxes;
(ii) aid payments previously
certified by the state to be paid to the local government;
(iii) state reimbursement
payments for property tax credits; and
(iv) any other source.
EFFECTIVE DATE.� This section is effective retroactively for taxes
payable in 2010 and thereafter.
Sec. 16.� Minnesota Statutes 2009 Supplement, section
477A.013, subdivision 8, is amended to read:
Subd. 8.� City
formula aid.� (a) In calendar year
2009, the formula aid for a city is equal to the sum of (1) its city jobs base,
(2) its small city aid base, and (3) the need increase percentage multiplied by
its unmet need.
(b) In calendar year 2010
and subsequent years, The formula aid for a city is equal to the sum of (1) its city jobs
base, (2) its small city aid base, and (3) the need increase percentage
multiplied by the average of its unmet need for the most recently available two
years.
No city may have a formula
aid amount less than zero.� The need
increase percentage must be the same for all cities.
The applicable need increase
percentage must be calculated by the Department of Revenue so that the total of
the aid under subdivision 9 equals the total amount available for aid under
section 477A.03.� For aids payable in
2009 only, all data used in calculating aid to cities under sections 477A.011
to 477A.013 will be based on the data available for calculating aid to cities
for aids payable in 2008.� For aids payable
in 2010 and thereafter, Data used in calculating aids to cities under
sections 477A.011 to 477A.013 shall be the most recently available data as of
January 1 in the year in which the aid is calculated except as provided in
section 477A.011, subdivisions 3 and 35 that the data used to compute
"net levy" in subdivision 9 is the data most recently available at
the time of the aid computation.
EFFECTIVE DATE.� This section is effective for aid payable in 2010
and thereafter.
Sec. 17.� Laws 2001, First Special Session chapter 5,
article 3, section 50, the effective date, as amended by Laws 2009, chapter 86,
article 1, section 87, is amended to read:
EFFECTIVE DATE.� Clause (22) of this section
is effective for taxes levied in 2002, payable in 2003, through taxes levied
in 2011, payable in 2012 and thereafter.� Clause (23) of this section is effective for
taxes levied in 2001, payable in 2002, and thereafter.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
ARTICLE 9
CONDITIONAL USE DEEDS
Section 1.� Minnesota Statutes 2008, section 282.01,
subdivision 1, is amended to read:
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Subdivision 1.� Classification
as conservation or nonconservation.� It
is the general policy of this state to encourage the best use of tax-forfeited
lands, recognizing (a) When acting on behalf of the state under laws
allowing the county board to classify and manage tax-forfeited lands held by
the state in trust for the local units as provided in section 281.25, the
county board has the discretion to decide that some lands in public
ownership should be retained and managed for public benefits while other lands
should be returned to private ownership.�
Parcels of land becoming the property of the state in trust under law
declaring the forfeiture of lands to the state for taxes must be classified by
the county board of the county in which the parcels lie as conservation or nonconservation.� In making the classification the board shall
consider the present use of adjacent lands, the productivity of the soil, the
character of forest or other growth, accessibility of lands to established roads,
schools, and other public services, their peculiar suitability or desirability
for particular uses, and the suitability of the forest resources on the
land for multiple use, and sustained yield management.� The classification, furthermore, must:� (1) encourage and foster a mode of land
utilization that will facilitate the economical and adequate provision of
transportation, roads, water supply, drainage, sanitation, education, and
recreation; (2) facilitate reduction of governmental expenditures; (3)
conserve and develop the natural resources; and (4) foster and
develop agriculture and other industries in the districts and places best
suited to them.
In making the classification
the county board may use information made available by any office or department
of the federal, state, or local governments, or by any other person or agency
possessing pertinent information at the time the classification is made.� The lands may be reclassified from time to
time as the county board considers necessary or desirable, except for
conservation lands held by the state free from any trust in favor of any
taxing district.
If the lands are located
within the boundaries of an organized town, with taxable valuation in excess of
$20,000, or incorporated municipality, the classification or reclassification
and sale must first be approved by the town board of the town or the governing
body of the municipality in which the lands are located.� The town board of the town or the governing
body of the municipality is considered to have approved the classification or
reclassification and sale if the county board is not notified of the
disapproval of the classification or reclassification and sale within 60 days
of the date the request for approval was transmitted to the town board of the
town or governing body of the municipality.�
If the town board or governing body desires to acquire any parcel lying
in the town or municipality by procedures authorized in this section, it must
file a written application with the county board to withhold the parcel from
public sale.� The application must be
filed within 60 days of the request for classification or reclassification and
sale.� The county board shall then
withhold the parcel from public sale for six months.� A municipality or governmental subdivision
shall pay maintenance costs incurred by the county during the six-month period
while the property is withheld from public sale, provided the property is not
offered for public sale after the six-month period.� A clerical error made by county officials
does not serve to eliminate the request of the town board or governing body if
the board or governing body has forwarded the application to the county
auditor.� If the town board or governing
body of the municipality fails to submit an application and a resolution of the
board or governing body to acquire the property within the withholding period,
the county may offer the property for sale upon the expiration of the
withholding period.
(b) Whenever the county
board deems it appropriate, the board may hold a meeting for the purpose of reclassifying
tax-forfeited land that has not been sold or released from the trust.� The criteria and procedures for
reclassification are the same as those required for an initial classification.
(c) Prior to meeting for the
purpose of classifying or reclassifying tax-forfeited lands, the county board
must give notice of its intent to meet for that purpose as provided in this
paragraph.� The notice must be given no
more than 90 days and no less than 60 days before the date of the meeting;
provided that if the meeting is rescheduled, notice of the new date, time, and
location must be given at least 14 days before the date of the rescheduled
meeting.� The notice must be posted on a
Web site.� The notice must also be mailed
or otherwise delivered to each person who has filed a request for notice of
special meetings with the public body, regardless of whether the matter is
considered at a regular or special meeting.�
The notice must be mailed or delivered at least 60 days before the date
of the meeting.�
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If the meeting is
rescheduled, notice of the new date, time, and location must be mailed or
delivered at least 14 days before the date of the rescheduled meeting.� The public body shall publish the notice
once, at least 30 days before the meeting, in a newspaper of general
circulation within the area of the public body's authority.� The board must also mail a notice by
electronic means to each person who requests notice of meetings dealing with
this subject and who agrees as provided in chapter 325L to accept notice that
is mailed by electronic means.� Receipt
of actual notice under the conditions specified in section 13D.04, subdivision
7, satisfies the notice requirements of this paragraph.
The board may classify or reclassify tax-forfeited lands at
any regular or special meeting, as those terms are defined in chapter 13D and
may conduct only this business, or this business as well as other business or
activities at the meeting.
(d) At the meeting, the county board must allow any person or
agency possessing pertinent information to make or submit comments and recommendations
about the pending classification or reclassification.� In addition, representatives of governmental
entities in attendance must be allowed to describe plans, ideas, or projects
that may involve use or acquisition of the property by that or another
governmental entity.� The county board
must solicit and consider any relevant components of current municipal or
metropolitan comprehensive land use plans that incorporate the area in which
the land is located.� After allowing
testimony, the board may classify, reclassify, or delay taking action on any
parcel or parcels.� In order for a state
agency or a governmental subdivision of the state to preserve its right to
request a purchase or other acquisition of a forfeited parcel, it may, at any
time following forfeiture, file a written request to withhold the parcel from
sale or lease to others under the provisions of subdivision 1a.
(e) When classifying, reclassifying, appraising, and selling
lands under this chapter, the county board may designate the tracts as assessed
and acquired, or may by resolution provide for the subdivision of the tracts
into smaller units or for the grouping of several tracts into one tract when
the subdivision or grouping is deemed advantageous for conservation or sale purposes.� This paragraph does not authorize the county
board to subdivide a parcel or tract of tax-forfeited land that, as assessed
and acquired, is withheld from sale under section 282.018, subdivision 1.
(f) A county board may by resolution elect to use the
classification and reclassification procedures provided in paragraphs (g), (h),
and (i), instead of the procedures provided in paragraphs (b), (c), and
(d).� Once an election is made under this
paragraph, it is effective for a minimum of five years.
(g) The classification or reclassification of tax-forfeited
land that has not been sold or released from the trust may be made by the
county board using information made available to it by any office or department
of the federal, state, or local governments, or by any other person or agency
possessing pertinent information at the time the classification is made.
