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HF 4057

Minnesota House•Introduced

Summary

HF 4057, which miscellaneous technical corrections to laws and statutes made; erroneous, obsolete, and omitted text and references corrected; and redundant, conflicting, and superseded provisions removed, was introduced in the House on Mar 9, 2026 by Rep. Peggy Scott (R) with 1 co-sponsor. It last saw action on Apr 27, 2026: HF indefinitely postponed.

Record

Text

HF 4057 has 1 co-sponsor.

hf4057/introduced.txt
03/03/26   REVISOR  JSK/BM  26-06400
This Document can be made available  Printed
in alternative formats upon request  State of Minnesota  Page No.    314
  HOUSE OF REPRESENTATIVES
  NINETY-FOURTH SESSION
  H. F. No.  4057
03/09/2026     Authored by Scott and Liebling
  The bill was read for the first time and referred to the Committee on Judiciary Finance and Civil Law
04/07/2026     Adoption of Report: Placed on the General Register
  Read for the Second Time
04/23/2026     Referred to the Chief Clerk for Comparison with S. F. No. 4244
04/27/2026     Postponed Indefinitely
A bill for an act
relating to legislative enactments; making miscellaneous technical corrections to
laws and statutes; correcting erroneous, obsolete, and omitted text and references;
removing redundant, conflicting, and superseded provisions; amending Minnesota
Statutes 2024, sections 3.9215, subdivision 4; 3.9741, subdivision 1; 13.202,
subdivision 11; 13.3806, subdivision 22; 13.461, subdivision 7a; 13.55, subdivision
1; 13.825, subdivision 2; 34.02; 43A.34, subdivision 3; 52.09, subdivision 2;
60D.18, subdivision 5; 62A.318, subdivision 5; 65A.35, subdivision 5; 65B.133,
subdivision 1; 65B.15, subdivision 1; 66A.16, subdivision 2; 80E.13; 115.48,
subdivision 2; 115A.28, subdivision 2; 118A.09, subdivision 3; 120B.234,
subdivision 2; 120B.303, subdivision 1; 121A.15, subdivisions 3b, 11; 121A.425,
subdivision 1; 124D.03, subdivision 3; 124D.094, subdivision 2; 124D.096;
124D.59, subdivision 2; 125A.76, subdivision 2f; 126C.05, subdivision 1; 126C.17,
subdivision 9; 126C.40, subdivision 5; 135A.15, subdivision 1; 136A.031,
subdivision 3; 136A.1241, subdivision 2; 136A.829, subdivision 3; 136A.84,
subdivision 1; 142A.03, subdivision 32; 142A.05; 142A.604, subdivision 2;
142B.01, subdivision 8; 142B.03, subdivisions 1, 2; 142B.05, subdivisions 7, 8;
142B.10, subdivision 1; 142B.12, subdivision 4; 142B.41, subdivision 3; 142D.08,
subdivisions 5, 6; 142D.20, subdivision 2; 142D.32, subdivision 2; 142E.16,
subdivision 2; 142G.22, subdivision 1; 142G.25; 142G.40, subdivision 1; 142G.57,
subdivisions 2, 4; 144E.28, subdivision 8; 145.882, subdivision 5a; 145.8821;
148B.59; 148F.165, subdivision 2; 148F.205, subdivision 5; 148F.2051; 151.72,
subdivision 2; 152.29, subdivision 5; 157.22; 169.223, subdivision 4; 169.99,
subdivision 1; 181.211, subdivision 10; 204B.06, subdivision 9; 211B.04,
subdivision 3; 214.06, subdivision 1a; 216B.16, subdivisions 6b, 6c; 216B.2411,
subdivisions 1, 2; 216B.2425, subdivision 7; 216B.2427, subdivisions 1, 2;
216C.437, subdivision 19; 216I.06, subdivision 2; 240A.03, subdivision 6; 245A.03,
subdivisions 6, 7; 245A.07, subdivision 2a; 245D.03, subdivision 2; 245F.03;
245G.11, subdivision 1; 245G.22, subdivision 6; 253B.02, subdivision 4c; 256.017,
subdivision 2; 256.043, subdivision 1; 256.9657, subdivisions 1a, 3; 256.975,
subdivisions 7d, 9; 256B.04, subdivision 15; 256B.051, subdivision 7; 256B.0624,
subdivision 4; 256B.0658; 256B.0911, subdivision 29; 256B.15, subdivision 1h;
256B.196, subdivision 2; 256B.1973, subdivision 1; 256B.431, subdivision 17d;
256B.69, subdivision 16; 256B.77, subdivisions 4, 5; 256B.85, subdivisions 7b,
20; 256D.01, subdivisions 1, 1e, 2; 256D.02, subdivision 1; 256D.03, subdivision
1; 256D.04; 256D.045; 256D.05, subdivision 8; 256D.06, subdivision 7; 256D.07;
256D.16; 256F.10, subdivisions 6, 7; 256I.04, subdivision 1; 256I.05, subdivision
1c; 256K.10, subdivision 3; 256S.21, subdivision 3; 257.05, subdivision 3;
       03/03/26   REVISOR  JSK/BM  26-06400
257.0755, subdivision 3; 259.41, subdivision 1; 259.83, subdivision 1; 260.67,
subdivision 2; 260C.001, subdivision 1; 260C.4411, subdivision 1; 260C.4412;
260E.17, subdivision 2; 260E.33, subdivision 6a; 260E.35, subdivision 3; 275.011,
subdivisions 1, 2; 290.01, subdivision 19; 290.0132, subdivision 32; 290.095,
subdivision 11; 295.50, subdivision 4; 295.81, subdivision 1; 296A.06, subdivision
1; 297A.9915, subdivision 5; 297I.20, subdivisions 1, 3; 298.75, subdivision 2;
309.531, subdivision 2; 321.1109; 325F.071, subdivision 1; 327B.04, subdivision
8; 332.30; 336.7-209; 336.9-317; 352.01, subdivision 2a; 353D.07, subdivision
5; 353G.18, subdivision 2; 353G.19, subdivision 6; 356.47, subdivision 3; 363A.07,
      subdivision 4; 363A.08, subdivision 4; 424A.05, subdivision 5; 424B.13,
      subdivisions 5, 6; 424B.22, subdivisions 7, 8; 458D.08; 462A.07, subdivision 20;
      469.174, subdivision 10; 473.121, subdivision 5a; 473.164; 473.4057, subdivision
      7; 473.755, subdivision 4; 473J.12, subdivision 2; 473J.13, subdivision 3; 491A.03,
      subdivision 4; 504B.361, subdivision 1; 518.10, subdivision 1; 518.175, subdivision
      6; 518A.40, subdivision 1; 518A.41, subdivision 1; 518A.51; 518A.56, subdivision
      11; 518C.613; 609.232, subdivision 11; 611A.37, subdivision 1; 611A.372;
      624.7192; Minnesota Statutes 2025 Supplement, sections 13.46, subdivisions 2,
      4; 65B.05; 120B.117, subdivision 4; 124F.01, subdivision 2; 136A.054; 142G.01,
      subdivision 3; 148.6404; 148.6408, subdivision 2; 161.14, subdivision 109; 161.45,
      subdivision 4; 168.012, subdivision 1; 168A.01, subdivisions 18, 19, 20; 171.301,
      subdivision 1; 216B.1622, subdivision 2; 245A.04, subdivision 1; 245A.191;
      245C.08, subdivision 1; 253B.10, subdivision 1; 254B.0507, subdivision 2;
      256B.055, subdivision 12; 256B.0615, subdivision 1; 256B.0616, subdivision 1;
      256B.0924, subdivision 6; 256B.0943, subdivision 9; 256B.761, subdivision 2;
      257.0769, subdivision 1; 260.65; 297I.20, subdivision 7; 299C.061, subdivision
      1; 353D.07, subdivision 2; 357.021, subdivision 1a; 423A.022, subdivision 2;
      424A.015, subdivision 4; 473.4465, subdivision 2; 580.07, subdivisions 1, 2; Laws
      2023, chapter 1, section 22, as amended; repealing Minnesota Statutes 2024,
      sections 13.461, subdivision 16a; 137.50, subdivision 5; 142E.50, subdivisions 1,
      4, 7; 256.9756, subdivision 3; 256B.092, subdivision 4b; 256R.50, subdivision 6;
      257E.10, subdivision 11; 272.02, subdivision 31; 273.11, subdivisions 19, 20;
      273.1315, subdivision 1; 273.1385; 289A.60, subdivision 15; 297I.15, subdivision
      2; 383B.1511; 473.551; 473.552; 473.553, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10,
      11, 12, 13; 473.556, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17;
      473.561; 473.564, subdivisions 2, 3; 473.565; 473.572; 473.581; 473.592,
      subdivision 1; 473.595; 473.596; 473.598; 473.599; 473.5995; 473.76; 473.763;
      477A.18; 480.011; 504B.345, subdivision 2; Laws 2024, chapter 79, article 1,
      section 20; Laws 2025, chapter 21, sections 56; 57.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
MISCELLANEOUS
   Section 1. Minnesota Statutes 2024, section 3.9215, subdivision 4, is amended to read:
     Subd. 4. Appropriation. Money appropriated for the ombudsperson for American Indian
 families from the general fund or the special fund authorized by section 256.01, subdivision
 2, paragraph (o) (n), is under the control of the ombudsperson.
       Article 1 Section 1.  2
       03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 2. Minnesota Statutes 2024, section 13.3806, subdivision 22, is amended to read:
      Subd. 22. Medical use of cannabis data. Data collected under the registry program
  authorized under sections 152.22 to 152.37 section 342.52 are governed by sections 152.25,
  subdivision 1; 152.28, subdivision 2; and 152.37, subdivision 3 section 342.59.
    Sec. 3. Minnesota Statutes 2025 Supplement, section 13.46, subdivision 2, is amended to
  read:
      Subd. 2. General. (a) Data on individuals collected, maintained, used, or disseminated
  by the welfare system are private data on individuals, and shall not be disclosed except:
      (1) according to section 13.05;
     (2) according to court order;
     (3) according to a statute specifically authorizing access to the private data;
     (4) to an agent or investigator acting on behalf of a county, the state, or the federal
 government, including a law enforcement person or attorney in the investigation or
 prosecution of a criminal, civil, or administrative proceeding relating to the administration
 of a program;
     (5) to personnel of the welfare system who require the data to verify an individual's
 identity; determine eligibility, amount of assistance, and the need to provide services to an
 individual or family across programs; coordinate services for an individual or family;
 evaluate the effectiveness of programs; assess parental contribution amounts; and investigate
 suspected fraud;
     (6) to administer federal funds or programs;
     (7) between personnel of the welfare system working in the same program;
     (8) to the Department of Revenue to administer and evaluate tax refund or tax credit
 programs and to identify individuals who may benefit from these programs, and prepare
 the databases for reports required under section 270C.13 and Laws 2008, chapter 366, article
 17, section 6. The following information may be disclosed under this paragraph: an
 individual's and their dependent's names, dates of birth, Social Security or individual taxpayer
 identification numbers, income, addresses, and other data as required, upon request by the
 Department of Revenue. Disclosures by the commissioner of revenue to the commissioner
 commissioners of human services and children, youth, and families for the purposes described
 in this clause are governed by section 270B.14, subdivision subdivisions 1 and 24,
 respectively. Tax refund or tax credit programs include, but are not limited to, the dependent
       Article 1 Sec. 3.  3
       03/03/26   REVISOR  JSK/BM  26-06400
  care credit under section 290.067, the Minnesota working family credit under section
  290.0671, the property tax refund under section 290A.04, and the Minnesota education
  credit under section 290.0674;
      (9) between the Department of Human Services; the Department of Employment and
  Economic Development; the Department of Children, Youth, and Families; Direct Care and
  Treatment; and, when applicable, the Department of Education, for the following purposes:
      (i) to monitor the eligibility of the data subject for unemployment benefits, for any
  employment or training program administered, supervised, or certified by that agency;
      (ii) to administer any rehabilitation program or child care assistance program, whether
 alone or in conjunction with the welfare system;
     (iii) to monitor and evaluate the Minnesota family investment program or the child care
 assistance program by exchanging data on recipients and former recipients of Supplemental
 Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 142F, 256D,
 256J, or 256K, child care assistance under chapter 142E, medical programs under chapter
 256B or 256L; and
     (iv) to analyze public assistance employment services and program utilization, cost,
 effectiveness, and outcomes as implemented under the authority established in Title II,
 Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999.
 Health records governed by sections 144.291 to 144.298 and "protected health information"
 as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code
 of Federal Regulations, title 45, parts 160-164, including health care claims utilization
 information, must not be exchanged under this clause;
     (10) to appropriate parties in connection with an emergency if knowledge of the
 information is necessary to protect the health or safety of the individual or other individuals
 or persons;
     (11) data maintained by residential programs as defined in section 245A.02 may be
 disclosed to the protection and advocacy system established in this state according to Part
 C of Public Law 98-527 to protect the legal and human rights of persons with developmental
 disabilities or other related conditions who live in residential facilities for these persons if
 the protection and advocacy system receives a complaint by or on behalf of that person and
 the person does not have a legal guardian or the state or a designee of the state is the legal
 guardian of the person;
       Article 1 Sec. 3.  4
       03/03/26   REVISOR  JSK/BM  26-06400
      (12) to the county medical examiner or the county coroner for identifying or locating
  relatives or friends of a deceased person;
      (13) data on a child support obligor who makes payments to the public agency may be
  disclosed to the Minnesota Office of Higher Education to the extent necessary to determine
  eligibility under section 136A.121, subdivision 2, clause (5);
      (14) participant Social Security or individual taxpayer identification numbers and names
  collected by the telephone assistance program may be disclosed to the Department of
  Revenue to conduct an electronic data match with the property tax refund database to
  determine eligibility under section 237.70, subdivision 4a;
     (15) the current address of a Minnesota family investment program participant may be
 disclosed to law enforcement officers who provide the name of the participant and notify
 the agency that:
     (i) the participant:
     (A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after
 conviction, for a crime or attempt to commit a crime that is a felony under the laws of the
 jurisdiction from which the individual is fleeing; or
     (B) is violating a condition of probation or parole imposed under state or federal law;
     (ii) the location or apprehension of the felon is within the law enforcement officer's
 official duties; and
     (iii) the request is made in writing and in the proper exercise of those duties;
     (16) the current address of a recipient of general assistance may be disclosed to probation
 officers and corrections agents who are supervising the recipient and to law enforcement
 officers who are investigating the recipient in connection with a felony level offense;
     (17) information obtained from a SNAP applicant or recipient households may be
 disclosed to local, state, or federal law enforcement officials, upon their written request, for
 the purpose of investigating an alleged violation of the Food and Nutrition Act, according
 to Code of Federal Regulations, title 7, section 272.1(c);
     (18) the address, Social Security or individual taxpayer identification number, and, if
 available, photograph of any member of a household receiving SNAP benefits shall be made
 available, on request, to a local, state, or federal law enforcement officer if the officer
 furnishes the agency with the name of the member and notifies the agency that:
     (i) the member:
       Article 1 Sec. 3.  5
       03/03/26   REVISOR  JSK/BM  26-06400
(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a
  crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;
(B) is violating a condition of probation or parole imposed under state or federal law;
  or
(C) has information that is necessary for the officer to conduct an official duty related
  to conduct described in subitem (A) or (B);
(ii) locating or apprehending the member is within the officer's official duties; and
(iii) the request is made in writing and in the proper exercise of the officer's official duty;
(19) the current address of a recipient of Minnesota family investment program, general
 assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing,
 provide the name of the recipient and notify the agency that the recipient is a person required
 to register under section 243.166, but is not residing at the address at which the recipient is
 registered under section 243.166;
(20) certain information regarding child support obligors who are in arrears may be
 made public according to section 518A.74;
(21) data on child support payments made by a child support obligor and data on the
 distribution of those payments excluding identifying information on obligees may be
 disclosed to all obligees to whom the obligor owes support, and data on the enforcement
 actions undertaken by the public authority, the status of those actions, and data on the income
 of the obligor or obligee may be disclosed to the other party;
(22) data in the work reporting system may be disclosed under section 142A.29,
 subdivision 7;
(23) to the Department of Education for the purpose of matching Department of Education
 student data with public assistance data to determine students eligible for free and
 reduced-price meals, meal supplements, and free milk according to United States Code,
 title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state
 funds that are distributed based on income of the student's family; and to verify receipt of
 energy assistance for the telephone assistance plan;
(24) the current address and telephone number of program recipients and emergency
 contacts may be released to the commissioner of health or a community health board as
 defined in section 145A.02, subdivision 5, when the commissioner or community health
 board has reason to believe that a program recipient is a disease case, carrier, suspect case,
 or at risk of illness, and the data are necessary to locate the person;
       Article 1 Sec. 3.  6
       03/03/26   REVISOR  JSK/BM  26-06400
      (25) to other state agencies, statewide systems, and political subdivisions of this state,
  including the attorney general, and agencies of other states, interstate information networks,
  federal agencies, and other entities as required by federal regulation or law for the
  administration of the child support enforcement program;
      (26) to personnel of public assistance programs as defined in section 518A.81, for access
  to the child support system database for the purpose of administration, including monitoring
  and evaluation of those public assistance programs;
      (27) to monitor and evaluate the Minnesota family investment program by exchanging
  data between the Departments of Human Services; Children, Youth, and Families; and
 Education, on recipients and former recipients of SNAP benefits, cash assistance under
 chapter 142F, 256D, 256J, or 256K, child care assistance under chapter 142E, medical
 programs under chapter 256B or 256L, or a medical program formerly codified under chapter
 256D;
     (28) to evaluate child support program performance and to identify and prevent fraud
 in the child support program by exchanging data between the Department of Human Services;
 Department of Children, Youth, and Families; Department of Revenue under section 270B.14,
 subdivision 1, paragraphs (a) and (b), without regard to the limitation of use in paragraph
 (c); Department of Health; Department of Employment and Economic Development; and
 other state agencies as is reasonably necessary to perform these functions;
     (29) counties and the Department of Children, Youth, and Families operating child care
 assistance programs under chapter 142E may disseminate data on program participants,
 applicants, and providers to the commissioner of education;
     (30) child support data on the child, the parents, and relatives of the child may be
 disclosed to agencies administering programs under titles IV-B and IV-E of the Social
 Security Act, as authorized by federal law;
     (31) to a health care provider governed by sections 144.291 to 144.298, to the extent
 necessary to coordinate services;
     (32) to the chief administrative officer of a school to coordinate services for a student
 and family; data that may be disclosed under this clause are limited to name, date of birth,
 gender, and address;
     (33) to county correctional agencies to the extent necessary to coordinate services and
 diversion programs; data that may be disclosed under this clause are limited to name, client
 demographics, program, case status, and county worker information; or
       Article 1 Sec. 3.  7
       03/03/26   REVISOR  JSK/BM  26-06400
      (34) between the Department of Human Services and the Metropolitan Council for the
  following purposes:
      (i) to coordinate special transportation service provided under section 473.386 with
  services for people with disabilities and elderly individuals funded by or through the
  Department of Human Services; and
      (ii) to provide for reimbursement of special transportation service provided under section
  473.386.
  The data that may be shared under this clause are limited to the individual's first, last, and
  middle names; date of birth; residential address; and program eligibility status with expiration
 date for the purposes of informing the other party of program eligibility.
     (b) Information on persons who have been treated for substance use disorder may only
 be disclosed according to the requirements of Code of Federal Regulations, title 42, sections
 2.1 to 2.67.
     (c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16),
 (17), or (18), or paragraph (b), are investigative data and are confidential or protected
 nonpublic while the investigation is active. The data are private after the investigation
 becomes inactive under section 13.82, subdivision 7, clause (a) or (b).
     (d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are
 not subject to the access provisions of subdivision 10, paragraph (b).
     For the purposes of this subdivision, a request will be deemed to be made in writing if
 made through a computer interface system.
   Sec. 4. Minnesota Statutes 2025 Supplement, section 13.46, subdivision 4, is amended to
 read:
     Subd. 4. Licensing data. (a) As used in this subdivision:
     (1) "licensing data" are all data collected, maintained, used, or disseminated by the
 welfare system pertaining to persons licensed or registered or who apply for licensure or
 registration or who formerly were licensed or registered under the authority of the
 commissioner of human services or the commissioner of children, youth, and families;
     (2) "client" means a person who is receiving services from a licensee or from an applicant
 for licensure; and
       Article 1 Sec. 4.  8
       03/03/26   REVISOR  JSK/BM  26-06400
      (3) "personal and personal financial data" are Social Security numbers, identity of and
  letters of reference, insurance information, reports from the Bureau of Criminal
  Apprehension, health examination reports, and social/home studies.
      (b)(1)(i) Except as provided in paragraph (c), the following data on applicants, license
  holders, certification holders, and former licensees are public: name, address, telephone
  number of licensees, email addresses except for family child foster care, date of receipt of
  a completed application, dates of licensure, licensed capacity, type of client preferred,
  variances granted, record of training and education in child care and child development,
  type of dwelling, name and relationship of other family members, previous license history,
 class of license, the existence and status of complaints, and the number of serious injuries
 to or deaths of individuals in the licensed program as reported to the commissioner of human
 services; the commissioner of children, youth, and families; the local social services agency;
 or any other county welfare agency. For purposes of this clause, a serious injury is one that
 is treated by a physician.
     (ii) Except as provided in item (v), when a correction order, an order to forfeit a fine,
 an order of license suspension, an order of temporary immediate suspension, an order of
 license revocation, an order of license denial, or an order of conditional license has been
 issued, or a complaint is resolved, the following data on current and former licensees and
 applicants are public: the general nature of the complaint or allegations leading to the
 temporary immediate suspension; the substance and investigative findings of the licensing
 or maltreatment complaint, licensing violation, or substantiated maltreatment; the existence
 of settlement negotiations; the record of informal resolution of a licensing violation; orders
 of hearing; findings of fact; conclusions of law; specifications of the final correction order,
 fine, suspension, temporary immediate suspension, revocation, denial, or conditional license
 contained in the record of licensing action; whether a fine has been paid; and the status of
 any appeal of these actions.
     (iii) When a license denial under section 142A.15 142B.15 or 245A.05 or a sanction
 under section 142B.18 or 245A.07 is based on a determination that a license holder, applicant,
 or controlling individual is responsible for maltreatment under section 626.557 or chapter
 260E, the identity of the applicant, license holder, or controlling individual as the individual
 responsible for maltreatment is public data at the time of the issuance of the license denial
 or sanction.
     (iv) When a license denial under section 142A.15 142B.15 or 245A.05 or a sanction
 under section 142B.18 or 245A.07 is based on a determination that a license holder, applicant,
 or controlling individual is disqualified under chapter 245C, the identity of the license
       Article 1 Sec. 4.  9
03/03/26   REVISOR  JSK/BM  26-06400
  holder, applicant, or controlling individual as the disqualified individual is public data at
  the time of the issuance of the licensing sanction or denial. If the applicant, license holder,
  or controlling individual requests reconsideration of the disqualification and the
  disqualification is affirmed, the reason for the disqualification and the reason to not set aside
  the disqualification are private data.
      (v) A correction order or fine issued to a child care provider for a licensing violation is
  private data on individuals under section 13.02, subdivision 12, or nonpublic data under
  section 13.02, subdivision 9, if the correction order or fine is seven years old or older.
      (2) For applicants who withdraw their application prior to licensure or denial of a license,
 the following data are public: the name of the applicant, the city and county in which the
 applicant was seeking licensure, the dates of the commissioner's receipt of the initial
 application and completed application, the type of license sought, and the date of withdrawal
 of the application.
     (3) For applicants who are denied a license, the following data are public: the name and
 address of the applicant, the city and county in which the applicant was seeking licensure,
 the dates of the commissioner's receipt of the initial application and completed application,
 the type of license sought, the date of denial of the application, the nature of the basis for
 the denial, the existence of settlement negotiations, the record of informal resolution of a
 denial, orders of hearings, findings of fact, conclusions of law, specifications of the final
 order of denial, and the status of any appeal of the denial.
     (4) When maltreatment is substantiated under section 626.557 or chapter 260E and the
 victim and the substantiated perpetrator are affiliated with a program licensed under chapter
 142B or 245A; the commissioner of human services; commissioner of children, youth, and
 families; local social services agency; or county welfare agency may inform the license
 holder where the maltreatment occurred of the identity of the substantiated perpetrator and
 the victim.
     (5) Notwithstanding clause (1), for child foster care, only the name of the license holder
 and the status of the license are public if the county attorney has requested that data otherwise
 classified as public data under clause (1) be considered private data based on the best interests
 of a child in placement in a licensed program.
     (c) The following are private data on individuals under section 13.02, subdivision 12,
 or nonpublic data under section 13.02, subdivision 9: personal and personal financial data
 on family day care program and family foster care program applicants and licensees and
 their family members who provide services under the license.
Article 1 Sec. 4.  10
03/03/26   REVISOR  JSK/BM  26-06400
      (d) The following are private data on individuals: the identity of persons who have made
  reports concerning licensees or applicants that appear in inactive investigative data, and the
  records of clients or employees of the licensee or applicant for licensure whose records are
  received by the licensing agency for purposes of review or in anticipation of a contested
  matter. The names of reporters of complaints or alleged violations of licensing standards
  under chapters 142B, 245A, 245B, 245C, and 245D, and applicable rules and alleged
  maltreatment under section 626.557 and chapter 260E, are confidential data and may be
  disclosed only as provided in section 260E.21, subdivision 4; 260E.35; or 626.557,
  subdivision 12b.
     (e) Data classified as private, confidential, nonpublic, or protected nonpublic under this
 subdivision become public data if submitted to a court or administrative law judge as part
 of a disciplinary proceeding in which there is a public hearing concerning a license which
 has been suspended, immediately suspended, revoked, or denied.
     (f) Data generated in the course of licensing investigations that relate to an alleged
 violation of law are investigative data under subdivision 3.
     (g) Data that are not public data collected, maintained, used, or disseminated under this
 subdivision that relate to or are derived from a report as defined in section 260E.03, or
 626.5572, subdivision 18, are subject to the destruction provisions of sections 260E.35,
 subdivision 6, and 626.557, subdivision 12b.
     (h) Upon request, not public data collected, maintained, used, or disseminated under
 this subdivision that relate to or are derived from a report of substantiated maltreatment as
 defined in section 626.557 or chapter 260E may be exchanged with the Department of
 Health for purposes of completing background studies pursuant to section 144.057 and with
 the Department of Corrections for purposes of completing background studies pursuant to
 section 241.021.
     (i) Data on individuals collected according to licensing activities under chapters 142B,
 245A, and 245C and data on individuals collected by the commissioner of human services
 or the commissioner of children, youth, and families according to investigations under
 section 626.557 and chapters 142B, 245A, 245B, 245C, 245D, and 260E may be shared
 with the Department of Human Rights, the Department of Health, the Department of
 Corrections, the ombudsman for mental health and developmental disabilities, and the
 individual's professional regulatory board and between the commissioners of human services
 and children, youth, and families when there is reason to believe that laws or standards
 under the jurisdiction of those agencies may have been violated or the information may
Article 1 Sec. 4.  11
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  otherwise be relevant to the board's regulatory jurisdiction. Background study data on an
  individual who is the subject of a background study under chapter 245C for a licensed
  service for which the commissioner of human services; the commissioner of children, youth,
  and families; or the Direct Care and Treatment executive board is the license holder may
  be shared with the commissioner and the commissioner's delegate by the licensing division.
  Unless otherwise specified in this chapter, the identity of a reporter of alleged maltreatment
  or licensing violations may not be disclosed.
      (j) In addition to the notice of determinations required under sections 260E.24,
  subdivisions 5 and 7, and 260E.30, subdivision 6, paragraphs (b), (c), (d), (e), and (f), if the
 commissioner of human services; commissioner of children, youth, and families; or the
 local social services agency has determined that an individual is a substantiated perpetrator
 of maltreatment of a child based on sexual abuse, as defined in section 260E.03, and the
 commissioner of human services; commissioner of children, youth, and families; or local
 social services agency knows that the individual is a person responsible for a child's care
 in another facility, the commissioner of human services; commissioner of children, youth,
 and families; or local social services agency shall notify the head of that facility of this
 determination. The notification must include an explanation of the individual's available
 appeal rights and the status of any appeal. If a notice is given under this paragraph, the
 government entity making the notification shall provide a copy of the notice to the individual
 who is the subject of the notice.
     (k) All not public data collected, maintained, used, or disseminated under this subdivision
 and subdivision 3 may be exchanged between the Department of Human Services, Licensing
 Division, and the Department of Corrections for purposes of regulating services for which
 the Department of Human Services and the Department of Corrections have regulatory
 authority.
   Sec. 5. Minnesota Statutes 2024, section 13.461, subdivision 7a, is amended to read:
     Subd. 7a. Background studies. (a) Access to and sharing of data for human services
 background studies under chapter 245C are governed by that chapter.
     (b) Disqualifying records that are the subject of an order for expungement are governed
 by section 245C.22, subdivision 7, paragraph (f) (e).
Article 1 Sec. 5.  12
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    Sec. 6. Minnesota Statutes 2024, section 13.825, subdivision 2, is amended to read:
      Subd. 2. Data classification; court-authorized disclosure. (a) Data collected by a
  portable recording system are private data on individuals or nonpublic data, subject to the
  following:
      (1) data that record, describe, or otherwise document actions and circumstances
  surrounding either the discharge of a firearm by a peace officer in the course of duty, if a
  notice is required under section 626.553, subdivision 2, or the use of force by a peace officer
  that results in substantial bodily harm, as defined in section 609.02, subdivision 7a, are
  public;
     (2) data are public if a subject of the data requests it be made accessible to the public,
 except that, if practicable, (i) data on a subject who is not a peace officer and who does not
 consent to the release must be redacted, and (ii) data on a peace officer whose identity is
 protected under section 13.82, subdivision 17, clause (a), must be redacted;
     (3) subject to paragraphs (b) to (d), portable recording system data that are active criminal
 investigative data are governed by section 13.82, subdivision 7, and portable recording
 system data that are inactive criminal investigative data are governed by this section;
     (4) portable recording system data that are public personnel data under section 13.43,
 subdivision 2, paragraph (a), clause (5), are public; and
     (5) data that are not public data under other provisions of this chapter retain that
 classification.
     (b) Notwithstanding section 13.82, subdivision 7, when an individual dies as a result of
 a use of force by a peace officer, an involved officer's law enforcement agency must allow
 the following individuals, upon their request, to inspect all portable recording system data,
 redacted no more than what is required by law, documenting the incident within five days
 of the request, subject to paragraphs (c) and (d):
     (1) the deceased individual's next of kin;
     (2) the legal representative of the deceased individual's next of kin; and
     (3) the other parent of the deceased individual's child.
     (c) A law enforcement agency may deny a request to inspect portable recording system
 data under paragraph (b) if the agency determines that there is a compelling reason that
 inspection would interfere with an active investigation. If the agency denies access under
 this paragraph, the chief law enforcement officer must provide a prompt, written denial to
Article 1 Sec. 6.  13
03/03/26   REVISOR  JSK/BM  26-06400
  the individual in paragraph (b) who requested the data with a short description of the
  compelling reason access was denied and must provide notice that relief may be sought
  from the district court pursuant to section 13.82, subdivision 7.
      (d) When an individual dies as a result of a use of force by a peace officer, an involved
  officer's law enforcement agency shall release all portable recording system data, redacted
  no more than what is required by law, documenting the incident no later than 14 days after
  the incident, unless the chief law enforcement officer asserts in writing that the public
  classification would interfere with an ongoing investigation, in which case the data remain
  classified by section 13.82, subdivision 7.
     (e) A law enforcement agency may redact or withhold access to portions of data that are
 public under this subdivision if those portions of data are clearly offensive to common
 sensibilities.
     (f) Section 13.04, subdivision 2, does not apply to collection of data classified by this
 subdivision.
     (g) Any person may bring an action in the district court located in the county where
 portable recording system data are being maintained to authorize disclosure of data that are
 private or nonpublic under this section or to challenge a determination under paragraph (e)
 to redact or withhold access to portions of data because the data are clearly offensive to
 common sensibilities. The person bringing the action must give notice of the action to the
 law enforcement agency and subjects of the data, if known. The law enforcement agency
 must give notice to other subjects of the data, if known, who did not receive the notice from
 the person bringing the action. The court may order that all or part of the data be released
 to the public or to the person bringing the action. In making this determination, the court
 shall consider whether the benefit to the person bringing the action or to the public outweighs
 any harm to the public, to the law enforcement agency, or to a subject of the data and, if
 the action is challenging a determination under paragraph (e), whether the data are clearly
 offensive to common sensibilities. The data in dispute must be examined by the court in
 camera. This paragraph does not affect the right of a defendant in a criminal proceeding to
 obtain access to portable recording system data under the Rules of Criminal Procedure.
   Sec. 7. Minnesota Statutes 2024, section 34.02, is amended to read:
     34.02 LICENSES; EXCEPTIONS.
     No person may manufacture, mix, or compound any soft drinks or other nonalcoholic
 beverage, to be sold in bottles, barrels, kegs, jars, coolers, cans, glasses or tumblers, or other
Article 1 Sec. 7.  14
03/03/26   REVISOR  JSK/BM  26-06400
  containers, without first having obtained a license from the commissioner. License fees
  shall be established in accordance with section 28A.05, paragraph (c) 28A.08, subdivision
  3. Sections 34.02 to 34.11 do not apply to beverages manufactured, mixed, or compounded
  in quantities of one quart or less at one time.
    Sec. 8. Minnesota Statutes 2024, section 43A.34, subdivision 3, is amended to read:
      Subd. 3. Correctional personnel exempted. Any employee of the state of Minnesota
  in a covered classification as defined in section 352.91 352.905, who is a member of the
  special retirement program for correctional personnel established pursuant to sections 352.90
  to 352.95, may elect to retire from employment in the covered correctional position upon
 reaching the age of 55 years.
   Sec. 9. Minnesota Statutes 2024, section 52.09, subdivision 2, is amended to read:
     Subd. 2. Particular duties. The directors shall manage the affairs of the credit union
 and shall:
     (1) act on applications for membership. This power may be delegated to a membership
 chair who serves at the pleasure of the board of directors and is subject to its rules. An
 application must contain a certification signed by the membership chair or a member of the
 board showing the basis of membership;
     (2) determine interest rates on loans and on deposits. The interest period on deposits
 may be on a daily, monthly, quarterly, semiannual, or annual basis, and may be paid on all
 deposits whether or not the deposits have been withdrawn during the interest period. Interest
 may be computed on a daily basis;
     (3) fix the amount of the surety bond required of all officers and employees handling
 money;
     (4) declare dividends and transmit to the members recommended amendments to the
 bylaws;
     (5) fill vacancies in the board and in the credit committee until successors are chosen
 and qualify at the next annual meeting;
     (6) limit the number of shares and deposits which may be owned by a member, not to
 exceed ten percent of the outstanding shares and deposits, or $2,000, whichever is larger,
 and the maximum individual loan which can be made with and without security, including
 liability indirectly as a comaker, guarantor, or endorser to ten percent of outstanding shares
 and deposits. The ten percent share and deposit limitation is not applicable to the Minnesota
Article 1 Sec. 9.  15
03/03/26   REVISOR  JSK/BM  26-06400
  corporate credit union, or to credit unions insured by the National Credit Union
  Administration;
      (7) have charge of investments including loans to members. If a credit committee is
  established pursuant to section 52.08 or clause (13), then the credit committee shall have
  charge of loans to members;
      (8) fix the salaries of the treasurer and other employees, which must be on a fixed monthly
  or annual basis, in dollars (not percentage);
      (9) designate the depository institution in which the funds of the credit union will be
  deposited;
     (10) authorize the officers of the credit union to borrow money from any source, as
 provided in section 52.15;
     (11) with the permission of the commissioner of commerce, suspend any member of the
 credit committee or supervisory committee if it deems this action necessary to the proper
 conduct of the credit union, and call the members together to act on the suspension within
 a reasonable time after the suspension. The members at the meeting may, by majority vote
 of those present, sustain the suspension and remove the committee members permanently
 or may reinstate the committee members;
     (12) provide financial assistance to the supervisory committee in carrying out its audit
 responsibilities;
     (13) if the bylaws so provide and no credit committee has been elected pursuant to
 section 52.08, appoint a credit manager or a credit committee of not less than three members;
 and
     (14) to establish different classes of shares.
   Sec. 10. Minnesota Statutes 2024, section 60D.18, subdivision 5, is amended to read:
     Subd. 5. Orders and penalties. (a) If an acquisition violates the standards of this section,
 the commissioner may enter an order:
     (1) requiring an involved insurer to cease and desist from doing business in this state
 with respect to the line or lines of insurance involved in the violation; or
     (2) denying the application of an acquired or acquiring insurer for a license to do business
 in this state.
Article 1 Sec. 10.  16
03/03/26   REVISOR  JSK/BM  26-06400
      (b) The order must not be entered unless there is a hearing, the notice of the hearing is
  issued before the end of the waiting period and not less than 15 days before the hearing,
  and the hearing is concluded and the order is issued no later than 60 days after the end of
  the waiting period. Every order must be accompanied by a written decision of the
  commissioner setting forth findings of fact and conclusions of law.
      (c) An order entered under this paragraph subdivision shall not become final earlier than
  30 days after it is issued, during which time the involved insurer may submit a plan to
  remedy the anticompetitive impact of the acquisition within a reasonable time. Based upon
  the plan or other information, the commissioner shall specify the conditions, if any, under
 the time period during which the aspects of the acquisition causing a violation of the standards
 of this section would be remedied and the order vacated or modified.
     (d) An order pursuant to this subdivision does not apply if the acquisition is not
 consummated.
     (e) Any person who violates a cease and desist order of the commissioner and while the
 order is in effect, may after notice and hearing and upon order of the commissioner, be
 subject at the discretion of the commissioner to any one or more of the following:
     (1) a monetary penalty of not more than $10,000 for every day of violation;
     (2) suspension or revocation of the person's license.
     (f) Any insurer or other person who fails to make any filing required by this section and
 who also fails to demonstrate a good faith effort to comply with the filing requirement, is
 subject to a fine of not more than $50,000.
   Sec. 11. Minnesota Statutes 2024, section 62A.318, subdivision 5, is amended to read:
     Subd. 5. Contents of plan of operation. A Medicare select issuer shall file a proposed
 plan of operation with the commissioner, in a format prescribed by the commissioner. The
 plan of operation shall contain at least the following information:
     (1) evidence that all covered services that are subject to restricted network provisions
 are available and accessible through network providers, including a demonstration that:
     (i) the services can be provided by network providers with reasonable promptness with
 respect to geographic location, hours of operation, and after-hour care. The hours of operation
 and availability of after-hour care shall reflect usual practice in the local area. Geographic
 availability shall reflect the usual travel times within the community;
Article 1 Sec. 11.  17
03/03/26   REVISOR  JSK/BM  26-06400
(ii) the number of network providers in the service area is sufficient, with respect to
  current and expected policyholders, either:
(A) to deliver adequately all services that are subject to a restricted network provision;
  or
(B) to make appropriate referrals;
(iii) there are written agreements with network providers describing specific
  responsibilities;
(iv) emergency care is available 24 hours per day and seven days per week; and
(v) in the case of covered services that are subject to a restricted network provision and
 are provided on a prepaid basis, there are written agreements with network providers
 prohibiting the providers from billing or otherwise seeking reimbursement from or recourse
 against an individual insured under a Medicare select policy or certificate. This section does
 not apply to supplemental charges or coinsurance amounts as stated in the Medicare select
 policy or certificate;
(2) a statement or map providing a clear description of the service area;
(3) a description of the grievance procedure to be used;
(4) a description of the quality assurance program, including:
(i) the formal organizational structure;
(ii) the written criteria for selection, retention, and removal of network providers; and
(iii) the procedures for evaluating quality of care provided by network providers, and
 the process to initiate corrective action when warranted;
(5) a list and description, by specialty, of the network providers;
(6) copies of the written information proposed to be used by the issuer to comply with
 paragraph (i) subdivision 9; and
(7) any other information requested by the commissioner.
   Sec. 12. Minnesota Statutes 2024, section 65A.35, subdivision 5, is amended to read:
Subd. 5. Administration. (1) The Minnesota FAIR plan is administered by a board of
 nine directors, five of whom are elected by the members of the plan and four who represent
 the public. Public directors may include licensed insurance agents. Public directors are
 appointed by the commissioner. No less than two elected directors must be representatives
Article 1 Sec. 12.  18
03/03/26   REVISOR  JSK/BM  26-06400
  of domestic insurers. In the election of directors, each member of the Minnesota FAIR plan
  is allotted votes bearing the same ratio to the total number of votes to be cast as its degree
  of participation in the plan bears to the total participation.
      (2) Any vacancy among the elected directors must be filled by a vote of the other elected
  directors.
      (3) If at any time the members fail to elect the required number of directors to the board,
  or a vacancy remains unfilled for more than 15 days, the commissioner may appoint the
  directors necessary to constitute a full board of directors.
      (4) Vacancies among directors appointed by the commissioner must be filled by
 appointment by the commissioner. A person so appointed serves until the end of the term
 of the director the person is replacing.
     (5) All public directors serve for a period of two years. The terms of all public directors
 begin on July 1 of the year their appointments begin.
     (6) The plan of operation must provide for adequate compensation of public directors.
 A per diem amount and a procedure for reimbursement of expenses incurred in the discharge
 of their duties must be included in the plan. Private directors are not eligible for
 compensation.
     (7) At the option of the board, employees may participate in an insurance plan
 administered by the commissioner of management and budget under chapter 43A, except
 as otherwise provided in section 43A.27, subdivision 2, clause (6) (5).
   Sec. 13. Minnesota Statutes 2025 Supplement, section 65B.05, is amended to read:
     65B.05 POWER OF FACILITY, GOVERNING COMMITTEE.
     (a) The facility is authorized to: (1) issue or cause to be issued insurance policies in the
 name of the Minnesota automobile insurance plan to applicants for the types of insurance
 available under the plan, subject to limits specified in the plan of operation; (2) underwrite
 the insurance and adjust and pay losses with respect to the plan; and (3) retain, hire, or
 appoint an individual or company to perform a function under clause (1) or (2).
     (b) The governing committee shall have the power to direct the operation of the facility
 in all pursuits consistent with the purposes and terms of sections 65B.01 to 65B.12, including
 but not limited to:
     (1) suing and being sued in the name of the facility and assess assessing each member
 in accord with its participation ratio to pay any judgment against the facility as an entity,
Article 1 Sec. 13.  19
03/03/26   REVISOR  JSK/BM  26-06400
  provided, however, that no judgment against the facility shall create any liabilities in one
  or more members disproportionate to their participation ratio or an individual representing
  members on the governing committee;
      (2) delegating ministerial duties, hiring a manager, and contracting for goods and services
  from others;
      (3) assessing members on the basis of participation ratios to cover anticipated costs of
  operation and administration of the facility; and
      (4) imposing limitations on cancellation or nonrenewal by members of insureds covered
  pursuant to placement through the facility in addition to the limitations imposed by chapter
 72A and sections 65B.1311 to 65B.21.
   Sec. 14. Minnesota Statutes 2024, section 65B.133, subdivision 1, is amended to read:
     Subdivision 1. Definitions. For the purposes of this section, the terms defined in this
 section subdivision have the meanings given them.
     (a) "Computed premium" means the rate in effect before the application of a surcharge.
     (b) "Chargeable accident" means an accident which is taken into consideration in applying
 a surcharge.
     (c) "Chargeable traffic violation" means a traffic violation which is taken into
 consideration in applying a surcharge.
     (d) "Policy" means a policy providing private passenger vehicle insurance, as defined
 in section 65B.001, subdivision 2.
     (e) "Surcharge" means any increase in premium for a policy, including the removal of
 an accident-free or claim-free discount, based upon an accident or a traffic violation.
     (f) "Surcharge disclosure statement" means a written statement disclosing the surcharge
 plan of an insurer, the effective date of the surcharge plan, and the name of the insurer, and
 any other information which the commissioner may require to be disclosed to assist insureds
 in comparing surcharge plans among insurers.
     (g) "Surcharge plan" means the conditions under which an insurer applies a surcharge
 including but not limited to: (1) the maximum dollar amount which an insurer pays due to
 an accident without applying a surcharge, (2) accidents which are not chargeable, (3)
 chargeable traffic violations, (4) the length of time that an accident or a traffic violation is
 chargeable, and (5) surcharge rates for the first and each successive accident or traffic
 violation.
Article 1 Sec. 14.  20
03/03/26   REVISOR  JSK/BM  26-06400
(h) "Surcharge rate" means the amount of any surcharge expressed as a percentage of
  the computed premium rate or as a dollar amount surcharge, if a percentage surcharge is
  not used.
    Sec. 15. Minnesota Statutes 2024, section 65B.15, subdivision 1, is amended to read:
Subdivision 1. Grounds and notice. No cancellation or reduction in the limits of liability
  of coverage during the policy period of any policy shall be effective unless notice thereof
  is given and unless based on one or more reasons stated in the policy which shall be limited
  to the following:
1. nonpayment of premium; or
2. the policy was obtained through a material misrepresentation; or
3. any insured made a false or fraudulent claim or knowingly aided or abetted another
 in the presentation of such a claim; or
4. the named insured failed to disclose fully motor vehicle accidents and moving traffic
 violations of the named insured for the preceding 36 months if called for in the written
 application; or
5. the named insured failed to disclose in the written application any requested information
 necessary for the acceptance or proper rating of the risk; or
6. the named insured knowingly failed to give any required written notice of loss or
 notice of lawsuit commenced against the named insured, or, when requested, refused to
 cooperate in the investigation of a claim or defense of a lawsuit; or
7. the named insured or any other operator who either resides in the same household, or
 customarily operates an automobile insured under such policy, unless the other operator is
 identified as a named insured in another policy as an insured:
(a) has, within the 36 months prior to the notice of cancellation, had that person's driver's
 license under suspension or revocation because the person committed a moving traffic
 violation or because the person refused to be tested under section 169A.20, subdivision 1;
 or
(b) is or becomes subject to epilepsy or heart attacks, and such individual does not
 produce a written opinion from a physician testifying to that person's medical ability to
 operate a motor vehicle safely, such opinion to be based upon a reasonable medical
 probability; or
Article 1 Sec. 15.  21
03/03/26   REVISOR  JSK/BM  26-06400
      (c) has an accident record, conviction record (criminal or traffic), physical condition or
  mental condition, any one or all of which are such that the person's operation of an automobile
  might endanger the public safety; or
      (d) has been convicted, or forfeited bail, during the 24 months immediately preceding
  the notice of cancellation for criminal negligence in the use or operation of an automobile,
  or assault arising out of the operation of a motor vehicle, or operating a motor vehicle while
  in an intoxicated condition or while under the influence of drugs; or leaving the scene of
  an accident without stopping to report; or making false statements in an application for a
  driver's license, or theft or unlawful taking of a motor vehicle; or
     (e) has been convicted of, or forfeited bail for, one or more violations within the 18
 months immediately preceding the notice of cancellation, of any law, ordinance, or rule
 which justify a revocation of a driver's license; or
     8. the insured automobile is:
     (a) so mechanically defective that its operation might endanger public safety; or
     (b) used in carrying passengers for hire or compensation, provided however that the use
 of an automobile for a car pool or a private passenger vehicle used by a volunteer driver,
 as defined under section 65B.472, subdivision 1, paragraph (h) (p), shall not be considered
 use of an automobile for hire or compensation; or
     (c) used in the business of transportation of flammables or explosives; or
     (d) an authorized emergency vehicle; or
     (e) subject to an inspection law and has not been inspected or, if inspected, has failed
 to qualify within the period specified under such inspection law; or
     (f) substantially changed in type or condition during the policy period, increasing the
 risk substantially, such as conversion to a commercial type vehicle, a dragster, sports car
 or so as to give clear evidence of a use other than the original use.
   Sec. 16. Minnesota Statutes 2024, section 66A.16, subdivision 2, is amended to read:
     Subd. 2. Mutual casualty companies. (a) Any mutual insurance company which
 establishes and maintains, over and above its liabilities and the reserves required by law of
 a like stock insurance company, a guaranty fund available for the payment of losses and
 expenses at least equal to the capital stock required of a like stock insurance company may
 issue policies of insurance without contingent liability, and when the articles of incorporation
 of any mutual insurance company having this guaranty fund provide, the company may
Article 1 Sec. 16.  22
03/03/26   REVISOR  JSK/BM  26-06400
  transact any and all of the kinds of business as set forth in section 60A.06, subdivision 1,
  clauses (1) to (15), subject to the restrictions and limitations imposed by law on a like stock
  insurance company, and any domestic mutual company having a guaranty fund equal to the
  amount of capital stock required of a like stock insurance company may insure the same
  kinds of property and conduct and carry on its business, subject only to the restrictions and
  limitations applicable to like domestic stock insurance companies.
      (b) Subdivision 1 shall not apply to this guaranty fund except that the guaranty fund of
  the company shall be invested in the same manner as is provided by law for the investment
  of its other funds. Every such company shall in its annual statement show as separate items
 the amount of the guaranty fund and the remaining divisible surplus, and the aggregate of
 these items shall be shown as surplus to policyholders.
     (c) A guaranty fund may be created, in whole or in part, in either or both of the following
 ways:
     (1) where an existing mutual company has a surplus, the members of the company may
 at any regular or special meeting set aside from and out of its surplus such sum as shall be
 fixed by resolution to be transferred to and thereafter constitute, in whole or in part, the
 guaranty fund of the company; or
     (2) by the issuance of guaranty fund certificates, as specified in this subdivision, the
 same to be issued upon the conditions and subject to the rights and obligations specified in
 this subdivision.
     (d) Any such company establishing a guaranty fund, as provided in this subdivision,
 may, subject to the restrictions and limitations imposed by law as to a like stock insurance
 company, amend its articles to provide for the doing by it of one or more of the kinds of
 insurance business specified in section 60A.06, subdivision 1, clauses (1) to (15).
     (e) The policy liability of any such mutual company issuing policies without a contingent
 liability shall, as to these policies, be computed upon the same basis as is applicable to like
 policies issued by stock insurance companies. Where any such company shall issue five-year
 term policies, wherein the premiums shall be payable in annual or biennial installments and
 no premium note is taken by the company as payment of the full term premium, the company
 then shall be required to maintain a reserve fund on only the portion of premiums actually
 collected from time to time under these term policies and no company so creating a guaranty
 fund shall issue policies without a contingent liability after the guaranty fund shall be
 impaired or reduced below the capital required of a like stock insurance company doing the
Article 1 Sec. 16.  23
03/03/26   REVISOR  JSK/BM  26-06400
  same kind or kinds of insurance. Any company having a guaranty fund may insure, without
  a contingent liability, any kind or class of property which a like stock company may insure.
      (f) Any director, officer, or member of any mutual insurance company, or any other
  person, may advance to the company any sum of money necessary for the purposes of its
  business or to enable it to comply with any of the requirements of the law, including the
  creation, in whole or in part, of a guaranty fund to enable it to do one or more of the kinds
  of business specified in this subdivision, and for the creation by a company issuing policies
  with a contingent liability of a guaranty fund, in such amount as the board of directors shall
  determine, for the protection of policyholders of the company, and the moneys, together
 with the interest thereon as may have been agreed upon, not exceeding ten percent per
 annum, shall be repaid only out of the surplus remaining after providing for all reserves, if
 any, and other liability, and which shall not otherwise be a liability or claim against the
 company or any of its assets. No commission or promotion expenses shall be paid in
 connection with the advance of any money to the company, and the amount of the advance
 remaining unpaid shall be reported in each annual statement.
     (g) The company shall issue to each person advancing money for the creation of a
 guaranty fund a certificate or certificates specifying the amount advanced. These certificates
 may be assigned by the holder and the transfer recorded upon the books of the company.
 The holders of the guaranty fund certificates shall be entitled to annual interest thereon at
 the rate agreed upon, if the net profits of the company, after all losses, expenses, liabilities,
 and legal reserves, if any, have been paid or provided for, are sufficient to pay the same. If
 the net profits of the company in any year are insufficient to pay the full amount of interest
 agreed upon, the difference may be paid in any subsequent year from the net profits of the
 subsequent years, if approval of the commissioner is obtained before accrual for or payment
 of the interest.
     (h) The guaranty fund shall be applied to the payment of losses and expenses when
 necessary and, if the guaranty fund be impaired, the directors may make good the whole or
 any part of the impairment from future net profits of the company or by the issue and sale
 of additional guaranty fund certificates, but no interest shall be paid on the guaranty fund
 certificates while the guaranty fund is impaired. No certificate shall be issued except for
 money actually paid to the company, which amount shall be plainly and legibly stated
 therein. The company shall issue certificates only in sums of $10, or multiples thereof; it
 shall keep a record of the name and address of the person to whom issued and of all
 assignments thereof. Upon surrender of a certificate duly assigned in writing, the company
 shall cancel the same and issue a new certificate to the assignee.
Article 1 Sec. 16.  24
03/03/26   REVISOR  JSK/BM  26-06400
      (i) Each certificate holder of record shall be entitled to one vote in person or by proxy
  at any meeting of the members of the company, for each $10 investment in the guaranty
  fund certificates.
      (j) The guaranty fund may be reduced or retired by vote of the board of directors of the
  company and the assent of the commissioner, if the net assets of the company, above its
  legal reserves, if any, and all other claims and obligations are sufficient therefor. The
  certificate holders shall be entitled to choose and elect from among their own members or
  from among the policyholders at least one-half of the total number of directors.
      (k) In case the members of any company by resolution adopted at any regular meeting
 or special meeting called for that purpose shall determine to wind up and liquidate the
 business of any such company, the assets thereof shall be applied (1) to the payment of the
 expense of the liquidation; (2) to the payment of any accrued liability, including losses, if
 any; (3) to the payment of any unearned premiums on policies in force at the time of the
 liquidation; (4) to the payment of guaranty fund certificates, if any, together with accrued
 interest thereon, if any; and (5) the residue shall be distributed according to the provisions
 of chapter 60B.
   Sec. 17. Minnesota Statutes 2024, section 80E.13, is amended to read:
     80E.13 UNFAIR PRACTICES BY MANUFACTURERS, DISTRIBUTORS,
 FACTORY BRANCHES.
     It is unlawful and an unfair practice for a manufacturer, distributor, or factory branch
 to engage in any of the following practices directly or through an entity that it controls or
 is controlled by:
     (a) (1) delay, refuse, or fail to deliver new motor vehicles or new motor vehicle parts or
 accessories in reasonable time and in reasonable quantity relative to the new motor vehicle
 dealer's facilities and sales potential in the dealer's relevant market area, after having accepted
 an order from a new motor vehicle dealer having a franchise for the retail sale of any new
 motor vehicle sold or distributed by the manufacturer or distributor, if the new motor vehicle
 or new motor vehicle parts or accessories are publicly advertised as being available for
 delivery or actually being delivered. This clause is not violated, however, if the failure is
 caused by acts or causes beyond the control of the manufacturer;
     (b) (2) refuse to disclose to any new motor vehicle dealer handling the same line make,
 the manner and mode of distribution of that line make within the relevant market area;
Article 1 Sec. 17.  25
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      (c) (3) obtain money, goods, service, or any other benefit from any other person with
  whom the dealer does business, on account of, or in relation to, the transaction between the
  dealer and the other person, other than for compensation for services rendered, unless the
  benefit is promptly accounted for, and transmitted to, the new motor vehicle dealer;
      (d) (4) increase prices of new motor vehicles which the new motor vehicle dealer had
  ordered for private retail consumers prior to the dealer's receiving the written official price
  increase notification. A sales contract signed by a private retail consumer shall constitute
  evidence of each order if the vehicle is in fact delivered to that customer. In the event of
  manufacturer price reductions, the amount of any reduction received by a dealer shall be
 passed on to the private retail consumer by the dealer if the retail price was negotiated on
 the basis of the previous higher price to the dealer;
     (e) (5) offer any refunds or other types of inducements to any new motor vehicle dealer
 for the purchase of new motor vehicles of a certain line make without making the same
 offer to all other new motor vehicle dealers in the same line make within geographic areas
 reasonably determined by the manufacturer;
     (f) (6) release to any outside party, except under subpoena or in an administrative or
 judicial proceeding involving the manufacturer or dealer, any business, financial, or personal
 information which may be provided by the dealer to the manufacturer, without the express
 written consent of the dealer or unless pertinent to judicial or governmental administrative
 proceedings or to arbitration proceedings of any kind;
     (g) (7) deny any new motor vehicle dealer the right of free association with any other
 new motor vehicle dealer for any lawful purpose;
     (h) (8) unfairly discriminate among its new motor vehicle dealers with respect to warranty
 reimbursement or authority granted its new vehicle dealers to make warranty adjustments
 with retail customers;
     (i) (9) compete with a new motor vehicle dealer in the same line make operating under
 an agreement or franchise from the same manufacturer, distributor, or factory branch. A
 manufacturer, distributor, or factory branch is considered to be competing when it has an
 ownership interest, other than a passive interest held for investment purposes, in a dealership
 of its line make in this state, or in a dealership of a competing line make in this state. A
 manufacturer, distributor, or factory branch shall not, however, be deemed to be competing
 when operating a dealership, either temporarily or for a reasonable period, which is for sale
 to any qualified independent person at a fair and reasonable price, or when involved in a
 bona fide relationship in which an independent person has made a significant investment
Article 1 Sec. 17.  26
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  subject to loss in the dealership and can reasonably expect to acquire full ownership and
  full management and operational control of the dealership within a reasonable time on
  reasonable terms and conditions;
      (j) (10) prevent a new motor vehicle dealer from transferring or assigning a new motor
  vehicle dealership to a qualified transferee. There shall be no transfer, assignment of the
  franchise, or major change in the executive management of the dealership, except as is
  otherwise provided in sections 80E.01 to 80E.17, without consent of the manufacturer,
  which shall not be withheld without good cause. In determining whether good cause exists
  for withholding consent to a transfer or assignment, the manufacturer, distributor, factory
 branch, or importer has the burden of proving that the transferee is a person who is not of
 good moral character or does not meet the franchisor's existing and reasonable capital
 standards and, considering the volume of sales and service of the new motor vehicle dealer,
 reasonable business experience standards in the market area. Denial of the request must be
 in writing and delivered to the new motor vehicle dealer within 60 days after the manufacturer
 receives the completed application customarily used by the manufacturer, distributor, factory
 branch, or importer for dealer appointments. If a denial is not sent within this period, the
 manufacturer shall be deemed to have given its consent to the proposed transfer or change.
 In the event of a proposed sale or transfer of a franchise, the manufacturer, distributor,
 factory branch, or importer shall be permitted to exercise a right of first refusal to acquire
 the franchisee's assets or ownership if:
     (1) (i) the franchise agreement permits the manufacturer, distributor, factory branch, or
 importer to exercise a right of first refusal to acquire the franchisee's assets or ownership
 in the event of a proposed sale or transfer;
     (2) (ii) the proposed transfer of the dealership or its assets is of more than 50 percent of
 the ownership or assets;
     (3) (iii) the manufacturer, distributor, factory branch, or importer notifies the dealer in
 writing within 60 days of its receipt of the complete written proposal for the proposed sale
 or transfer on forms generally utilized by the manufacturer, distributor, factory branch, or
 importer for such purposes and containing the information required therein and all documents
 and agreements relating to the proposed sale or transfer;
     (4) (iv) the exercise of the right of first refusal will result in the dealer and dealer's owners
 receiving the same or greater consideration with equivalent terms of sale as is provided in
 the documents and agreements submitted to the manufacturer, distributor, factory branch,
 or importer under clause (3) item (iii);
Article 1 Sec. 17.  27
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      (5) (v) the proposed change of 50 percent or more of the ownership or of the dealership
  assets does not involve the transfer or sale of assets or the transfer or issuance of stock by
  the dealer or one or more dealer owners to a family member, including a spouse, child,
  stepchild, grandchild, spouse of a child or grandchild, brother, sister, or parent of the dealer
  owner; to a manager who has been employed in the dealership for at least four years and is
  otherwise qualified as a dealer operator; or to a partnership or corporation owned and
  controlled by one or more of such persons; and
      (6) (vi) the manufacturer, distributor, factory branch, or importer agrees to pay the
  reasonable expenses, including reasonable attorney fees, which do not exceed the usual
 customary and reasonable fees charged for similar work done for other clients incurred by
 the proposed new owner and transferee before the manufacturer, distributor, factory branch,
 or importer exercises its right of first refusal, in negotiating and implementing the contract
 for the proposed change of ownership or transfer of dealership assets. However, payment
 of such expenses and attorney fees shall not be required if the dealer has not submitted or
 caused to be submitted an accounting of those expenses within 20 days after the dealer's
 receipt of the manufacturer, distributor, factory branch, or importer's written request for
 such an accounting. The manufacturer, distributor, factory branch, or importer may request
 such an accounting before exercising its right of first refusal. The obligation created under
 this clause item is enforceable by the transferee;
     (k) (11) threaten to modify or replace or modify or replace a franchise with a succeeding
 franchise that would adversely alter the rights or obligations of a new motor vehicle dealer
 under an existing franchise or that substantially impairs the sales or service obligations or
 investments of the motor vehicle dealer;
     (l) (12) unreasonably deny the right to acquire factory program vehicles to any dealer
 holding a valid franchise from the manufacturer to sell the same line make of vehicles,
 provided that the manufacturer may impose reasonable restrictions and limitations on the
 purchase or resale of program vehicles to be applied equitably to all of its franchised dealers.
 For the purposes of this paragraph clause, "factory program vehicle" has the meaning given
 the term in section 80E.06, subdivision 2;
     (m) (13) except as provided in paragraph (n) clause (14), fail or refuse to offer to its
 same line make franchised dealers all models manufactured for that line make, including
 alternative fuel vehicles as defined in section 216C.01, subdivision 1b. Failure to offer a
 model is not a violation of this section if the failure is not arbitrary and is due to a lack of
 manufacturing capacity, a strike, labor difficulty, or other cause over which the manufacturer,
 distributor, or factory branch has no control;
Article 1 Sec. 17.  28
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      (n) (14) require a dealer to pay an extra fee, or remodel, renovate, or recondition the
  dealer's existing facilities, or purchase unreasonable advertising displays, training, tools, or
  other materials, or to require the dealer to establish exclusive facilities or dedicated personnel
  as a prerequisite to receiving a model or a series of vehicles. A manufacturer, distributor,
  or factory branch may require a dealer to comply with reasonable requirements for the sale
  and service of an alternative fuel vehicle or to serve an alternative fuel vehicle customer;
      (o) (15) require a dealer by program, incentive provision, or otherwise to adhere to
  performance standards that are not applied uniformly to other similarly situated dealers.
  A performance standard, sales objective, or program for measuring dealership performance
 that may have a material effect on a dealer, including the dealer's right to payment under
 any incentive or reimbursement program, and the application of the standard or program
 by a manufacturer, distributor, or factory branch must be fair, reasonable, equitable, and
 based on accurate information. Upon written request by any of its franchised dealers located
 within Minnesota, a manufacturer, distributor, or factory branch must provide the method
 or formula used by the manufacturer in establishing the sales volumes for receiving a rebate
 or incentive and the specific calculations for determining the required sales volumes of the
 inquiring dealer and any of the manufacturer's other Minnesota-franchised new motor vehicle
 dealers of the same line-make located within 75 miles of the inquiring dealer. Nothing
 contained in this section requires a manufacturer, distributor, or factory branch to disclose
 confidential business information of any of its franchised dealers or the required numerical
 sales volumes that any of its franchised dealers must attain to receive a rebate or incentive.
 An inquiring dealer may file a civil action as provided in section 80E.17 without a showing
 of injury if a manufacturer, distributor, or factory branch fails to make the disclosure required
 by this section.
 A manufacturer, distributor, or factory branch has the burden of proving that the performance
 standard, sales objective, or program for measuring dealership performance is fair, reasonable,
 and uniformly applied under this section;
     (p) (16) assign or change a dealer's area of sales effectiveness arbitrarily or without due
 regard to the present pattern of motor vehicle sales and registrations within the dealer's
 market. The manufacturer, distributor, or factory branch must provide at least 90 days' notice
 of the proposed change. The change may not take effect if the dealer commences a civil
 action within the 90 days' notice period to determine whether the manufacturer, distributor,
 or factory branch met its obligations under this section. The burden of proof in such an
 action shall be on the manufacturer or distributor. In determining at the evidentiary hearing
 whether a manufacturer, distributor, or factory branch has assigned or changed the dealer's
Article 1 Sec. 17.  29
03/03/26   REVISOR  JSK/BM  26-06400
  area of sales effectiveness or is proposing to assign or change the dealer's area of sales
  effectiveness arbitrarily or without due regard to the present pattern of motor vehicle sales
  and registrations within the dealer's market, the court may take into consideration the relevant
  circumstances, including, but not limited to:
      (1) (i) the traffic patterns between consumers and the same line-make franchised dealers
  of the affected manufacturer, distributor, or factory branch who are located within the
  market;
      (2) (ii) the pattern of new vehicle sales and registrations of the affected manufacturer,
  distributor, or factory branch within various portions of the area of sales effectiveness and
 within the market as a whole;
     (3) (iii) the growth or decline in population, density of population, and new car
 registrations in the market;
     (4) (iv) the presence or absence of natural geographical obstacles or boundaries, such
 as rivers;
     (5) (v) the proximity of census tracts or other geographic units used by the affected
 manufacturer, factory branch, distributor, or distributor branch in determining the same
 line-make dealers' respective areas of sales effectiveness; and
     (6) (vi) the reasonableness of the change or proposed change to the dealer's area of sales
 effectiveness, considering the benefits and harm to the petitioning dealer, other same
 line-make dealers, and the manufacturer, distributor, or factory branch;
     (q) (17) to charge back, withhold payment, deny vehicle allocation, or take any other
 adverse action against a dealer when a new vehicle sold by the dealer has been exported to
 a foreign country, unless the manufacturer, distributor, or factory branch can show that at
 the time of sale, the customer's information was listed on a known or suspected exporter
 list made available to the dealer, or the dealer knew or reasonably should have known of
 the purchaser's intention to export or resell the motor vehicle in violation of the
 manufacturer's export policy. There is a rebuttable presumption that the dealer did not know
 or should not have reasonably known that the vehicle would be exported or resold in violation
 of the manufacturer's export policy if the vehicle is titled and registered in any state of the
 United States; or
     (r) to implement a charge back or withhold payment to a dealer that is solely due to an
 unreasonable delay by the registrar, as defined in section 168.002, subdivision 29, in the
 transfer or registration of a new motor vehicle. The dealer must give the manufacturer notice
Article 1 Sec. 17.  30
03/03/26   REVISOR  JSK/BM  26-06400
  of the state's delay in writing. Within 30 days of any notice of a charge back, withholding
  of payments, or denial of a claim, the dealer must transmit to the manufacturer: (1)
  documentation to demonstrate the vehicle sale and delivery as reported; and (2) a written
  attestation signed by the dealer operator or general manager stating that the delay is
  attributable to the state. This clause expires on June 30, 2022; or
      (s) (18) to require a dealer or prospective dealer by program, incentive provision, or
  otherwise to construct improvements to its or a predecessor's facilities or to install new signs
  or other franchisor image elements that replace or substantially alter improvements, signs,
  or franchisor image elements completed within the preceding ten years that were required
 and approved by the manufacturer, distributor, or factory branch, including any such
 improvements, signs, or franchisor image elements that were required as a condition of the
 dealer or predecessor dealer receiving an incentive or other compensation from the
 manufacturer, distributor, or factory branch.
 This paragraph shall clause does not apply to a program or agreement that provides lump
 sum payments to assist dealers in making facility improvements or to pay for signs or
 franchisor image elements when such payments are not dependent on the dealer selling or
 purchasing specific numbers of new vehicles and shall not apply to a program that is in
 effect with more than one Minnesota dealer on August 1, 2018, nor to any renewal of such
 program, nor to a modification that is not a substantial modification of a material term or
 condition of such program.
   Sec. 18. Minnesota Statutes 2024, section 115.48, subdivision 2, is amended to read:
     Subd. 2. Powers vested. Upon the assumption of powers as provided in subdivision 1,
 all the powers of the municipality and its governing or managing body and officers with
 respect to the subject matter of the order shall thereby be forthwith transferred to and vested
 in the agency and the commissioner, and they shall thereafter exercise the same in the name
 of the municipality or its governing or managing body or officers, as the case may require,
 until terminated as hereinafter provided. Such powers shall include, without limitation, the
 power to levy taxes, to certify such taxes for collection, to levy assessments on benefited
 property, to prescribe service or use charges, to borrow money, to issue bonds, to employ
 necessary assistance, to acquire necessary real or personal property, to let contracts or
 otherwise provide for the doing of work or the construction, installation, maintenance, or
 operation of facilities, and to do and perform for the municipality or its governing or
 managing body or officers all other acts and things required to effectuate, carry out, and
 accomplish the purposes of the order and which might have been done or performed by the
Article 1 Sec. 18.  31
03/03/26   REVISOR  JSK/BM  26-06400
  municipality or its governing or managing body or officers. The exercise of any and all such
  powers by the agency and the commissioner shall have like force and effect as if the same
  had been exercised by the municipality or by its governing or managing body or officers.
  All such acts or things done or performed by the agency or the commissioner shall be prima
  facie lawful and valid, and it shall be presumed that all requirements of law or charter
  relating thereto have been complied with. Any bond pursuant to this section in the hands
  of a holder in good faith and for value reciting that such bond is issued for the purposes of
  a disposal system, or part thereof, pursuant to the order of the agency under this section
  shall be conclusively deemed to have been issued for such purpose and in compliance with
 all requirements of law relating thereto and shall be a valid and binding instrument
 enforceable against the municipality in accordance with its terms. The impact on a
 municipality of taxes or special assessments which are likely to result from compliance with
 an order made under section 115.43, subdivision 3, clause (1) 115.03, subdivision 1,
 paragraph (a), clause (5), item (ii), weighed against the urgency of the need for compliance
 in the light of public health and the policy and purposes of sections 115.41 to 115.53 shall
 be a relevant consideration in any judicial inquiry into the reasonableness of the order.
   Sec. 19. Minnesota Statutes 2024, section 115A.28, subdivision 2, is amended to read:
     Subd. 2. Decision paramount. The agency's decision shall be final and shall supersede
 and preempt requirements of state agencies and political subdivisions and the requirements
 of sections 473H.02 to 473H.17; except that a facility established pursuant to the decision
 shall be subject to terms, conditions, and requirements in permits of state or federal permitting
 agencies, the terms of lease determined by the agency under Minnesota Statutes 1994,
 section 115A.06, subdivision 4, and any requirements imposed pursuant to subdivision 3.
 Except as otherwise provided in this section, no charter provision, ordinance, rule, permit,
 or other requirement of any state agency or political subdivision shall prevent or restrict the