(h) If the lands are located within the boundaries of an
organized town or incorporated municipality, a classification or
reclassification and sale must first be approved by the town board of the town
or the governing body of the municipality in which the lands are located.� The town board of the town or the governing
body of the municipality is considered to have approved the classification or
reclassification and sale if the county board is not notified of the
disapproval of the classification or reclassification and sale within 60 days
of the date the request for approval was transmitted to the town board of the
town or governing body of the municipality.�
If the town board or governing body disapproves of the classification or
reclassification and sale, the county board must follow the procedures in
paragraphs (c) and (d), with regard to the parcel, and must additionally cause
to be published in a newspaper a notice of the date, time, location, and
purpose of the required meeting.
(i) If a town board or a governing body of a municipality or a
park and recreation board in a city of the first class desires to acquire any
parcel lying in the town or municipality by procedures authorized in this
section, it may file a written request under subdivision 1a, paragraph (a).
EFFECTIVE
DATE.� This section is effective July 1,
2010.
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Sec. 2.� Minnesota
Statutes 2008, section 282.01, subdivision 1a, is amended to read:
Subd. 1a.� Conveyance; generally to public
entities.� (a) Upon written request
from a state agency or a governmental subdivision of the state, a parcel of
unsold tax-forfeited land must be withheld from sale or lease to others for a
maximum of six months.� The request must
be submitted to the county auditor.� Upon
receipt, the county auditor must withhold the parcel from sale or lease to any
other party for six months, and must confirm the starting date of the six-month
withholding period to the requesting agency or subdivision.� If the request is from a governmental
subdivision of the state, the governmental subdivision must pay the maintenance
costs incurred by the county during the period the parcel is withheld.� The county board may approve a sale or
conveyance to the requesting party during the withholding period.� A conveyance of the property to the
requesting party terminates the withholding period.
A governmental subdivision of the state must not make, and a
county auditor must not act upon, a second request to withhold a parcel from
sale or lease within 18 months of a previous request for that parcel.� A county may reject a request made under this
paragraph if the request is made more than 30 days after the county has given
notice to the requesting state agency or governmental subdivision of the state
that the county intends to sell or otherwise dispose of the property.
(b) Nonconservation tax-forfeited lands may be sold by
the county board, for their market value as determined by the county board,
to an organized or incorporated governmental subdivision of the state for any
public purpose for which the subdivision is authorized to acquire property oder.� When the term "market value" is
used in this section, it means an estimate of the full and actual market value
of the parcel as determined by the county board, but in making this
determination, the board and the persons employed by or under contract with the
board in order to perform, conduct, or assist in the determination, are exempt
from the licensure requirements of chapter 82B.
(c) Nonconservation tax-forfeited lands may be
released from the trust in favor of the taxing districts on application of
to the county board by a state agency for an authorized use at not less
than their market value as determined by the county board.
(d) Nonconservation tax-forfeited lands may be sold by the
county board to an organized or incorporated governmental subdivision of the
state or state agency for less than their market value if:
(1) the county board determines that a sale at a reduced price
is in the public interest because a reduced price is necessary to provide an
incentive to correct the blighted conditions that make the lands undesirable in
the open market, or the reduced price will lead to the development of
affordable housing; and
(2) the governmental subdivision or state agency has
documented its specific plans for correcting the blighted conditions or
developing affordable housing, and the specific law or laws that empower it to
acquire real property in furtherance of the plans.
If the sale under this paragraph is to a governmental
subdivision of the state, the commissioner of revenue must convey the property
on behalf of the state by quit claim deed.�
If the sale under this paragraph is to a state agency, the commissioner
must issue a conveyance document that releases the property from the trust in
favor of the taxing districts.
(e) Nonconservation tax-forfeited land held in trust in favor
of the taxing districts may be conveyed by the commissioner of revenue may
convey by deed in the name of the state a tract of tax-forfeited land
held in trust in favor of the taxing districts to a governmental
subdivision for an authorized public use, if an application is submitted to the
commissioner which includes a statement of facts as to the use to be made of
the tract and the need therefor and the favorable recommendation
of the county board.� For the purposes
of this paragraph, "authorized public use" means a use that allows an
indefinite segment of the public to physically use and enjoy the property in
numbers appropriate to its size and use, or is for a public service
facility.� Authorized public uses as
defined in this paragraph are limited to:
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(1) a road, or right-of-way for a road;
(2) a park that is both available to, and accessible by, the
public that contains amenities such as campgrounds, playgrounds, athletic
fields, trails, or shelters;
(3) trails for walking, bicycling, snowmobiling, or other
recreational purposes, along with a reasonable amount of surrounding land
maintained in its natural state;
(4) transit facilities for buses, light rail transit, commuter
rail or passenger rail, including transit ways, park-and-ride lots, transit
stations, maintenance and garage facilities, and other facilities related to a
public transit system;
(5) public beaches or boat launches;
(6) public parking;
(7) civic recreation or conference facilities; and
(8) public service facilities such as fire halls, police
stations, lift stations, water towers, sanitation facilities, water treatment
facilities, and administrative offices.
No monetary
compensation or consideration is required for the conveyance, except as
provided in subdivision 1g, but the conveyance is subject to the conditions
provided in law, including, but not limited to, the reversion provisions of
subdivisions 1c and 1d.
(f) The commissioner of revenue shall convey a parcel of
nonconservation tax-forfeited land to a local governmental subdivision of the
state by quit claim deed on behalf of the state upon the favorable
recommendation of the county board if the governmental subdivision has
certified to the board that prior to forfeiture the subdivision was entitled to
the parcel under a written development agreement or instrument, but the
conveyance failed to occur prior to forfeiture.�
No compensation or consideration is required for, and no conditions
attach to, the conveyance.
(g) The commissioner of revenue shall convey a parcel of
nonconservation tax-forfeited land to the association of a common interest
community by quit claim deed upon the favorable recommendation of the county
board if the association certifies to the board that prior to forfeiture the
association was entitled to the parcel under a written agreement, but the
conveyance failed to occur prior to forfeiture.�
No compensation or consideration is required for, and no conditions
attach to, the conveyance.
(h) Conservation tax-forfeited land may be sold to a
governmental subdivision of the state for less than its market value for
either:� (1) creation or preservation of
wetlands; (2) drainage or storage of storm water under a storm water management
plan; or (3) preservation, or restoration and preservation, of the land in its
natural state.� The deed must contain a
restrictive covenant limiting the use of the land to one of these purposes for
30 years or until the property is reconveyed back to the state in trust.� At any time, the governmental subdivision may
reconvey the property to the state in trust for the taxing districts.� The deed of reconveyance is subject to
approval by the commissioner of revenue.�
No part of a purchase price determined under this paragraph shall be
refunded upon a reconveyance, but the amount paid for a conveyance under this
paragraph may be taken into account by the county board when setting the terms
of a future sale of the same property to the same governmental subdivision
under paragraph (b) or (d).� If the lands
are unplatted and located outside of an incorporated municipality and the
commissioner of natural resources determines there is a mineral use potential,
the sale is subject to the approval of the commissioner of natural resources.
(i) A park and recreation board in a city of the first class
is a governmental subdivision for the purposes of this section.
EFFECTIVE
DATE.� This section is effective July 1,
2010.
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Sec. 3.� Minnesota Statutes 2008, section 282.01,
subdivision 1b, is amended to read:
Subd. 1b.� Conveyance;
targeted neighborhood community
lands.� (a) Notwithstanding
subdivision 1a, in the case of tax-forfeited lands located in a targeted neighborhood,
as defined in section 469.201, subdivision 10 community in a city of the
first class, the commissioner of revenue shall convey by quit claim
deed in the name of the state any tract of tax-forfeited land held in trust in
favor of the taxing districts, to a political subdivision of the state
that submits an application to the commissioner of revenue and the favorable
recommendation of the county board.� For
purposes of this subdivision, the term "targeted community" has the
meaning given in section 469.201, subdivision 10, except that the land must be
located within a first class city.
(b) The application under
paragraph (a) must include a statement of facts as to the use to be made of the
tract, the need therefor, and a resolution, adopted by the governing body of
the political subdivision, finding that the conveyance of a tract of
tax-forfeited land to the political subdivision is necessary to provide for the
redevelopment of land as productive taxable property.� Deeds of conveyance issued under paragraph
(a) are not conditioned on continued use of the property for the use stated in
the application.
EFFECTIVE DATE.� This section is effective July 1, 2010.
Sec. 4.� Minnesota Statutes 2008, section 282.01,
subdivision 1c, is amended to read:
Subd. 1c.� Deed
of conveyance; form; approvals.� The
deed of conveyance for property conveyed for a an authorized
public use under the authorities in subdivision 1a, paragraph (e), must
be on a form approved by the attorney general and must be conditioned on
continued use for the purpose stated in the application as provided in this
section.� These deeds are conditional use
deeds that convey a defeasible estate.�
Reversion of the estate occurs by operation of law and without the
requirement for any affirmative act by or on behalf of the state when there is
a failure to put the property to the approved authorized public use for which
it was conveyed, or an abandonment of that use, except as provided in
subdivision 1d.
EFFECTIVE DATE.� This section is effective July 1, 2010.
Sec. 5.� Minnesota Statutes 2008, section 282.01,
subdivision 1d, is amended to read:
Subd. 1d.� Reverter
for failure to use; conveyance to state.�
(a) If after three years from the date of the conveyance a
governmental subdivision to which tax-forfeited land has been conveyed for a
specified an authorized public use as provided in this section
subdivision 1a, paragraph (e), fails to put the land to that use, or
abandons that use, the governing body of the subdivision may, must:� (1) with the approval of the county
board, purchase the property for an authorized public purpose at the present appraised
market value as determined by the county board.� In that case, the commissioner of revenue
shall, upon proper written application approved by the county board, issue an
appropriate deed to the subdivisions free of a use restriction and
reverter.� The governing body may also,
or (2) authorize the proper officers to convey the land, or the part
of the land not required for an authorized public use, to the state of
Minnesota.� in trust for the
taxing districts.� If the governing body
purchases the property under clause (1), the commissioner of revenue shall,
upon proper application submitted by the county auditor, convey the property on
behalf of the state by quit claim deed to the subdivision free of a use
restriction and the possibility of reversion or defeasement.� If the governing body decides to reconvey the
property to the state under this clause, the officers shall execute a deed
of conveyance immediately.� The
conveyance is subject to the approval of the commissioner and its form must be
approved by the attorney general.� A
sale, lease, transfer, or other conveyance of tax-forfeited lands by a housing
and redevelopment authority, a port authority, an economic development
authority, or a city as authorized by chapter 469 is not an abandonment of use
and the lands shall not be reconveyed to the state nor shall they revert to the
state.� A certificate made by a housing
and redevelopment authority, a port authority, an economic development
authority, or a city referring to a conveyance by it and stating that the
conveyance has been made as authorized by chapter 469 may be filed with the
county recorder or registrar of titles, and the rights of
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reverter in favor of the
state provided by subdivision 1e will then terminate.� No vote of the people is required for the
conveyance.� For the purposes of this paragraph, there
is no failure to put the land to the authorized public use and no abandonment
of that use if a formal plan of the governmental subdivision, including, but
not limited to, a comprehensive plan or land use plan that shows an intended
future use of the land for the authorized public use.
(b) Property held by a governmental subdivision of the state
under a conditional use deed executed under subdivision 1a, paragraph (e), by
the commissioner of revenue on or after January 1, 2007, may be acquired by
that governmental subdivision after 15 years from the date of the conveyance if
the commissioner determines upon written application from the subdivision that
the subdivision has in fact put the property to the authorized public use for
which it was conveyed, and the subdivision has made a finding that it has no
current plans to change the use of the lands.�
Prior to conveying the property, the commissioner shall inquire whether
the county board where the land is located objects to a conveyance of the
property to the subdivision without conditions and without further act by or
obligation of the subdivision.� If the
county does not object within 60 days, and the commissioner makes a favorable
determination, the commissioner shall issue a quit claim deed on behalf of the state
unconditionally conveying the property to the governmental subdivision.� For purposes of this paragraph, demonstration
of an intended future use for the authorized public use in a formal plan of the
governmental subdivision does not constitute use for that authorized public
use.
(c) Property held by a governmental subdivision of the state
under a conditional use deed executed under subdivision 1a, paragraph (e), by
the commissioner of revenue before January 1, 2007, is released from the use
restriction and possibility of reversion on January 1, 2022, if the county
board records a resolution describing the land and citing this paragraph.� The county board may authorize the county
treasurer to deduct the amount of the recording fees from future settlements of
property taxes to the subdivision.
(d) All property conveyed under a conditional use deed
executed under subdivision 1a, paragraph (e), by the commissioner of revenue is
released from the use restriction and reverter, and any use restriction or reverter
for which no declaration of reversion has been recorded with the county
recorder or registrar of titles, as appropriate, is nullified on the later
of:� (1) January 1, 2015; (2) 30 years
from the date the deed was acknowledged; or (3) final resolution of an appeal
to district court under subdivision 1e, if a lis pendens related to the appeal
is recorded in the office of the county recorder or registrar of titles, as
appropriate, prior to January 1, 2015.
EFFECTIVE
DATE.� This section is effective July 1,
2010.
Sec. 6.� Minnesota
Statutes 2008, section 282.01, is amended by adding a subdivision to read:
Subd. 1g.�
Conditional use deed fees.� (a) A governmental subdivision of the
state applying for a conditional use deed under subdivision 1a, paragraph (e),
must submit a fee of $250 to the commissioner of revenue along with the
application.� If the application is
denied, the commissioner shall refund $150 of the application fee.
(b) The proceeds from the fees must be deposited in a
Department of Revenue conditional use deed revolving fund.� The sums deposited into the revolving fund
are appropriated to the commissioner of revenue for the purpose of making the
refunds described in this subdivision, and administering conditional use deed
laws.
EFFECTIVE DATE.� This section is effective for applications received by the commissioner
after June 30, 2010.
Sec. 7.� Minnesota
Statutes 2008, section 282.01, is amended by adding a subdivision to read:
Subd. 1h.�
Conveyance; form.� The instruments of conveyance executed
and issued by the commissioner of revenue under subdivision 1a, paragraphs (c),
(d), (e), (f), (g), and (h), and subdivision 1d, paragraph (b), must be on a
form approved by the attorney general and are prima facie evidence of the facts
stated therein and that the execution and issuance of the conveyance complies
with the applicable laws.
EFFECTIVE
DATE.� This section is effective for deeds
executed by the commissioner of revenue after June 30, 2010.
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Sec. 8.� Minnesota
Statutes 2008, section 282.01, subdivision 2, is amended to read:
Subd. 2.� Conservation lands; county board
supervision.� (a) Lands
classified as conservation lands, unless reclassified as nonconservation
lands, sold to a governmental subdivision of the state, designated as lands
primarily suitable for forest production and sold as hereinafter provided, or
released from the trust in favor of the taxing districts, as herein provided,
will must be held under the supervision of the county board of the
county within which such the parcels lie.� and must not be conveyed or sold unless
the lands are:
The county board may, by resolution duly adopted, declare
lands classified as conservation lands as primarily suitable for timber
production and as lands which should be placed in private ownership for such
purposes.� If such action be approved by
the commissioner of natural resources, the lands so designated, or any part
thereof, may be sold by the county board in the same manner as provided for the
sale of lands classified as nonconservation lands.� Such county action and the approval of the
commissioner shall be limited to lands lying within areas zoned for restricted
uses under the provisions of Laws 1939, chapter 340, or any amendments thereof.
(1) reclassified as nonconservation lands;
(2) conveyed to a governmental subdivision of the state under
subdivision 1a;
(3) released from the trust in favor of the taxing districts
as provided in paragraph (b); or
(4) conveyed or sold under the authority of another general or
special law.
(b) The county board may, by resolution duly adopted,
resolve that certain lands classified as conservation lands shall be devoted to
conservation uses and may submit such a resolution to the
commissioner of natural resources.� If,
upon investigation, the commissioner of natural resources determines that the
lands covered by such the resolution, or any part thereof, can be
managed and developed for conservation purposes, the commissioner shall make a
certificate describing the lands and reciting the acceptance thereof on behalf
of the state for such purposes.�
The commissioner shall transmit the certificate to the county auditor,
who shall note the same upon the auditor's records and record the same with the
county recorder.� The title to all lands
so accepted shall be held by the state free from any trust in favor of any and all
taxing districts and such the lands shall be devoted thereafter
to the purposes of forestry, water conservation, flood control, parks, game
refuges, controlled game management areas, public shooting grounds, or other
public recreational or conservation uses, and managed, controlled, and
regulated for such purposes under the jurisdiction of the commissioner
of natural resources and the divisions of the department.
(c) All proceeds derived from the sale of timber, lease of
crops of hay, or other revenue from lands under the jurisdiction of the
commissioner of natural resources shall be credited to the general fund of the
state.