 establishment, operation, expansion, continuance, or closure of a facility in accordance with
 the final decision and leases of the agency and permits issued by state or federal permitting
 agencies.
   Sec. 20. Minnesota Statutes 2024, section 118A.09, subdivision 3, is amended to read:
     Subd. 3. Funds. (a) Qualifying governments may only invest under subdivision 2
 according to the limitations in this subdivision. A qualifying government under subdivision
 1, paragraph (a), clause (1) or (2), may only invest its funds that are held for long-term
 capital plans authorized by the city council or county board, or long-term obligations of the
 qualifying government. Long-term obligations of the qualifying government include
Article 1 Sec. 20.  32
03/03/26   REVISOR  JSK/BM  26-06400
  long-term capital plan reserves, funds held to offset long-term environmental exposure,
  other postemployment benefit liabilities, compensated absences, and other long-term
  obligations established by applicable accounting standards.
      (b) Qualifying governments under subdivision 1, paragraph (a), clause (1) or (2), may
  invest up to 15 percent of the sum of:
      (1) unassigned cash;
      (2) cash equivalents;
      (3) deposits; and
      (4) investments.
     (c) The calculation in paragraph (b) must be based on the qualifying government's most
 recent audited statement of net position, which must be compliant and audited pursuant to
 governmental accounting and auditing standards. Once the amount invested reaches 15
 percent of the sum of unassigned cash, cash equivalents, deposits, and investments, no
 further funds may be invested under this section; however, a qualifying government may
 continue to manage the funds previously invested under this section even if the total amount
 subsequently exceeds 15 percent of the sum of unassigned cash, cash equivalents, deposits,
 and investments.
   Sec. 21. Minnesota Statutes 2025 Supplement, section 120B.117, subdivision 4, is amended
 to read:
     Subd. 4. Reporting. The Department of Education must collaborate with the Professional
 Educator Licensing and Standards Board and the Office of Higher Education to publish a
 summary report of each of the programs they administer and any other programs receiving
 state appropriations that have or include an explicit purpose of increasing the racial and
 ethnic diversity of the state's teacher workforce to more closely reflect the diversity of
 students. The report must include programs under sections 122A.59, 122A.63, 122A.635,
 122A.70, 122A.73, 124D.09, 124D.861, 136A.1274, and 136A.1276, and 136A.1791, along
 with any other programs or initiatives that receive state appropriations to address the shortage
 of teachers of color and American Indian teachers. The commissioner must, in coordination
 with the Professional Educator Licensing and Standards Board and the Office of Higher
 Education, provide policy and funding recommendations related to state-funded programs
 to increase the recruitment, preparation, licensing, hiring, and retention of racially and
 ethnically diverse teachers and the state's progress toward meeting or exceeding the goals
 of this section. The report must include recommendations for state policy and funding needed
Article 1 Sec. 21.  33
03/03/26   REVISOR  JSK/BM  26-06400
  to achieve the goals of this section, plans for sharing the report and activities of grant
  recipients, and opportunities among grant recipients of various programs to share effective
  practices with each other. The initial report must also include a recommendation of whether
  a state advisory council should be established to address the shortage of racially and ethnically
  diverse teachers and what the composition and charge of such an advisory council would
  be if established. The commissioner must consult with the Indian Affairs Council and other
  ethnic councils along with other community partners, including students of color and
  American Indian students, in developing the report. The commissioner must submit the
  report to the chairs and ranking minority members of the legislative committees with
 jurisdiction over education and higher education policy and finance by November 3, 2025,
 for the initial report, and by November 3 each even-numbered year thereafter. The report
 must be available to the public on the commissioner's website.
   Sec. 22. Minnesota Statutes 2024, section 120B.234, subdivision 2, is amended to read:
     Subd. 2. Curriculum. School districts may consult with other federal, state, or local
 agencies and community-based organizations, including the Child Welfare Information
 Gateway website maintained by the United States Department of Health and Human Services,
 to identify research-based tools, curricula, and programs to prevent child sexual abuse for
 use under section 120B.021, subdivision 1, paragraph (d) (c).
   Sec. 23. Minnesota Statutes 2024, section 120B.303, subdivision 1, is amended to read:
     Subdivision 1. Graduation requirements. For students enrolled in grade 8 in the
 2012-2013 school year and later, students' state graduation requirements, based on a
 longitudinal, systematic approach to student education and career planning, assessment,
 instructional support, and evaluation, include the following:
     (1) achievement and career and college readiness in mathematics, reading, and writing,
 consistent with paragraph (k) section 120B.307, subdivision 4, paragraph (d), and to the
 extent available, to monitor students' continuous development of and growth in requisite
 knowledge and skills; analyze students' progress and performance levels, identifying students'
 academic strengths and diagnosing areas where students require curriculum or instructional
 adjustments, targeted interventions, or remediation; and, based on analysis of students'
 progress and performance data, determine students' learning and instructional needs and
 the instructional tools and best practices that support academic rigor for the student; and
     (2) consistent with this paragraph and section 120B.125, age-appropriate exploration
 and planning activities and career assessments to encourage students to identify personally
Article 1 Sec. 23.  34
03/03/26   REVISOR  JSK/BM  26-06400
  relevant career interests and aptitudes and help students and their families develop a regularly
  reexamined transition plan for postsecondary education or employment without need for
  postsecondary remediation.
  Based on appropriate state guidelines, students with an individualized education program
  may satisfy state graduation requirements by achieving an individual score on the
  state-identified alternative assessments.
    Sec. 24. Minnesota Statutes 2024, section 121A.15, subdivision 3b, is amended to read:
      Subd. 3b. Child care programs. A child care center licensed under chapter 245A 142B
  and Minnesota Rules, chapter 9503, and a family child care provider licensed under chapter
 245A 142B and Minnesota Rules, chapter 9502, may adopt a policy prohibiting a child over
 two months of age from enrolling or remaining enrolled in the child care center or family
 child care program if the child:
     (1) has not been immunized in accordance with subdivision 1 or 2 and in accordance
 with Minnesota Rules, chapter 4604; and
     (2) is not exempt from immunizations under subdivision 3, paragraph (a), (c), (e), or (f).
   Sec. 25. Minnesota Statutes 2024, section 121A.15, subdivision 11, is amended to read:
     Subd. 11. Commissioner of children, youth, and families; continued
 responsibilities. Nothing in this section relieves the commissioner of children, youth, and
 families of the responsibility, under chapter 245A 142B, to inspect and assure that statements
 required by this section are on file at child care programs subject to licensure.
   Sec. 26. Minnesota Statutes 2024, section 121A.425, subdivision 1, is amended to read:
     Subdivision 1. Disciplinary dismissals prohibited. (a) A pupil enrolled in the following
 is not subject to dismissals under this chapter:
     (1) a preschool or prekindergarten program, including an early childhood family
 education, school readiness, school readiness plus, voluntary prekindergarten, Head Start,
 or other school-based preschool or prekindergarten program; or
     (2) kindergarten through grade 3.
     (b) This provision does not apply to a dismissal from school for less than one school
 day, except as provided under chapter 125A and federal law for a student receiving special
 education services.
Article 1 Sec. 26.  35
03/03/26   REVISOR  JSK/BM  26-06400
      (c) Notwithstanding this subdivision, expulsions and exclusions may be used only after
  resources outlined in subdivision 2 have been exhausted, and only in circumstances where
  there is an ongoing serious safety threat to the child or others.
    Sec. 27. Minnesota Statutes 2024, section 124D.03, subdivision 3, is amended to read:
      Subd. 3. Pupil application procedures. (a) In order that a pupil may attend a school or
  program in a nonresident district, the pupil's parent or guardian must submit an application
  to the nonresident district. The pupil's application must identify a reason for enrolling in
  the nonresident district. The parent or guardian of a pupil must submit a signed application
  by January 15 for initial enrollment beginning the following school year. The application
 must be on a form provided by the Department of Education. A particular school or program
 may be requested by the parent. Once enrolled in a nonresident district, the pupil may remain
 enrolled and is not required to submit annual or periodic applications. If the student moves
 to a new resident district, the student retains the seat in the nonresident district, but must
 submit a new enrollment options form to update the student's information. To return to the
 resident district or to transfer to a different nonresident district, the parent or guardian of
 the pupil must provide notice to the resident district or apply to a different nonresident
 district by January 15 for enrollment beginning the following school year.
     (b) A school district may require a nonresident student enrolled in a program under
 section 125A.13, or in a preschool program, except for a program under section 142D.07
 or 142D.08, to follow the application procedures under this subdivision to enroll in
 kindergarten. A district must allow a nonresident student enrolled in a program under section
 142D.07 or 142D.08 to remain enrolled in the district when the student enters kindergarten
 without submitting annual or periodic applications, unless the district terminates the student's
 enrollment under subdivision 12.
   Sec. 28. Minnesota Statutes 2024, section 124D.094, subdivision 2, is amended to read:
     Subd. 2. Digital instruction. (a) An enrolling district may provide digital instruction,
 including blended instruction and online instruction, to the district's own enrolled students.
 Enrolling districts may establish agreements to provide digital instruction, including blended
 instruction and online instruction, to students enrolled in the cooperating schools.
     (b) When online instruction is provided, an online teacher as defined under subdivision
 1, paragraph (h), shall perform all duties of teacher of record under Minnesota Rules, part
 8710.0310. Unless the commissioner grants a waiver, a teacher providing online instruction
 shall not instruct more than 40 students in any one online learning course or section.
Article 1 Sec. 28.  36
03/03/26   REVISOR  JSK/BM  26-06400
      (c) Students receiving online instruction full time shall be reported as enrolled in an
  online instructional site under subdivision 1, paragraph (g).
      (d) Curriculum used for digital instruction shall be aligned with Minnesota's current
  academic standards and benchmarks.
      (e) Digital instruction shall be accessible to students under sections 504 and 508 of the
  federal Rehabilitation Act and Title II of the federal Americans with Disabilities Act.
      (f) An enrolling district providing digital instruction and a supplemental online course
  provider shall assist an enrolled student whose family qualifies for the education tax credit
  under section 290.0674 to acquire computer hardware and educational software so they
 may participate in digital instruction. Funds provided to a family to support digital instruction
 or supplemental online courses may only be used for qualifying expenses as determined by
 the provider. Nonconsumable materials purchased with public education funds remain the
 property of the provider. Records for any funds provided must be available for review by
 the public or the department.
     (g) An enrolling district providing digital instruction shall establish and document
 procedures for determining attendance for membership and keep accurate records of daily
 attendance under section 120A.21 120A.22.
   Sec. 29. Minnesota Statutes 2024, section 124D.096, is amended to read:
     124D.096 ONLINE LEARNING AID.
     (a) The online learning aid for an online learning provider equals the product of the
 adjusted online learning average daily membership for students under section 124D.095,
 subdivision 8, paragraph (d) 124D.094, subdivision 7, paragraph (b), times the student grade
 level weighting under section 126C.05, subdivision 1, times the formula allowance.
     (b) Notwithstanding section 127A.45, the department must pay each online learning
 provider the current year aid payment percentage multiplied by the amount in paragraph
 (a) within 45 days of receiving final enrollment and course completion information each
 quarter or semester. The final adjustment payment must be the amount of the actual
 entitlement, after adjustment for actual data, minus the payments made during the fiscal
 year of the entitlement. This payment must be made on September 30 of the next fiscal year.
   Sec. 30. Minnesota Statutes 2024, section 124D.59, subdivision 2, is amended to read:
     Subd. 2. English learner. (a) "English learner" means a pupil in kindergarten through
 grade 12; an early childhood special education student under Part B, section 619, of the
Article 1 Sec. 30.  37
03/03/26   REVISOR  JSK/BM  26-06400
  Individuals with Disabilities Education Act, United States Code, title 20, section 1419; or
  a prekindergarten student enrolled in an approved voluntary prekindergarten program under
  section 142D.08 or a school readiness plus program who meets the requirements under
  subdivision 2a or the following requirements:
(1) the pupil, as declared by a parent or guardian first learned a language other than
  English, comes from a home where the language usually spoken is other than English, or
  usually speaks a language other than English; and
(2) the pupil is determined by a valid assessment measuring the pupil's English language
  proficiency and by developmentally appropriate measures, which might include observations,
 teacher judgment, parent recommendations, or developmentally appropriate assessment
 instruments, to lack the necessary English skills to participate fully in academic classes
 taught in English.
(b) A pupil enrolled in a Minnesota public school in any grade 4 through 12 who in the
 previous school year took a commissioner-provided assessment measuring the pupil's
 emerging academic English, shall be counted as an English learner in calculating English
 learner pupil units under section 126C.05, subdivision 17, and shall generate state English
 learner aid under section 124D.65, subdivision 5, if the pupil scored below the state cutoff
 score or is otherwise counted as a nonproficient participant on the assessment measuring
 the pupil's emerging academic English, or, in the judgment of the pupil's classroom teachers,
 consistent with section 124D.61, clause (1), the pupil is unable to demonstrate academic
 language proficiency in English, including oral academic language, sufficient to successfully
 and fully participate in the general core curriculum in the regular classroom.
(c) Notwithstanding paragraphs (a) and (b), a pupil in early childhood special education
 or prekindergarten under section 142D.08, through grade 12 shall not be counted as an
 English learner in calculating English learner pupil units under section 126C.05, subdivision
 17, and shall not generate state English learner aid under section 124D.65, subdivision 5,
 if:
(1) the pupil is not enrolled during the current fiscal year in an educational program for
 English learners under sections 124D.58 to 124D.64; or
(2) the pupil has generated seven or more years of average daily membership in Minnesota
 public schools since July 1, 1996.
Article 1 Sec. 30.  38
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    Sec. 31. Minnesota Statutes 2025 Supplement, section 124F.01, subdivision 2, is amended
  to read:
      Subd. 2. Exemptions from laws and rules. (a) Notwithstanding any other law to the
  contrary, an innovation zone partner with an approved plan is exempt from each of the
  following state education laws and rules specifically identified in its plan:
      (1) any law or rule from which a district-created, site-governed school under section
  123B.045 is exempt;
      (2) any statute or rule from which the commissioner has exempted another district or
  charter school, as identified in the list published on the Department of Education's website
 under subdivision 4, paragraph (b);
     (3) online learning program approval under section 124D.095, subdivision 7, 124D.094
 if the school district or charter school offers a course or program online combined with
 direct access to a teacher for a portion of that course or program;
     (4) restrictions on extended time revenue under section 126C.10, subdivision 2a, for a
 student who meets the criteria of section 124D.68, subdivision 2; and
     (5) any required hours of instruction in any class or subject area for a student who is
 meeting all competencies consistent with the graduation standards described in the innovation
 zone plan.
     (b) The exemptions under this subdivision must not be construed as exempting an
 innovation zone partner from the Minnesota Comprehensive Assessments.
   Sec. 32. Minnesota Statutes 2024, section 125A.76, subdivision 2f, is amended to read:
     Subd. 2f. Special education homeless pupil aid. (a) For fiscal year 2024 and later,
 special education homeless pupil aid must be paid to a school district that is funded for that
 year based on the district's fiscal year 2016 expenditures calculated under Minnesota Statutes
 2012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes 2012,
 sections 125A.11 and 127A.47, subdivision 7, the ratio of the district's adjusted daily
 membership for the current fiscal year to the district's average daily membership for fiscal
 year 2016, and the minimum aid adjustment factor.
     (b) Special education homeless pupil aid equals the greater of zero, or a district's prior
 year transportation costs under section 123B.92, subdivision 1, paragraph (b), clause (4),
 items (ii) (i) and (vii) (vi), and the additional cost of transporting a student in a shelter care
 facility as defined in section 260C.007, subdivision 30, a homeless student in another district
Article 1 Sec. 32.  39
03/03/26   REVISOR  JSK/BM  26-06400
  to the school of origin, or a formerly homeless student from a permanent home in another
  district to the school of origin but only through the end of the academic year; minus the
  fiscal year 2016 costs associated with transportation costs under section 123B.92, subdivision
  1, paragraph (b), clause (4), items (ii) (i) and (vii) (vi), and the additional cost of transporting
  a student in a shelter care facility as defined in section 260C.007, subdivision 30, a homeless
  student in another district to the school of origin, or a formerly homeless student from a
  permanent home in another district to the school of origin, but only through the end of the
  academic year; adjusted by the ratio of the district's adjusted daily membership for the
  current fiscal year to the district's average daily membership for fiscal year 2016, and the
 minimum aid adjustment factor.
   Sec. 33. Minnesota Statutes 2024, section 126C.05, subdivision 1, is amended to read:
     Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the age
 of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), in
 average daily membership enrolled in the district of residence, in another district under
 sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
 chapter 124E; or for whom the resident district pays tuition under sections 123A.18, 123A.22,
 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03
 to 125A.24, 125A.51, or 125A.65, shall be counted according to this subdivision.
     (a) A prekindergarten pupil with a disability who is enrolled in a program approved by
 the commissioner and has an individualized education program is counted as the ratio of
 the number of hours of assessment and education service to 825 times 1.0 with a minimum
 average daily membership of 0.28, but not more than 1.0 pupil unit.
     (b) A prekindergarten pupil who is assessed but determined not to be disabled is counted
 as the ratio of the number of hours of assessment service to 825 times 1.0.
     (c) A prekindergarten pupil who is not included in paragraph (a) or (b) and is enrolled
 in an approved voluntary prekindergarten program under section 142D.08 is counted as the
 ratio of the number of hours of instruction to 850 times 1.0, but not more than 0.6 pupil
 units.
     (d) A kindergarten pupil is counted as 1.0 pupil unit if the pupil is enrolled in a free
 all-day, every day kindergarten program available to all kindergarten pupils at the pupil's
 school that meets the minimum hours requirement in section 120A.41, or is counted as .55
 pupil unit, if the pupil is not enrolled in a free all-day, every day kindergarten program
 available to all kindergarten pupils at the pupil's school.
Article 1 Sec. 33.  40
03/03/26   REVISOR  JSK/BM  26-06400
      (e) A pupil who is in any of grades 1 to 6 is counted as 1.0 pupil unit.
      (f) A pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.
      (g) A pupil who is in the postsecondary enrollment options program is counted as 1.2
  pupil units.
      (h) A prekindergarten pupil who:
      (1) is not included in paragraph (a), (b), or (c);
      (2) is enrolled in a school readiness plus program under section 142D.07; and
      (3) has one or more of the risk factors specified by the eligibility requirements for a
  school readiness plus program,
 is counted as the ratio of the number of hours of instruction to 850 times 1.0, but not more
 than 0.6 pupil units. A pupil qualifying under this paragraph must be counted in the same
 manner as a voluntary prekindergarten student for all general education and other school
 funding formulas.
   Sec. 34. Minnesota Statutes 2024, section 126C.17, subdivision 9, is amended to read:
     Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
 subdivision 1, may be increased in the amount approved by the voters of the district at a
 referendum called for the purpose. The referendum may be called by the board. The
 referendum must be conducted one or two calendar years before the increased levy authority,
 if approved, first becomes payable. Only one election to approve an increase may be held
 in a calendar year. Unless the referendum is conducted by mail under subdivision 11,
 paragraph (a), the referendum must be held on the first Tuesday after the first Monday in
 November. The ballot must state the maximum amount of the increased revenue per adjusted
 pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
 per adjusted pupil unit that differs from year to year over the number of years for which the
 increased revenue is authorized or may state that the amount shall increase annually by the
 rate of inflation. For this purpose, the rate of inflation shall be the annual inflationary increase
 calculated under subdivision 2, paragraph (b). The ballot may state that existing referendum
 levy authority is expiring. In this case, the ballot may also compare the proposed levy
 authority to the existing expiring levy authority, and express the proposed increase as the
 amount, if any, over the expiring referendum levy authority. The ballot must designate the
 specific number of years, not to exceed ten, for which the referendum authorization applies.
 The ballot, including a ballot on the question to revoke or reduce the increased revenue
 amount under paragraph (c), must abbreviate the term "per adjusted pupil unit" as "per
Article 1 Sec. 34.  41
03/03/26   REVISOR  JSK/BM  26-06400
  pupil." The notice required under section 275.60 may be modified to read, in cases of
  renewing existing levies at the same amount per pupil as in the previous year:
      "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO
      EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED
      TO EXPIRE."
      The ballot may contain a textual portion with the information required in this subdivision
  and a question stating substantially the following:
      "Shall the increase in the revenue proposed by (petition to) the board of ......., School
  District No. .., be approved?"
     If approved, an amount equal to the approved revenue per adjusted pupil unit times the
 adjusted pupil units for the school year beginning in the year after the levy is certified shall
 be authorized for certification for the number of years approved, if applicable, or until
 revoked or reduced by the voters of the district at a subsequent referendum.
     (b) The board must deliver by mail at least 15 days but no more than 45 days before the
 day of the referendum to each taxpayer a notice of the referendum and the proposed revenue
 increase. The board need not mail more than one notice to any taxpayer. For the purpose
 of giving mailed notice under this subdivision, owners must be those shown to be owners
 on the records of the county auditor or, in any county where tax statements are mailed by
 the county treasurer, on the records of the county treasurer. Every property owner whose
 name does not appear on the records of the county auditor or the county treasurer is deemed
 to have waived this mailed notice unless the owner has requested in writing that the county
 auditor or county treasurer, as the case may be, include the name on the records for this
 purpose. The notice must project the anticipated amount of tax increase in annual dollars
 for typical residential homesteads, agricultural homesteads, apartments, and
 commercial-industrial property within the school district.
     The notice for a referendum may state that an existing referendum levy is expiring and
 project the anticipated amount of increase over the existing referendum levy in the first
 year, if any, in annual dollars for typical residential homesteads, agricultural homesteads,
 apartments, and commercial-industrial property within the district.
     The notice must include the following statement: "Passage of this referendum will result
 in an increase in your property taxes." However, in cases of renewing existing levies, the
 notice may include the following statement: "Passage of this referendum extends an existing
 operating referendum at the same amount per pupil as in the previous year."
Article 1 Sec. 34.  42
03/03/26   REVISOR  JSK/BM  26-06400
      (c) A referendum on the question of revoking or reducing the increased revenue amount
  authorized pursuant to paragraph (a) may be called by the board. A referendum to revoke
  or reduce the revenue amount must state the amount per adjusted pupil unit by which the
  authority is to be reduced. Revenue authority approved by the voters of the district pursuant
  to paragraph (a) must be available to the school district at least once before it is subject to
  a referendum on its revocation or reduction for subsequent years. Only one revocation or
  reduction referendum may be held to revoke or reduce referendum revenue for any specific
  year and for years thereafter.
      (d) The approval of 50 percent plus one of those voting on the question is required to
 pass a referendum authorized by this subdivision.
     (e) At least 15 days before the day of the referendum, the district must submit a copy of
 the notice required under paragraph (b) to the commissioner and to the county auditor of
 each county in which the district is located. Within 15 days after the results of the referendum
 have been certified by the board, or in the case of a recount, the certification of the results
 of the recount by the canvassing board, the district must notify the commissioner of the
 results of the referendum.
   Sec. 35. Minnesota Statutes 2024, section 126C.40, subdivision 5, is amended to read:
     Subd. 5. Energy conservation. For energy loans approved after March 1, 1998, under
 sections 216C.37 and 298.292 to 298.298 298.297, school districts must annually transfer
 from the general fund to the debt redemption fund the amount sufficient to pay interest and
 principal on the loans.
   Sec. 36. Minnesota Statutes 2024, section 135A.15, subdivision 1, is amended to read:
     Subdivision 1. Applicability; policy required. (a) This section applies to the following
 postsecondary institutions:
     (1) institutions governed by the Board of Trustees of the Minnesota State Colleges and
 Universities; and
     (2) private postsecondary institutions that offer in-person courses on a campus located
 in Minnesota and which are eligible institutions as defined in section 136A.103, subdivision
 1, paragraph (a), that are participating in the federal program under Title IV of the Higher
 Education Act of 1965, Public Law 89-329, as amended.
     Institutions governed by the Board of Regents of the University of Minnesota are
 requested to comply with this section.
Article 1 Sec. 36.  43
03/03/26   REVISOR  JSK/BM  26-06400
      (b) A postsecondary institution must adopt a clear, understandable written policy on
  sexual misconduct that informs victims of their rights under the crime victims bill of rights,
  including the right to assistance from the Crime Victims Reimbursement Board and the
  commissioner of public safety. The policy must apply to students and employees and must
  provide information about their rights and duties. The policy must apply to criminal incidents
  against a student or employee of a postsecondary institution occurring on property owned
  or leased by the postsecondary system or institution or at any activity, program, organization,
  or event sponsored by the system or institution, or by a fraternity or sorority, or any activity,
  program, organization, or event sponsored by the system or institution, or by a fraternity or
 sorority, regardless of whether the activity, program, organization, or event occurs on or
 off property owned or leased by the postsecondary system or institution. It must include
 procedures for reporting incidents of sexual misconduct and for disciplinary actions against
 violators. During student registration, a postsecondary institution shall provide each student
 with information regarding its policy. A copy of the policy also shall be posted at appropriate
 locations on campus at all times.
   Sec. 37. Minnesota Statutes 2024, section 136A.031, subdivision 3, is amended to read:
     Subd. 3. Student Advisory Council. (a) A Student Advisory Council (SAC) to the
 office is established. The members of SAC shall include: the chair of the University of
 Minnesota student senate; the state chair of the Minnesota State University Student
 Association; the president of the Minnesota State College Student Association and an officer
 of the Minnesota State College Student Association, one in a community college course of
 study and one in a technical college course of study; a student who is enrolled in a private
 nonprofit postsecondary institution, to be elected by students enrolled in Minnesota Private
 College Council institutions; a student who is enrolled in a private career school, to be
 elected by students enrolled in Minnesota private career schools; and a student who is
 enrolled in a Minnesota tribal college to be elected by students enrolled in Minnesota tribal
 colleges. If students from the private career schools or tribal colleges do not elect a
 representative, the commissioner must appoint a student representative. If students from
 the Minnesota Private College Council institutions do not elect a representative, the
 Minnesota Private College Council must appoint the private nonprofit representative. A
 member may be represented by a student designee who attends an institution from the same
 system that the absent member represents. The SAC shall select one of its members to serve
 as chair.
     (b) The office shall inform the SAC of all matters related to student issues under
 consideration. The SAC shall report to the office quarterly and at other times that the SAC
Article 1 Sec. 37.  44
03/03/26   REVISOR  JSK/BM  26-06400
  considers desirable. The SAC shall determine its meeting times, but it shall also meet with
  the office within 30 days after the commissioner's request for a meeting.
      (c) The SAC shall:
      (1) bring to the attention of the office any matter that the SAC believes needs the attention
  of the office;
      (2) fulfill the requirements under section 135A.137, subdivision 2;
      (3) (2) make recommendations to the office as it finds appropriate; and
      (4) (3) approve student appointments by the office for each advisory group as provided
  in subdivision 4.
   Sec. 38. Minnesota Statutes 2025 Supplement, section 136A.054, is amended to read:
     136A.054 CONSOLIDATED COMPETITIVE GRANT AND STUDENT LOAN
 REPAYMENT PROGRAM REPORTING.
     (a) The commissioner of the Office of Higher Education shall report annually by February
 15 to the chairs and ranking minority members of the legislative committees with jurisdiction
 over higher education on the details of programs administered under sections 136A.1789,
 136A.1791, 136A.1794, 136A.1795, 136A.861, and 136A.915 including the following,
 where applicable:
     (1) organizations receiving grant awards;
     (2) grant award amounts and utilization rates;
     (3) grant program activities, goals, and outcomes;
     (4) grant matching sources and funding levels;
     (5) number and amount of loan repayment awards disbursed; and
     (6) demographic data of loan repayment program participants.
     (b) The commissioner must report any additional data and outcomes relevant to the
 evaluation of programs administered under sections 136A.1789, 136A.1791, 136A.1794,
 136A.1795, 136A.861, and 136A.915 as evidenced by activities funded under each program.
   Sec. 39. Minnesota Statutes 2024, section 136A.1241, subdivision 2, is amended to read:
     Subd. 2. Definitions. (a) For purposes of this section, the terms in this subdivision have
 the meanings given.
Article 1 Sec. 39.  45
03/03/26   REVISOR  JSK/BM  26-06400
(b) "Adoption" means adoption of an individual who has been in the care and custody
  of a responsible social services agency or Tribal social services agency and in foster care.
(c) "Eligible institution" means an eligible public institution or an eligible private
  institution.
(d) "Eligible private institution" or "private institution" means an institution eligible for
  state student aid under section 136A.103, subdivision 1, paragraph (a), clause (2).
(e) "Eligible public institution" or "public institution" means an institution operated by
  the Board of Trustees of the Minnesota State Colleges and Universities or the Board of
  Regents of the University of Minnesota.
(f) "Foster care" has the meaning given in section 260C.007, subdivision 18.
(g) "Foster grant" means a grant under this section.
(h) "Office" means the Office of Higher Education.
(i) "Recognized cost of attendance" means the amount calculated under subdivision 4.
(j) "Responsible social services agency" has the meaning given in section 260C.007,
 subdivision 27a.
(k) "Tribal social services agency" has the meaning given in section 260.755, subdivision
 21.
   Sec. 40. Minnesota Statutes 2024, section 136A.829, subdivision 3, is amended to read:
Subd. 3. Powers and duties. The office shall have (in addition to the powers and duties
 now vested therein by law) the following powers and duties:
(a) To negotiate and enter into interstate reciprocity agreements with similar agencies
 in other states, if in the judgment of the office such agreements are or will be helpful in
 effectuating the purposes of Laws 1973, chapter 714;
(b) To grant conditional private career school license for periods of less than one year
 if in the judgment of the office correctable deficiencies exist at the time of application and
 when refusal to issue private career school license would adversely affect currently enrolled
 students;
(c) The office may upon its own motion, and shall upon the verified complaint in writing
 of any person setting forth fact which, if proved, would constitute grounds for refusal or
 revocation under Laws 1973, chapter 714, investigate the actions of any applicant or any
 person or persons holding or claiming to hold a license or permit. However, before proceeding
Article 1 Sec. 40.  46
03/03/26   REVISOR  JSK/BM  26-06400
  to a hearing on the question of whether a license or permit shall be refused, revoked or
  suspended for any cause enumerated in subdivision 1, the office shall grant a reasonable
  time to the holder of or applicant for a license or permit to correct the situation. If within
  such time the situation is corrected and the private career school is in compliance with the
  provisions of sections 136A.82 to 136A.834, no further action leading to refusal, revocation,
  or suspension shall be taken.
      (d) To grant a private career school a probationary license for periods of less than three
  years if, in the judgment of the office, correctable deficiencies exist at the time of application
  that need more than one year to correct and when the risk of harm to students can be
 minimized through the use of restrictions and requirements as conditions of the license.
 Probationary licenses may include requirements and restrictions for:
     (1) periodic monitoring and submission of reports on the school's deficiencies to ascertain
 whether compliance improves;
     (2) periodic collaborative consultations with the school on noncompliance with sections
 136A.82 to 136A.834 or how the institution is managing compliance;
     (3) the submission of contingency plans such as teach-out plans or transfer pathways
 for students;
     (4) a prohibition from accepting tuition and fee payments prior to the add/drop period
 of the current period of instruction or before the funds have been earned by the school
 according to the refund requirements of section 136A.827;
     (5) a prohibition from enrolling new students;
     (6) enrollment caps;
     (7) the initiation of alternative processes and communications with students enrolled at
 the school to notify students of deficiencies or probation status;
     (8) the submission of a surety under section 136A.822, subdivision 6, paragraph (b),
 clause (1), that exceeds ten percent of the preceding year's net revenue from student tuition,
 fees, and other required institutional charges collected; or
     (9) submission of closure information under section 136A.8225.
   Sec. 41. Minnesota Statutes 2024, section 136A.84, subdivision 1, is amended to read:
     Subdivision 1. Authorization. The commissioner shall administer the direct admissions
 program in consultation with stakeholders, including Minnesota State Colleges and
 Universities, the University of Minnesota, the Student Advisory Council under section
Article 1 Sec. 41.  47
03/03/26   REVISOR  JSK/BM  26-06400
  136A.031, the Minnesota Department of Education, the Minnesota Association of Secondary
  School Principals, and the Minnesota School Board Association, to automatically offer
  conditional admission into an eligible public or nonprofit institution as defined under section
  136A.103, subdivision 1, paragraph (a), located in Minnesota, to Minnesota high school
  seniors based on a student's high school grade point average, high school and college
  transcript information, standardized tests, statewide assessments, and other measures as
  determined by stakeholders.
    Sec. 42. Minnesota Statutes 2024, section 142A.03, subdivision 32, is amended to read:
      Subd. 32. Duties of commissioner of children, youth, and families. It shall be the duty
 of the commissioner of children, youth, and families to promote the enforcement of all laws
 for the protection of children with developmental disabilities and dependent, neglected, and
 delinquent children, to cooperate to this end with juvenile courts and all reputable
 child-helping and child-placing agencies of a public or private character, and to take the
 initiative in all matters involving the interests of such children where adequate provision
 therefor has not already been made. The commissioner may appoint a chief executive officer
 and such assistants as shall be necessary to carry out the purposes of this section and section
 257.33.
   Sec. 43. Minnesota Statutes 2024, section 142A.05, is amended to read:
     142A.05 RULEMAKING.
     (a) The commissioner may use the procedure in section 14.386, paragraph (a), to adopt
 rules necessary to implement the responsibilities transferred under this article or through
 section 16B.37. Section 14.386, paragraph (b), does not apply to these rules.
     (b) The commissioner must amend Minnesota Rules to make conforming changes related
 to the transfer of responsibilities under Laws 2023, chapter 70, article 12, or through section
 16B.37. The commissioner must obtain the approval of the commissioners of human services,
 education, health, and public safety for any amendments to or repeal of rules in existence
 on July 1, 2024, and administered under the authority of those agencies.
     (c) The time limit in section 14.125 is extended to 36 months for rulemaking under
 paragraphs (a) and (b). The commissioner must publish a notice of intent to adopt rules or
 a notice of hearing within 36 months of the effective date reported under section 142A.05
 Laws 2023, chapter 70, article 12, section 30, subdivision 1, paragraph (c).
Article 1 Sec. 43.  48
03/03/26   REVISOR  JSK/BM  26-06400
      (d) The commissioner may adopt rules for the administration of activities related to the
  department. Rules adopted under this paragraph are subject to the rulemaking requirements
  of chapter 14.
    Sec. 44. Minnesota Statutes 2024, section 142A.604, subdivision 2, is amended to read:
      Subd. 2. Placement in foster care. To be eligible for foster care benefits under this
  section, the child must be in placement away from the child's legal parent, guardian, or
  Indian custodian as defined in section 260.755, subdivision 10, and must meet one of the
  criteria in clause (1) and either clause (2) or (3):
      (1) the legally responsible agency must have placement authority to place the child with:
 (i) a voluntary placement agreement or a court order, consistent with sections 260B.198,
 260C.001, and 260D.01, or consistent with section 260C.451 for a child 18 years old or
 older and under age 21 who maintains eligibility for foster care; or (ii) a voluntary placement
 agreement or court order by a Minnesota tribe that is consistent with United States Code,
 title 42, section 672(a)(2); and
     (2) the child is placed with a licensed child foster parent who resides with the child; or
     (3) the child is placed in one of the following unlicensed child foster care settings:
     (i) an emergency relative placement under tribal licensing regulations or section 142B.06,
 with the legally responsible agency ensuring the relative completes the required child foster
 care application process;
     (ii) a licensed adult foster home with an approved age variance under section 245A.16
 for no more than six months where the license holder resides with the child;
     (iii) for a child 18 years old or older and under age 21 who is eligible for extended foster
 care under section 260C.451, an unlicensed supervised independent living setting approved
 by the agency responsible for the child's care; or
     (iv) a preadoptive placement in a home specified in section 245A.03 142B.05, subdivision
 2, paragraph (a), clause (9) (5), with an approved adoption home study and signed adoption
 placement agreement.
   Sec. 45. Minnesota Statutes 2024, section 142B.01, subdivision 8, is amended to read:
     Subd. 8. Controlling individual. (a) "Controlling individual" means an owner of a
 program or service provider licensed under this chapter and the following individuals, if
 applicable:
Article 1 Sec. 45.  49
03/03/26   REVISOR  JSK/BM  26-06400
      (1) each officer of the organization, including the chief executive officer and chief
  financial officer;
      (2) the individual designated as the authorized agent under section 142B.10, subdivision
  1, paragraph (b);
      (3) the individual designated as the compliance officer under section 256B.04, subdivision
  21, paragraph (g);
      (4) (3) each managerial official whose responsibilities include the direction of the
  management or policies of a program;
      (5) (4) the individual designated as the primary provider of care for a special family
 child care program under section 142B.41, subdivision 4, paragraph (d); and
     (6) (5) the president and treasurer of the board of directors of a nonprofit corporation.
     (b) Controlling individual does not include:
     (1) a bank, savings bank, trust company, savings association, credit union, industrial
 loan and thrift company, investment banking firm, or insurance company unless the entity
 operates a program directly or through a subsidiary;
     (2) an individual who is a state or federal official, or state or federal employee, or a
 member or employee of the governing body of a political subdivision of the state or federal
 government that operates one or more programs, unless the individual is also an officer,
 owner, or managerial official of the program; receives remuneration from the program; or
 owns any of the beneficial interests not excluded in this subdivision;
     (3) an individual who owns less than five percent of the outstanding common shares of
 a corporation:
     (i) whose securities are exempt under section 80A.45, clause (6); or
     (ii) whose transactions are exempt under section 80A.46, clause (2);
     (4) an individual who is a member of an organization exempt from taxation under section
 290.05, unless the individual is also an officer, owner, or managerial official of the program
 or owns any of the beneficial interests not excluded in this subdivision. This clause does
 not exclude from the definition of controlling individual an organization that is exempt from
 taxation; or
     (5) an employee stock ownership plan trust, or a participant or board member of an
 employee stock ownership plan, unless the participant or board member is a controlling
 individual according to paragraph (a).
Article 1 Sec. 45.  50
03/03/26   REVISOR  JSK/BM  26-06400
      (c) For purposes of this subdivision, "managerial official" means an individual who has
  the decision-making authority related to the operation of the program, and the responsibility
  for the ongoing management of or direction of the policies, services, or employees of the
  program. A site director who has no ownership interest in the program is not considered to
  be a managerial official for purposes of this definition.
    Sec. 46. Minnesota Statutes 2024, section 142B.03, subdivision 1, is amended to read:
      Subdivision 1. Record retention; license holder requirements. (a) A license holder
  must maintain and store records in a manner that will allow for review by the commissioner
  as identified in section 142B.10, subdivision 5 12. The following records must be maintained
 as specified and in accordance with applicable state or federal law, regulation, or rule:
     (1) service recipient records, including verification of service delivery, must be maintained
 for a minimum of five years following discharge or termination of service;
     (2) personnel records must be maintained for a minimum of five years following
 termination of employment; and
     (3) program administration and financial records must be maintained for a minimum of
 five years from the date the program closes.
     (b) A license holder who ceases to provide services must maintain all records related to
 the licensed program for five years from the date the program closes. The license holder
 must notify the commissioner of the location where the licensing records will be stored and
 the name of the person responsible for maintaining the stored records.
     (c) If the ownership of a licensed program or service changes, the transferor, unless
 otherwise provided by law or written agreement with the transferee, is responsible for
 maintaining, preserving, and making available to the commissioner on demand the license
 records generated before the date of the transfer.
     (d) In the event of a contested case, the license holder must retain records as required
 in paragraph (a) or until the final agency decision is issued and the conclusion of any related
 appeal, whichever period is longer.
   Sec. 47. Minnesota Statutes 2024, section 142B.03, subdivision 2, is amended to read:
     Subd. 2. Electronic records; license holder use. A license holder's use of electronic
 record keeping or electronic signatures must meet the following requirements:
Article 1 Sec. 47.  51
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      (1) use of electronic record keeping or electronic signatures does not alter the license
  holder's obligations under state or federal law, regulation, or rule;
      (2) the license holder must ensure that the use of electronic record keeping does not limit
  the commissioner's access to records as specified under section 142B.10, subdivision 5 12;
      (3) upon request, the license holder must assist the commissioner in accessing and
  copying all records, including encrypted records and electronic signatures; and
      (4) the license holder must establish a mechanism or procedure to ensure that:
      (i) the act of creating the electronic record or signature is attributable to the license
  holder, according to section 325L.09;
     (ii) the electronic records and signatures are maintained in a form capable of being
 retained and accurately reproduced;
     (iii) the commissioner has access to information that establishes the date and time that
 data and signatures were entered into the electronic record; and
     (iv) the license holder's use of electronic record keeping or electronic signatures does
 not compromise the security of the records.
   Sec. 48. Minnesota Statutes 2024, section 142B.05, subdivision 7, is amended to read:
     Subd. 7. Excluded school-age programs; right to seek or continue licensure. Nothing
 in this section shall prohibit a school-age program that is excluded from licensure under
 subdivision 2, paragraph (a), clause (27) (17), from seeking a license or continuing to be
 licensed under this chapter.
   Sec. 49. Minnesota Statutes 2024, section 142B.05, subdivision 8, is amended to read:
     Subd. 8. Excluded providers seeking licensure. Nothing in this section shall prohibit
 a program that is excluded from licensure under subdivision 2, paragraph (a), clause (26)
 (16), from seeking licensure. The commissioner shall ensure that any application received
 from such an excluded provider is processed in the same manner as all other applications
 for child care center licensure.
   Sec. 50. Minnesota Statutes 2024, section 142B.10, subdivision 1, is amended to read:
     Subdivision 1. Application for licensure. (a) An individual, organization, or government
 entity that is subject to licensure under section 142B.05 must apply for a license. The
 application must be made on the forms and in the manner prescribed by the commissioner.
Article 1 Sec. 50.  52
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  The commissioner shall provide the applicant with instruction in completing the application
  and provide information about the rules and requirements of other state agencies that affect
  the applicant. An applicant seeking licensure in Minnesota with headquarters outside of
  Minnesota must have a program office located within 30 miles of the Minnesota border.
  An applicant who intends to buy or otherwise acquire a program or services licensed under
  this chapter that is owned by another license holder must apply for a license under this
  chapter and comply with the application procedures in this section and section 142B.11
  142B.15.
      The commissioner shall act on the application within 90 working days after a complete
 application and any required reports have been received from other state agencies or
 departments, counties, municipalities, or other political subdivisions. The commissioner
 shall not consider an application to be complete until the commissioner receives all of the
 required information.
     When the commissioner receives an application for initial licensure that is incomplete
 because the applicant failed to submit required documents or that is substantially deficient
 because the documents submitted do not meet licensing requirements, the commissioner
 shall provide the applicant written notice that the application is incomplete or substantially
 deficient. In the written notice to the applicant the commissioner shall identify documents
 that are missing or deficient and give the applicant 45 days to resubmit a second application
 that is substantially complete. An applicant's failure to submit a substantially complete
 application after receiving notice from the commissioner is a basis for license denial under
 section 142B.11.
     (b) An application for licensure must identify all controlling individuals as defined in
 section 142B.01, subdivision 8, and must designate one individual to be the authorized
 agent. The application must be signed by the authorized agent and must include the authorized
 agent's first, middle, and last name; mailing address; and email address. By submitting an
 application for licensure, the authorized agent consents to electronic communication with
 the commissioner throughout the application process. The authorized agent must be
 authorized to accept service on behalf of all of the controlling individuals. A government
 entity that holds multiple licenses under this chapter may designate one authorized agent
 for all licenses issued under this chapter or may designate a different authorized agent for
 each license. Service on the authorized agent is service on all of the controlling individuals.
 It is not a defense to any action arising under this chapter that service was not made on each
 controlling individual. The designation of a controlling individual as the authorized agent
Article 1 Sec. 50.  53
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  under this paragraph does not affect the legal responsibility of any other controlling individual
  under this chapter.
      (c) An applicant or license holder must have a policy that prohibits license holders,
  employees, subcontractors, and volunteers, when directly responsible for persons served
  by the program, from abusing prescription medication or being in any manner under the
  influence of a chemical that impairs the individual's ability to provide services or care. The
  license holder must train employees, subcontractors, and volunteers about the program's
  drug and alcohol policy.
      (d) An applicant and license holder must have a program grievance procedure that permits
 persons served by the program and their authorized representatives to bring a grievance to
 the highest level of authority in the program.
     (e) The commissioner may limit communication during the application process to the
 authorized agent or the controlling individuals identified on the license application and for
 whom a background study was initiated under chapter 245C. Upon implementation of the
 provider licensing and reporting hub, applicants and license holders must use the hub in the
 manner prescribed by the commissioner. The commissioner may require the applicant,
 except for child foster care, to demonstrate competence in the applicable licensing
 requirements by successfully completing a written examination. The commissioner may
 develop a prescribed written examination format.
     (f) When an applicant is an individual, the applicant must provide:
     (1) the applicant's taxpayer identification numbers including the Social Security number
 or Minnesota tax identification number, and federal employer identification number if the
 applicant has employees;
     (2) at the request of the commissioner, a copy of the most recent filing with the secretary
 of state that includes the complete business name, if any;
     (3) if doing business under a different name, the doing business as (DBA) name, as
 registered with the secretary of state;
     (4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique
 Minnesota Provider Identifier (UMPI) number; and
     (5) at the request of the commissioner, the notarized signature of the applicant or
 authorized agent.
     (g) When an applicant is an organization, the applicant must provide:
Article 1 Sec. 50.  54
03/03/26   REVISOR  JSK/BM  26-06400
      (1) the applicant's taxpayer identification numbers including the Minnesota tax
  identification number and federal employer identification number;
      (2) at the request of the commissioner, a copy of the most recent filing with the secretary
  of state that includes the complete business name, and if doing business under a different
  name, the doing business as (DBA) name, as registered with the secretary of state;
      (3) the first, middle, and last name, and address for all individuals who will be controlling
  individuals, including all officers, owners, and managerial officials as defined in section
  142B.01, subdivision 8, and the date that the background study was initiated by the applicant
  for each controlling individual;
     (4) if applicable, the applicant's NPI number and UMPI number;
     (5) the documents that created the organization and that determine the organization's
 internal governance and the relations among the persons that own the organization, have
 an interest in the organization, or are members of the organization, in each case as provided
 or authorized by the organization's governing statute, which may include a partnership
 agreement, bylaws, articles of organization, organizational chart, and operating agreement,
 or comparable documents as provided in the organization's governing statute; and
     (6) the notarized signature of the applicant or authorized agent.
     (h) When the applicant is a government entity, the applicant must provide:
     (1) the name of the government agency, political subdivision, or other unit of government
 seeking the license and the name of the program or services that will be licensed;
     (2) the applicant's taxpayer identification numbers including the Minnesota tax
 identification number and federal employer identification number;
     (3) a letter signed by the manager, administrator, or other executive of the government
 entity authorizing the submission of the license application; and
     (4) if applicable, the applicant's NPI number and UMPI number.
     (i) At the time of application for licensure or renewal of a license under this chapter, the
 applicant or license holder must acknowledge on the form provided by the commissioner
 if the applicant or license holder elects to receive any public funding reimbursement from
 the commissioner for services provided under the license that:
     (1) the applicant's or license holder's compliance with the provider enrollment agreement
 or registration requirements for receipt of public funding may be monitored by the
 commissioner as part of a licensing investigation or licensing inspection; and
Article 1 Sec. 50.  55
03/03/26   REVISOR  JSK/BM  26-06400
      (2) noncompliance with the provider enrollment agreement or registration requirements
  for receipt of public funding that is identified through a licensing investigation or licensing
  inspection, or noncompliance with a licensing requirement that is a basis of enrollment for
  reimbursement for a service, may result in:
      (i) a correction order or a conditional license under section 142B.16, or sanctions under
  section 142B.18;
      (ii) nonpayment of claims submitted by the license holder for public program
  reimbursement;
      (iii) recovery of payments made for the service;
     (iv) disenrollment in the public payment program; or
     (v) other administrative, civil, or criminal penalties as provided by law.
   Sec. 51. Minnesota Statutes 2024, section 142B.12, subdivision 4, is amended to read:
     Subd. 4. License fee for certain programs. (a) Child care centers shall pay an annual
 nonrefundable license fee based on the following schedule:
Child Care Center
Licensed Capacity  License Fee
1 to 24 persons  $200
25 to 49 persons  $300
50 to 74 persons  $400
75 to 99 persons  $500
100 to 124 persons  $600
125 to 149 persons  $700
150 to 174 persons  $800
175 to 199 persons  $900
200 to 224 persons  $1,000
225 or more persons  $1,100
     (b) A private agency licensed to provide foster care and adoption services under
 Minnesota Rules, parts 9545.0755 to 9545.0845 9545.0835, shall pay an annual
 nonrefundable license fee of $875.
   Sec. 52. Minnesota Statutes 2024, section 142B.41, subdivision 3, is amended to read:
     Subd. 3. Conditional license. Until such time as the commissioner adopts appropriate
 rules for conditional licenses, no license holder or applicant for a family or group family
Article 1 Sec. 52.  56
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  day care license is required to spend more than $100 to meet fire safety rules in excess of
  those required to meet Group "R" occupancies under the Uniform Building Code, chapter
  12, as incorporated by reference in Minnesota Rules, part 1305.0100 1305.0011.
      When the commissioner determines that an applicant or license holder of a family or
  group family day care license would be required to spend over $100 for physical changes
  to ensure fire safety, the commissioner may issue a conditional license when all of the
  following conditions have been met:
      (a) The commissioner shall notify the license holder or applicant in writing of the fire
  safety deficiencies.
     (b) The commissioner shall notify the license holder or applicant in writing of alternative
 compliance standards that would correct deficiencies, if available.
     (c) The license holder or applicant agrees in writing to notify each parent, on a form
 prescribed by the commissioner that requires the signature of the parent, of the fire safety
 deficiencies, and the existence of the conditional license.
   Sec. 53. Minnesota Statutes 2024, section 142D.08, subdivision 5, is amended to read:
     Subd. 5. Application process; priority for high poverty schools. (a) To qualify for
 program approval for fiscal year 2026, a district or charter school must submit an application
 to the commissioner by January 30, 2025. Thereafter, the commissioner must accept
 applications and approve programs every four years. To qualify for program approval after
 fiscal year 2026, a school district or charter school must submit an application to the
 commissioner by January 30 of the fiscal year prior to the fiscal year in which the program
 will be implemented. The application must include:
     (1) a description of the proposed program, including the number of hours per week the
 program will be offered at each school site or mixed-delivery location;
     (2) an estimate of the number of eligible children to be served in the program at each
 school site or mixed-delivery location; and
     (3) a statement of assurances signed by the superintendent or charter school director that
 the proposed program meets the requirements of subdivision 2.
     (b) The commissioner must review all applications by March 1 of the fiscal year in which
 the applications are received and determine whether each application meets the requirements
 of paragraph (a).
Article 1 Sec. 53.  57
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      (c) The commissioner must divide all applications for new or expanded voluntary
  prekindergarten programs under this section meeting the requirements of paragraph (a) and
  school readiness plus programs into five groups as follows: the Minneapolis school district;
  the St. Paul school district; other school districts located in the metropolitan equity region
  as defined in section 126C.10, subdivision 28; school districts located in the rural equity
  region as defined in section 126C.10, subdivision 28; and charter schools. Within each
  group, the applications must be ordered by rank using a sliding scale based on the following
  criteria:
      (1) concentration of kindergarten students eligible for free or reduced-price meals by
 school site on October 1 of the previous school year. A school site may contract to partner
 with a community-based provider or Head Start under subdivision 3 or establish an early
 childhood center and use the concentration of kindergarten students eligible for free or
 reduced-price meals from a specific school site as long as those eligible children are
 prioritized and guaranteed services at the mixed-delivery site or early education center. For
 school district programs to be operated at locations that do not have free and reduced-price
 meals concentration data for kindergarten programs for October 1 of the previous school
 year, including mixed-delivery programs, the school district average concentration of
 kindergarten students eligible for free or reduced-price meals must be used for the rank
 ordering;
     (2) presence or absence of a three- or four-star Parent Aware rated program within the
 school district or close proximity of the district. School sites with the highest concentration
 of kindergarten students eligible for free or reduced-price meals that do not have a three-
 or four-star Parent Aware program within the district or close proximity of the district shall
 receive the highest priority, and school sites with the lowest concentration of kindergarten
 students eligible for free or reduced-price meals that have a three- or four-star Parent Aware
 rated program within the district or close proximity of the district shall receive the lowest
 priority; and
     (3) whether the district has implemented a mixed delivery system.
   Sec. 54. Minnesota Statutes 2024, section 142D.08, subdivision 6, is amended to read:
     Subd. 6. Participation limits. (a) Notwithstanding section 126C.05, subdivision 1,
 paragraph (c), the pupil units for a voluntary prekindergarten program for an eligible school
 district or charter school must not exceed 60 percent of the kindergarten pupil units for that
 school district or charter school under section 126C.05, subdivision 1, paragraph (d).
Article 1 Sec. 54.  58
03/03/26   REVISOR  JSK/BM  26-06400
      (b) In reviewing applications under subdivision 5 and allocating seats under subdivision
  5a, the commissioner must limit the total number of participants in the voluntary
  prekindergarten and school readiness plus programs under section 142D.07, program to not
  more than 7,160 participants for fiscal year 2024 and 12,360 participants for fiscal year
  2025 and later.
    Sec. 55. Minnesota Statutes 2024, section 142D.20, subdivision 2, is amended to read:
      Subd. 2. Grants. (a) The commissioner shall distribute money provided by this section
  through grants to one or more nonprofit corporations to plan, develop, and finance early
  childhood education and child care sites. A nonprofit corporation must have demonstrated
 the ability to analyze financing projects, have knowledge of other sources of public and
 private financing for child care and early childhood education sites, and have a relationship
 with regional resource and referral programs. The board of directors of a nonprofit
 corporation must include members who are knowledgeable about early childhood education,
 child care, development and improvement, and financing.
     (b) The commissioners of the Departments of Human Services, Children, Youth, and
 Families; Employment and Economic Development,; and the Housing Finance Agency
 shall advise the boards of any nonprofit corporations that use the grant money provided
 under this section for loan programs as described in subdivision 3, paragraph (a), clauses
 (1) to (4). All loans made by a nonprofit corporation under this section must comply with
 section 363A.16.
   Sec. 56. Minnesota Statutes 2024, section 142D.32, subdivision 2, is amended to read:
     Subd. 2. Definitions. (a) For purposes of this section, the following terms have the
 meanings given.
     (b) "Apprentice" means an employee participating in an early childhood registered
 apprenticeship program.
     (c) "Early childhood registered apprenticeship program" means an organization holding
 the TEACH license with the Department of Children, Youth, and Families that is registered
 with the Department of Labor and Industry under chapter 178.
     (d) "Early childhood signatory employer" means an employer that participates in an
 early childhood registered apprenticeship program and employs an apprentice and that is:
     (1) a licensed child care center under Minnesota Rules, chapter 9503;
Article 1 Sec. 56.  59
03/03/26   REVISOR  JSK/BM  26-06400
      (2) a licensed family and group family child care provider under Minnesota Rules,
  chapter 9502;
      (3) an early childhood family education program under section 142D.10; a school
  readiness program under section 142D.05; a voluntary prekindergarten program under
  section 142D.08; or a special education program under chapter 125A; or a school readiness
  plus program under section 142D.07;
      (4) a Head Start program under United States Code, title 42, section 9801, et seq.;
      (5) a certified license-exempt child care center under chapter 142C; or
      (6) a Tribally licensed child care program.
     (e) "Mentor" means an early childhood registered apprenticeship program journeyworker
 under section 178.011, subdivision 9, who has a career lattice step of nine or higher.
   Sec. 57. Minnesota Statutes 2024, section 142E.16, subdivision 2, is amended to read:
     Subd. 2. Background study required. (a) This subdivision only applies to legal,
 nonlicensed family child care providers.
     (b) Prior to authorization, the commissioner of children, youth, and families human
 services shall perform a background study on individuals identified under section 245C.02,
 subdivision 6a.
     (c) After authorization, a background study must also be performed when an individual
 identified under section 245C.02, subdivision 6a, joins the household. The provider must
 report all family changes that would require a new background study.
     (d) At each reauthorization, the commissioner of children, youth, and families must
 ensure that a background study through NETStudy 2.0 has been performed on all individuals
 in the provider's household for whom a background study is required under paragraphs (b)
 and (c).
     (e) Prior to a background study through NETStudy 2.0 expiring, another background
 study must be completed on all individuals for whom the background study is expiring.
     (f) The commissioner of children, youth, and families human services shall forward the
 background study determination to the commissioner of children, youth, and families, who
 shall grant or deny authorization as a legal nonlicensed family child care provider based on
 the commissioner of human service's determination.
Article 1 Sec. 57.  60
03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 58. Minnesota Statutes 2025 Supplement, section 142G.01, subdivision 3, is amended
  to read:
      Subd. 3. Relationship to other statutes and rules. MFIP replaces eligibility for families
  with children and pregnant women under the general assistance program, governed by
  sections 256D.01 to 256D.21 256D.17 and Minnesota Rules, parts 9500.1200 to 9500.1261.
    Sec. 59. Minnesota Statutes 2024, section 142G.22, subdivision 1, is amended to read:
      Subdivision 1. Determination of eligibility. (a) A county agency must determine MFIP
  eligibility prospectively based on assessing income and the county agency's best estimate
  of the circumstances that will exist in the payment month.
     (b) A county agency must calculate the amount of the assistance payment using
 prospective budgeting. To determine MFIP eligibility and the assistance payment amount,
 a county agency must apply countable income, described in sections 142G.31, subdivisions
 5 to 12, and 256P.06, received by members of an assistance unit or by other persons whose
 income is counted for the assistance unit, described under sections 142G.31, subdivisions
 1 to 4, and 256P.06, subdivision 1.
     (c) This income must be applied to the MFIP standard of need or family wage level
 subject to this section and sections 142G.30, 142G.32, and 142G.33. Countable income as
 described in section 256P.06, subdivision 3, received must be applied to the needs of an
 assistance unit.
     (d) An assistance unit is not eligible when the countable income equals or exceeds the
 MFIP standard of need or the family wage level for the assistance unit.
   Sec. 60. Minnesota Statutes 2024, section 142G.25, is amended to read:
     142G.25 REPORTING REQUIREMENTS.
     The commissioner of children, youth, and families, in cooperation with the commissioner
 of employment and economic development, shall develop reporting requirements for county
 agencies and employment and training service providers according to section 256.01,
 subdivision 2, paragraph (p) (o). Reporting requirements must, to the extent possible, use
 existing client tracking systems and must be within the limits of funds available. The
 requirements must include summary information necessary for state agencies and the
 legislature to evaluate the effectiveness of the services.
Article 1 Sec. 60.  61
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    Sec. 61. Minnesota Statutes 2024, section 142G.40, subdivision 1, is amended to read:
      Subdivision 1. Time limit. (a) Except as otherwise provided for in this section, an
  assistance unit in which any adult caregiver has received 60 months of cash assistance
  funded in whole or in part by the TANF block grant in this or any other state or United
  States territory, or from a tribal TANF program, MFIP, the AFDC program formerly codified
  in sections 256.72 to 256.87, or the family general assistance program formerly codified in
  sections 256D.01 to 256D.23 256D.17, funded in whole or in part by state appropriations,
  is ineligible to receive MFIP. Any cash assistance funded with TANF dollars in this or any
  other state or United States territory, or from a tribal TANF program, or MFIP assistance
 funded in whole or in part by state appropriations, that was received by the unit on or after
 the date TANF was implemented, including any assistance received in states or United
 States territories of prior residence, counts toward the 60-month limitation. Months during
 which any cash assistance is received by an assistance unit with a mandatory member who
 is disqualified for wrongfully obtaining public assistance under section 256.98, subdivision
 8, counts toward the time limit for the disqualified member. The 60-month limit applies to
 a minor caregiver except under subdivision 4. The 60-month time period does not need to
 be consecutive months for this provision to apply.
     (b) The months before July 1998 in which individuals received assistance as part of the
 field trials as an MFIP, MFIP-R, or MFIP or MFIP-R comparison group family are not
 included in the 60-month time limit.
   Sec. 62. Minnesota Statutes 2024, section 142G.57, subdivision 2, is amended to read:
     Subd. 2. Responsibility for assessment and employment plan. For caregivers who
 are under age 18 without a high school diploma or its equivalent, the assessment under
 subdivision 1 and the employment plan under subdivision 3 must be completed by the social
 services agency under section 257.33 142A.03, subdivision 34. For caregivers who are age
 18 or 19 without a high school diploma or its equivalent who choose to have an employment
 plan with an education option under subdivision 3, the assessment under subdivision 1 and
 the employment plan under subdivision 3 must be completed by the job counselor or, at
 county option, by the social services agency under section 257.33 142A.03, subdivision 34.
 Upon reaching age 18 or 19 a caregiver who received social services under section 257.33
 142A.03, subdivision 34, and is without a high school diploma or its equivalent has the
 option to choose whether to continue receiving services under the caregiver's plan from the
 social services agency or to utilize an MFIP employment and training service provider. The
Article 1 Sec. 62.  62
03/03/26   REVISOR  JSK/BM  26-06400
  social services agency or the job counselor shall consult with the participant's school in
  developing the educational plan.
    Sec. 63. Minnesota Statutes 2024, section 142G.57, subdivision 4, is amended to read:
      Subd. 4. No appropriate educational option. If the job counselor determines that there
  is no appropriate educational option for a caregiver who is age 18 or 19 without a high
  school diploma or its equivalent, the job counselor must develop an employment plan, as
  defined in section 142G.50, subdivision 4, for the caregiver. If the county social services
  agency determines that school attendance is not appropriate for a caregiver under age 18
  without a high school diploma or its equivalent, the county agency shall refer the caregiver
 to social services for services as provided in section 257.33 142A.03, subdivision 34.
   Sec. 64. Minnesota Statutes 2024, section 144E.28, subdivision 8, is amended to read:
     Subd. 8. Reinstatement. (a) Within four years of a certification expiration date, a person
 whose certification has expired under subdivision 7, paragraph (d), may have the certification
 reinstated upon submission of:
     (1) evidence to the director of training equivalent to the continuing education requirements
 of subdivision 7 or, for community paramedics, evidence to the director of training equivalent
 to the continuing education requirements of subdivision 9, paragraph (c); and
     (2) a director-approved application form.
     (b) If more than four years have passed since a certificate expiration date, an applicant
 must complete the initial certification process required under subdivision 1.
     (c) Beginning July 1, 2024, through December 31, 2025, and notwithstanding paragraph
 (b), a person whose certification as an EMT, AEMT, paramedic, or community paramedic
 expired more than four years ago but less than ten years ago may have the certification
 reinstated upon submission of:
     (1) evidence to the director of the training required under paragraph (a), clause (1). This
 training must have been completed within the 24 months prior to the date of the application
 for reinstatement;
     (2) a director-approved application form; and
     (3) a recommendation from an ambulance service medical director.
 This paragraph expires December 31, 2025.
Article 1 Sec. 64.  63
03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 65. Minnesota Statutes 2024, section 145.882, subdivision 5a, is amended to read:
      Subd. 5a. Nonparticipating community health boards. If a community health board
  decides not to participate in maternal and child health block grant activities under subdivision
  3 or the commissioner determines under section 145A.131 145A.03, subdivision 7, not to
  fund the community health board, the commissioner is responsible for directing maternal
  and child health block grant activities in that community health board's geographic area.
  The commissioner may elect to directly provide public health activities to meet the statewide
  outcomes or to contract with other governmental units or nonprofit organizations.
    Sec. 66. Minnesota Statutes 2024, section 145.8821, is amended to read:
     145.8821 ACCOUNTABILITY.
     (a) Coordinating with accountability measures outlined in section 145A.131, subdivision
 7 3, each community health board that receives money under section 145.882, subdivision
 3, shall select by February 1, 2005, and every five years thereafter, up to two statewide
 maternal and child health outcomes.
     (b) For the period January 1, 2004, to December 31, 2005, each community health board
 must work toward the Healthy People 2010 goal to reduce the state's percentage of low
 birth weight infants.
     (c) The commissioner shall monitor and evaluate whether each community health board
 has made sufficient progress toward the selected outcomes established in paragraph (b).
     (d) Community health boards shall provide the commissioner with annual information
 necessary to evaluate progress toward selected statewide outcomes and to meet federal
 reporting requirements.
   Sec. 67. Minnesota Statutes 2025 Supplement, section 148.6404, is amended to read:
     148.6404 SCOPE OF PRACTICE.
     (a) The practice of occupational therapy means the therapeutic use of everyday life
 occupations with individuals, groups, or populations for the purpose of enhancing or enabling
 participation in those occupations. The practice of occupational therapy promotes health
 and well-being through the use of occupational therapy services that includes screening,
 evaluation, intervention, and consultation to develop, recover, and maintain a client's:
     (1) sensory integrative, neuromuscular, motor, emotional, motivational, cognitive, or
 psychosocial components of performance;
Article 1 Sec. 67.  64
03/03/26   REVISOR  JSK/BM  26-06400
      (2) daily living skills;
      (3) feeding and swallowing skills;
      (4) play and leisure skills;
      (5) educational participation skills;
      (6) functional performance and work participation skills;
      (7) community mobility; and
      (8) health and wellness.
      (b) Occupational therapy services include but are not limited to:
      (1) designing, fabricating, or applying rehabilitative technology, such as selected orthotic
 and prosthetic devices, and providing training in the functional use of these devices;
     (2) designing, fabricating, or adapting assistive technology and providing training in the
 functional use of assistive devices;
     (3) adapting environments using assistive technology such as environmental controls,
 wheelchair modifications, and positioning;
     (4) applying physical agent, manual, and mechanical modalities in preparation for or as
 an adjunct to purposeful activity to meet established functional occupational therapy goals;
 and
     (5) educating and training individuals, including families, caregivers, groups, and
 populations.
     (c) Occupational therapy services must be based on nationally established standards of
 practice.
   Sec. 68. Minnesota Statutes 2025 Supplement, section 148.6408, subdivision 2, is amended
 to read:
     Subd. 2. Qualifying examination score required. (a) An applicant must achieve a
 qualifying score on the certification examination for occupational therapist therapists.
     (b) The board shall determine the qualifying score for the certification examination for
 occupational therapist therapists as recommended by the National Board for Certification
 in Occupational Therapy, or other national certification organization approved by the board.
     (c) Applicants for licensure must:
Article 1 Sec. 68.  65
03/03/26   REVISOR  JSK/BM  26-06400
      (1) make arrangements to take the certification examination for an occupational therapist
  therapists;
      (2) bear all expenses associated with taking the examination; and
      (3) submit an application and other materials as required by the board under section
  148.6420.
    Sec. 69. Minnesota Statutes 2024, section 148B.59, is amended to read:
      148B.59 DISCIPLINARY ACTION; RESTORATION OF LICENSE.
      (a) The board may impose disciplinary action as described in paragraph (b) against an
  applicant or licensee whom the board, by a preponderance of the evidence, determines:
     (1) has violated a statute, rule, or order that the board issued or is empowered to enforce;
     (2) has engaged in fraudulent, deceptive, or dishonest conduct, whether or not the conduct
 relates to the practice of licensed professional counseling, that adversely affects the person's
 ability or fitness to practice professional counseling;
     (3) has engaged in unprofessional conduct or any other conduct which has the potential
 for causing harm to the public, including any departure from or failure to conform to the
 minimum standards of acceptable and prevailing practice without actual injury having to
 be established;
     (4) has been convicted of or has pled guilty or nolo contendere to a felony or other crime,
 an element of which is dishonesty or fraud, or has been shown to have engaged in acts or
 practices tending to show that the applicant or licensee is incompetent or has engaged in
 conduct reflecting adversely on the applicant's or licensee's ability or fitness to engage in
 the practice of professional counseling;
     (5) has employed fraud or deception in obtaining or renewing a license, or in passing
 an examination;
     (6) has had any counseling license, certificate, registration, privilege to take an
 examination, or other similar authority denied, revoked, suspended, canceled, limited, or
 not renewed for cause in any jurisdiction or has surrendered or voluntarily terminated a
 license or certificate during a board investigation of a complaint, as part of a disciplinary
 order, or while under a disciplinary order;
     (7) has failed to meet any requirement for the issuance or renewal of the person's license.
 The burden of proof is on the applicant or licensee to demonstrate the qualifications or
Article 1 Sec. 69.  66
03/03/26   REVISOR  JSK/BM  26-06400
  satisfy the requirements for a license under the Licensed Professional Counseling Act
  sections 148B.50 to 148B.75;
      (8) has failed to cooperate with an investigation of the board;
      (9) has demonstrated an inability to practice professional counseling with reasonable