In case (d) If the commissioner of natural
resources shall determine determines that any tract of land so
held acquired by the state under paragraph (b) and situated
within or adjacent to the boundaries of any governmental subdivision of the
state is suitable for use by such the subdivision for any
authorized public purpose, the commissioner may convey such the
tract by deed in the name of the state to such the subdivision
upon the filing with the commissioner of a resolution adopted by a majority
vote of all the members of the governing body thereof, stating the purpose for
which the land is desired.� The deed of
conveyance shall be upon a form approved by the attorney general and must be
conditioned upon continued use for the purpose stated in the
resolution.� All proceeds derived from
the sale of timber, lease of hay stumpage, or other revenue from such lands
under the jurisdiction of the natural resources commissioner shall be paid into
the general fund of the state.
(e) The county auditor, with the approval of the county
board, may lease conservation lands remaining under the jurisdiction supervision
of the county board and sell timber and hay stumpage thereon in the manner
hereinafter provided, and all proceeds derived therefrom shall be distributed
in the same manner as provided in section 282.04.�
EFFECTIVE
DATE.� This section is effective July 1,
2010.
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Sec. 9.� Minnesota
Statutes 2008, section 282.01, subdivision 3, is amended to read:
Subd. 3.� Nonconservation lands; appraisal and
sale.� (a) All parcels of land
classified as nonconservation, except those which may be reserved, shall be
sold as provided, if it is determined, by the county board of the county in
which the parcels lie, that it is advisable to do so, having in mind their
accessibility, their proximity to existing public improvements, and the effect
of their sale and occupancy on the public burdens.� Any parcels of land proposed to be sold shall
be first appraised by the county board of the county in which the parcels
lie.� The parcels may be reappraised
whenever the county board deems it necessary to carry out the intent of
sections 282.01 to 282.13.
(b) In an appraisal the value of the land and any standing
timber on it shall be separately determined.�
No parcel of land containing any standing timber may be sold until the
appraised value of the timber on it and the sale of the land have been approved
by the commissioner of natural resources.�
The commissioner shall base review of a proposed sale on the policy and
considerations specified in subdivision 1.�
The decision of the commissioner shall be in writing and shall state the
reasons for it.� The commissioner's
decision is exempt from the rulemaking provisions of chapter 14 and section
14.386 does not apply.� The county may
appeal the decision of the commissioner in accordance with chapter 14.
(c) In any county in which a state forest or any part of
it is located, the county auditor shall submit to the commissioner at least 60
days before the first publication of the list of lands to be offered for sale a
list of all lands included on the list which are situated outside of any
incorporated municipality.� If, at any
time before the opening of the sale, the commissioner notifies the county
auditor in writing that there is standing timber on any parcel of such
land, the parcel shall not be sold unless the requirements of this section
respecting the separate appraisal of the timber and the approval of the
appraisal by the commissioner have been complied with.� The commissioner may waive the requirement of
the 60-day notice as to any parcel of land which has been examined and the
timber value approved as required by this section.
(d) If any public improvement is made by a municipality after
any parcel of land has been forfeited to the state for the nonpayment of taxes,
and the improvement is assessed in whole or in part against the property
benefited by it, the clerk of the municipality shall certify to the county
auditor, immediately upon the determination of the assessments for the
improvement, the total amount that would have been assessed against the parcel
of land if it had been subject to assessment; or if the public improvement is
made, petitioned for, ordered in or assessed, whether the improvement is
completed in whole or in part, at any time between the appraisal and the sale
of the parcel of land, the cost of the improvement shall be included as a
separate item and added to the appraised value of the parcel of land at the time
it is sold.� No sale of a parcel of land
shall discharge or free the parcel of land from lien for the special benefit
conferred upon it by reason of the public improvement until the cost of it,
including penalties, if any, is paid.�
The county board shall determine the amount, if any, by which the value
of the parcel was enhanced by the improvement and include the amount as a
separate item in fixing the appraised value for the purpose of sale.� In classifying, appraising, and selling
the lands, the county board may designate the tracts as assessed and acquired,
or may by resolution provide for the subdivision of the tracts into smaller
units or for the grouping of several tracts into one tract when the subdivision
or grouping is deemed advantageous for the purpose of sale.� Each such smaller tract or larger tract must
be classified and appraised as such before being offered for sale.� If any such lands have once been classified,
the board of county commissioners, in its discretion, may, by resolution,
authorize the sale of the smaller tract or larger tract without
reclassification.
EFFECTIVE
DATE.� This section is effective July 1,
2010.
Sec. 10.� Minnesota
Statutes 2008, section 282.01, subdivision 4, is amended to read:
Subd. 4.� Sale:�
method, requirements, effects.� The
sale authorized under subdivision 3 must be conducted by the county
auditor at the county seat of the county in which the parcels lie, except that
in St. Louis and Koochiching Counties, the sale may be conducted in any
county facility within the county.� The
sale must not be for less than the appraised value except as provided in
subdivision 7a.� The parcels must be
sold for cash only and at not less than the
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appraised value, unless the county board of the
county has adopted a resolution providing for their sale on terms, in which
event the resolution controls with respect to the sale.� When the sale is made on terms other than for
cash only (1) a payment of at least ten percent of the purchase price must be
made at the time of purchase, and the balance must be paid in no more than ten
equal annual installments, or (2) the payments must be made in accordance with
county board policy, but in no event may the board require more than 12
installments annually, and the contract term must not be for more than ten
years.� Standing timber or timber
products must not be removed from these lands until an amount equal to the
appraised value of all standing timber or timber products on the lands at the
time of purchase has been paid by the purchaser.� If a parcel of land bearing standing timber
or timber products is sold at public auction for more than the appraised value,
the amount bid in excess of the appraised value must be allocated between the
land and the timber in proportion to their respective appraised values.� In that case, standing timber or timber
products must not be removed from the land until the amount of the excess bid
allocated to timber or timber products has been paid in addition to the
appraised value of the land.� The
purchaser is entitled to immediate possession, subject to the provisions of any
existing valid lease made in behalf of the state.
For sales occurring on or after July 1, 1982, the unpaid
balance of the purchase price is subject to interest at the rate determined
pursuant to section 549.09.� The unpaid
balance of the purchase price for sales occurring after December 31, 1990, is
subject to interest at the rate determined in section 279.03, subdivision
1a.� The interest rate is subject to
change each year on the unpaid balance in the manner provided for rate changes
in section 549.09 or 279.03, subdivision 1a, whichever, is applicable.� Interest on the unpaid contract balance on
sales occurring before July 1, 1982, is payable at the rate applicable to the
sale at the time that the sale occurred.
EFFECTIVE
DATE.� This section is effective July 1,
2010.
Sec. 11.� Minnesota
Statutes 2008, section 282.01, subdivision 7, is amended to read:
Subd. 7.� County sales; notice, purchase price,
disposition.� The sale must commence
at the time determined by the county board of the county in which the parcels
are located.� The county auditor shall
offer the parcels of land in order in which they appear in the notice of sale,
and shall sell them to the highest bidder, but not for a sum less than the
appraised value, until all of the parcels of land have been offered.� Then the county auditor shall sell any
remaining parcels to anyone offering to pay the appraised value, except that if
the person could have repurchased a parcel of property under section 282.012 or
282.241, that person may not purchase that same parcel of property at the sale
under this subdivision for a purchase price less than the sum of all taxes,
assessments, penalties, interest, and costs due at the time of forfeiture
computed under section 282.251, and any special assessments for improvements
certified as of the date of sale.� The
sale must continue until all the parcels are sold or until the county board
orders a reappraisal or withdraws any or all of the parcels from sale.� The list of lands may be added to and the
added lands may be sold at any time by publishing the descriptions and
appraised values.� The added lands must
be:� (1) parcels of land that have become
forfeited and classified as nonconservation since the commencement of any prior
sale; (2) parcels classified as nonconservation that have been reappraised;
(3) parcels that have been reclassified as nonconservation; or (4) other
parcels that are subject to sale but were omitted from the existing list for
any reason.� The descriptions and
appraised values must be published in the same manner as provided for the
publication of the original list.�
Parcels added to the list must first be offered for sale to the highest
bidder before they are sold at appraised value.�
All parcels of land not offered for immediate sale, as well as parcels
that are offered and not immediately sold, continue to be held in trust by the
state for the taxing districts interested in each of the parcels, under the
supervision of the county board.� Those
parcels may be used for public purposes until sold, as directed by the county
board.�
EFFECTIVE
DATE.� This section is effective July 1,
2010.
Sec. 12.� Minnesota
Statutes 2008, section 282.01, subdivision 7a, is amended to read:
Subd. 7a.� City sales; alternate procedures.� Land located in a home rule charter or
statutory city, or in a town which cannot be improved because of noncompliance
with local ordinances regarding minimum area, shape, frontage or access may be
sold by the county auditor pursuant to this subdivision if the auditor
determines that a nonpublic sale will encourage the approval of sale of the
land by the city or town and promote its return to the tax
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Top of Page 13317
rolls.� If the physical
characteristics of the land indicate that its highest and best use will be
achieved by combining it with an adjoining parcel and the city or town has not
adopted a local ordinance governing minimum area, shape, frontage, or access,
the land may also be sold pursuant to this subdivision.� If the property consists of an undivided
interest in land or land and improvements, the property may also be sold to the
other owners under this subdivision.� The
sale of land pursuant to this subdivision shall be subject to any conditions
imposed by the county board pursuant to section 282.03.� The governing body of the city or town may
recommend to the county board conditions to be imposed on the sale.� The county auditor may restrict the sale to
owners of lands adjoining the land to be sold.�
The county auditor shall conduct the sale by sealed bid or may select
another means of sale.� The land shall be
sold to the highest bidder but in no event shall the land and may
be sold for less than its appraised value.�
All owners of land adjoining the land to be sold shall be given a
written notice at least 30 days prior to the sale.�
This subdivision shall be liberally construed to encourage the
sale and utilization of tax-forfeited land, to eliminate nuisances and
dangerous conditions and to increase compliance with land use ordinances.
EFFECTIVE
DATE.� This section is effective July 1,
2010.
Sec. 13.� Minnesota
Statutes 2008, section 282.01, is amended by adding a subdivision to read:
Subd. 12.�
Notice; public hearing for use
change.� If a governmental
subdivision that acquired a parcel for public use under this section later
determines to change the use, it must hold a public hearing on the proposed use
change.� The governmental subdivision
must mail written notice of the proposed use change and the public hearing to
each owner of property that is within 400 feet of the parcel at least ten days
and no more than 60 days before it holds the hearing.� The notice must identify:� (1) the parcel, (2) its current use, (3) the
proposed use, (4) the date, time, and place of the public hearing, and (5)
where to submit written comments on the proposal and that the public is invited
to testify at the public hearing.
EFFECTIVE
DATE.� This section is effective July 1,
2010, and applies to a change in use of a parcel acquired under Minnesota
Statutes, section 282.01, whether acquired by the governmental subdivision
before or after the effective date of this section.
Sec. 14.� REPEALER.�
Minnesota Statutes 2008, sections 282.01, subdivisions 9, 10,
and 11; and 383A.76, are repealed.
EFFECTIVE
DATE.� This section is effective July 1,
2010.
ARTICLE 10
MISCELLANEOUS
Section 1.� [3.192] REQUIREMENTS FOR NEW OR RENEWED
TAX EXPENDITURES.�
Any bill that creates, renews, or continues a tax expenditure
must include a statement of intent that clearly provides the purpose of the tax
expenditure and a standard or goal against which its effectiveness may be
measured.� For purposes of this section,
"tax expenditure" has the meaning given in section 270C.11,
subdivision 6.
EFFECTIVE
DATE.� This section is effective for tax
expenditures enacted after July 1, 2010.
Sec. 2.� Minnesota
Statutes 2008, section 270C.34, subdivision 1, is amended to read:
Subdivision 1.� Authority.�
(a) The commissioner may abate, reduce, or refund any penalty or
interest that is imposed by a law administered by the commissioner, or
imposed by section 270.0725, subdivision 1 or 2, as a result of the late
payment of tax or late filing of a return, if the failure to timely pay the tax
or failure to timely file the
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return is due to reasonable cause, or if the taxpayer is
located in a presidentially declared disaster or in a presidentially
declared state of emergency area or in an area declared to be in a state
of emergency by the governor under section 12.31.�
(b) The commissioner shall abate any part of a penalty or
additional tax charge under section 289A.25, subdivision 2, or 289A.26,
subdivision 4, attributable to erroneous advice given to the taxpayer in
writing by an employee of the department acting in an official capacity, if the
advice:�
(1) was reasonably relied on and was in response to a specific
written request of the taxpayer; and
(2) was not the result of failure by the taxpayer to provide
adequate or accurate information.�
(c) The commissioner may abate a penalty imposed under section
270.0725, subdivision 1 or 2, if the failure to timely file is due to
reasonable cause, or if the airline company is located in a presidentially
declared disaster area.�
EFFECTIVE
DATE.� This section is effective the day
following final enactment.
Sec. 3.� Minnesota
Statutes 2008, section 270C.52, subdivision 2, is amended to read:
Subd. 2.� Payment agreements.� (a) When any portion of any tax payable
to the commissioner together with interest and penalty thereon, if any, has not
been paid, the commissioner may extend the time for payment for a further
period.� When the authority of this
section is invoked, the extension shall be evidenced by written agreement
signed by the taxpayer and the commissioner, stating the amount of the tax with
penalty and interest, if any, and providing for the payment of the amount in
installments.
(b) The agreement may contain a confession of judgment for the
amount and for any unpaid portion thereof.�
If the agreement contains a confession of judgment, the confession of
judgment must provide that the commissioner may enter judgment against the
taxpayer in the district court of the county of residence as shown upon the
taxpayer's tax return for the unpaid portion of the amount specified in the
extension agreement.
(c) The agreement shall provide that it can be terminated,
after notice by the commissioner, if information provided by the taxpayer prior
to the agreement was inaccurate or incomplete, collection of the tax covered by
the agreement is in jeopardy, there is a subsequent change in the taxpayer's
financial condition, the taxpayer has failed to make a payment due under the
agreement, or the taxpayer has failed to pay any other tax or file a tax return
coming due after the agreement.
(d) The notice must be given at least 14 calendar days prior
to termination, and shall advise the taxpayer of the right to request a
reconsideration from the commissioner of whether termination is reasonable and
appropriate under the circumstances.� A
request for reconsideration does not stay collection action beyond the 14-day
notice period.� If the commissioner has
reason to believe that collection of the tax covered by the agreement is in
jeopardy, the commissioner may proceed under section 270C.36 and terminate the
agreement without regard to the 14-day period.
(e) The commissioner may accept other collateral the
commissioner considers appropriate to secure satisfaction of the tax
liability.� The principal sum specified
in the agreement shall bear interest at the rate specified in section 270C.40
on all unpaid portions thereof until the same has been fully paid or the unpaid
portion thereof has been entered as a judgment.�
The judgment shall bear interest at the rate specified in section
270C.40.
(f) If it appears to the commissioner that the tax reported by
the taxpayer is in excess of the amount actually owing by the taxpayer, the
extension agreement or the judgment entered pursuant thereto shall be
corrected.� If after making the extension
agreement or entering judgment with respect thereto, the commissioner
determines that the tax as reported by the taxpayer is less than the amount
actually due, the commissioner shall assess a further tax in accordance with
the provisions of law applicable to the tax.
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13319
(g) The authority granted to
the commissioner by this section is in addition to any other authority granted
to the commissioner by law to extend the time of payment or the time for filing
a return and shall not be construed in limitation thereof.
(h) The commissioner shall
charge a fee for entering into payment agreements that reflects the
commissioner's costs for entering into payment agreements.� The fee is set at $50 and is charged for
entering into a payment agreement, for entering into a new payment agreement
after the taxpayer has defaulted on a prior agreement, and for entering into a
new payment agreement as a result of renegotiation of the terms of an existing
agreement.� The fee is paid to the
commissioner before the payment agreement becomes effective and does not reduce
the amount of the liability.
EFFECTIVE DATE.� This section is effective for payment agreements
entered into or renegotiated after June 30, 2010.