  skill and safety to clients due to any mental or physical illness or condition;
      (10) has engaged in fee splitting. This clause does not apply to the distribution of revenues
  from a partnership, group practice, nonprofit corporation, or professional corporation to its
  partners, shareholders, members, or employees if the revenues consist only of fees for
  services performed by the licensee or under a licensee's administrative authority. Fee splitting
 includes, but is not limited to:
     (i) dividing fees with another person or a professional corporation, unless the division
 is in proportion to the services provided and the responsibility assumed by each professional;
     (ii) referring a client to any health care provider as defined in sections 144.291 to 144.298
 in which the referring licensee has a significant financial interest, unless the licensee has
 disclosed in advance to the client the licensee's own financial interest; and
     (iii) paying, offering to pay, receiving, or agreeing to receive a commission, rebate, or
 remuneration, directly or indirectly, primarily for the referral of clients;
     (11) has engaged in conduct with a client that is sexual or may reasonably be interpreted
 by the client as sexual, or in any verbal behavior that is seductive or sexually demeaning to
 a client;
     (12) has been subject to a corrective action or similar action in another jurisdiction or
 by another regulatory authority; or
     (13) has been adjudicated as mentally incompetent, mentally ill, or developmentally
 disabled or as a chemically dependent person, a person dangerous to the public, a sexually
 dangerous person, or a person who has a sexual psychopathic personality by a court of
 competent jurisdiction within this state or an equivalent adjudication from another state.
 Adjudication automatically suspends a license for the duration thereof unless the board
 orders otherwise.
     (b) If grounds for disciplinary action exist under paragraph (a), the board may take one
 or more of the following actions:
     (1) refuse to grant or renew a license;
     (2) revoke a license;
Article 1 Sec. 69.  67
03/03/26   REVISOR  JSK/BM  26-06400
      (3) suspend a license;
      (4) impose limitations or conditions on a licensee's practice of professional counseling,
  including, but not limited to, limiting the scope of practice to designated competencies,
  imposing retraining or rehabilitation requirements, requiring the licensee to practice under
  supervision, or conditioning continued practice on the demonstration of knowledge or skill
  by appropriate examination or other review of skill and competence;
      (5) censure or reprimand the licensee;
      (6) refuse to permit an applicant to take the licensure examination or refuse to release
  an applicant's examination grade if the board finds that it is in the public interest; or
     (7) impose a civil penalty not exceeding $10,000 for each separate violation, the amount
 of the civil penalty to be fixed so as to deprive the applicant or licensee of any economic
 advantage gained by reason of the violation charged, to discourage similar violations or to
 reimburse the board for the cost of the investigation and proceeding, including, but not
 limited to, fees paid for services provided by the Office of Administrative Hearings, legal
 and investigative services provided by the Office of the Attorney General, court reporters,
 witnesses, reproduction of records, board members' per diem compensation, board staff
 time, and travel costs and expenses incurred by board staff and board members.
     (c) In lieu of or in addition to paragraph (b), the board may require, as a condition of
 continued licensure, termination of suspension, reinstatement of license, examination, or
 release of examination grades, that the applicant or licensee:
     (1) submit to a quality review, as specified by the board, of the applicant's or licensee's
 ability, skills, or quality of work; and
     (2) complete to the satisfaction of the board educational courses specified by the board.
 The board may also refer a licensee, if appropriate, to the health professionals services
 program described in sections 214.31 to 214.37.
     (d) Service of the order is effective if the order is served on the applicant, licensee, or
 counsel of record personally or by mail to the most recent address provided to the board for
 the licensee, applicant, or counsel of record. The order shall state the reasons for the entry
 of the order.
   Sec. 70. Minnesota Statutes 2024, section 148F.165, subdivision 2, is amended to read:
     Subd. 2. Client bill of rights. The client bill of rights required by section 144.652 shall
 be prominently displayed on the premises of the professional practice or provided as a
Article 1 Sec. 70.  68
03/03/26   REVISOR  JSK/BM  26-06400
  handout to each client. The document must state that consumers of alcohol and drug
  counseling services have the right to:
      (1) expect that the provider meets the minimum qualifications of training and experience
  required by state law;
      (2) examine public records maintained by the Board of Behavioral Health and Therapy
  that contain the credentials of the provider;
      (3) report complaints to the Board of Behavioral Health and Therapy;
      (4) be informed of the cost of professional services before receiving the services;
      (5) privacy as defined and limited by law and rule;
     (6) be free from being the object of unlawful discrimination while receiving counseling
 services;
     (7) have access to their records as provided in sections 144.92 144.292 and 148F.135,
 subdivision 1, except as otherwise provided by law;
     (8) be free from exploitation for the benefit or advantage of the provider;
     (9) terminate services at any time, except as otherwise provided by law or court order;
     (10) know the intended recipients of assessment results;
     (11) withdraw consent to release assessment results, unless the right is prohibited by
 law or court order or was waived by prior written agreement;
     (12) a nontechnical description of assessment procedures; and
     (13) a nontechnical explanation and interpretation of assessment results, unless this right
 is prohibited by law or court order or was waived by prior written agreement.
   Sec. 71. Minnesota Statutes 2024, section 148F.205, subdivision 5, is amended to read:
     Subd. 5. Insurers. Each insurer authorized to sell insurance described in section 60A.06,
 subdivision 1, clause (13), and providing professional liability insurance to alcohol and drug
 counselors or the Medical Joint Underwriting Association under chapter 62F 62I, shall
 submit to the board quarterly reports concerning the alcohol and drug counselors against
 whom malpractice settlements and awards have been made. The report must contain at least
 the following information:
     (1) the total number of malpractice settlements or awards made;
     (2) the date the malpractice settlements or awards were made;
Article 1 Sec. 71.  69
03/03/26   REVISOR  JSK/BM  26-06400
      (3) the allegations contained in the claim or complaint leading to the settlements or
  awards made;
      (4) the dollar amount of each settlement or award;
      (5) the address of the practice of the alcohol and drug counselor against whom an award
  was made or with whom a settlement was made; and
      (6) the name of the alcohol and drug counselor against whom an award was made or
  with whom a settlement was made.
  The insurance company shall, in addition to the information in clauses (1) to (6), submit to
  the board any information, records, and files, including clients' charts and records, it possesses
 that tend to substantiate a charge that a licensed alcohol and drug counselor may have
 engaged in conduct violating this chapter.
   Sec. 72. Minnesota Statutes 2024, section 148F.2051, is amended to read:
     148F.2051 FAILURE TO REPORT.
     On or after August 1, 2012, Any person, institution, insurer, or organization that fails
 to report as required under Minnesota Statutes 2010, section 148C.095, subdivisions 2 to
 5, section 148F.205 shall be subject to civil penalties for failing to report as required by
 law.
   Sec. 73. Minnesota Statutes 2024, section 151.72, subdivision 2, is amended to read:
     Subd. 2. Scope. (a) This section applies to the sale of any product that contains
 cannabinoids extracted from hemp and that is an edible cannabinoid product or is intended
 for human or animal consumption by any route of administration.
     (b) This section does not apply to any product dispensed by a registered medical cannabis
 manufacturer pursuant to sections 152.22 to 152.37 and 152.29.
     (c) The office must have no authority over food products, as defined in section 34A.01,
 subdivision 4, that do not contain cannabinoids extracted or derived from hemp.
   Sec. 74. Minnesota Statutes 2024, section 152.29, subdivision 5, is amended to read:
     Subd. 5. Distribution to Tribal medical cannabis program patient. (a) A manufacturer
 may distribute medical cannabis in accordance with subdivisions 1 to 4 to a Tribal medical
 cannabis program patient.
Article 1 Sec. 74.  70
03/03/26   REVISOR  JSK/BM  26-06400
      (b) Prior to distribution, the Tribal medical cannabis program patient must provide to
  the manufacturer:
      (1) a valid medical cannabis registration verification card or equivalent document issued
  by a Tribal medical cannabis program that indicates that the Tribal medical cannabis program
  patient is authorized to use medical cannabis on Indian lands over which the Tribe has
  jurisdiction; and
      (2) a valid photographic identification card issued by the Tribal medical cannabis
  program, a valid driver's license, or a valid state identification card.
      (c) A manufacturer shall distribute medical cannabis to a Tribal medical cannabis program
 patient only in a form allowed under section 152.22, subdivision 6 342.01, subdivision 52.
   Sec. 75. Minnesota Statutes 2024, section 157.22, is amended to read:
     157.22 EXEMPTIONS.
     This chapter does not apply to:
     (1) interstate carriers under the supervision of the United States Department of Health
 and Human Services;
     (2) weddings, fellowship meals, or funerals conducted by a faith-based organization
 using any building constructed and primarily used for religious worship or education;
     (3) any building owned, operated, and used by a college or university in accordance
 with health regulations promulgated by the college or university under chapter 14;
     (4) any person, firm, or corporation whose principal mode of business is licensed under
 sections 28A.04 and 28A.05, is exempt at that premises from licensure as a food or beverage
 establishment; provided that the holding of any license pursuant to sections 28A.04 and
 28A.05 shall not exempt any person, firm, or corporation from the applicable provisions of
 this chapter or the rules of the state commissioner of health relating to food and beverage
 service establishments;
     (5) family day care homes and group family day care homes governed by sections
 142B.01 to 142B.79;
     (6) nonprofit senior citizen centers for the sale of home-baked goods;
     (7) fraternal, sportsman, or patriotic organizations that are tax exempt under section
 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(7), 501(c)(10), or 501(c)(19) of the Internal Revenue
 Code of 1986, or organizations related to, affiliated with, or supported by such fraternal,
Article 1 Sec. 75.  71
03/03/26   REVISOR  JSK/BM  26-06400
  sportsman, or patriotic organizations for events held in the building or on the grounds of
  the organization and at which home-prepared food is donated by organization members for
  sale at the events, provided:
      (i) the event is not a circus, carnival, or fair;
      (ii) the organization controls the admission of persons to the event, the event agenda, or
  both; and
      (iii) the organization's licensed kitchen is not used in any manner for the event;
      (8) food not prepared at an establishment and brought in by individuals attending a
  potluck event for consumption at the potluck event. An organization sponsoring a potluck
 event under this clause may advertise the potluck event to the public through any means.
 Individuals who are not members of an organization sponsoring a potluck event under this
 clause may attend the potluck event and consume the food at the event. Licensed food
 establishments other than schools cannot be sponsors of potluck events. A school may
 sponsor and hold potluck events in areas of the school other than the school's kitchen,
 provided that the school's kitchen is not used in any manner for the potluck event. For
 purposes of this clause, "school" means a public school as defined in section 120A.05,
 subdivisions 9, 11, 13, and 17, or a nonpublic school, church, or religious organization at
 which a child is provided with instruction in compliance with sections 120A.22 and 120A.24.
 Potluck event food shall not be brought into a licensed food establishment kitchen;
     (9) a home school in which a child is provided instruction at home;
     (10) school concession stands serving commercially prepared, nonpotentially hazardous
 foods, as defined in Minnesota Rules, chapter 4626;
     (11) group residential facilities of ten or fewer beds licensed by the commissioner of
 human services under Minnesota Rules, chapter 2960, provided the facility employs or
 contracts with a certified food protection manager under Minnesota Rules, part 4626.2015
 4626.0033;
     (12) food served at fundraisers, community events or fellowship meals conducted in the
 building or on the grounds of a faith-based organization, provided that a certified food
 manager or volunteer trained in a food safety course, trains the food preparation workers
 in safe food handling practices. Food prepared during these events is allowed to be made
 available for curbside pickup or delivered to members of the faith-based organization or
 the community in which the faith-based organization serves. This exemption does not apply
Article 1 Sec. 75.  72
03/03/26   REVISOR  JSK/BM  26-06400
  to faith-based organizations at the state agricultural society or county fairs or to faith-based
  organizations that choose to apply for a license;
      (13) food service events conducted following a disaster for purposes of feeding disaster
  relief staff and volunteers serving commercially prepared, nonpotentially hazardous foods,
  as defined in Minnesota Rules, chapter 4626;
      (14) chili or soup served at a chili or soup cook-off fundraiser conducted by a
  community-based nonprofit organization, provided:
      (i) the municipality where the event is located approves the event;
      (ii) the sponsoring organization must develop food safety rules and ensure that participants
 follow these rules; and
     (iii) if the food is not prepared in a kitchen that is licensed or inspected, a visible sign
 or placard must be posted that states: "These products are homemade and not subject to
 state inspection."
     Foods exempt under this clause must be labeled to accurately reflect the name and
 address of the person preparing the foods; and
     (15) a special event food stand or a seasonal temporary food stand provided:
     (i) the stand is located on private property with the permission of the property owner;
     (ii) the stand has gross receipts or contributions of $1,000 or less in a calendar year; and
     (iii) the operator of the stand posts a sign or placard at the site that states "The products
 sold at this stand are not subject to state inspection or regulation." if the stand offers for sale
 potentially hazardous food as defined in Minnesota Rules, part 4626.0020, subpart 62.
   Sec. 76. Minnesota Statutes 2025 Supplement, section 161.14, subdivision 109, is amended
 to read:
     Subd. 109. Elmstrand * Finseth * Ruge Heroes Memorial Bridge. The bridge on
 Burnsville Parkway over marked Interstate Highway 35W in the city of Burnsville is
 designated as "Elmstrand * Finseth * Ruge Heroes Memorial Bridge." Subject to section
 161.139, the commissioner must adopt a suitable design to mark this highway bridge and
 erect appropriate signs.
Article 1 Sec. 76.  73
03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 77. Minnesota Statutes 2025 Supplement, section 161.45, subdivision 4, is amended
  to read:
      Subd. 4. High voltage transmission; placement in right-of-way. (a) For purposes of
  this subdivision and subdivisions 5 to 7, "high voltage transmission line" has the meaning
  given in section 216I.02, subdivision 8.
      (b) Notwithstanding subdivision 1, paragraph (a), high voltage transmission lines under
  the laws of this state or the ordinance of any city or county may be constructed, placed, or
  maintained across or along any trunk highway, including an interstate highway and a trunk
  highway that is an expressway or a freeway, except as deemed necessary by the commissioner
 of transportation to protect public safety or ensure the proper function of the trunk highway
 system.
     (c) If the commissioner denies a high voltage electric transmission line colocation request,
 the reasons for the denial must be submitted for review within 90 days of the commissioner's
 denial to the chairs and ranking minority members of the legislative committees with
 jurisdiction over energy and transportation, the Public Utilities Commission executive
 secretary, and the commissioner of commerce.
   Sec. 78. Minnesota Statutes 2025 Supplement, section 168.012, subdivision 1, is amended
 to read:
     Subdivision 1. Vehicles exempt from tax, fees, or plate display. (a) The following
 vehicles are exempt from the provisions of this chapter requiring payment of tax and
 registration fees, except as provided in subdivision 1c:
     (1) vehicles owned and used solely in the transaction of official business by the federal
 government, the state, or any political subdivision;
     (2) vehicles owned and used exclusively by educational institutions and used solely in
 the transportation of pupils to and from those institutions;
     (3) vehicles used solely in driver education programs at nonpublic high schools;
     (4) vehicles owned by nonprofit charities and used exclusively to transport disabled
 persons for charitable, religious, or educational purposes;
     (5) vehicles owned by nonprofit charities and used exclusively for disaster response and
 related activities;
Article 1 Sec. 78.  74
03/03/26   REVISOR  JSK/BM  26-06400
      (6) vehicles owned by ambulance services licensed under section 144E.10 that are
  equipped and specifically intended for emergency response or providing ambulance services;
  and
      (7) vehicles owned by a commercial driving school licensed under section 171.34, or
  an employee of a commercial driving school licensed under section 171.34, and the vehicle
  is used exclusively for driver education and training.
      (b) Provided the general appearance of the vehicle is unmistakable, the following vehicles
  are not required to register or display number plates:
      (1) vehicles owned by the federal government;
     (2) fire apparatuses, including fire-suppression support vehicles, owned or leased by the
 state or a political subdivision;
     (3) police patrols owned or leased by the state or a political subdivision; and
     (4) ambulances owned or leased by the state or a political subdivision.
     (c) Unmarked vehicles used in general police work, liquor investigations, or arson
 investigations, and passenger automobiles, pickup trucks, and buses owned or operated by
 the Department of Corrections or by conservation officers of the Division of Enforcement
 and Field Service of the Department of Natural Resources, must be registered and must
 display appropriate license number plates, furnished by the registrar at cost. Original and
 renewal applications for these license plates authorized for use in general police work and
 for use by the Department of Corrections or by conservation officers must be accompanied
 by a certification signed by the appropriate chief of police if issued to a police vehicle, the
 appropriate sheriff if issued to a sheriff's vehicle, the commissioner of corrections if issued
 to a Department of Corrections vehicle, or the appropriate officer in charge if issued to a
 vehicle of any other law enforcement agency. The certification must be on a form prescribed
 by the commissioner and state that the vehicle will be used exclusively for a purpose
 authorized by this section.
     (d) Unmarked vehicles used by the Departments of Revenue and Labor and Industry,
 fraud unit, in conducting seizures or criminal investigations must be registered and must
 display passenger vehicle classification license number plates, furnished at cost by the
 registrar. Original and renewal applications for these passenger vehicle license plates must
 be accompanied by a certification signed by the commissioner of revenue or the
 commissioner of labor and industry. The certification must be on a form prescribed by the
Article 1 Sec. 78.  75
03/03/26   REVISOR  JSK/BM  26-06400
  commissioner and state that the vehicles will be used exclusively for the purposes authorized
  by this section.
      (e) Unmarked vehicles used by the Division of Disease Prevention and Control of the
  Department of Health Infectious Disease Epidemiology, Prevention and Control Division
  must be registered and must display passenger vehicle classification license number plates.
  These plates must be furnished at cost by the registrar. Original and renewal applications
  for these passenger vehicle license plates must be accompanied by a certification signed by
  the commissioner of health. The certification must be on a form prescribed by the
  commissioner and state that the vehicles will be used exclusively for the official duties of
 the Division of Disease Prevention and Control.
     (f) Unmarked vehicles used by staff of the Gambling Control Board in gambling
 investigations and reviews must be registered and must display passenger vehicle
 classification license number plates. These plates must be furnished at cost by the registrar.
 Original and renewal applications for these passenger vehicle license plates must be
 accompanied by a certification signed by the board chair. The certification must be on a
 form prescribed by the commissioner and state that the vehicles will be used exclusively
 for the official duties of the Gambling Control Board.
     (g) Unmarked vehicles used in general investigation, surveillance, supervision, and
 monitoring by the Office of Inspector General's staff, including, but not limited to, county
 fraud prevention investigators, must be registered and must display passenger vehicle
 classification license number plates, furnished by the registrar at cost. Original and renewal
 applications for passenger vehicle license plates must be accompanied by a certification
 signed by the commissioner of human services. The certification must be on a form prescribed
 by the commissioner and state that the vehicles must be used exclusively for the official
 duties of the Office of Special Investigations' staff and the Office of the Inspector General's
 staff, including, but not limited to, contract and county fraud prevention investigators.
     (h) Unmarked vehicles used in general investigation, surveillance, supervision, and
 monitoring by the Direct Care and Treatment Office of Special Investigations' staff and
 unmarked vehicles used by the Minnesota Sex Offender Program's executive director and
 the executive director's staff must be registered and must display passenger vehicle
 classification license number plates, furnished by the registrar at cost. Original and renewal
 applications for passenger vehicle license plates must be accompanied by a certification
 signed by the Direct Care and Treatment executive board. The certification must be on a
 form prescribed by the commissioner and state that the vehicles must be used exclusively
 for the official duties of the Minnesota Sex Offender Program's executive director and the
Article 1 Sec. 78.  76
03/03/26   REVISOR  JSK/BM  26-06400
  executive director's staff, including but not limited to contract and county fraud prevention
  investigators.
      (i) Each state hospital and institution for persons who are mentally ill and developmentally
  disabled may have one vehicle without the required identification on the sides of the vehicle.
  The vehicle must be registered and must display passenger vehicle classification license
  number plates. These plates must be furnished at cost by the registrar. Original and renewal
  applications for these passenger vehicle license plates must be accompanied by a certification
  signed by the hospital administrator. The certification must be on a form prescribed by the
  Direct Care and Treatment executive board and state that the vehicles will be used exclusively
 for the official duties of the state hospital or institution.
     (j) Each county social service agency may have vehicles used for child and vulnerable
 adult protective services without the required identification on the sides of the vehicle. The
 vehicles must be registered and must display passenger vehicle classification license number
 plates. These plates must be furnished at cost by the registrar. Original and renewal
 applications for these passenger vehicle license plates must be accompanied by a certification
 signed by the agency administrator. The certification must be on a form prescribed by the
 commissioner and state that the vehicles will be used exclusively for the official duties of
 the social service agency.
     (k) Unmarked vehicles used in general investigation, surveillance, supervision, and
 monitoring by tobacco inspector staff of the Department of Human Services' Alcohol and
 Drug Abuse Division for the purposes of tobacco inspections, investigations, and reviews
 must be registered and must display passenger vehicle classification license number plates,
 furnished at cost by the registrar. Original and renewal applications for passenger vehicle
 license plates must be accompanied by a certification signed by the commissioner of human
 services. The certification must be on a form prescribed by the commissioner and state that
 the vehicles will be used exclusively by tobacco inspector staff for the duties specified in
 this paragraph.
     (l) All other motor vehicles must be registered and display tax-exempt number plates,
 furnished by the registrar at cost, except as provided in subdivision 1c. All vehicles required
 to display tax-exempt number plates must have the name of the state department or political
 subdivision, nonpublic high school operating a driver education program, licensed
 commercial driving school, or other qualifying organization or entity, plainly displayed on
 both sides of the vehicle. This identification must be in a color giving contrast with that of
 the part of the vehicle on which it is placed and must endure throughout the term of the
 registration. The identification must not be on a removable plate or placard and must be
Article 1 Sec. 78.  77
03/03/26   REVISOR  JSK/BM  26-06400
  kept clean and visible at all times; except that a removable plate or placard may be utilized
  on vehicles leased or loaned to a political subdivision or to a nonpublic high school driver
  education program.
    Sec. 79. Minnesota Statutes 2025 Supplement, section 168A.01, subdivision 18, is amended
  to read:
      Subd. 18. Secured party. "Secured party" means a secured party as defined in section
  336.9-102, paragraph (a), clause (73), 336.9-102(a)(73) having a security interest in a
  vehicle.
    Sec. 80. Minnesota Statutes 2025 Supplement, section 168A.01, subdivision 19, is amended
 to read:
     Subd. 19. Security agreement. "Security agreement" means a security agreement as
 defined in section 336.9-102, paragraph (a), clause (74) 336.9-102(a)(74).
   Sec. 81. Minnesota Statutes 2025 Supplement, section 168A.01, subdivision 20, is amended
 to read:
     Subd. 20. Security interest. "Security interest" means a security interest as defined in
 section 336.1-201, paragraph (b), clause (35) 336.1-201(b)(35). A security interest is
 "perfected" when it is valid against third parties generally, subject only to specific statutory
 exception.
   Sec. 82. Minnesota Statutes 2024, section 169.223, subdivision 4, is amended to read:
     Subd. 4. Headlight requirement. The provisions of section 169.974, subdivision 5,
 paragraph (k) (l), apply to motorized bicycles that are equipped with headlights. A new
 motorized bicycle sold or offered for sale in Minnesota must be equipped with a headlight.
   Sec. 83. Minnesota Statutes 2024, section 169.99, subdivision 1, is amended to read:
     Subdivision 1. Form. (a) Except as provided in subdivision 3; section 169.147,
 subdivision 8 10; and section 169.999, subdivision 3, there shall be a uniform ticket issued
 throughout the state by the police and peace officers or by any other person for violations
 of this chapter and ordinances in conformity thereto. Such uniform traffic ticket shall be in
 the form and have the effect of a summons and complaint. Except as provided in paragraph
 (b), the uniform ticket shall state that if the defendant fails to appear in court in response to
 the ticket, an arrest warrant may be issued. The uniform traffic ticket shall consist of four
Article 1 Sec. 83.  78
03/03/26   REVISOR  JSK/BM  26-06400
  parts, on paper sensitized so that copies may be made without the use of carbon paper, as
  follows:
      (1) the complaint, with reverse side for officer's notes for testifying in court, driver's
  past record, and court's action, printed on white paper;
      (2) the abstract of court record for the Department of Public Safety, which shall be a
  copy of the complaint with the certificate of conviction on the reverse side, printed on yellow
  paper;
      (3) the police record, which shall be a copy of the complaint and of the reverse side of
  copy (1), printed on pink paper; and
     (4) the summons, with, on the reverse side, such information as the court may wish to
 give concerning the Traffic Violations Bureau, and a plea of guilty and waiver, printed on
 off-white tag stock.
     (b) If the offense is a petty misdemeanor, the uniform ticket must state that a failure to
 appear will be considered a plea of guilty and waiver of the right to trial, unless the failure
 to appear is due to circumstances beyond the person's control.
   Sec. 84. Minnesota Statutes 2025 Supplement, section 171.301, subdivision 1, is amended
 to read:
     Subdivision 1. Conditions of issuance. (a) The commissioner may issue a reintegration
 driver's license to any person:
     (1) who is 18 years of age or older;
     (2) who has been released from a period of at least 180 consecutive days of confinement
 or incarceration in:
     (i) an adult correctional facility under the control of the commissioner of corrections or
 licensed by the commissioner of corrections under section 241.021;
     (ii) a federal correctional facility for adults; or
     (iii) an adult correctional facility operated under the control or supervision of any other
 state; and
     (3) whose license has been suspended or revoked under the circumstances listed in
 section 171.30, subdivision 1, paragraph (a), clauses (1) to (4), for a violation that occurred
 before the individual was incarcerated for the period described in clause (2).
Article 1 Sec. 84.  79
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      (b) 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 reintegration driver's 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.
      (c) If the person's driver's license or permit to drive has been suspended under section
  171.186, the commissioner may only issue a reintegration driver's license to the person after
  the commissioner receives notice of a court order provided pursuant to section 518A.65,
  paragraph (h), showing that the person's driver's license or operating privileges should no
 longer be suspended.
     (d) If the person's driver's license has been revoked under section 171.17, subdivision
 1, paragraph (a), clause (1) or (2), the commissioner may only issue a reintegration driver's
 license to the person after the person has completed the applicable revocation period.
     (e) The commissioner must not issue a reintegration driver's license:
     (1) to any person described in section 171.04, subdivision 1, clause (7), (8), (10), or
 (11);
     (2) to any person described in section 169A.55, subdivision 5 171.178, subdivision 6;
     (3) if the person has committed a violation after the person was released from custody
 that results in the suspension, revocation, or cancellation of a driver's license, including
 suspension for nonpayment of child support or maintenance payments as described in section
 171.186, subdivision 1; or
     (4) if the issuance would conflict with the requirements of the nonresident violator
 compact.
     (f) The commissioner must not issue a class A, class B, or class C reintegration driver's
 license.
   Sec. 85. Minnesota Statutes 2024, section 181.211, subdivision 10, is amended to read:
     Subd. 10. Worker organization. "Worker organization" means an organization that is
 exempt from federal income taxation under section 501(c)(3), 501(c)(4), or 501(c)(5) of
 the Internal Revenue Code, that is not dominated or interfered with by any nursing home
 employer within the meaning of United States Code, title 29, section 158a(2) 158(a)(2),
 and that has at least five years of demonstrated experience engaging with and advocating
 for nursing home workers.
Article 1 Sec. 85.  80
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    Sec. 86. Minnesota Statutes 2024, section 204B.06, subdivision 9, is amended to read:
Subd. 9. Multiple affidavits of candidacy. Notwithstanding subdivision 1, paragraph
  (a), clause (2):
(1) a candidate for soil and water conservation district supervisor in a district not located
  in whole or in part in Anoka, Hennepin, Ramsey, or Washington County may also have on
  file an affidavit of candidacy for:
(i) mayor or council member of a statutory or home rule charter city of not more than
  2,500 population contained in whole or in part in the soil and water conservation district;
  or
(ii) town supervisor in a town of not more than 2,500 population contained in whole or
 in part in the soil and water conservation district; and
(2) a candidate for school board member may also have on file an affidavit of candidacy
 for town board supervisor, unless that town board is exercising the powers of a statutory
 city under section 368.01 or an applicable special law.
   Sec. 87. Minnesota Statutes 2024, section 211B.04, subdivision 3, is amended to read:
Subd. 3. Material that does not need a disclaimer. (a) This section does not apply to
 fundraising tickets, business cards, personal letters, or similar items that are clearly being
 distributed by the candidate.
(b) This section does not apply to an individual or association that is not required to
 register or report under chapter 10A or 211A.
(c) This section does not apply to the following:
(1) bumper stickers, pins, buttons, pens, or similar small items on which the disclaimer
 cannot be conveniently printed;
(2) skywriting, wearing apparel, or other means of displaying an advertisement of such
 a nature that the inclusion of a disclaimer would be impracticable; and
(3) online banner ads and similar electronic communications that link directly to an
 online page that includes the disclaimer.
(d) This section does not modify or repeal section 211B.06.
Article 1 Sec. 87.  81
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    Sec. 88. Minnesota Statutes 2024, section 214.06, subdivision 1a, is amended to read:
      Subd. 1a. Health occupations licensing account. (a) Fees received by the commissioner
  of health or health-related licensing boards must be credited to the health occupations
  licensing account in the state government special revenue fund. The commissioner of
  management and budget shall ensure that the revenues and expenditures of each health-related
  licensing board are tracked separately in the health occupations licensing account.
      (b) The fees collected must be used only by the boards identified in section 214.01,
  subdivision 2, and only for the purposes of the programs they administer. The legislature
  must not transfer money generated by these fees from the state government special revenue
 fund to the general fund. Surcharges collected by a health-related licensing board under
 section 16E.22 are not subject to this subdivision.
   Sec. 89. Minnesota Statutes 2024, section 216B.16, subdivision 6b, is amended to read:
     Subd. 6b. Energy conservation improvement. (a) Except as otherwise provided in this
 subdivision, all investments and expenses of a public utility, as defined in section 216B.241,
 subdivision 1, paragraph (h) 216B.2402, subdivision 11, incurred in connection with energy
 conservation improvements shall be recognized and included by the commission in the
 determination of just and reasonable rates as if the investments and expenses were directly
 made or incurred by the utility in furnishing utility service.
     (b) The commission shall not include investments and expenses for energy conservation
 improvements in determining (i) just and reasonable electric rates for retail electric service
 provided to large customer facilities whose electric utilities have been exempted by the
 commissioner under section 216B.241, subdivision 1a, paragraph (b), with respect to those
 large customer facilities; or (ii) just and reasonable gas rates for large energy facilities, large
 customer facilities whose natural gas utilities have been exempted by the commissioner
 under section 216B.241, subdivision 1a, paragraph (b), or commercial gas customer facilities
 whose natural gas utilities have been exempted by the commissioner under section 216B.241,
 subdivision 1a, paragraph (c).
     (c) The commission may permit a public utility to file rate schedules providing for annual
 recovery of the costs of energy conservation improvements. These rate schedules may be
 applicable to less than all the customers in a class of retail customers if necessary to reflect
 the requirements of section 216B.241. The commission shall allow a public utility, without
 requiring a general rate filing under this section, to reduce the electric rates applicable to
 large customer facilities that have been exempted by the commissioner under section
 216B.241, subdivision 1a, paragraph (b), and to reduce the gas rate applicable to a large
Article 1 Sec. 89.  82
03/03/26   REVISOR  JSK/BM  26-06400
  energy facility, a large customer facility or commercial customer facility that has been
  exempted by the commissioner under section 216B.241, subdivision 1a, paragraph (b) or
  (c), or by the commission under section 216B.241, subdivision 2, by an amount that reflects
  the elimination of energy conservation improvement investments or expenditures for those
  facilities. In the event that the commission has set electric or gas rates based on the use of
  an accounting methodology that results in the cost of conservation improvements being
  recovered from utility customers over a period of years, the rate reduction may occur in a
  series of steps to coincide with the recovery of balances due to the utility for conservation
  improvements made by the utility on or before December 31, 2007.
     (d) Investments and expenses of a public utility shall not include electric utility
 infrastructure costs as defined in section 216B.1636, subdivision 1, paragraph (b).
   Sec. 90. Minnesota Statutes 2024, section 216B.16, subdivision 6c, is amended to read:
     Subd. 6c. Incentive plan for energy conservation and efficient fuel-switching
 improvement. (a) The commission may order public utilities to develop and submit for
 commission approval incentive plans that describe the method of recovery and accounting
 for utility conservation and efficient fuel-switching expenditures and savings. For public
 utilities that provide electric service, the commission must develop and implement incentive
 plans designed to promote energy conservation separately from the plans designed to promote
 efficient fuel-switching. In developing the incentive plans the commission shall ensure the
 effective involvement of interested parties.
     (b) In approving incentive plans, the commission shall consider:
     (1) whether the plan is likely to increase utility investment in cost-effective energy
 conservation or efficient fuel switching;
     (2) whether the plan is compatible with the interest of utility ratepayers and other
 interested parties;
     (3) whether the plan links the incentive to the utility's performance in achieving
 cost-effective conservation or efficient fuel switching;
     (4) whether the plan is in conflict with other provisions of this chapter;
     (5) (4) whether the plan conflicts with other provisions of this chapter; and
     (6) (5) the likely financial impacts of the conservation and efficient fuel-switching
 programs on the utility.
Article 1 Sec. 90.  83
03/03/26   REVISOR  JSK/BM  26-06400
      (c) The commission may set rates to encourage the vigorous and effective implementation
  of utility conservation and efficient fuel-switching programs. The commission may:
      (1) increase or decrease any otherwise allowed rate of return on net investment based
  upon the utility's skill, efforts, and success in improving the efficient use of energy through
  energy conservation or efficient fuel switching;
      (2) share between ratepayers and utilities the net savings resulting from energy
  conservation and efficient fuel-switching programs to the extent justified by the utility's
  skill, efforts, and success in improving the efficient use of energy; and
      (3) adopt any mechanism that satisfies the criteria of this subdivision, such that
 implementation of cost-effective conservation or efficient fuel switching is a preferred
 resource choice for the public utility considering the impact of conservation or efficient fuel
 switching on earnings of the public utility.
     (d) Any incentives offered to electric utilities under this subdivision for efficient-fuel
 switching projects expire December 31, 2032.
   Sec. 91. Minnesota Statutes 2025 Supplement, section 216B.1622, subdivision 2, is
 amended to read:
     Subd. 2. Tariff or energy supply agreement. The commission may approve, modify,
 or reject a tariff or electric service agreement proposed between a public utility and a very
 large customer establishing the terms and conditions under which the utility will provide
 electric service to the customer. As it evaluates a tariff or agreement under this section, the
 commission must consider how best to achieve the following required outcomes:
     (1) all costs attributable to the utility's very large customers not exempt under subdivision
 3 are assigned to the very large customer class or subclass determined by the commission
 under paragraph (a) subdivision 1;
     (2) the electricity to be provided by the utility to a very large customer achieves each
 quantitative benchmark of the state's electricity standards under section 216B.1691, as
 demonstrated by a plan submitted by the utility to serve the additional load without recourse
 to requesting a delay or modification of these standards;
     (3) the tariff or agreement contains protections necessary to ensure that other customers
 of the public utility are not placed at risk for paying stranded costs associated with the utility
 serving the very large customer; and
Article 1 Sec. 91.  84
03/03/26   REVISOR  JSK/BM  26-06400
      (4) any other outcome deemed important by the commission to ensure the tariff or
  agreement is in the public interest.
    Sec. 92. Minnesota Statutes 2024, section 216B.2411, subdivision 1, is amended to read:
      Subdivision 1. Generation projects. (a) Any municipality or rural electric association
  providing electric service and subject to section 216B.241 may, and each public utility may,
  use five percent of the total amount to be spent on energy conservation improvements under
  section 216B.241, on:
      (1) projects in Minnesota to construct an electric generating facility that utilizes eligible
  renewable energy sources as defined in subdivision 2, such as methane or other combustible
 gases derived from the processing of plant or animal wastes, biomass fuels such as
 short-rotation woody or fibrous agricultural crops, or other renewable fuel, as its primary
 fuel source;
     (2) projects in Minnesota to install a distributed generation facility of ten megawatts or
 less of interconnected capacity that is fueled by natural gas, renewable fuels, or another
 similarly clean fuel; or
     (3) projects in Minnesota to install a qualifying solar energy project as defined in
 subdivision 2.
     (b) A municipality, rural electric association, or public utility that offers a program to
 customers to promote installing qualifying solar energy projects may request authority from
 the commissioner to exceed the five percent limit in paragraph (a), but not to exceed ten
 percent, to meet customer demand for installation of qualifying solar energy projects. In
 considering this request, the commissioner shall consider customer interest in qualifying
 solar energy and the impact on other customers. A municipality, rural electric association,
 or public utility may not participate in a qualifying solar energy project on a property unless
 it is provided evidence that all reasonable cost-effective conservation investments have
 previously been made to the property.
     (c) For a municipality, rural electric association, or public utility, projects under this
 section must be considered energy conservation improvements, as defined in section
 216B.241 216B.2402, subdivision 6.
   Sec. 93. Minnesota Statutes 2024, section 216B.2411, subdivision 2, is amended to read:
     Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in this
 subdivision and section 216B.241, subdivision 1 216B.2402, have the meanings given them.
Article 1 Sec. 93.  85
03/03/26   REVISOR  JSK/BM  26-06400
      (b) "Eligible renewable energy sources" means fuels and technologies to generate
  electricity through the use of any of the resources listed in section 216B.1691, subdivision
  1, paragraph (c), except that the incineration of wastewater sludge is not an eligible renewable
  energy source, "biomass" has the meaning provided under paragraph (c), and "solar" must
  be from a qualified solar energy project as defined in paragraph (d).
      (c) "Biomass" includes:
      (1) methane or other combustible gases derived from the processing of plant or animal
  material;
      (2) alternative fuels derived from soybean and other agricultural plant oils or animal
 fats;
     (3) combustion of barley hulls, corn, soy-based products, or other agricultural products;
     (4) wood residue from the wood products industry in Minnesota or other wood products
 such as short-rotation woody or fibrous agricultural crops;
     (5) landfill gas;
     (6) the predominantly organic components of wastewater effluent, sludge, or related
 by-products from publicly owned treatment works; and
     (7) mixed municipal solid waste, and refuse-derived fuel from mixed municipal solid
 waste.
     (d) "Qualifying solar energy project" means a qualifying solar thermal project or
 qualifying solar electric project.
     (e) "Qualifying solar thermal project" means a flat plate or evacuated tube that meets
 the requirements of section 216C.25 with a fixed orientation that collects the sun's radiant
 energy and transfers it to a storage medium for distribution as energy to heat or cool air or
 water, but does not include equipment used to heat water at a residential property (1) for
 domestic use if less than one-half of the energy used for that purpose is derived from the
 sun or (2) for use in a hot tub or swimming pool.
     (f) "Qualifying solar electric project" means:
     (1) solar electric equipment that: (i) meets the requirements of section 216C.25; (ii) has
 a peak generating capacity of 100 kilowatts or less; and (iii) is used to generate electricity
 for use in a residential, commercial, or publicly owned property or facility; and
Article 1 Sec. 93.  86
03/03/26   REVISOR  JSK/BM  26-06400
      (2) if applicable, equipment that is used to store the electricity generated by a qualified
  solar electric project under clause (1) and that is located proximate to the property or facility
  using the electricity.
      (g) "Residential property" means the principal residence of a homeowner at the time the
  solar equipment is placed in service.
    Sec. 94. Minnesota Statutes 2024, section 216B.2425, subdivision 7, is amended to read:
      Subd. 7. Transmission needed to support renewable resources. (a) Each entity subject
  to this section shall determine necessary transmission upgrades to support development of
  renewable energy resources required to meet objectives under section 216B.1691 and shall
 include those upgrades in its report under subdivision 2.
     (b) MS 2008 [Expired]
   Sec. 95. Minnesota Statutes 2024, section 216B.2427, subdivision 1, is amended to read:
     Subdivision 1. Definitions. (a) For the purposes of this section and section 216B.2428,
 the following terms have the meanings given.
     (b) "Biogas" means gas produced by the anaerobic digestion of biomass, gasification of
 biomass, or other effective conversion processes.
     (c) "Carbon capture" means the capture of greenhouse gas emissions that would otherwise
 be released into the atmosphere.
     (d) "Carbon-free resource" means an electricity generation facility whose operation does
 not contribute to statewide greenhouse gas emissions, as defined in section 216H.01,
 subdivision 2.
     (e) "Disadvantaged community" means a community in Minnesota that is:
     (1) defined as disadvantaged by the federal agency disbursing federal funds, when the
 federal agency is providing funds for an innovative resource; or
     (2) an environmental justice area, as defined under section 216B.1691, subdivision 1.
     (f) "District energy" means a heating or cooling system that is solar thermal powered or
 that uses the constant temperature of the earth or underground aquifers as a thermal exchange
 medium to heat or cool multiple buildings connected through a piping network.
     (g) "Energy efficiency" has the meaning given in section 216B.241, subdivision 1,
 paragraph (f) 216B.2402, subdivision 7, but does not include energy conservation investments
Article 1 Sec. 95.  87
03/03/26   REVISOR  JSK/BM  26-06400
  that the commissioner determines could reasonably be included in a utility's conservation
  improvement program.
      (h) "Greenhouse gas emissions" means emissions of carbon dioxide, methane, nitrous
  oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride emitted by
  anthropogenic sources within Minnesota and from the generation of electricity imported
  from outside the state and consumed in Minnesota, excluding carbon dioxide that is injected
  into geological formations to prevent its release to the atmosphere in compliance with
  applicable laws.
      (i) "Innovative resource" means biogas, renewable natural gas, power-to-hydrogen,
 power-to-ammonia, carbon capture, strategic electrification, district energy, and energy
 efficiency.
     (j) "Lifecycle greenhouse gas emissions" means the aggregate greenhouse gas emissions
 resulting from the production, processing, transmission, and consumption of an energy
 resource.
     (k) "Lifecycle greenhouse gas emissions intensity" means lifecycle greenhouse gas
 emissions per unit of energy delivered to an end user.
     (l) "Nonexempt customer" means a utility customer that has not been included in a
 utility's innovation plan under subdivision 3, paragraph (f).
     (m) "Power-to-ammonia" means the production of ammonia from hydrogen produced
 via power-to-hydrogen using a process that has a lower lifecycle greenhouse gas intensity
 than does natural gas produced from conventional geologic sources.
     (n) "Power-to-hydrogen" means the use of electricity generated by a carbon-free resource
 to produce hydrogen.
     (o) "Renewable energy" has the meaning given in section 216B.2422, subdivision 1.
     (p) "Renewable natural gas" means biogas that has been processed to be interchangeable
 with, and that has a lower lifecycle greenhouse gas intensity than, natural gas produced
 from conventional geologic sources.
     (q) "Solar thermal" has the meaning given to qualifying solar thermal project in section
 216B.2411, subdivision 2, paragraph (d).
     (r) "Strategic electrification" means the installation of electric end-use equipment in an
 existing building in which natural gas is a primary or back-up fuel source, or in a newly
Article 1 Sec. 95.  88
03/03/26   REVISOR  JSK/BM  26-06400
  constructed building in which a customer receives natural gas service for one or more
  end-uses, provided that the electric end-use equipment:
      (1) results in a net reduction in statewide greenhouse gas emissions, as defined in section
  216H.01, subdivision 2, over the life of the equipment when compared to the most efficient
  commercially available natural gas alternative; and
      (2) is installed and operated in a manner that improves the load factor of the customer's
  electric utility.
  Strategic electrification does not include investments that the commissioner determines
  could reasonably be included in the natural gas utility's conservation improvement program
 under section 216B.241.
     (s) "Thermal energy network" means a project that provides heating and cooling to
 multiple buildings connected via underground piping containing fluids that, in concert with
 heat pumps, exchange thermal energy from the earth, underground or surface waters,
 wastewater, or other heat sources.
     (t) "Total incremental cost" means the calculation of the following components of a
 utility's innovation plan approved by the commission under subdivision 2:
     (1) the sum of:
     (i) return of and on capital investments for the production, processing, pipeline
 interconnection, storage, and distribution of innovative resources;
     (ii) incremental operating costs associated with capital investments in infrastructure for
 the production, processing, pipeline interconnection, storage, and distribution of innovative
 resources;
     (iii) incremental costs to procure innovative resources from third parties;
     (iv) incremental costs to develop and administer programs; and
     (v) incremental costs for research and development related to innovative resources;
     (2) less the sum of:
     (i) value received by the utility upon the resale of innovative resources or innovative
 resource by-products, including any environmental credits included with the resale of
 renewable gaseous fuels or value received by the utility when innovative resources are used
 as vehicle fuel;
Article 1 Sec. 95.  89
03/03/26   REVISOR  JSK/BM  26-06400
      (ii) cost savings achieved through avoidance of purchases of natural gas produced from
  conventional geologic sources, including but not limited to avoided commodity purchases
  and avoided pipeline costs; and
      (iii) other revenues received by the utility that are directly attributable to the utility's
  implementation of an innovation plan.
      (u) "Utility" means a public utility, as defined in section 216B.02, subdivision 4, that
  provides natural gas sales or natural gas transportation services to customers in Minnesota.
    Sec. 96. Minnesota Statutes 2024, section 216B.2427, subdivision 2, is amended to read:
      Subd. 2. Innovation plans. (a) A natural gas utility may file an innovation plan with
 the commission. The utility's plan must include, as applicable, the following components:
     (1) the innovative resource or resources the utility plans to implement to contribute to
 meeting the state's greenhouse gas and renewable energy goals, including those established
 in section 216C.05, subdivision 2, clause (3), and section 216H.02, subdivision 1, within
 the requirements and limitations set forth in this section;
     (2) research and development investments related to innovative resources the utility
 plans to undertake;
     (3) total lifecycle greenhouse gas emissions that the utility projects are reduced or avoided
 through implementing the plan;
     (4) a comparison of the estimate in clause (3) to total emissions from natural gas use by
 utility customers in 2020;
     (5) a description of each pilot program included in the plan that is related to the
 development or provision of innovative resources, and an estimate of the total incremental
 costs to implement each pilot program;
     (6) the cost-effectiveness of innovative resources calculated from the perspective of the
 utility, society, the utility's nonparticipating customers, and the utility's participating
 customers compared to other innovative resources that could be deployed to reduce or avoid
 the same greenhouse gas emissions targeted for reduction by the utility's proposed innovative
 resource;
     (7) for any pilot program not previously approved as part of the utility's most recent
 innovation plan, a third-party analysis of:
     (i) the lifecycle greenhouse gas emissions intensity of the proposed innovative resources;
 and
Article 1 Sec. 96.  90
03/03/26   REVISOR  JSK/BM  26-06400
      (ii) the forecasted lifecycle greenhouse gas emissions reduced or avoided if the proposed
  pilot program is implemented;
      (8) an explanation of the methodology used by the utility to calculate the lifecycle
  greenhouse gas emissions avoided or reduced by each pilot program included in the plan,
  including descriptions of how the utility's method deviated, if at all, from the carbon
  accounting frameworks established by the commission under section 216B.2428;
      (9) a discussion of whether the plan supports the development and use of alternative
  agricultural products, waste reduction, reuse, or anaerobic digestion of organic waste, and
  the recovery of energy from wastewater, and, if it does, a description of the geographic
 areas of the state in which the benefits are realized;
     (10) a description of third-party systems and processes the utility plans to use to:
     (i) track the innovative resources included in the plan so that environmental benefits
 produced by the plan are not claimed for any other program; and
     (ii) verify the environmental attributes and greenhouse gas emissions intensity of
 innovative resources included in the plan;
     (11) projected local job impacts resulting from implementation of the plan and a
 description of steps the utility and the utility's energy suppliers and contractors are taking
 to maximize the availability of construction employment opportunities for local workers;
     (12) a description of how the utility proposes to recover annual total incremental costs
 of the plan;
     (13) steps the utility has taken or proposes to take to reduce the expected cost of the plan
 on low- and moderate-income residential customers and to ensure that low- and
 moderate-income residential customers benefit from innovative resources included in the
 plan;
     (14) a report on the utility's progress toward implementing the utility's previously
 approved innovation plan, if applicable;
     (15) a report of the utility's progress toward achieving the cost-effectiveness objectives
 established by the commission with respect to the utility's previously approved innovation
 plan, if applicable; and
     (16) collections of pilot programs that the utility estimates would, if implemented, provide
 approximately 50 percent, 150 percent, and 200 percent of the greenhouse gas reduction or
 avoidance benefits of the utility's proposed plan.
Article 1 Sec. 96.  91
03/03/26   REVISOR  JSK/BM  26-06400
      (b) The commission must approve, modify, or reject a plan. The commission must not
  approve an innovation plan unless the commission finds:
      (1) the size, scope, and scale of the plan produces net benefits under the cost-benefit
  framework established by the commission in section 216B.2428;
      (2) the plan promotes the use of renewable energy resources and reduces or avoids
  greenhouse gas emissions at a cost level consistent with subdivision 3;
      (3) the plan promotes local economic development;
      (4) the innovative resources included in the plan have a lower lifecycle greenhouse gas
  intensity than natural gas produced from conventional geologic sources;
     (5) the systems used to track and verify the environmental attributes of the innovative
 resources included in the plan are reasonable, considering available third-party tracking and
 verification systems;
     (6) the costs and revenues projected under the plan are reasonable in comparison to other
 innovative resources the utility could deploy to reduce greenhouse gas emissions, considering
 other benefits of the innovative resources included in the plan;
     (7) the total amount of estimated greenhouse gas emissions reduction or avoidance to
 be achieved under the plan is reasonable considering the state's greenhouse gas and renewable
 energy goals, including those established in section 216C.05, subdivision 2, clause (3), and
 section 216H.02, subdivision 1; customer cost; and the total amount of greenhouse gas
 emissions reduction or avoidance achieved under the utility's previously approved plans, if
 applicable; and
     (8) any renewable natural gas purchased by a utility under the plan that is produced from
 the anaerobic digestion of manure is certified as being produced at an agricultural livestock
 production facility that has not and does not increase the number of animal units at the
 facility solely or primarily to produce renewable natural gas for the plan.
     (c) In seeking to recover costs under a plan approved by the commission under this
 section, the utility must demonstrate to the satisfaction of the commission that the actual
 total incremental costs incurred to implement the approved innovation plan are reasonable.
 Prudently incurred costs under an approved plan, including prudently incurred costs to
 obtain the third-party analysis required in paragraph (a), clauses (6) and (7), are recoverable
 either:
     (1) under section 216B.16, subdivision 7, clause (2), via the utility's purchased gas
 adjustment;
Article 1 Sec. 96.  92
03/03/26   REVISOR  JSK/BM  26-06400
      (2) in the utility's next general rate case; or
      (3) via annual adjustments, provided that after notice and comment the commission
  determines that the costs included for recovery through rates are prudently incurred. Annual
  adjustments must include a rate of return, income taxes on the rate of return, incremental
  property taxes, incremental depreciation expense, and incremental operation and maintenance
  expenses. The rate of return must be at the level approved by the commission in the utility's
  last general rate case, unless the commission determines that a different rate of return is in
  the public interest.
      (d) The commission may not approve a utility's initial plan filed under this section unless:
     (1) 50 percent or more of the utility's costs approved by the commission for recovery
 under the plan are for the procurement and distribution of renewable natural gas, biogas,
 hydrogen produced via power-to-hydrogen, and ammonia produced via power-to-ammonia;
 and
     (2) the utility's costs approved by the commission for recovery for any pilot program to
 facilitate the development, expansion, or modification of district energy systems, as required
 under subdivision 9, represent no more than 20 percent of the total costs approved by the
 commission for recovery under the plan.
     (e) Upon approval of a utility's plan, the commission shall establish cost-effectiveness
 objectives for the plan based on the cost-benefit test for innovative resources developed
 under section 216B.2428. The cost-effectiveness objective for each plan must demonstrate
 incremental progress from the previously approved plan's cost-effectiveness objective.
     (f) A utility operating under an approved plan must file annual reports to the commission
 on work completed under the plan, including:
     (1) costs incurred;
     (2) lifecycle greenhouse gas emissions reductions or avoidance achieved;
     (3) a description of the processes used to track and verify the innovative resources and
 to retire the associated environmental attributes;
     (4) an assessment of the degree to which the lifecycle greenhouse gas accounting
 methodology is consistent with current science;
     (5) the economic impact of the plan, including job creation;
     (6) the utility's progress toward achieving the cost-effectiveness objectives established
 by the commission; and
Article 1 Sec. 96.  93
03/03/26   REVISOR  JSK/BM  26-06400
      (7) modifications to elements of the plan proposed by the utility.
      (g) When evaluating a utility's annual report, the commission may:
      (1) approve the continuation of a pilot program included in the plan, with or without
  modifications;
      (2) require the utility to file a new or modified pilot program or plan; or
      (3) disapprove the continuation of a pilot program or plan.
      (h) An innovation plan has a term of five years. A subsequent innovation plan must be
  filed no later than four years after the previous plan was approved by the commission so
  that, if approved, the new plan takes effect immediately upon expiration of the previous
 plan.
     (i) For purposes of this section and the commission's lifecycle carbon accounting
 framework and cost-benefit test for innovative resources under section 216B.2428, any
 required analysis of lifecycle greenhouse gas emissions reductions or avoidance, or lifecycle
 greenhouse gas intensity:
     (1) must include but is not limited to estimates of:
     (i) avoided or reduced greenhouse gas emissions attributable to utility operations;
     (ii) avoided or reduced greenhouse gas emissions from the production, processing, and
 transmission of fuels prior to receipt by the utility; and
     (iii) avoided or reduced greenhouse gas emissions at the point of end use;
     (2) must not count any unit of greenhouse gas emissions avoidance or reduction more
 than once; and
     (3) may, where direct measurement is not technically or economically feasible, rely on
 emissions factors, default values, or engineering estimates from a publicly accessible source
 accepted by a federal or state government agency, provided that the emissions factors,
 default values, or engineering estimates can be demonstrated to the satisfaction of the
 commission to produce a reasonable estimate of greenhouse gas emissions reductions,
 avoidance, or intensity.
     (j) Strategic electrification implemented in a plan approved by the commission under
 this section is not eligible for a financial incentive under section 216B.241, subdivision 2c.
 Electric end-use equipment installed under a plan approved by the commission under this
 section is the exclusive property of the building owner.
Article 1 Sec. 96.  94
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    Sec. 97. Minnesota Statutes 2024, section 216C.437, subdivision 19, is amended to read:
      Subd. 19. Right to rescind a residential PACE loan contract. (a) A homeowner shall
  have the right to rescind, without penalty or obligation, a residential PACE loan contract
  until midnight on the third calendar day following execution of the contract by the
  homeowner. For the purposes of this subdivision, the rescission period begins at 12:01 a.m.
  of the day following the day the contract was executed by the homeowner.
      (b) The homeowner shall notify the offering party of the rescission by:
      (1) mail or other written communications delivered to the offeror's physical address; or
      (2) by electronic means if the residential PACE administrator or residential PACE
 contractor has previously communicated with the homeowner via electronic means. Service
 by mail is effective upon deposit in the United States mail.
     (c) Any payments made by the homeowner in connection with the residential PACE
 loan or a home improvement contract for cost-effective energy improvements financed with
 a residential PACE loan must be returned to the homeowner within 20 business days after
 receipt by the administrator or the contractor by any means of notification of rescission.
     (d) When more than one homeowner in a transaction has the right to rescind, the exercise
 of the right by one consumer shall be effective as to all homeowners.
   Sec. 98. Minnesota Statutes 2024, section 216I.06, subdivision 2, is amended to read:
     Subd. 2. Public hearing. (a) No sooner than 15 days after the date the draft environmental
 impact statement is published, the commission must hold a public hearing on an application
 for a large energy infrastructure facility site or route permit. A hearing held to designate a
 site or route must be conducted by an administrative law judge from the Office of
 Administrative Hearings.
     (b) The commission may designate a portion of the hearing to be conducted as a contested
 case proceeding under chapter 14.
     (c) The commission must provide notice of the hearing at least ten days before but no
 earlier than 45 days before the date the hearing commences. The commission must provide
 notice by (1) publishing in a legal newspaper of general circulation in the county in which
 the public hearing is to be held, (2) mailing to chief executives of the regional development
 commissions, counties, organized towns, townships, and incorporated municipalities in
 which a site or route is proposed, and (3) mailing to Tribal governments, as defined by
 section 10.65, subdivision 2.
Article 1 Sec. 98.  95
03/03/26   REVISOR  JSK/BM  26-06400
      (d) Any person may appear at the hearings and offer testimony and exhibits without the
  necessity of intervening as a formal party to the proceedings. The administrative law judge
  may allow any person to ask questions of other witnesses.
      (e) The administrative law judge must hold a portion of the hearing in the area where
  the large energy infrastructure facility's location is proposed.
      (f) The commission and administrative law judge must accept written comments for at
  least 20 days after the public hearing's date.
    Sec. 99. Minnesota Statutes 2024, section 245A.03, subdivision 6, is amended to read:
      Subd. 6. Right to seek certification. Nothing in this section shall prohibit a residential
 program licensed by the commissioner of corrections to serve children, that is excluded
 from licensure under subdivision 2, paragraph (a), clause (10) (9), from seeking certification
 from the commissioner of human services under this chapter for program services for which
 certification standards have been adopted.
   Sec. 100. Minnesota Statutes 2024, section 245A.03, subdivision 7, is amended to read:
     Subd. 7. Licensing moratorium. (a) The commissioner shall not issue an initial license
 for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, which
 does not include child foster residence settings with residential program certifications for
 compliance with the Family First Prevention Services Act under section 245A.25, subdivision
 1, paragraph (a), or adult foster care licensed under Minnesota Rules, parts 9555.5105 to
 9555.6265, under this chapter for a physical location that will not be the primary residence
 of the license holder for the entire period of licensure. If a child foster residence setting that
 was previously exempt from the licensing moratorium under this paragraph has its Family
 First Prevention Services Act certification rescinded under section 245A.25, subdivision 9,
 or if a family adult foster care home license is issued during this moratorium, and the license
 holder changes the license holder's primary residence away from the physical location of
 the foster care license, the commissioner shall revoke the license according to section
 245A.07. The commissioner shall not issue an initial license for a community residential
 setting licensed under chapter 245D. When approving an exception under this paragraph,
 the commissioner shall consider the resource need determination process in paragraph (h),
 the availability of foster care licensed beds in the geographic area in which the licensee
 seeks to operate, the results of a person's choices during their annual assessment and service
 plan review, and the recommendation of the local county board. The determination by the
 commissioner is final and not subject to appeal. Exceptions to the moratorium include:
Article 1 Sec. 100.  96
03/03/26   REVISOR  JSK/BM  26-06400
(1) a license for a person in a foster care setting that is not the primary residence of the
  license holder and where at least 80 percent of the residents are 55 years of age or older;
(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or
  community residential setting licenses replacing adult foster care licenses in existence on
  December 31, 2013, and determined to be needed by the commissioner under paragraph
  (b);
(3) new foster care licenses or community residential setting licenses determined to be
  needed by the commissioner under paragraph (b) for the closure of a nursing facility, ICF/DD,
  or regional treatment center; restructuring of state-operated services that limits the capacity
 of state-operated facilities; or allowing movement to the community for people who no
 longer require the level of care provided in state-operated facilities as provided under section
 256B.092, subdivision 13, or 256B.49, subdivision 24; or
(4) new foster care licenses or community residential setting licenses determined to be
 needed by the commissioner under paragraph (b) for persons requiring hospital-level care;
 or.
(5) new community residential setting licenses determined necessary by the commissioner
 for people affected by the closure of homes with a capacity of five or six beds currently
 licensed as supervised living facilities licensed under Minnesota Rules, chapter 4665, but
 not designated as intermediate care facilities. This exception is available until June 30, 2025.
(b) The commissioner shall determine the need for newly licensed foster care homes or
 community residential settings as defined under this subdivision. As part of the determination,
 the commissioner shall consider the availability of foster care capacity in the area in which
 the licensee seeks to operate, and the recommendation of the local county board. The
 determination by the commissioner must be final. A determination of need is not required
 for a change in ownership at the same address.
(c) When an adult resident served by the program moves out of a foster home that is not
 the primary residence of the license holder according to section 256B.49, subdivision 15,
 paragraph (f), or the adult community residential setting, the county shall immediately
 inform the Department of Human Services Licensing Division. The department may decrease
 the statewide licensed capacity for adult foster care settings.
(d) Residential settings that would otherwise be subject to the decreased license capacity
 established in paragraph (c) must be exempt if the license holder's beds are occupied by
 residents whose primary diagnosis is mental illness and the license holder is certified under
 the requirements in subdivision 6a or section 245D.33.
Article 1 Sec. 100.  97
03/03/26   REVISOR  JSK/BM  26-06400
      (e) A resource need determination process, managed at the state level, using the available
  data required by section 144A.351, and other data and information must be used to determine
  where the reduced capacity determined under section 256B.493 will be implemented. The
  commissioner shall consult with the stakeholders described in section 144A.351, and employ
  a variety of methods to improve the state's capacity to meet the informed decisions of those
  people who want to move out of corporate foster care or community residential settings,
  long-term service needs within budgetary limits, including seeking proposals from service
  providers or lead agencies to change service type, capacity, or location to improve services,
  increase the independence of residents, and better meet needs identified by the long-term
 services and supports reports and statewide data and information.
     (f) At the time of application and reapplication for licensure, the applicant and the license
 holder that are subject to the moratorium or an exclusion established in paragraph (a) are
 required to inform the commissioner whether the physical location where the foster care
 will be provided is or will be the primary residence of the license holder for the entire period
 of licensure. If the primary residence of the applicant or license holder changes, the applicant
 or license holder must notify the commissioner immediately. The commissioner shall print
 on the foster care license certificate whether or not the physical location is the primary
 residence of the license holder.
     (g) License holders of foster care homes identified under paragraph (f) that are not the
 primary residence of the license holder and that also provide services in the foster care home
 that are covered by a federally approved home and community-based services waiver, as
 authorized under chapter 256S or section 256B.092 or 256B.49, must inform the human
 services licensing division that the license holder provides or intends to provide these
 waiver-funded services.
     (h) The commissioner may adjust capacity to address needs identified in section
 144A.351. Under this authority, the commissioner may approve new licensed settings or
 delicense existing settings. Delicensing of settings will be accomplished through a process
 identified in section 256B.493.
     (i) The commissioner must notify a license holder when its corporate foster care or
 community residential setting licensed beds are reduced under this section. The notice of
 reduction of licensed beds must be in writing and delivered to the license holder by certified
 mail or personal service. The notice must state why the licensed beds are reduced and must
 inform the license holder of its right to request reconsideration by the commissioner. The
 license holder's request for reconsideration must be in writing. If mailed, the request for
 reconsideration must be postmarked and sent to the commissioner within 20 calendar days
Article 1 Sec. 100.  98
03/03/26   REVISOR  JSK/BM  26-06400
  after the license holder's receipt of the notice of reduction of licensed beds. If a request for
  reconsideration is made by personal service, it must be received by the commissioner within
  20 calendar days after the license holder's receipt of the notice of reduction of licensed beds.
      (j) The commissioner shall not issue an initial license for children's residential treatment
  services licensed under Minnesota Rules, parts 2960.0580 to 2960.0700, under this chapter
  for a program that Centers for Medicare and Medicaid Services would consider an institution
  for mental diseases. Facilities that serve only private pay clients are exempt from the
  moratorium described in this paragraph. The commissioner has the authority to manage
  existing statewide capacity for children's residential treatment services subject to the
 moratorium under this paragraph and may issue an initial license for such facilities if the
 initial license would not increase the statewide capacity for children's residential treatment
 services subject to the moratorium under this paragraph.
   Sec. 101. Minnesota Statutes 2025 Supplement, section 245A.04, subdivision 1, is amended
 to read:
     Subdivision 1. Application for licensure. (a) An individual, organization, or government
 entity that is subject to licensure under section 245A.03 must apply for a license. The
 application must be made on the forms and in the manner prescribed by the commissioner.
 The commissioner shall provide the applicant with instruction in completing the application
 and provide information about the rules and requirements of other state agencies that affect
 the applicant. An applicant seeking licensure in Minnesota with headquarters outside of
 Minnesota must have a program office located within 30 miles of the Minnesota border.
 An applicant who intends to buy or otherwise acquire a program or services licensed under
 this chapter that is owned by another license holder must apply for a license under this
 chapter and comply with the application procedures in this section and section 245A.043.
     The commissioner shall act on the application within 90 working days after a complete
 application and any required reports have been received from other state agencies or
 departments, counties, municipalities, or other political subdivisions. The commissioner
 shall not consider an application to be complete until the commissioner receives all of the
 required information. If the applicant or a controlling individual is the subject of a pending
 administrative, civil, or criminal investigation, the application is not complete until the
 investigation has closed or the related legal proceedings are complete.
     When the commissioner receives an application for initial licensure that is incomplete
 because the applicant failed to submit required documents or that is substantially deficient
 because the documents submitted do not meet licensing requirements, the commissioner
Article 1 Sec. 101.  99
  03/03/26   REVISOR  JSK/BM  26-06400
  shall provide the applicant written notice that the application is incomplete or substantially
  deficient. In the written notice to the applicant the commissioner shall identify documents
  that are missing or deficient and give the applicant 45 days to resubmit a second application
  that is substantially complete. An applicant's failure to submit a substantially complete
  application after receiving notice from the commissioner is a basis for license denial under
  section 245A.043 245A.05.
      (b) An application for licensure must identify all controlling individuals as defined in
  section 245A.02, subdivision 5a, and must designate one individual to be the authorized
  agent. The application must be signed by the authorized agent and must include the authorized
 agent's first, middle, and last name; mailing address; and email address. By submitting an
 application for licensure, the authorized agent consents to electronic communication with
 the commissioner throughout the application process. The authorized agent must be
 authorized to accept service on behalf of all of the controlling individuals. A government
 entity that holds multiple licenses under this chapter may designate one authorized agent
 for all licenses issued under this chapter or may designate a different authorized agent for
 each license. Service on the authorized agent is service on all of the controlling individuals.
 It is not a defense to any action arising under this chapter that service was not made on each
 controlling individual. The designation of a controlling individual as the authorized agent
 under this paragraph does not affect the legal responsibility of any other controlling individual
 under this chapter.
     (c) An applicant or license holder must have a policy that prohibits license holders,
 employees, subcontractors, and volunteers, when directly responsible for persons served
 by the program, from abusing prescription medication or being in any manner under the
 influence of a chemical that impairs the individual's ability to provide services or care. The
 license holder must train employees, subcontractors, and volunteers about the program's
 drug and alcohol policy before the employee, subcontractor, or volunteer has direct contact,
 as defined in section 245C.02, subdivision 11, with a person served by the program.
     (d) An applicant and license holder must have a program grievance procedure that permits
 persons served by the program and their authorized representatives to bring a grievance to
 the highest level of authority in the program.
     (e) The commissioner may limit communication during the application process to the
 authorized agent or the controlling individuals identified on the license application and for
 whom a background study was initiated under chapter 245C. Upon implementation of the
 provider licensing and reporting hub, applicants and license holders must use the hub in the
 manner prescribed by the commissioner. The commissioner may require the applicant,
  Article 1 Sec. 101.  100
  03/03/26   REVISOR  JSK/BM  26-06400
  except for child foster care, to demonstrate competence in the applicable licensing
  requirements by successfully completing a written examination. The commissioner may
  develop a prescribed written examination format.
      (f) When an applicant is an individual, the applicant must provide:
      (1) the applicant's taxpayer identification numbers including the Social Security number
  or Minnesota tax identification number, and federal employer identification number if the
  applicant has employees;
      (2) at the request of the commissioner, a copy of the most recent filing with the secretary
  of state that includes the complete business name, if any;
     (3) if doing business under a different name, the doing business as (DBA) name, as
 registered with the secretary of state;
     (4) if applicable, the applicant's National Provider Identifier (NPI) number and Unique
 Minnesota Provider Identifier (UMPI) number; and
     (5) at the request of the commissioner, the notarized signature of the applicant or
 authorized agent.
     (g) When an applicant is an organization, the applicant must provide:
     (1) the applicant's taxpayer identification numbers including the Minnesota tax
 identification number and federal employer identification number;
     (2) at the request of the commissioner, a copy of the most recent filing with the secretary
 of state that includes the complete business name, and if doing business under a different
 name, the doing business as (DBA) name, as registered with the secretary of state;
     (3) the first, middle, and last name, and address for all individuals who will be controlling
 individuals, including all officers, owners, and managerial officials as defined in section
 245A.02, subdivision 5a, and the date that the background study was initiated by the applicant
 for each controlling individual;
     (4) if applicable, the applicant's NPI number and UMPI number;
     (5) the documents that created the organization and that determine the organization's
 internal governance and the relations among the persons that own the organization, have
 an interest in the organization, or are members of the organization, in each case as provided
 or authorized by the organization's governing statute, which may include a partnership
 agreement, bylaws, articles of organization, organizational chart, and operating agreement,
 or comparable documents as provided in the organization's governing statute; and
  Article 1 Sec. 101.  101
  03/03/26   REVISOR  JSK/BM  26-06400
      (6) the notarized signature of the applicant or authorized agent.
      (h) When the applicant is a government entity, the applicant must provide:
      (1) the name of the government agency, political subdivision, or other unit of government
  seeking the license and the name of the program or services that will be licensed;
      (2) the applicant's taxpayer identification numbers including the Minnesota tax
  identification number and federal employer identification number;
      (3) a letter signed by the manager, administrator, or other executive of the government
  entity authorizing the submission of the license application; and
      (4) if applicable, the applicant's NPI number and UMPI number.
     (i) At the time of application for licensure or renewal of a license under this chapter, the
 applicant or license holder must acknowledge on the form provided by the commissioner
 if the applicant or license holder elects to receive any public funding reimbursement from
 the commissioner for services provided under the license that:
     (1) the applicant's or license holder's compliance with the provider enrollment agreement
 or registration requirements for receipt of public funding may be monitored by the
 commissioner as part of a licensing investigation or licensing inspection; and
     (2) noncompliance with the provider enrollment agreement or registration requirements
 for receipt of public funding that is identified through a licensing investigation or licensing
 inspection, or noncompliance with a licensing requirement that is a basis of enrollment for
 reimbursement for a service, may result in:
     (i) a correction order or a conditional license under section 245A.06, or sanctions under
 section 245A.07;
     (ii) nonpayment of claims submitted by the license holder for public program
 reimbursement;
     (iii) recovery of payments made for the service;
     (iv) disenrollment in the public payment program; or
     (v) other administrative, civil, or criminal penalties as provided by law.
   Sec. 102. Minnesota Statutes 2024, section 245A.07, subdivision 2a, is amended to read:
     Subd. 2a. Immediate suspension expedited hearing. (a) Within five working days of
 receipt of the license holder's timely appeal, the commissioner shall request assignment of
 an administrative law judge. The request must include a proposed date, time, and place of
  Article 1 Sec. 102.  102
  03/03/26   REVISOR  JSK/BM  26-06400
  a hearing. A hearing must be conducted by an administrative law judge within 30 calendar
  days of the request for assignment, unless an extension is requested by either party and
  granted by the administrative law judge for good cause. The commissioner shall issue a
  notice of hearing by certified mail or personal service at least ten working days before the
  hearing. The scope of the hearing shall be limited solely to the issue of whether the temporary
  immediate suspension should remain in effect pending the commissioner's final order under
  section 245A.08, regarding a licensing sanction issued under subdivision 3 following the
  immediate suspension. For suspensions under subdivision 2, paragraph (a), clause (1), the
  burden of proof in expedited hearings under this subdivision shall be limited to the
 commissioner's demonstration that reasonable cause exists to believe that the license holder's
 actions or failure to comply with applicable law or rule poses, or the actions of other
 individuals or conditions in the program poses an imminent risk of harm to the health, safety,
 or rights of persons served by the program. "Reasonable cause" means there exist specific
 articulable facts or circumstances which provide the commissioner with a reasonable
 suspicion that there is an imminent risk of harm to the health, safety, or rights of persons
 served by the program. When the commissioner has determined there is reasonable cause
 to order the temporary immediate suspension of a license based on a violation of safe sleep
 requirements, as defined in section 245A.1435, the commissioner is not required to
 demonstrate that an infant died or was injured as a result of the safe sleep violations. For
 suspensions under subdivision 2, paragraph (a), clause (2), the burden of proof in expedited
 hearings under this subdivision shall be limited to the commissioner's demonstration by a
 preponderance of the evidence that, since the license was revoked, the license holder
 committed additional violations of law or rule which may adversely affect the health or
 safety of persons served by the program.
     (b) The administrative law judge shall issue findings of fact, conclusions, and a
 recommendation within ten working days from the date of hearing. The parties shall have
 ten calendar days to submit exceptions to the administrative law judge's report. The record
 shall close at the end of the ten-day period for submission of exceptions. The commissioner's
 final order shall be issued within ten working days from the close of the record. When an
 appeal of a temporary immediate suspension is withdrawn or dismissed, the commissioner
 shall issue a final order affirming the temporary immediate suspension within ten calendar
 days of the commissioner's receipt of the withdrawal or dismissal. Within 90 calendar days
 after an immediate suspension has been issued and the license holder has not submitted a
 timely appeal under subdivision 2, paragraph (b), or within 90 calendar days after a final
 order affirming an immediate suspension, the commissioner shall determine:
  Article 1 Sec. 102.  103
  03/03/26   REVISOR  JSK/BM  26-06400
      (1) whether a final licensing sanction shall be issued under subdivision 3, paragraph (a),
  clauses (1) to (6) (5). The license holder shall continue to be prohibited from operation of
  the program during this 90-day period; or
      (2) whether the outcome of related, ongoing investigations or judicial proceedings are
  necessary to determine if a final licensing sanction under subdivision 3, paragraph (a),
  clauses (1) to (6) (5), will be issued and whether persons served by the program remain at
  an imminent risk of harm during the investigation period or proceedings. If so, the
  commissioner shall issue a suspension order under subdivision 3, paragraph (a), clause (7)
  (6).
     (c) When the final order under paragraph (b) affirms an immediate suspension, or the
 license holder does not submit a timely appeal of the immediate suspension, and a final
 licensing sanction is issued under subdivision 3 and the license holder appeals that sanction,
 the license holder continues to be prohibited from operation of the program pending a final
 commissioner's order under section 245A.08, subdivision 5, regarding the final licensing
 sanction.
     (d) The license holder shall continue to be prohibited from operation of the program
 while a suspension order issued under paragraph (b), clause (2), remains in effect.
     (e) For suspensions under subdivision 2, paragraph (a), clause (3), the burden of proof
 in expedited hearings under this subdivision shall be limited to the commissioner's
 demonstration by a preponderance of the evidence that a criminal complaint and warrant
 or summons was issued for the license holder that was not dismissed, and that the criminal
 charge is an offense that involves fraud or theft against a program administered by the
 commissioner.
   Sec. 103. Minnesota Statutes 2025 Supplement, section 245A.191, is amended to read:
     245A.191 PROVIDER ELIGIBILITY FOR PAYMENTS FROM THE
 BEHAVIORAL HEALTH FUND.
     (a) When a substance use disorder treatment provider licensed under this chapter, and
 governed by the standards of chapter 245G or Minnesota Rules, parts 2960.0430 to
 2960.0490, agrees to meet the applicable requirements under sections 245B.0505 254B.0505
 and 254B.0507 to be eligible for enhanced funding from the behavioral health fund, the
 applicable requirements under sections 254B.0501 to 254B.0507 are also licensing
 requirements that may be monitored for compliance through licensing investigations and
 licensing inspections.
  Article 1 Sec. 103.  104
  03/03/26   REVISOR  JSK/BM  26-06400
      (b) Noncompliance with the requirements identified under paragraph (a) may result in:
      (1) a correction order or a conditional license under section 245A.06, or sanctions under
  section 245A.07;
      (2) nonpayment of claims submitted by the license holder for public program
  reimbursement;
      (3) recovery of payments made for the service;
      (4) disenrollment in the public payment program; or
      (5) other administrative, civil, or criminal penalties as provided by law.
    Sec. 104. Minnesota Statutes 2025 Supplement, section 245C.08, subdivision 1, is amended
 to read:
     Subdivision 1. Background studies conducted by Department of Human Services. (a)
 For a background study conducted by the Department of Human Services, the commissioner
 shall review:
     (1) information related to names of substantiated perpetrators of maltreatment of
 vulnerable adults that has been received by the commissioner as required under section
 626.557, subdivision 9c, paragraph (j);
     (2) the commissioner's records relating to the maltreatment of minors in licensed
 programs, and from findings of maltreatment of minors as indicated through the social
 service information system;
     (3) information from juvenile courts as required for studies under this chapter when
 there is reasonable cause;
     (4) information from the Bureau of Criminal Apprehension, including information
 regarding a background study subject's registration in Minnesota as a predatory offender
 under section 243.166;
     (5) except as provided in clause (6), information received as a result of submission of
 fingerprints for a national criminal history record check, as defined in section 245C.02,
 subdivision 13c, when the commissioner has reasonable cause for a national criminal history
 record check as defined under section 245C.02, subdivision 15a, or as required under section
 144.057, subdivision 1, clause (2);
     (6) for a background study related to a child foster family setting application for licensure,
 foster residence settings, children's residential facilities, a transfer of permanent legal and
  Article 1 Sec. 104.  105
  03/03/26   REVISOR  JSK/BM  26-06400
  physical custody of a child under sections 260C.503 to 260C.515, or adoptions, and for a
  background study required for family child care, certified license-exempt child care, child
  care centers, and legal nonlicensed child care authorized under chapter 142E, the
  commissioner shall also review:
      (i) information from the child abuse and neglect registry for any state in which the
  background study subject has resided for the past five years;
      (ii) information received from a national criminal history record check, if authorized for
  the study; and
      (iii) when the background study subject is 18 years of age or older or a minor under
 section 245C.05, subdivision 5a, paragraph (d), for licensed family child care, certified
 license-exempt child care, licensed child care centers, and legal nonlicensed child care
 authorized under chapter 142E, information obtained using non-fingerprint-based data
 including information from the criminal and sex offender registries for any state in which
 the background study subject resided for the past five years and information from the national
 crime information database and the national sex offender registry;
     (7) for a background study required for family child care, certified license-exempt child
 care centers, licensed child care centers, and legal nonlicensed child care authorized under
 chapter 142E, the background study shall also include, to the extent practicable, a name and
 date-of-birth search of the National Sex Offender Public website; and
     (8) for a background study required for treatment programs for sexual psychopathic
 personalities or sexually dangerous persons, the background study shall only include a
 review of the information required under paragraph (a), clauses (1) to (4).
     (b) Except as otherwise provided in this paragraph, notwithstanding expungement by a
 court, the commissioner may consider information obtained under paragraph (a), clauses
 (3) and (4), unless:
     (1) the commissioner received notice of the petition for expungement and the court order
 for expungement is directed specifically to the commissioner; or
     (2) the commissioner received notice of the expungement order issued pursuant to section
 609A.017, 609A.025, or 609A.035, and the order for expungement is directed specifically
 to the commissioner.
 The commissioner may not consider information obtained under paragraph (a), clauses (3)
 and (4), or from any other source that identifies a violation of chapter 152 without
 determining if the offense involved the possession of marijuana or tetrahydrocannabinol
  Article 1 Sec. 104.  106
  03/03/26   REVISOR  JSK/BM  26-06400
  and, if so, whether the person received a grant of expungement or order of expungement,
  or the person was resentenced to a lesser offense. If the person received a grant of
  expungement or order of expungement, the commissioner may not consider information
  related to that violation but may consider any other relevant information arising out of the
  same incident.
      (c) The commissioner shall also review criminal case information received according
  to section 245C.04, subdivision 4a, from the Minnesota court information system that relates
  to individuals who have already been studied under this chapter and who remain affiliated
  with the agency that initiated the background study.
     (d) When the commissioner has reasonable cause to believe that the identity of a
 background study subject is uncertain, the commissioner may require the subject to provide
 a set of classifiable fingerprints for purposes of completing a fingerprint-based record check
 with the Bureau of Criminal Apprehension. Fingerprints collected under this paragraph
 shall not be saved by the commissioner after they have been used to verify the identity of
 the background study subject against the particular criminal record in question.
     (e) The commissioner may inform the entity that initiated a background study under
 NETStudy 2.0 of the status of processing of the subject's fingerprints.
   Sec. 105. Minnesota Statutes 2024, section 245D.03, subdivision 2, is amended to read:
     Subd. 2. Relationship to other standards governing home and community-based
 services. (a) A license holder governed by this chapter is also subject to the licensure
 requirements under chapter 245A.
     (b) This chapter does not apply to corporate or family child foster care homes that do
 not provide services licensed under this chapter.
     (c) A family adult foster care site controlled by a license holder providing services
 governed by this chapter is exempt from compliance with Minnesota Rules, parts 9555.6185;
 9555.6225, subpart 8; 9555.6245; 9555.6255; and 9555.6265. These exemptions apply to
 family adult foster care homes where at least one resident is receiving residential supports
 and services licensed according to this chapter. This chapter does not apply to family adult
 foster care homes that do not provide services licensed under this chapter.
     (d) A license holder providing services licensed according to this chapter in a supervised
 living facility is exempt from compliance with section 245D.04.
     (e) A license holder providing residential services to persons in an ICF/DD is exempt
 from compliance with sections 245D.04; 245D.05, subdivision 1b; 245D.06, subdivision
  Article 1 Sec. 105.  107
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  2, clauses (4) and (5); 245D.071, subdivisions 4 and 5; 245D.081, subdivision 2; 245D.09,
  subdivision 7; 245D.095, subdivision 2; and 245D.11, subdivision 3.
      (f) A license holder providing homemaker services licensed according to this chapter
  and registered according to chapter 144A is exempt from compliance with section 245D.04.
      (g) Nothing in this chapter prohibits a license holder from concurrently serving persons
  without disabilities or people who are or are not age 65 and older, provided this chapter's
  standards are met as well as other relevant standards.
      (h) The documentation required under sections 245D.07 and 245D.071 must meet the
  individual program plan requirements identified in section 256B.092 or successor provisions.
   Sec. 106. Minnesota Statutes 2024, section 245F.03, is amended to read:
     245F.03 APPLICATION.
     (a) This chapter establishes minimum standards for withdrawal management programs
 licensed by the commissioner that serve one or more unrelated persons.
     (b) This chapter does not apply to a withdrawal management program licensed as a
 hospital under sections 144.50 to 144.581. A withdrawal management program located in
 a hospital licensed under sections 144.50 to 144.581 that chooses to be licensed under this
 chapter is deemed to be in compliance with section 245F.13.
     (c) Minnesota Rules, parts 9530.6600 to 9530.6655, do not apply to withdrawal
 management programs licensed under this chapter.
   Sec. 107. Minnesota Statutes 2024, section 245G.11, subdivision 1, is amended to read:
     Subdivision 1. General qualifications. (a) All staff members who have direct contact
 must be 18 years of age or older.
   Sec. 108. Minnesota Statutes 2024, section 245G.22, subdivision 6, is amended to read:
     Subd. 6. Criteria for unsupervised use. (a) To limit the potential for diversion of
 medication used for the treatment of opioid use disorder to the illicit market, medication
 dispensed to a client for unsupervised use shall be subject to the requirements of this
 subdivision. Any client in an opioid treatment program may receive their individualized
 take-home doses as ordered for days that the clinic is closed for business, on one weekend
 day (e.g., Sunday) and state and federal holidays, no matter their length of time in treatment,
 as allowed under Code of Federal Regulations, title 42, part section 8.12 (i)(1).
  Article 1 Sec. 108.  108
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      (b) For take-home doses beyond those allowed by paragraph (a), a practitioner must
  review and document the criteria in the Code of Federal Regulations, title 42, part section
  8.12 (i)(2), when determining whether dispensing medication for a client's unsupervised
  use is safe and it is appropriate to implement, increase, or extend the amount of time between
  visits to the program.
      (c) The determination, including the basis of the determination must be documented by
  a practitioner in the client's medical record.
    Sec. 109. Minnesota Statutes 2024, section 253B.02, subdivision 4c, is amended to read:
      Subd. 4c. County of financial responsibility. (a) "County of financial responsibility"
 has the meaning specified in chapter 256G. This definition does not require that the person
 qualifies for or receives any other form of financial, medical, or social service assistance
 in addition to the services under this chapter. Disputes about the county of financial
 responsibility shall be submitted for determination to the executive board through the
 commissioner of human services in the manner prescribed in section 256G.09.
     (b) For purposes of proper venue for filing a petition pursuant to section 253B.064,
 subdivision 1, paragraph (a); 253B.07, subdivision 1, paragraph (a);, or 253D.07, where
 the designated agency of a county has determined that it is the county of financial
 responsibility, then that county is the county of financial responsibility until a different
 determination is made by the appropriate county agencies or the commissioner pursuant to
 chapter 256G.
   Sec. 110. Minnesota Statutes 2025 Supplement, section 253B.10, subdivision 1, is amended
 to read:
     Subdivision 1. Administrative requirements. (a) When a person is committed, the
 court shall issue a warrant or an order committing the patient to the custody of the head of
 the treatment facility, state-operated treatment program, or community-based treatment
 program. The warrant or order shall state that the patient meets the statutory criteria for
 civil commitment.
     (b) The executive board shall prioritize civilly committed patients being admitted from
 jail or a correctional institution or who are referred to a state-operated treatment facility for
 competency attainment or a competency examination under sections 611.40 to 611.59 for
 admission to a medically appropriate state-operated direct care and treatment bed based on
 the decisions of physicians in the executive medical director's office, using a priority
  Article 1 Sec. 110.  109
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  admissions framework. The framework must account for a range of factors for priority
  admission, including but not limited to:
      (1) the length of time the person has been on a waiting list for admission to a
  state-operated direct care and treatment program since the date of the order under paragraph
  (a), or the date of an order issued under sections 611.40 to 611.59;
      (2) the intensity of the treatment the person needs, based on medical acuity;
      (3) the person's revoked provisional discharge status;
      (4) the person's safety and safety of others in the person's current environment;
      (5) whether the person has access to necessary or court-ordered treatment;
     (6) distinct and articulable negative impacts of an admission delay on the facility referring
 the individual for treatment; and
     (7) any relevant federal prioritization requirements.
 Patients described in this paragraph must be admitted to a state-operated treatment program
 within the timelines specified in section 253B.1005. The commitment must be ordered by
 the court as provided in section 253B.09, subdivision 1, paragraph (d). Patients committed
 to a secure treatment facility or less restrictive setting as ordered by the court under section
 253B.18, subdivisions 1 and 2, must be prioritized for admission to a state-operated treatment
 program using the priority admissions framework in this paragraph.
     (c) Upon the arrival of a patient at the designated treatment facility, state-operated
 treatment program, or community-based treatment program, the head of the facility or
 program shall retain the duplicate of the warrant and endorse receipt upon the original
 warrant or acknowledge receipt of the order. The endorsed receipt or acknowledgment must
 be filed in the court of commitment. After arrival, the patient shall be under the control and
 custody of the head of the facility or program.
     (d) Copies of the petition for commitment, the court's findings of fact and conclusions
 of law, the court order committing the patient, the report of the court examiners, and the
 prepetition report, and any medical and behavioral information available shall be provided
 at the time of admission of a patient to the designated treatment facility or program to which
 the patient is committed. Upon a patient's referral to the executive board for admission
 pursuant to subdivision 1, paragraph (b), any inpatient hospital, treatment facility, jail, or
 correctional facility that has provided care or supervision to the patient in the previous two
 years shall, when requested by the treatment facility or executive board, provide copies of
 the patient's medical and behavioral records to the executive board for purposes of
  Article 1 Sec. 110.  110
  03/03/26   REVISOR  JSK/BM  26-06400
  preadmission planning. This information shall be provided by the head of the treatment
  facility to treatment facility staff in a consistent and timely manner and pursuant to all
  applicable laws.
      (e) Within four business days of determining which state-operated direct care and
  treatment program or programs are appropriate for an individual, the executive medical
  director or a designee must notify the source of the referral and the responsible county
  human services agency, the individual being ordered to direct care and treatment, and the
  district court that issued the order of the determination. The initial notice shall include the
  individual's relative priority status by quartile and contact information for the Direct Care
 and Treatment central preadmissions office. Detailed information on factors impacting the
 individual's priority status is available from the central preadmissions office upon request,
 consistent with section 13.04. Any interested person or the individual being ordered to direct
 care and treatment may provide additional information to or request updated priority status
 about the individual from the executive medical director or a designee while the individual
 is awaiting admission. Priority status information for an individual will only be disclosed
 to interested persons who are legally authorized to receive private information about the
 individual, including the designated agency and the facility to which the individual is
 awaiting admission. Specific updated priority status information may be withheld from the
 individual being ordered to direct care and treatment if, in the judgment of the physicians
 in the executive medical director's office, the information will jeopardize the individual's
 health or well-being.
     (f) For any individual not admitted to a state-operated direct care and treatment program
 within 60 business days after the initial notice under paragraph (e), the executive medical
 director or a designee must provide additional notice to the responsible county human
 services agency, the individual being ordered to direct care and treatment, and the district
 court that issued the order of the determination. The additional notice must include updates
 to the same information provided in the previous notice.
     (g) When an available bed has been identified, the executive medical director or a
 designee must notify the designated agency and the facility where the individual is awaiting
 admission that the individual has been accepted for admission to a particular state-operated
 direct care and treatment program and the earliest possible date the admission can occur.
 The designated agency or facility where the individual is awaiting admission must transport
 the individual to the admitting direct care and treatment program no more than 48 hours
 after the offered admission date.
  Article 1 Sec. 110.  111
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    Sec. 111. Minnesota Statutes 2025 Supplement, section 254B.0507, subdivision 2, is
  amended to read:
      Subd. 2. Child care. (a) Programs that serve parents with their children are eligible for
  an enhanced payment rate if the program:
      (1) provides on-site child care during the hours of treatment activity that:
      (i) is licensed under chapter 245A as a child care center under Minnesota Rules, chapter
  9503; or
      (ii) is licensed under chapter 245A and sections 245G.01 to 245G.19; or
      (2) arranges for off-site child care during hours of treatment activity at a facility that is
 licensed under chapter 245A 142B as:
     (i) a child care center under Minnesota Rules, chapter 9503; or
     (ii) a family child care home under Minnesota Rules, chapter 9502.
     (b) In order to be eligible for a higher rate under this subdivision, a program that provides
 arrangements for off-site child care must maintain current documentation at the substance
 use disorder facility of the child care provider's current licensure to provide child care
 services.
   Sec. 112. Minnesota Statutes 2024, section 256.017, subdivision 2, is amended to read:
     Subd. 2. Definitions. The following terms have the meanings given for purposes of this
 section.
     (a) "Administrative penalty" means an adjustment against the county agency's state and
 federal benefit and federal administrative reimbursement when the commissioner determines
 that the county agency is not in compliance with the policies and procedures established by
 the commissioner.
     (b) "Commissioner" means the commissioner of human services for programs listed in
 subdivision 1, paragraph (b) (a), and the commissioner of children, youth, and families for
 programs listed in subdivision 1, paragraph (c) (b).
     (c) "Quality control case penalty" means an adjustment against the county agency's
 federal administrative reimbursement and state and federal benefit reimbursement when
 the commissioner determines through a quality control review that the county agency has
 made incorrect payments, terminations, or denials of benefits as determined by state quality
 control procedures for the aid to families with dependent children program formerly codified
  Article 1 Sec. 112.  112
  03/03/26   REVISOR  JSK/BM  26-06400
  in sections 256.72 to 256.87, Minnesota family investment program, SNAP, or medical
  assistance programs, or any other programs for which the commissioner has developed a
  quality control system. Quality control case penalties apply only to agency errors as defined
  by state quality control procedures.
      (d) "Quality control/quality assurance" means a review system of a statewide random
  sample of cases, designed to provide data on program outcomes and the accuracy with which
  state and federal policies are being applied in issuing benefits and as a fiscal audit to ensure
  the accuracy of expenditures. The quality control/quality assurance system is administered
  by the department. For the aid to families with dependent children program formerly codified
 in sections 256.72 to 256.87, SNAP, and medical assistance, the quality control system is
 that required by federal regulation, or those developed by the commissioner.
   Sec. 113. Minnesota Statutes 2024, section 256.043, subdivision 1, is amended to read:
     Subdivision 1. Establishment. (a) The opiate epidemic response fund is established in
 the state treasury. The commissioner of management and budget shall establish within the
 opiate epidemic response fund two accounts: (1) a registration and license fee account; and
 (2) a settlement account. Beginning in fiscal year 2021, for each fiscal year, the fund shall
 be administered according to this section.
     (b) The commissioner of management and budget shall deposit into the registration and
 license fee account the registration fee assessed by the Board of Pharmacy under section
 151.066 and the license fees identified in section 151.065, subdivision 7, paragraphs
 paragraph (b) and (c).
     (c) The commissioner of management and budget shall deposit into the settlement account
 any money received by the state resulting from a settlement agreement or an assurance of
 discontinuance entered into by the attorney general of the state, or a court order in litigation
 brought by the attorney general of the state, on behalf of the state or a state agency, related
 to alleged violations of consumer fraud laws in the marketing, sale, or distribution of opioids
 in this state or other alleged illegal actions that contributed to the excessive use of opioids,
 pursuant to section 16A.151, subdivision 2, paragraph (f).
   Sec. 114. Minnesota Statutes 2024, section 256.9657, subdivision 1a, is amended to read:
     Subd. 1a. Waiver request. The commissioner shall request a waiver from the secretary
 of health and human services to: (1) exclude from the surcharge under subdivision 1 a
 nursing home that provides all services free of charge; (2) make a pro rata reduction in the
 surcharge paid by a nursing home that provides a portion of its services free of charge; and
  Article 1 Sec. 114.  113
  03/03/26   REVISOR  JSK/BM  26-06400
  (3) limit the hospital surcharge to acute care hospitals only. If a waiver is approved under
  this subdivision, the commissioner shall adjust the nursing home surcharge accordingly.
  Any waivers granted by the federal government shall be effective on or after October 1,
  1992.
    Sec. 115. Minnesota Statutes 2024, section 256.9657, subdivision 3, is amended to read:
      Subd. 3. Surcharge on HMOs and community integrated service networks. (a)
  Effective October 1, 1992, Each health maintenance organization with a certificate of
  authority issued by the commissioner of health under chapter 62D and each community
  integrated service network licensed by the commissioner under chapter 62N shall pay to
 the commissioner of human services a surcharge equal to six-tenths of one percent of the
 total premium revenues of the health maintenance organization or community integrated
 service network as reported to the commissioner of health according to the schedule in
 subdivision 4.
     (b) For purposes of this subdivision, total premium revenue means:
     (1) premium revenue recognized on a prepaid basis from individuals and groups for
 provision of a specified range of health services over a defined period of time which is
 normally one month, excluding premiums paid to a health maintenance organization or
 community integrated service network from the Federal Employees Health Benefit Program;
     (2) premiums from Medicare wraparound subscribers for health benefits which
 supplement Medicare coverage;
     (3) Medicare revenue, as a result of an arrangement between a health maintenance
 organization or a community integrated service network and the Centers for Medicare and
 Medicaid Services of the federal Department of Health and Human Services, for services
 to a Medicare beneficiary, excluding Medicare revenue that states are prohibited from taxing
 under sections 1854, 1860D-12, and 1876 of title XVIII of the federal Social Security Act,
 codified as United States Code, title 42, sections 1395mm, 1395w-112, and 1395w-24,
 respectively, as they may be amended from time to time; and
     (4) medical assistance revenue, as a result of an arrangement between a health
 maintenance organization or community integrated service network and a Medicaid state
 agency, for services to a medical assistance beneficiary.
     If advance payments are made under clause (1) or (2) to the health maintenance
 organization or community integrated service network for more than one reporting period,
 the portion of the payment that has not yet been earned must be treated as a liability.
  Article 1 Sec. 115.  114
  03/03/26   REVISOR  JSK/BM  26-06400
      (c) When a health maintenance organization or community integrated service network
  merges or consolidates with or is acquired by another health maintenance organization or
  community integrated service network, the surviving corporation or the new corporation
  shall be responsible for the annual surcharge originally imposed on each of the entities or
  corporations subject to the merger, consolidation, or acquisition, regardless of whether one
  of the entities or corporations does not retain a certificate of authority under chapter 62D
  or a license under chapter 62N.
      (d) Effective June 15 of each year, the surviving corporation's or the new corporation's
  surcharge shall be based on the revenues earned in the previous calendar year by all of the
 entities or corporations subject to the merger, consolidation, or acquisition regardless of
 whether one of the entities or corporations does not retain a certificate of authority under
 chapter 62D or a license under chapter 62N until the total premium revenues of the surviving
 corporation include the total premium revenues of all the merged entities as reported to the
 commissioner of health.
     (e) When a health maintenance organization or community integrated service network,
 which is subject to liability for the surcharge under this chapter, transfers, assigns, sells,
 leases, or disposes of all or substantially all of its property or assets, liability for the surcharge
 imposed by this chapter is imposed on the transferee, assignee, or buyer of the health
 maintenance organization or community integrated service network.
     (f) In the event a health maintenance organization or community integrated service
 network converts its licensure to a different type of entity subject to liability for the surcharge
 under this chapter, but survives in the same or substantially similar form, the surviving
 entity remains liable for the surcharge regardless of whether one of the entities or corporations
 does not retain a certificate of authority under chapter 62D or a license under chapter 62N.
     (g) The surcharge assessed to a health maintenance organization or community integrated
 service network ends when the entity ceases providing services for premiums and the
 cessation is not connected with a merger, consolidation, acquisition, or conversion.
   Sec. 116. Minnesota Statutes 2024, section 256.975, subdivision 7d, is amended to read:
     Subd. 7d. Payment for preadmission screening. (a) The Department of Human Services
 shall provide funding for preadmission screening to the Minnesota Board on Aging to cover
 screener salaries and expenses to provide the services described in subdivisions 7a to 7c.
 The Minnesota Board on Aging shall:
  Article 1 Sec. 116.  115
  03/03/26   REVISOR  JSK/BM  26-06400
      (1) employ, or contract with other agencies to employ, within the limits of available
  funding, sufficient personnel to provide preadmission screening and level of care
  determination services; and
      (2) seek to maximize federal funding for the service as provided under section 256.01,
  subdivision 2, paragraph (aa) (z).
      (b) The Department of Human Services shall provide funding for preadmission screening
  follow-up to the Disability Hub for the under-60 population to cover options counseling
  salaries and expenses to provide the services described in subdivisions 7a to 7c. The
  Disability Hub shall:
     (1) employ, or contract with other agencies to employ, within the limits of available
 funding, sufficient personnel to provide preadmission screening follow-up services; and
     (2) seek to maximize federal funding for the service as provided under section 256.01,
 subdivision 2, paragraph (aa) (z).
   Sec. 117. Minnesota Statutes 2024, section 256.975, subdivision 9, is amended to read:
     Subd. 9. Prescription drug assistance. The Minnesota Board on Aging shall establish
 and administer a prescription drug assistance program to assist individuals in accessing
 programs offered by pharmaceutical manufacturers that provide free or discounted
 prescription drugs or provide coverage for prescription drugs. The board shall use computer
 software programs to:
     (1) list eligibility requirements for pharmaceutical assistance programs offered by
 manufacturers;
     (2) list drugs that are included in a supplemental rebate contract between the
 commissioner and a pharmaceutical manufacturer under section 256.01, subdivision 2,
 paragraph (u) (t); and
     (3) link individuals with the pharmaceutical assistance programs most appropriate for
 the individual. The board shall make information on the prescription drug assistance program
 available to interested individuals and health care providers and shall coordinate the program
 with the statewide information and assistance service provided through the Senior LinkAge
 Line under subdivision 7.
  Article 1 Sec. 117.  116
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 118. Minnesota Statutes 2024, section 256B.04, subdivision 15, is amended to read:
      Subd. 15. Utilization review. (a) The commissioner must establish on a statewide basis
  a new program to safeguard against unnecessary or inappropriate use of medical assistance
  services, against excess payments, against unnecessary or inappropriate hospital admissions
  or lengths of stay, and against underutilization of services in prepaid health plans, long-term
  care facilities, or any health care delivery system subject to fixed rate reimbursement. In
  implementing the program, the state agency shall utilize both prepayment and postpayment
  review systems to determine if utilization is reasonable and necessary. The determination
  of whether services are reasonable and necessary shall be made by the commissioner in
 consultation with a professional services advisory group or health care consultant appointed
 by the commissioner.
     (b) Contracts entered into for purposes of meeting the requirements of this subdivision
 shall not be subject to the set-aside provisions of chapter 16C.
     (c) A recipient aggrieved by the commissioner's termination of services or denial of
 future services may appeal pursuant to section 256.045. Unless otherwise provided by law,
 a vendor aggrieved by the commissioner's determination that services provided were not
 reasonable or necessary may appeal pursuant to the contested case procedures of chapter
 14. To appeal, the vendor shall notify the commissioner in writing within 30 days of receiving
 the commissioner's notice. The appeal request shall specify each disputed item, the reason
 for the dispute, an estimate of the dollar amount involved for each disputed item, the
 computation that the vendor believes is correct, the authority in statute or rule upon which
 the vendor relies for each disputed item, the name and address of the person or firm with
 whom contacts may be made regarding the appeal, and other information required by the
 commissioner.
     (d) The commissioner may select providers to provide case management services to
 recipients who use health care services inappropriately or to recipients who are eligible for
 other managed care projects. The providers shall be selected based upon criteria that may
 include a comparison with a peer group of providers related to the quality, quantity, or cost
 of health care services delivered or a review of sanctions previously imposed by health care
 services programs or the provider's professional licensing board.
   Sec. 119. Minnesota Statutes 2024, section 256B.051, subdivision 7, is amended to read:
     Subd. 7. Housing support supplemental service rates. Supplemental service rates for
 individuals in settings according to sections 144D.025, 256I.04, subdivision 3, paragraph
 (a), clause (3), and 256I.05, subdivision 1g, shall be reduced by one-half over a two-year
  Article 1 Sec. 119.  117
  03/03/26   REVISOR  JSK/BM  26-06400
  period. This reduction only applies to supplemental service rates for individuals eligible for
  housing stabilization services under this section.
    Sec. 120. Minnesota Statutes 2025 Supplement, section 256B.055, subdivision 12, is
  amended to read:
      Subd. 12. Children with disabilities. (a) A person is eligible for medical assistance if
  the person is under age 19 and qualifies as a disabled individual under United States Code,
  title 42, section 1382c(a), and would be eligible for medical assistance under the state plan
  if residing in a medical institution, and the child requires a level of care provided in a hospital,
  nursing facility, or intermediate care facility for persons with developmental disabilities,
 for whom home care is appropriate, provided that the cost to medical assistance under this
 section is not more than the amount that medical assistance would pay for if the child resides
 in an institution. After the child is determined to be eligible under this section, the
 commissioner shall review the child's disability under United States Code, title 42, section
 1382c(a) and level of care defined under this section no more often than annually and may
 elect, based on the recommendation of health care professionals under contract with the
 state medical review team, to extend the review of disability and level of care up to a
 maximum of four years. The commissioner's decision on the frequency of continuing review
 of disability and level of care is not subject to administrative appeal under section 256.045.
 The county agency shall send a notice of disability review to the enrollee six months prior
 to the date the recertification of disability is due. Nothing in this subdivision shall be
 construed as affecting other redeterminations of medical assistance eligibility under this
 chapter and annual cost-effective reviews under this section.
     (b) For purposes of this subdivision, "hospital" means an institution as defined in section
 144.696, subdivision 3, or 144.55, subdivision 3, or Minnesota Rules, part 4640.3600, and
 licensed pursuant to sections 144.50 to 144.58. For purposes of this subdivision, a child
 requires a level of care provided in a hospital if the child is determined by the commissioner
 to need an extensive array of health services, including mental health services, for an
 undetermined period of time, whose health condition requires frequent monitoring and
 treatment by a health care professional or by a person supervised by a health care
 professional, who would reside in a hospital or require frequent hospitalization if these
 services were not provided, and the daily care needs are more complex than a nursing facility
 level of care.
     A child with serious mental illness requires a level of care provided in a hospital if the
 commissioner determines that the individual requires 24-hour supervision because the person
  Article 1 Sec. 120.  118
  03/03/26   REVISOR  JSK/BM  26-06400
  exhibits recurrent or frequent suicidal or homicidal ideation or behavior, recurrent or frequent
  psychosomatic disorders or somatopsychic disorders that may become life threatening,
  recurrent or frequent severe socially unacceptable behavior associated with psychiatric
  disorder, ongoing and chronic psychosis or severe, ongoing and chronic developmental
  problems requiring continuous skilled observation, or severe disabling symptoms for which
  office-centered outpatient treatment is not adequate, and which overall severely impact the
  individual's ability to function.
      (c) For purposes of this subdivision, "nursing facility" means a facility which provides
  nursing care as defined in section 144A.01, subdivision 5, licensed pursuant to sections
 144A.02 to 144A.10, which is appropriate if a person is in active restorative treatment; is
 in need of special treatments provided or supervised by a licensed nurse; or has unpredictable
 episodes of active disease processes requiring immediate judgment by a licensed nurse. For
 purposes of this subdivision, a child requires the level of care provided in a nursing facility
 if the child is determined by the commissioner to meet the requirements of the preadmission
 screening assessment document under section 256B.0911, adjusted to address age-appropriate
 standards for children age 18 and under.
     (d) For purposes of this subdivision, "intermediate care facility for persons with
 developmental disabilities" or "ICF/DD" means a program licensed to provide services to
 persons with developmental disabilities under section 252.28, and chapter 245A, and a
 physical plant licensed as a supervised living facility under chapter 144, which together are
 certified by the Minnesota Department of Health as meeting the standards in Code of Federal
 Regulations, title 42, part 483, for an intermediate care facility which provides services for
 persons with developmental disabilities who require 24-hour supervision and active treatment
 for medical, behavioral, or habilitation needs. For purposes of this subdivision, a child
 requires a level of care provided in an ICF/DD if the commissioner finds that the child has
 a developmental disability in accordance with section 256B.092, is in need of a 24-hour
 plan of care and active treatment similar to persons with developmental disabilities, and
 there is a reasonable indication that the child will need ICF/DD services.
     (e) For purposes of this subdivision, a person requires the level of care provided in a
 nursing facility if the person requires 24-hour monitoring or supervision and a plan of mental
 health treatment because of specific symptoms or functional impairments associated with
 a serious mental illness or disorder diagnosis, which meet severity criteria for mental health
 established by the commissioner and published in March 1997 as the Minnesota Mental
 Health Level of Care for Children and Adolescents with Severe Emotional Disorders.
  Article 1 Sec. 120.  119
  03/03/26   REVISOR  JSK/BM  26-06400
      (f) The determination of the level of care needed by the child shall be made by the
  commissioner based on information supplied to the commissioner by (1) the parent or
  guardian, (2) the child's physician or physicians, advanced practice registered nurse or
  advanced practice registered nurses, or physician assistant or physician assistants, and (3)
  other professionals as requested by the commissioner. The commissioner shall establish a
  screening team to conduct the level of care determinations according to this subdivision.
      (g) If a child meets the conditions in paragraph (b), (c), (d), or (e), the commissioner
  must assess the case to determine whether:
      (1) the child qualifies as a disabled individual under United States Code, title 42, section
 1382c(a), and would be eligible for medical assistance if residing in a medical institution;
 and
     (2) the cost of medical assistance services for the child, if eligible under this subdivision,
 would not be more than the cost to medical assistance if the child resides in a medical
 institution to be determined as follows:
     (i) for a child who requires a level of care provided in an ICF/DD, the cost of care for
 the child in an institution shall be determined using the average payment rate established
 for the regional treatment centers that are certified as ICF's/DD;
     (ii) for a child who requires a level of care provided in an inpatient hospital setting
 according to paragraph (b), cost-effectiveness shall be determined according to Minnesota
 Rules, part 9505.3520, items F and G; and
     (iii) for a child who requires a level of care provided in a nursing facility according to
 paragraph (c) or (e), cost-effectiveness shall be determined according to Minnesota Rules,
 part 9505.3040, except that the nursing facility average rate shall be adjusted to reflect rates
 which would be paid for children under age 16. The commissioner may authorize an amount
 up to the amount medical assistance would pay for a child referred to the commissioner by
 the preadmission screening team under section 256B.0911.
   Sec. 121. Minnesota Statutes 2025 Supplement, section 256B.0615, subdivision 1, is
 amended to read:
     Subdivision 1. Scope. Medical assistance covers mental health certified peer specialist
 services, as established in subdivision 2, if provided to recipients who are eligible for services
 under sections 256B.0622, 256B.0623, 256B.0624, and 256B.0632 and are provided by a
 mental health certified peer specialist who has completed the training under subdivision 5
 and is qualified according to section 245I.04, subdivision 10.
  Article 1 Sec. 121.  120
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 122. Minnesota Statutes 2025 Supplement, section 256B.0616, subdivision 1, is
  amended to read:
      Subdivision 1. Scope. Medical assistance covers mental health certified family peer
  specialists services, as established in subdivision 2, subject to federal approval, if provided
  to recipients who have a mental illness or serious mental illness under chapter 245, and are
  provided by a mental health certified family peer specialist who has completed the training
  under subdivision 5 and is qualified according to section 245I.04, subdivision 12. A family
  peer specialist cannot provide services to the peer specialist's family.
    Sec. 123. Minnesota Statutes 2024, section 256B.0624, subdivision 4, is amended to read:
     Subd. 4. Provider entity standards. (a) A mobile crisis provider must be:
     (1) a county board operated entity;
     (2) an Indian health services facility or facility owned and operated by a tribe or Tribal
 organization operating under United States Code, title 325, section 450f; or
     (3) a provider entity that is under contract with the county board in the county where
 the potential crisis or emergency is occurring. To provide services under this section, the
 provider entity must directly provide the services; or if services are subcontracted, the
 provider entity must maintain responsibility for services and billing.
     (b) A mobile crisis provider must meet the following standards:
     (1) ensure that crisis screenings, crisis assessments, and crisis intervention services are
 available to a recipient 24 hours a day, seven days a week;
     (2) be able to respond to a call for services in a designated service area or according to
 a written agreement with the local mental health authority for an adjacent area;
     (3) have at least one mental health professional on staff at all times and at least one
 additional staff member capable of leading a crisis response in the community; and
     (4) provide the commissioner with information about the number of requests for service,
 the number of people that the provider serves face-to-face, outcomes, and the protocols that
 the provider uses when deciding when to respond in the community.
     (c) A provider entity that provides crisis stabilization services in a residential setting
 under subdivision 7 is not required to meet the requirements of paragraphs (a) and (b), but
 must meet all other requirements of this subdivision.
  Article 1 Sec. 123.  121
  03/03/26   REVISOR  JSK/BM  26-06400
      (d) A crisis services provider must have the capacity to meet and carry out the standards
  in section 245I.011, subdivision 5, and the following standards:
      (1) ensures that staff persons provide support for a recipient's family and natural supports,
  by enabling the recipient's family and natural supports to observe and participate in the
  recipient's treatment, assessments, and planning services;
      (2) has adequate administrative ability to ensure availability of services;
      (3) is able to ensure that staff providing these services are skilled in the delivery of
  mental health crisis response services to recipients;
      (4) is able to ensure that staff are implementing culturally specific treatment identified
 in the crisis treatment plan that is meaningful and appropriate as determined by the recipient's
 culture, beliefs, values, and language;
     (5) is able to ensure enough flexibility to respond to the changing intervention and care
 needs of a recipient as identified by the recipient or family member during the service
 partnership between the recipient and providers;
     (6) is able to ensure that staff have the communication tools and procedures to
 communicate and consult promptly about crisis assessment and interventions as services
 occur;
     (7) is able to coordinate these services with county emergency services, community
 hospitals, ambulance, transportation services, social services, law enforcement, engagement
 services, and mental health crisis services through regularly scheduled interagency meetings;
     (8) is able to ensure that services are coordinated with other behavioral health service
 providers, county mental health authorities, or federally recognized American Indian
 authorities and others as necessary, with the consent of the recipient or parent or guardian.
 Services must also be coordinated with the recipient's case manager if the recipient is
 receiving case management services;
     (9) is able to ensure that crisis intervention services are provided in a manner consistent
 with sections 245.461 to 245.486 and 245.487 to 245.4879;
     (10) is able to coordinate detoxification services for the recipient according to Minnesota
 Rules, parts 9530.6605 to 9530.6655 9530.6510 to 9530.6590, or withdrawal management
 according to chapter 245F;
     (11) is able to establish and maintain a quality assurance and evaluation plan to evaluate
 the outcomes of services and recipient satisfaction; and
  Article 1 Sec. 123.  122
  03/03/26   REVISOR  JSK/BM  26-06400
      (12) is an enrolled medical assistance provider.
    Sec. 124. Minnesota Statutes 2024, section 256B.0658, is amended to read:
      256B.0658 HOUSING ACCESS GRANTS.
      The commissioner of human services shall award through a competitive process contracts
  for grants to public and private agencies to support and assist individuals with a disability
  as defined in section 256B.051, subdivision 2, paragraph (e) (g), to access housing. Grants
  may be awarded to agencies that may include, but are not limited to, the following supports:
  assessment to ensure suitability of housing, accompanying an individual to look at housing,
  filling out applications and rental agreements, meeting with landlords, helping with Section
 8 or other program applications, helping to develop a budget, obtaining furniture and
 household goods, if necessary, and assisting with any problems that may arise with housing.
   Sec. 125. Minnesota Statutes 2024, section 256B.0911, subdivision 29, is amended to
 read:
     Subd. 29. Support planning. (a) The certified assessor and the individual responsible
 for developing the support plan must complete the assessment summary and the support
 plan no more than 60 calendar days after the assessment visit.
     (b) The person or the person's legal representative must be provided with a written
 assessment summary within the timelines established by the commissioner, regardless of
 whether the person is eligible for Minnesota health care programs.
     (c) For a person being assessed for elderly waiver services under chapter 256S, a provider
 who submitted information under subdivision 19, paragraph (c), must receive the final
 written support plan when available.
     (d) The written support plan must include:
     (1) a summary of assessed needs as defined in subdivision 17, paragraphs (d) (e) and
 (e) (f);
     (2) the individual's options and choices to meet identified needs, including all available
 options for:
     (i) case management services and providers;
     (ii) employment services, settings, and providers;
     (iii) living arrangements;
  Article 1 Sec. 125.  123
  03/03/26   REVISOR  JSK/BM  26-06400
      (iv) self-directed services and supports, including self-directed budget options; and
      (v) service provided in a non-disability-specific setting;
      (3) identification of health and safety risks and how those risks will be addressed,
  including personal risk management strategies;
      (4) referral information; and
      (5) informal caregiver supports, if applicable.
      (e) For a person determined eligible for state plan home care under subdivision 11, clause
  (7), the person or person's legal representative must also receive a copy of the home care
  service plan developed by the certified assessor.
   Sec. 126. Minnesota Statutes 2025 Supplement, section 256B.0924, subdivision 6, is
 amended to read:
     Subd. 6. Payment for targeted case management. (a) Medical assistance and
 MinnesotaCare payment for targeted case management shall be made on a monthly basis.
 In order to receive payment for an eligible adult, the provider must document at least one
 contact per month and not more than two consecutive months without a face-to-face contact
 either in person or by interactive video that meets the requirements in section 256B.0625,
 subdivision 20b, with the adult or the adult's legal representative, family, primary caregiver,
 or other relevant persons identified as necessary to the development or implementation of
 the goals of the personal service plan.
     (b) Except as provided under paragraph (m), payment for targeted case management
 provided by county staff under this subdivision shall be based on the monthly rate
 methodology under section 256B.094, subdivision 6, paragraph (b), calculated as one
 combined average rate together with adult mental health case management under section
 256B.0625, subdivision 20, except for calendar year 2002. In calendar year 2002, the rate
 for case management under this section shall be the same as the rate for adult mental health
 case management in effect as of December 31, 2001. Billing and payment must identify the
 recipient's primary population group to allow tracking of revenues.
     (c) Payment for targeted case management provided by county-contracted vendors shall
 be based on a monthly rate calculated in accordance with section 256B.076, subdivision 2.
 The rate must not exceed the rate charged by the vendor for the same service to other payers.
 If the service is provided by a team of contracted vendors, the team shall determine how to
 distribute the rate among its members. No reimbursement received by contracted vendors
  Article 1 Sec. 126.  124
  03/03/26   REVISOR  JSK/BM  26-06400
  shall be returned to the county, except to reimburse the county for advance funding provided
  by the county to the vendor.
      (d) If the service is provided by a team that includes contracted vendors and county staff,
  the costs for county staff participation on the team shall be included in the rate for
  county-provided services. In this case, the contracted vendor and the county may each
  receive separate payment for services provided by each entity in the same month. In order
  to prevent duplication of services, the county must document, in the recipient's file, the need
  for team targeted case management and a description of the different roles of the team
  members.
     (e) Notwithstanding section 256B.19, subdivision 1, the nonfederal share of costs for
 targeted case management shall be provided by the recipient's county of responsibility, as
 defined in sections 256G.01 to 256G.12, from sources other than federal funds or funds
 used to match other federal funds.
     (f) The commissioner may suspend, reduce, or terminate reimbursement to a provider
 that does not meet the reporting or other requirements of this section. The county of
 responsibility, as defined in sections 256G.01 to 256G.12, is responsible for any federal
 disallowances. The county may share this responsibility with its contracted vendors.
     (g) The commissioner shall set aside five percent of the federal funds received under
 this section for use in reimbursing the state for costs of developing and implementing this
 section.
     (h) Payments to counties for targeted case management expenditures under this section
 shall only be made from federal earnings from services provided under this section. Payments
 to contracted vendors shall include both the federal earnings and the county share.
     (i) Notwithstanding section 256B.041, county payments for the cost of case management
 services provided by county staff shall not be made to the commissioner of management
 and budget. For the purposes of targeted case management services provided by county
 staff under this section, the centralized disbursement of payments to counties under section
 256B.041 consists only of federal earnings from services provided under this section.
     (j) If the recipient is a resident of a nursing facility, intermediate care facility, or hospital,
 and the recipient's institutional care is paid by medical assistance, payment for targeted case
 management services under this subdivision is limited to the lesser of:
     (1) the last 180 days of the recipient's residency in that facility; or
     (2) the limits and conditions which apply to federal Medicaid funding for this service.
  Article 1 Sec. 126.  125
  03/03/26   REVISOR  JSK/BM  26-06400
      (k) Payment for targeted case management services under this subdivision shall not
  duplicate payments made under other program authorities for the same purpose.
      (l) Any growth in targeted case management services and cost increases under this
  section shall be the responsibility of the counties.
      (m) The commissioner may make payments for Tribes according to section 256B.0625,
  subdivision 34, or other relevant federally approved rate setting methodologies for vulnerable
  adult and developmental disability targeted case management provided by Indian health
  services and facilities operated by a Tribe or Tribal organization.
    Sec. 127. Minnesota Statutes 2025 Supplement, section 256B.0943, subdivision 9, is
 amended to read:
     Subd. 9. Service delivery criteria. (a) In delivering services under this section, a certified
 provider entity must ensure that:
     (1) the provider's caseload size should reasonably enable the provider to play an active
 role in service planning, monitoring, and delivering services to meet the client's and client's
 family's needs, as specified in each client's individual treatment plan;
     (2) site-based programs, including day treatment programs, provide staffing and facilities
 to ensure the client's health, safety, and protection of rights, and that the programs are able
 to implement each client's individual treatment plan; and
     (3) a day treatment program is provided to a group of clients by a team under the treatment
 supervision of a mental health professional. The day treatment program must be provided
 in and by: (i) an outpatient hospital accredited by the Joint Commission on Accreditation
 of Health Organizations and licensed under sections 144.50 to 144.55; (ii) a community
 mental health center under section 245.62; or (iii) an entity that is certified under subdivision
 4 to operate a program that meets the requirements of section 245.4884, subdivision 2, and
 Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment program must stabilize
 the client's mental health status while developing and improving the client's independent
 living and socialization skills. The goal of the day treatment program must be to reduce or
 relieve the effects of mental illness and provide training to enable the client to live in the
 community. The remainder of the structured treatment program may include patient and/or
 family or group psychotherapy, and individual or group skills training, if included in the
 client's individual treatment plan. Day treatment programs are not part of inpatient or
 residential treatment services. When a day treatment group that meets the minimum group
 size requirement temporarily falls below the minimum group size because of a member's
  Article 1 Sec. 127.  126
  03/03/26   REVISOR  JSK/BM  26-06400
  temporary absence, medical assistance covers a group session conducted for the group
  members in attendance. A day treatment program may provide fewer than the minimally
  required hours for a particular child during a billing period in which the child is transitioning
  into, or out of, the program.
      (b) To be eligible for medical assistance payment, a provider entity must deliver the
  service components of children's therapeutic services and supports in compliance with the
  following requirements:
      (1) psychotherapy to address the child's underlying mental health disorder must be
  documented as part of the child's ongoing treatment. A provider must deliver or arrange for
 medically necessary psychotherapy unless the child's parent or caregiver chooses not to
 receive it or the provider determines that psychotherapy is no longer medically necessary.
 When a provider determines that psychotherapy is no longer medically necessary, the
 provider must update required documentation, including but not limited to the individual
 treatment plan, the child's medical record, or other authorizations, to include the
 determination. When a provider determines that a child needs psychotherapy but
 psychotherapy cannot be delivered due to a shortage of licensed mental health professionals
 in the child's community, the provider must document the lack of access in the child's
 medical record;
     (2) individual, family, or group skills training is subject to the following requirements:
     (i) a mental health professional, clinical trainee, or mental health practitioner shall provide
 skills training;
     (ii) skills training delivered to a child or the child's family must be targeted to the specific
 deficits or maladaptations of the child's mental health disorder and must be prescribed in
 the child's individual treatment plan;
     (iii) group skills training may be provided to multiple recipients who, because of the
 nature of their emotional, behavioral, or social dysfunction, can derive mutual benefit from
 interaction in a group setting, which must be staffed as follows:
     (A) one mental health professional, clinical trainee, or mental health practitioner must
 work with a group of three to eight clients; or
     (B) any combination of two mental health professionals, clinical trainees, or mental
 health practitioners must work with a group of nine to 12 clients;
  Article 1 Sec. 127.  127
  03/03/26   REVISOR  JSK/BM  26-06400
      (iv) a mental health professional, clinical trainee, or mental health practitioner must have
  taught the psychosocial skill before a mental health behavioral aide may practice that skill
  with the client; and
      (v) for group skills training, when a skills group that meets the minimum group size
  requirement temporarily falls below the minimum group size because of a group member's
  temporary absence, the provider may conduct the session for the group members in
  attendance;
      (3) crisis planning to a child and family must include development of a written plan that
  anticipates the particular factors specific to the child that may precipitate a psychiatric crisis
 for the child in the near future. The written plan must document actions that the family
 should be prepared to take to resolve or stabilize a crisis, such as advance arrangements for
 direct intervention and support services to the child and the child's family. Crisis planning
 must include preparing resources designed to address abrupt or substantial changes in the
 functioning of the child or the child's family when sudden change in behavior or a loss of
 usual coping mechanisms is observed, or the child begins to present a danger to self or
 others;
     (4) mental health behavioral aide services must be medically necessary treatment services,
 identified in the child's individual treatment plan. To be eligible for medical assistance
 payment, mental health behavioral aide services must be delivered to a child who has been
 diagnosed with a mental illness, as provided in subdivision 1, paragraph (a) (b). The mental
 health behavioral aide must document the delivery of services in written progress notes.
 Progress notes must reflect implementation of the treatment strategies, as performed by the
 mental health behavioral aide and the child's responses to the treatment strategies; and
     (5) mental health service plan development must be performed in consultation with the
 child's family and, when appropriate, with other key participants in the child's life by the
 child's treating mental health professional or clinical trainee or by a mental health practitioner
 and approved by the treating mental health professional. Treatment plan drafting consists
 of development, review, and revision by face-to-face or electronic communication. The
 provider must document events, including the time spent with the family and other key
 participants in the child's life to approve the individual treatment plan. Medical assistance
 covers service plan development before completion of the child's individual treatment plan.
 Service plan development is covered only if a treatment plan is completed for the child. If
 upon review it is determined that a treatment plan was not completed for the child, the
 commissioner shall recover the payment for the service plan development.
  Article 1 Sec. 127.  128
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 128. Minnesota Statutes 2024, section 256B.15, subdivision 1h, is amended to read:
      Subd. 1h. Estates of specific persons receiving medical assistance. (a) For purposes
  of this section, paragraphs (b) to (j) apply if a person received medical assistance for which
  a claim may be filed under this section and died single, or the surviving spouse of the couple
  and was not survived by any of the persons described in subdivisions 3 and 4.
      (b) Notwithstanding any law or rule to the contrary, the person's life estate or joint
  tenancy interest in real property not subject to a medical assistance lien under sections
  514.980 to 514.985 on the date of the person's death shall not end upon the person's death
  and shall continue as provided in this subdivision. The life estate in the person's estate shall
 be that portion of the interest in the real property subject to the life estate that is equal to
 the life estate percentage factor for the life estate as listed in the Life Estate Mortality Table
 of the health care program's manual for a person who was the age of the medical assistance
 recipient on the date of the person's death. The joint tenancy interest in real property in the
 estate shall be equal to the fractional interest the person would have owned in the jointly
 held interest in the property had they and the other owners held title to the property as tenants
 in common on the date the person died.
     (c) The court upon its own motion, or upon motion by the personal representative or
 any interested party, may enter an order directing the remainderpersons or surviving joint
 tenants and their spouses, if any, to sign all documents, take all actions, and otherwise fully
 cooperate with the personal representative and the court to liquidate the decedent's life estate
 or joint tenancy interests in the estate and deliver the cash or the proceeds of those interests
 to the personal representative and provide for any legal and equitable sanctions as the court
 deems appropriate to enforce and carry out the order, including an award of reasonable
 attorney fees.
     (d) The personal representative may make, execute, and deliver any conveyances or
 other documents necessary to convey the decedent's life estate or joint tenancy interest in
 the estate that are necessary to liquidate and reduce to cash the decedent's interest or for
 any other purposes.
     (e) Subject to administration, all costs, including reasonable attorney fees, directly and
 immediately related to liquidating the decedent's life estate or joint tenancy interest in the
 decedent's estate, shall be paid from the gross proceeds of the liquidation allocable to the
 decedent's interest and the net proceeds shall be turned over to the personal representative
 and applied to payment of the claim presented under this section.
  Article 1 Sec. 128.  129
  03/03/26   REVISOR  JSK/BM  26-06400
      (f) The personal representative shall bring a motion in the district court in which the
  estate is being probated to compel the remainderpersons or surviving joint tenants to account
  for and deliver to the personal representative all or any part of the proceeds of any sale,
  mortgage, transfer, conveyance, or any disposition of real property allocable to the decedent's
  life estate or joint tenancy interest in the decedent's estate, and do everything necessary to
  liquidate and reduce to cash the decedent's interest and turn the proceeds of the sale or other
  disposition over to the personal representative. The court may grant any legal or equitable
  relief including, but not limited to, ordering a partition of real estate under chapter 558 558A
  necessary to make the value of the decedent's life estate or joint tenancy interest available
 to the estate for payment of a claim under this section.
     (g) Subject to administration, the personal representative shall use all of the cash or
 proceeds of interests to pay an allowable claim under this section. The remainderpersons
 or surviving joint tenants and their spouses, if any, may enter into a written agreement with
 the personal representative or the claimant to settle and satisfy obligations imposed at any
 time before or after a claim is filed.
     (h) The personal representative may, at their discretion, provide any or all of the other
 owners, remainderpersons, or surviving joint tenants with an affidavit terminating the
 decedent's estate's interest in real property the decedent owned as a life tenant or as a joint
 tenant with others, if the personal representative determines in good faith that neither the
 decedent nor any of the decedent's predeceased spouses received any medical assistance
 for which a claim could be filed under this section, or if the personal representative has filed
 an affidavit with the court that the estate has other assets sufficient to pay a claim, as
 presented, or if there is a written agreement under paragraph (g), or if the claim, as allowed,
 has been paid in full or to the full extent of the assets the estate has available to pay it. The
 affidavit may be recorded in the office of the county recorder or filed in the Office of the
 Registrar of Titles for the county in which the real property is located. Except as provided
 in section 514.981, subdivision 6, when recorded or filed, the affidavit shall terminate the
 decedent's interest in real estate the decedent owned as a life tenant or a joint tenant with
 others. The affidavit shall:
     (1) be signed by the personal representative;
     (2) identify the decedent and the interest being terminated;
     (3) give recording information sufficient to identify the instrument that created the
 interest in real property being terminated;
     (4) legally describe the affected real property;
  Article 1 Sec. 128.  130
  03/03/26   REVISOR  JSK/BM  26-06400
      (5) state that the personal representative has determined that neither the decedent nor
  any of the decedent's predeceased spouses received any medical assistance for which a claim
  could be filed under this section;
      (6) state that the decedent's estate has other assets sufficient to pay the claim, as presented,
  or that there is a written agreement between the personal representative and the claimant
  and the other owners or remainderpersons or other joint tenants to satisfy the obligations
  imposed under this subdivision; and
      (7) state that the affidavit is being given to terminate the estate's interest under this
  subdivision, and any other contents as may be appropriate.
 The recorder or registrar of titles shall accept the affidavit for recording or filing. The
 affidavit shall be effective as provided in this section and shall constitute notice even if it
 does not include recording information sufficient to identify the instrument creating the
 interest it terminates. The affidavit shall be conclusive evidence of the stated facts.
     (i) The holder of a lien arising under subdivision 1c shall release the lien at the holder's
 expense against an interest terminated under paragraph (g) to the extent of the termination.
     (j) If a lien arising under subdivision 1c is not released under paragraph (i), prior to
 closing the estate, the personal representative shall deed the interest subject to the lien to
 the remainderpersons or surviving joint tenants as their interests may appear. Upon recording
 or filing, the deed shall work a merger of the recipient's life estate or joint tenancy interest,
 subject to the lien, into the remainder interest or interest the decedent and others owned
 jointly. The lien shall attach to and run with the property to the extent of the decedent's
 interest at the time of the decedent's death.
   Sec. 129. Minnesota Statutes 2024, section 256B.196, subdivision 2, is amended to read:
     Subd. 2. Commissioner's duties. (a) For the purposes of this subdivision and subdivision
 3, the commissioner shall determine the fee-for-service outpatient hospital services upper
 payment limit for nonstate government hospitals. The commissioner shall then determine
 the amount of a supplemental payment to Hennepin County Medical Center and Regions
 Hospital for these services that would increase medical assistance spending in this category
 to the aggregate upper payment limit for all nonstate government hospitals in Minnesota.
 In making this determination, the commissioner shall allot the available increases between
 Hennepin County Medical Center and Regions Hospital based on the ratio of medical
 assistance fee-for-service outpatient hospital payments to the two facilities. The commissioner
 shall adjust this allotment as necessary based on federal approvals, the amount of
  Article 1 Sec. 129.  131
  03/03/26   REVISOR  JSK/BM  26-06400
  intergovernmental transfers received from Hennepin and Ramsey Counties, and other factors,
  in order to maximize the additional total payments. The commissioner shall inform Hennepin
  County and Ramsey County of the periodic intergovernmental transfers necessary to match
  federal Medicaid payments available under this subdivision in order to make supplementary
  medical assistance payments to Hennepin County Medical Center and Regions Hospital
  equal to an amount that when combined with existing medical assistance payments to
  nonstate governmental hospitals would increase total payments to hospitals in this category
  for outpatient services to the aggregate upper payment limit for all hospitals in this category
  in Minnesota. Upon receipt of these periodic transfers, the commissioner shall make
 supplementary payments to Hennepin County Medical Center and Regions Hospital.
     (b) For the purposes of this subdivision and subdivision 3, the commissioner shall
 determine an upper payment limit for physicians and other billing professionals affiliated
 with Hennepin County Medical Center and with Regions Hospital. The upper payment limit
 shall be based on the average commercial rate or be determined using another method
 acceptable to the Centers for Medicare and Medicaid Services. The commissioner shall
 inform Hennepin County and Ramsey County of the periodic intergovernmental transfers
 necessary to match the federal Medicaid payments available under this subdivision in order
 to make supplementary payments to physicians and other billing professionals affiliated
 with Hennepin County Medical Center and to make supplementary payments to physicians
 and other billing professionals affiliated with Regions Hospital through HealthPartners
 Medical Group equal to the difference between the established medical assistance payment
 for physician and other billing professional services and the upper payment limit. Upon
 receipt of these periodic transfers, the commissioner shall make supplementary payments
 to physicians and other billing professionals affiliated with Hennepin County Medical Center
 and shall make supplementary payments to physicians and other billing professionals
 affiliated with Regions Hospital through HealthPartners Medical Group.
     (c) Beginning January 1, 2010, Ramsey County may make monthly voluntary
 intergovernmental transfers to the commissioner in amounts not to exceed $6,000,000 per
 year. The commissioner shall increase the medical assistance capitation payments to any
 licensed health plan under contract with the medical assistance program that agrees to make
 enhanced payments to Regions Hospital. The increase shall be in an amount equal to the
 annual value of the monthly transfers plus federal financial participation, with each health
 plan receiving its pro rata share of the increase based on the pro rata share of medical
 assistance admissions to Regions Hospital by those plans. For the purposes of this paragraph,
 "the base amount" means the total annual value of increased medical assistance capitation
  Article 1 Sec. 129.  132
  03/03/26   REVISOR  JSK/BM  26-06400
  payments, including the voluntary intergovernmental transfers, under this paragraph in
  calendar year 2017. For managed care contracts beginning on or after January 1, 2018, the
  commissioner shall reduce the total annual value of increased medical assistance capitation
  payments under this paragraph by an amount equal to ten percent of the base amount, and
  by an additional ten percent of the base amount for each subsequent contract year until
  December 31, 2025. Upon the request of the commissioner, health plans shall submit
  individual-level cost data for verification purposes. The commissioner may ratably reduce
  these payments on a pro rata basis in order to satisfy federal requirements for actuarial
  soundness. If payments are reduced, transfers shall be reduced accordingly. Any licensed
 health plan that receives increased medical assistance capitation payments under the
 intergovernmental transfer described in this paragraph shall increase its medical assistance
 payments to Regions Hospital by the same amount as the increased payments received in
 the capitation payment described in this paragraph. This paragraph expires January 1, 2026.
     (d) (c) For the purposes of this subdivision and subdivision 3, the commissioner shall
 determine an upper payment limit for ambulance services affiliated with Hennepin County
 Medical Center and the city of St. Paul, and ambulance services owned and operated by
 another governmental entity that chooses to participate by requesting the commissioner to
 determine an upper payment limit. The upper payment limit shall be based on the average
 commercial rate or be determined using another method acceptable to the Centers for
 Medicare and Medicaid Services. The commissioner shall inform Hennepin County, the
 city of St. Paul, and other participating governmental entities of the periodic
 intergovernmental transfers necessary to match the federal Medicaid payments available
 under this subdivision in order to make supplementary payments to Hennepin County
 Medical Center, the city of St. Paul, and other participating governmental entities equal to
 the difference between the established medical assistance payment for ambulance services
 and the upper payment limit. Upon receipt of these periodic transfers, the commissioner
 shall make supplementary payments to Hennepin County Medical Center, the city of St.
 Paul, and other participating governmental entities. A tribal government that owns and