Sec. 4.� Minnesota Statutes 2009 Supplement, section
349.12, subdivision 25, is amended to read:
Subd. 25.� Lawful
purpose.� (a) "Lawful
purpose" means one or more of the following:
(1) any expenditure by or
contribution to a 501(c)(3) or festival organization, as defined in subdivision
15a, provided that the organization and expenditure or contribution are in
conformity with standards prescribed by the board under section 349.154, which standards
must apply to both types of organizations in the same manner and to the same
extent;
(2) a contribution to or
expenditure for goods and services for an individual or family suffering from
poverty, homelessness, or disability, which is used to relieve the effects of
that suffering;
(3) a contribution to a
program recognized by the Minnesota Department of Human Services for the
education, prevention, or treatment of problem gambling;
(4) a contribution to or
expenditure on a public or private nonprofit educational institution registered
with or accredited by this state or any other state;
(5) a contribution to an
individual, public or private nonprofit educational institution registered with
or accredited by this state or any other state, or to a scholarship fund of a
nonprofit organization whose primary mission is to award scholarships, for
defraying the cost of education to individuals where the funds are awarded
through an open and fair selection process;
(6) activities by an
organization or a government entity which recognize military service to the
United States, the state of Minnesota, or a community, subject to rules of the
board, provided that the rules must not include mileage reimbursements in the
computation of the per diem reimbursement limit and must impose no aggregate
annual limit on the amount of reasonable and necessary expenditures made to
support:
(i) members of a military
marching or color guard unit for activities conducted within the state;
(ii) members of an
organization solely for services performed by the members at funeral services;
(iii) members of military
marching, color guard, or honor guard units may be reimbursed for participating
in color guard, honor guard, or marching unit events within the state or states
contiguous to Minnesota at a per participant rate of up to $35 per diem; or
(iv) active military
personnel and their immediate family members in need of support services;
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13320
(7) recreational, community, and athletic facilities and
activities intended primarily for persons under age 21, provided that such
facilities and activities do not discriminate on the basis of gender and the
organization complies with section 349.154, subdivision 3a;
(8) payment of local taxes authorized under this chapter,
taxes imposed by the United States on receipts from lawful gambling, the taxes
imposed by section 297E.02, subdivisions 1, 4, 5, and 6, and the tax imposed on
unrelated business income by section 290.05, subdivision 3;
(9) payment of real estate taxes and assessments on permitted
gambling premises owned by the licensed organization paying the taxes, or
wholly leased by a licensed veterans organization under a national charter
recognized under section 501(c)(19) of the Internal Revenue Code;
(10) a contribution to the United States, this state or any
of its political subdivisions, or any agency or instrumentality thereof other
than a direct contribution to a law enforcement or prosecutorial agency;
(11) a contribution to or expenditure by a nonprofit
organization which is a church or body of communicants gathered in common
membership for mutual support and edification in piety, worship, or religious
observances;
(12) an expenditure for citizen monitoring of surface water
quality by individuals or nongovernmental organizations that is consistent with
section 115.06, subdivision 4, and Minnesota Pollution Control Agency guidance
on monitoring procedures, quality assurance protocols, and data management,
provided that the resulting data is submitted to the Minnesota Pollution
Control Agency for review and inclusion in the state water quality database;
(13) a contribution to or expenditure on
projects or activities approved by the commissioner of natural resources for:
(i) wildlife management projects that benefit the public at
large;
(ii) grant-in-aid trail maintenance and grooming established
under sections 84.83 and 84.927, and other trails open to public use, including
purchase or lease of equipment for this purpose; and
(iii) supplies and materials for safety training and
educational programs coordinated by the Department of Natural Resources,
including the Enforcement Division;
(14) conducting nutritional programs, food shelves, and
congregate dining programs primarily for persons who are age 62 or older or
disabled;
(15) a contribution to a community arts organization, or an
expenditure to sponsor arts programs in the community, including but not
limited to visual, literary, performing, or musical arts;
(16) an expenditure by a licensed fraternal organization or a
licensed veterans organization for payment of water, fuel for heating, electricity,
and sewer costs for a building wholly owned or wholly leased by and used as
the primary headquarters of the licensed veterans organization or fraternal
organization:
(i) up to 100 percent for a building wholly owned or wholly
leased by and used as the primary headquarters of the licensed veteran or
fraternal organization; or
(ii) a proportional amount subject to approval by the
director and based on the portion of a building used as the primary
headquarters of the licensed veteran or fraternal organization;
Journal of the House - 106th Day - Saturday, May 15, 2010 -
Top of Page 13321
(17) expenditure by a licensed veterans organization of up to
$5,000 in a calendar year in net costs to the organization for meals and other
membership events, limited to members and spouses, held in recognition of military
service.� No more than $5,000 can be
expended in total per calendar year under this clause by all licensed veterans
organizations sharing the same veterans post home;
(18) payment of fees authorized under this chapter imposed by
the state of Minnesota to conduct lawful gambling in Minnesota;
(19) a contribution or expenditure to honor an individual's
humanitarian service as demonstrated through philanthropy or volunteerism to
the United States, this state, or local community;
(20) a contribution by a licensed organization to another
licensed organization with prior board approval, with the contribution
designated to be used for one or more of the following lawful purposes under
this section:� clauses (1) to (7), (11)
to (15), (19), and (25);
(21) an expenditure that is a contribution to a parent
organization, if the parent organization:�
(i) has not provided to the contributing organization within one year of
the contribution any money, grants, property, or other thing of value, and (ii)
has received prior board approval for the contribution that will be used for a
program that meets one or more of the lawful purposes under subdivision 7a;
(22) an expenditure for the repair, maintenance, or
improvement of real property and capital assets owned by an organization, or
for the replacement of a capital asset that can no longer be repaired, with a
fiscal year limit of five percent of gross profits from the previous fiscal
year, with no carryforward of unused allowances.� The fiscal year is July 1 through June
30.� Total expenditures for the fiscal
year may not exceed the limit unless the board has specifically approved the
expenditures that exceed the limit due to extenuating circumstances beyond the
organization's control.� An expansion of
a building or bar-related expenditures are not allowed under this provision.
(i) The expenditure must be related to the portion of the real
property or capital asset that must be made available for use free of any
charge to other nonprofit organizations, community groups, or service groups,
or is used for the organization's primary mission or headquarters.
(ii) An expenditure may be made to bring an existing building
that the organization owns into compliance with the Americans with Disabilities
Act.
(iii) An organization may apply the amount that is allowed
under item (ii) to the erection or acquisition of a replacement building that
is in compliance with the Americans with Disabilities Act if the board has
specifically approved the amount.� The cost
of the erection or acquisition of a replacement building may not be made from
gambling proceeds, except for the portion allowed under this item;
(23) an expenditure for the acquisition or improvement of a
capital asset with a cost greater than $2,000, excluding real property, that
will be used exclusively for lawful purposes under this section if the board
has specifically approved the amount;
(24) an expenditure for the acquisition, erection,
improvement, or expansion of real property, if the board has first specifically
authorized the expenditure after finding that the real property will be used
exclusively for lawful purpose under this section; or
(25) an expenditure, including a mortgage payment or other
debt service payment, for the erection or acquisition of a comparable building
to replace an organization-owned building that was destroyed or made
uninhabitable by fire or catastrophe or to replace an organization-owned
building that was taken or sold under an eminent domain proceeding.� The expenditure may be only for that part of
the replacement cost not reimbursed by insurance for the fire or catastrophe or
compensation not received from a governmental unit under the eminent domain
proceeding, if the board has first specifically authorized the expenditure.
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13322
(b) Expenditures authorized
by the board under clauses (24) and (25) must be 51 percent completed within
two years of the date of board approval; otherwise the organization must
reapply to the board for approval of the project.� "Fifty-one percent completed" means
that the work completed must represent at least 51 percent of the value of the
project as documented by the contractor or vendor.
(c) Notwithstanding
paragraph (a), "lawful purpose" does not include:
(1) any expenditure made or
incurred for the purpose of influencing the nomination or election of a
candidate for public office or for the purpose of promoting or defeating a
ballot question;
(2) any activity intended to
influence an election or a governmental decision-making process;
(3) a contribution to a
statutory or home rule charter city, county, or town by a licensed organization
with the knowledge that the governmental unit intends to use the contribution
for a pension or retirement fund; or
(4) a contribution to a
501(c)(3) organization or other entity with the intent or effect of not
complying with lawful purpose restrictions or requirements.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 5.� TAX
EXPENDITURE REVIEW REPORT.�
Subdivision 1.� Report
to the legislature.� By
February 15, 2011, the commissioner of revenue shall provide a report to the
chairs and ranking minority members of the house of representatives and senate
tax committees with jurisdiction over taxes suggesting a process for the
periodic review and sunset or extension of tax expenditures on an ongoing
basis.
Subd. 2.� Contents
of the report.� (a) The report
shall include the following information for every tax, as defined in Minnesota
Statutes, section 270C.11, subdivision 6:
(1) a definition of the tax
base for the tax;
(2) a definition of a tax
expenditure for each tax; and
(3) a list of existing
provisions in law that meet the definition of tax expenditure for each tax.
(b) The report shall include
a suggested list of information, currently not included in the tax expenditure
budget under Minnesota Statutes, section 270C.11, needed to allow evaluation of
the effectiveness of new and existing tax expenditures in meeting not only the
stated goal of the tax expenditure but also the general tax principles of:
(1) transparency and
understandability;
(2) simplicity and
efficiency;
(3) equity;
(4) stability and
predictability;
(5) compliance and
accountability;
(6) national and global
competitiveness; and
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13323
(7) conformity of the
expenditure with corresponding federal taxes and multistate agreements.
(c) The report shall also
include recommendations on specific procedures for periodic review of tax expenditures,
including the need for additional reports, study or oversight groups, and
fiscal or other resources, and a suggested timetable for systematic review of
the tax expenditures in the various tax areas.