 operates an ambulance service is not eligible to participate under this subdivision.
     (e) (d) For the purposes of this subdivision and subdivision 3, the commissioner shall
 determine an upper payment limit for physicians, dentists, and other billing professionals
 affiliated with the University of Minnesota and University of Minnesota Physicians. The
 upper payment limit shall be based on the average commercial rate or be determined using
 another method acceptable to the Centers for Medicare and Medicaid Services. The
 commissioner shall inform the University of Minnesota Medical School and University of
  Article 1 Sec. 129.  133
  03/03/26   REVISOR  JSK/BM  26-06400
  Minnesota School of Dentistry of the periodic intergovernmental transfers necessary to
  match the federal Medicaid payments available under this subdivision in order to make
  supplementary payments to physicians, dentists, and other billing professionals affiliated
  with the University of Minnesota and the University of Minnesota Physicians equal to the
  difference between the established medical assistance payment for physician, dentist, and
  other billing professional services and the upper payment limit. Upon receipt of these periodic
  transfers, the commissioner shall make supplementary payments to physicians, dentists,
  and other billing professionals affiliated with the University of Minnesota and the University
  of Minnesota Physicians.
     (f) (e) The commissioner shall inform the transferring governmental entities on an
 ongoing basis of any changes needed in the intergovernmental transfers in order to continue
 the payments under paragraphs (a) to (e) (d), at their maximum level, including increases
 in upper payment limits, changes in the federal Medicaid match, and other factors.
     (g) (f) The payments in paragraphs (a) to (e) (d) shall be implemented independently of
 each other, subject to federal approval and to the receipt of transfers under subdivision 3.
     (h) (g) All of the data and funding transactions related to the payments in paragraphs
 (a) to (e) (d) shall be between the commissioner and the governmental entities.
     (i) (h) For purposes of this subdivision, billing professionals are limited to physicians,
 nurse practitioners, nurse midwives, clinical nurse specialists, physician assistants,
 anesthesiologists, certified registered nurse anesthetists, dentists, dental hygienists, and
 dental therapists.
   Sec. 130. Minnesota Statutes 2024, section 256B.1973, subdivision 1, is amended to read:
     Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
 the meanings given them.
     (b) "Billing professionals" means physicians, nurse practitioners, nurse midwives, clinical
 nurse specialists, physician assistants, anesthesiologists, and certified registered nurse
 anesthetists, and may include dentists, individually enrolled dental hygienists, and dental
 therapists.
     (c) "Health plan" means a managed care or county-based purchasing plan that is under
 contract with the commissioner to deliver services to medical assistance enrollees under
 section 256B.69.
  Article 1 Sec. 130.  134
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      (d) "High medical assistance utilization" means a medical assistance utilization rate
  equal to the standard established in section 256.969, subdivision 9, paragraph (d), clause
  (6).
    Sec. 131. Minnesota Statutes 2024, section 256B.431, subdivision 17d, is amended to
  read:
      Subd. 17d. Determination of rental per diem for total replacement projects. (a) For
  purposes of this subdivision, a total replacement means the complete replacement of the
  nursing facility's physical plant through the construction of a new physical plant, the transfer
  of the nursing facility's license from one physical plant location to another, or a new building
 addition to relocate beds from three- and four-bed wards. For total replacement projects
 completed on or after July 1, 1992, the commissioner shall compute the incremental change
 in the nursing facility's rental per diem, for rate years beginning on or after July 1, 1995,
 by replacing its appraised value, including the historical capital asset costs, and the capital
 debt and interest costs with the new nursing facility's allowable capital asset costs and the
 related allowable capital debt and interest costs. If the new nursing facility has decreased
 its licensed capacity, the aggregate investment per bed limit in subdivision 3a, paragraph
 (c), shall apply.
     (b) If the new nursing facility has retained a portion of the original physical plant for
 nursing facility usage, then a portion of the appraised value prior to the replacement must
 be retained and included in the calculation of the incremental change in the nursing facility's
 rental per diem. For purposes of this subdivision, the original nursing facility means the
 nursing facility prior to the total replacement project. The portion of the appraised value to
 be retained shall be calculated according to clauses (1) to (3):
     (1) The numerator of the allocation ratio shall be the square footage of the area in the
 original physical plant which is being retained for nursing facility usage.
     (2) The denominator of the allocation ratio shall be the total square footage of the original
 nursing facility physical plant.
     (3) Each component of the nursing facility's allowable appraised value prior to the total
 replacement project shall be multiplied by the allocation ratio developed by dividing clause
 (1) by clause (2).
     (c) In the case of either type of total replacement as authorized under section 144A.071
 or 144A.073, the provisions of subdivisions 17 to 17f shall also apply.
  Article 1 Sec. 131.  135
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      (d) For purposes of the moratorium exception authorized under section 144A.071,
  subdivision 4a, paragraph (s), if the total replacement involves the renovation and use of
  an existing health care facility physical plant, the new allowable capital asset costs and
  related debt and interest costs shall include first the allowable capital asset costs and related
  debt and interest costs of the renovation, to which shall be added the allowable capital asset
  costs of the existing physical plant prior to the renovation, and if reported by the facility,
  the related allowable capital debt and interest costs.
    Sec. 132. Minnesota Statutes 2024, section 256B.69, subdivision 16, is amended to read:
      Subd. 16. Project extension. Minnesota Rules, parts 9500.1450; 9500.1451; 9500.1452;
 9500.1453; 9500.1454; 9500.1455; 9500.1457; 9500.1458; 9500.1459; 9500.1460;
 9500.1461; 9500.1462; 9500.1463; and 9500.1464, are extended.
   Sec. 133. Minnesota Statutes 2025 Supplement, section 256B.761, subdivision 2, is
 amended to read:
     Subd. 2. Capitation payments. Managed care and county-based purchasing plans must
 reimburse providers at an amount that is at least equal to the fee-for-service rate for services
 under this section. The commissioner must monitor the effect of this rate adjustment on
 enrollee access to behavioral health services. If for any contract year federal approval is not
 received for this subdivision, the commissioner must adjust the capitation rates paid to
 managed care plans and county-based purchasing plans for that contract year to reflect the
 removal of this provision subdivision. Contracts between managed care plans and
 county-based purchasing plans and providers to whom this subdivision applies must allow
 recovery of payments from those providers if capitation rates are adjusted in accordance
 with this subdivision. Payment recoveries must not exceed the amount equal to any increase
 in rates that results from this subdivision.
   Sec. 134. Minnesota Statutes 2024, section 256B.77, subdivision 4, is amended to read:
     Subd. 4. Federal waivers. The commissioner, in consultation with county authorities,
 shall request any authority from the United States Department of Health and Human Services
 that is necessary to implement the demonstration project under the medical assistance
 program; and authority to combine Medicaid and Medicare funding for service delivery to
 eligible individuals who are also eligible for Medicare, only if this authority does not preclude
 county authority participation under the waiver. Implementation of these programs may
 begin without authority to include Medicare funding. The commissioner may authorize
  Article 1 Sec. 134.  136
  03/03/26   REVISOR  JSK/BM  26-06400
  county authorities to begin enrollment of eligible individuals upon federal approval but no
  earlier than July 1, 1998.
    Sec. 135. Minnesota Statutes 2024, section 256B.77, subdivision 5, is amended to read:
      Subd. 5. Demonstration sites. The commissioner shall designate up to two demonstration
  sites with the approval of the county authority. Demonstration sites may include one county
  or a multicounty group. At least one of the sites shall implement a model specifically
  addressing the needs of eligible individuals with physical disabilities. By February 1, 1998,
  the commissioner and the county authorities shall submit to the chairs of the senate
  Committee on Health and Family Security and the house of representatives Committee on
 Health and Human Services a phased enrollment plan to ensure an orderly transition which
 protects the health and safety of enrollees and ensures continuity of services.
   Sec. 136. Minnesota Statutes 2024, section 256B.85, subdivision 7b, is amended to read:
     Subd. 7b. Services provided by parents and spouses. (a) This subdivision applies to
 services and supports described in subdivision 7, clause (8) (9).
     (b) If multiple parents are support workers providing CFSS services to their minor child
 or children, each parent may provide up to 40 hours of medical assistance home and
 community-based services in any seven-day period regardless of the number of children
 served. The total number of hours of medical assistance home and community-based services
 provided by all of the parents must not exceed 80 hours in a seven-day period regardless of
 the number of children served.
     (c) If only one parent is a support worker providing CFSS services to the parent's minor
 child or children, the parent may provide up to 60 hours of medical assistance home and
 community-based services in a seven-day period regardless of the number of children served.
     (d) If a participant's spouse is a support worker providing CFSS services, the spouse
 may provide up to 60 hours of medical assistance home and community-based services in
 a seven-day period.
     (e) Paragraphs (b) to (d) must not be construed to permit an increase in either the total
 authorized service budget for an individual or the total number of authorized service units.
     (f) A parent or participant's spouse must not receive a wage that exceeds the current rate
 for a CFSS support worker, including wages, benefits, and payroll taxes.
  Article 1 Sec. 136.  137
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    Sec. 137. Minnesota Statutes 2024, section 256B.85, subdivision 20, is amended to read:
      Subd. 20. Participant protections. (a) All CFSS participants have the protections
  identified in this subdivision.
      (b) Participants or participant's participants' representatives must be provided with
  adequate information, counseling, training, and assistance, as needed, to ensure that the
  participant is able to choose and manage services, models, and budgets. This information
  must be provided by the consultation services provider at the time of the initial or annual
  orientation to CFSS, at the time of reassessment, or when requested by the participant or
  participant's representative. This information must explain:
     (1) person-centered planning;
     (2) the range and scope of participant choices, including the differences between the
 agency-provider model and the budget model, available CFSS providers, and other services
 available in the community to meet the participant's needs;
     (3) the process for changing plans, services, and budgets;
     (4) identifying and assessing appropriate services; and
     (5) risks to and responsibilities of the participant under the budget model.
     (c) The consultation services provider must ensure that the participant chooses freely
 between the agency-provider model and the budget model and among available
 agency-providers and that the participant may change agency-providers after services have
 begun.
     (d) A participant who appeals a reduction in previously authorized CFSS services may
 continue previously authorized services pending an appeal in accordance with section
 256.045.
     (e) If the units of service or budget allocation for CFSS are reduced, denied, or terminated,
 the commissioner must provide notice of the reasons for the reduction in the participant's
 notice of denial, termination, or reduction.
     (f) If all or part of a CFSS service delivery plan is denied approval by the lead agency,
 the lead agency must provide a notice that describes the basis of the denial.
   Sec. 138. Minnesota Statutes 2024, section 256D.01, subdivision 1, is amended to read:
     Subdivision 1. Policy. The objectives of sections 256D.01 to 256D.21 256D.17 are to
 provide a sound administrative structure for public assistance programs; to maximize the
  Article 1 Sec. 138.  138
  03/03/26   REVISOR  JSK/BM  26-06400
  use of federal money for public assistance purposes; to provide an integrated public assistance
  program for eligible households in the state without adequate income or resources to maintain
  a subsistence reasonably compatible with decency and health; and to provide services to
  help employable and potentially employable persons prepare for and attain self-sufficiency
  and obtain permanent work.
      It is the policy of this state that eligible households unable to provide for themselves
  and not otherwise provided for by law who meet the eligibility requirements of sections
  256D.01 to 256D.21 256D.17 are entitled to receive grants of general assistance necessary
  to maintain a subsistence reasonably compatible with decency and health. Providing this
 assistance is a matter of public concern and a necessity in promoting the public health and
 welfare.
   Sec. 139. Minnesota Statutes 2024, section 256D.01, subdivision 1e, is amended to read:
     Subd. 1e. Rules regarding emergency assistance. The commissioner shall adopt rules
 under the terms of sections 256D.01 to 256D.21 256D.17 for general assistance, to require
 use of the emergency program under MFIP as the primary financial resource when available.
 The commissioner shall adopt rules for eligibility for general assistance of persons with
 seasonal income and may attribute seasonal income to other periods not in excess of one
 year from receipt by an applicant or recipient. General assistance payments may not be
 made for foster care, community residential settings licensed under chapter 245D, child
 welfare services, or other social services. Vendor payments and vouchers may be issued
 only as authorized in sections 256D.05, subdivision 6, and 256D.09.
   Sec. 140. Minnesota Statutes 2024, section 256D.01, subdivision 2, is amended to read:
     Subd. 2. Citation. Sections 256D.01 to 256D.21 256D.17 may be cited as the "General
 Assistance Act."
   Sec. 141. Minnesota Statutes 2024, section 256D.02, subdivision 1, is amended to read:
     Subdivision 1. Scope. For purposes of sections 256D.01 to 256D.21 256D.17, the terms
 defined in this section have the meanings given them unless otherwise provided or indicated
 by the context.
   Sec. 142. Minnesota Statutes 2024, section 256D.03, subdivision 1, is amended to read:
     Subdivision 1. County administration. Every county agency shall provide general
 assistance to persons residing within its jurisdiction who meet the need requirements of
  Article 1 Sec. 142.  139
  03/03/26   REVISOR  JSK/BM  26-06400
  sections 256D.01 to 256D.21 256D.17. General assistance shall be administered by the
  county agencies according to law and rules promulgated by the commissioner pursuant to
  sections 14.001 to 14.69.
    Sec. 143. Minnesota Statutes 2024, section 256D.04, is amended to read:
      256D.04 DUTIES OF THE COMMISSIONER.
      In addition to any other duties imposed by law, the commissioner shall:
      (1) supervise according to section 256.01 the administration of general assistance by
  county agencies as provided in sections 256D.01 to 256D.21 256D.17;
      (2) promulgate uniform rules consistent with law for carrying out and enforcing the
 provisions of sections 256D.01 to 256D.21 256D.17 to the end that general assistance may
 be administered as uniformly as possible throughout the state; rules shall be furnished
 immediately to all county agencies and other interested persons; in promulgating rules, the
 provisions of sections 14.001 to 14.69, shall apply;
     (3) allocate money appropriated for general assistance to county agencies as provided
 in section 256D.03, subdivision 2;
     (4) accept and supervise the disbursement of any funds that may be provided by the
 federal government or from other sources for use in this state for general assistance;
     (5) cooperate with other agencies including any agency of the United States or of another
 state in all matters concerning the powers and duties of the commissioner under sections
 256D.01 to 256D.21 256D.17;
     (6) cooperate to the fullest extent with other public agencies empowered by law to
 provide vocational training, rehabilitation, or similar services;
     (7) gather and study current information and report at least annually to the governor on
 the nature and need for general assistance, the amounts expended under the supervision of
 each county agency, and the activities of each county agency and publish such reports for
 the information of the public;
     (8) specify requirements for general assistance reports, including fiscal reports, according
 to section 256.01, subdivision 2, paragraph (p) (o); and
     (9) ensure that every notice of eligibility for general assistance includes a notice that
 women who are pregnant may be eligible for medical assistance benefits.
  Article 1 Sec. 143.  140
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 144. Minnesota Statutes 2024, section 256D.045, is amended to read:
256D.045 SOCIAL SECURITY NUMBER REQUIRED.
To be eligible for general assistance under sections 256D.01 to 256D.21 256D.17, an
  individual must provide the individual's Social Security number to the county agency or
  submit proof that an application has been made. The provisions of this section do not apply
  to the determination of eligibility for emergency general assistance under section 256D.06,
  subdivision 2. This provision applies to eligible children under the age of 18 effective July
  1, 1997.
    Sec. 145. Minnesota Statutes 2024, section 256D.05, subdivision 8, is amended to read:
Subd. 8. Citizenship. (a) Effective July 1, 1997, citizenship requirements for applicants
 and recipients under sections 256D.01 to 256D.03, subdivision 2, and 256D.04 to 256D.21
 256D.17 shall be determined the same as under section 142G.11. The income and assets of
 sponsors of noncitizens shall be deemed available to general assistance applicants and
 recipients according to the Personal Responsibility and Work Opportunity Reconciliation
 Act of 1996, Public Law 104-193, title IV, sections 421 and 422, and subsequently set out
 in federal rules.
(b) As a condition of eligibility, each legal adult noncitizen in the assistance unit who
 has resided in the country for four years or more and who is under 70 years of age must:
(1) be enrolled in a literacy class, English as a second language class, or a citizen class;
(2) be applying for admission to a literacy class, English as a second language class, and
 is on a waiting list;
(3) be in the process of applying for a waiver from the United States Citizenship and
 Immigration Services of the English language or civics requirements of the citizenship test;
(4) have submitted an application for citizenship to the United States Citizenship and
 Immigration Services and is waiting for a testing date or a subsequent swearing in ceremony;
 or
(5) have been denied citizenship due to a failure to pass the test after two attempts or
 because of an inability to understand the rights and responsibilities of becoming a United
 States citizen, as documented by the United States Citizenship and Immigration Services
 or the county.
If the county social service agency determines that a legal noncitizen subject to the
 requirements of this subdivision will require more than one year of English language training,
  Article 1 Sec. 145.  141
  03/03/26   REVISOR  JSK/BM  26-06400
  then the requirements of clause (1) or (2) shall be imposed after the legal noncitizen has
  resided in the country for three years. Individuals who reside in a facility licensed under
  chapter 144A, 144G, 245A, or 256I are exempt from the requirements of this section.
    Sec. 146. Minnesota Statutes 2024, section 256D.06, subdivision 7, is amended to read:
      Subd. 7. SSI conversions and back claims. (a) The commissioner of human services
  shall contract with agencies or organizations capable of ensuring that clients who are
  presently receiving assistance under sections 256D.01 to 256D.21 256D.17, and who may
  be eligible for benefits under the federal Supplemental Security Income program, apply
  and, when eligible, are converted to the federal income assistance program and made eligible
 for health care benefits under the medical assistance program. The commissioner shall
 ensure that money owing to the state under interim assistance agreements is collected.
     (b) The commissioner shall also directly or through contract implement procedures for
 collecting federal Medicare and medical assistance funds for which clients converted to SSI
 are retroactively eligible.
     (c) The commissioner shall contract with agencies to ensure implementation of this
 section. County contracts with providers for residential services shall include the requirement
 that providers screen residents who may be eligible for federal benefits and provide that
 information to the local agency. The commissioner shall modify the MAXIS computer
 system to provide information on clients who have been on general assistance for two years
 or longer. The list of clients shall be provided to local services for screening under this
 section.
   Sec. 147. Minnesota Statutes 2024, section 256D.07, is amended to read:
     256D.07 TIME OF PAYMENT OF ASSISTANCE.
     An applicant for general assistance shall be deemed eligible if the application and the
 verification of the statement on that application demonstrate that the applicant is within the
 eligibility criteria established by sections 256D.01 to 256D.21 256D.17 and any applicable
 rules of the commissioner. Any person requesting general assistance shall be permitted by
 the county agency to make an application for assistance as soon as administratively possible
 and in no event later than the fourth day following the date on which assistance is first
 requested, and no county agency shall require that a person requesting assistance appear at
 the offices of the county agency more than once prior to the date on which the person is
 permitted to make the application. Applications must be submitted according to section
 256P.04, subdivision 1a. On the date that general assistance is first requested, the county
  Article 1 Sec. 147.  142
  03/03/26   REVISOR  JSK/BM  26-06400
  agency shall inquire and determine whether the person requesting assistance is in immediate
  need of food, shelter, clothing, assistance for necessary transportation, or other emergency
  assistance pursuant to section 256D.06, subdivision 2. A person in need of emergency
  assistance shall be granted emergency assistance immediately, and necessary emergency
  assistance shall continue for up to 30 days following the date of application. A determination
  of an applicant's eligibility for general assistance shall be made by the county agency as
  soon as the required verifications are received by the county agency and in no event later
  than 30 days following the date that the application is made. Any verifications required of
  the applicant shall be reasonable, and the commissioner shall by rule establish reasonable
 verifications. General assistance shall be granted to an eligible applicant without the necessity
 of first securing action by the board of the county agency. The first month's grant must be
 computed to cover the time period starting with the date of application or from the date that
 the applicant meets all eligibility factors, whichever occurs later.
     If upon verification and due investigation it appears that the applicant provided false
 information and the false information materially affected the applicant's eligibility for general
 assistance or the amount of the applicant's general assistance grant, the county agency may
 refer the matter to the county attorney. The county attorney may commence a criminal
 prosecution or a civil action for the recovery of any general assistance wrongfully received,
 or both.
   Sec. 148. Minnesota Statutes 2024, section 256D.16, is amended to read:
     256D.16 GENERAL ASSISTANCE TO BE ALLOWED AS CLAIM IN COURT.
     On the death of any person who received any general assistance under sections 256D.01
 to 256D.21 256D.17, or on the death of the survivor of a married couple, either or both of
 whom received general assistance, the total amount paid as general assistance to either or
 both, without interest, shall be allowed as a claim against the estate of such person or persons
 by the court having jurisdiction to probate the estate.
   Sec. 149. Minnesota Statutes 2024, section 256F.10, subdivision 6, is amended to read:
     Subd. 6. Distribution of new federal revenue. (a) Except for portion set aside in
 paragraph (b), the federal funds earned under this section and section 256B.094 by providers
 shall be paid to each provider based on its earnings, and must be used by each provider to
 expand preventive child welfare services.
     If a county or tribal social services agency chooses to be a provider of child welfare
 targeted case management and if that county or tribal social services agency also joins a
  Article 1 Sec. 149.  143
  03/03/26   REVISOR  JSK/BM  26-06400
  local children's mental health collaborative as authorized by the 1993 legislature, then the
  federal reimbursement received by the county or tribal social services agency for providing
  child welfare targeted case management services to children served by the local collaborative
  shall be transferred by the county or tribal social services agency to the integrated fund.
  The federal reimbursement transferred to the integrated fund by the county or tribal social
  services agency must not be used for residential care other than respite care described under
  subdivision 7, paragraph (d).
      (b) The commissioner shall set aside a portion of the federal funds earned under this
  section to repay the special revenue maximization account under section 256.01, subdivision
 2, paragraph (o) (n). The repayment is limited to:
     (1) the costs of developing and implementing this section and section 256B.094;
     (2) programming the information systems; and
     (3) the lost federal revenue for the central office claim directly caused by the
 implementation of these sections.
     Any unexpended funds from the set-aside under this paragraph shall be distributed to
 providers according to paragraph (a).
   Sec. 150. Minnesota Statutes 2024, section 256F.10, subdivision 7, is amended to read:
     Subd. 7. Expansion of services and base level of expenditures. (a) Counties and tribal
 social services must continue the base level of expenditures for preventive child welfare
 services from either or both of any state, county, or federal funding source, which, in the
 absence of federal funds earned under this section, would have been available for these
 services. The commissioner shall review the county or tribal social services expenditures
 annually using reports required under sections 245.482 and 256.01, subdivision 2, paragraph
 (p) (o), to ensure that the base level of expenditures for preventive child welfare services
 is continued from sources other than the federal funds earned under this section.
     (b) The commissioner may reduce, suspend, or eliminate either or both of a county's or
 tribal social services' obligations to continue the base level of expenditures and to expand
 child welfare preventive services if the commissioner determines that one or more of the
 following conditions apply to that county or reservation:
     (1) imposition of levy limits that significantly reduce available social service funds;
     (2) reduction in the net tax capacity of the taxable property within a county or reservation
 that significantly reduces available social service funds;
  Article 1 Sec. 150.  144
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      (3) reduction in the number of children under age 19 in the county or reservation by 25
  percent when compared with the number in the base year using the most recent data provided
  by the State Demographer's Office; or
      (4) termination of the federal revenue earned under this section.
      (c) The commissioner may suspend for one year either or both of a county's or tribal
  social services' obligations to continue the base level of expenditures and to expand child
  welfare preventive services if the commissioner determines that in the previous year one
  or more of the following conditions applied to that county or reservation:
      (1) the total number of children in placement under sections 260C.212 and 393.07,
 subdivisions 1 and 2, has been reduced by 50 percent from the total number in the base
 year; or
     (2) the average number of children in placement under sections 260C.212 and 393.07,
 subdivisions 1 and 2, on the last day of each month is equal to or less than one child per
 1,000 children in the county or reservation.
     (d) For the purposes of this section, child welfare preventive services are those services
 directed toward a specific child or family that further the goals of Minnesota Statutes 2002,
 section 256F.01, and include assessments, family preservation services, service coordination,
 community-based treatment, crisis nursery services when the parents retain custody and
 there is no voluntary placement agreement with a child-placing agency, respite care except
 when it is provided under a medical assistance waiver, home-based services, and other
 related services. For the purposes of this section, child welfare preventive services shall not
 include shelter care placements under the authority of the court or public agency to address
 an emergency, residential services except for respite care, child care for the purposes of
 employment and training, adult services, services other than child welfare targeted case
 management when they are provided under medical assistance, placement services, or
 activities not directed toward a specific child or family. Respite care must be planned, routine
 care to support the continuing residence of the child with its family or long-term primary
 caretaker and must not be provided to address an emergency.
     (e) For the counties and tribal social services beginning to claim federal reimbursement
 for services under this section and section 256B.094, the base year is the calendar year
 ending at least two calendar quarters before the first calendar quarter in which the provider
 begins claiming reimbursement. For the purposes of this section, the base level of
 expenditures is the level of county or tribal social services expenditures in the base year for
 eligible child welfare preventive services described in this subdivision.
  Article 1 Sec. 150.  145
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 151. Minnesota Statutes 2024, section 256I.04, subdivision 1, is amended to read:
      Subdivision 1. Individual eligibility requirements. An individual is eligible for and
  entitled to a housing support payment to be made on the individual's behalf if the agency
  has approved the setting where the individual will receive housing support and the individual
  meets the requirements in paragraph (a), (b), (c), or (d).
      (a) The individual is aged, blind, or is over 18 years of age with a disability as determined
  under the criteria used by the title II program of the Social Security Act, and meets the
  resource restrictions and standards of section 256P.02, and the individual's countable income
  after deducting the (1) exclusions and disregards of the SSI program, (2) the medical
 assistance personal needs allowance under section 256B.35, and (3) an amount equal to the
 income actually made available to a community spouse by an elderly waiver participant
 under the provisions of sections 256B.0575, subdivision 1, paragraph (a), clause (4), and
 256B.058, subdivision 2, is less than the monthly rate specified in the agency's agreement
 with the provider of housing support in which the individual resides.
     (b) The individual meets a category of eligibility under section 256D.05, subdivision 1,
 paragraph (a), clauses (1), (3), (4) to (8), and (13), and paragraph (b), if applicable, and the
 individual's resources are less than the standards specified by section 256P.02, and the
 individual's countable income as determined under section 256P.06, less the medical
 assistance personal needs allowance under section 256B.35 is less than the monthly rate
 specified in the agency's agreement with the provider of housing support in which the
 individual resides.
     (c) The individual lacks a fixed, adequate, nighttime residence upon discharge from a
 residential behavioral health treatment program, as determined by treatment staff from the
 residential behavioral health treatment program. An individual is eligible under this paragraph
 for up to three months, including a full or partial month from the individual's move-in date
 at a setting approved for housing support following discharge from treatment, plus two full
 months.
     (d) The individual meets the criteria related to establishing a certified disability or
 disabling condition in paragraph (a) or (b) and lacks a fixed, adequate, nighttime residence
 upon discharge from a correctional facility, as determined by an authorized representative
 from a Minnesota-based correctional facility. An individual is eligible under this paragraph
 for up to three months, including a full or partial month from the individual's move-in date
 at a setting approved for housing support following release, plus two full months. Any
  Article 1 Sec. 151.  146
  03/03/26   REVISOR  JSK/BM  26-06400
  income received by people who meet the disabling condition criteria established in paragraph
  (a) or (b) is not countable for the duration of eligibility under this paragraph.
    Sec. 152. Minnesota Statutes 2024, section 256I.05, subdivision 1c, is amended to read:
      Subd. 1c. Rate increases. An agency may not increase the rates negotiated for housing
  support above those in effect on June 30, 1993, except as provided in paragraphs (a) to (f).
      (a) An agency may increase the rates for room and board to the MSA equivalent rate
  for those settings whose current rate is below the MSA equivalent rate.
      (b) An agency may increase the rates for residents in adult foster care whose difficulty
  of care has increased. The total housing support rate for these residents must not exceed the
 maximum rate specified in subdivisions 1 and 1a. Agencies must not include nor increase
 difficulty of care rates for adults in foster care whose difficulty of care is eligible for funding
 by home and community-based waiver programs under title XIX of the Social Security Act.
     (c) An agency must increase the room and board rates each year when the MSA equivalent
 rate is adjusted for SSI cost-of-living increases by the amount of the annual SSI increase,
 less the amount of the increase in the medical assistance personal needs allowance under
 section 256B.35.
     (d) An agency may increase the rates for residents in facilities meeting substantial change
 criteria within the prior year. Substantial change criteria exist if the establishment experiences
 a 25 percent increase or decrease in the total number of its beds, if the net cost of capital
 additions or improvements is in excess of 15 percent of the current market value of the
 residence, or if the residence physically moves, or changes its licensure, and incurs a resulting
 increase in operation and property costs.
     (e) Until June 30, 1994, an agency may increase by up to five percent the total rate paid
 for recipients of assistance under sections 256D.01 to 256D.21 256D.17 or 256D.33 to
 256D.54 who reside in residences that are licensed by the commissioner of health as a
 boarding care home, but are not certified for the purposes of the medical assistance program.
 However, an increase under this clause must not exceed an amount equivalent to 65 percent
 of the 1991 medical assistance reimbursement rate for nursing home resident class A, in
 the geographic grouping in which the facility is located, as established under Minnesota
 Rules, parts 9549.0051 to 9549.0058.
     (f) Notwithstanding the provisions of subdivision 1, an agency may increase the monthly
 room and board rates by $50 per month for residents in settings under section 256I.04,
 subdivision 2a, paragraph (b), clause (2). Participants in the Minnesota supportive housing
  Article 1 Sec. 152.  147
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  demonstration program under section 256I.04, subdivision 3, paragraph (a), clause (3), may
  not receive the increase under this paragraph.
    Sec. 153. Minnesota Statutes 2024, section 256K.10, subdivision 3, is amended to read:
      Subd. 3. Allocation of grants. The commissioner shall allocate grants under this section
  to finance up to 90 percent of each county's costs for services to persons with serious and
  persistent mental illness. The commissioner shall promulgate permanent rules to govern
  grant applications, approval of applications, allocation of grants, and maintenance of financial
  statements by grant recipients. The commissioner shall specify requirements for reports,
  including quarterly fiscal reports, according to section 256.01, subdivision 2, paragraph (p)
 (o). The commissioner shall require collection of data and periodic reports as the
 commissioner deems necessary to demonstrate the effectiveness of the services in helping
 persons with serious and persistent mental illness remain and function in their own
 communities.
   Sec. 154. Minnesota Statutes 2024, section 256S.21, subdivision 3, is amended to read:
     Subd. 3. Cost reporting. (a) As determined by the commissioner, in consultation with
 stakeholders, a provider enrolled to provide services with rates determined under this chapter
 must submit requested cost data to the commissioner to support evaluation of the rate
 methodologies in this chapter. Requested cost data may include but are not limited to:
     (1) worker wage costs;
     (2) benefits paid;
     (3) supervisor wage costs;
     (4) executive wage costs;
     (5) vacation, sick, and training time paid;
     (6) taxes, workers' compensation, and unemployment insurance costs paid;
     (7) administrative costs paid;
     (8) program costs paid;
     (9) transportation costs paid;
     (10) vacancy rates; and
     (11) other data relating to costs required to provide services requested by the
 commissioner.
  Article 1 Sec. 154.  148
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(b) At least once in any five-year period, a provider must submit cost data for a fiscal
  year that ended not more than 18 months prior to the submission date. The commissioner
  shall provide each provider a 90-day notice prior to the provider's submission due date. If
  by 30 days after the required submission date a provider fails to submit required reporting
  data, the commissioner shall provide notice to the provider, and if by 60 days after the
  required submission date a provider has not provided the required data, the commissioner
  shall provide a second notice. The commissioner shall temporarily suspend payments to the
  provider if cost data is not received 90 days after the required submission date. Withheld
  payments must be made once data is received by the commissioner.
(c) The commissioner shall coordinate the cost reporting activities required under this
 section with the cost reporting activities directed under section 256B.4914, subdivision 10a.
(d) The commissioner shall analyze cost documentation in paragraph (a) and, in
 consultation with stakeholders, may submit recommendations on rate methodologies in this
 chapter, including ways to monitor and enforce the spending requirements directed in section
 256S.2101, subdivision 3 256S.211, subdivision 4, through the reports directed by subdivision
 2.
   Sec. 155. Minnesota Statutes 2024, section 257.05, subdivision 3, is amended to read:
Subd. 3. International adoptions. Subject to state and federal laws and rules, adoption
 agencies licensed under chapter 142B and Minnesota Rules, parts 9545.0755 to 9545.0845
 9545.0835, and county social services agencies are authorized to certify that the prospective
 adoptive home of a child brought into the state from another country for the purpose of
 adoption is a suitable home, or that the home meets the commissioner's requirements for
 licensing of foster homes if legal adoption is not contemplated.
   Sec. 156. Minnesota Statutes 2024, section 257.0755, subdivision 3, is amended to read:
Subd. 3. Appropriation. Money appropriated for each ombudsperson from the general
 fund or the special fund authorized by section 256.01, subdivision 2, paragraph (o) (n), is
 under the control of each ombudsperson for which it is appropriated.
   Sec. 157. Minnesota Statutes 2025 Supplement, section 257.0769, subdivision 1, is amended
 to read:
Subdivision 1. Appropriations. (a) $23,000 from the special account authorized by
 section 256.01, subdivision 2, paragraph (n) (o), is annually appropriated to the Office of
 Ombudsperson for American Indian Families for the purpose of section 3.9215.
  Article 1 Sec. 157.  149
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      (b) $69,000 from the special account authorized by section 256.01, subdivision 2,
  paragraph (n) (o), is annually appropriated to the Office of Ombudsperson for Families for
  the purposes of sections 257.0755 to 257.0768.
    Sec. 158. Minnesota Statutes 2024, section 259.41, subdivision 1, is amended to read:
      Subdivision 1. Study required before placement; certain relatives excepted. (a) An
  approved adoption study; completed background study, as required under section 245C.33;
  and written report must be completed before the child is placed in a prospective adoptive
  home under this chapter, except as allowed by section 259.47, subdivision 6. In an agency
  placement, the report must be filed with the court at the time the adoption petition is filed.
 In a direct adoptive placement, the report must be filed with the court in support of a motion
 for temporary preadoptive custody under section 259.47, subdivision 3, or, if the study and
 report are complete, in support of an emergency order under section 259.47, subdivision 6.
 The study and report shall be completed by a licensed child-placing agency and must be
 thorough and comprehensive. The study and report shall be paid for by the prospective
 adoptive parent, except as otherwise required under section 142A.03, subdivision 2, paragraph
 (j), 259.67, or 259.73.
     (b) A placement for adoption with an individual who is related to the child, as defined
 by section 142B.01, subdivision 15, is subject to a background study required by subdivision
 2, paragraph (a), clause (1), items (i) and (ii), and subdivision 3. In the case of a stepparent
 adoption, a background study must be completed on the stepparent and any children as
 required under subdivision 3, paragraph (b), except that a child of the stepparent does not
 need to have a background study complete if they are a sibling through birth or adoption of
 the person being adopted. The local social services agency of the county in which the
 prospective adoptive parent lives must initiate a background study unless a child-placing
 agency has been involved with the adoption. The local social service agency may charge a
 reasonable fee for the background study. If a placement is being made the background study
 must be completed prior to placement pursuant to section 259.29, subdivision 1, paragraph
 (c). Background study results must be filed with the adoption petition according to section
 259.22, except in an adult adoption where an adoption study and background study are not
 needed.
     (c) In the case of a licensed foster parent seeking to adopt a child who is in the foster
 parent's care, any portions of the foster care licensing process that duplicate requirements
 of the home study may be submitted in satisfaction of the relevant requirements of this
 section.
  Article 1 Sec. 158.  150
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    Sec. 159. Minnesota Statutes 2024, section 259.83, subdivision 1, is amended to read:
      Subdivision 1. Services provided. (a) Agencies shall provide assistance and counseling
  services upon receiving a request for current information from adoptive parents, birth parents,
  adopted persons aged 18 years of age and older, or adult siblings of adopted persons. The
  agency shall contact the other adult persons or the adoptive parents of a minor child in a
  personal and confidential manner to determine whether there is a desire to receive or share
  information or to have contact. If there is such a desire, the agency shall provide the services
  requested. The agency shall complete the search request within six months of the request
  being made. If the agency is unable to complete the search request within the specified time
 frame, the agency shall inform the requester of the status of the request and include a
 reasonable estimate of when the request can be completed.
     (b) Upon a request for assistance or services from an adoptive parent of a minor child,
 birth parent, or an adopted person 18 years of age or older, the agency must inform the
 person:
     (1) about the right of an adopted person to request and obtain a copy of the adopted
 person's original birth record at the age and circumstances specified in section 144.2253
 144.2252; and
     (2) about the right of the birth parent named on the adopted person's original birth record
 to file a contact preference form with the state registrar pursuant to section 144.2253.
 When making or supervising an adoptive placement, the agency must provide in writing to
 the birth parents listed on the original birth record the information required under this
 paragraph and section 259.37, subdivision 2, clause (7).
   Sec. 160. Minnesota Statutes 2025 Supplement, section 260.65, is amended to read:
     260.65 NONCUSTODIAL PARENTS; RELATIVE PLACEMENT.
     (a) Prior to the removal of an African American or a disproportionately represented child
 from the child's home, the responsible social services agency must make active efforts to
 identify and locate the child's noncustodial or nonadjudicated parent and the child's relatives
 to notify the child's parent and relatives that the child is or will be placed in foster care and
 provide the child's parent and relatives with a list of legal resources. The notice to the child's
 noncustodial or nonadjudicated parent and relatives must also include the information
 required under section 260C.221, subdivision 2, paragraph (b). The responsible social
 services agency must maintain detailed records of the agency's efforts to notify parents and
 relatives under this section.
  Article 1 Sec. 160.  151
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      (b) Notwithstanding the provisions of section 260C.219, the responsible social services
  agency must assess an African American or a disproportionately represented child's
  noncustodial or nonadjudicated parent's ability to care for the child before placing the child
  in foster care. If a child's noncustodial or nonadjudicated parent is willing and able to provide
  daily care for the African American or disproportionately represented child temporarily or
  permanently, the court shall order the child into the home of the noncustodial or
  nonadjudicated parent pursuant to section 260C.178 or 260C.201, subdivision 1. The
  responsible social services agency must make active efforts to assist a noncustodial or
  nonadjudicated parent with remedying any issues that may prevent the child from being
 ordered into the home of a noncustodial or nonadjudicated parent.
     (c) The relative search, notice, engagement, and placement consideration requirements
 under section 260C.221 apply under this act sections 260.61 to 260.693.
   Sec. 161. Minnesota Statutes 2024, section 260.67, subdivision 2, is amended to read:
     Subd. 2. Termination of parental rights restrictions. (a) A court shall not terminate
 the parental rights of a parent of an African American or a disproportionately represented
 child based solely on the parent's failure to complete case plan requirements.
     (b) Except as provided in paragraph (c) subdivision 3, a court shall not terminate the
 parental rights of a parent of an African American or a disproportionately represented child
 in a child placement proceeding unless the allegations against the parent involve sexual
 abuse; egregious harm as defined in section 260C.007, subdivision 14; murder in the first,
 second, or third degree under section 609.185, 609.19, or 609.195; murder of an unborn
 child in the first, second, or third degree under section 609.2661, 609.2662, or 609.2663;
 manslaughter of an unborn child in the first or second degree under section 609.2664 or
 609.2665; domestic assault by strangulation under section 609.2247; felony domestic assault
 under section 609.2242 or 609.2243; kidnapping under section 609.25; solicitation,
 inducement, and promotion of prostitution under section 609.322, subdivision 1, and
 subdivision 1a if one or more aggravating factors are present; criminal sexual conduct under
 sections 609.342 to 609.3451; engaging in, hiring, or agreeing to hire a minor to engage in
 prostitution under section 609.324, subdivision 1; solicitation of children to engage in sexual
 conduct under section 609.352; possession of pornographic work involving minors under
 section 617.247; malicious punishment or neglect or endangerment of a child under section
 609.377 or 609.378; use of a minor in sexual performance under section 617.246; or failing
 to protect a child from an overt act or condition that constitutes egregious harm.
  Article 1 Sec. 161.  152
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 162. Minnesota Statutes 2024, section 260C.001, subdivision 1, is amended to read:
      Subdivision 1. Citation; scope. (a) Sections 260C.001 to 260C.637 260C.635 may be
  cited as the juvenile protection provisions of the Juvenile Court Act.
      (b) Juvenile protection proceedings include:
      (1) a child in need of protection or services matters;
      (2) permanency matters, including termination of parental rights;
      (3) postpermanency reviews under sections 260C.317 and 260C.521; and
      (4) adoption matters including posttermination of parental rights proceedings that review
  the responsible social services agency's reasonable efforts to finalize adoption.
   Sec. 163. Minnesota Statutes 2024, section 260C.4411, subdivision 1, is amended to read:
     Subdivision 1. Pre-Northstar Care for Children foster care program. (a) For a child
 placed in family foster care on or before December 31, 2014, the county of financial
 responsibility under section 256G.02 or tribal agency authorized under section 142A.03,
 subdivision 9, shall pay the local share under section 142A.611, subdivision 3, for foster
 care maintenance including any difficulty of care as defined in Minnesota Rules, part
 9560.0521, subparts 7 and 10. Family foster care includes:
     (1) emergency relative placement under section 142B.06;
     (2) licensed foster family settings, foster residence settings, or treatment foster care
 settings, licensed under Minnesota Rules, parts 2960.3000 to 2960.3340, and served by a
 public or private child care agency authorized by Minnesota Rules, parts 9545.0755 to
 9545.0845 9545.0835;
     (3) family foster care homes approved by a tribal agency; and
     (4) unlicensed supervised settings for foster youth ages 18 to 21.
     (b) The county of financial responsibility under section 256G.02 or tribal social services
 agency authorized in section 142A.03, subdivision 9, shall pay the entire cost of any initial
 clothing allowance, administrative payments to child care agencies specified in section
 317A.907, or any other support services it authorizes, except as otherwise provided by law.
     (c) The rates for the pre-Northstar Care for Children foster care program remain those
 in effect on January 1, 2013, continuing the preexisting rate structure for foster children
 who remain with the same caregivers and do not transition into Northstar Care for Children
 under section 142A.604, subdivision 6.
  Article 1 Sec. 163.  153
  03/03/26   REVISOR  JSK/BM  26-06400
(d) Difficulty of care payments must be maintained consistent with Minnesota Rules,
  parts 9560.0652 and 9560.0653, using the established reassessment tool in Minnesota Rules,
  part 9560.0654. The preexisting rate structure for the pre-Northstar Care for Children foster
  care program must be maintained, provided that when the number of foster children in the
  program is less than ten percent of the population in 2012, the commissioner may apply the
  same assessment tool to both the pre-Northstar Care for Children foster care program and
  Northstar Care for Children under the authority granted in section 142A.607, subdivision
  2.
(e) The county of financial responsibility under section 256G.02 or tribal agency
 authorized under section 142A.03, subdivision 9, shall document the determined
 pre-Northstar Care for Children foster care rate in the case record, including a description
 of each condition on which the difficulty of care assessment is based. The difficulty of care
 rate is reassessed:
(1) every 12 months;
(2) at the request of the foster parent; or
(3) if the child's level of need changes in the current foster home.
(f) The pre-Northstar Care for Children foster care program must maintain the following
 existing program features:
(1) monthly payments must be made to the family foster home provider;
(2) notice and appeal procedures must be consistent with Minnesota Rules, part
 9560.0665; and
(3) medical assistance eligibility for foster children must continue to be determined
 according to section 256B.055.
(g) The county of financial responsibility under section 256G.02 or tribal agency
 authorized under section 142A.03, subdivision 9, may continue existing program features,
 including:
(1) establishing a local fund of county money through which the agency may reimburse
 foster parents for the cost of repairing damage done to the home and contents by the foster
 child and the additional care insurance premium cost of a child who possesses a permit or
 license to drive a car; and
(2) paying a fee for specific services provided by the foster parent, based on the parent's
 skills, experience, or training. This fee must not be considered foster care maintenance.
  Article 1 Sec. 163.  154
  03/03/26   REVISOR  JSK/BM  26-06400
      (h) The following events end the child's enrollment in the pre-Northstar Care for Children
  foster care program:
      (1) reunification with parent or other relative;
      (2) adoption or transfer of permanent legal and physical custody;
      (3) removal from the current foster home to a different foster home;
      (4) another event that ends the current placement episode; or
      (5) attaining the age of 21.
    Sec. 164. Minnesota Statutes 2024, section 260C.4412, is amended to read:
      260C.4412 PAYMENT FOR RESIDENTIAL PLACEMENTS.
     (a) When a child is placed in a foster care group residential setting under Minnesota
 Rules, parts 2960.0020 to 2960.0710, a foster residence licensed under chapter 245A that
 meets the standards of Minnesota Rules, parts 2960.3200 to 2960.3230, or a children's
 residential facility licensed or approved by a tribe, foster care maintenance payments must
 be made on behalf of the child to cover the cost of providing food, clothing, shelter, daily
 supervision, school supplies, child's personal incidentals and supports, reasonable travel for
 visitation, or other transportation needs associated with the items listed. Daily supervision
 in the group residential setting includes routine day-to-day direction and arrangements to
 ensure the well-being and safety of the child. It may also include reasonable costs of
 administration and operation of the facility.
     (b) The commissioner of human services shall specify the title IV-E administrative
 procedures under section 142A.418 for each of the following residential program settings:
     (1) residential programs licensed under chapter 245A or licensed by a tribe, including:
     (i) qualified residential treatment programs as defined in section 260C.007, subdivision
 26d;
     (ii) program settings specializing in providing prenatal, postpartum, or parenting supports
 for youth; and
     (iii) program settings providing high-quality residential care and supportive services to
 children and youth who are, or are at risk of becoming, sex trafficking victims;
     (2) licensed residential family-based substance use disorder treatment programs as
 defined in section 260C.007, subdivision 22a; and
  Article 1 Sec. 164.  155
  03/03/26   REVISOR  JSK/BM  26-06400
      (3) supervised settings in which a foster child age 18 or older may live independently,
  consistent with section 260C.451.
      (c) A lead contract under section 142A.07, subdivision 6, is not required to establish the
  foster care maintenance payment in paragraph (a) for foster residence settings licensed under
  chapter 245A that meet the standards of Minnesota Rules, parts 2960.3200 to 2960.3230.
  The foster care maintenance payment for these settings must be consistent with section
  142A.609, subdivision 3, and subject to the annual revision as specified in section 256N.26,
  subdivision 9 142A.609, subdivision 8.
    Sec. 165. Minnesota Statutes 2024, section 260E.17, subdivision 2, is amended to read:
     Subd. 2. Responsible social service agency. The responsible agency shall conduct an
 investigation when the report alleges maltreatment in a facility required to be licensed or
 certified under chapter 142B, 142C, 144H, 245A, or 245D, or 245H; under sections 144.50
 to 144.58 and 241.021; in a school as defined in section 120A.05, subdivisions 9, 11, and
 13, and chapter 124E; or in a nonlicensed personal care provider association as defined in
 section 256B.0625, subdivision 19a.
   Sec. 166. Minnesota Statutes 2024, section 260E.33, subdivision 6a, is amended to read:
     Subd. 6a. Notification of contested case hearing. When an appeal of a lead investigative
 agency determination results in a contested case hearing under chapter 142B, 245A, or
 245C, the administrative law judge shall notify the parent, legal custodian, or guardian of
 the child who is the subject of the maltreatment determination. The notice must be sent by
 certified mail and inform the parent, legal custodian, or guardian of the child of the right to
 file a signed written statement in the proceedings and the right to attend and participate in
 the hearing. The parent, legal custodian, or guardian of the child may file a written statement
 with the administrative law judge hearing the case no later than five business days before
 commencement of the hearing. The administrative law judge shall include the written
 statement in the hearing record and consider the statement in deciding the appeal. The lead
 investigative agency shall provide to the administrative law judge the address of the parent,
 legal custodian, or guardian of the child. If the lead investigative agency is not reasonably
 able to determine the address of the parent, legal custodian, or guardian of the child, the
 administrative law judge is not required to send a hearing notice under this subdivision.
  Article 1 Sec. 166.  156
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 167. Minnesota Statutes 2024, section 260E.35, subdivision 3, is amended to read:
      Subd. 3. Classification and release of data. (a) A written copy of a report maintained
  by personnel of agencies, other than welfare or law enforcement agencies, which are subject
  to chapter 13 shall be confidential. An individual subject of the report may obtain access
  to the original report as provided by paragraphs (g) to (o).
      (b) All reports and records created, collected, or maintained under this chapter by a local
  welfare agency or law enforcement agency may be disclosed to a local welfare or other
  child welfare agency of another state when the agency certifies that:
      (1) the reports and records are necessary to conduct an investigation of actions that would
 qualify as maltreatment under this chapter; and
     (2) the reports and records will be used only for purposes of a child protection assessment
 or investigation and will not be further disclosed to any other person or agency.
     (c) The local welfare agency or law enforcement agency in this state shall keep a record
 of all records or reports disclosed pursuant to this subdivision and of any agency to which
 the records or reports are disclosed. If, in any case, records or reports are disclosed before
 a determination is made under section 260E.24, subdivision 3, paragraph (a), or a disposition
 of a criminal proceeding is reached, the local welfare agency or law enforcement agency
 in this state shall forward the determination or disposition to any agency that has received
 a report or record under this subdivision.
     (d) The responsible authority of a local welfare agency or the responsible authority's
 designee may release private or confidential data on an active case involving assessment
 or investigation of actions that are defined as maltreatment under this chapter to a court
 services agency if:
     (1) the court services agency has an active case involving a common client who is the
 subject of the data; and
     (2) the data are necessary for the court services agency to effectively process the court
 services agency's case, including investigating or performing other duties relating to the
 case required by law.
     (e) The data disclosed under paragraph (d) may be used only for purposes of the active
 court services case described in paragraph (d), clause (1), and may not be further disclosed
 to any other person or agency, except as authorized by law.
  Article 1 Sec. 167.  157
  03/03/26   REVISOR  JSK/BM  26-06400
      (f) Records maintained under subdivision 4 6, paragraph (b), may be shared with another
  local welfare agency that requests the information because it is conducting an assessment
  or investigation under this section of the subject of the records.
      (g) Except as provided in paragraphs (b), (h), (i), (o), and (p); subdivision 1; and sections
  260E.22, subdivision 2; and 260E.23, all records concerning individuals maintained by a
  local welfare agency or agency responsible for assessing or investigating the report under
  this chapter, including any written reports filed under sections 260E.06 and 260E.09, shall
  be private data on individuals, except insofar as copies of reports are required by section
  260E.12, subdivision 1 or 2, to be sent to the local police department or the county sheriff.
     (h) All records concerning determinations of maltreatment by a facility are nonpublic
 data as maintained by the Department of Education, except insofar as copies of reports are
 required by section 260E.12, subdivision 1 or 2, to be sent to the local police department
 or the county sheriff.
     (i) Reports maintained by any police department or the county sheriff shall be private
 data on individuals, except the reports shall be made available to the investigating, petitioning,
 or prosecuting authority, including a county medical examiner or county coroner.
     (j) Section 13.82, subdivisions 8, 9, and 14, apply to law enforcement data other than
 the reports.
     (k) The local welfare agency or agency responsible for assessing or investigating the
 report shall make available to the investigating, petitioning, or prosecuting authority,
 including a county medical examiner or county coroner or a professional delegate, any
 records that contain information relating to a specific incident of maltreatment that is under
 investigation, petition, or prosecution and information relating to any prior incident of
 maltreatment involving any of the same persons. The records shall be collected and
 maintained according to chapter 13.
     (l) An individual subject of a record shall have access to the record according to those
 sections, except that the name of the reporter shall be confidential while the report is under
 assessment or investigation except as otherwise permitted by this section.
     (m) Any person conducting an investigation or assessment under this section who
 intentionally discloses the identity of a reporter before the completion of the investigation
 or assessment is guilty of a misdemeanor. After the assessment or investigation is completed,
 the name of the reporter shall be confidential. The subject of the report may compel disclosure
 of the name of the reporter only with the consent of the reporter or upon a written finding
 by the court that the report was false and that there is evidence that the report was made in
  Article 1 Sec. 167.  158
  03/03/26   REVISOR  JSK/BM  26-06400
  bad faith. This subdivision does not alter disclosure responsibilities or obligations under
  the Rules of Criminal Procedure.
(n) Upon request of the legislative auditor, data on individuals maintained under this
  chapter must be released to the legislative auditor in order for the auditor to fulfill the
  auditor's duties under section 3.971. The auditor shall maintain the data according to chapter
  13.
(o) Active law enforcement investigative data received by a local welfare agency or
  agency responsible for assessing or investigating the report under this chapter are confidential
  data on individuals. When this data become inactive in the law enforcement agency, the
 data are private data on individuals.
(p) Section 13.03, subdivision 4, applies to data received by the commissioner of
 education from a licensing entity.
   Sec. 168. Minnesota Statutes 2024, section 275.011, subdivision 1, is amended to read:
Subdivision 1. Determination of levy limit. The property tax levied for any purpose
 under a special law that is not codified in Minnesota Statutes or a city charter provision and
 that is subject to a mill rate limitation imposed by the special law or city charter provision,
 excluding levies subject to mill rate limitations that use adjusted assessed values determined
 by the commissioner of revenue under section 124.2131 sections 127A.48 and 275.1325,
 must not exceed the following amount for the years specified:
(a) for taxes payable in 1988, the product of the applicable mill rate limitation imposed
 by special law or city charter provision multiplied by the total assessed valuation of all
 taxable property subject to the tax as adjusted by the provisions of Minnesota Statutes 1986,
 sections 272.64; 273.13, subdivision 7a; and 275.49;
(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for the
 taxes payable year 1988 determined under clause (a) multiplied by (2) an index for market
 valuation changes equal to the assessment year 1988 total market valuation of all taxable
 property subject to the tax divided by the assessment year 1987 total market valuation of
 all taxable property subject to the tax; and
(c) for taxes payable in 1990 and subsequent years, the product of (1) the property tax
 levy limitation for the previous year determined pursuant to this subdivision multiplied by
 (2) an index for market valuation changes equal to the total market valuation of all taxable
 property subject to the tax for the current assessment year divided by the total market
 valuation of all taxable property subject to the tax for the previous assessment year.
  Article 1 Sec. 168.  159
  03/03/26   REVISOR  JSK/BM  26-06400
      For the purpose of determining the property tax levy limitation for the taxes payable
  year 2014 and subsequent years under this subdivision, "total market valuation" means the
  estimated market value of all taxable property subject to the tax as provided under section
  273.032.
    Sec. 169. Minnesota Statutes 2024, section 275.011, subdivision 2, is amended to read:
      Subd. 2. Construction of mill rate levy limit. A mill rate levy limitation imposed by
  a special law or city charter provision that is presently in effect, excluding those mill rate
  levy limitations that use adjusted assessed values determined by the commissioner of revenue
  under section 124.2131 sections 127A.48 and 275.1325, shall be construed to allow no more
 and no less property taxes than the amount determined under this section.
   Sec. 170. Minnesota Statutes 2024, section 290.01, subdivision 19, is amended to read:
     Subd. 19. Net income. (a) For a trust or estate taxable under section 290.03, and a
 corporation taxable under section 290.02, the term "net income" means the federal taxable
 income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through
 the date named in this subdivision, incorporating the federal effective dates of changes to
 the Internal Revenue Code and any elections made by the taxpayer in accordance with the
 Internal Revenue Code in determining federal taxable income for federal income tax
 purposes, and with the modifications provided in sections 290.0131 to 290.0136.
     (b) For an individual, the term "net income" means federal adjusted gross income with
 the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
     (c) In the case of a regulated investment company or a fund thereof, as defined in section
 851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
 company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
 except that:
     (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
 Revenue Code does not apply;
     (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
 Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
 dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
 and
  Article 1 Sec. 170.  160
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      (3) the deduction for dividends paid must also be applied in the amount of any
  undistributed capital gains which the regulated investment company elects to have treated
  as provided in section 852(b)(3)(D) of the Internal Revenue Code.
      (d) The net income of a real estate investment trust as defined and limited by section
  856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
  taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
      (e) The net income of a designated settlement fund as defined in section 468B(d) of the
  Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
  Revenue Code.
     (f) The Internal Revenue Code of 1986, as amended through May 1, 2023, applies for
 taxable years beginning after December 31, 1996.
     (g) Except as otherwise provided, references to the Internal Revenue Code in this
 subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of
 determining net income for the applicable year.
     (h) In the case of a partnership electing to file a composite return under section 289A.08,
 subdivision 7, "net income" means the partner's share of federal adjusted gross income from
 the partnership modified by the additions provided in section 290.0131, subdivisions 8 to
 10, 16, and 17, and 19, and the subtractions provided in: (1) section 290.0132, subdivisions
 9, 27, and 28, and 31, to the extent the amount is assignable or allocable to Minnesota under
 section 290.17; and (2) section 290.0132, subdivision 14. The subtraction allowed under
 section 290.0132, subdivision 9, is only allowed on the composite tax computation to the
 extent the electing partner would have been allowed the subtraction.
     (i) In the case of a qualifying entity electing to pay the pass-through entity tax under
 section 289A.08, subdivision 7a, "net income" means the qualifying owner's share of federal
 adjusted gross income from the qualifying entity modified by the additions provided in
 section 290.0131, subdivisions 5, 8 to 10, 16, and 17, and 19, and the subtractions provided
 in: (1) section 290.0132, subdivisions 3, 9, 27, and 28, and 31, to the extent the amount is
 assignable or allocable to Minnesota under section 290.17; and (2) section 290.0132,
 subdivision 14. The subtraction allowed under section 290.0132, subdivision 9, is only
 allowed on the pass-through entity tax computation to the extent the qualifying owners
 would have been allowed the subtraction. The income of both a resident and nonresident
 qualifying owner is allocated and assigned to this state as provided for nonresident partners
 and shareholders under sections 290.17, 290.191, and 290.20.
  Article 1 Sec. 170.  161
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    Sec. 171. Minnesota Statutes 2024, section 290.0132, subdivision 32, is amended to read:
      Subd. 32. Delayed net operating loss deduction. The amount of the sum of each addition
  required in section 290.0131, subdivision 20, for each taxable year, except as otherwise
  provided, less the sum of all amounts subtracted under this subdivision in all prior taxable
  years, that does not exceed 80 percent of federal taxable income as defined in section 290.01,
  subdivision 19, paragraph (b), determined without regard to this subdivision, is a subtraction.
  Any excess is a delayed net operating loss deduction carryforward, the entire amount of
  which must be carried to the earliest taxable year. No subtraction under this subdivision is
  allowed after 20 taxable years from the taxable year in which an operating loss arises. The
 sum of the additions required under section 290.0131, subdivision 20, paragraph (a), are
 aggregated and assigned to the taxable year immediately succeeding the taxable year in
 which the operating loss arises, for purposes of determining the subtraction allowed under
 this subdivision in that succeeding taxable year and the amount carried forward.
   Sec. 172. Minnesota Statutes 2024, section 290.095, subdivision 11, is amended to read:
     Subd. 11. Carryback or carryover adjustments. (a) Except as provided in paragraphs
 paragraph (c) and (d), for individuals, estates, and trusts the amount of a net operating loss
 that may be carried back or carried over shall be the same dollar amount allowable in the
 determination of federal taxable income, provided that, notwithstanding any other provision,
 estates and trusts must apply the following adjustments to the amount of the net operating
 loss that may be carried back or carried over:
     (1) Nonassignable income or losses as required by section 290.17.
     (2) Deductions not allocable to Minnesota under section 290.17.
     (b) The net operating loss carryback or carryover applied as a deduction in the taxable
 year to which the net operating loss is carried back or carried over shall be equal to the net
 operating loss carryback or carryover applied in the taxable year in arriving at federal taxable
 income provided that trusts and estates must apply the following modifications:
     (1) Increase the amount of carryback or carryover applied in the taxable year by the
 amount of losses and interest, taxes and other expenses not assignable or allowable to
 Minnesota incurred in the taxable year.
     (2) Decrease the amount of carryback or carryover applied in the taxable year by the
 amount of income not assignable to Minnesota earned in the taxable year. For estates and
 trusts, the net operating loss carryback or carryover to the next consecutive taxable year
 shall be the net operating loss carryback or carryover as calculated in clause (b) less the
  Article 1 Sec. 172.  162
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  amount applied in the earlier taxable year(s). No additional net operating loss carryback or
  carryover shall be allowed to estates and trusts if the entire amount has been used to offset
  Minnesota income in a year earlier than was possible on the federal return. However, if a
  net operating loss carryback or carryover was allowed to offset federal income in a year
  earlier than was possible on the Minnesota return, an estate or trust shall still be allowed to
  offset Minnesota income but only if the loss was assignable to Minnesota in the year the
  loss occurred.
      (c) This paragraph does not apply to eligible small businesses that make a valid election
  to carry back their losses for federal purposes under section 172(b)(1)(H) of the Internal
 Revenue Code as amended through March 31, 2009.
     (1) A net operating loss of an individual, estate, or trust that is allowed under this
 subdivision and for which the taxpayer elects to carry back for more than two years under
 section 172(b)(1)(H) of the Internal Revenue Code is a net operating loss carryback to each
 of the two taxable years preceding the loss, and unused portions may be carried forward for
 20 taxable years after the loss.
     (2) The entire amount of the net operating loss for any taxable year must be carried to
 the earliest of the taxable years to which the loss may be carried. The portion of the loss
 which may be carried to each of the other taxable years is the excess, if any, of the amount
 of the loss over the greater of the taxable net income or alternative minimum taxable income
 for each of the taxable years to which the loss may be carried.
     (d) The amount of a net operating loss carried forward must be reduced by any amounts
 used for the subtraction in section 290.0132, subdivision 33, in the next taxable year
 following the subtraction in which a net operating loss deduction is claimed.
   Sec. 173. Minnesota Statutes 2024, section 295.50, subdivision 4, is amended to read:
     Subd. 4. Health care provider. (a) "Health care provider" means:
     (1) a person whose health care occupation is regulated or required to be regulated by
 the state of Minnesota furnishing any or all of the following goods or services directly to a
 patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services,
 drugs, laboratory, diagnostic or therapeutic services;
     (2) a person who provides goods and services not listed in clause (1) that qualify for
 reimbursement under the medical assistance program provided under chapter 256B;
     (3) a staff model health plan company;
  Article 1 Sec. 173.  163
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      (4) an ambulance service required to be licensed;
      (5) a person who sells or repairs hearing aids and related equipment or prescription
  eyewear; or
      (6) a person providing patient services, who does not otherwise meet the definition of
  health care provider and is not specifically excluded in clause (b), who employs or contracts
  with a health care provider as defined in clauses (1) to (5) to perform, supervise, otherwise
  oversee, or consult with regarding patient services.
      (b) Health care provider does not include:
      (1) hospitals; medical supplies distributors, except as specified under paragraph (a),
 clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction;
 wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation,
 or any other providers of transportation services other than ambulance services required to
 be licensed; supervised living facilities for persons with developmental disabilities, licensed
 under Minnesota Rules, parts 4665.0100 to 4665.9900; housing with services establishments
 required to be registered under chapter 144D assisted living facilities required to be licensed
 under chapter 144G; board and lodging establishments providing only custodial services
 that are licensed under chapter 157 and registered under section 157.17 to provide supportive
 services or health supervision services; adult foster homes as defined in Minnesota Rules,
 part 9555.5105; day training and habilitation services for adults with developmental
 disabilities as defined in section 252.41, subdivision 3; boarding care homes, as defined in
 Minnesota Rules, part 4655.0100; and adult day care centers as defined in Minnesota Rules,
 part 9555.9600;
     (2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 15; a
 person providing personal care services and supervision of personal care services as defined
 in Minnesota Rules, part 9505.0335 under sections 256B.0625, subdivision 19a, and 256B.85;
 a person providing home care nursing services as defined in Minnesota Rules, part 9505.0360;
 and home care providers required to be licensed under chapter 144A for home care services
 provided under chapter 144A;
     (3) a person who employs health care providers solely for the purpose of providing
 patient services to its employees;
     (4) an educational institution that employs health care providers solely for the purpose
 of providing patient services to its students if the institution does not receive fee for service
 payments or payments for extended coverage; and
  Article 1 Sec. 173.  164
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      (5) a person who receives all payments for patient services from health care providers,
  surgical centers, or hospitals for goods and services that are taxable to the paying health
  care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision
  1, paragraph (b), clause (3) or (4), or from a source of funds that is excluded or exempt from
  tax under sections 295.50 to 295.59.
    Sec. 174. Minnesota Statutes 2024, section 295.81, subdivision 1, is amended to read:
      Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
  the meanings given.
      (b) "Bundled transaction" means the retail sale of two or more products when the products
 are otherwise distinct and identifiable and the products are sold for one nonitemized price.
     (c) "Cannabis flower" has the meaning given in section 342.01, subdivision 16.
     (d) "Cannabis product" has the meaning given in section 342.01, subdivision 20.
     (e) "Cannabis solution product" means any cartridge, bottle, or other package that contains
 a taxable cannabis product in a solution that is consumed or meant to be consumed through
 the use of a heating element, power source, electronic circuit, or other electronic, chemical,
 or mechanical means that produces vapor or aerosol. A cannabis solution product includes
 any electronic delivery system, electronic vaping device, electronic vape pen, electronic
 oral device, electronic delivery device, or similar product or device, and any batteries,
 heating elements, or other components, parts, or accessories sold with and meant to be used
 in the consumption of a solution containing a taxable cannabis product.
     (f) "Cannabis mezzobusiness" means a cannabis business licensed under section 342.29.
     (g) "Cannabis microbusiness" means a cannabis business licensed under section 342.28.
     (h) "Cannabis retailer" means a cannabis business licensed under section 342.32.
     (i) "Commissioner" means the commissioner of revenue.
     (j) "Gross receipts" means the total amount received in money or by barter or exchange
 for all taxable cannabis product sales at retail as measured by the sales price. Gross receipts
 include but are not limited to delivery charges and packaging costs. Gross receipts do not
 include:
     (1) any taxes imposed directly on the customer that are separately stated on the invoice,
 bill of sale, or similar document given to the purchaser; and
  Article 1 Sec. 174.  165
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(2) discounts, including cash, terms, or coupons, that are not reimbursed by a third party
  and that are allowed by the seller and taken by a purchaser on a sale.
(k) "Hemp-derived consumer product" has the meaning given in section 342.01,
  subdivision 37.
(l) "Lower-potency hemp edible" has the meaning given in section 342.01, subdivision
  50.
(m) "Lower-potency hemp edible retailer" means a cannabis business licensed under
  section 342.43, subdivision 1, clause (2).
(n) "Medical cannabis flower" has the meaning given in section 342.01, subdivision 54.
(o) "Medical cannabinoid product" has the meaning given in section 342.01, subdivision
 52.
(p) "Medical cannabis paraphernalia" has the meaning given in section 342.01,
 subdivision 55 54a.
(q) "Retail sale" has the meaning given in section 297A.61, subdivision 4.
(r) "Taxable cannabis product" means cannabis flower, cannabis product, cannabis
 solution product, hemp-derived consumer product, lower-potency hemp edible, and any
 substantially similar item.
(s) "Taxable cannabis product retailer" means a retailer that sells any taxable cannabis
 product, and includes a cannabis retailer, cannabis microbusiness, cannabis mezzobusiness,
 medical cannabis combination business, and lower-potency hemp edible retailer. Taxable
 cannabis product retailer includes but is not limited to a:
(1) retailer maintaining a place of business in this state;
(2) marketplace provider maintaining a place of business in this state, as defined in
 section 297A.66, subdivision 1, paragraph (a);
(3) retailer not maintaining a place of business in this state; and
(4) marketplace provider not maintaining a place of business in this state, as defined in
 section 297A.66, subdivision 1, paragraph (b).
   Sec. 175. Minnesota Statutes 2024, section 296A.06, subdivision 1, is amended to read:
Subdivision 1. Revocation of license, permit, or certificate. If any person fails to
 comply with this chapter or the rules adopted under this chapter, without reasonable cause,
 the commissioner may give the person 30 days' notice in writing, specifying the violations,
  Article 1 Sec. 175.  166
  03/03/26   REVISOR  JSK/BM  26-06400
  and stating that based upon such violations the commissioner intends to revoke the person's
  license, permit, or certificate. The notice shall also advise the person of the person's right
  to contest the revocation under this section and the general procedures for a contested case
  hearing under chapter 14. The notice may be served personally or by mail in the manner
  prescribed for service of an order of assessment. A license, permit, or certificate is revoked
  when the commissioner serves a notice of revocation upon the person after 30 days have
  passed following the date of the notice of intent to revoke without the person requesting a
  hearing. If a hearing is timely requested and held, the license, permit, or certificate is revoked
  after the commissioner serves an order of revocation under section 14.62, subdivision 1.
   Sec. 176. Minnesota Statutes 2024, section 297A.9915, subdivision 5, is amended to read:
     Subd. 5. Revenue bonds. (a) In addition to other authority granted in this section, and
 notwithstanding section 473.39, subdivision 7, or any other law to the contrary, the council
 may, by resolution, authorize the sale and issuance of revenue bonds, notes, or obligations
 to provide funds to (1) implement the council's transit capital improvement program, and
 (2) refund bonds issued under this subdivision.
     (b) The bonds are payable from and secured by a pledge of all or part of the revenue
 received under subdivision 4, paragraph (a), clause (1), and associated investment earnings
 on debt proceeds. The council may, by resolution, authorize the issuance of the bonds as
 general obligations of the council. The bonds must be sold, issued, and secured in the manner
 provided in chapter 475, and the council has the same powers and duties as a municipality
 and its governing body in issuing bonds under chapter 475, except that no election is required
 and the net debt limitations in chapter 475 do not apply to such bonds. The proceeds of the
 bonds may also be used to fund necessary reserves and to pay credit enhancement fees,
 issuance costs, and other financing costs during the life of the debt.
     (c) The bonds may be secured by a bond resolution, or a trust indenture entered into by
 the council with a corporate trustee within or outside the state, which must define the
 revenues and bond proceeds pledged for the payment and security of the bonds. The pledge
 must be a valid charge on the revenues received under section 297A.99, subdivision 11.
 Neither the state, nor any municipality or political subdivision except the council, nor any
 member or officer or employee of the council, is liable on the obligations. No mortgage or
 security interest in any tangible real or personal property is granted to the bondholders or
 the trustee, but they have a valid security interest in the revenues and bond proceeds received
 by the council and pledged to the payment of the bonds. In the bond resolution or trust
  Article 1 Sec. 176.  167
  03/03/26   REVISOR  JSK/BM  26-06400
  indenture, the council may make such covenants as it determines to be reasonable for the
  protection of the bondholders.
    Sec. 177. Minnesota Statutes 2024, section 297I.20, subdivision 1, is amended to read:
      Subdivision 1. Guaranty association assessment offsets. (a) An insurance company
  or health maintenance organization may offset against its premium tax liability to this state
  any amount paid for assessments made for insolvencies under sections 60C.01 to 60C.22;
  and any amount paid for assessments under sections 61B.18 to 61B.32 as follows:
      (1) Each such assessment shall give rise to an amount of offset equal to 20 percent of
  the amount of the assessment for each of the five calendar years following the year in which
 the assessment was paid.
     (2) The amount of offset initially determined for each taxable year is the sum of the
 amounts determined under clause (1) for that taxable year.
     (b)(1) Each year the commissioner shall compare total guaranty association assessments
 levied over the preceding five calendar years to the sum of all premium tax and corporate
 franchise tax revenues collected from insurance companies and health maintenance
 organizations, without reduction for any guaranty association assessment offset in the
 preceding calendar year, referred to in this subdivision as "preceding year insurance tax
 revenues."
     (2) If total guaranty association assessments levied over the preceding five years exceed
 the preceding year insurance tax revenues, insurance companies and health maintenance
 organizations must be allowed only a proportionate part of the premium tax offset calculated
 under paragraph (a) for the current calendar year.
     (3) The proportionate part of the premium tax offset allowed in the current calendar year
 is determined by multiplying the amount calculated under paragraph (a) by a fraction. The
 numerator of the fraction equals the preceding year insurance tax revenues, and its
 denominator equals total guaranty association assessments levied over the preceding five-year
 period.
     (4) The proportionate part of the premium tax offset that is not allowed must be carried
 forward to subsequent tax years and added to the amount of premium tax offset calculated
 under paragraph (a) prior to application of the limitation imposed by this paragraph.
     (5) Any amount carried forward from prior years must be allowed before allowance of
 the offset for the current year calculated under paragraph (a).
  Article 1 Sec. 177.  168
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      (6) The premium tax offset limitation must be calculated separately for (i) insurance
  companies subject to assessment under sections 60C.01 to 60C.22, and (ii) insurance
  companies or health maintenance organizations subject to assessment under sections 61B.18
  to 61B.32.
      (7) When the premium tax offset is limited by this provision, the commissioner shall
  notify affected insurance companies or health maintenance organizations on a timely basis
  for purposes of completing premium and corporate franchise tax returns.
      (8) The guaranty associations created under sections 60C.01 to 60C.22 and 61B.18 to
  61B.32 shall provide the commissioner with the necessary information on guaranty
 association assessments.
     (c)(1) If the offset determined by the application of paragraphs (a) and (b) exceeds the
 insurance company's or health maintenance organization's premium tax liability under this
 section chapter prior to allowance of the credit for premium taxes, then the insurance
 company or health maintenance organization may carry forward the excess, referred to in
 this subdivision as the "carryforward credit" to subsequent taxable years.
     (2) The carryforward credit is allowed as an offset against premium tax liability for the
 first succeeding year to the extent that the premium tax liability for that year exceeds the
 amount of the allowable offset for the year determined under paragraphs (a) and (b).
     (3) The carryforward credit must be reduced, but not below zero, by the amount of the
 carryforward credit allowed as an offset against the premium tax under this paragraph. The
 remainder, if any, of the carryforward credit must be carried forward to succeeding taxable
 years until the entire carryforward credit has been credited against the insurance company's
 or health maintenance organization's liability for premium tax under this chapter if applicable
 for that taxable year.
     (d) When an insurer or health maintenance organization has offset against taxes its
 payment of an assessment of the Minnesota Life and Health Guaranty Association, and the
 association pays the insurer or health maintenance organization a refund with respect to the
 assessment under section 61B.24, subdivision 6, then the refund reduces the insurer's or
 health maintenance organization's carryforward credit under paragraph (c). If the refund
 exceeds the amount of the carryforward credit, the excess amount must be repaid to the
 state by the insurers or health maintenance organizations to the extent of the offset in the
 manner the commissioner requires.
  Article 1 Sec. 177.  169
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    Sec. 178. Minnesota Statutes 2024, section 297I.20, subdivision 3, is amended to read:
      Subd. 3. Historic structure rehabilitation credit. An insurance company may claim
  a credit against the premiums tax imposed under this chapter equal to the amount of the
  credit certificate issued to it, or to a person who has assigned the credit to the insurance
  company, under section 290.0681. If the amount of the credit exceeds the liability for tax
  under this chapter, the commissioner shall refund the excess to the insurance company. An
  amount sufficient to pay the refunds under this section subdivision is appropriated to the
  commissioner from the general fund. This credit does not affect the calculation of fire state
  aid under section 477B.03 and police state aid under section 477C.03.
   Sec. 179. Minnesota Statutes 2025 Supplement, section 297I.20, subdivision 7, is amended
 to read:
     Subd. 7. Reinsurance credit. Beginning with taxable years after December 31, 2028,
 a taxpayer may claim a credit against the premiums tax imposed under this chapter equal
 to the amount of the assessment paid by the taxpayer under section 62E.23 in the immediately
 preceding calendar year. If the amount of the credit exceeds the liability for tax under this
 chapter, the commissioner must refund the excess to the insurance company. An amount
 sufficient to pay the refunds under this section subdivision is appropriated to the
 commissioner from the general fund. The credit under this subdivision does not affect the
 calculation of fire state aid under section 477B.03 and police state aid under section 477C.03.
 The commissioner of commerce must annually provide to the commissioner a list of
 assessments paid by taxpayers under section 62E.23 by March 1 of the calendar year
 following the assessment.
   Sec. 180. Minnesota Statutes 2024, section 298.75, subdivision 2, is amended to read:
     Subd. 2. Tax imposed. (a) Except as provided in paragraph (e), A county that imposes
 the aggregate production tax shall impose upon every operator a production tax of 21.5
 cents per cubic yard or 15 cents per ton of aggregate material excavated in the county except
 that the county board may decide not to impose this tax if it determines that in the previous
 year operators removed less than 20,000 tons or 14,000 cubic yards of aggregate material
 from that county. The tax shall not be imposed on aggregate material excavated in the county
 until the aggregate material is transported from the extraction site or sold, whichever occurs
 first. When aggregate material is stored in a stockpile within the state of Minnesota and a
 public highway, road or street is not used for transporting the aggregate material, the tax
  Article 1 Sec. 180.  170
  03/03/26   REVISOR  JSK/BM  26-06400
  shall not be imposed until either when the aggregate material is sold, or when it is transported
  from the stockpile site, or when it is used from the stockpile, whichever occurs first.
      (b) Except as provided in paragraph (e), A county that imposes the aggregate production
  tax under paragraph (a) shall impose upon every importer a production tax of 21.5 cents
  per cubic yard or 15 cents per ton of aggregate material imported into the county. The tax
  shall be imposed when the aggregate material is imported from the extraction site or sold.
  When imported aggregate material is stored in a stockpile within the state of Minnesota and
  a public highway, road, or street is not used for transporting the aggregate material, the tax
  shall be imposed either when the aggregate material is sold, when it is transported from the
 stockpile site, or when it is used from the stockpile, whichever occurs first. The tax shall
 be imposed on an importer when the aggregate material is imported into the county that
 imposes the tax.
     (c) If the aggregate material is transported directly from the extraction site to a waterway,
 railway, or another mode of transportation other than a highway, road or street, the tax
 imposed by this section shall be apportioned equally between the county where the aggregate
 material is extracted and the county to which the aggregate material is originally transported.
 If that destination is not located in Minnesota, then the county where the aggregate material
 was extracted shall receive all of the proceeds of the tax.
     (d) A county, city, or town that receives revenue under this section is prohibited from
 imposing any additional host community fees on aggregate production within that county,
 city, or town.
     (e) A county that borders two other states and that is not contiguous to a county that
 imposes a tax under this section may impose the taxes under paragraphs (a) and (b) at the
 rate of ten cents per cubic yard or seven cents per ton. This paragraph expires December
 31, 2024.
   Sec. 181. Minnesota Statutes 2025 Supplement, section 299C.061, subdivision 1, is
 amended to read:
     Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
 the meanings given.
     (b) "Fraud involving state funded or administered programs or services" includes any
 violation of section 609.445, 609.465, 609.466, 609.52, 609.5523, 609.611, 609.651,
 609.7475, or 609.821 involving a state agency or state-funded or administered program or
 service.
  Article 1 Sec. 181.  171
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(c) "Peace officer" has the meaning given in section 626.84, subdivision 1, paragraph
  (c).
(d) "Section" means the Financial Crimes and Fraud Section of the Bureau of Criminal
  Apprehension.
(e) "State agency" has the meaning given in section 13.02, subdivision 17.
(f) "Superintendent" means the superintendent of the Bureau of Criminal Apprehension.
    Sec. 182. Minnesota Statutes 2024, section 309.531, subdivision 2, is amended to read:
Subd. 2. Required registration statement. The registration statement of the professional
  fundraiser shall consist of the following:
(a) (1) If the professional fundraiser at any time has custody of or access to contributions
 from a solicitation, or if any person the professional fundraiser employs, obtains, or engages
 has custody of or access to contributions from a solicitation, the registration statement shall
 include a bond, in which the professional fundraiser shall be the principal obligor. The bond
 shall be in the sum of $20,000, with one or more responsible sureties whose liability in the
 aggregate as the sureties will at least equal that sum. In order to maintain the registration,
 the bond shall be in effect for the full term of the registration. The bond, which may be in
 the form of a rider to a larger blanket liability bond, shall run to the state and to any person
 who may have a cause of action against the principal obligor of the bond for any liabilities
 resulting from the obligor's conduct of any activities subject to sections 309.50 to 309.61
 or arising out of a violation of the statutes or a rule adopted under the statutes.
(b) (2) If the professional fundraiser, or any person the professional fundraiser employs,
 procures, or engages, solicits in this state, the registration statement shall include a completed
 "solicitation notice" on a form provided by the attorney general. The solicitation notice shall
 include a copy of the contract described in paragraph (c) clause (3), the projected dates
 when soliciting will commence and terminate, the location and telephone number from
 where the solicitation will be conducted, the name and residence address of each person
 responsible for directing and supervising the conduct of the campaign, a statement as to
 whether the professional fundraiser will at any time have custody of contributions, and a
 description of the charitable program for which the solicitation campaign is being carried
 out. The charitable organization on whose behalf the professional fundraiser is acting shall
 certify that the solicitation notice and accompanying material are true and complete to the
 best of its knowledge.
  Article 1 Sec. 182.  172
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(c) (3) The professional fundraiser shall also include, as part of the registration statement,
  a copy of the contract between the charitable organization and the professional fundraiser.
  The contract shall:
(1) (i) be in writing;
(2) (ii) contain information as will enable the attorney general to identify the services
  the professional fundraiser is to provide, including whether the professional fundraiser will
  at any time have custody of contributions; and
(3) (iii) if the professional fundraiser or any person the professional fundraiser employs,
  procures, or engages, directly or indirectly, solicits in this state, the contract shall disclose
 the percentage or a reasonable estimate of the percentage of the total amount solicited from
 each person which shall be received by the charitable organization for charitable purposes.
The stated percentages required by this section and section 309.556, subdivision 2, shall
 exclude any amount which the charitable organization is to pay as expenses of the solicitation
 campaign, including the cost of merchandise or services sold or events staged.
(d) (4) The registration statement shall also include the financial report for previous
 campaigns conducted by the professional fundraiser in this state as set forth in subdivision
 4.
   Sec. 183. Minnesota Statutes 2024, section 321.1109, is amended to read:
321.1109 EFFECT OF MERGER.
(a) When a merger becomes effective:
(1) the surviving organization continues or comes into existence;
(2) each constituent organization that merges into the surviving organization ceases to
 exist as a separate entity;
(3) all property owned by each constituent organization that ceases to exist vest in the
 surviving organization;
(4) all debts, liabilities, and other obligations of each constituent organization that ceases
 to exist continue as obligations of the surviving organization;
(5) an action or proceeding pending by or against any constituent organization that ceases
 to exist may be continued as if the merger had not occurred;
  Article 1 Sec. 183.  173
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(6) except as prohibited by other law, all of the rights, privileges, immunities, powers,
  and purposes of each constituent organization that ceases to exist vest in the surviving
  organization;
(7) except as otherwise provided in the plan of merger, the terms and conditions of the
  plan of merger take effect; and
(8) except as otherwise agreed, if a constituent limited partnership ceases to exist, the
  merger does not dissolve the limited partnership for the purposes of article 8;
(9) if the surviving organization is created by the merger:
(A) if it is a limited partnership, the certificate of limited partnership becomes effective;
 or
(B) if it is an organization other than a limited partnership, the organizational document
 that creates the organization becomes effective; and
(10) if the surviving organization preexists the merger, any amendments provided for
 in the articles of merger for the organizational document that created the organization become
 effective.
(b) A surviving organization that is a foreign organization consents to the jurisdiction
 of the courts of this state to enforce any obligation owed by a constituent organization, if
 before the merger the constituent organization was subject to suit in this state on the
 obligation. A surviving organization that is a foreign organization and not authorized to
 transact business in this state appoints the secretary of state as its agent for service of process
 for the purposes of enforcing an obligation under this subsection. Service on the secretary
 of state under this subsection is made in the same manner and with the same consequences
 as in section 321.0117(c) and (d).
   Sec. 184. Minnesota Statutes 2024, section 325F.071, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have
 the meanings given.
(b) "Child" means a person under 12 years of age.
(c) "Children's product" means a product primarily designed or intended by a
 manufacturer to be used by or for a child, including any article used as a component of such
 a product, but excluding a food, beverage, dietary supplement, pharmaceutical product or
 biologic, children's toys that are subject to the most recent version of the American Society
 for Testing and Materials F963, Standard Consumer Safety Specification for Toy Safety, a
  Article 1 Sec. 184.  174
  03/03/26   REVISOR  JSK/BM  26-06400
  medical device as defined in the Federal Food, Drug, and Cosmetic Act, United States Code,
  title 21, section 321(h), and products listed under section 116.9405, clauses (10) and (11),
  and products listed under sections 325F.03 and 325F.04.
      (d) "Upholstered residential furniture" means furniture with padding, coverings, and
  cushions intended and sold for use in the home.
      (e) "Mattress" means a mattress as defined in Code of Federal Regulations, title 16,
  section 1632.1.
      (f) "Organohalogenated chemical" means any chemical that contains one or more carbon
  elements and one or more halogen elements, including fluorine, chlorine, bromine, or iodine.
     (g) "Residential textile" means a textile designed for use in the home as a covering on
 windows or walls.
   Sec. 185. Minnesota Statutes 2024, section 327B.04, subdivision 8, is amended to read:
     Subd. 8. Limited dealer's license. The commissioner shall issue a limited dealer's license
 to an owner of a manufactured home park authorizing the licensee as principal only to
 engage in the sale, offering for sale, soliciting, or advertising the sale of used manufactured
 homes located in the owned manufactured home park. The licensee must be the title holder
 of the homes and may engage in no more than ten sales during each year of the two-year
 licensure period. An owner may, upon payment of the applicable fee and compliance with
 this subdivision, obtain a separate license for each owned manufactured home park and is
 entitled to sell up to 20 homes per license period provided that only one limited dealer
 license may be issued for each park. The license shall be issued after:
     (1) receipt of an application on forms provided by the commissioner containing the
 following information:
     (i) the identity of the applicant;
     (ii) the name under which the applicant will be licensed and do business in this state;
     (iii) the name and address of the owned manufactured home park, including a copy of
 the park license, serving as the basis for the issuance of the license;
     (iv) the name, home, and business address of the applicant;
     (v) the name, address, and telephone number of one individual that is designated by the
 applicant to receive all communications and cooperate with all inspections and investigations
 of the commissioner pertaining to the sale of manufactured homes in the manufactured
 home park owned by the applicant;
  Article 1 Sec. 185.  175
  03/03/26   REVISOR  JSK/BM  26-06400
      (vi) whether the applicant or its designated individual has been convicted of a crime
  within the previous ten years that is either related directly to the business for which the
  license is sought or involved fraud, misrepresentation or misuse of funds, or has suffered a
  judgment in a civil action involving fraud, misrepresentation, or conversion within the
  previous five years or has had any government license or permit suspended or revoked as
  a result of an action brought by a federal or state governmental agency in this or any other
  state within the last five years; and
      (vii) the applicant's qualifications and business history, including whether the applicant
  or its designated individual has ever been adjudged bankrupt or insolvent, or has any
 unsatisfied court judgments outstanding against it or them;
     (2) payment of the license fee established by subdivision 7a; and
     (3) provision of a surety bond in the amount of $5,000. A separate surety bond must be
 provided for each limited license.
     The applicant need not comply with subdivision 4, paragraph (e). The holding of a
 limited dealer's license does not satisfy the requirement contained in subdivision 4, paragraph
 (e), for the licensee or salespersons with respect to obtaining a dealer license. The
 commissioner may, upon application for a renewal of a license, require only a verification
 that copies of sales documents have been retained and payment of the renewal fees established
 by section 326B.092. "Sales documents" mean only the safety feature disclosure notice of
 compliance form defined in under section 327C.07, subdivision 3a 327.32, subdivision 1a,
 title of the home, financing agreements, and purchase agreements.
     The license holder shall, upon request of the commissioner, make available for inspection
 during business hours sales documents required to be retained under this subdivision.
   Sec. 186. Minnesota Statutes 2024, section 332.30, is amended to read:
     332.30 ACCELERATED MORTGAGE PAYMENT PROVIDER; BOND
 REQUIREMENTS.
     (a) Before beginning business in this state, an accelerated mortgage payment provider,
 as defined in section 332A.02, subdivision 8, clause (9) (10), shall submit to the
 commissioner of commerce an authorization fee of $250 and either:
     (1) a surety bond in which the accelerated mortgage payment provider is the obligor, in
 an amount determined by the commissioner; or
     (2) if the commissioner agrees to accept it, a deposit:
  Article 1 Sec. 186.  176
  03/03/26   REVISOR  JSK/BM  26-06400
      (i) in cash in an amount equivalent to the bond amount; or
      (ii) of authorized securities, as defined in section 50.14, with an aggregate market value
  equal to the bond amount. The cash or securities must be deposited with the commissioner
  of management and budget.
      (b) The amount of the bond required by the commissioner shall vary with the amount
  of Minnesota client funds held or to be held by the obligor. For new businesses, the bond
  must be no less than $100,000, except as provided in section 332.301. The commissioner
  may increase the required bond amount upon 30 days' notice to the accelerated mortgage
  payment provider.
     (c) If a bond is submitted, it must name as surety an insurance company authorized to
 transact fidelity and surety business in this state. The bond must run to the state of Minnesota
 for the use of the state and of any person who may have a claim against the obligor arising
 out of the obligor's activities as an accelerated mortgage payment provider. The bond must
 be conditioned that the obligor will not commit any fraudulent act and will faithfully conform
 to and abide by the provisions of accelerated mortgage payment agreements with Minnesota
 residents.
     (d) If an accelerated mortgage payment provider has failed to account to a mortgagor
 or distribute funds to the mortgagee as required by an accelerated mortgage payment
 agreement, the mortgagor or the mortgagor's legal representative or receiver or the
 commissioner shall have, in addition to any other legal remedies, a right of action in the
 name of the debtor on the bond or the security given pursuant to this section.
     (e) Section 58A.04, subdivisions 2 and 3, apply to this section.
   Sec. 187. Minnesota Statutes 2024, section 336.7-209, is amended to read:
     336.7-209 LIEN OF WAREHOUSE.
     (a) A warehouse has a lien against the bailor on the goods covered by a warehouse receipt
 or storage agreement or on the proceeds thereof in its possession for charges for storage or
 transportation, including demurrage and terminal charges, insurance, labor, or other charges,
 present or future, in relation to the goods, and for expenses necessary for preservation of
 the goods or reasonably incurred in their sale pursuant to law. If the person on whose account
 the goods are held is liable for similar charges or expenses in relation to other goods whenever
 deposited and it is stated in the warehouse receipt or storage agreement that a lien is claimed
 for charges and expenses in relation to other goods, the warehouse also has a lien against
 the goods covered by the warehouse receipt or storage agreement or on the proceeds thereof
  Article 1 Sec. 187.  177
  03/03/26   REVISOR  JSK/BM  26-06400
  in its possession for those charges and expenses, whether or not the other goods have been
  delivered by the warehouse. However, as against a person to which a negotiable warehouse
  receipt is duly negotiated, a warehouse's lien is limited to charges in an amount or at a rate
  specified in the warehouse receipt or, if no charges are so specified, to a reasonable charge
  for storage of the specific goods covered by the receipt subsequent to the date of the receipt.
      (b) A warehouse may also reserve a security interest against the bailor for the maximum
  amount specified on the receipt for charges other than those specified in subsection (a),
  such as for money advanced and interest. The security interest is governed by article 9.
      (c) A warehouse's lien for charges and expenses under subsection (a) or a security interest
 under subsection (b) is also effective against any person that so entrusted the bailor with
 possession of the goods that a pledge of them by the bailor to a good faith purchaser for
 value would have been valid. However, the lien or security interest is not effective against
 a person that before issuance of a document of title had a legal interest or a perfected security
 interest in the goods and that did not:
     (1) deliver or entrust the goods or any document of title covering the goods to the bailor
 or the bailor's nominee with:
     (A) actual or apparent authority to ship, store, or sell;
     (B) power to obtain delivery under section 336.7-403; or
     (C) power of disposition under section 336.2-403, 336.2A-304(2), 336.2A-305(2),
 336.9-320, or 336.9-321(c) or other statute or rule of law; or
     (2) acquiesce in the procurement by the bailor or its nominee of any document.
     (d) A warehouse's lien on household goods for charges and expenses in relation to the
 goods under subsection (a) is also effective against all persons if the depositor was the legal
 possessor of the goods at the time of deposit. In this subsection, "household goods" means
 furniture, furnishings, or personal effects used by the depositor in a dwelling.
     (e) A warehouse loses its lien on any goods that it voluntarily delivers or unjustifiably
 refuses to deliver.
   Sec. 188. Minnesota Statutes 2024, section 336.9-317, is amended to read:
     336.9-317 INTERESTS THAT TAKE PRIORITY OVER OR TAKE FREE OF
 SECURITY INTEREST OR AGRICULTURAL LIEN.
     (a) Conflicting security interests and rights of lien creditors. A security interest or
 agricultural lien is subordinate to the rights of:
  Article 1 Sec. 188.  178
  03/03/26   REVISOR  JSK/BM  26-06400
      (1) a person entitled to priority under section 336.9-322; and
      (2) except as otherwise provided in subsection (e), a person that becomes a lien creditor
  before the earlier of the time:
      (A) the security interest or agricultural lien is perfected; or
      (B) one of the conditions specified in section 336.9-203(b)(3) is met and a financing
  statement covering the collateral is filed.
      (b) Buyers that receive delivery. Except as otherwise provided in subsection (e), a
  buyer, other than a secured party, of goods, instruments, tangible documents, or a certificated
  security certificate takes free of a security interest or agricultural lien if the buyer gives
 value and receives delivery of the collateral without knowledge of the security interest or
 agricultural lien and before it is perfected.
     (c) Lessees that receive delivery. Except as otherwise provided in subsection (e), a
 lessee of goods takes free of a security interest or agricultural lien if the lessee gives value
 and receives delivery of the collateral without knowledge of the security interest or
 agricultural lien and before it is perfected.
     (d) Licensees and buyers of certain collateral. Subject to subsections (f) through (i),
 a licensee of a general intangible or a buyer, other than a secured party, of collateral other
 than electronic money, goods, instruments, tangible documents, or a certificated security
 takes free of a security interest if the licensee or buyer gives value without knowledge of
 the security interest and before it is perfected.
     (e) Purchase-money security interest. Except as otherwise provided in sections
 336.9-320 and 336.9-321, if a person files a financing statement with respect to a
 purchase-money security interest before or within 20 days after the debtor receives delivery
 of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien
 creditor which arise between the time the security interest attaches and the time of filing.
     (f) Buyers of chattel paper. A buyer, other than a secured party, of chattel paper takes
 free of a security interest if, without knowledge of the security interest and before it is
 perfected, the buyer gives value and:
     (1) receives delivery of each authoritative tangible copy of the record evidencing the
 chattel paper; and
     (2) if each authoritative electronic copy of the record evidencing the chattel paper can
 be subjected to control under section 336.9-105, obtains control of each authoritative
 electronic copy.
  Article 1 Sec. 188.  179
  03/03/26   REVISOR  JSK/BM  26-06400
      (g) Buyers of electronic documents. A buyer of an electronic document takes free of
  a security interest if, without knowledge of the security interest and before it is perfected,
  the buyer gives value and, if each authoritative electronic copy of the document can be
  subjected to control under section 336.7-106, obtains control of each authoritative electronic
  copy.
      (h) Buyers of controllable electronic records. A buyer of a controllable electronic
  record takes free of a security interest if, without knowledge of the security interest and
  before it is perfected, the buyer gives value and obtains control of the controllable electronic
  record.
     (i) Buyers of controllable accounts and controllable payment intangibles. A buyer,
 other than a secured party, of a controllable account or a controllable payment intangible
 takes free of a security interest if, without knowledge of the security interest and before it
 is perfected, the buyer gives value and obtains control of the controllable account or
 controllable payment intangible.
   Sec. 189. Minnesota Statutes 2025 Supplement, section 353D.07, subdivision 2, is amended
 to read:
     Subd. 2. Payment of benefits. (a) A participant is entitled to receive a distribution of
 the participant's benefit after termination of service for any reason, disability, or death, or
 on or after attaining age 65 if still employed by a public employer.
     (b) Unless the distribution is required under section 356.635, no distribution shall be
 made unless the participant has submitted an application requesting:
     (1) a distribution;
     (2) a direct rollover;
     (3) a transfer as permitted under subdivision 3, paragraph (b); or
     (4) installments as permitted under subdivision 4.
 If the distribution is an eligible rollover distribution as defined in section 356.633, subdivision
 1, paragraph (d) (e), the executive director shall provide notice to the participant or
 beneficiary, as applicable, of the right to elect a direct rollover.
   Sec. 190. Minnesota Statutes 2024, section 353D.07, subdivision 5, is amended to read:
     Subd. 5. Death of a participant. If a participant dies while employed or before the
 participant's account is distributed in its entirety, the account must be paid in a lump sum
  Article 1 Sec. 190.  180
  03/03/26   REVISOR  JSK/BM  26-06400
  to the designated beneficiary or, if none, the heirs at law of the decedent. If the distribution
  is an eligible rollover distribution as defined in section 356.633, subdivision 1, paragraph
  (d) (e), the executive director shall provide an election form and notice of the right to elect
  a direct rollover.
    Sec. 191. Minnesota Statutes 2024, section 353G.18, subdivision 2, is amended to read:
      Subd. 2. Definitions. (a) For purposes of this section, the terms defined in this subdivision
  have the meanings given them unless the context clearly indicates otherwise.
      (b) "Departing entity" means the entity seeking to terminate its participation in the plan
  and the coverage of its departing firefighters by the plan.
     (c) "Departing firefighter" means each former firefighter of the departing entity who:
     (1) is credited with one or more years of service under the plan or under the relief
 association previously affiliated with the departing entity;
     (2) has not yet received a distribution of the firefighter's pension benefit; and
     (3) is entitled to a distribution of a pension benefit under this section.
     (d) "Direct rollover" means a payment described under section 356.633, subdivisions 1
 and 2. Consistent with the definition of "distributee" under section 356.633, subdivision 1,
 paragraph (b) (c), a departing firefighter is a distributee for the purpose of a direct rollover
 election.
     (e) "Distribution date" means the date as of which all assets in the entity's account are
 to be distributed in the form of a payment to each departing firefighter or the survivor of
 each deceased departing firefighter or as a direct rollover, if elected under section 356.633,
 subdivisions 1 and 2.
     (f) "Entity" means a municipality, a firefighting corporation, or a joint powers entity
 that operates or had operated a fire department with firefighters who are covered by the
 plan.
     (g) "Entity's account" means the pension plan that is a component of the plan and under
 which the departing firefighters have accrued lump sum pension benefits and with which
 the departing entity is affiliated.
     (h) "Executive director" means the executive director of the Public Employees Retirement
 Association.
  Article 1 Sec. 191.  181
  03/03/26   REVISOR  JSK/BM  26-06400
      (i) "Termination date" means the effective date of the termination of the pension plan
  that is the entity's account. The termination date shall precede the distribution date.
      (j) "Year of service" means a year of service credit certified by the departing entity's fire
  chief under section 353G.07. For purposes of determining the amount of a departing
  firefighter's pension benefit under this section, year of service includes any service credit
  earned by the departing firefighter under the relief association previously affiliated with the
  departing entity, which must be certified under section 424A.003 beginning January 1,
  2019. Service credit ends when the departing firefighter's active service ends, notwithstanding
  a later termination date as defined in paragraph (i).
   Sec. 192. Minnesota Statutes 2024, section 353G.19, subdivision 6, is amended to read:
     Subd. 6. Distribution to former volunteer firefighters in pay status. (a) If any former
 volunteer firefighter or beneficiary is receiving an annuity, the executive director must
 determine the present value of the remaining payments to the former volunteer firefighter
 or beneficiary and offer the former volunteer firefighter or beneficiary:
     (1) continued payments in the same monthly amount; or
     (2) an immediate lump-sum distribution of the present value amount.
     (b) The offer of an immediate lump-sum distribution must include an offer to the former
 volunteer firefighter or beneficiary to elect a direct rollover of the amount to an eligible
 retirement plan as permitted under section 356.633, subdivisions 1 and 2, if the distribution
 is an eligible rollover distribution as defined in section 356.633 subdivision 1, paragraph
 (d) (e).
   Sec. 193. Minnesota Statutes 2024, section 356.47, subdivision 3, is amended to read:
     Subd. 3. Payment. (a) Beginning one year after the reemployment withholding period
 ends relating to the reemployment that gave rise to the limitation, and the filing of a written
 application, the retired member is entitled to the payment, in a lump sum, of the value of
 the person's amount under subdivision 2, plus annual compound interest. For the general
 state employees retirement plan, the correctional state employees retirement plan, the general
 employees retirement plan of the Public Employees Retirement Association, the public
 employees police and fire retirement plan, the local government correctional employees
 retirement plan, and the teachers retirement plan, the annual interest rate is six percent from
 the date on which the amount was deducted from the retirement annuity to the date of
 payment or until January 1, 2011, whichever is earlier, and no interest after January 1, 2011.
  Article 1 Sec. 193.  182
  03/03/26   REVISOR  JSK/BM  26-06400
  For the St. Paul Teachers Retirement Fund Association, the annual interest is the rate of six
  percent from the date that the amount was deducted from the retirement annuity to the date
  of payment or June 30, 2011, whichever is earlier, and with no interest accrual after June
  30, 2011.
      (b) The written application must be on a form prescribed by the chief administrative
  officer of the applicable retirement plan.
      (c) If the retired member dies before the payment provided for in paragraph (a) is made,
  the amount is payable, upon written application, to the deceased person's surviving spouse,
  or if none, to the deceased person's designated beneficiary, or if none, to the deceased
 person's estate.
     (d) If the amount under subdivision 2 is an eligible rollover distribution as defined in
 section 356.633, subdivision 1, paragraph (d) (e), the applicable retirement plan shall provide
 notice and an election:
     (1) to the member regarding the member's right to elect a direct rollover under section
 356.633, subdivisions 1 and 2, in lieu of a direct payment; or
     (2) if paragraph (c) applies and the amount is to be paid to a person who is a distributee
 as defined in section 356.633, subdivision 1, paragraph (b) (c), to the distributee regarding
 the distributee's right to elect a direct rollover under section 356.633, subdivisions 1 and 2,
 in lieu of a direct payment.
   Sec. 194. Minnesota Statutes 2025 Supplement, section 357.021, subdivision 1a, is amended
 to read:
     Subd. 1a. Transmittal of fees to commissioner of management and budget. (a) Every
 person, including the state of Minnesota and all bodies politic and corporate, who shall
 transact any business in the district court, shall pay to the court administrator of said court
 the sundry fees prescribed in subdivision 2. Except as provided in paragraph (d), the court
 administrator shall transmit the fees monthly to the commissioner of management and budget
 for deposit in the state treasury and credit to the general fund. $30 of each fee collected in
 a dissolution action under subdivision 2, clause (1), must be deposited by the commissioner
 of management and budget in the special revenue fund and is appropriated to the
 commissioner of employment and economic development for the Minnesota Family
 Resiliency Partnership under section 116L.96.
     (b) In a county which has a screener-collector position, fees paid by a county pursuant
 to this subdivision shall be transmitted monthly to the county treasurer, who shall apply the
  Article 1 Sec. 194.  183
  03/03/26   REVISOR  JSK/BM  26-06400
  fees first to reimburse the county for the amount of the salary paid for the screener-collector
  position. The balance of the fees collected shall then be forwarded to the commissioner of
  management and budget for deposit in the state treasury and credited to the general fund.
  In a county in a judicial district under section 480.181, subdivision 1, paragraph (b), which
  has a screener-collector position, the fees paid by a county shall be transmitted monthly to
  the commissioner of management and budget for deposit in the state treasury and credited
  to the general fund. A screener-collector position for purposes of this paragraph is an
  employee whose function is to increase the collection of fines and to review the incomes
  of potential clients of the public defender, in order to verify eligibility for that service.
     (c) No fee is required under this section from the public authority or the party the public
 authority represents in an action for:
     (1) child support enforcement or modification, medical assistance enforcement, or
 establishment of parentage in the district court, or in a proceeding under section 484.702;
     (2) civil commitment under chapter 253B;
     (3) the appointment of a public conservator or public guardian or any other action under
 chapters 252A and 525;
     (4) wrongfully obtaining public assistance under section 256.98 or 256D.07, or recovery
 of overpayments of public assistance;
     (5) court relief under chapters 260, 260A, 260B, and 260C;
     (6) forfeiture of property under sections 169A.63 and 609.531 to 609.5317 609.5316;
     (7) recovery of amounts issued by political subdivisions or public institutions under
 sections 246.52, 252.27, 256.045, 256.25, 256B.042, 256B.14, 256B.15, 256B.37, 260B.331,
 260C.331, and 518A.82, or other sections referring to other forms of public assistance;
     (8) restitution under section 611A.04; or
     (9) actions seeking monetary relief in favor of the state pursuant to section 16D.14,
 subdivision 5.
     (d) $20 from each fee collected for child support modifications under subdivision 2,
 clause (13), must be transmitted to the county treasurer for deposit in the county general
 fund and $35 from each fee shall be credited to the state general fund. The fees must be
 used by the county to pay for child support enforcement efforts by county attorneys.
  Article 1 Sec. 194.  184
  03/03/26   REVISOR  JSK/BM  26-06400
      (e) No fee is required under this section from the Office of Ombudsperson for American
  Indian Families or any federally recognized Indian Tribe or its representative in an action
  for:
      (1) child support enforcement or modification, medical assistance enforcement, or
  establishment of parentage in the district court or in a proceeding under section 484.702;
      (2) civil commitment under chapter 253B;
      (3) the appointment of a public conservator or public guardian or any other action under
  chapters 252A and 525; or
      (4) court relief under chapters 256, 257, 260, 260A, 260B, 260C, 260D, and 518, and
 sections 524.5-201 to 524.5-317.
   Sec. 195. Minnesota Statutes 2024, section 363A.07, subdivision 4, is amended to read:
     Subd. 4. Withdrawal from local commission. Notwithstanding the provisions of any
 law or ordinance to the contrary, a person who has filed a charge with a local commission
 may bring a civil action as provided in section 363A.34 363A.33 at the following times:
     (1) within 90 days after receipt of notice that the local commission has determined that
 there is no probable cause to credit the allegations contained in the charge; receipt of notice
 is presumed to be five days from the date of service by mail of the written notice; or
     (2) after 45 days from the filing of the charge if a hearing has not been held or if the
 local commission has not entered into a conciliation agreement to which the charging party
 is a signator. The charging party shall notify the local commission of an intention to bring
 a civil action, which shall be commenced within 90 days of giving the notice.
     A charging party bringing a civil action shall mail by registered or certified mail a copy
 of the summons and complaint to the local commission and upon their receipt the local
 commission shall terminate all proceedings before the local commission relating to the
 charge. No charge shall be filed or reinstituted with the local commission after a civil action
 relating to the same unfair discriminatory practice has been brought unless the civil action
 has been dismissed without prejudice.
   Sec. 196. Minnesota Statutes 2024, section 363A.08, subdivision 4, is amended to read:
     Subd. 4. Employer, employment agency, or labor organization. (a) Except when
 based on a bona fide occupational qualification, it is an unfair employment practice for an
  Article 1 Sec. 196.  185
  03/03/26   REVISOR  JSK/BM  26-06400
  employer, employment agency, or labor organization, before a person is employed by an
  employer or admitted to membership in a labor organization, to:
      (1) require or request the person to furnish information that pertains to race, color, creed,
  religion, national origin, sex, gender identity, marital status, status with regard to public
  assistance, familial status, disability, sexual orientation, or age; or, subject to section 363A.20,
  to require or request a person to undergo physical examination; unless for the sole and
  exclusive purpose of national security, information pertaining to national origin is required
  by the United States, this state or a political subdivision or agency of the United States or
  this state, or for the sole and exclusive purpose of compliance with the Public Contracts
 Act or any rule, regulation, or laws of the United States or of this state requiring the
 information or examination. A law enforcement agency may, after notifying an applicant
 for a peace officer or part-time peace officer position that the law enforcement agency is
 commencing the background investigation on the applicant, request the applicant's date of
 birth, gender, and race on a separate form for the sole and exclusive purpose of conducting
 a criminal history check, a driver's license check, and fingerprint criminal history inquiry.
 The form shall include a statement indicating why the data is being collected and what its
 limited use will be. No document which has date of birth, gender, or race information will
 be included in the information given to or available to any person who is involved in selecting
 the person or persons employed other than the background investigator. No person may act
 both as background investigator and be involved in the selection of an employee except that
 the background investigator's report about background may be used in that selection as long
 as no direct or indirect references are made to the applicant's race, age, or gender; or
     (2) seek and obtain for purposes of making a job decision, information from any source
 that pertains to the person's race, color, creed, religion, national origin, sex, gender identity,
 marital status, status with regard to public assistance, familial status, disability, sexual
 orientation, or age, unless for the sole and exclusive purpose of compliance with the Public
 Contracts Act or any rule, regulation, or laws of the United States or of this state requiring
 the information; or
     (3) cause to be printed or published a notice or advertisement that relates to employment
 or membership and discloses a preference, limitation, specification, or discrimination based
 on race, color, creed, religion, national origin, sex, gender identity, marital status, status
 with regard to public assistance, familial status, disability, sexual orientation, or age.
     (b) Any individual who is required to provide information that is prohibited by this
 subdivision is an aggrieved party under sections 363A.06, subdivision 4, and section 363A.28,
 subdivisions 1 to 9.
  Article 1 Sec. 196.  186
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 197. Minnesota Statutes 2025 Supplement, section 423A.022, subdivision 2, is
  amended to read:
      Subd. 2. Allocation. (a) Of the total amount appropriated as supplemental state aid:
      (1) 58.064 percent must be paid to the executive director of the Public Employees
  Retirement Association for deposit in the public employees police and fire retirement fund
  established by section 353.65, subdivision 1;
      (2) 35.484 percent must be allocated and paid as required by paragraphs (b) and (c),
  respectively, to or on behalf of municipalities who qualify for supplemental state aid under
  paragraph (d); and
     (3) 6.452 percent must be paid to the executive director of the Minnesota State Retirement
 System for deposit in the state patrol retirement fund.
     (b) Supplemental state aid under paragraph (a), clause (2), must be allocated to each
 municipality that qualifies for supplemental state aid under paragraph (d) in the same
 proportion that the most recent amount of fire state aid paid under section 477B.04 for the
 municipality bears to the most recent total fire state aid paid under section 477B.04 for all
 municipalities other than municipalities solely employing firefighters with retirement
 coverage by one or more pension plans under chapter 353.
     (c) Supplemental state aid under paragraph (a), clause (2), must be paid:
     (1) to the executive director of the Public Employees Retirement Association for each
 municipality with a fire department that participates in the statewide volunteer firefighter
 plan for deposit in the fund established by section 352G.02 353G.02, subdivision 3, and
 credited to the fire department's account; and
     (2) with the balance to the treasurer of each municipality for transmittal within 30 days
 of receipt to the treasurer of the applicable firefighters relief association for deposit in its
 special fund.
     (d) A municipality qualifies for supplemental state aid under paragraph (a), clause (2),
 if the municipality:
     (1) does not solely employ firefighters with retirement coverage provided by one or
 more pension plans established under chapter 353; and
     (2) qualified to receive fire state aid in that calendar year.
  Article 1 Sec. 197.  187
  03/03/26   REVISOR  JSK/BM  26-06400
      (e) For purposes of this section, the term "municipalities" includes independent nonprofit
  firefighting corporations that participate in the statewide volunteer firefighter plan under
  chapter 353G or with subsidiary firefighter relief associations operating under chapter 424A.
    Sec. 198. Minnesota Statutes 2025 Supplement, section 424A.015, subdivision 4, is
  amended to read:
      Subd. 4. Right to elect a direct rollover. A relief association must permit a member, a
  surviving spouse, or another distributee as defined in section 356.633, subdivision 1,
  paragraph (b) (c), to elect a direct rollover of any distribution that is an eligible rollover
  distribution as defined in section 356.633, subdivision 1, paragraph (d) (e), subject to the
 terms and conditions of section 356.633.
   Sec. 199. Minnesota Statutes 2024, section 424A.05, subdivision 5, is amended to read:
     Subd. 5. Qualified domestic relations orders. (a) A "qualified domestic relations order"
 means a domestic relations order that creates or recognizes the existence of an alternate
 payee's right to or assigns to an alternate payee the right to receive a service pension that is
 all or any portion of the service pension payable with respect to a member or former member
 of a relief association.
     (b) An "alternate payee" means the former spouse of a member or former member of a
 relief association, including a former spouse who is a distributee as defined in section
 356.633, subdivision 1, paragraph (b) (c).
     (c) A relief association must comply with a qualified domestic relations order purporting
 to assign all or a portion of a service pension accrued under the retirement plan of the relief
 association, to the extent vested, if the payment or payments required by the order are within
 the limits described in section 518.58, subdivision 4, paragraph (a), clauses (1) to (4). For
 the purpose of applying section 518.58, subdivision 4, paragraph (a), "plan" or "pension
 plan" as used in paragraph (a) means the articles or bylaws of the relief association and
 chapter 424A, as applicable to the relief association.
     (d) Notwithstanding any state law to the contrary, the bylaws of a relief association may
 permit distribution to an alternate payee under a qualified domestic relations order:
     (1) as early as administratively practicable after the order is received by the relief
 association, even if the member whose service pension is being assigned to the alternate
 payee under the order has not yet reached age 50 or separated from active service with the
 fire department affiliated with the relief association; and
  Article 1 Sec. 199.  188
  03/03/26   REVISOR  JSK/BM  26-06400
(2) in a lump sum, even if the relief association is a defined benefit relief association
  that pays monthly service pensions under section 424A.093.
(e) If the service pension is an eligible rollover distribution as defined in section 356.633,
  subdivision 1, paragraph (d) (e), the relief association must permit the alternate payee to
  elect a direct rollover, as provided under section 356.633, subdivisions 1 and 2.
    Sec. 200. Minnesota Statutes 2024, section 424B.13, subdivision 5, is amended to read:
Subd. 5. Determination of value of pension benefits and distribution to retirees in
  pay status. (a) The board of trustees shall determine the present value of each participant's
  accrued benefit, taking into account the full vesting requirement under subdivision 2 and
 any increase in the lump-sum benefit or monthly pension amount approved under subdivision
 4:
(1) using the method set forth in section 424A.092, subdivision 2, for determining a
 plan's funded status by calculating the value of each participant's accrued benefit; or
(2) as determined by an actuary retained by the relief association, who meets the definition
 of approved actuary under section 356.215, subdivision 1, paragraph (c).
(b) If the retirement plan pays a monthly pension, the board of trustees must determine
 the present value of the remaining payments to any retiree in pay status or beneficiary who
 is receiving an annuity. Present value must be determined by an actuary who meets the
 definition of approved actuary under section 356.215, subdivision 1, paragraph (c), retained
 by the relief association. At the discretion of the relief association, the relief association
 must provide the retiree in pay status or beneficiary receiving the annuity either:
(1) an immediate lump-sum distribution of an amount equal to the present value of the
 remaining payments as determined by the actuary and permit the retiree in pay status or
 beneficiary to elect a lump-sum payment or a direct rollover of the amount to an eligible
 retirement plan as permitted under section 356.633, subdivisions 1 and 2, if the distribution
 is an eligible rollover distribution as defined in section 356.633, subdivision 1, paragraph
 (d) (e); or
(2) continued payments in the same monthly amount under an annuity to be purchased
 by the board of trustees from a reputable insurance company licensed to do business in the
 state.
  Article 1 Sec. 200.  189
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 201. Minnesota Statutes 2024, section 424B.13, subdivision 6, is amended to read:
      Subd. 6. Allocation of surplus. (a) If, as of the conversion effective date, the defined
  benefit plan has a surplus, the board of trustees shall allocate the surplus as follows:
      (1) per capita method: each participant's account will receive the same dollar amount;
      (2) service-based method: each participant's account will receive a share of the surplus
  based on the ratio of the participant's years of service to the total years of service for all
  participants; or
      (3) participant and municipality sharing method under paragraph (b).
      (b) The board of trustees may allocate the surplus using the participant and municipality
 sharing method in accordance with this paragraph.
     (1) For this purpose, "municipality" means "municipality" or "firefighting corporation,"
 as applicable.
     (2) If the fire department is operated by more than one municipality under a joint powers
 agreement:
     (i) any consent by the municipality under this paragraph requires consent by each
 municipality that is party to the joint powers agreement;
     (ii) any payment of surplus to the municipality under this paragraph requires a payment
 of a pro rata share of surplus to each municipality that is party to the joint powers agreement;
 and
     (iii) any restrictions on the use of surplus applies to each municipality that is party to
 the joint powers agreement.
     (3) Under the participant and municipality sharing method:
     (i) first, the municipality will receive a share of the surplus based on the ratio of the
 municipal contributions made to the defined benefit relief association over a specified period
 of years to the total of fire state aid paid and municipal contributions made to the defined
 benefit relief association over the same period; and
     (ii) second, any remaining surplus will be allocated to accounts of participants using the
 per capita or service-based method.
     (4) The board of trustees may impose conditions on the use of the surplus by the
 municipality, as follows:
  Article 1 Sec. 201.  190
  03/03/26   REVISOR  JSK/BM  26-06400
      (i) all or a specified portion of the surplus must be contributed back to the defined
  contribution relief association over a specified number of future years for allocation to the
  accounts of participants eligible for an allocation;
      (ii) all or a specified portion of the surplus must be used by the municipality for the
  purposes described in section 424A.08, paragraph (a) or (b) (c); or
      (iii) all or a specified portion of the surplus must be used by the municipality to provide
  health insurance or other welfare benefits for the participants.
      (c) The board of trustees shall specify whether the surplus will be allocated only to
  participants who are members active as of the conversion effective date or whether the
 surplus will be allocated to all participants, including members who are not active as of the
 conversion effective date.
   Sec. 202. Minnesota Statutes 2024, section 424B.22, subdivision 7, is amended to read:
     Subd. 7. Allocation of surplus. (a) If the retirement plan is a defined benefit plan and
 if, after completing the determination of assets, liabilities, and administrative expenses under
 subdivision 5, there is a surplus, the board of trustees shall transfer to the affiliated
 municipality the lesser of (1) the amount of the surplus, or (2) the sum of all required
 contributions, without investment earnings or interest thereon, made by the municipality to
 the relief association during the year in which the termination of the retirement plan occurs
 or during the preceding nine years.
     (b) If the affiliated municipality did not make any required contributions to the relief
 association during the current or preceding nine years or if, after the transfer described in
 paragraph (a), there is surplus remaining, the relief association and the municipality will
 mutually agree on an allocation between them of the remaining surplus.
     (c) If, within 180 days of the date of termination of the retirement plan, the municipality
 and relief association have not reached an agreement on the allocation of the surplus under
 paragraph (b), then 50 percent of the surplus shall be retained by the relief association and
 50 percent of the surplus shall be transferred to the affiliated municipality.
     (d) Any surplus retained by the relief association under paragraph (c) shall be allocated
 among all participants eligible to share in the surplus in the same proportion that the present
 value of the accrued benefit for each eligible participant bears to the total present value of
 the accrued benefits of all participants eligible to share in the surplus, and each eligible
 participant's benefit, as determined under subdivision 5, paragraph (a), clause (2), shall be
 increased by the participant's share of the surplus. The board of trustees shall determine
  Article 1 Sec. 202.  191
  03/03/26   REVISOR  JSK/BM  26-06400
  eligibility to share in the surplus, which may include all participants and any former
  participants who, within the last three years or such other number of years as determined
  by the board of trustees, separated from active service and received their retirement benefit.
  If the board of trustees decides to include former participants in the allocation of the surplus,
  the board of trustees shall modify the method for allocating the surplus to take into account
  the former participants.
      (e) Any amount of surplus transferred to the affiliated municipality under this subdivision
  may only be used for the purposes described in section 424A.08, paragraph (a) or (b) (c).
    Sec. 203. Minnesota Statutes 2024, section 424B.22, subdivision 8, is amended to read:
     Subd. 8. Immediate distribution of retirement benefits and payment of all other
 obligations. (a) The board of trustees shall liquidate the assets of the special fund and pay
 retirement benefits and administrative expenses under the retirement plan within 210 days
 after the effective date of the termination of the retirement plan.
     (b) If the retirement plan is a defined benefit plan that pays lump-sum benefits or a
 defined contribution plan, without regard to whether the participant has attained age 50,
 each participant and other benefit recipient shall be permitted to elect an immediate
 distribution or a direct rollover of the participant's benefit to an eligible retirement plan as
 permitted under section 356.633, subdivisions 1 and 2, if the benefit is an eligible rollover
 distribution as defined in section 356.633, subdivision 1, paragraph (d) (e).
     (c) If the retirement plan is a defined benefit plan that pays monthly pension benefits,
 the board of trustees shall, at the election of the participant or other benefit recipient, purchase
 an annuity contract under section 424A.015, subdivision 3, naming the participant or other
 benefit recipient, as applicable, as the insured or distribute a lump-sum amount that is equal
 to the present value of the monthly pension benefits to which the participant or other benefit
 recipient is entitled. If an annuity is elected by the participant or other benefit recipient, the
 annuity shall provide for commencement at a date elected by the insured, to be paid as an
 annuity for the life of the insured. Legal title to the annuity contract shall be transferred to
 the insured. If a lump sum is elected, the option under paragraph (b) to take an immediate
 distribution or a direct rollover shall apply.
     (d) The board of trustees shall complete the distribution of all assets of the special fund
 by making any remaining distributions or transfers as required under subdivision 9 on behalf
 of participants or other benefit recipients who cannot be located or are unresponsive and
 paying any remaining administrative expenses related to the termination of the plan.
  Article 1 Sec. 203.  192
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 204. Minnesota Statutes 2024, section 458D.08, is amended to read:
      458D.08 BUDGET.
      The board shall prepare and adopt, on or before December 31, 1971, and on or before
  November 1, 1972, and each year thereafter, a budget showing for the following calendar
  year or other fiscal year determined by the board, sometimes referred to in sections 458D.01
  to 458D.24 as the budget year, the estimated revenue from all sources, including but not
  limited to, income earned in the operation of the district disposal system, federal or state
  grants, taxes on property, and funds on hand at the beginning of the year, and estimated
  expenses for:
     (1) credits to each local government unit under section 458D.06, subdivision 4;
     (2) deferred payments under section 458D.09, subdivision 3;
     (3) costs of operation, administration and maintenance of the district disposal system;
     (4) costs of acquisition and betterment of the district disposal system; and
     (5) debt service, including principal and interest, on general obligation bonds and
 certificates issued pursuant to section 458D.14, obligations assumed under section 458D.06,
 subdivision 3, and any money judgments entered by a court of competent jurisdiction.
 Expenses within these general categories, and such others as the board may from time to
 time determine, shall be itemized in such detail as the board shall prescribe. The board and
 its officers, agents and employees shall not incur an expense for any purpose other than
 debt service without having set forth such expense in the budget nor in excess of the amount
 set forth in the budget therefor, and no obligation to incur such an expense shall be
 enforceable except as the obligation of the person or persons incurring it; providing that the
 board may amend the budget at any time by transferring from one purpose to another any
 revenue except for debt service and bond proceeds and by increasing expenses in any amount
 by which revenue during the budget year is estimated to exceed the total amounts designated
 in the original budget. The creation of any obligation pursuant to section 458D.14 or the
 award of any federal or state grant is a sufficient budget designation of the proceeds for the
 purpose for which it is authorized, and of the tax or other revenue pledged to pay the
 obligation and interest on it, whether or not specifically included in any annual budget. The
 budget shall contain, in addition to the provisions above, the estimated revenue from income
 earned in the operation of solid waste disposal sites or facilities and estimated expenses for
 the operation of such solid waste disposal sites or facilities. Revenues from the operation
 of disposal sites or facilities shall not be used to fund in whole or in part the maintenance
 or operation of the district disposal system as that term is defined in section 458D.02.
  Article 1 Sec. 204.  193
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 205. Minnesota Statutes 2024, section 462A.07, subdivision 20, is amended to read:
      Subd. 20. Eligibility for agency programs. The agency may determine that a household
  or project unit meets the rent or income requirements for a program if the household or unit
  receives or participates in income-based state or federal public assistance benefits, including
  but not limited to:
      (1) child care assistance programs under chapter 119B 142E;
      (2) general assistance, Minnesota supplemental aid, or food support under chapter 256D;
      (3) housing support under chapter 256I;
      (4) Minnesota family investment program and diversionary work program under chapter
 256J 142G; and
     (5) economic assistance programs under chapter 256P.
   Sec. 206. Minnesota Statutes 2024, section 469.174, subdivision 10, is amended to read:
     Subd. 10. Redevelopment district. (a) "Redevelopment district" means a type of tax
 increment financing district consisting of a project, or portions of a project, within which
 the authority finds by resolution that one or more of the following conditions, reasonably
 distributed throughout the district, exists:
     (1) parcels consisting of 70 percent of the area of the district are occupied by buildings,
 streets, utilities, paved or gravel parking lots, or other similar structures and more than 50
 percent of the buildings, not including outbuildings, are structurally substandard to a degree
 requiring substantial renovation or clearance;
     (2) the property consists of vacant, unused, underused, inappropriately used, or
 infrequently used rail yards, rail storage facilities, or excessive or vacated railroad
 rights-of-way;
     (3) tank facilities, or property whose immediately previous use was for tank facilities,
 as defined in section 115C.02, subdivision 15, if the tank facilities:
     (i) have or had a capacity of more than 1,000,000 gallons;
     (ii) are located adjacent to rail facilities; and
     (iii) have been removed or are unused, underused, inappropriately used, or infrequently
 used; or
     (4) a qualifying qualified disaster area, as defined in subdivision 10b.
  Article 1 Sec. 206.  194
  03/03/26   REVISOR  JSK/BM  26-06400
      (b) For purposes of this subdivision, "structurally substandard" shall mean containing
  defects in structural elements or a combination of deficiencies in essential utilities and
  facilities, light and ventilation, fire protection including adequate egress, layout and condition
  of interior partitions, or similar factors, which defects or deficiencies are of sufficient total
  significance to justify substantial renovation or clearance.
      (c) A building is not structurally substandard if it is in compliance with the building
  code applicable to new buildings or could be modified to satisfy the building code at a cost
  of less than 15 percent of the cost of constructing a new structure of the same square footage
  and type on the site. The municipality may find that a building is not disqualified as
 structurally substandard under the preceding sentence on the basis of reasonably available
 evidence, such as the size, type, and age of the building, the average cost of plumbing,
 electrical, or structural repairs, or other similar reliable evidence. The municipality may not
 make such a determination without an interior inspection of the property, but need not have
 an independent, expert appraisal prepared of the cost of repair and rehabilitation of the
 building. An interior inspection of the property is not required, if the municipality finds that
 (1) the municipality or authority is unable to gain access to the property after using its best
 efforts to obtain permission from the party that owns or controls the property; and (2) the
 evidence otherwise supports a reasonable conclusion that the building is structurally
 substandard. Items of evidence that support such a conclusion include recent fire or police
 inspections, on-site property tax appraisals or housing inspections, exterior evidence of
 deterioration, or other similar reliable evidence. Written documentation of the findings and
 reasons why an interior inspection was not conducted must be made and retained under
 section 469.175, subdivision 3, paragraph (b), clause (1). Failure of a building to be
 disqualified under the provisions of this paragraph is a necessary, but not a sufficient,
 condition to determining that the building is substandard.
     (d) A parcel is deemed to be occupied by a structurally substandard building for purposes
 of the finding under paragraph (a) or by the improvements described in paragraph (e) if all
 of the following conditions are met:
     (1) the parcel was occupied by a substandard building or met the requirements of
 paragraph (e), as the case may be, within three years of the filing of the request for
 certification of the parcel as part of the district with the county auditor;
     (2) the substandard building or the improvements described in paragraph (e) were
 demolished or removed by the authority or the demolition or removal was financed by the
 authority or was done by a developer under a development agreement with the authority;
  Article 1 Sec. 206.  195
  03/03/26   REVISOR  JSK/BM  26-06400
      (3) the authority found by resolution before the demolition or removal that the parcel
  was occupied by a structurally substandard building or met the requirements of paragraph
  (e) and that after demolition and clearance the authority intended to include the parcel within
  a district; and
      (4) upon filing the request for certification of the tax capacity of the parcel as part of a
  district, the authority notifies the county auditor that the original tax capacity of the parcel
  must be adjusted as provided by section 469.177, subdivision 1, paragraph (f).
      (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities,
  paved or gravel parking lots, or other similar structures unless 15 percent of the area of the
 parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar
 structures.
     (f) For districts consisting of two or more noncontiguous areas, each area must qualify
 as a redevelopment district under paragraph (a) to be included in the district, and the entire
 area of the district must satisfy paragraph (a).
   Sec. 207. Minnesota Statutes 2024, section 473.4057, subdivision 7, is amended to read:
     Subd. 7. Expenditure of funds and exercise of powers. In carrying out its
 responsibilities under this section and notwithstanding any other law to the contrary, the
 council may expend funds and exercise, both inside and outside the metropolitan area, those
 powers in this chapter that are necessary or convenient for those purposes. The jurisdiction
 of the metropolitan transit police under section 473.405 473.407 extends to offenses relating
 to the operation, property, facilities, equipment, employees, and passengers of any commuter
 rail facilities and services that are subject to this section.
   Sec. 208. Minnesota Statutes 2025 Supplement, section 473.4465, subdivision 2, is amended
 to read:
     Subd. 2. Use of funds; Metropolitan Council. (a) Sales tax revenue allocated to the
 council under section 297A.9915, subdivision 4, paragraph (a), clause (1), is available as
 follows:
     (1) five percent for active transportation, as determined by the Transportation Advisory
 Board under subdivision 3; and
     (2) 95 percent for transit system purposes under sections 473.371 to 473.452 473.449,
 including but not limited to operations, maintenance, and capital projects.
  Article 1 Sec. 208.  196
  03/03/26   REVISOR  JSK/BM  26-06400
(b) The council must expend a portion of sales tax revenue under paragraph (a), clause
  (2), in each of the following categories:
(1) improvements to regular route bus service levels;
(2) improvements related to transit safety, including additional transit officials, as defined
  under section 473.4075;
(3) maintenance and improvements to bus accessibility at transit stops and transit centers;
(4) transit shelter replacement and improvements under section 473.41;
(5) planning and project development for expansion of arterial bus rapid transit lines;
(6) operations and capital maintenance of arterial bus rapid transit;
(7) planning and project development for expansion of highway bus rapid transit and
 bus guideway lines;
(8) operations and capital maintenance of highway bus rapid transit and bus guideways;
(9) zero-emission bus procurement and associated costs in conformance with the
 zero-emission and electric transit vehicle transition plan under section 473.3927;
(10) demand response microtransit service provided by the council;
(11) financial assistance to replacement service providers under section 473.388, to
 provide for service, vehicle purchases, and capital investments related to demand response
 microtransit service;
(12) financial assistance to political subdivisions and tax-exempt organizations under
 section 501(c)(3) of the Internal Revenue Code for active transportation; and
(13) wage adjustments for Metro Transit hourly operations employees.
   Sec. 209. Minnesota Statutes 2024, section 491A.03, subdivision 4, is amended to read:
Subd. 4. Quarters; supplies. The county in which the court is established shall provide
 suitable quarters for the court. Except as otherwise provided by law, all expenses for
 necessary blanks, stationery, books, furniture, furnishings, and other supplies for the use of
 the court and the officers of the court shall be included in the budget for the court
 administrator's office provided by the county board pursuant to section 485.018, subdivision
 6.
  Article 1 Sec. 209.  197
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 210. Minnesota Statutes 2024, section 504B.361, subdivision 1, is amended to read:
      Subdivision 1. Summons and writ. The state court administrator shall develop a uniform
  form for the summons and writ of recovery of premises and order to vacate. The summons
  shall conform to the requirements enumerated under section 504B.321, subdivision 3 4.
  The writ for recovery of premises and order to vacate must include:
      (1) the following statement: "You have the right to seek legal help. If you can't afford
  a lawyer, free legal help may be available. Contact Legal Aid or visit www.LawHelpMN.org
  to know your rights and find your local Legal Aid office."; and
      (2) the following statement: "To apply for financial help, contact your local county or
 Tribal social services office, apply online at MNBenefits.mn.gov, or call the United Way
 toll-free information line by dialing 2-1-1 or 800-543-7709."
   Sec. 211. Minnesota Statutes 2024, section 518.10, subdivision 1, is amended to read:
     Subdivision 1. Petition. The petition for dissolution of marriage or legal separation shall
 state and allege:
     (a) the name and address of the petitioner and any prior or other name used by the
 petitioner;
     (b) the name and, if known, the address of the respondent and any prior or other name
 used by the respondent and known to the petitioner;
     (c) the place and date of the marriage of the parties;
     (d) in the case of a petition for dissolution, that either the petitioner or the respondent
 or both:
     (1) has resided in this state for not less than 180 days immediately preceding the
 commencement of the proceeding, or
     (2) has been a member of the armed services and has been stationed in this state for not
 less than 180 days immediately preceding the commencement of the proceeding, or
     (3) has been a domiciliary of this state for not less than 180 days immediately preceding
 the commencement of the proceeding;
     (e) the name at the time of the petition and any prior or other name, Social Security
 number, age, and date of birth of each living minor or dependent child of the parties born
 before the marriage or born or adopted during the marriage and a reference to, and the
 expected date of birth of, a child of the parties conceived during the marriage but not born;
  Article 1 Sec. 211.  198
  03/03/26   REVISOR  JSK/BM  26-06400
(f) whether or not a separate proceeding for dissolution, legal separation, or custody is
  pending in a court in this state or elsewhere;
(g) in the case of a petition for dissolution, that there has been an irretrievable breakdown
  of the marriage relationship;
(h) in the case of a petition for legal separation, that there is a need for a decree of legal
  separation;
(i) any temporary transitional or permanent indefinite maintenance, child support, child
  custody, disposition of property, attorneys' fees, costs and disbursements applied for without
  setting forth the amounts; and
(j) whether an order for protection under chapter 518B or a similar law of another state
 that governs the parties or a party and a minor child of the parties is in effect and, if so, the
 district court or similar jurisdiction in which it was entered.
The petition shall be verified by the petitioner or petitioners, and its allegations established
 by competent evidence.
   Sec. 212. Minnesota Statutes 2024, section 518.175, subdivision 6, is amended to read:
Subd. 6. Remedies. (a) Each party must follow a court's order for custody and parenting
 time unless the parties have made another agreement in writing as defined by section 645.44,
 subdivision 14.
(b) For the purposes of this subdivision, "court-ordered parenting time" means:
(1) parenting time that a court has ordered, regardless of whether the order is temporary
 or permanent and whether family court or juvenile court has issued the order;
(2) an order by a parenting time consultant, parenting coordinator, special master, or
 other court-appointed individual who is authorized to establish or modify parenting time;
 or
(3) a binding agreement or decision under section 518.1751, subdivision 3.
(c) The court shall fully consider providing compensatory parenting time when a parent
 has intentionally made a substantial amount of court-ordered parenting time unavailable to
 the other parent unless providing the compensatory parenting time is not consistent with
 the child's best interests. The court must consider all relevant evidence to determine whether
 a parent has made a substantial amount of court-ordered parenting time unavailable to the
 other parent.
  Article 1 Sec. 212.  199
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      (d) If the court finds that a person has been deprived of court-ordered parenting time
  under paragraph (b), the court shall order the parent who has interfered to allow compensatory
  parenting time to the other parent. When compensatory parenting time is awarded, additional
  parenting time must be:
      (1) at least of the same type and duration as the deprived parenting time and, at the
  discretion of the court, may be in excess of or of a different type than the deprived parenting
  time;
      (2) taken within one year after the deprived parenting time; and
      (3) at a time acceptable to the parent deprived of parenting time.
     (e) If the court finds that a party has repeatedly and intentionally denied or interfered
 with court-ordered parenting time, the court must, in addition to awarding compensatory
 parenting time, require the party to reimburse the other party for costs incurred as a result
 of the party's denial of or interference with court-ordered parenting time and award reasonable
 attorney fees to the other party, provided that the court finds that the party from whom fees,
 costs, and disbursements are sought has the means to pay them. The court may:
     (1) impose a sanction of up to $500 against the party who denied or interfered with
 parenting time that is payable to the other party;
     (2) modify legal and physical custody of the child by awarding custody of the child to
 the party whose parenting time was denied or interfered with, in accordance with the
 procedures under section 518.18; or
     (3) award any other remedy that the court finds to be in the best interests of the children
 involved.
     (f) The court shall provide one or more of the remedies available in paragraph (e), clauses
 (1) and (2), if the court finds that a party has repeatedly and intentionally denied or interfered
 with court-ordered parenting time after a previous finding that the party repeatedly and
 intentionally denied or interfered with court-ordered parenting time.
     (g) If the court makes written findings that any denial of or interference with court-ordered
 parenting time was necessary to protect a child's physical or emotional health, the court is