EFFECTIVE DATE.� This section is effective the day following final
enactment.
Sec. 6.� OTTERTAIL
COUNTY; ADDITIONAL AID, 2010 ONLY.�
$200,000 is appropriated in
fiscal year 2011 from the general fund to the commissioner of revenue to make a
payment to Ottertail County to compensate the county for costs incurred for
repair of roads and other infrastructure due to flooding.� The payment shall be made with the December
2010 payment under Minnesota Statutes, section 477A.015.
Sec. 7.� APPROPRIATION;
CHISAGO COUNTY.�
$100,000 is appropriated in
fiscal year 2011 from the general fund to the commissioner of commerce to be
used to provide a grant to Chisago County for development of a carbon neutral
industrial park that received a grant under Laws 2009, chapter 138, article
4.� This is a onetime appropriation.
Sec. 8.� APPROPRIATION;
CITY OF PRINCETON.�
$100,000 is appropriated in
fiscal year 2011 from the general fund to the commissioner of employment and
economic development to be used to provide a grant to the city of Princeton for
engineering and preliminary design for a biomass facility and industrial park
improvements for renewable energy development.�
This is a onetime appropriation.
Sec. 9.� APPROPRIATION;
DEPARTMENT OF REVENUE FACILITY; ELY.�
$100,000 is appropriated in
fiscal year 2011 from the general fund to the commissioner of revenue to be
used for facility and parking improvements at the revenue department facility
in Ely.� This is a onetime appropriation.
Sec. 10.� APPROPRIATION;
TAX EXPENDITURE REVIEW REPORT.�
$60,000 is appropriated in
fiscal year 2011 from the general fund to the commissioner of revenue for the
tax expenditure review report required under section 5.� The appropriation under this section is
onetime and is not added to the agency's base budget."
Delete the title and insert:
"A bill for an act
relating to the financing and operation of state and local government; making
policy, technical, administrative, payment, enforcement, collection, refund,
and other changes to individual income; corporate franchise, estate, sales and
use, local taxes, gross receipts, gross revenues, cigarette, tobacco,
insurance, property, minerals, petroleum, and other taxes and tax-related
provisions; property tax reform, accountability, value, and efficiency
provisions; authorizing and modifying certain local taxes; making changes to
tax-forfeited land, emergency debt certificate, local government aid, job
opportunity building zone, special service district, agricultural preserve, tax
increment financing, economic development authority, lawful gambling and
special taxing district provisions; increasing and modifying certain borrowing
authorities; modifying bond allocation provisions; requiring studies; providing
appointments; providing grants; appropriating money for a revenue department
facility and parking improvements; appropriating money; amending Minnesota
Statutes 2008, sections 60A.209, subdivision 1;
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13324
103D.335, subdivision 17;
270.075, subdivisions 1, 2; 270C.34, subdivision 1; 270C.52, subdivision 2;
270C.87; 270C.94, subdivision 3; 272.02, subdivision 31; 272.0213; 272.025, subdivisions
1, 3; 272.029, subdivisions 4, 7; 273.113, subdivision 3; 273.124, subdivisions
8, 14; 273.13, subdivision 22; 273.1392; 275.71, subdivisions 4, 5; 275.75;
276.02; 279.01, subdivision 3; 279.025; 279.37, subdivision 1; 282.01,
subdivisions 1, 1a, 1b, 1c, 1d, 2, 3, 4, 7, 7a, by adding subdivisions;
289A.08, subdivision 7; 289A.09, subdivision 2; 289A.12, subdivision 14;
289A.30, subdivision 2; 289A.50, subdivisions 2, 4; 289A.60, subdivision 7;
290.014, subdivision 2; 290.067, subdivision 1; 290.081; 290.0921, subdivision
3; 290.17, subdivision 2; 295.55, subdivisions 2, 3; 297A.62, as amended;
297A.665; 297A.68, subdivision 39; 297A.70, subdivision 13; 297A.71,
subdivision 23, by adding a subdivision; 297A.75, subdivision 3; 297A.995,
subdivisions 10, 11; 297F.01, subdivision 22a; 297F.04, by adding a
subdivision; 297F.07, subdivision 4; 297F.25, subdivision 1; 297I.01,
subdivision 9; 297I.05, subdivision 7; 297I.30, subdivisions 1, 2, 7, 8;
297I.40, subdivisions 1, 5; 297I.65, by adding a subdivision; 298.282,
subdivision 1; 373.40, subdivision 1; 383B.79, subdivision 5; 428A.12; 428A.18,
subdivision 2; 469.101, subdivision 1; 469.319, subdivision 5; 469.3193;
473.39, by adding a subdivision; 473H.05, subdivision 1; 474A.04, subdivision
6; 474A.091, subdivision 3; 477A.17; Minnesota Statutes 2009 Supplement,
sections 134.34, subdivision 4; 273.111, subdivisions 3a, 4; 273.114,
subdivisions 1, 2, 5; 273.124, subdivision 3a; 273.13, subdivisions 23, 25;
275.065, subdivision 3; 275.70, subdivision 5, as amended; 279.01, subdivision
1; 289A.18, subdivision 1; 290.01, subdivisions 19a, 19b, as amended, 19d;
290.06, subdivision 2c; 290.0671, subdivision 1; 290.091, subdivision 2;
297A.75, subdivisions 1, 2; 297I.35, subdivision 2; 349.12, subdivision 25; 429.011,
subdivision 2a; 475.755; 477A.013, subdivision 8; Laws 1999, chapter 243,
article 4, section 18, subdivisions 3, as amended, 4; Laws 2001, First Special
Session chapter 5, article 3, section 50, as amended; Laws 2002, chapter 377,
article 3, section 25, as amended; Laws 2009, chapter 88, article 2, section
49; article 4, sections 5; 23, subdivision 4; Laws 2010, chapter 216, sections
2, subdivision 3; 3, subdivision 6; by adding subdivisions; 4, subdivisions 1,
2, 4, 6, 7, 8; 58, as amended; proposing coding for new law in Minnesota
Statutes, chapters 3; 6; 270C; 296A; 645; repealing Minnesota Statutes 2008,
sections 282.01, subdivisions 9, 10, 11; 297I.30, subdivisions 4, 5, 6;
383A.76."
We request the adoption of
this report and repassage of the bill.
House Conferees:� Ann
Lenczewski, Paul Marquart, Lyle Koenen, Diane Loeffler and Dean Urdahl.
Senate Conferees:� Rod
Skoe, Ann H. Rest, Mee Moua and Julie
Rosen.
����� Lenczewski moved that the report of the Conference Committee on
H. F. No. 3729 be adopted and that the bill be repassed as
amended by the Conference Committee.� The
motion prevailed.