 not required to comply with paragraphs (d) to (f).
     (h) If the court finds that a party has been denied parenting time and has incurred expenses
 in connection with the denied parenting time, the court may require the party who denied
 parenting time to post a bond in favor of the other party in the amount of prepaid expenses
 associated with upcoming planned parenting time.
  Article 1 Sec. 212.  200
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      (i) Proof of an unwarranted denial of or interference with duly established parenting
  time may constitute contempt of court and may be sufficient cause for reversal of custody.
      (j) All parenting time orders must include notice of the provisions of this subdivision.
      (k) The required notice under paragraph (j) must be substantially as follows:
      "NOTICE REGARDING COMPLIANCE WITH PARENTING TIME ORDER:
      The parties are expected to fully comply with the court's order unless the parties mutually
  agree otherwise in writing as defined by Minnesota Statutes, section 645.44, subdivision
  14. Pursuant to Minnesota Statutes, section 518.175, subdivision 6, and Minnesota Statutes,
  section 518.131, subdivision 11, the parties are hereby notified that:
     (1) The court shall award compensatory parenting time to a parent who has been prevented
 from exercising parenting time.
     (2) Deprivation of parental rights is a FELONY crime pursuant to Minnesota Statutes,
 section 609.375 609.26.
     (3) If the court finds that one parent has repeatedly and intentionally denied or interfered
 with another parent's parenting time, then the court shall award attorney fees to the parent
 who has been denied parenting time and require the parent who has been denying or
 interfering with parenting time to pay the other parent for costs incurred as a result of
 enforcing the decision.
     (4) If the court finds that one parent has repeatedly and intentionally denied or interfered
 with parenting time, then the court may also:
     (i) transfer custody of the child to the other parent;
     (ii) impose a sanction of up to $500 on the parent who repeatedly and intentionally
 denied or interfered with parenting time; or
     (iii) award other relief as determined to be in the best interests of the children involved."
     (l) An order issued under this section requiring reimbursement of costs or fees does not
 require a party to have direct contact with another party.
   Sec. 213. Minnesota Statutes 2024, section 518A.40, subdivision 1, is amended to read:
     Subdivision 1. Child care costs. Unless otherwise agreed to by the parties and approved
 by the court, the court must order that work-related or education-related child care costs of
 joint children be divided between the obligor and obligee based on their proportionate share
 of the parties' combined monthly PICS. The amount of work-related or education-related
  Article 1 Sec. 213.  201
  03/03/26   REVISOR  JSK/BM  26-06400
  child care costs required by this subdivision to be divided between the obligor and obligee
  is the total amount received by the child care provider from the obligee and any public
  agency for the joint child or children. Child care costs shall be adjusted by the amount of
  the estimated federal and state child care credit payable on behalf of a joint child. The
  Department of Human Services Children, Youth, and Families shall develop tables to
  calculate the applicable credit based upon the custodial parent's PICS.
    Sec. 214. Minnesota Statutes 2024, section 518A.41, subdivision 1, is amended to read:
      Subdivision 1. Definitions. The definitions in this subdivision apply to this chapter and
  chapter 518.
     (a) "Health care coverage" means private health care coverage, including fee for service,
 health maintenance organization, preferred provider organization, and other types of private
 health care coverage. Health care coverage also means public health care coverage under
 which medical or dental services could be provided to a dependent child.
     (b) "Private health care coverage" means a health plan that provides medical, dental, or
 other health care benefits and is:
     (1) provided on an individual or group basis;
     (2) provided by an employer or union;
     (3) purchased in the private market;
     (4) provided through MinnesotaCare under chapter 256L; or
     (5) available to a person eligible to carry insurance for the joint child, including a party's
 spouse or parent.
 Private health care coverage includes, but is not limited to, a health plan meeting the
 definition under section 62A.011, subdivision 3, except that the exclusion of coverage
 designed solely to provide dental or vision care under section 62A.011, subdivision 3, clause
 (6), does not apply to the definition of private health care coverage under this section; a
 group health plan governed under the federal Employee Retirement Income Security Act
 of 1974 (ERISA); a self-insured plan under sections 43A.23 to 43A.317 43A.316 and
 471.617; and a policy, contract, or certificate issued by a community-integrated service
 network licensed under chapter 62N.
     (c) "Public health care coverage" means health care benefits provided by any form of
 medical assistance under chapter 256B. Public health care coverage does not include
  Article 1 Sec. 214.  202
  03/03/26   REVISOR  JSK/BM  26-06400
  MinnesotaCare or health plans subsidized by federal premium tax credits or federal
  cost-sharing reductions.
      (d) "Medical support" means providing health care coverage for a joint child by
  contributing to the cost of health care coverage, unreimbursed health-related expenses, and
  uninsured health-related expenses of the joint child.
      (e) "National medical support notice" means an administrative notice issued by the public
  authority to enforce health insurance provisions of a support order in accordance with Code
  of Federal Regulations, title 45, section 303.32, in cases where the public authority provides
  support enforcement services.
     (f) "Uninsured health-related expenses" means a joint child's reasonable and necessary
 medical and dental expenses if the joint child is not covered by private health insurance
 care when the expenses are incurred.
     (g) "Unreimbursed health-related expenses" means a joint child's reasonable and necessary
 medical and dental expenses if a joint child is covered by health care coverage and health
 care coverage does not pay for the total cost of the expenses when the expenses are incurred.
 Unreimbursed health-related expenses do not include the cost of premiums. Unreimbursed
 health-related expenses include, but are not limited to, deductibles, co-payments, and
 expenses for orthodontia, and prescription eyeglasses and contact lenses, but not
 over-the-counter medications if provided through health care coverage.
   Sec. 215. Minnesota Statutes 2024, section 518A.51, is amended to read:
     518A.51 FEES FOR IV-D SERVICES.
     (a) When a recipient of IV-D services is no longer receiving assistance under the state's
 title IV-A, IV-E foster care, or medical assistance programs, the public authority responsible
 for child support enforcement must notify the recipient, within five working days of the
 notification of ineligibility, that IV-D services will be continued unless the public authority
 is notified to the contrary by the recipient. The notice must include the implications of
 continuing to receive IV-D services, including the available services and fees, cost recovery
 fees, and distribution policies relating to fees.
     (b) In the case of an individual who has never received assistance under a state program
 funded under title IV-A of the Social Security Act and for whom the public authority has
 collected at least $550 of support, the public authority must impose an annual federal
 collections fee of $35 for each case in which services are furnished. This fee must be retained
  Article 1 Sec. 215.  203
  03/03/26   REVISOR  JSK/BM  26-06400
  by the public authority from support collected on behalf of the individual, but not from the
  first $550 collected.
      (c) When the public authority provides full IV-D services to an obligee who has applied
  for those services, upon written notice to the obligee, the public authority must charge a
  cost recovery fee of two percent of the amount collected. This fee must be deducted from
  the amount of the child support and maintenance collected and not assigned under section
  518A.81 before disbursement to the obligee. This fee does not apply to an obligee who:
      (1) is currently receiving assistance under the state's title IV-A, IV-E foster care, or
  medical assistance programs; or
     (2) has received assistance under the state's title IV-A or IV-E foster care programs,
 until the person has not received this assistance for 24 consecutive months.
     (d) When the public authority provides full IV-D services to an obligor who has applied
 for such services, upon written notice to the obligor, the public authority must charge a cost
 recovery fee of two percent of the monthly court-ordered child support and maintenance
 obligation. The fee may be collected through income withholding, as well as by any other
 enforcement remedy available to the public authority responsible for child support
 enforcement.
     (e) Fees assessed by state and federal tax agencies for collection of overdue support
 owed to or on behalf of a person not receiving public assistance must be imposed on the
 person for whom these services are provided. The public authority upon written notice to
 the obligee shall assess a fee of $25 to the person not receiving public assistance for each
 successful federal tax interception. The fee must be withheld prior to the release of the funds
 received from each interception and deposited in the general fund.
     (f) Federal collections fees collected under paragraph (b) and cost recovery fees collected
 under paragraphs (c) and (d) retained by the commissioner of human services children,
 youth, and families shall be considered child support program income according to Code
 of Federal Regulations, title 45, section 304.50, and shall be deposited in the special revenue
 fund account established under paragraph (h). The commissioner of human services children,
 youth, and families must elect to recover costs based on either actual or standardized costs.
     (g) The limitations of this section on the assessment of fees shall not apply to the extent
 inconsistent with the requirements of federal law for receiving funds for the programs under
 title IV-A and title IV-D of the Social Security Act, United States Code, title 42, sections
 601 to 613 and United States Code, title 42, sections 651 to 662.
  Article 1 Sec. 215.  204
  03/03/26   REVISOR  JSK/BM  26-06400
      (h) The commissioner of human services children, youth, and families is authorized to
  establish a special revenue fund account to receive the federal collections fees collected
  under paragraph (b) and cost recovery fees collected under paragraphs (c) and (d).
      (i) The nonfederal share of the cost recovery fee revenue must be retained by the
  commissioner and distributed as follows:
      (1) one-half of the revenue must be transferred to the child support system special revenue
  account to support the state's administration of the child support enforcement program and
  its federally mandated automated system;
      (2) an additional portion of the revenue must be transferred to the child support system
 special revenue account for expenditures necessary to administer the fees; and
     (3) the remaining portion of the revenue must be distributed to the counties to aid the
 counties in funding their child support enforcement programs.
     (j) The nonfederal share of the federal collections fees must be distributed to the counties
 to aid them in funding their child support enforcement programs.
     (k) The commissioner of human services shall distribute quarterly any of the funds
 dedicated to the counties under paragraphs (i) and (j) using the methodology specified in
 section 518A.84, subdivision 11. The funds received by the counties must be reinvested in
 the child support enforcement program and the counties must not reduce the funding of
 their child support programs by the amount of the funding distributed.
   Sec. 216. Minnesota Statutes 2024, section 518A.56, subdivision 11, is amended to read:
     Subd. 11. Collections unit recoupment account. The commissioner of human services
 children, youth, and families may establish a revolving account to cover funds issued in
 error due to insufficient funds or other reasons. Appropriations for this purpose and all
 recoupments against payments from the account shall be deposited in the collections unit's
 recoupment account and are appropriated to the commissioner. Any unexpended balance
 in the account does not cancel, but is available until expended.
  Article 1 Sec. 216.  205
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 217. Minnesota Statutes 2024, section 518C.613, is amended to read:
      518C.613 JURISDICTION TO MODIFY SUPPORT ORDER OF ANOTHER
  STATE WHEN INDIVIDUAL PARTIES RESIDE IN THIS STATE.
      (a) If all of the parties who are individuals reside in this state and the child does not
  reside in the issuing state, a tribunal of this state has jurisdiction to enforce and to modify
  the issuing state's child support order in a proceeding to register that order.
      (b) A tribunal of this state exercising jurisdiction as provided in this section shall apply
  sections 518C.101 to 518C.211 and 518C.601 to 518C.616 to the enforcement or
  modification proceeding. Sections 518C.301 to 518C.508 518C.507 and 518C.701 to
 518C.802 do not apply and the tribunal shall apply the procedural and substantive law of
 this state.
   Sec. 218. Minnesota Statutes 2025 Supplement, section 580.07, subdivision 1, is amended
 to read:
     Subdivision 1. Postponement by mortgagee. (a) The sale may be postponed, from time
 to time, by the party conducting the foreclosure. The party requesting the postponement
 must, at the party's expense:
     (1) publish, only once, a notice of the postponement and the rescheduled date of the sale,
 if known, as soon as practicable, in the newspaper in which the notice under section 580.03
 of sale was published; and
     (2) send by first class mail to the occupant, postmarked within three business days of
 the postponed sale, notice:
     (i) of the postponement; and
     (ii) if known, of the rescheduled date of the sale and the date on or before which the
 mortgagor must vacate the property if the sheriff's sale is not further postponed, the mortgage
 is not reinstated under section 580.30, the property is not redeemed under section 580.23,
 or the redemption period is not reduced under section 582.032. The notice must state that
 the time to vacate the property is 11:59 p.m. on the specified date.
     (b) If the rescheduled date of the sale is not known at the time of the initial publication
 and notice to the occupant of postponement, the foreclosing party must, at its expense if
 and when a new date of sale is scheduled:
  Article 1 Sec. 218.  206
  03/03/26   REVISOR  JSK/BM  26-06400
      (1) publish, only once, notice of the rescheduled date of the sale, as soon as practicable,
  in the newspaper in which the notice under section 580.03 of sale and the notice of
  postponement under paragraph (a) was published; and
      (2) send by first class mail to the occupant, postmarked within ten days of the rescheduled
  sale, notice:
      (i) of the date of the rescheduled sale; and
      (ii) of the date on or before which the mortgagor must vacate the property if the mortgage
  is not reinstated under section 580.30 or the property redeemed under section 580.23. The
  notice must state that the time to vacate the property is 11:59 p.m. on the specified date.
     (c) The right of a mortgagee to postpone a foreclosure sale under this section applies to
 a foreclosure by action taken under chapter 581.
   Sec. 219. Minnesota Statutes 2025 Supplement, section 580.07, subdivision 2, is amended
 to read:
     Subd. 2. Postponement by mortgagor or owner. (a) If all or a part of the property to
 be sold is classified as homestead under section 273.124 and contains one to four dwelling
 units, the mortgagor or owner may, in the manner provided in this subdivision, postpone
 the sale to the first date that is not a Saturday, Sunday, or legal holiday and is:
     (1) five months after the originally scheduled date of sale if the original redemption
 period was six months under section 580.23, subdivision 1; or
     (2) 11 months after the originally scheduled date of sale if the original redemption period
 was 12 months under section 580.23, subdivision 2. To postpone a foreclosure sale pursuant
 to this subdivision, at any time after the first publication of the notice of mortgage foreclosure
 sale under section 580.03 but at least 15 days prior to the scheduled sale date specified in
 that notice, the mortgagor shall: (i) execute a sworn affidavit in the form set forth in
 subdivision 3, (ii) record the affidavit in the office of each county recorder and registrar of
 titles where the mortgage was recorded, and (iii) file with the sheriff conducting the sale
 and deliver to the attorney foreclosing the mortgage a copy of the recorded affidavit, showing
 the date and office in which the affidavit was recorded. Recording of the affidavit and
 postponement of the foreclosure sale pursuant to this subdivision shall automatically reduce
 the mortgagor's redemption period under section 580.23 to five weeks. The postponement
 of a foreclosure sale pursuant to this subdivision does not require any change in the contents
 of the notice of sale, service of the notice of sale if the occupant was served with the notice
 of sale prior to postponement under this subdivision, or publication of the notice of sale if
  Article 1 Sec. 219.  207
  03/03/26   REVISOR  JSK/BM  26-06400
  publication was commenced prior to postponement under this subdivision, notwithstanding
  the service and publication time periods specified in section 580.03 or sections 550.18 and
  550.19, as applicable, but the sheriff's certificate of sale shall indicate the actual date of the
  foreclosure sale and the actual length of the mortgagor's redemption period. No notice of
  postponement need be published. An affidavit complying with subdivision 3 shall be prima
  facie evidence of the facts stated therein, and shall be entitled to be recorded. The right to
  postpone a foreclosure sale pursuant to this subdivision may be exercised only once,
  regardless whether the mortgagor reinstates the mortgage prior to the postponed mortgage
  foreclosure sale.
     (b) If the automatic stay under United States Code, title 11, section 362, applies to the
 mortgage foreclosure after a mortgagor or owner requests postponement of the sheriff's sale
 under this section, then when the automatic stay is no longer applicable, the mortgagor's or
 owner's election to shorten the redemption period to five weeks under this section remains
 applicable to the mortgage foreclosure.
     (c) Except for the circumstances set forth in paragraph (b), this section does not reduce
 the mortgagor's redemption period under section 580.23 for any subsequent foreclosure of
 the mortgage.
     (d) The right of a mortgagor or owner to postpone a foreclosure sale under this section
 applies to a foreclosure by action taken under chapter 581.
   Sec. 220. Minnesota Statutes 2024, section 609.232, subdivision 11, is amended to read:
     Subd. 11. Vulnerable adult. "Vulnerable adult" means any person 18 years of age or
 older who:
     (1) is a resident inpatient of a facility;
     (2) receives services at or from a facility required to be licensed to serve adults under
 sections 245A.01 to 245A.15 chapter 245A, except that a person receiving outpatient services
 for treatment of chemical dependency or mental illness, or one who is committed as a sexual
 psychopathic personality or as a sexually dangerous person under chapter 253B, is not
 considered a vulnerable adult unless the person meets the requirements of clause (4);
     (3) receives services from a home care provider required to be licensed under sections
 144A.43 to 144A.482; or from a person or organization that exclusively offers, provides,
 or arranges for personal care assistance services under the medical assistance program as
 authorized under sections 256B.0625, subdivision 19a, 256B.0651 to 256B.0654, and
 256B.0659; or
  Article 1 Sec. 220.  208
  03/03/26   REVISOR  JSK/BM  26-06400
      (4) regardless of residence or whether any type of service is received, possesses a physical
  or mental infirmity or other physical, mental, or emotional dysfunction:
      (i) that impairs the individual's ability to provide adequately for the individual's own
  care without assistance, including the provision of food, shelter, clothing, health care, or
  supervision; and
      (ii) because of the dysfunction or infirmity and the need for assistance, the individual
  has an impaired ability to protect the individual from maltreatment.
    Sec. 221. Minnesota Statutes 2024, section 611A.37, subdivision 1, is amended to read:
      Subdivision 1. Scope. For purposes of sections 611A.371 to 611A.375 611A.373, the
 terms defined have the meanings given them unless otherwise provided or indicated by the
 context.
   Sec. 222. Minnesota Statutes 2024, section 611A.372, is amended to read:
     611A.372 DUTIES OF DIRECTOR.
     In addition to any other duties imposed by law, the director, with the approval of the
 commissioner of public safety, shall:
     (1) supervise the administration of grant payments to designated shelter facilities;
     (2) collect data on shelter facilities;
     (3) conduct an annual evaluation of the grant program;
     (4) report to the governor and the legislature on the need for emergency secure shelter;
     (5) develop an application process for shelter facilities to follow in seeking reimbursement
 under the grant program; and
     (6) adopt rules to implement and administer sections 611A.37 to 611A.375 611A.373.
   Sec. 223. Minnesota Statutes 2024, section 624.7192, is amended to read:
     624.7192 AUTHORITY TO SEIZE AND CONFISCATE FIREARMS.
     (a) This section applies only during the effective period of a state of emergency
 proclaimed by the governor relating to a public disorder or disaster.
     (b) A peace officer who is acting in the lawful discharge of the officer's official duties
 without a warrant may disarm a lawfully detained individual only temporarily and only if
 the officer reasonably believes it is immediately necessary for the protection of the officer
  Article 1 Sec. 223.  209
  03/03/26   REVISOR  JSK/BM  26-06400
  or another individual. Before releasing the individual, the peace officer must return to the
  individual any seized firearms and ammunition, and components thereof, any firearms
  accessories and ammunition reloading equipment and supplies, and any other personal
  weapons taken from the individual, unless the officer: (1) takes the individual into physical
  custody for engaging in criminal activity or for observation pursuant to section 253B.05,
  subdivision 2 253B.051, subdivision 2; or (2) seizes the items as evidence pursuant to an
  investigation for the commission of the crime for which the individual was arrested.
      (c) Notwithstanding any other law to the contrary, no governmental unit, government
  official, government employee, peace officer, or other person or body acting under
 governmental authority or color of law may undertake any of the following actions with
 regard to any firearms and ammunition, and components thereof; any firearms accessories
 and ammunition reloading equipment and supplies; and any other personal weapons:
     (1) prohibit, regulate, or curtail the otherwise lawful possession, carrying, transportation,
 transfer, defensive use, or other lawful use of any of these items;
     (2) seize, commandeer, or confiscate any of these items in any manner, except as
 expressly authorized in paragraph (b);
     (3) suspend or revoke a valid permit issued pursuant to section 624.7131 or 624.714,
 except as expressly authorized in those sections; or
     (4) close or limit the operating hours of businesses that lawfully sell or service any of
 these items, unless such closing or limitation of hours applies equally to all forms of
 commerce.
     (d) No provision of law relating to a public disorder or disaster emergency proclamation
 by the governor or any other governmental or quasi-governmental official, including but
 not limited to emergency management powers pursuant to chapters 9 and 12, shall be
 construed as authorizing the governor or any other governmental or quasi-governmental
 official of this state or any of its political subdivisions acting at the direction of the governor
 or another official to act in violation of this paragraph or paragraphs (b) and (c).
     (e)(1) An individual aggrieved by a violation of this section may seek relief in an action
 at law or in equity or in any other proper proceeding for damages, injunctive relief, or other
 appropriate redress against a person who commits or causes the commission of this violation.
 Venue must be in the district court having jurisdiction over the county in which the aggrieved
 individual resides or in which the violation occurred.
  Article 1 Sec. 223.  210
  03/03/26   REVISOR  JSK/BM  26-06400
      (2) In addition to any other remedy available at law or in equity, an individual aggrieved
  by the seizure or confiscation of an item listed in paragraph (c) in violation of this section
  may make application for the immediate return of the items to the office of the clerk of
  court for the county in which the items were seized and, except as provided in paragraph
  (b), the court must order the immediate return of the items by the seizing or confiscating
  governmental office and that office's employed officials.
      (3) In an action or proceeding to enforce this section, the court must award the prevailing
  plaintiff reasonable court costs and expenses, including attorney fees.
    Sec. 224. Laws 2023, chapter 1, section 22, as amended by Laws 2025, First Special
 Session chapter 13, article 9, section 9, is amended to read:
   Sec. 22. TEMPORARY ADDITIONS AND SUBTRACTIONS; INDIVIDUALS,
 ESTATES, AND TRUSTS.
     (a) For the purposes of this section:
     (1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132,
 subdivision 1, and the rules in that subdivision apply to this section;
     (2) "addition" has the meaning given in Minnesota Statutes, section 290.0131, subdivision
 1, and the rules in that subdivision apply to this section; and
     (3) the definitions in Minnesota Statutes, section 290.01, apply to this section.
     (b) The following amounts are subtractions:
     (1) the amount of wages used for the calculation of the employee retention credit for
 employers affected by qualified disasters, to the extent not deducted from income, under
 Public Law 116-94, division Q, section 203, or Public Law 116-260, division EE, section
 303;
     (2) the amount of wages used for the calculation of the payroll credit for required paid
 sick leave, to the extent not deducted from income, under Public Law 116-127, section
 7001, as amended by section 9641 of Public Law 117-2;
     (3) the amount of wages or expenses used for the calculation of the payroll credit for
 required paid family leave, to the extent not deducted from income, under Public Law
 116-127, section 7003, as amended by section 9641 of Public Law 117-2;
     (4) the amount of wages used for the calculation of the employee retention credit for
 employers subject to closure due to COVID-19, to the extent not deducted from income,
  Article 1 Sec. 224.  211
  03/03/26   REVISOR  JSK/BM  26-06400
  under Public Law 116-136, section 2301, as amended by Public Law 116-260, division EE,
  section 207, and Public Law 117-2, section 9651; and
      (5) the amount required to be added to gross income to claim the credit in section 6432
  of the Internal Revenue Code.
      (c) The following amounts are additions:
      (1) the amount subtracted for qualified tuition expenses under section 222 of the Internal
  Revenue Code, as amended by Public Law 116-94, division Q, section 104;
      (2) the amount of above the line charitable contributions deducted under section 2204
  of Public Law 116-136;
     (3) the amount of meal expenses in excess of the 50 percent limitation under section
 274(n)(1) of the Internal Revenue Code allowed under subsection (n), paragraph (2),
 subparagraph (D), of that section; and
     (4) the amount of charitable contributions deducted from federal taxable income by a
 trust for taxable year 2020 under Public Law 116-136, section 2205(a).
     (d) The commissioner of revenue must apply the subtractions in paragraph (b) and the
 additions in paragraph (c), when calculating the following:
     (1) the percentage under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
 (e);
     (2) a taxpayer's alternative minimum taxable income under Minnesota Statutes, section
 290.091; and
     (3) "income" for the purposes of determining the tax for composite filers and the
 pass-through entity tax, means the partner's share of federal adjusted gross income from the
 partnership modified by the additions provided in Minnesota Statutes, section 290.0131,
 subdivisions 8 to 10, 16, 17, and 19, and the subtractions provided in (i) Minnesota Statutes,
 section 290.0132, subdivisions 9, 27, and 28, and 31, to the extent the amount is assignable
 or allocable to Minnesota under Minnesota Statutes, section 290.17; and (ii) Minnesota
 Statutes, section 290.0132, subdivision 14. The subtraction allowed under Minnesota Statutes,
 section 290.0132, subdivision 9, is only allowed on the composite tax computation to the
 extent the electing partner would have been allowed the subtraction.
     (e) For the purpose of calculating property tax refunds under Minnesota Statutes, chapter
 290A, any amounts allowed as a subtraction in paragraph (b) are excluded from "income,"
 as defined in Minnesota Statutes, section 290A.03, subdivision 3.
  Article 1 Sec. 224.  212
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 225. SUPERSEDING ACTS.
      Any amendments or repeals enacted in the 2026 session of the legislature to sections
  also amended or repealed in this act, supersede the amendments or repeals in this act,
  regardless of order of enactment.
    Sec. 226. REPEALER.
      Subdivision 1. Obsolete subdivision. Minnesota Statutes 2024, section 13.461,
  subdivision 16a, is repealed.
      Subd. 2. Duplicative definitions. Minnesota Statutes 2024, section 142E.50, subdivisions
  1, 4, and 7, are repealed.
     Subd. 3. Obsolete subdivision. Minnesota Statutes 2024, section 256.9756, subdivision
 3, is repealed.
     Subd. 4. Obsolete subdivision. Minnesota Statutes 2024, section 256B.092, subdivision
 4b, is repealed.
     Subd. 5. Obsolete subdivision. Minnesota Statutes 2024, section 256R.50, subdivision
 6, is repealed.
     Subd. 6. Obsolete definition. Minnesota Statutes 2024, section 257E.10, subdivision
 11, is repealed.
     Subd. 7. Obsolete subdivision. Minnesota Statutes 2024, section 272.02, subdivision
 31, is repealed.
     Subd. 8. Obsolete subdivision. Minnesota Statutes 2024, section 273.11, subdivision
 19, is repealed.
     Subd. 9. Obsolete subdivision. Minnesota Statutes 2024, section 273.11, subdivision
 20, is repealed.
     Subd. 10. Obsolete subdivision. Minnesota Statutes 2024, section 273.1315, subdivision
 1, is repealed.
     Subd. 11. Obsolete section. Minnesota Statutes 2024, section 273.1385, is repealed.
     Subd. 12. Obsolete subdivision. Minnesota Statutes 2024, section 289A.60, subdivision
 15, is repealed.
     Subd. 13. Obsolete subdivision. Minnesota Statutes 2024, section 297I.15, subdivision
 2, is repealed.
  Article 1 Sec. 226.  213
  03/03/26   REVISOR  JSK/BM  26-06400
Subd. 14. Obsolete section. Minnesota Statutes 2024, section 383B.1511, is repealed.
Subd. 15. Obsolete section. Minnesota Statutes 2024, section 477A.18, is repealed.
Subd. 16. Obsolete section. Minnesota Statutes 2024, section 480.011, is repealed.
Subd. 17. Obsolete subdivision. Minnesota Statutes 2024, section 504B.345, subdivision
  2, is repealed.
Subd. 18. Conflict resolution. Laws 2024, chapter 79, article 1, section 20, is repealed.
Subd. 19. Conflict resolution. Laws 2025, chapter 21, sections 56; and 57, are repealed.
ARTICLE 2
METRODOME STATUTES CLEANUP
   Section 1. Minnesota Statutes 2024, section 3.9741, subdivision 1, is amended to read:
Subdivision 1. Metropolitan Commission. Upon the audit of the financial accounts
 and affairs of a commission under section 473.595, 473.604, or 473.703, the affected
 Metropolitan Commission is liable to the state for the total cost and expenses of the audit,
 including the salaries paid to the examiners while actually engaged in making the
 examination. The legislative auditor may bill the Metropolitan Commission either monthly
 or at the completion of the audit. All collections received for the audits must be deposited
 in the general fund.
   Sec. 2. Minnesota Statutes 2024, section 13.202, subdivision 11, is amended to read:
Subd. 11. Metropolitan government. (a) Affirmative action plans. Treatment of data
 relating to metropolitan agency affirmative action plans is governed by section 473.143,
 subdivisions 5 and 7.
(b) Contracts for management services. Data relating to compensation of personnel
 who work under a management service contract are classified by section 473.405, subdivision
 12.
(c) Arena acquisition. Certain data in connection with a decision whether to acquire a
 sports arena are classified under Minnesota Statutes 2024, section 473.598, subdivision 4.
(d) Airports commission. Certain airline data submitted to the Metropolitan Airports
 Commission in connection with the issuance of revenue bonds are classified under section
 473.6671, subdivision 3.
  Article 2 Sec. 2.  214
  03/03/26   REVISOR  JSK/BM  26-06400
      (e) Solid waste landfill fee. Information obtained from the operator of a mixed municipal
  solid waste disposal facility under section 473.843 is classified under section 473.843,
  subdivision 4.
      (f) Metropolitan airport parking customers. Data relating to applicants for or users
  of automated parking facilities at the Minneapolis-St. Paul International Airport are classified
  under section 473.685.
    Sec. 3. Minnesota Statutes 2024, section 13.55, subdivision 1, is amended to read:
      Subdivision 1. Not public classification. The following data received, created, or
  maintained by or for publicly owned and operated convention facilities, or civic center
 authorities, or the Metropolitan Sports Facilities Commission are classified as nonpublic
 data pursuant to section 13.02, subdivision 9; or private data on individuals pursuant to
 section 13.02, subdivision 12:
     (a) a letter or other documentation from any person who makes inquiry to or who is
 contacted by the facility regarding the availability of the facility for staging events;
     (b) identity of firms and corporations which contact the facility;
     (c) type of event which they wish to stage in the facility;
     (d) suggested terms of rentals; and
     (e) responses of authority staff to these inquiries.
   Sec. 4. Minnesota Statutes 2024, section 240A.03, subdivision 6, is amended to read:
     Subd. 6. Disposition of property. The commission may sell or otherwise dispose of
 any real or personal property acquired by it that is no longer required for accomplishment
 of its purposes. The property shall be sold in the manner provided by section 469.065,
 insofar as practical and consistent with Minnesota Statutes 2024, sections 473.551 to 473.595.
   Sec. 5. Minnesota Statutes 2024, section 352.01, subdivision 2a, is amended to read:
     Subd. 2a. Included employees. (a) "State employee" includes:
     (1) employees of the Minnesota Historical Society;
     (2) employees of the State Horticultural Society;
     (3) employees of the Minnesota Crop Improvement Association;
  Article 2 Sec. 5.  215
  03/03/26   REVISOR  JSK/BM  26-06400
      (4) employees of the adjutant general whose salaries are paid from federal funds and
  who are not covered by any federal civilian employees retirement system;
      (5) employees of the Minnesota State Colleges and Universities who are employed under
  the university or college activities program;
      (6) currently contributing employees covered by the system who are temporarily
  employed by the legislature during a legislative session or any currently contributing
  employee employed for any special service as defined in subdivision 2b, clause (6);
      (7) employees of the legislature who are appointed without a limit on the duration of
  their employment;
     (8) trainees who are employed on a full-time established training program performing
 the duties of the classified position for which they will be eligible to receive immediate
 appointment at the completion of the training period;
     (9) employees of the Minnesota Safety Council;
     (10) any employees who are on authorized leave of absence from the Transit Operating
 Division of the former Metropolitan Transit Commission and who are employed by the
 labor organization which is the exclusive bargaining agent representing employees of the
 Transit Operating Division;
     (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
 Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito Control
 Commission unless excluded under subdivision 2b or are covered by another public pension
 fund or plan under section 473.415, subdivision 3;
     (12) judges of the Tax Court;
     (13) personnel who were employed on June 30, 1992, by the University of Minnesota
 in the management, operation, or maintenance of its heating plant facilities, whose
 employment transfers to an employer assuming operation of the heating plant facilities, so
 long as the person is employed at the University of Minnesota heating plant by that employer
 or by its successor organization;
     (14) personnel who are employed as seasonal employees in the classified or unclassified
 service;
     (15) persons who are employed by the Department of Commerce as a peace officer in
 the Commerce Fraud Bureau under section 45.0135 who have attained the mandatory
 retirement age specified in section 43A.34, subdivision 4;
  Article 2 Sec. 5.  216
  03/03/26   REVISOR  JSK/BM  26-06400
      (16) employees of the University of Minnesota unless excluded under subdivision 2b,
  clause (3);
      (17) employees of the Middle Management Association whose employment began after
  July 1, 2007, and to whom section 352.029 does not apply;
      (18) employees of the Minnesota Government Engineers Council to whom section
  352.029 does not apply;
      (19) employees of the Minnesota Sports Facilities Authority;
      (20) employees of the Minnesota Association of Professional Employees;
      (21) employees of the Minnesota State Retirement System;
     (22) employees of the State Agricultural Society;
     (23) employees of the Gillette Children's Hospital Board who were employed in the
 state unclassified service at the former Gillette Children's Hospital on March 28, 1974;
     (24) if approved for coverage by the Board of Directors of Conservation Corps Minnesota,
 employees of Conservation Corps Minnesota so employed on June 30, 2003; and
     (25) employees of the Perpich Center for Arts Education who are covered by the general
 state employees retirement plan of the Minnesota State Retirement System as of July 1,
 2016.
     (b) Employees specified in paragraph (a), clause (13), are included employees under
 paragraph (a) if employer and employee contributions are made in a timely manner in the
 amounts required by section 352.04. Employee contributions must be deducted from salary.
 Employer contributions are the sole obligation of the employer assuming operation of the
 University of Minnesota heating plant facilities or any successor organizations to that
 employer.
   Sec. 6. Minnesota Statutes 2024, section 473.121, subdivision 5a, is amended to read:
     Subd. 5a. Metropolitan agency. "Metropolitan agency" means the Metropolitan Parks
 and Open Space Commission, and Metropolitan Airports Commission, and Metropolitan
 Sports Facilities Commission.
  Article 2 Sec. 6.  217
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    Sec. 7. Minnesota Statutes 2024, section 473.164, is amended to read:
      473.164 SPORTS, AIRPORT COMMISSIONS COMMISSION TO PAY COUNCIL
  COSTS.
      Subdivision 1. Annually reimburse. The Metropolitan Sports Facilities Commission
  and the Metropolitan Airports Commission shall annually reimburse the council for costs
  incurred by the council in the discharge of its responsibilities relating to the commission.
  The costs may be charged against any revenue sources of the commission as determined
  by the commission.
      Subd. 2. Estimates, budget, transfer. On or before May 1 of each year, the council
 shall transmit to each the commission an estimate of the costs which the council will incur
 in the discharge of its responsibilities related to the commission in the next budget year
 including, without limitation, costs in connection with the preparation, review,
 implementation and defense of plans, programs and budgets of the commission. Each The
 commission shall include the estimates in its budget for the next budget year and may
 transmit its comments concerning the estimated amount to the council during the budget
 review process. Prior to December 15 of each year, the amount budgeted by each the
 commission for the next budget year may be changed following approval by the council.
 During each budget year, the commission shall transfer budgeted funds to the council in
 advance when requested by the council.
     Subd. 3. Final statement. At the conclusion of each budget year, the council, in
 cooperation with each the commission, shall adopt a final statement of costs incurred by
 the council for each the commission. Where costs incurred in the budget year have exceeded
 the amount budgeted, each the commission shall transfer to the council the additional moneys
 needed to pay the amount of the costs in excess of the amount budgeted, and shall include
 a sum in its next budget. Any excess of budgeted costs over actual costs may be retained
 by the council and applied to the payment of budgeted costs in the next year.
   Sec. 8. Minnesota Statutes 2024, section 473.755, subdivision 4, is amended to read:
     Subd. 4. Bylaws. The authority shall adopt bylaws to establish rules of procedure, the
 powers and duties of its officers, and other matters relating to the governance of the authority
 and the exercise of its powers. Except as provided in this section, the bylaws adopted under
 this subdivision shall be similar in form and substance to bylaws adopted by the Metropolitan
 Sports Facilities Commission pursuant to Minnesota Statutes 2024, section 473.553.
  Article 2 Sec. 8.  218
  03/03/26   REVISOR  JSK/BM  26-06400
    Sec. 9. Minnesota Statutes 2024, section 473J.12, subdivision 2, is amended to read:
      Subd. 2. Other required agreements. The NFL team or the authority shall give food,
  beverage, retail, and concession workers presently employed by the NFL team or the
  Metropolitan Sports Facilities Commission or its vendors at the existing football stadium
  the opportunity to continue their employment in comparable positions at the new stadium.
  Workers who are presently represented under a collective bargaining agreement may seek
  to continue such representation in the facility and designate such, or another collective
  bargaining unit, as their representative.
    Sec. 10. Minnesota Statutes 2024, section 473J.13, subdivision 3, is amended to read:
     Subd. 3. Public access. The authority will work to maximize access for public and
 amateur sports, community, and civic events, and other public events in type and on terms
 consistent with those currently held at the existing football stadium, as defined in Minnesota
 Statutes 2024, section 473.551, subdivision 9. The authority may provide that these events
 have exclusive use of the premises at agreed-upon times subject to the scheduling rights of
 the NFL team under the lease or use agreement.
   Sec. 11. REPEALER.
     Subdivision 1. Obsolete subdivision. Minnesota Statutes 2024, section 137.50,
 subdivision 5, is repealed.
     Subd. 2. Obsolete section. Minnesota Statutes 2024, section 473.551, is repealed.
     Subd. 3. Obsolete section. Minnesota Statutes 2024, section 473.552, is repealed.
     Subd. 4. Obsolete section. Minnesota Statutes 2024, section 473.553, subdivisions 1,
 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13, are repealed.
     Subd. 5. Obsolete section. Minnesota Statutes 2024, section 473.556, subdivisions 1,
 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, and 17, are repealed.
     Subd. 6. Obsolete section. Minnesota Statutes 2024, section 473.561, is repealed.
     Subd. 7. Obsolete section. Minnesota Statutes 2024, section 473.564, subdivisions 2
 and 3, are repealed.
     Subd. 8. Obsolete section. Minnesota Statutes 2024, section 473.565, is repealed.
     Subd. 9. Obsolete section. Minnesota Statutes 2024, section 473.572, is repealed.
     Subd. 10. Obsolete section. Minnesota Statutes 2024, section 473.581, is repealed.
  Article 2 Sec. 11.  219
03/03/26   REVISOR  JSK/BM  26-06400
     Subd. 11. Obsolete section. Minnesota Statutes 2024, section 473.592, subdivision 1,
 is repealed.
     Subd. 12. Obsolete section. Minnesota Statutes 2024, section 473.595, is repealed.
     Subd. 13. Obsolete section. Minnesota Statutes 2024, section 473.596, is repealed.
     Subd. 14. Obsolete section. Minnesota Statutes 2024, section 473.598, is repealed.
     Subd. 15. Obsolete section. Minnesota Statutes 2024, section 473.599, is repealed.
     Subd. 16. Obsolete section. Minnesota Statutes 2024, section 473.5995, is repealed.
     Subd. 17. Obsolete section. Minnesota Statutes 2024, section 473.76, is repealed.
     Subd. 18. Obsolete section. Minnesota Statutes 2024, section 473.763, is repealed.
Article 2 Sec. 11.  220
  APPENDIX
  Article locations for 26-06400
ARTICLE 1   MISCELLANEOUS............................................................................... Page.Ln 2.40
ARTICLE 2   METRODOME STATUTES CLEANUP............................................... Page.Ln 214.8
  APPENDIX
  Repealed Minnesota Statutes: 26-06400
    13.461 HUMAN SERVICES DATA CODED ELSEWHERE.
    Subd. 16a. Child fatality and near fatality review team. Data practices of the commissioner
of children, youth, and families as part of the child fatality and near fatality review team are governed
by section 142A.03, subdivision 8.
    137.50 DEFINITIONS.
    Subd. 5. Commission. "Commission" means the Metropolitan Sports Facilities Commission.
    142E.50 DEFINITIONS.
    Subdivision 1. Application. For purposes of this chapter, the terms defined in this section have
the meanings given them.
   Subd. 4. Commissioner. "Commissioner" means the commissioner of children, youth, and
families.
    Subd. 7. Department. "Department" means the Department of Children, Youth, and Families.
    256.9756 CAREGIVER RESPITE SERVICES GRANTS.
    Subd. 3. Report. By January 15, 2026, the board shall submit a progress report about the
caregiver respite services grants in this section to the chairs and ranking minority members of the
legislative committees and divisions with jurisdiction over human services finance and policy. The
progress report must include metrics of the use of grant program money. This subdivision expires
upon submission of the report. The board shall notify the revisor of statutes when the report is
submitted.
    256B.092 SERVICES FOR PERSONS WITH DEVELOPMENTAL DISABILITIES.
    Subd. 4b. Case management for persons receiving home and community-based
services. Persons authorized for and receiving home and community-based services may select
from vendors of case management which have provider agreements with the state to provide home
and community-based case management service activities. This subdivision becomes effective July
1, 1992, only if the state agency is unable to secure federal approval for limiting choice of case
management vendors to the county of financial responsibility.
    256R.50 BED RELOCATIONS.
    Subd. 6. Determination of rate adjustment. (a) If the amount determined in subdivision 5 is
less than or equal to the amount determined in subdivision 4, the commissioner shall allow a total
payment rate equal to the amount used in subdivision 5, clause (3).
   (b) If the amount determined in subdivision 5 is greater than the amount determined in
subdivision 4, the commissioner shall allow a rate with a case mix index of 1.0 that when used in
subdivision 5, clause (3), results in the amount determined in subdivision 5 being equal to the
amount determined in subdivision 4.
    (c) If the commissioner relies upon provider estimates in subdivision 5, clause (1) or (2), then
annually, for three years after the rates determined in this section take effect, the commissioner
shall determine the accuracy of the alternative factors of medical assistance case load and the facility
average case mix index used in this section and shall reduce the total payment rate if the factors
used result in medical assistance costs exceeding the amount in subdivision 4. If the actual medical
assistance costs exceed the estimates by more than five percent, the commissioner shall also recover
the difference between the estimated costs in subdivision 5 and the actual costs according to section
256B.0641. The commissioner may require submission of data from the receiving facility needed
to implement this paragraph.
    (d) When beds approved for relocation are put into active service at the destination facility,
rates determined in this section must be adjusted by any adjustment amounts that were implemented
after the date of the letter of approval.
    (e) Rate adjustments determined under this subdivision expire after three full rate years following
the effective date of the rate adjustment. This subdivision expires when the final rate adjustment
determined under this subdivision expires.
    257E.10 DEFINITIONS.
    Subd. 11. Presumed parent. "Presumed parent" means an individual who under sections 257.51
to 257.74 is presumed to be a parent of a child, unless the requirements of section 257.57, subdivision
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  APPENDIX
  Repealed Minnesota Statutes: 26-06400
2, are met; the presumption is overcome in a judicial proceeding; a valid denial of parentage is
made under this chapter; or a court adjudicates the individual to be a parent.
    272.02 EXEMPT PROPERTY.
     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 2016.
    273.11 VALUATION OF PROPERTY.
    Subd. 19. Valuation exclusion for improvements to certain business property. Property
classified under section 273.13, subdivision 24, which is eligible for the preferred classification
rate on the market value up to $150,000, shall qualify for a valuation exclusion for assessment
purposes, provided all of the following conditions are met:
   (1) the building must be at least 50 years old at the time of the improvement or damaged by the
1997 floods;
    (2) the building must be located in a city or town with a population of 10,000 or less that is
located outside the seven-county metropolitan area, as defined in section 473.121, subdivision 2;
    (3) the total estimated market value of the land and buildings must be $100,000 or less prior to
the improvement and prior to the damage caused by the 1997 floods;
   (4) the current year's estimated market value of the property must be equal to or less than the
property's estimated market value in each of the two previous years' assessments;
    (5) a building permit must have been issued prior to the commencement of the improvement,
or if the building is located in a city or town which does not have a building permit process, the
property owner must notify the assessor prior to the commencement of the improvement;
    (6) the property, including its improvements, has received no public assistance, grants or
financing except, that in the case of property damaged by the 1997 floods, the property is eligible
to the extent that the flood losses are not reimbursed by insurance or any public assistance, grants,
or financing;
    (7) the property is not receiving a property tax abatement under section 469.1813; and
   (8) the improvements are made after the effective date of Laws 1997, chapter 231, and prior to
January 1, 1999.
    The assessor shall estimate the market value of the building in the assessment year immediately
following the year that (1) the building permit was taken out, or (2) the taxpayer notified the assessor
that an improvement was to be made. If the estimated market value of the building has increased
over the prior year's assessment, the assessor shall note the amount of the increase on the property's
record, and that amount shall be subtracted from the value of the property in each year for five years
after the improvement has been made, at which time an amount equal to 20 percent of the excluded
value shall be added back in each of the five subsequent assessment years.
    For any property, there can be no more than two improvements qualifying for exclusion under
this subdivision. The maximum amount of value that can be excluded from any property under this
subdivision is $50,000.
   The assessor shall require an application, including documentation of the age of the building
from the owner, if unknown by the assessor. Applications must be received prior to July 1 of any
year in order to be effective for taxes payable in the following year.
   For purposes of this subdivision, "population" has the same meaning given in section 477A.011,
subdivision 3.
  2R
  APPENDIX
  Repealed Minnesota Statutes: 26-06400
    Subd. 20. Valuation exclusion for improvements to certain business property. Property
classified under section 273.13, subdivision 24, qualifies for a valuation exclusion for assessment
purposes, provided all of the following conditions are met:
    (1) the building must have been damaged by the 2002 floods;
    (2) the building must be located in a city or town with a population of 10,000 or less that is
located in a county in the area included in DR-1419;
    (3) the total estimated market value of the land and buildings must be $150,000 or less for
assessment year 2002;
    (4) a building permit must have been issued prior to the commencement of the improvement,
or if the building is located in a city or town which does not have a building permit process, the
property owner must notify the assessor prior to the commencement of the improvement;
    (5) the property is not receiving a property tax abatement under section 469.1813; and
    (6) the improvements are made before January 1, 2004.
    The assessor shall estimate the market value of the building in the assessment year immediately
following the year that (1) the building permit was taken out, or (2) the taxpayer notified the assessor
that an improvement was to be made. If the estimated market value of the building has increased
over the 2002 assessment before any reassessment due to flood damage, the assessor shall note the
amount of the increase on the property's record, and that amount shall be subtracted from the value
of the property in each year for five years after the improvement has been made. In each of the next
five subsequent assessment years, an amount equal to 20 percent of the value excluded in the fifth
year for that improvement shall be added back.
    The maximum amount of value that can be excluded for all improvements to any property under
this subdivision is $50,000.
    The assessor shall require an application. Applications must be received by December 31, 2002,
or December 31, 2003, in order to be effective for taxes payable in the following year.
   For purposes of this subdivision, "population" has the meaning given in section 477A.011,
subdivision 3.
    273.1315 CERTIFICATION OF CLASS 1B PROPERTY.
    Subdivision 1. Class 1b homestead declaration before 2009. Any property owner seeking
classification and assessment of the owner's homestead as class 1b property pursuant to section
273.13, subdivision 22, paragraph (b), on or before October 1, 2008, shall file with the commissioner
of revenue a 1b homestead declaration, on a form prescribed by the commissioner. The declaration
shall contain the following information:
    (1) the information necessary to verify that on or before June 30 of the filing year, the property
owner or the owner's spouse satisfies the requirements of section 273.13, subdivision 22, paragraph
(b), for 1b classification; and
    (2) any additional information prescribed by the commissioner.
    The declaration must be filed on or before October 1 to be effective for property taxes payable
during the succeeding calendar year. The declaration and any supplementary information received
from the property owner pursuant to this subdivision shall be subject to chapter 270B. If approved
by the commissioner, the declaration remains in effect until the property no longer qualifies under
section 273.13, subdivision 22, paragraph (b). Failure to notify the commissioner within 30 days
that the property no longer qualifies under that paragraph because of a sale, change in occupancy,
or change in the status or condition of an occupant shall result in the penalty provided in section
273.124, subdivision 13b, computed on the basis of the class 1b benefits for the property, and the
property shall lose its current class 1b classification.
    The commissioner shall provide to the assessor on or before November 1 a listing of the parcels
of property qualifying for 1b classification.
  273.1385 AID FOR PUBLIC EMPLOYEES RETIREMENT ASSOCIATION EMPLOYER
CONTRIBUTION RATE INCREASE.
   Subdivision 1. Aid to offset rate increase. Beginning with the December 26, 1997, payment,
and according to the schedule for payment of local aid under section 477A.015 thereafter, the
commissioner of revenue shall pay to each city, county, town, and other nonschool jurisdiction an
  3R
  APPENDIX
  Repealed Minnesota Statutes: 26-06400
amount equal to 0.35 percent of the fiscal year 1997 payroll for employees who were members of
the general plan of the Public Employees Retirement Association. Except for the December 1997
distribution under this section, the amount of aid must be certified before September 1 of the year
preceding the distribution year to the affected local government. The executive director of the Public
Employees Retirement Association shall certify the general plan fiscal year covered payroll and
other information requested by the commissioner of revenue, on or before August 1, 1997, and in
subsequent years where necessary, in order to facilitate administration of this section. The amount
necessary to make these aid payments is appropriated annually from the general fund to the
commissioner of revenue. Expenditures under this section are estimated to be $7,942,500 in fiscal
year 1998, and $15,885,000 in each subsequent fiscal year, less any future reductions under
subdivision 2.
     Subd. 2. Limit on aid and potential future permanent aid reductions. (a) The aid amount
received by any jurisdiction in fiscal year 2000 or any year thereafter may not exceed the amount
it received in fiscal year 1999. The commissioner may, from time to time, request the most recent
fiscal year payroll information by jurisdiction to be certified by the executive director of the Public
Employees Retirement Association. For any jurisdiction where newly certified public employees
retirement association general plan payroll is significantly lower than the fiscal 1997 amount, as
determined by the commissioner, the commissioner shall recalculate the aid amount based on the
most recent fiscal year payroll information, certify the recalculated aid amount for the next
distribution year, and permanently reduce the aid amount to that jurisdiction.
    (b) Aid to a jurisdiction must not be reduced under this section due to a transfer of an employee
from the general plan of the Public Employees Retirement Association to the local government
correctional service plan administered by the Public Employees Retirement Association. The
executive director of the Public Employees Retirement Association must provide the commissioner
of revenue with any information requested by the commissioner to administer this paragraph.
    Subd. 3. Effect of reorganizations. The commissioner of revenue may adjust the aid amounts
for separate jurisdictions to account for significant changes in boundaries or in the form of
government, as determined by the commissioner. If a local government function and the associated
Public Employees Retirement Association general plan payroll is assumed by either the state, or a
nonpublic organization, the aid amounts attributable to the function under this section must terminate.
   Subd. 4. Aid termination. The aid provided under this section terminates on June 30, 2020.
   289A.60 CIVIL PENALTIES.
    Subd. 15. Accelerated payment of June sales tax liability; penalty for underpayment. (a)
For payments made after December 31, 2019 and before December 31, 2021, if a vendor is required
by law to submit an estimation of June sales tax liabilities and 87.5 percent payment by a certain
date, the vendor shall pay a penalty equal to ten percent of the amount of actual June liability
required to be paid in June less the amount remitted in June. The penalty must not be imposed,
however, if the amount remitted in June equals the lesser of 87.5 percent of the preceding May's
liability or 87.5 percent of the average monthly liability for the previous calendar year.
   (b) For payments made after December 31, 2021, the penalty must not be imposed if the amount
remitted in June equals the lesser of 84.5 percent, or a reduced percentage as certified by the
commissioner under section 16A.152, subdivision 2, paragraph (a), clause (6), of the preceding
May's liability or 84.5 percent of the average monthly liability for the previous calendar year.
   (c) This subdivision expires after the percentage of estimated payment is reduced to zero in
accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).
   297I.15 EXEMPTIONS FROM TAX.
    Subd. 2. Minnesota employees insurance program. To the extent that the Minnesota employees
insurance program under section 43A.317 operates as a self-insured group, the premiums paid to
the program are exempt from the taxes imposed under this chapter, but are subject to a Minnesota
Comprehensive Health Association assessment under section 62E.11.
   383B.1511 JOB ORDER CONTRACTING.
   Subdivision 1. Definitions. (a) In this section, the definitions in this subdivision apply.
    (b) "Job order contracting" means a project delivery method that requests a limited number of
bids from a list of qualified contractors, selected from a registry of qualified contractors who have
been prescreened and who have entered into master contracts with the county, as provided in this
section.
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  APPENDIX
  Repealed Minnesota Statutes: 26-06400
    (c) "Project" means an undertaking by the county to construct, alter, maintain, repair, or enlarge
a building, structure, road, or bridge, or make other improvements.
    (d) "Request for qualifications" means the document or publication soliciting qualifications for
a job order contracting contract.
   Subd. 2. Authority. Notwithstanding any law to the contrary, the county may utilize job order
contracting for projects that do not exceed a construction cost of $250,000.
    Subd. 3. Job order contracting request for qualifications. (a) The county is authorized to
issue a request for qualifications that includes the criteria that will be used for the projects, provided
that these criteria (1) do not unduly restrict competition or impose conditions beyond reasonable
requirements, in order to ensure maximum participation of all qualified contractors, and (2) do not
relate to the collective bargaining status of the contractor.
    (b) The request for qualifications must be publicized in a manner designated by the county that
ensures open and unrestricted access for any potential responder. To the extent practical, this must
include posting on a county website.
     Subd. 4. Qualified contractors. (a) The county shall review the responses to the request for
qualifications and determine each proposer's ability to enter into the master contract that will be
utilized for the projects. The county shall establish a list of qualified contractors based on the
proposers' ability to enter into a master contract as described in the request for qualifications.
    (b) The county may establish a reasonable limit to the number of contractors on the registry of
qualified contractors, based on the reasonable needs of the county. The county may reserve up to
75 percent of the registry for certified small business enterprises that may include minority-owned
business enterprises, women-owned business enterprises, and veteran-owned businesses. The
remaining 25 percent of the registry may include qualified businesses of any size or ownership.
    (c) The county shall establish procedures to allow firms to submit qualifications at least every
24 months to allow placement on the list of contractors qualified to enter into a master contract.
The county is not prohibited from accepting qualifications more frequently or on an ongoing or
rolling basis.
    Subd. 5. Construction services bidding. The county shall request bids for construction services
for any project using job order contracting from qualified contractors as follows:
    (1) for projects up to a maximum cost of $50,000, the county shall request a minimum of two
bids;
    (2) for projects with a cost greater than $50,000, but less than or equal to $100,000, the county
shall request a minimum of three bids; and
    (3) for projects with a cost greater than $100,000, but less than or equal to $250,000, the county
shall request a minimum of four bids.
     Subd. 6. Qualified contractor selection. The county shall select the contractor who submits
the lowest price bid for the construction services proposed. At the discretion of the county, any or
all bids may be rejected if it is determined to be in the best interest of the county.
    Subd. 7. Reasonable distribution of bid requests among qualified contractors. The county,
in requesting bidding for projects using job order contracting as described in this section, shall
develop a system to ensure a reasonable opportunity for all qualified contractors to periodically bid
on construction services.
   Subd. 8. Expiration. The authority to enter into new contracts under this section expires on
December 31, 2019.
    Subd. 9. Reporting. Hennepin County must provide reports to the chairs of the committees in
the senate and the house of representatives that have jurisdiction over local government operations,
describing the uses of the authority provided in this section. Uses of the authority described in the
reports may include identifying the total number of projects where this procurement method was
used, the total number of contractors qualified by the county, and the total annual expenditures for
projects under this section. The first report must be made by January 15, 2018, and subsequent
reports must be made on January 15 of each subsequent even-numbered year.
  5R
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  Repealed Minnesota Statutes: 26-06400
    473.551 DEFINITIONS.
    Subdivision 1. Terms. For the purposes of sections 473.551 to 473.599, the following terms
shall have the meanings given in this section.
    Subd. 2. Cities. "Cities" means the cities of Minneapolis, Bloomington, and Richfield.
    Subd. 3. Commission. "Commission" means the Metropolitan Sports Facilities Commission.
   Subd. 4. Metrodome debt service. "Metrodome debt service" means the principal and interest
due each year on all bonds or revenue anticipation certificates issued by the council under section
473.581.
    Subd. 5. Metropolitan sports area. "Metropolitan sports area" means the real estate in the city
of Bloomington described in the ownership and operations agreement, and all buildings, structures,
improvements and equipment thereon including the met center, owned by the cities on May 17,
1977, the date of enactment of sections 473.551 to 473.595, and since transferred to the commission
pursuant to sections 473.551 to 473.595.
    Subd. 6. Metropolitan Sports Area Commission. "Metropolitan Sports Area Commission"
means that commission established by an ownership and operations agreement made and entered
into as of August 13, 1954, validated by Laws 1955, Chapter 445, to which the cities were parties
on May 17, 1977.
    Subd. 7. Multipurpose sports facility. "Multipurpose sports facility" means a single unit sports
facility suitable for university or major league professional baseball, football, and soccer.
    Subd. 8. Sports facility or sports facilities. "Sports facility" or "sports facilities" means real
or personal property comprising a stadium, stadiums, or arenas suitable for university or major
league professional baseball, for university or major league professional football and soccer, or for
both, or for university or major league hockey or basketball, or for both, together with adjacent
parking facilities, including on the effective date of Laws 1994, chapter 648, the metrodome, the
met center, and, upon acquisition by the commission, the basketball and hockey arena.
    Subd. 9. Metrodome. "Metrodome" means the Hubert H. Humphrey Metrodome located in the
city of Minneapolis constructed and owned by the commission and financed by the bonds of the
council issued pursuant to sections 473.551 to 473.595, including all real estate, buildings,
improvements, and equipment in and on them.
    Subd. 10. Basketball and hockey arena. "Basketball and hockey arena" means the indoor
arena building currently occupied and utilized for the playing of university or major league basketball,
hockey, and other purposes located in the city of Minneapolis, including all improvements and
equipment in the arena and the leasehold or other interest in the arena land appurtenant to the arena,
but excluding the health club.
    Subd. 11. Health club. "Health club" means that separate portion of the basketball and hockey
arena building occupied and utilized by a private sports and health club on the effective date of
Laws 1994, chapter 648, the improvements and equipment in and on it, and the leasehold or other
interest in the arena land appurtenant to it.
   Subd. 12. Met Center. "Met Center" means the real estate in the city of Bloomington presently
owned by the commission, formerly utilized for major league hockey, and all buildings,
improvements, and equipment in and on it.
   Subd. 13. Development agreement. "Development agreement" means the second amended
and restated development agreement among the Minneapolis Community Development Agency,
Northwest Racquet, Swim & Health Clubs, Inc., and the city of Minneapolis dated August 5, 1988,
and as amended before the effective date of Laws 1994, chapter 648.
    Subd. 14. Ground lease. "Ground lease" means the ground lease of the arena land between the
Minneapolis Community Development Agency and Northwest Racquet, Swim & Health Clubs,
Inc., dated August 5, 1988, and as amended before the effective date of Laws 1994, chapter 648.
    Subd. 15. Guarantors. "Guarantors" means the individuals who have guaranteed to the
Minneapolis Community Development Agency and the city of Minneapolis the performance of the
development agreement, ground lease, and certain other obligations pursuant to written guaranty
dated February 17, 1988.
    Subd. 16. Arena land. "Arena land" means the real estate upon which the basketball and hockey
arena and health club have been constructed and any adjacent parcel or parcels which are owned
  6R
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  Repealed Minnesota Statutes: 26-06400
by the city of Minneapolis and subject to the development agreement or the ground lease and all
rights, privileges, and easements appertaining to it.
    Subd. 17. Basketball and hockey arena debt service. "Basketball and hockey arena debt
service" means the principal and interest due each year on all bonds or revenue anticipation
certificates issued by the council under section 473.599.
    473.552 LEGISLATIVE POLICY; PURPOSE.
    The legislature finds that
   (a) the population in the metropolitan area has a need for sports facilities and that this need
cannot be met adequately by the activities of individual municipalities, by agreements among
municipalities, or by the private efforts of the people in the metropolitan area,
    (b) the commission's ownership and operation of the metrodome and met center has met in part
the foregoing need and has promoted the economic and social interests of the metropolitan area, of
the state, and of the public, and
   (c) the commission's acquisition of the basketball and hockey arena on the terms and conditions
provided in sections 473.598 and 473.599 shall similarly and more fully meet the foregoing needs
and promote these interests.
    It is therefore necessary for the public health, safety and general welfare to establish a procedure
for the acquisition and betterment of sports facilities and to create a Metropolitan Sports Facilities
Commission.
    473.553 COMMISSION; MEMBERSHIP; ADMINISTRATION.
    Subdivision 1. General. The Metropolitan Sports Facilities Commission is established and shall
be organized, structured, and administered as provided in this section.
    Subd. 2. Membership. The commission shall consist of six members, appointed by the city
council of the city in which the stadium is located plus a chair appointed as provided in subdivision
3.
    Subd. 3. Chair. The chair shall be appointed by the governor as the ninth voting member and
shall meet all of the qualifications of a member, except the chair need only reside outside the city
of Minneapolis. The chair shall preside at all meetings of the commission, if present, and shall
perform all other duties and functions assigned by the commission or by law. The commission may
appoint from among its members a vice-chair to act for the chair during temporary absence or
disability.
    Subd. 4. Qualifications. A member shall not during a term of office hold the office of
Metropolitan Council member or be a member of another metropolitan agency or hold any judicial
office or office of state government. None of the members appointed by the city council of the city
in which the stadium is located shall be an elected public official of that city or of another political
subdivision any part of whose territory is shared with that city. Each member shall qualify by taking
and subscribing the oath of office prescribed by the Minnesota Constitution, article V, section 6.
The oath, duly certified by the official administering it, shall be filed with the chair of the
Metropolitan Council.
    Subd. 5. Terms. The terms of three members shall end the first Monday in January in the year
ending in the numeral "5." The terms of the other members and the chair shall end the first Monday
in January in the year ending in the numeral "7." The term of each member and the chair shall be
four years. The terms shall continue until a successor is appointed and qualified. Members may be
removed only for cause.
    Subd. 6. Vacancies. A vacancy shall be filled by the appointing authority in the same manner
in which the original appointment was made.
    Subd. 7. Compensation. Each commission member shall be paid $50 for each day when the
member attends one or more meetings or provides other services, as authorized by the commission,
and shall be reimbursed for all actual and necessary expenses incurred in the performance of duties.
The chair of the Metropolitan Sports Facilities Commission shall receive, unless otherwise provided
by other law, a salary in an amount fixed by the members of the commission and shall be reimbursed
for reasonable expenses to the same extent as a member. The annual budget of each commission
shall provide as a separate account anticipated expenditures for per diem, travel, and associated
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  Repealed Minnesota Statutes: 26-06400
expenses for the chair and members, and compensation or reimbursement shall be made to the chair
and members only when budgeted.
    Subd. 8. Regular and special meetings. The commission shall meet regularly at least once
each month, at such time and place as the commission shall by resolution designate. Special meetings
may be held at any time upon the call of the chair or a majority of the members, upon written notice
to each member at least three days prior to the meeting, or upon such other notice as the commission
may by resolution provide. Unless otherwise provided, any action within the authority of the
commission may be taken by the affirmative vote of a majority of the members. A majority of all
of the members of the commission shall constitute a quorum, but a lesser number may meet and
adjourn from time to time and compel the attendance of absent members.
    Subd. 9. Personnel code; merit system. (a) The council shall by resolution adopt guidelines
for a personnel code relating to the employees of the commission, except that nothing in Laws
1974, chapter 422, shall impair the rights of the commission or employee under sections 473.405
and 473.415. After adoption of the guidelines, the commission shall by resolution adopt a personnel
code in general conformance therewith. The code shall include a job classification plan, procedures
for employment and promotion of personnel based on merit, procedures for the demotion, suspension,
or discharge of employees, procedures for hearing grievances, procedures for salary administration,
and such other provisions as the council deems appropriate. In addition, the code shall provide for
the development by the commission of affirmative action plans, as provided in section 473.143.
The executive director of the commission shall administer the code, and the commission shall not
take any action inconsistent with the personnel code.
    (b) When a commission employee has been demoted, suspended, or dismissed by the executive
director, the employee may, within 30 days after such action becomes effective, file with the
commission a written request for a hearing showing the position from which the employee was
dismissed, the date of dismissal, and the reason for requesting the hearing, full name and present
mailing address. Upon receipt of a request for a hearing the commission shall appoint three of its
members to act as an appeal committee and preside at a hearing on the action of the executive
director. The hearing shall be held within 30 days after the request is received by the commission,
upon written notice mailed or delivered to the employee at the employee's present mailing address,
not less than seven days before the hearing. The appeal committee shall approve or disapprove the
action of the executive director, and in the case of approval the action of the executive director shall
be final. In the case of disapproval the appeal committee may reinstate the employee under such
conditions as it deems proper, and may order the payment to the employee of compensation lost as
a result of the demotion, suspension or dismissal.
    Subd. 10. Secretary and treasurer. At its first regular meeting each year the commission shall
appoint a secretary and a treasurer or, in the alternative, a secretary-treasurer. The secretary and
treasurer, or secretary-treasurer, may, but need not be, members of the commission, and shall hold
office at the pleasure of the commission, subject to the terms of any contract of employment which
the commission may enter into with the secretary or treasurer. The secretary shall record the minutes
of all meetings of the commission and shall be the custodian of all books and records of the
commission except such as the commission shall entrust to the custody of a designated employee.
The treasurer shall be the custodian of all moneys received by the commission except such as the
commission shall entrust to the custody of a designated employee. The commission may appoint a
deputy to perform any and all functions of either the secretary or the treasurer.
    Subd. 11. Executive director. The chair of the commission shall, subject to the approval of the
commission, appoint an executive director who shall be chosen solely on the basis of training,
experience, and other qualifications, and who shall serve at the pleasure of the commission. The
executive director shall attend meetings of the commission, but shall not vote, and shall have the
following powers and duties:
    (a) See that all resolutions, rules, or orders of the commission are enforced.
    (b) Appoint and remove, subject to the provisions of the personnel code adopted pursuant to
subdivision 9, upon the basis of merit and fitness, all subordinate officers and regular employees
of the commission.
    (c) Present to the commission plans, studies, and reports prepared for commission purposes and
recommend to the commission for adoption such measures as the executive director deems necessary
to enforce or carry out the powers and duties of the commission, or to the efficient administration
of the affairs of the commission.
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  Repealed Minnesota Statutes: 26-06400
    (d) Keep the commission fully advised as to its financial condition, and prepare and submit to
the commission its annual budget and such other financial information as it may request.
   (e) Recommend to the commission for adoption such rules as the executive director deems
necessary for the efficient operation of the commission's functions.
   (f) Perform such other duties as may be prescribed by the commission.
    Subd. 12. Commission operating procedures. (a) The commission shall adopt resolutions and
bylaws, an administrative code establishing procedures for commission action, keeping records,
approving claims, authorizing and making disbursements, authorizing contracts, safekeeping funds
and audit of all financial operations of the commission.
    (b) The commission and the council may enter into contracts with each other and with other
commissions and governmental units for the joint exercise of powers in the manner provided by
section 471.59; provided that the commission shall not enter into any contract with the council
which would assign any operations authority, responsibility or function, other than planning or
making studies, from the commission to the council.
    Subd. 13. Relocation payment standards. In all acquisitions the commission shall provide as
a cost of acquisition the relocation assistance, services, payments and benefits required by the
Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 84 Stat. 1894
(1971), United States Code, title 42, section 4601, et seq.
   473.556 POWERS OF COMMISSION.
    Subdivision 1. General. The commission shall have all powers necessary or convenient to
discharge the duties imposed by law, including but not limited to those specified in this section.
   Subd. 2. Actions. The commission may sue and be sued, and shall be a public body within the
meaning of chapter 562.
    Subd. 3. Acquisition of property. The commission may acquire by lease, purchase, gift, or
devise all necessary right, title, and interest in and to real or personal property deemed necessary
to the purposes contemplated by sections 473.551 to 473.599 within the limits of the metropolitan
area.
     Subd. 4. Exemption of property. Any real or personal property acquired, owned, leased,
controlled, used, or occupied by the commission for any of the purposes of sections 473.551 to
473.599 is declared to be acquired, owned, leased, controlled, used and occupied for public,
governmental, and municipal purposes, and shall be exempt from ad valorem taxation by the state
or any political subdivision of the state, provided that such properties shall be subject to special
assessments levied by a political subdivision for a local improvement in amounts proportionate to
and not exceeding the special benefit received by the properties from the improvement. No possible
use of any such properties in any manner different from their use under sections 473.551 to 473.599
at the time shall be considered in determining the special benefit received by the properties. All
assessments shall be subject to final confirmation by the council, whose determination of the benefits
shall be conclusive upon the political subdivision levying the assessment. Notwithstanding the
provisions of section 272.01, subdivision 2, or 273.19, real or personal property leased by the
commission to another person for uses related to the purposes of sections 473.551 to 473.599,
including the operation of the metrodome, met center, and, if acquired by the commission, the
basketball and hockey arena shall be exempt from taxation regardless of the length of the lease.
The provisions of this subdivision, insofar as they require exemption or special treatment, shall not
apply to any real property comprising the met center which is leased by the commission for
residential, business, or commercial development or other purposes different from those contemplated
in sections 473.551 to 473.599.
   Subd. 5. Facility operation. The commission may equip, improve, operate, manage, maintain,
and control the Metrodome, Met Center, basketball and hockey arena and sports facilities constructed,
remodeled, or acquired under the provisions of sections 473.551 to 473.599.
    Subd. 6. Disposition of property. (a) The commission may sell, lease, or otherwise dispose of
any real or personal property acquired by it which is no longer required for accomplishment of its
purposes. The property shall be sold in accordance with the procedures provided by section 469.065,
insofar as practical and consistent with sections 473.551 to 473.599.
    (b) The proceeds from the sale of any real property at the metropolitan sports area shall be paid
to the council and used for debt service or retirement.
  9R
  APPENDIX
  Repealed Minnesota Statutes: 26-06400
    Subd. 7. Contracts. The commission may contract for materials, supplies, and equipment in
accordance with section 471.345, except that the commission may employ persons, firms, or
corporations to perform one or more or all of the functions of architect, engineer, construction
manager, or contractor for both design and construction, with respect to all or any part of a project
to build or remodel sports facilities. Contractors shall be selected through the process of public
bidding, provided that it shall be permissible for the commission to narrow the listing of eligible
bidders to those which the commission determines to possess sufficient expertise to perform the
intended functions. Any construction manager or contractor shall certify, before the contracts are
finally signed, a construction price and completion date to the commission and shall post a bond
in an amount at least equal to 100 percent of the certified price, to cover any costs which may be
incurred over and above the certified price, including but not limited to costs incurred by the
commission or loss of revenues resulting from incomplete construction on the completion date.
The commission shall secure surety bonds as required in section 574.26, securing payment of just
claims in connection with all public work undertaken by it. Persons entitled to the protection of the
bonds may enforce them as provided in sections 574.28 to 574.32, and shall not be entitled to a lien
on any property of the commission under the provisions of sections 514.01 to 514.16.
    Subd. 8. Employees; contracts for services. The commission may employ persons and contract
for services necessary to carry out its functions. The commission may employ on such terms as it
deems advisable persons or firms for the purpose of providing traffic officers to direct traffic on
property under the control of the commission and on the city streets in the general area of the
property controlled by the commission. The traffic officers shall not be peace officers and shall not
have authority to make arrests for violations of traffic rules.
    Subd. 9. Gifts and grants. The commission may accept gifts of money, property, or services,
may apply for and accept grants or loans of money or other property from the United States, the
state, any subdivision of the state, or any person for any of its purposes, may enter into any agreement
required in connection therewith, and may hold, use, and dispose of such money, property, or
services in accordance with the terms of the gift, grant, loan or agreement relating thereto. Except
for the acquisition, clearance, relocation, and legal costs referred to in section 473.581, subdivision
3, clauses (d) and (e), the commission shall not accept gifts, grants, or loans valued in excess of
$2,000,000 without the prior approval of the council. In evaluating proposed gifts, grants, loans,
and agreements required in connection therewith, the council shall examine the possible short-range
and long-range impact on commission revenues and commission operating expenditures.
    Subd. 10. Research. The commission may conduct research studies and programs, collect and
analyze data, prepare reports, maps, charts, and tables, and conduct all necessary hearings and
investigations in connection with its functions.
   Subd. 11. Agreements with university. The commission and the Board of Regents of the
University of Minnesota may enter into agreements and do all other acts necessary to further the
functions prescribed in sections 473.551 to 473.599.
    Subd. 12. Use agreements. The commission may lease, license, or enter into agreements and
may fix, alter, charge, and collect rentals, fees, and charges to all persons for the use, occupation,
and availability of part or all of any premises, property, or facilities under its ownership, operation,
or control for purposes that will provide athletic, educational, cultural, commercial or other
entertainment, instruction, or activity for the citizens of the metropolitan area. Any such use
agreement may provide that the other contracting party shall have exclusive use of the premises at
the times agreed upon.
    Subd. 13. Insurance. The commission may require any employee to obtain and file with it an
individual bond or fidelity insurance policy. It may procure insurance in the amounts it deems
necessary against liability of the commission or its officers and employees for personal injury or
death and property damage or destruction, with the force and effect stated in chapter 466, and against
risks of damage to or destruction of any of its facilities, equipment, or other property.
    Subd. 14. Small business contracts. In exercising its powers to contract for the purchase of
services, materials, supplies, and equipment, pursuant to subdivisions 5, 7, 8 and 10, the commission
shall designate and set aside each fiscal year for awarding to small businesses approximately ten
percent of the value of anticipated contracts and subcontracts of that kind for that year, in the manner
required of the commissioner of administration for state procurement contracts pursuant to sections
16C.16 to 16C.19. The commission shall follow the rules promulgated by the commissioner of
administration pursuant to section 16C.19, and shall submit reports of the kinds required of the
commissioners of administration and economic development by section 16C.18.
  10R
  APPENDIX
  Repealed Minnesota Statutes: 26-06400
    Subd. 16. Agreements with Amateur Sports Commission. (a) The commission and the
Minnesota Amateur Sports Commission created pursuant to chapter 240A may enter into long-term
leases, use or other agreements for the conduct of amateur sports activities at the basketball and
hockey arena, and the net revenues from the activities may be pledged for basketball and hockey
arena debt service. The commission, with the advice of the Minnesota Amateur Sports Commission,
shall establish standards to provide reasonable assurances to other public bodies owning or operating
an entertainment or sports complex or indoor sports arena in the metropolitan area that the agreements
between the commission and the Minnesota Amateur Sports Commission with respect to the
basketball and hockey arena shall not remove the conduct of amateur sports activities currently and
traditionally held at such facilities.
  (b) Any long-term lease, use, or other agreement entered into by the Minnesota Amateur Sports
Commission with the commission under paragraph (a) must also:
    (1) provide for a release of the Minnesota Amateur Sports Commission from its commitment
under the agreement if the legislature repeals or amends a standing appropriation or otherwise does
not appropriate sufficient money to fund the lease or agreement to the Minnesota Amateur Sports
Commission; and
   (2) provide for a release of the Minnesota Amateur Sports Commission from its commitment
under the agreement and permit it to agree to a per event use fee when the bonds issued for the
metrodome under section 473.581 have been retired.
   (c) No long-term lease, use, or other agreement entered into by the Minnesota Amateur Sports
Commission under paragraph (a) may commit the amateur sports commission to paying more than
$750,000 per year.
    (d) Any long-term lease, use, or other agreement entered into under paragraph (a) shall provide
that the Minnesota Amateur Sports Commission shall be entitled to use of the basketball and hockey
arena for 50 event days per year. In addition, any long-term lease, use, or other agreement entered
into under paragraph (a) shall permit the Minnesota Amateur Sports Commission to allow another
person or organization to use one or more of its days.
    Subd. 17. Creating a condominium. The commission may, by itself or together with the
Minneapolis Community Development Agency and any other person, as to real or personal property
comprising or appurtenant or ancillary to the basketball and hockey arena and the health club, act
as a declarant and establish a condominium or leasehold condominium under chapter 515A or a
common interest community or leasehold common interest community under chapter 515B, and
may grant, establish, create, or join in other or related easements, agreements and similar benefits
and burdens that the commission may deem necessary or appropriate, and exercise any and all rights
and privileges and assume obligations under them as a declarant, unit owner or otherwise, insofar
as practical and consistent with sections 473.551 to 473.599. The commission may be a member
of an association and the chair, any commissioners and any officers and employees of the commission
may serve on the board of an association under chapter 515A or 515B.
    473.561 EXEMPTION FROM COUNCIL REVIEW.
    The acquisition and betterment of sports facilities by the commission shall be conducted pursuant
to sections 473.551 to 473.599 and shall not be affected by the provisions of sections 473.165 and
473.173.
    473.564 METROPOLITAN SPORTS AREA.
    Subd. 2. Assumption of obligations. Nothing herein shall be construed as imposing upon the
council or commission an obligation to compensate the cities or the metropolitan sports area
commission for all or any part of the metropolitan sports area or to continue to operate and maintain
the metropolitan sports area facilities taken over by the commission.
    Subd. 3. Employees. Upon transfer of ownership all persons then employed by the metropolitan
sports area commission shall be transferred to the metropolitan sports facilities commission without
loss of right or privilege. Nothing in this section shall be construed to give any such person the right
or privilege to continue in the same level or classification of employment previously held. The
metropolitan sports facilities commission may assign any such person to an employment level and
classification which it deems appropriate and desirable in accordance with its personnel code.
  11R
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  Repealed Minnesota Statutes: 26-06400
   473.565 POST 1977 SERVICE IN MSRS; EXCEPTIONS.
    Subdivision 1. In MSRS; exceptions. All employees of the commission shall be members of
the Minnesota State Retirement System with respect to service rendered on or after May 17, 1977,
except as provided in this section.
    Subd. 2. Temporary and part-time employees. Temporary employees hired for a period of
less than six months and part-time employees hired to work less than 30 hours per week shall be
excluded from membership in the retirement system if the commission certifies them to the executive
director of the retirement system as being temporary or part-time employees.
    Subd. 3. PERA election. Any employee of the commission who was an employee of the
Metropolitan Sports Area Commission on May 17, 1977, and who was a member of the Public
Employees Retirement Association on account of that employment may elect no later than 30 days
following transfer of employment to the commission to remain a member of the Public Employees
Retirement Association. The election shall be made on forms provided by the commission, and the
commission shall give immediate notice of any such elections to the executive directors of the
Public Employees Retirement Association and the Minnesota State Retirement System. Any person
who makes such an election shall be excluded from membership in the Minnesota State Retirement
System with respect to employment by the commission. The commission shall make the required
employer contributions to the Public Employees Retirement Association.
    Subd. 4. Retroactive pay, inclusion. Any permanent full-time employee of the commission
who was a permanent full-time employee of the Metropolitan Sports Area Commission on May
17, 1977, for whom the prior employment was not covered by the Public Employees Retirement
Association, may obtain allowable service credit in the Minnesota State Retirement System by
paying to the retirement system (a) an amount equal to four percent of current salary rate multiplied
by the days and months of such prior service for which the employee desires to obtain allowable
service credit plus (b) a matching amount representing the employer's required contributions, except
that the commission may agree to pay the matching amount on behalf of its employees. Proof of
prior permanent full-time service and the duration thereof shall be established by the certification
of the commission to the executive director of the retirement system. The payments shall be made
either in a lump sum or by payroll deduction arranged for on or before July 1, 1978.
   473.572 REVISED FINAL DETERMINATION.
    Subdivision 1. Determinations before bonds. The council shall make all determinations required
by sections 473.581, subdivision 3, and 473.599 before it authorizes the issuance of bonds.
    Subd. 2. Self-supporting effort. It is the intent of the legislature that the commission shall, to
the maximum extent possible consistent with the provisions of section 473.581, subdivision 3,
impose rates, rentals and other charges in the operation of the metrodome which will make the
metrodome self supporting so that the taxes imposed under section 473.592 for the metrodome will
be at the lowest possible rate consistent with the obligations of the city of Minneapolis as provided
in sections 473.551 to 473.595.
   473.581 DEBT OBLIGATIONS.
   Subdivision 1. Bonds. The council may by resolution authorize the sale and issuance of its
bonds for any or all of the following purposes:
   (a) To provide funds for the acquisition or betterment of the Metrodome by the commission
pursuant to sections 473.551 to 473.595;
   (b) To refund bonds issued hereunder; and
   (c) To fund judgments entered by any court against the commission or against the council in
matters relating to the commission's functions related to the Metrodome and the Met Center.
     Subd. 2. Procedure. The bonds shall be sold, issued, and secured in the manner provided in
chapter 475 for bonds payable solely from revenues, except as otherwise provided in sections
473.551 to 473.595, and the council shall have the same powers and duties as a municipality and
its governing body in issuing bonds under that chapter. The bonds may be sold at any price and at
public or private sale as determined by the council. They shall be payable solely from tax and other
revenues referred to in sections 473.551 to 473.595, excepting only the admissions tax and surcharge
related to the basketball and hockey arena provided in section 473.595, subdivision 1a, the taxes
for the basketball and hockey arena provided in section 473.592, and other revenues attributable
to the basketball and hockey arena. The bonds shall not be a general obligation or debt of the council
or of the commission, and shall not be included in the net debt of any city, county, or other
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subdivision of the state for the purpose of any net debt limitation, provided that nothing herein shall
affect the obligation of the city of Minneapolis to levy a tax pursuant to agreements made under
the provisions of section 473.592. No election shall be required. The principal amount shall not be
limited except as provided in subdivision 3.
    Subd. 3. Limitations. The principal amount of the bonds issued pursuant to subdivision 1,
clause (a), shall not exceed the amounts hereinafter authorized. If the commission's proposal and
the construction contracts referred to in clause (g) of this subdivision provide for the construction
of a covered multipurpose sports facility, the total cost of constructing the facility under the
construction contracts, not including costs paid from funds provided by others, and the principal
amount of bonds issued pursuant to subdivision 1, clause (a), shall be limited to $55,000,000. If
the commission's proposal and the construction contracts do not provide for the construction of a
cover on a proposed multipurpose sports facility and the commission does not otherwise contract
for the construction or acquisition of a cover for the sports facility, the principal amount shall be
limited to $42,000,000. If the commission's proposal and the construction contracts provide for the
construction of a new sports facility for football and soccer and for remodeling the existing
metropolitan stadium for baseball, the principal amount shall be limited to $37,500,000. If the
commission's proposal and the construction contracts provide for the reconstruction and remodeling
of the existing Metropolitan Stadium as an uncovered multipurpose sports facility, the principal
amount shall be limited to $25,000,000. The bonds issued pursuant to subdivision 1, clause (a),
shall bear an average annual rate of interest, including discount, not in excess of 7-1/2 percent. The
proceeds of the bonds issued pursuant to subdivision 1, clause (a), shall be used only for the
acquisition and betterment of sports facilities suitable for baseball, football and soccer, with a seating
capacity for football and soccer of approximately 65,000 persons. The council shall issue its bonds
and construction of sports facilities may commence when the council has made the following
determinations:
    (a) The commission has executed agreements with major league professional baseball and
football organizations to use the Metrodome for all scheduled regular season home games and
play-off home games and, in the case of the football organization, for at least one-half of its exhibition
games played each season. The agreements shall be for a period of not more than 30 years nor less
than the term of the longest term bonds that in the council's judgment it may find it necessary to
issue to finance the acquisition and betterment of the Metrodome. The agreements may contain
provisions negotiated between the organizations and the commission which provide for termination
upon conditions related and limited to the bankruptcy, insolvency, or financial capability of the
organization. The agreements shall provide that, in the event of breach of the agreements, the
defaulting organization shall pay damages annually to the commission. The annual payment shall
be in an amount equal to the annual average of all revenue derived by the commission from
attendance at events and activities of the defaulting organization during the years prior to default,
provided that the damages shall not exceed in any year an amount sufficient, with other revenues
of the commission but excluding proceeds of the taxes under section 473.592, to pay all expenses
of operation, maintenance, administration, and debt service for the use of the Metrodome by the
defaulting organization during the same year. The damages shall be payable during the period from
the occurrence of the default to the date on which another major league professional baseball or
football organization, replacing the defaulting organization, enters into a use agreement with the
commission for not less than the then remaining term of the original agreement. The agreements
with the teams shall provide that no closed circuit or pay television broadcasting of events in the
Metrodome may be allowed without the approval of the commission. The agreements shall include
provisions protecting the commission and the council in the event of change in ownership of the
professional teams.
    (b) The commission has executed agreements with professional baseball and football major
leagues which guarantee the continuance of franchises in the metropolitan area for the period of
the agreements referred to in clause (a).
   (c) The proceeds of bonds provided for in this subdivision will be sufficient, together with other
capital funds that may be available to the commission for expenditures on the Metrodome, to
construct or remodel and to furnish the Metrodome proposed by the commission, including the
appropriate professional fees and charges but excluding, except as otherwise provided in this
subdivision, the acquisition, clearance, relocation, and legal costs referred to in clauses (d) and (e).
    (d) The commission has acquired, without cost to the commission or the council except as
provided in this subdivision, title to all real property including all easements and other appurtenances
needed for the construction and operation of the Metrodome or has received a grant of funds or has
entered into an agreement or agreements sufficient in the judgment of the council to assure the
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receipt of funds, at the time and in the amount required, to make any payment upon which the
commission's acquisition of title and possession of the real property is conditioned.
    (e) The commission has received a grant of funds or entered into an agreement or agreements
sufficient in the judgment of the council to assure the receipt of funds, at the time and in the amount
required, to pay all costs, except as provided in this subdivision, of clearing the real property needed
for the construction and operation of the Metrodome of all buildings, railroad tracks and other
structures, including without limitation all relocation costs, all utility relocation costs, and all legal
costs.
    (f) The commission has executed agreements with appropriate labor organizations and
construction contractors which provide that no labor strike or management lockout will halt, delay
or impede construction.
    (g) The commission has executed agreements which will provide for the construction of the
Metrodome for a certified construction price and completion date and which include performance
bonds in an amount at least equal to 100 percent of the certified price to cover any costs which may
be incurred over and above the certified price, including but not limited to costs incurred by the
commission or loss of revenues resulting from incomplete construction on the completion date.
    (h) The environmental impact statement for the Metrodome has been accepted by the
Environmental Quality Board, and the Pollution Control Agency and any other department, agency,
or unit of government have taken the actions necessary to permit the construction of the Metrodome.
   (i) At least 50 percent of the private boxes provided for in the commission's proposal for the
Metrodome are sold or leased for at least five years.
    (j) The anticipated revenue from the operation of the Metrodome plus any additional available
revenue of the commission and the revenue from the taxes under section 473.592 will be an amount
sufficient to pay when due all debt service plus all administration, operating and maintenance
expense.
    (k) The commission has studied and considered the needs of the University of Minnesota for
athletic facilities for a prospective 20 year period.
    (l) The city of Minneapolis has entered into an agreement as contemplated in section 473.592
as security for the Metrodome debt service.
     (m) The commission has entered into an agreement or agreements with a purchaser or purchasers
of tickets of admission for a period of not less than 20 years which will assure that whenever more
than 90 and less than 100 percent of the tickets of admission for seats at any professional football
game, which were available for purchase by the general public 120 hours or more before the
scheduled beginning time of the game either at the Metrodome where the game is to be played or
at the box office closest to the Metrodome, have been purchased 72 hours or more before the
beginning time of the game, then all of such tickets which remain unsold will be purchased in
sufficient time to permit the telecast to areas within the state which otherwise would not receive
the telecast because of the terms of an agreement in which the professional football league has sold
or otherwise transferred all or part of the rights of the league's member organizations in the sponsored
telecasting of games of the organizations. The party or parties agreeing to the purchase of such
unsold tickets shall be obligated for a period of at least 20 years in an amount determined by the
council to be sufficient to assure the purchase of all such unsold tickets.
    (n) The council has entered into an agreement with the brokerage firm or brokerage firms to be
used in connection with the issuance and sale of the bonds guaranteeing that fees and charges
payable to the brokerage firm or firms in connection therewith, including any underwriting discounts,
shall not exceed fees and charges customarily payable in connection with the issuance and sale of
bonds secured by the pledge of the full faith and credit of the city of Minneapolis.
    The validity of any bonds issued under subdivision 1, clause (a), and the obligations of the
council and commission related thereto, shall not be conditioned upon or impaired by the council's
determinations made pursuant to this subdivision. For purposes of issuing the bonds the
determinations made by the council shall be deemed conclusive, and the council shall be and remain
obligated for the security and payment of the bonds irrespective of determinations which may be
erroneous, inaccurate, or otherwise mistaken.
    Subd. 4. Security. To the extent and in the manner provided in sections 473.592 and 473.595,
the taxes described in section 473.592 for the Metrodome, the tax and other revenues of the
commission described in section 473.595, subdivision 1, and any other revenues of the commission
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attributable to the Metrodome shall be and remain pledged and appropriated for the payment of all
necessary and reasonable expenses of the operation, administration, maintenance, and debt service
of the Metrodome until all bonds and certificates issued pursuant to this section are fully paid or
discharged in accordance with law. Bonds issued pursuant to this section may be secured by a bond
resolution, or by a trust indenture entered into by the council with a corporate trustee within or
outside the state, which shall define the tax and other Metrodome and Met Center revenues pledged
for the payment and security of the bonds. The pledge shall be a valid charge on the tax and other
revenues referred to in sections 473.551 to 473.595 (excepting only the admissions tax and surcharge
related to the basketball and hockey arena provided in section 473.595, subdivision 1a, taxes
described in section 473.592 for the basketball and hockey arena, and other revenues attributable
to the basketball and hockey arena) from the date when bonds are first issued or secured under the
resolution or indenture and shall secure the payment of principal and interest and redemption
premiums when due and the maintenance at all times of a reserve securing such payments. No
mortgage of or security interest in any tangible real or personal property shall be granted to the
bondholders or the trustee, but they shall have a valid security interest in all tax and other revenues
received and accounts receivable by the commission or council hereunder, as against the claims of
all other persons in tort, contract, or otherwise, irrespective of whether such parties have notice
thereof, and without possession or filing as provided in the Uniform Commercial Code or any other
law. In the bond resolution or trust indenture the council may make such covenants, which shall be
binding upon the commission, as are determined to be usual and reasonably necessary for the
protection of the bondholders. No pledge, mortgage, covenant, or agreement securing bonds may
be impaired, revoked, or amended by law or by action of the council, commission, or city, except
in accordance with the terms of the resolution or indenture under which the bonds are issued, until
the obligations of the council thereunder are fully discharged.
    Subd. 5. Revenue anticipation certificates. At any time or times after approval by the council
and final adoption by the commission of an annual budget of the commission for operation,
administration, and maintenance of the Metrodome, and in anticipation of the proceeds from the
taxes under section 473.592 for the Metrodome and the revenues of the commission provided for
in the budget, but subject to any limitation or prohibition in a bond resolution or indenture, the
council may authorize the issuance, negotiation, and sale, in such form and manner and upon such
terms as it may determine, of revenue anticipation certificates. The principal amount of the certificates
outstanding shall at no time exceed 25 percent of the total amount of the tax and other revenues
anticipated. The certificates shall mature not later than three months after the close of the budget
year. Prior to the approval and final adoption of the first annual budget of the commission, the
council may authorize up to $300,000 in revenue anticipation certificates under this subdivision.
So much of the anticipated tax and other revenues as may be needed for the payment of the
certificates and interest thereon shall be paid into a special debt service fund established for the
certificates in the council's financial records. If for any reason the anticipated tax and other revenues
are insufficient, the certificates and interest shall be paid from the first tax and other revenues
received, subject to any limitation or prohibition in a bond resolution or indenture. The proceeds
of the certificates may be used for any purpose for which the anticipated revenues or taxes may be
used or for any purpose for which bond proceeds under subdivision 1 may be used, provided that
the proceeds of certificates issued after May 26, 1979, shall not be used to pay capital costs of the
Metrodome constructed or remodeled pursuant to sections 473.551 to 473.595.
    473.592 TAX REVENUES.
   Subdivision 1. Local sales tax. The city of Minneapolis may enter into agreements with the
Metropolitan Council and the commission which requires the municipality to impose a sales tax,
supplemental to the general sales tax imposed in chapter 297A, for the purposes and in accordance
with the requirements specified in sections 473.551 to 473.599. The tax may be imposed:
   (a) on the gross receipts from all retail on-sales of intoxicating liquor and fermented malt
beverages when sold at licensed on-sale liquor establishments and municipal liquor stores located
within the municipality,
    (b) notwithstanding any limitations of Laws 1986, chapter 396, section 5, clause (2), on the
gross receipts from the furnishing for consideration of lodging for a period of less than 30 days at
a hotel, motel, rooming house, tourist court, or trailer camp located within the municipality,
    (c) on the gross receipts on all sales of food primarily for consumption on or off the premises
by restaurants and places of refreshment as defined by resolution of the city, or
    (d) on any one or combination of the foregoing.
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    A tax under this subdivision shall be imposed only within a downtown taxing area to be
determined by the council.
    The agreement or agreements between the city, the Metropolitan Council, and the commission
shall require the municipality to impose the tax or taxes at whatever rate or rates may be necessary
to produce revenues which are determined by the council from year to year to be required, together
with the revenues available to the commission, to pay when due all debt service on bonds and
revenue anticipation certificates issued under section 473.581, all debt service on bonds and revenue
anticipation certificates issued under section 473.599, and all expenses of operation, administration,
and maintenance of the Metrodome and the basketball and hockey arena. When it is determined
that a tax must be imposed under this subdivision after the effective date of Laws 1994, chapter
648, there shall be added to the rate of the tax imposed for the purposes described in the previous
sentence a tax at a rate of 0.25 percent for use by the city to fund recreational facilities and programs
in the city's neighborhoods for children and youth through the Minneapolis Park and Recreation
Board. The agreements shall provide for the suspension, reimposition, reduction, or increase in tax
collections upon determination by the Metropolitan Council that such actions are appropriate or
necessary for the purposes for which the tax is imposed, provided that the balance in each of the
Metrodome debt service and the basketball and hockey arena debt service fund or funds, including
any reserve for debt service, shall be maintained at least at an amount sufficient to pay the principal
and interest on bonds which will become due within the next succeeding one year period and, except
as otherwise provided by agreement, shall not be maintained at an amount greater than that required
to pay principal and interest on bonds which will become due within the next succeeding two-year
period. Once the tax is imposed by the city, the tax imposed for the benefit of the Minneapolis Park
and Recreation Board shall remain in effect at the rate of 0.25 percent until the bonds issued under
section 473.599 have been retired. The agreements shall be executed by the city, after approval by
resolution of the city council and before the issuance of the bonds under section 473.581 and
commencement of construction of the Metrodome or the issuance of bonds under section 473.599
and acquisition of the basketball and hockey arena and shall constitute a contract or contracts with
and for the security of all holders of the bonds and revenue anticipation certificates secured by the
tax. The Metrodome shall not be constructed or remodeled in a municipality which has not entered
into an agreement for the Metrodome in accordance with this section. A basketball and hockey
arena shall not be acquired in the city of Minneapolis unless the city has entered into an agreement
in accordance with this section as security for bonds issued pursuant to section 473.599 and expenses
of operation, administration, and maintenance of the basketball and hockey arena. The tax shall be
reported and paid to the commissioner of revenue with and as part of the state sales and use taxes,
and shall be subject to the same penalties, interest, and enforcement provisions. The collections of
the tax, less refunds and a proportionate share of the costs of collection, shall be remitted at least
quarterly to the Metropolitan Council and the city of Minneapolis for use by the Minneapolis Park
and Recreation Board. The commissioner of revenue shall deduct from the proceeds remitted to
the council and the city an amount that equals the indirect statewide costs as well as the direct and
indirect department costs necessary to administer, audit, and collect this tax. The amount deducted
shall be deposited in the general fund of the state. The proceeds remitted with respect to the
Metrodome shall be placed, together with the net revenues of the commission attributable to the
Metrodome under section 473.595, into the debt service fund or reserve or special funds, established
under section 473.581, and any funds established to secure payment of operating deficits of the
commission arising from its ownership and operation of the Metrodome. The proceeds may be used
for payment of debt service on bonds and revenue anticipation certificates issued under section
473.581, and expenses of operation, administration, and maintenance of the Metrodome. The
proceeds shall not be used for any capital costs of the Metrodome, except that the proceeds may be
used to pay interest on bonds during the construction period.
    The proceeds remitted with respect to the basketball and hockey arena shall be placed, together
with the net revenues of the commission attributable to the basketball and hockey arena under
section 473.595, subdivision 1a, into the debt service fund or reserve or special funds, established
under section 473.599, and any funds established to secure payment of operating deficits of the
commission arising from its acquisition, ownership, operation, or maintenance of the basketball
and hockey arena. The proceeds may be used for payment of debt service on bonds and revenue
anticipation certificates issued under section 473.599, and expenses of operation, administration,
and maintenance of the basketball and hockey arena.
    473.595 COMMISSION FINANCES.
    Subdivision 1. Metrodome admission tax. The commission shall by resolution impose and
maintain a ten percent admission tax upon the granting, issuance, sale, or distribution, by any private
or public person, association, or corporation, of the privilege of admission to activities at the
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Metrodome. No other tax, surcharge, or governmental imposition, except the taxes imposed by
chapter 297A, may be levied by any other unit of government upon any such sale or distribution.
The admission tax shall be stated and charged separately from the sales price so far as practicable
and shall be collected by the grantor, seller, or distributor from the person admitted and shall be a
debt from that person to the grantor, issuer, seller, or distributor, and the tax required to be collected
shall constitute a debt owed by the grantor, issuer, seller, or distributor to the commission, which
shall be recoverable at law in the same manner as other debts. Every person granting, issuing,
selling, or distributing tickets for such admissions may be required, as provided in resolutions of
the commission, to secure a permit, to file returns, to deposit security for the payment of the tax,
and to pay such penalties for nonpayment and interest on late payments, as shall be deemed necessary
or expedient to assure the prompt and uniform collection of the tax.
   Notwithstanding any other provisions of this subdivision, the imposition of an admission tax
upon a national superbowl football game conducted at the Metrodome is discretionary with the
commission.
     Subd. 1a. Arena admission tax. The commission shall impose a ten percent admission tax on
all tickets sold, issued, granted, or distributed for the privilege of admission to the basketball and
hockey arena. In addition, the commission shall impose a surcharge in an amount to be determined
by the commission, but not less than $1 per ticket, on all tickets sold, issued, granted, or distributed
for the privilege of admission to activities at the basketball and hockey arena. The sales price shall
include the price of the ticket and any service or other charge imposed by the grantor, issuer, seller,
or distributor upon the reservation, processing, distribution, delivery, or sale of the ticket. No other
tax, surcharge, or governmental imposition, except the taxes imposed by chapter 297A, may be
levied by any other unit of government upon such a sale or distribution. The admission tax and
surcharge for the privilege of admission to activities at the basketball and hockey arena shall be
charged and added to the sales price of the ticket, and imposed and collected in the same manner
provided for the Metrodome pursuant to subdivision 1. The tax and surcharge provided for in this
subdivision shall be effective from and after the date of the commission's acquisition of the basketball
and hockey arena.
    Subd. 2. Rentals; fees; charges. Rentals, fees, and charges provided for in use agreements at
the Metrodome and basketball and hockey arena entered into by the commission shall be those
estimated by the commission to be necessary and feasible to produce so far as possible, with
commission revenues from other sources, the amounts needed for current operation, maintenance,
and debt service. The commission shall with respect to the Met Center, the Metrodome, and the
basketball and hockey arena meet and confer with any public body, authority, or agency owning
or operating an entertainment or sports complex, or indoor sports arena, in the metropolitan area,
for the purpose of undertaking measures or agreements maximizing revenues and eliminating
unnecessary operational expenditures.
   Subd. 3. Budget preparation; review and approval. The commission shall prepare a proposed
budget by August 1 of each year. The budget shall include operating revenues and expenditures for
operation, administration, and maintenance. In addition, the budget must show for each year:
    (a) The estimated operating revenues from all sources including funds on hand at the beginning
of the year, and estimated expenditures for costs of operation, administration, maintenance, and
debt service;
    (b) Capital improvement funds estimated to be on hand at the beginning of the year and estimated
to be received during the year from all sources and estimated cost of capital improvements to be
paid out or expended during the year; all in such detail and form as the council may prescribe; and
    (c) The estimated source and use of pass-through funds.
    As early as practicable before August 15 of each year, the commission shall hold a public hearing
on a draft of the proposed budget. Along with the draft, the commission shall publish a report on
user charges. The report must include an estimate and analysis of the changes in user charges, rates,
and fees that will be required by the commission's budget. Not less than 14 days before the hearing,
the commission shall publish notice of the hearing in a newspaper having general circulation in the
metropolitan area, stating the date, time, and place of hearing, and the place where the proposed
budget and report on user charges may be examined by any interested person. Following the hearing,
the commission shall publish a report of the hearing that summarizes the comments received and
the commission's response. The council shall approve or disapprove the entire budget by October
1 of each year. Before December 15 of each year, the commission shall by resolution adopt a final
budget. The commission shall file its final budget with the council on or before December 20 of
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each year. The council shall file the budgets with the secretary of the senate and the clerk of the
house of representatives not later than January 1 of each year.
    Except in an emergency, for which procedures must be established by the commission, the
commission and its officers, agents, and employees may not spend money for any purpose, other
than debt service, without an appropriation by the commission, and no obligation to make such an
expenditure shall be enforceable except as the obligation of the person or persons incurring it. The
creation of any debt obligation or the receipt of any federal or state grant is a sufficient appropriation
of the proceeds for the purpose for which it is authorized, and of the tax or other revenues pledged
to pay the obligation and interest on it whether or not specifically included in any annual budget.
After obtaining approval of the council, the commission may amend the budget at any time by
transferring any appropriation from one purpose to another, except appropriations of the proceeds
of bonds issued for a specific purpose.
   Subd. 4. Payment of council costs. The commission shall comply with the provisions of section
473.164.
   Subd. 5. Audit. The legislative auditor shall make an independent audit of the commission's
books and accounts once each year or as often as the legislative auditor's funds and personnel permit.
The costs of the audits shall be paid by the commission pursuant to section 3.9741. The council
may examine the commission's books and accounts at any time.
    Subd. 6. General. The commission shall receive and account for all tax and other revenue of
the commission and from the revenue shall provide, contract, and pay for proper operation,
administration, and maintenance of all of its property and facilities and shall maintain, as authorized
by resolutions of the council, reserves for major repairs, replacements, and improvements and for
working capital. The commission shall remit to the council for deposit in its Metrodome debt service
funds, at the times required by resolution of the council, the net revenue attributable to the Metrodome
in excess of these requirements and for deposit in its basketball and hockey arena debt service fund
or funds, at the times required by resolution of the council, the net revenue attributable to the
basketball and hockey arena in excess of these requirements.
    Subd. 7. Sale of seats. The commission may sell seats in any multipurpose sports facility
constructed after June 30, 1979 at prices and subject to conditions consistent with this section.
Ownership of a seat shall give the owner first preference for purchase of a season ticket of admission
for professional sports exhibitions with a right to be seated in the owned seat. An owner may sell
or otherwise transfer the rights on whatever terms the owner chooses. Rights to a seat may not be
divided. No fee may be charged for a transfer of ownership of a seat. The commission may charge
a maintenance fee not exceeding $10 per year for each seat.
    473.596 HIGHWAY USER TAX FUND FOR METRODOME ACCESS; LIMITS.
    No money derived from the highway user tax distribution fund shall be used to construct,
relocate, or improve any streets, highways, or other public thoroughfares, except ones included in
the municipal state aid street system established pursuant to article XIV, section 4, of the Minnesota
Constitution if such work is done in order to provide or improve access to the metrodome constructed
pursuant to sections 473.551 to 473.595. The commissioner of transportation shall determine whether
expenditures are in violation of this section.
    473.598 ARENA ACQUISITION.
   Subdivision 1. Commission determination. The commission shall first determine whether to
pursue negotiations to acquire the basketball and hockey arena.
    Subd. 2. Examination and disclosure of loan terms. Before making a final decision to acquire
the basketball and hockey arena, the commission must obtain and examine all the terms, conditions,
covenants, and other provisions of any loan agreements between the owners of the arena and third
parties that provided financing secured by mortgages on or other security interests in the basketball
and hockey arena. These terms specifically include any agreements that require a professional team
affiliated with the owner to lease or use the arena or that restrict or limit the authority of the team
owners or affiliates to relocate the team. The commission shall make the terms of the agreements
available for public inspection.
    Subd. 3. Commission proposal. (a) If the commission makes a final determination to acquire
the basketball and hockey arena, the commission may then submit to the Metropolitan Council a
proposal to bond for and acquire the basketball and hockey arena. The commission's proposal shall
contain all information deemed appropriate or necessary by the council to its determinations pursuant
to section 473.599, subdivision 4. The commission, in preparing the proposal for the council, shall
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require of the sellers and of the professional teams that are potential lessees or other potential lessees
and all of their affiliated entities any and all data relevant to the acquisition, financing, ownership,
and operation of the basketball and hockey arena, including, but not limited to, contracts, agreements,
profit and loss statements, annual audit statements and balance sheets. The commission shall contract
with an independent, nationally recognized firm of certified public accountants to perform due
diligence and provide an economic feasibility study or report with regard to the data received by
the commission from the sellers, the potential lessees, and affiliated entities. In evaluating whether
to acquire the basketball and hockey arena, the commission shall consider among other factors, (a)
total capital and operating costs of the basketball and hockey arena to the commission and total
commission revenues from the basketball and hockey arena over the expected life of the facility,
including any contributions by the state, local units of government or other organizations, (b) the
total governmental costs associated with the acquisition and operation of the basketball and hockey
arena, including the cost to all units and agencies of government as well as the costs to the
commission, (c) the net gain or loss of taxes to the state and all local government units, and (d)
economic and other benefits accruing to the public.
   (b) Before submitting its proposal to the Metropolitan Council under paragraph (a), the
commission shall submit the proposal to the Department of Management and Budget for review,
evaluation, and comment. Any data which is not public data under subdivision 4 shall remain not
public data when given to the Department of Management and Budget.
    Subd. 4. Treatment of data. (a) Except as specifically provided in this subdivision, all data
received by the commission or council in the course of its negotiations and acquisition of the
basketball and hockey arena is public data.
    (b) The commission may keep confidential data received or prepared by its accountants or
counsel for purposes of negotiations with existing or potential lessees of the basketball and hockey
arena. That data shall be confidential data on individuals under section 13.02, subdivision 3, or
protected nonpublic data under section 13.02, subdivision 13, as the case may be, unless the
commission determines that public release of the data would advance the negotiations, or until the
potential lessees have executed agreements with the commission or the negotiations are unfavorably
concluded.
    (c) The following data shall be private data on individuals under section 13.02, subdivision 12,
or nonpublic data under section 13.02, subdivision 9, as the case may be:
    (1) data received by the commission or council from the present lessees or potential lessees of
the basketball and hockey arena which if made public would, due to the disclosure, permit a
competitive economic advantage to other persons;
    (2) data relating to affiliated entities of the parties referred to in subdivision 3 which is not
relevant to the due diligence and economic feasibility study referred to under subdivision 3; and
    (3) data on individuals which is not relevant to the finances of the basketball and hockey arena
or useful to demonstrate the financial ability of the potential lessees of the arena to perform their
agreements with the commission.
   (d) For purposes of this subdivision, the terms "commission" and "council" include their members
and employees, accountants, counsel, and consultants and the firm of independent certified public
accountants to be engaged under subdivision 2.
    (e) Notwithstanding the exceptions in this subdivision, summary data which demonstrates the
financial ability of the lessees and potential lessees of the basketball and hockey arena to perform
their obligations under agreements with the commission and data which relates in any way to the
value of the basketball and hockey arena and the amount by which the owners' investment in the
arena, including debt obligations, exceeds the commission's payments to and assumption of the
owners' debt obligations, shall be public data.
    Subd. 5. Hockey agreement. The commission shall exercise its best efforts, consistent with its
other obligations under sections 473.551 to 473.599 to attempt to secure an agreement with a major
league professional hockey organization to play its home games at the basketball and hockey arena.
    473.599 DEBT OBLIGATIONS.
    Subdivision 1. Revenues. It is the intent of the legislature that the commission shall, to the
maximum extent possible consistent with the provisions of this section, impose rates, rentals, and
other charges in the operation of the basketball and hockey arena which together with the admissions
tax and surcharge provided in section 473.595, subdivision 1a, will make the basketball and hockey
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arena self-supporting so that the taxes imposed under section 473.592 for the basketball and hockey
arena will be at the lowest possible rate consistent with the obligations of the city of Minneapolis
as provided in sections 473.551 to 473.599.
   Subd. 2. Bonds. The council shall by resolution authorize the sale and issuance of its bonds for
any of the following purposes upon its determination that the conditions of subdivision 4 have been
met:
    (a) To provide funds for the acquisition or betterment of the basketball and hockey arena by
the commission pursuant to sections 473.598 and 473.599;
   (b) To refund bonds issued under this section; and
   (c) To fund judgments entered by any court against the commission or against the council in
matters relating to the basketball and hockey arena.
     Subd. 3. Procedure. The bonds shall be sold, issued, and secured in the manner provided in
chapter 475 for bonds payable solely from revenues, except as otherwise provided in sections
473.551 to 473.599, and the council shall have the same powers and duties as a municipality and
its governing body in issuing bonds under chapter 475. The council may pledge for the payment
of the bonds the net revenues of the commission arising from the commission's operation of the
basketball and hockey arena, the tax provided by section 473.592 for the basketball and hockey
arena, and the admission tax and surcharge authorized in section 473.595, subdivision 1a. The bonds
may be sold at any price and at public or private sale as determined by the council. They shall be
payable solely from tax and other revenues referred to in sections 473.551 to 473.599, and shall
not be a general obligation or debt of the council or of the commission, and shall not be included
in the net debt of any city, county, or other subdivision of the state for the purpose of any net debt
limitation, but nothing in this section shall affect the obligation of the city of Minneapolis to levy
a tax pursuant to an agreement made under the provisions of section 473.592. No election shall be
required. The principal amount shall not be limited except as provided in subdivision 4.
     Subd. 4. Limits. The principal amount of the bonds issued pursuant to subdivision 2, clause
(a), exclusive of any original issue discount, shall not exceed the total amount of $42,000,000 plus
such amount as the council determines necessary to pay the costs of issuance, fund reserves for
operation and debt service, and pay for any bond insurance or other credit enhancement. The bonds
may be issued as tax-exempt revenue bonds or as taxable revenue bonds in the proportions that the
commission may determine. The proceeds of the bonds issued pursuant to subdivision 2, clause
(a), shall be used only for acquisition and betterment of sports facilities suitable for a basketball
and hockey arena and the arena land and the related purposes referred to in this subdivision, and
for reimbursement of any expenses of the commission related to its determination of whether to
acquire the basketball and hockey arena, whenever incurred. The council shall issue its bonds
pursuant to subdivision 2, clause (a), and the commission may acquire the basketball and hockey
arena and the arena land when the council has made the following determinations:
     (a) The commission, the city of Minneapolis or the Minneapolis Community Development
Agency, or any or all of them, as the commission may deem appropriate, has executed agreements
with a major league professional basketball organization to use the arena for all scheduled regular
season home games and play-off home games, and for at least one of its exhibition games played
each season. The agreements shall be for a period of 30 years. The agreements may contain provisions
negotiated with the organization which provide for earlier termination of the use of the basketball
and hockey arena by the commission upon conditions related to and limited to the bankruptcy or
insolvency of the organization. The agreements shall afford to the commission, the city of
Minneapolis, or the Minneapolis Community Development Agency, or each or all of them, as the
commission deems appropriate, the remedies that are deemed necessary and appropriate to provide
reasonable assurances that the major league professional basketball organization or another major
league professional basketball organization shall comply with the agreements. The remedies shall
include the payment of liquidated damages equivalent to direct and consequential damages incurred
by reason of the breach of the agreements and any additional remedies or security arrangements
the commission reasonably determines to be effective in accomplishing the purposes of this
paragraph. The damages payment may be payable in a lump sum or in installments as the commission
may deem appropriate. The commission may require that the agreements include other terms and
conditions to provide reasonable assurances that the major league professional basketball team or
a successor major league professional basketball team will play the required games at the basketball
and hockey arena during the 30-year term of the agreements, or, in the event of a breach, to assure
the payment of the required damages. The agreements shall address contingencies that may arise
in the event of change of ownership of the professional teams. The agreements with the professional
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basketball organization for the use of the basketball and hockey arena shall provide for arrangements
which the commission may deem necessary or appropriate to accommodate a future agreement
between the commission and a professional hockey organization to occupy the basketball and
hockey arena, consistent with this section.
      (b) The commission has exercised its reasonable efforts to obtain assurances and/or agreements
from the professional basketball major league to the extent permitted under applicable federal and
state law, that it will not approve the relocation of the major league professional basketball
organization if the relocation is in violation of the terms of the agreements referred to in paragraph
(a).
   (c) The professional basketball team has provided information sufficient to satisfy the council
and the commission of the team's ability to comply with the terms of the 30-year lease.
    (d) The proceeds of bonds provided for in this subdivision will be sufficient for the purposes
for which they are issued.
    (e) The commission has acquired, or has contracted to acquire, (i) leasehold title to the arena
land together with the estate of the tenant and other rights demised under the ground lease, subject
to amendment as provided in clause (o), (ii) ownership of all real and personal property comprising
the basketball and hockey arena, and (iii) all easements, appurtenances and other rights, title, or
interest deemed by the commission necessary or desirable in connection with the acquisition,
financing, ownership, and operation of the basketball and hockey arena.
   (f) The percentage of the private boxes provided for in the commission's proposal for the
basketball and hockey arena are sold or leased for the period that the commission finds advisable.
    (g) The anticipated admission taxes and surcharges and other revenue from the operation of the
basketball and hockey arena will be sufficient to pay when due all basketball and hockey arena debt
service plus all administration, operating and maintenance expense of the arena.
    (h) The city of Minneapolis has entered into an agreement as contemplated in clause (n) and an
agreement or agreements as contemplated in section 473.592 with respect to the basketball and
hockey arena.
    (i) The council has entered into an agreement with the brokerage firm or brokerage firms to be
used in connection with the issuance and sale of the bonds guaranteeing that fees and charges
payable to the brokerage firm or firms in connection therewith, including any underwriting discounts,
shall not exceed fees and charges customarily payable in connection with the issuance and sale of
bonds secured by the pledge of the full faith and credit of the city of Minneapolis.
    The validity of any bonds issued under subdivision 2, clause (a), and the obligations of the
council and commission related to them, shall not be conditioned upon or impaired by the council's
determination made pursuant to this subdivision. For purposes of issuing the bonds the determinations
made by the commission and council shall be deemed conclusive, and the council shall be and
remain obligated for the security and payment of the bonds irrespective of determinations which
may be erroneous, inaccurate, or otherwise mistaken.
    (j) The commission has entered into arrangements with any other persons to create a
condominium or leasehold condominium, or common interest community or leasehold common
interest community, with respect to the building containing the basketball and hockey arena, including
the arena playing and spectator areas, and all other portions of the building, and together with the
arena land and all other related improvements, easements and other appurtenant and ancillary
property and property rights. The Minneapolis Community Development Agency in its capacity as
ground lease landlord may be a party to the condominium or common interest community declaration.
The condominium or common interest community declaration shall establish the portion of the
building containing the health club as a separate unit of the condominium or common interest
community, and the commission shall have entered into an agreement or agreements with a private
sports and health club organization which shall require that the organization shall purchase or retain
ownership of the unit with its own funds and at no cost or expense to the commission, and that the
organization shall pay for all utility and other operating costs and expenses including allocated
common expenses and pay ad valorem property taxes for the unit. The condominium or common
interest community declaration may also establish other units in the condominium or common
interest community which shall include the arena playing and spectator areas and may also include
office space, restaurant space, locker rooms, private spectator suites or boxes, signage, and other
areas, and may also establish common elements, limited common elements and other easements
and interests as the commission deems necessary or appropriate. The agreement or agreements
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between the commission and the private sports and health club organization may also address
additional matters which may be the subject of the bylaws or other agreements or arrangements
among unit owners of condominiums or common interest communities, either as part of, or separately
from, the provisions of chapter 515A or 515B, or any other items as may be ordinarily and
customarily negotiated between the commission and the organization.
    (k) The private sports and health club organization has executed an assessment agreement
pursuant to section 469.177, subdivision 8, obligating payment of ad valorem taxes based on a
minimum market value of the health club of at least $10,000,000 with the city of Minneapolis or
the Minneapolis Community Development Agency.
    (l) The commission has executed an agreement requiring the commission to remit annually to
the Minneapolis Community Development Agency or appropriate agency an amount which together
with any ad valorem taxes or other amounts received by the city of Minneapolis or the Minneapolis
Community Development Agency from the health club as tax increments equals the debt service
required by the tax increment district attributable to the basketball and hockey arena until the current
outstanding indebtedness or any refunding thereof has been paid or retired.
    (m) The development agreement shall be amended:
    (i) so that no payments are due to the city of Minneapolis or the Minneapolis Community
Development Agency from the commission or any other person with respect to the sale, ownership
or operation of the basketball and hockey arena, except as provided in clauses (k), (l), and (n); and
    (ii) to confirm the satisfactory performance of the obligations of the parties to the development
agreement on the effective date of the commission's acquisition; provided, that the city of Minneapolis
and the Minneapolis Community Development Agency shall not be required to release any claim
they may have under the development agreement with respect to the operations or sale of the health
club (except as such claim may arise from the commission's acquisition of the basketball and hockey
arena and the contemporaneous sale or transfer of the health club to those persons who own the
basketball and hockey arena and the health club on the date of the commission's acquisition) or
from the operations or sale of the professional basketball organization occupying the basketball
and hockey arena or the security they may have under the development agreement or the ground
lease to assure its performance, pursuant to the guaranty of the guarantors in the event of any default
of the commission under the ground lease, or of the owners of the health club with respect to the
payment of ad valorem taxes or any payment due from them under the development agreement as
amended in accordance with the provisions of this subdivision.
    (n) The commission has executed an agreement with the city of Minneapolis providing that for
so long as the commission owns the basketball and hockey arena the city shall not impose any
entertainment tax or surcharge on tickets purchased for any and all events at the basketball and
hockey arena. The agreement may also provide that the commission shall compensate the city for
the forbearance of the entertainment tax in effect on the effective date of Laws 1994, chapter 648,
plus accrued interest, after payment of basketball and hockey arena debt service, the necessary and
appropriate funding of debt reserve of the basketball and hockey arena and all expenses of operation,
administration, and maintenance, and the funding of a capital reserve for the repair, remodeling
and renovation of the basketball and hockey arena. The required funding of the capital reserve shall
be in an amount mutually agreed to by the commission and the city.
    (o) The ground lease shall be amended by the Minneapolis Community Development Agency
to the reasonable satisfaction of the commission to provide:
    (i) that the commission's sole financial obligation to the landlord shall be to make the payment
provided for in clause (1) from the net revenues of the commission attributable to the operation of
the basketball and hockey arena;
    (ii) that the term of the lease shall be 99 years;
    (iii) that the commission shall have the option to purchase the arena land upon the payment of
$10 at any time during the term of the ground lease, but, unless otherwise agreed to by the
Minneapolis Community Development Agency, only after the payment or retirement of the general
obligation tax increment bonds previously issued by the city of Minneapolis to assist in financing
the acquisition of the arena land; and
   (iv) other amendments as the commission deems necessary and reasonable to accomplish its
purposes as provided in sections 473.598 and 473.599.
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    (p) The commission has received a report or reports by qualified consultants on the basketball
and hockey arena, the health club and the arena land, based on thorough inspection in accordance
with generally accepted professional standards and any correction, repair, or remediation disclosed
by the reports has been made to the satisfaction of commission.
     Subd. 5. Security. To the extent and in the manner provided in sections 473.592 and 473.595,
the taxes described in section 473.592 for the basketball and hockey arena, the tax, surcharge and
other revenues of the commission described in section 473.595, subdivision 1a, attributable to the
basketball and hockey arena and any other revenues of the commission attributable to the basketball
and hockey arena shall be and remain pledged and appropriated for the purposes specified in Laws
1994, chapter 648, article 1, and for the payment of all necessary and reasonable expenses of the
operation, administration, maintenance, and debt service of the basketball and hockey arena until
all bonds referred to in section 473.599, subdivision 2, are fully paid or discharged in accordance
with law. Bonds issued pursuant to this section may be secured by a bond resolution, or by a trust
indenture entered into by the council with a corporate trustee within or outside the state, which shall
define the tax and other revenues pledged for the payment and security of the bonds. The pledge
shall be a valid charge on the tax, surcharge and other revenues attributable to the basketball and
hockey arena referred to in sections 473.592, 473.595, subdivision 1a, 473.598, and 473.599 from
the date when bonds are first issued or secured under the resolution or indenture and shall secure
the payment of principal and interest and redemption premiums when due and the maintenance at
all times of a reserve securing the payments. No mortgage of or security interest in any tangible
real or personal property shall be granted to the bondholders or the trustee, but they shall have a
valid security interest in all tax and other revenues received and accounts receivable by the
commission or council under sections 473.592 to the extent of the tax imposed as security for the
debt service of the basketball and hockey arena, 473.595, subdivision 1a, 473.598, and 473.599,
as against the claims of all other persons in tort, contract, or otherwise, irrespective of whether the
parties have notice of them, and without possession or filing as provided in the Uniform Commercial
Code or any other law. In the bond resolution or trust indenture the council may make the covenants,
which shall be binding upon the commission, as are determined to be usual and reasonably necessary
for the protection of the bondholders. No pledge, mortgage, covenant, or agreement securing bonds
may be impaired, revoked, or amended by law or by action of the council, commission, or city,
except in accordance with the terms of the resolution or indenture under which the bonds are issued,
until the obligations of the council under the resolution or indenture are fully discharged.
    Subd. 6. Revenue anticipation certificates. After approval by the council and final adoption
by the commission of an annual budget of the commission for operation, administration, and
maintenance of the basketball and hockey arena, and in anticipation of the proceeds from the taxes
under section 473.592 and the revenues of the commission provided for in the budget, but subject
to any limitation or prohibition in a bond resolution or indenture, the council may authorize the
issuance, negotiation, and sale, in the form and manner and upon the terms that it may determine,
of revenue anticipation certificates. The principal amount of the certificates outstanding shall at no
time exceed 25 percent of the total amount of the tax and other revenues anticipated. The certificates
shall mature not later than three months after the close of the budget year. Prior to the approval and
final adoption of the annual budget of the commission, the council may authorize revenue anticipation
certificates under this subdivision. So much of the anticipated tax and other revenues as may be
needed for the payment of the certificates and interest on them shall be paid into a special debt
service fund established for the certificates in the council's financial records. If for any reason the
anticipated tax and other revenues are insufficient, the certificates and interest shall be paid from
the first tax, surcharge and other revenues received attributable to the basketball and hockey arena,
subject to any limitation or prohibition in a bond resolution or indenture. The proceeds of the
certificates may be used for any purpose for which the anticipated revenues or taxes may be used
or for any purpose for which bond proceeds under subdivision 2 may be used.
    Subd. 7. Arena free of mortgages, liens, and obligations. With the exception of the obligations
imposed by sections 473.598 and 473.599, the commission shall not assume any notes, pledges,
mortgages, liens, encumbrances, contracts, including advertising contracts or marquee agreements,
or other obligations upon acquisition of the basketball and hockey arena or the arena land, including
but not by way of limitation, management or concession agreements. Upon acquisition by the
commission, the basketball and hockey arena and the arena land shall be free of all liens and
encumbrances, including the foregoing but excluding the easements and rights-of-way that the
commission shall determine do not materially impair or affect its ownership and operation of the
basketball and hockey arena. Upon acquisition, the commission shall, through a process involving
statewide public participation, select a name for the basketball and hockey arena. In the process of
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selecting the name, the commission shall consider its obligation under section 473.599, subdivision
1, but that obligation must not be the principal consideration in making the selection.
    Subd. 8. Reimbursement to state. The commission shall compensate the state for its contribution
from the general fund under Minnesota Statutes 2008, section 240A.08, plus accrued interest, after
payment of basketball and hockey arena debt service, the necessary and appropriate funding of debt
reserve of the basketball and hockey arena and all expenses of operation, administration, and
maintenance and the funding of a capital reserve for the repair, remodeling and renovation of the
basketball and hockey arena. Compensation paid to the state shall occur at the same time that
compensation is paid to the city of Minneapolis, as provided in paragraph (n) of subdivision 4, on
a basis proportionate to the amount of forbearance of the entertainment tax or surcharge as provided
in paragraph (n) to that date, and the amount of general fund appropriations paid by the state under
Minnesota Statutes 2008, section 240A.08, to that date. No reimbursement will be paid under this
subdivision after (1) the aggregate amount of the appropriations granted under Minnesota Statutes
2008, section 240A.08, to that time, plus accrued interest, has been reimbursed under this subdivision,
or (2) December 31, 2024, whichever is earlier.
   473.5995 FOOTBALL STADIUM ACCOUNT.
    Subdivision 1. Creation. A football stadium account is created in the special revenue fund in
the state treasury. On July 1, 2002, the Metropolitan Sports Facilities Commission must deposit
$500,000 from its cash reserves in the football stadium account.
   Subd. 2. Transfer; sale of the Metrodome. Upon sale of the Metrodome, the Metropolitan
Sports Facilities Commission must transfer the net sales proceeds as follows:
    (1) $5,000,000 to Hennepin County to offset expenditures for grants for capital improvement
reserves for a ballpark under section 473.757; and
    (2) the remainder to the football stadium account to be used to pay debt service on bonds issued
to pay for the construction of a football stadium for the Minnesota Vikings.
   473.76 METROPOLITAN SPORTS FACILITIES COMMISSION.
    The Metropolitan Sports Facilities Commission may authorize, by resolution, technical,
professional, or financial assistance to the county and authority for the development and operation
of the ballpark upon such terms and conditions as the county or authority and the Metropolitan
Sports Facilities Commission may agree, including reimbursement of financial assistance from the
proceeds of the bonds authorized in this chapter. Without limiting the foregoing permissive powers,
the Metropolitan Sports Facilities Commission shall transfer $300,000 from its cash reserves to the
county on or prior to January 1, 2007, for use in connection with preliminary ballpark and public
infrastructure costs, which amount shall be repaid by the county from collections of the tax authorized
by section 473.757, if any.
   473.763 COMMUNITY OWNERSHIP.
   Subdivision 1. Purpose. The legislature determines that:
    (1) a professional baseball franchise is an important asset to the state of Minnesota and ensuring
that a franchise remains in Minnesota is an important public purpose;
   (2) providing broad-based local ownership of a Major League Baseball franchise develops trust
among fans, taxpayers, and the team, and helps ensure this important asset will remain in the state;
   (3) providing community ownership of a professional baseball franchise ensures that the financial
benefits of any increased value of the franchise will accrue to those members of the community
who own the franchise; and
   (4) enacting legislation providing for community ownership indicates to Major League Baseball
continuing support for professional baseball in Minnesota.
    Subd. 2. Acquisition. Subject to the rules of Major League Baseball, the governor and the
Metropolitan Sports Facilities Commission must attempt to facilitate the formation of a corporation
to acquire the baseball franchise and to identify an individual private managing owner of the
corporation. The corporation formed to acquire the franchise shall have a capital structure in
compliance with all of the following provisions:
    (1) there may be two classes of capital stock: common stock and preferred stock. Both classes
of stock must give holders voting rights with respect to any relocation or voluntary contraction of
the franchise;
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  Repealed Minnesota Statutes: 26-06400
    (2) the private managing owner must own no less than 25 percent and no more than 35 percent
of the common stock. For purposes of this restriction, shares of common stock owned by the private
managing owner include shares of common stock owned by any related taxpayer as defined in
section 1313(c) of the Internal Revenue Code of 1986, as amended. Other than the rights of all
other holders of common stock and preferred stock with respect to relocation or voluntary contraction
of the franchise, the private managing owner must control all aspects of the operation of the
corporation;
    (3) other than the private managing owner, no individual or entity may own more than five
percent of the common stock of the corporation;
    (4) at least 50 percent of the ownership of the common stock must be sold to members of the
general public in a general solicitation and a person or entity must not own more than one percent
of common stock of the corporation; and
     (5) the articles of incorporation, bylaws, and other governing documents must provide that the
franchise may not move outside of the state or agree to voluntary contraction without approval of
at least 75 percent of the shares of common stock and at least 75 percent of the shares of preferred
stock. Notwithstanding any law to the contrary, these 75 percent approval requirements shall not
be amended by the shareholders or by any other means.
    Except as specifically provided by Laws 2006, chapter 257, no state agency may spend money
from any state fund for the purpose of generating revenue under this subdivision or for the purpose
of providing operating support or defraying operating losses of a professional baseball franchise.
    477A.18 PRODUCTION PROPERTY TRANSITION AID.
    Subdivision 1. Definitions. (a) When used in this section, the following terms have the meanings
indicated in this subdivision.
    (b) "Local unit" means a home rule charter or statutory city, or a town.
    (c) "Net tax capacity differential" means the positive difference, if any, by which the local unit's
net tax capacity was reduced from assessment year 2014 to assessment year 2015 due to the change
in the definition of real property in section 272.03, subdivision 1, enacted by Laws 2014, chapter
308, article 2, section 9. For purposes of determining the net tax capacity differential, any property
in a job opportunity building zone under section 469.314 may not be included when calculating a
local unit's net tax capacity.
    Subd. 2. Aid eligibility; payment. (a) If the net tax capacity differential of the local unit exceeds
five percent of its 2015 net tax capacity, the local unit is eligible for transition aid computed under
paragraphs (b) to (f).
    (b) For aids payable in 2016, transition aid under this section for an eligible local unit equals
(1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable in 2015.
    (c) For aids payable in 2017, transition aid under this section for an eligible local unit equals
80 percent of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable
in 2016.
    (d) For aids payable in 2018, transition aid under this section for an eligible local unit equals
60 percent of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable
in 2017.
    (e) For aids payable in 2019, transition aid under this section for an eligible local unit equals
40 percent of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable
in 2018.
    (f) For aids payable in 2020, transition aid under this section for an eligible local unit equals
20 percent of (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for taxes payable
in 2019.
    (g) No aids shall be payable under this section in 2021 and thereafter.
    (h) The commissioner of revenue shall compute the amount of transition aid payable to each
local unit under this section. On or before August 1 of each year, the commissioner shall certify
the amount of transition aid computed for aids payable in the following year for each recipient local
unit. The commissioner shall pay transition aid to local units annually at the times provided in
section 477A.015.
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  Repealed Minnesota Statutes: 26-06400
   (i) The commissioner of revenue may require counties to provide any data that the commissioner
deems necessary to administer this section.
   Subd. 3. Appropriation. An amount sufficient to pay transition aid under this section is annually
appropriated to the commissioner of revenue from the general fund.
   480.011 OFFICE OF ASSOCIATE JUSTICE; CONTINUANCE IN OFFICE.
    The reduction of two offices of associate justice abolished by section 480.01 shall become
effective upon the first two vacancies occurring in that office on the supreme court. Each justice
of the supreme court serving on August 1, 1983 may continue to serve until the justice is not elected
or does not seek reelection. If a justice who was serving on August 1, 1983, is defeated for reelection
by another person, that other person shall be deemed to have been in office as of August 1, 1983,
for the purposes of this section.
   504B.345 JUDGMENT; EXECUTION.
    Subd. 2. Expedited writ. If the court enters judgment for the plaintiff in an action brought under
section 504B.291 as required by section 609.5317, subdivision 1, the court may not stay issuance
of the writ of recovery of premises and order to vacate unless the court makes written findings
specifying the extraordinary and exigent circumstances that warrant staying the writ for a reasonable
period, not to exceed seven days.
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  APPENDIX
  Repealed Minnesota Session Laws: 26-06400
Laws 2024, chapter 79, article 1, section 20
  Sec. 20. Minnesota Statutes 2023 Supplement, section 246C.03, subdivision 2, is amended to
read:
    Subd. 2. Development of Department of Direct Care and Treatment Board. (a) The
commissioner of human services shall prepare legislation for introduction during the 2024 legislative
session, with input from stakeholders the commissioner deems necessary, proposing legislation for
the creation and implementation of the Direct Care and Treatment executive board and defining
the responsibilities, powers, and function of the Department of Direct Care and Treatment executive
board.
    (b) The Department of Direct Care and Treatment executive board shall consist of no more than
five members, all appointed by the governor.
    (c) An executive board member's qualifications must be appropriate for overseeing a complex
behavioral health system, such as experience serving on a hospital or non-profit board, serving as
a public sector labor union representative, experience in delivery of behavioral health services or
care coordination, or working as a licensed health care provider, in an allied health profession, or
in health care administration.
Laws 2025, chapter 21, section 56
 Sec. 56. Minnesota Statutes 2024, section 256G.09, subdivision 4, is amended to read:
    Subd. 4. Appeals. A local agency that is aggrieved by the order of the department commissioner
of human services, executive board, or commissioner of children, youth, and families under
subdivision 3, paragraph (e), may appeal the opinion to the district court of the county responsible
for furnishing assistance or services by serving a written copy of a notice of appeal on the
commissioner of human services and any adverse party of record within 30 days after the date the
department issued the opinion, and by filing the original notice and proof of service with the court
administrator of district court. Service may be made personally or by mail. Service by mail is
complete upon mailing.
   The commissioner of human services; the commissioner of children, youth, and families; or the
executive board may elect to become a party to the proceedings in district court. The court may
consider the matter in or out of chambers and shall take no new or additional evidence.
Laws 2025, chapter 21, section 57
 Sec. 57. Minnesota Statutes 2024, section 256G.09, subdivision 5, is amended to read:
     Subd. 5. Payment pending appeal. After the department commissioner of human services,
executive board, or commissioner of children, youth, and families under subdivision 3, paragraph
(e), issues an opinion in any submission under this section, the service or assistance covered by the
submission must be provided or paid pending or during an appeal to the district court.
  27R

Miscellaneous technical corrections to laws and statutes made; erroneous, obsolete, and omitted text and references corrected; and redundant, conflicting, and superseded provisions removed.

Sponsors

Rep. Peggy Scott (R) sponsors HF 4057, and 1 member has co-sponsored it.

Committees

HF 4057 went before 1 committee: Judiciary Finance and Civil Law.

Judiciary Finance and Civil Law
Judiciary Finance and Civil Law
Referred to · Mar 9, 2026 · 163 Bills

History

HF 4057 has taken 6 actions since Mar 9, 2026, the latest on Apr 27, 2026.

ChamberAction
Apr 27, 2026
House
Bills identical, SF substituted on General Register
Apr 27, 2026
House
HF indefinitely postponed
Apr 23, 2026
House
Referred to Chief Clerk for comparison with SF4244
Apr 7, 2026
House
Committee report, to adopt
Apr 7, 2026
House
Second reading

Votes

HF 4057 has not gone to a roll call.

Source: revisor.mn.gov · legiscan.com