H. F. No. 3729,
A bill for an act relating to the financing and operation of state and local
government; making policy, technical, administrative, payment, enforcement,
collection, refund, and other changes to individual income; corporate
franchise, estate, sales and use, local taxes, gross receipts, gross revenues,
cigarette, tobacco, insurance, property, minerals, petroleum, and other taxes
and tax-related provisions; requiring sunset of new tax expenditures; property
tax reform, accountability, value, and efficiency provisions; modifying certain
payment schedules; making changes to tax-forfeited land, emergency debt
certificate, local government aid, job opportunity building zone, special
service district, agricultural preserve, tax increment financing, economic
development authority, and special taxing district provisions; increasing and
modifying certain borrowing authorities; modifying bond allocation provisions;
specifying duties of assessors; requiring studies; providing appointments;
repealing political contribution refund; appropriating money; amending
Minnesota Statutes 2008, sections 60A.209, subdivision 1; 82B.035, subdivision
2; 103D.335, subdivision 17; 270.075, subdivisions 1, 2; 270.41, subdivision 5;
270A.03, subdivision 7; 270C.11, subdivision 4; 270C.34, subdivision 1;
270C.52, subdivision 2; 270C.87; 270C.94, subdivision 3; 272.0213; 272.025,
subdivisions 1, 3; 272.029, subdivisions 4, 7; 273.061, subdivisions 7, 8;
273.113, subdivision 3; 273.1231, subdivision 1; 273.1232, subdivision 1;
273.124, subdivisions 1, 8, 14; 273.13, subdivision 34; 273.1392;
Journal of the House - 106th
Day - Saturday, May 15, 2010 - Top of Page 13325
275.71, subdivisions 4, 5;
275.75; 276.02; 276.112; 279.01, subdivision 3; 279.025; 279.37, subdivision 1;
282.01, subdivisions 1, 1a, 1b, 1c, 1d, 2, 3, 4, 7, 7a, by adding subdivisions;
289A.08, subdivision 7; 289A.09, subdivision 2; 289A.10, subdivision 1;
289A.12, subdivision 14; 289A.30, subdivision 2; 289A.50, subdivisions 1, 2, 4;
289A.60, subdivision 7, by adding a subdivision; 290.014, subdivision 2;
290.067, subdivision 1; 290.081; 290.0921, subdivision 3; 290.17, subdivision
2; 290.21, subdivision 4; 290A.04, subdivision 2; 290B.03, by adding a
subdivision; 290B.04, subdivisions 3, 4; 290B.05, subdivision 1; 291.03, by
adding a subdivision; 295.55, subdivisions 2, 3; 297A.62, as amended; 297A.665;
297A.68, subdivision 39; 297A.70, subdivision 13; 297A.71, subdivisions 23, 39;
297A.995, subdivisions 10, 11; 297F.01, subdivision 22a; 297F.04, by adding a
subdivision; 297F.07, subdivision 4; 297F.25, subdivision 1; 297I.01, subdivision
9; 297I.05, subdivision 7; 297I.30, subdivisions 1, 2, 7, 8; 297I.40,
subdivisions 1, 5; 297I.65, by adding a subdivision; 298.282, subdivision 1;
428A.12; 428A.18, subdivision 2; 469.101, subdivision 1; 469.319, subdivision
5; 469.3193; 473.39, by adding a subdivision; 473H.05, subdivision 1; 474A.04,
subdivision 6; 474A.091, subdivision 3; Minnesota Statutes 2009 Supplement,
sections 134.34, subdivision 4; 137.025, subdivision 1; 273.114, subdivision 2;
273.124, subdivision 3a; 273.13, subdivisions 23, 25; 275.065, subdivision 3;
275.70, subdivision 5, as amended; 276.04, subdivision 2; 279.01, subdivision
1; 289A.18, subdivision 1; 289A.20, subdivision 4; 290.01, subdivisions 19a,
19b, as amended, 19d; 290.06, subdivision 2c; 290.0671, subdivision 1; 290.091,
subdivision 2; 290B.03, subdivision 1; 291.005, subdivision 1, as amended;
297I.35, subdivision 2; 475.755; 477A.011, subdivision 36, as amended;
477A.013, subdivision 8; Laws 2001, First Special Session chapter 5, article 3,
section 50, as amended; Laws 2002, chapter 377, article 3, section 25, as
amended; Laws 2009, chapter 88, article 2, section 49; article 4, sections 5;
23, subdivision 4; Laws 2010, chapter 216, sections 2, subdivision 3; 3,
subdivision 6; by adding subdivisions; 4, subdivisions 1, 2, 4, 6, 7, 8;
proposing coding for new law in Minnesota Statutes, chapters 3; 6; 270C; 273;
296A; 524; 645; repealing Minnesota Statutes 2008, sections 10A.322,
subdivision 4; 13.4967, subdivision 2; 282.01, subdivisions 9, 10, 11; 290.06,
subdivision 23; 297I.30, subdivisions 4, 5, 6; 383A.76.
����� The bill was read for the third time, as
amended by Conference, and placed upon its repassage.
����� The question was taken on the repassage of
the bill and the roll was called.� There
were 78 yeas and 53 nays as follows:
����� Those who voted in the affirmative were:
Anzelc
Atkins
Benson
Bigham
Brown
Brynaert
Bunn
Carlson
Champion
Clark
Davnie
Dill
Dittrich
Doty
Eken
Falk
Fritz
Gardner
Haws
Hayden
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Huntley
Jackson
Johnson
Kahn
Kalin
Knuth
Koenen
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Mahoney
Mariani
Marquart
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Nornes
Norton
Olin
Otremba
Pelowski
Persell
Peterson
Poppe
Rosenthal
Rukavina
Ruud
Sailer
Scalze
Sertich
Simon
Slawik
Slocum
Solberg
Swails
Thao
Thissen
Tillberry
Wagenius
Ward
Welti
Westrom
Winkler
Spk. Kelliher
����� Those
who voted in the negative were:
Anderson, B.
Anderson, P.
Anderson, S.
Beard
Bly
Brod
Buesgens
Cornish
Davids
Dean
Demmer
Dettmer
Doepke
Downey
Drazkowski
Eastlund
Emmer
Faust
Journal of the
House - 106th Day - Saturday, May 15, 2010 - Top of Page 13326
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Holberg
Hoppe
Howes
Juhnke
Kath
Kiffmeyer
Kohls
Loon
Mack
Masin
McFarlane
McNamara
Newton
Obermueller
Paymar
Peppin
Reinert
Sanders
Scott
Seifert
Severson
Shimanski
Smith
Sterner
Torkelson
Urdahl
Zellers
����� The bill was repassed, as amended by Conference,
and its title agreed to.
����� Speaker pro tempore Sertich called Hortman
to the Chair.
CALENDAR FOR THE DAY
����� S. F. No. 251, A bill for
an act relating to commerce; clarifying the definition of "motor
vehicle" in the statutory provision deeming the driver to be the agent of
the owner in case of accident; amending Minnesota Statutes 2008, section
169.09, subdivision 5a.
����� The bill was read for the third time and
placed upon its final passage.
����� The question was taken on the passage of
the bill and the roll was called.� There
were 69 yeas and 61 nays as follows:
����� Those who voted in the affirmative were:
Anzelc
Atkins
Benson
Bly
Brynaert
Buesgens
Bunn
Carlson
Clark
Davnie
Dill
Falk
Fritz
Greiling
Hansen
Haws
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Huntley
Johnson
Kahn
Kalin
Knuth
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Otremba
Paymar
Persell
Rukavina
Ruud
Sailer
Scalze
Sertich
Simon
Slawik
Slocum
Smith
Solberg
Swails
Thao
Thissen
Tillberry
Wagenius
Westrom
Winkler
Zellers
Spk. Kelliher
����� Those
who voted in the negative were:
Anderson, B.
Anderson, P.
Anderson, S.
Beard
Bigham
Brod
Brown
Champion
Cornish
Davids
Dean
Demmer
Dettmer
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Faust
Gardner
Garofalo
Gottwalt
Gunther
Hackbarth
Hamilton
Hayden
Hosch
Howes
Jackson
Juhnke
Kath
Kiffmeyer
Koenen
Kohls
Loon
Mack
Morrow
Murdock
Nornes
Norton
Obermueller
Olin
Pelowski
Peppin
Peterson
Journal of the
House - 106th Day - Saturday, May 15, 2010 - Top of Page 13327
Poppe
Reinert
Rosenthal
Sanders
Scott
Seifert
Severson
Shimanski
Sterner
Torkelson
Urdahl
Ward
Welti
����� The bill was passed and its title agreed
to.
����� S. F. No. 2469, A bill for
an act relating to transportation; regulating contracts; prohibiting
indemnification provisions; proposing coding for new law in Minnesota Statutes,
chapter 221.
����� The bill was read for the third time and
placed upon its final passage.
����� The question was taken on the passage of
the bill and the roll was called.� There
were 131 yeas and 0 nays as follows:
����� Those who voted in the affirmative were:
Anderson, B.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Beard
Benson
Bigham
Bly
Brod
Brown
Brynaert
Buesgens
Bunn
Carlson
Champion
Clark
Cornish
Davids
Davnie
Dean
Demmer
Dettmer
Dill
Dittrich
Doepke
Doty
Downey
Drazkowski
Eastlund
Eken
Emmer
Falk
Faust
Fritz
Gardner
Garofalo
Gottwalt
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Hayden
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jackson
Johnson
Juhnke
Kahn
Kalin
Kath
Kiffmeyer
Knuth
Koenen
Kohls
Laine
Lanning
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McFarlane
McNamara
Morgan
Morrow
Mullery
Murdock
Murphy, E.
Murphy, M.
Nelson
Newton
Nornes
Norton
Obermueller
Olin
Otremba
Paymar
Pelowski
Peppin
Persell
Peterson
Poppe
Reinert
Rosenthal
Rukavina
Ruud
Sailer
Sanders
Scalze
Scott
Seifert
Sertich
Severson
Shimanski
Simon
Slawik
Slocum
Smith
Solberg
Sterner
Swails
Thao
Thissen
Tillberry
Torkelson
Urdahl
Wagenius
Ward
Welti
Westrom
Winkler
Zellers
Spk. Kelliher
����� The bill was passed and its title agreed
to.
����� There being no objection, the order of
business reverted to Messages from the Senate.
MESSAGES FROM THE SENATE
����� The following messages were received from
the Senate: