STATE OF
MINNESOTA
EIGHTY-EIGHTH
SESSION - 2013
_____________________
SIXTY-FIRST
DAY
Saint Paul, Minnesota, Sunday, May 19, 2013
The House of Representatives convened at
12:00 noon and was called to order by Paul Thissen, Speaker of the House.
Prayer was offered by the Reverend Dennis
Johnson, Minneapolis, Minnesota.
The members of the House gave the pledge
of allegiance to the flag of the United States of America.
The roll was called and the following
members were present:
Albright
Allen
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Barrett
Beard
Benson, J.
Benson, M.
Bernardy
Bly
Brynaert
Carlson
Clark
Cornish
Daudt
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Dill
Dorholt
Drazkowski
Erhardt
Erickson, R.
Erickson, S.
Fabian
Falk
Fischer
FitzSimmons
Franson
Freiberg
Fritz
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hansen
Hausman
Hertaus
Holberg
Hoppe
Hornstein
Hortman
Howe
Huntley
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kieffer
Kiel
Laine
Leidiger
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McDonald
McNamar
McNamara
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Myhra
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Paymar
Persell
Petersburg
Poppe
Pugh
Quam
Radinovich
Runbeck
Savick
Sawatzky
Schoen
Schomacker
Scott
Selcer
Simon
Simonson
Slocum
Sundin
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Wagenius
Ward, J.A.
Ward, J.E.
Wills
Winkler
Woodard
Yarusso
Zellers
Zerwas
Spk. Thissen
A quorum was present.
Rosenthal
was excused until 1:25 p.m. Garofalo was
excused until 1:30 p.m. Sanders was
excused until 1:35 p.m. Pelowski was excused until 1:40 p.m. Kelly was excused until 2:15 p.m. Abeler and Faust were excused until 2:25 p.m. Kresha was excused until 2:45 p.m. Hilstrom was excused until 3:45 p.m. Peppin was excused until 4:45 p.m. Lohmer was excused until 7:35 p.m.
The Chief Clerk proceeded to read the
Journal of the preceding day. There
being no objection, further reading of the Journal was dispensed with and the
Journal was approved as corrected by the Chief Clerk.
REPORTS OF CHIEF CLERK
S. F. No. 629 and
H. F. No. 919, which had been referred to the Chief Clerk for
comparison, were examined and found to be identical with certain exceptions.
SUSPENSION
OF RULES
Dill moved that the rules be so far
suspended that S. F. No. 629 be substituted for
H. F. No. 919 and that the House File be indefinitely
postponed. The motion prevailed.
REPORTS OF STANDING COMMITTEES AND DIVISIONS
Murphy, E., from the Committee on Rules and Legislative Administration to which was referred:
H. F. No. 1840, A bill for an act relating to legislative enactments; correcting miscellaneous oversights, inconsistencies, ambiguities, unintended results, and technical errors; amending Minnesota Statutes 2012, section 15.985.
Reported the same back with the recommendation that the bill pass.
Joint Rule 2.03 has been waived for any subsequent committee action on this bill.
The
report was adopted.
SECOND READING
OF HOUSE BILLS
H. F. No. 1840 was read for
the second time.
SECOND READING
OF SENATE BILLS
S. F. No. 629 was read for
the second time.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The
following House Files were introduced:
Dehn, R.; Hornstein and Savick introduced:
H. F. No. 1856, A bill for an act relating to public safety;
requiring discussion of the total economic costs of violence and a report to
the legislature.
The bill was read for the first time and referred to the
Committee on Public Safety Finance and Policy.
Clark,
Isaacson, Zerwas, Gunther and Fritz introduced:
H. F. No. 1857, A bill for an act relating to employment; implementing
a grant program to provide supported employment services to persons who are
deaf, deafblind, and hard-of-hearing; proposing coding for new law in Minnesota
Statutes, chapter 268A.
The bill was read for the first time and referred to the
Committee on Jobs and Economic Development Finance and Policy.
Anderson, P., introduced:
H. F. No. 1858, A bill for an act relating to taxation;
minerals; removing the authorization for Pope County to impose the aggregate
material tax; amending Minnesota Statutes 2012, section 298.75, subdivision 1.
The bill was read for the first time and referred to the
Committee on Taxes.
Runbeck, Dettmer and Sanders introduced:
H. F. No. 1859, A bill for an act relating to
transportation; highways; requiring certain programming for expansion along a
segment of marked Interstate Highway 35W.
The bill was read for the first time and referred to the
Committee on Transportation Policy.
Rosenthal, McNamar, Davids, Gunther, Simonson, Erhardt,
Anzelc, Radinovich, Gruenhagen, Slocum, Metsa and Hornstein introduced:
H. F. No. 1860, A bill for an act relating to taxation;
providing tax credits to encourage charitable contributions; establishing an
Endow Minnesota program; authorizing rulemaking; appropriating money; amending Minnesota
Statutes 2012, sections 290.06, by adding a subdivision; 297I.20, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 116J.
The bill was read for the first time and referred to the
Committee on Jobs and Economic Development Finance and Policy.
Kahn; Erickson, R.; Hausman; Lillie; Murphy, M., and Erhardt
introduced:
H. F. No. 1861, A bill for an act relating to capital
investment; appropriating money for the aquatic invasive species laboratory at
the University of Minnesota; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the
Committee on Higher Education Finance and Policy.
CALENDAR FOR THE DAY
S. F. No. 796 was reported
to the House.
Dill moved to amend
S. F. No. 796, the sixth engrossment, as follows:
Delete everything after the enacting
clause and insert the following language of H. F. No. 742, the
fourth engrossment:
"Section 1. Minnesota Statutes 2012, section 84.027, subdivision 13, is amended to read:
Subd. 13. Game and fish rules. (a) The commissioner of natural resources may adopt rules under sections 97A.0451 to 97A.0459 and this subdivision that are authorized under:
(1) chapters 97A, 97B, and 97C to set open seasons and areas, to close seasons and areas, to select hunters for areas, to provide for tagging and registration of game and fish, to prohibit or allow taking of wild animals to protect a species, to prevent or control wildlife disease, to open or close bodies of water or portions of bodies of water for night bow fishing, and to prohibit or allow importation, transportation, or possession of a wild animal;
(2) sections 84.093, 84.15, and 84.152 to set seasons for harvesting wild ginseng roots and wild rice and to restrict or prohibit harvesting in designated areas; and
(3) section 84D.12 to designate prohibited invasive species, regulated invasive species, unregulated nonnative species, and infested waters.
(b) If conditions exist that do not allow
the commissioner to comply with sections 97A.0451 to 97A.0459, including the
need to adjust season variables on an annual basis based upon current
biological and harvest data, the commissioner may adopt a rule under this
subdivision by submitting the rule to the attorney general for review under
section 97A.0455, publishing a notice in the State Register and filing the rule
with the secretary of state and the Legislative Coordinating Commission, and
complying with section 97A.0459, and including a statement of the emergency
conditions and a copy of the rule in the notice. The emergency conditions for opening a
water body or portion of a water body for night bow fishing under this section
may include the need to temporarily open the area to evaluate compatibility of
the activity on that body of water prior to permanent rulemaking. The notice may be published after it is
received from the attorney general or five business days after it is submitted
to the attorney general, whichever is earlier.
(c) Rules adopted under paragraph (b) are effective upon publishing in the State Register and may be effective up to seven days before publishing and filing under paragraph (b), if:
(1) the commissioner of natural resources determines that an emergency exists;
(2) the attorney general approves the rule; and
(3) for a rule that affects more than three counties the commissioner publishes the rule once in a legal newspaper published in Minneapolis, St. Paul, and Duluth, or for a rule that affects three or fewer counties the commissioner publishes the rule once in a legal newspaper in each of the affected counties.
(d) Except as provided in paragraph (e), a rule published under paragraph (c), clause (3), may not be effective earlier than seven days after publication.
(e) A rule published under paragraph (c), clause (3), may be effective the day the rule is published if the commissioner gives notice and holds a public hearing on the rule within 15 days before publication.
(f) The commissioner shall attempt to notify persons or groups of persons affected by rules adopted under paragraphs (b) and (c) by public announcements, posting, and other appropriate means as determined by the commissioner.
(g) Notwithstanding section 97A.0458, a
rule adopted under this subdivision is effective for the period stated in the
notice but not longer than 18 months after the rule is adopted effective.
Sec. 2. Minnesota Statutes 2012, section 84.027, is amended by adding a subdivision to read:
Subd. 19. Federal
law compliance. Notwithstanding
any law to the contrary, the commissioner may establish, by written order,
policies for the use and operation of other power-driven mobility devices, as
defined under Code of Federal Regulations, title 28, section 35.104, on lands
and in facilities administered by the commissioner for the purposes of
implementing the Americans with Disabilities Act, United States Code, title 42,
section 12101 et seq. These policies are
exempt from the rulemaking provisions of chapter 14 and section 14.386 does not
apply.
Sec. 3. Minnesota Statutes 2012, section 84.027, is amended by adding a subdivision to read:
Subd. 20. Hunting
licenses to critically ill persons. The
commissioner may allow critically ill persons to purchase, once in a lifetime,
hunting licenses otherwise limited by a lottery drawing, which licenses allow
for taking game within established hunting seasons or season frameworks. The commissioner may provide the licenses to
persons who are participating in a program for critically ill hunters sponsored
by a nonprofit organization with expertise in providing hunting opportunities
to hunters who are gravely ill or have physical disabilities. The commissioner may provide licenses or
permits otherwise limited by drawings, including wild turkey, deer, bear,
prairie chicken, and wolf. The
commissioner may not allow the purchase of moose and elk licenses under this
subdivision. Deer licenses authorized by
the commissioner under this subdivision may be for deer of either sex.
Sec. 4. Minnesota Statutes 2012, section 84.788, is amended by adding a subdivision to read:
Subd. 13. Grant-in-aid
donations. (a) At the time of
registration, a person may agree to add a donation of any amount to the
off-highway motorcycle registration fee for grant-in-aid off-highway motorcycle
trails. An additional commission may not
be assessed on the donation. The
commissioner shall offer the opportunity to make a donation under this
subdivision to all registrants and shall issue a recognition grant-in-aid trail
sticker to registrants contributing $20 or more.
(b) Money donated under this
subdivision shall be deposited in the off-highway motorcycle account in the natural resources fund and shall be used for the
grant-in-aid program as provided under section 84.794, subdivision 2,
paragraph (a), clause (3).
Sec. 5. Minnesota Statutes 2012, section 84.794, subdivision 1, is amended to read:
Subdivision 1. Registration revenue. Fees from the registration of off-highway motorcycles, donations received under section 84.788, subdivision 13, and the unrefunded gasoline tax attributable to off-highway motorcycle use under section 296A.18 must be deposited in the state treasury and credited to the off-highway motorcycle account in the natural resources fund.
Sec. 6. Minnesota Statutes 2012, section 84.798, is amended by adding a subdivision to read:
Subd. 11. Grant-in-aid
trail donations. (a) At the
time of registration, a person may agree to add a donation of any amount to the
off-road vehicle registration fee for grant-in-aid off-road vehicle trails. An additional commission may not be assessed
on the donation. The commissioner shall
offer the opportunity to make a donation under this subdivision to all registrants and shall issue a recognition
grant-in-aid trail sticker to registrants contributing $20 or more.
(b) Money donated under this
subdivision shall be deposited in the off-road vehicle account in the natural
resources fund and shall be used for the grant-in-aid program as provided under
section 84.803, subdivision 2, clause (3).
Sec. 7. Minnesota Statutes 2012, section 84.803, subdivision 1, is amended to read:
Subdivision 1. Registration revenue. Fees from the registration of off-road vehicles, donations received under section 84.798, subdivision 11, and unrefunded gasoline tax attributable to off-road vehicle use under section 296A.18 must be deposited in the state treasury and credited to the off-road vehicle account in the natural resources fund.
Sec. 8. Minnesota Statutes 2012, section 84.82, is amended by adding a subdivision to read:
Subd. 12. Grant-in-aid
trail donations. (a) At the
time of registration, a person may agree to add a donation of any amount to the
snowmobile registration fee for grant-in-aid snowmobile trails. An additional commission may not be assessed
on the donation. The commissioner shall
offer the opportunity to make a donation under this subdivision to all registrants and shall issue a recognition
grant-in-aid trail sticker to registrants contributing $20 or more.
(b) Money donated under this
subdivision shall be deposited in the snowmobile trails and enforcement account
in the natural resources fund and shall be used for the grant-in-aid program as
provided under section 84.83, subdivision 3, paragraph (a), clause (1).
Sec. 9. Minnesota Statutes 2012, section 84.83, subdivision 2, is amended to read:
Subd. 2. Money deposited in the account. Fees from the registration of snowmobiles and from the issuance of snowmobile state trail stickers, donations received under section 84.82, subdivision 12, and the unrefunded gasoline tax attributable to snowmobile use pursuant to section 296A.18 shall be deposited in the state treasury and credited to the snowmobile trails and enforcement account.
Sec. 10. Minnesota Statutes 2012, section 84.922, subdivision 1a, is amended to read:
Subd. 1a. Exemptions. All-terrain vehicles exempt from registration are:
(1) vehicles owned and used by the United States, an Indian tribal government, the state, another state, or a political subdivision;
(2) vehicles that are registered in
another state or country that and have not been in this state for
more than 30 consecutive days or that are registered by an Indian tribal
government to a tribal member and have not been outside the tribal reservation
boundary for more than 30 consecutive days;
(3) vehicles that:
(i) are owned by a resident of another state or country that does not require registration of all-terrain vehicles;
(ii) have not been in this state for more than 30 consecutive days; and
(iii) are operated on state and grant-in-aid trails by a nonresident possessing a nonresident all-terrain vehicle state trail pass;
(4) vehicles used exclusively in organized track racing events; and
(5) vehicles that are 25 years old or older and were originally produced as a separate identifiable make by a manufacturer.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 11. Minnesota Statutes 2012, section 84.922, is amended by adding a subdivision to read:
Subd. 13. Grant-in-aid
trail contributions. (a) At
the time of registration, the commissioner shall offer a registrant the
opportunity to make a contribution for grant-in-aid trails. The commissioner shall issue a recognition
grant-in-aid trail sticker to registrants contributing $20 or more.
(b) Money contributed under this
subdivision shall be deposited in the state treasury and credited to the
all-terrain vehicle account and is dedicated for the grant-in-aid trail
program.
Sec. 12. Minnesota Statutes 2012, section 84.922, is amended by adding a subdivision to read:
Subd. 14. No
registration weekend. The
commissioner shall designate by rule one weekend each year when,
notwithstanding subdivision 1, an all-terrain vehicle may be operated on state
and grant-in-aid all-terrain vehicle trails without a registration issued under
this section. Nonresidents may
participate during the designated weekend without a state trail pass required
under section 84.9275.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. Minnesota Statutes 2012, section 84.9256, subdivision 1, is amended to read:
Subdivision 1. Prohibitions on youthful operators. (a) Except for operation on public road rights-of-way that is permitted under section 84.928 and as provided under paragraph (j), a driver's license issued by the state or another state is required to operate an all-terrain vehicle along or on a public road right-of-way.
(b) A person under 12 years of age shall not:
(1) make a direct crossing of a public road right-of-way;
(2) operate an all-terrain vehicle on a public road right-of-way in the state; or
(3) operate an all-terrain vehicle on public lands or waters, except as provided in paragraph (f).
(c) Except for public road rights-of-way of interstate highways, a person 12 years of age but less than 16 years may make a direct crossing of a public road right-of-way of a trunk, county state-aid, or county highway or operate on public lands and waters or state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety certificate issued by the commissioner and is accompanied by a person 18 years of age or older who holds a valid driver's license.
(d) To be issued an all-terrain
vehicle safety certificate, a person at least 12 years old, but less than 16
18 years old, must:
(1) successfully complete the safety education and training program under section 84.925, subdivision 1, including a riding component; and
(2) be able to properly reach and control the handle bars and reach the foot pegs while sitting upright on the seat of the all-terrain vehicle.
(e) A person at least 11 years of age may take the safety education and training program and may receive an all-terrain vehicle safety certificate under paragraph (d), but the certificate is not valid until the person reaches age 12.
(f) A person at least ten years of age but under 12 years of age may operate an all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if accompanied by a parent or legal guardian.
(g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
(h) A person under the age of 16 may not operate an all-terrain vehicle on public lands or waters or on state or grant-in-aid trails if the person cannot properly reach and control the handle bars and reach the foot pegs while sitting upright on the seat of the all-terrain vehicle.
(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than 16 years old, may make a direct crossing of a public road right-of-way of a trunk, county state-aid, or county highway or operate an all-terrain vehicle on public lands and waters or state or grant-in-aid trails if:
(1) the nonresident youth has in possession evidence of completing an all-terrain safety course offered by the ATV Safety Institute or another state as provided in section 84.925, subdivision 3; and
(2) the nonresident youth is accompanied by a person 18 years of age or older who holds a valid driver's license.
(j) A person 12 years of age but less
than 16 years of age may operate an all-terrain vehicle on the bank, slope, or
ditch of a public road right-of-way as permitted under section 84.928 if the
person:
(1) possesses a valid all-terrain
vehicle safety certificate issued by the commissioner; and
(2) is accompanied by a parent or legal
guardian on a separate all-terrain vehicle.
Sec. 14. Minnesota Statutes 2012, section 84.9275, subdivision 1, is amended to read:
Subdivision 1. Pass required; fee. (a) A tribal member exempt from registration under section 84.922, subdivision 1a, clause (2), or a nonresident may not operate an all-terrain vehicle on a state or grant-in-aid all-terrain vehicle trail unless the operator carries a valid nonresident all-terrain vehicle state trail pass in immediate possession. The pass must be available for inspection by a peace officer, a conservation officer, or an employee designated under section 84.0835.
(b) The commissioner of natural resources shall issue a pass upon application and payment of a $20 fee. The pass is valid from January 1 through December 31. Fees collected under this section, except for the issuing fee for licensing agents, shall be deposited in the state treasury and credited to the all-terrain vehicle account in the natural resources fund and, except for the electronic licensing system commission established by the commissioner under section 84.027, subdivision 15, must be used for grants-in-aid to counties and municipalities for all-terrain vehicle organizations to construct and maintain all-terrain vehicle trails and use areas.
(c) A nonresident all-terrain vehicle state trail pass is not required for:
(1) an all-terrain vehicle that is owned and used by the United States, another state, or a political subdivision thereof that is exempt from registration under section 84.922, subdivision 1a;
(2) a person operating an all-terrain vehicle only on the portion of a trail that is owned by the person or the person's spouse, child, or parent; or
(3) a nonresident operating an all-terrain vehicle that is registered according to section 84.922.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 15. Minnesota Statutes 2012, section 84.928, subdivision 1, is amended to read:
Subdivision 1. Operation on roads and rights-of-way. (a) Unless otherwise allowed in sections 84.92 to 84.928, a person shall not operate an all-terrain vehicle in this state along or on the roadway, shoulder, or inside bank or slope of a public road right-of-way of a trunk, county state-aid, or county highway.
(b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside bank or slope of a trunk, county state-aid, or county highway unless prohibited under paragraph (d) or (f).
(c) A person may operate a class 2 all-terrain
vehicle:
(1) within the public road
right-of-way of a county state-aid or county highway on the extreme right-hand
side of the road and left turns may be made from any part of the road if it is
safe to do so under the prevailing conditions, unless prohibited under
paragraph (d) or (f).;
(2) on the bank, slope, or ditch of a public road right-of-way of a trunk highway, but only to access businesses or make trail connections, and left turns may be made from any part of the road if it is safe to do so under the prevailing conditions, unless prohibited under paragraph (d) or (f); and
(3) A person may operate a class 2
all-terrain vehicle on the bank or ditch of a public road right-of-way:
(i) on a designated class 2
all-terrain vehicle trail.; or
(ii) to access businesses or make trail
connections when operation within the public road right-of-way is unsafe.
(d) A road authority as defined under section 160.02, subdivision 25, may after a public hearing restrict the use of all-terrain vehicles in the public road right-of-way under its jurisdiction.
(e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside bank or slope of a trunk, interstate, county state-aid, or county highway:
(1) that is part of a funded grant-in-aid trail; or
(2) when the all-terrain vehicle is owned by or operated under contract with a publicly or privately owned utility or pipeline company and used for work on utilities or pipelines.
(f) The commissioner may limit the use of a right-of-way for a period of time if the commissioner determines that use of the right-of-way causes:
(1) degradation of vegetation on adjacent public property;
(2) siltation of waters of the state;
(3) impairment or enhancement to the act of taking game; or
(4) a threat to safety of the right-of-way users or to individuals on adjacent public property.
The commissioner must notify the road authority as soon as it is known that a closure will be ordered. The notice must state the reasons and duration of the closure.
(g) A person may operate an all-terrain vehicle registered for private use and used for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or county highway in this state if the all-terrain vehicle is operated on the extreme right-hand side of the road, and left turns may be made from any part of the road if it is safe to do so under the prevailing conditions.
(h) A person shall not operate an all-terrain vehicle within the public road right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in the agricultural zone unless the vehicle is being used exclusively as transportation to and from work on agricultural lands. This paragraph does not apply to an agent or employee of a road authority, as defined in section 160.02, subdivision 25, or the Department of Natural Resources when performing or exercising official duties or powers.
(i) A person shall not operate an all-terrain vehicle within the public road right-of-way of a trunk, county state-aid, or county highway between the hours of one-half hour after sunset to one-half hour before sunrise, except on the right-hand side of the right-of-way and in the same direction as the highway traffic on the nearest lane of the adjacent roadway.
(j) A person shall not operate an all-terrain vehicle at any time within the right-of-way of an interstate highway or freeway within this state.
Sec. 16. Minnesota Statutes 2012, section 84D.01, subdivision 15a, is amended to read:
Subd. 15a. Service
provider. "Service
provider" means an individual who or entity that:
(1) decontaminates, installs,
or removes water-related equipment or structures into or from waters of
the state for hire or as a service provided
as a benefit of membership in a yacht club, boat club, marina, or similar
organization; or
(2) rents or leases water-related equipment that will be used in, placed into, or removed from waters of the state.
Service provider does not include a person working under the supervision of an individual with a valid service provider permit issued under section 84D.108.
Sec. 17. Minnesota Statutes 2012, section 84D.03, subdivision 4, is amended to read:
Subd. 4. Commercial fishing and turtle, frog, and crayfish harvesting restrictions in infested and noninfested waters. (a) All nets, traps, buoys, anchors, stakes, and lines used for commercial fishing or turtle, frog, or crayfish harvesting in an infested water that is designated because it contains invasive fish, invertebrates, or certifiable diseases, as defined in section 17.4982, may not be used in any other waters. If a commercial licensee operates in an infested water designated because it contains invasive fish, invertebrates, or certifiable diseases, as defined in section 17.4982, all nets, traps, buoys, anchors, stakes, and lines used for commercial fishing or turtle, frog, or crayfish harvesting in waters designated as infested with invasive fish, invertebrates, or certifiable diseases, as defined in section 17.4982, must be tagged with tags provided by the commissioner, as specified in the commercial licensee's license or permit. This tagging requirement does not apply to commercial fishing equipment used in Lake Superior.
(b) All nets, traps, buoys, anchors, stakes, and lines used for commercial fishing or turtle, frog, or crayfish harvesting in an infested water that is designated solely because it contains Eurasian water milfoil must be dried for a minimum of ten days or frozen for a minimum of two days before they are used in any other waters, except as provided in this paragraph. Commercial licensees must notify the department's regional or area fisheries office or a conservation officer before removing nets or equipment from an infested water designated solely because it contains Eurasian water milfoil and before resetting those nets or equipment in any other waters. Upon notification, the commissioner may authorize a commercial licensee to move nets or equipment to another water without freezing or drying, if that water is designated as infested solely because it contains Eurasian water milfoil.
(c) A commercial licensee must remove all
aquatic macrophytes from nets and other equipment when the nets and
equipment are removed from before placing the equipment into waters
of the state.
(d) The commissioner shall provide a commercial licensee with a current listing of designated infested waters at the time that a license or permit is issued.
Sec. 18. Minnesota Statutes 2012, section 84D.09, is amended to read:
84D.09
AQUATIC MACROPHYTES.
Subdivision 1. Transportation prohibited. Unless specifically authorized under a license or permit issued by the commissioner, a person may not transport aquatic macrophytes, except as provided in this section.
Subd. 2. Exceptions. Unless otherwise prohibited by law, a person may transport aquatic macrophytes:
(1) that are duckweeds in the family Lemnaceae;
(2) for disposal as part of a harvest or
control activity when specifically authorized under an aquatic plant management
permit pursuant to section 103G.615, under permit pursuant to section 84D.11,
or as specified by the commissioner;
(3) (2) for purposes of
constructing shooting or observation blinds in amounts sufficient for that
purpose, provided that the aquatic macrophytes are emergent and cut above the
waterline;
(4) (3) when legally purchased
or traded by or from commercial or hobbyist sources for aquarium, wetland or
lakeshore restoration, or ornamental purposes;
(5) (4) when harvested for
personal or commercial use if in a motor vehicle;
(6) (5) to the department, or another destination as the commissioner may direct, in a sealed container for purposes of identifying a species or reporting the presence of a species;
(7) when transporting commercial aquatic
plant harvesting or control equipment to a suitable location for purposes of
cleaning any remaining aquatic macrophytes;
(8) (6) that are wild rice
harvested under section 84.091;
(9) (7) in the form of
fragments of emergent aquatic macrophytes incidentally transported in or on
watercraft or decoys used for waterfowl hunting during the waterfowl season; or
(10) (8) when removing
water-related equipment from waters of the state for purposes of cleaning off
aquatic macrophytes before leaving a water access site.
Sec. 19. Minnesota Statutes 2012, section 84D.10, subdivision 1, is amended to read:
Subdivision 1. Launching
prohibited. A person may not place or
attempt to place into waters of the state water-related equipment, including
aquatic plant harvesting or control equipment that has aquatic macrophytes,
zebra mussels, or prohibited invasive species attached except as provided
in this section.
Sec. 20. Minnesota Statutes 2012, section 84D.10, subdivision 4, is amended to read:
Subd. 4. Persons transporting water-related equipment. (a) When leaving waters of the state a person must drain water-related equipment holding water and live wells and bilges by removing the drain plug before transporting the water-related equipment off the water access site or riparian property.
(b) Drain plugs, bailers, valves, or other devices used to control the draining of water from ballast tanks, bilges, and live wells must be removed or opened while transporting water-related equipment.
(c) Emergency response vehicles and equipment may be transported on a public road with the drain plug or other similar device replaced only after all water has been drained from the equipment upon leaving the water body.
(d) Portable bait containers used by licensed aquatic farms, portable bait containers when fishing through the ice except on waters designated infested for viral hemorrhagic septicemia, and marine sanitary systems are exempt from this subdivision.
(e) A person must not dispose of bait in waters of the state.
(f) A boat lift, dock, swim raft, or associated equipment that has been removed from any water body may not be placed in another water body until a minimum of 21 days have passed.
(g) A person who transports water that
is appropriated from noninfested surface water bodies and that is transported
by a commercial vehicle, excluding watercraft, or commercial trailer, which
vehicle or trailer is specifically designed and used for water hauling, is
exempt from paragraphs (a) and (b), provided that the person does not discharge
the transported water to other surface waters or within 100 feet of a surface
water body.
(h) A person transporting water from
noninfested surface water bodies for firefighting or emergencies that threaten
human safety or property is exempt from paragraphs (a) and (b).
Sec. 21. Minnesota Statutes 2012, section 84D.105, subdivision 2, is amended to read:
Subd. 2. Inspector authority. (a) The commissioner shall train and authorize individuals to inspect water-related equipment for aquatic macrophytes, aquatic invasive species, and water. The commissioner may enter into a delegation agreement with a tribal or local government where inspection authority as provided under paragraphs (b), (g), and (h) is delegated to tribal and local governments that assume all legal, financial, and administrative responsibilities for inspection programs on some or all public waters within their jurisdiction.
(b) Inspectors may visually and tactilely inspect watercraft and water-related equipment to determine whether aquatic invasive species, aquatic macrophytes, or water is present. If a person transporting watercraft or water-related equipment refuses to take required corrective actions or fails to comply with an order under section 84D.10, subdivision 3, an inspector who is not a licensed peace officer shall refer the violation to a conservation officer or other licensed peace officer.
(c) In addition to paragraph (b), a
conservation officer or other licensed peace officer may inspect any watercraft
or water-related equipment that is stopped at a water access site, any other
public location in the state, or a private location where the watercraft or
water-related equipment is in plain view, if the officer determines there is
reason to believe that aquatic invasive
species, aquatic macrophytes, or water is present on the watercraft or
water-related equipment.
(d) Conservation officers or other licensed peace officers may utilize check stations in locations, or in proximity to locations, where watercraft or other water-related equipment is placed into or removed from waters of the state. Any check stations shall be operated in a manner that minimizes delays to vehicles, equipment, and their occupants.
(e) Conservation officers or other licensed peace officers may order water-related equipment to be removed from a water body if the commissioner determines such action is needed to implement aquatic invasive species control measures.
(f) The commissioner may require mandatory inspections of water-related equipment before a person places or removes water-related equipment into or out of a water body. Inspection stations may be located at or near public water accesses or in locations that allow for servicing individual or multiple water bodies. The commissioner shall ensure that inspection stations:
(1) have adequate staffing to minimize delays to vehicles and their occupants;
(2) allow for reasonable travel times between public accesses and inspection stations if inspection is required before placing water-related equipment into a water body;
(3) are located so as not to create traffic delays or public safety issues;
(4) have decontamination equipment available to bring water-related equipment into compliance; and
(5) do not reduce the capacity or hours of operation of public water accesses.
(g) The commissioner may authorize tribal and local governments that enter into a delegation agreement with the commissioner to conduct mandatory inspections of water-related equipment at specified locations within a defined area before a person places or removes water-related equipment into or out of a water body. Tribal and local governments that are authorized to conduct inspections under this paragraph must:
(1) assume all legal, financial, and administrative responsibilities for implementing the mandatory inspections, alone or in agreement with other tribal or local governments;
(2) employ inspectors that have been trained and authorized by the commissioner;
(3) conduct inspections and decontamination measures in accordance with guidelines approved by the commissioner;
(4) have decontamination equipment available at inspection stations or identify alternative decontamination equipment locations within a reasonable distance of the inspection station that can bring water-related equipment into compliance;
(5) provide for inspection station locations that do not create traffic delays or public safety issues; and
(6) submit a plan approved by the commissioner according to paragraph (h).
(h) Plans required under paragraph (g) must address:
(1) no reduction in capacity or hours of operation of public accesses and fees that do not discourage or limit use;
(2) reasonable travel times between public accesses and inspection stations;
(3) adequate staffing to minimize wait times and provide adequate hours of operation at inspection stations and public accesses;
(4) adequate enforcement capacity;
(5) measures to address inspections of water-related equipment at public water accesses for commercial entities and private riparian land owners; and
(6) other elements as required by the commissioner to ensure statewide consistency, appropriate inspection and decontamination protocols, and protection of the state's resources, public safety, and access to public waters.
(i) A government unit authorized to conduct inspections under this subdivision must submit an annual report to the commissioner summarizing the results and issues related to implementing the inspection program.
(j) The commissioner may waive the plan requirement in paragraph (g) for inspection programs where authorized inspectors are placed directly at one or more water access sites, with no requirement for a person to travel from the water access for inspection or decontamination, and no local ordinance or other regulation requiring a mandatory inspection before placing watercraft or water-related equipment into a water body or after watercraft or water-related equipment are removed from a water body.
Sec. 22. Minnesota Statutes 2012, section 84D.11, is amended by adding a subdivision to read:
Subd. 2b. Transport
of water. The commissioner
may issue a permit under this section or an authorization under other licenses
or permits pursuant to sections 97C.801, 97C.811, and 103G.271 to allow the
transport of water in containers or water-related equipment specifically
designed and used for hauling water.
Sec. 23. Minnesota Statutes 2012, section 84D.11, is amended by adding a subdivision to read:
Subd. 2c. Transport
of aquatic macrophytes. The
commissioner may issue a permit to allow the transport of aquatic macrophytes
to locations specified in the permit for purposes of research, education, and
decontaminating equipment.
Sec. 24. Minnesota Statutes 2012, section 84D.11, is amended by adding a subdivision to read:
Subd. 2d. Special
permits. The commissioner may
issue special permits for the activities in this section. A special permit may be issued in the form of
a general permit to a governmental subdivision or to the general public to
conduct one or more activities under a single permit.
Sec. 25. Minnesota Statutes 2012, section 84D.13, subdivision 2, is amended to read:
Subd. 2. Cumulative remedy. The authority of conservation officers and other licensed peace officers to issue civil citations is in addition to other remedies available under law, except that the state may not seek penalties under any other provision of law for the incident subject to the citation.
Sec. 26. Minnesota Statutes 2012, section 84D.13, is amended by adding a subdivision to read:
Subd. 9. Training
for offenders. A person who
is convicted of or subject to a final order for a violation of this chapter involving water-related equipment must
successfully complete a training course as provided in section 86B.13.
EFFECTIVE
DATE. This section is
effective July 1, 2015.
Sec. 27. Minnesota Statutes 2012, section 85.41, is amended by adding a subdivision to read:
Subd. 6. Grant-in-aid
trail donations. (a) At the
time of purchasing the pass required under subdivision 1, a person may agree to
add a donation of any amount to the cross-country ski pass fee for grant-in-aid
cross-country ski trails. An additional
commission may not be assessed on the donation.
The commissioner shall offer the opportunity to make a donation under
this subdivision to all pass purchasers and shall issue a recognition
grant-in-aid trail sticker to a person contributing $20 or more.
(b) Money donated under this
subdivision shall be deposited in the cross-country ski account in the natural resources fund and shall be used for the
grant-in-aid program as provided under section 85.43, paragraph (a), clause
(1).
Sec. 28. Minnesota Statutes 2012, section 85.43, is amended to read:
85.43
DISPOSITION OF RECEIPTS; PURPOSE.
(a) Fees from cross-country ski passes and donations received under section 85.41, subdivision 6, shall be deposited in the state treasury and credited to a cross-country ski account in the natural resources fund and, except for the electronic licensing system commission established by the commissioner under section 84.027, subdivision 15, are appropriated to the commissioner of natural resources for the following purposes:
(1) grants-in-aid for cross-country ski trails to:
(i) counties and municipalities for construction and maintenance of cross-country ski trails; and
(ii) special park districts as provided in section 85.44 for construction and maintenance of cross-country ski trails; and
(2) administration of the cross-country ski trail grant-in-aid program.
(b) Development and maintenance of state cross-country ski trails are eligible for funding from the cross-country ski account if the money is appropriated by law.
Sec. 29. Minnesota Statutes 2012, section 85.46, subdivision 6, is amended to read:
Subd. 6. Disposition of receipts. Fees and donations collected under this section, except for the issuing fee, shall be deposited in the state treasury and credited to the horse pass account in the natural resources fund. Except for the electronic licensing system commission established by the commissioner under section 84.027, subdivision 15, the fees are appropriated to the commissioner of natural resources for trail acquisition, trail and facility development, and maintenance, enforcement, and rehabilitation of horse trails or trails authorized for horse use, whether for riding, leading, or driving, on land administered by the commissioner.
Sec. 30. Minnesota Statutes 2012, section 85.46, is amended by adding a subdivision to read:
Subd. 8. Trail
donations. At the time of
purchasing the pass required under subdivision 1, a person may agree to add a
donation of any amount to the horse pass fee for horse trails. An additional commission may not be assessed
on the donation. The commissioner shall
offer the opportunity to make a donation under this subdivision to all pass
purchasers and shall issue a recognition trail sticker to a person contributing
$20 or more.
Sec. 31. Minnesota Statutes 2012, section 86B.005, is amended by adding a subdivision to read:
Subd. 15a. Rice
boat. "Rice boat"
means a nonmotorized watercraft being used for harvesting wild rice.
Sec. 32. Minnesota Statutes 2012, section 86B.005, subdivision 18, is amended to read:
Subd. 18. Watercraft. "Watercraft" means any contrivance used or designed for navigation on water, except:
(1) a duck waterfowl boat
during the duck waterfowl hunting season seasons;
(2) a rice boat during the harvest season; or
(3) a seaplane.
Sec. 33. Minnesota Statutes 2012, section 86B.005, is amended by adding a subdivision to read:
Subd. 18a. Waterfowl
boat. "Waterfowl
boat" means a watercraft being used while hunting waterfowl.
Sec. 34. Minnesota Statutes 2012, section 86B.13, is amended by adding a subdivision to read:
Subd. 1a. Training
for offenders. A person who
is convicted of or subject to a final order for a violation of chapter 84D
involving water-related equipment must successfully complete the training
course in subdivision 1 before continuing operation or use of water-related
equipment.
EFFECTIVE
DATE. This section is effective
July 1, 2015.
Sec. 35. Minnesota Statutes 2012, section 86B.301, subdivision 2, is amended to read:
Subd. 2. Exemptions. A watercraft license is not required for:
(1) a watercraft that is covered by a license or number in full force and effect under federal law or a federally approved licensing or numbering system of another state, and has not been within this state for more than 90 consecutive days, which does not include days that a watercraft is laid up at dock over winter or for repairs at a Lake Superior port or another port in the state;
(2) a watercraft from a country other than the United States that has not been within this state for more than 90 consecutive days, which does not include days that a watercraft is laid up at dock over winter or for repairs at a Lake Superior port or another port in the state;
(3) a watercraft owned by the United States, an Indian tribal government, a state, or a political subdivision of a state, except watercraft used for recreational purposes;
(4) a ship's lifeboat;
(5) a watercraft that has been issued a valid marine document by the United States government;
(6) a duck waterfowl boat
during duck waterfowl hunting season;
(7) a rice boat during the harvest season;
(8) a seaplane; and
(9) a nonmotorized watercraft ten feet in
length or less; and
(10) a watercraft that is covered by a valid license or number issued by a federally recognized Indian tribe in the state under a federally approved licensing or numbering system and that is owned by a member of that tribe.
EFFECTIVE
DATE. Clause (10) is
effective January 1, 2015.
Sec. 36. Minnesota Statutes 2012, section 86B.501, subdivision 1, is amended to read:
Subdivision 1. Personal
flotation or lifesaving devices. (a)
Watercraft and duck waterfowl boats using the waters of this
state must be equipped with the number and type of personal flotation or
lifesaving devices prescribed by the commissioner.
(b) The commissioner may not:
(1) require sailboards to be equipped with personal flotation or lifesaving devices; or
(2) require persons on sailboards to wear personal flotation or lifesaving devices or have them readily available.
Sec. 37. Minnesota Statutes 2012, section 86B.825, subdivision 2, is amended to read:
Subd. 2. Exempt watercraft. A watercraft is not required to have a certificate of title if the watercraft is:
(1) owned by a manufacturer or dealer and held for sale;
(2) used by a manufacturer solely for testing;
(3) from a jurisdiction other than this state, temporarily using the waters of this state;
(4) owned by the United States, a state, this state, or a political subdivision;
(5) a duck waterfowl boat
used only during duck waterfowl hunting season;
(6) a rice boat used only during the wild rice harvesting season;
(7) owned by a person, firm, or corporation operating a resort as defined in section 157.15 or a recreational camping area as defined in section 327.14, subdivision 8, except with respect to a previously titled watercraft; or
(8) watercraft manufactured prior to August 1, 1979.
Sec. 38. Minnesota Statutes 2012, section 97A.135, subdivision 3, is amended to read:
Subd. 3. Cooperative farming agreements. On any public hunting, game refuge, wildlife management area, aquatic management area, or scientific and natural area lands, the commissioner may enter into written cooperative farming agreements on a sharecrop basis, without competitive bidding, for the purpose of wildlife and plant management. Cooperative farming agreements may also be used to allow pasturing of livestock. The agreements may provide for the bartering of a share of any crop, produced from these lands, for services or products that will enhance or benefit the management of state lands for plant and animal species. Cooperative farming agreements pursuant to this section shall not be considered leases for tax purposes under section 272.01, subdivision 2, or 273.19.
Sec. 39. Minnesota Statutes 2012, section 97A.420, subdivision 1, is amended to read:
Subdivision 1. Seizure. (a) An enforcement officer shall
immediately seize the license of a person who unlawfully takes, transports, or
possesses wild animals when the restitution value of the wild animals exceeds
$500. Except as provided in subdivisions
2, 4, and 5, the person may not use or obtain any license to take the
same type of wild animals involved, including a duplicate license, until an
action is taken under subdivision 6. If
the license seized under this paragraph was for a big game animal, the license
seizure applies to all licenses to take big game issued to the individual. If the license seized under this paragraph
was for small game animals, the license seizure applies to all licenses to take
small game issued to the individual.
(b) In addition to the license seizure under paragraph (a), if the restitution value of the wild animals unlawfully taken, possessed, or transported is $5,000 or more, all other game and fish licenses held by the person shall be immediately seized. Except as provided in subdivision 2, 4, or 5, the person may not obtain any game or fish license or permit, including a duplicate license, until an action is taken under subdivision 6.
(c) A person may not take wild animals covered by a license seized under this subdivision until an action is taken under subdivision 6.
Sec. 40. Minnesota Statutes 2012, section 97A.441, subdivision 6, is amended to read:
Subd. 6. Taking
deer; disabled veterans. A person
authorized to issue licenses must issue, without a fee, a license to take deer
with firearms or by archery to a resident that is a veteran, as defined in
section 197.447, and that has a 100 percent service connected disability as
defined by the United States Veterans Administration upon being furnished
satisfactory evidence. The
commissioner, upon request, must issue a permanent card documenting
satisfactory evidence of 100 percent permanently disabled status. The card serves as satisfactory evidence to
obtain a license under this subdivision at all agent locations.
Sec. 41. Minnesota Statutes 2012, section 97A.441, subdivision 6a, is amended to read:
Subd. 6a. Taking
small game; disabled veterans. A
person authorized to issue licenses must issue, without a fee, a license to
take small game to a resident who is a veteran, as defined in section 197.447,
and who has a 100 percent service connected disability as defined by the United
States Veterans Administration upon being furnished satisfactory evidence. The commissioner, upon request, must issue
a permanent card documenting satisfactory evidence of 100 percent permanently
disabled status. The card serves as
satisfactory evidence to obtain a license under this subdivision at all agent
locations.
Sec. 42. Minnesota Statutes 2012, section 97A.445, subdivision 1, is amended to read:
Subdivision 1. Angling;
Take a Kid Fishing Weekends. (a)
A resident age 16 years or older may take fish by angling without an angling or
license and may take fish by spearing from a dark house without a spearing
license and without a fish house or dark house license during one
three-day consecutive period of the open water angling season and one three-day
consecutive period of the ice angling season designated by rule of the
commissioner if the resident is accompanied by a child who is under age
16. The commissioner may, by written
order published in the State Register, establish the three-day consecutive
periods. The written order is not
subject to the rulemaking provisions of chapter 14 and section 14.386 does not
apply.
(b) The commissioner shall may
designate and publicize the three-day periods as "Take a Kid Fishing
Weekend" for the open water angling season and "Take a Kid Ice
Fishing Weekend" for the ice angling season. The commissioner shall announce the date
of each three-day weekend at least 30 days in advance of the date it occurs.
Sec. 43. Minnesota Statutes 2012, section 97A.451, is amended by adding a subdivision to read:
Subd. 2a. Residents
age 16 or 17; spearing. Residents
age 16 or over and under age 18 may take fish by spearing without a spearing license but must possess a fishing license
under section 97A.475, subdivision 6, clause (7).
Sec. 44. Minnesota Statutes 2012, section 97A.451, subdivision 3, is amended to read:
Subd. 3. Residents and nonresidents under age 16; small game. (a) A resident or nonresident under age 16 may not obtain a small game license but may take small game by firearms or bow and arrow without a license if the resident or nonresident is:
(1) age 14 or 15 and possesses a firearms safety certificate;
(2) age 13, possesses a firearms safety certificate, and is accompanied by a parent or guardian;
(3) age 13, 14, or 15, and possesses
an apprentice hunter validation, and is accompanied by a parent or guardian
who possesses a small game license that was not obtained using an apprentice
hunter validation as provided under section 97B.022; or
(4) age 12 or under and is accompanied by a parent or guardian.
(b) A resident under age 16 may take small game, other than wolves, by trapping without a small game license, but a resident 13 years of age or older must have a trapping license. A resident under age 13 may trap small game, other than wolves, without a trapping license, but may not register fisher, otter, bobcat, or pine marten unless the resident is at least age five. Any fisher, otter, bobcat, or pine marten taken by a resident under age five must be included in the limit of the accompanying parent or guardian.
(c) A resident or nonresident under age 13 must obtain a free turkey license to take turkey and may take a turkey without a firearms safety certificate if the resident or nonresident is accompanied by an adult parent or guardian who has a firearms safety certificate.
(d) A resident under age 13 may apply for a prairie chicken license and may take a prairie chicken without a firearms safety certificate if the resident is accompanied by an adult parent or guardian who has a firearms safety certificate.
Sec. 45. Minnesota Statutes 2012, section 97A.451, subdivision 3b, is amended to read:
Subd. 3b. Nonresidents
age 16 or over and under age 18; small game. (a) A nonresident age 16 or over
and under age 18 may take small game by firearms or archery and may obtain a
small game license at the youth fee under section 97A.475, subdivision 3,
paragraph (a), clause (14), if the nonresident possesses a firearms safety certificate
or an apprentice hunter validation as provided under section 97B.022.
(b) A nonresident under age 16 may take
small game by firearms or archery and may obtain a small game license without
paying the applicable fees under section 97A.475, subdivisions 3, 4, and 5, if
the nonresident is:
(1) age 14 or 15 and possesses a
firearms safety certificate;
(2) age 13, possesses a firearms safety
certificate, and is accompanied by a parent or guardian; or
(3) age 12 or under and is accompanied
by a parent or guardian.
Sec. 46. Minnesota Statutes 2012, section 97A.451, subdivision 4, is amended to read:
Subd. 4. Residents
and nonresidents under age 13 16; big game. (a) A resident or nonresident age 12,
13, 14, or 15 may not obtain a license to take big game unless the person
possesses a firearms safety certificate or an apprentice hunter validation as
provided under section 97B.022. A
nonresident age 12 or 13 must be accompanied by a parent or guardian to hunt
big game.
(b) A resident or nonresident
age ten or over and under age 13 11 must obtain a license under
paragraph (c) and may take big game, provided the person is under the
direct supervision of a parent or guardian where the parent or guardian is
within immediate reach.
(c) A resident or nonresident
age ten or over and under age 13, 11, or 12 must obtain a license
to take big game and may obtain the license without paying the fee required
under section 97A.475, subdivision 2 or 3.
Sec. 47. Minnesota Statutes 2012, section 97A.451, subdivision 5, is amended to read:
Subd. 5. Nonresident youth; angling. (a) A nonresident under age 16 may:
(1) take fish by angling without a license if a parent or guardian has a fishing license. Fish taken by a nonresident under age 16 without a license must be included in the limit of the parent or guardian;
(2) purchase a youth fishing license under section 97A.475, subdivision 7, paragraph (a), clause (8), and possess a limit of fish; or
(3) be included under a nonresident family angling license and possess a limit of fish.
(b) A nonresident age 16 or over and under age 18 must purchase a youth license to angle under section 97A.475, subdivision 7, paragraph (a), clause (8).
(c) Nonresidents age 16 or over and
under age 18 may take fish by spearing without a spearing license but must
possess a fishing license under section 97A.475, subdivision 7, paragraph (a),
clause (8).
(d) Nonresidents under age 16 may take
fish by spearing without a spearing or angling license.
(e) Limits for fish taken by spearing
must comply with one of the options listed under paragraph (a).
Sec. 48. Minnesota Statutes 2012, section 97A.475, subdivision 2, is amended to read:
Subd. 2. Resident hunting. Fees for the following licenses, to be issued to residents only, are:
(1) for persons age 18 or over and under age 65 to take small game, $15.50;
(2) for persons age 65 or over, $7 to take small game;
(3) for persons age 18 or over to take turkey, $26;
(4) for persons age 13 or over and under age 18 to take turkey, $5;
(5) for persons age 18 or over to take deer with firearms during the regular firearms season, $30;
(6) for persons age 18 or over to take deer by archery, $30;
(7) for persons age 18 or over to take deer by muzzleloader during the muzzleloader season, $30;
(8) to take moose, for a party of not more than six persons, $356;
(9) to take bear, $44;
(10) to take elk, for a party of not more than two persons, $287;
(11) to take Canada geese during a special season, $4;
(12) to take prairie chickens, $23;
(13) for
persons age 13 or over and under age 18 to take deer with firearms during the
regular firearms season, $5;
(14) for persons age 13 or over and under age 18 to take deer by archery, $5;
(15) for
persons age 13 or over and under age 18 to take deer by muzzleloader during the
muzzleloader season, $5;
(16) for persons age 18 or over to take small game for a consecutive 72-hour period selected by the licensee, $19, of which an amount equal to: one-half of the fee for the migratory waterfowl stamp under subdivision 5, clause (1), shall be deposited in the waterfowl habitat improvement account under section 97A.075, subdivision 2; one-half of the fee for the pheasant stamp under subdivision 5, clause (2), shall be deposited in the pheasant habitat improvement account under section 97A.075, subdivision 4; and one-half of the small game surcharge under subdivision 4, shall be deposited in the wildlife acquisition account;
(17) for persons age 16 or over and under
age 18 to take small game, $5; and
(18) to take wolf, $30.;
(19) for persons age 12 and under to
take turkey, no fee;
(20) for persons age 10, 11, or 12 to
take deer by firearm, no fee;
(21) for persons age 10, 11, or 12 to
take deer by archery, no fee; and
(22) for persons age 10, 11, or 12 to
take deer by muzzleloader during the muzzleloader season, no fee.
Sec. 49. Minnesota Statutes 2012, section 97A.475, subdivision 8, is amended to read:
Subd. 8. Minnesota sporting; super sports. (a) The commissioner shall issue Minnesota sporting licenses to residents only. The licensee may take fish by angling and small game. The fee for the license is:
(1) for an individual, $31.50; and
(2) for a combined license for a married couple to take fish and for one spouse to take small game, $45.50.
(b) The commissioner shall issue Minnesota super sports licenses to residents only. The licensee may take fish by angling, including trout; small game, including pheasant and waterfowl; and deer by firearms or muzzleloader or by archery. The fee for the super sports license, including all required stamp validations is:
(1) for an individual age 18 or over, $92.50
$86.50; and
(2) for a combined license for a married
couple to take fish, including the trout and salmon stamp validation, and for
one spouse to take small game, including pheasant and waterfowl, and deer, $118.50
$110.50.
(c) Revenue for the stamp endorsements under paragraph (b) shall be deposited according to section 97A.075, subdivisions 2, 3, and 4.
(d) Revenue for the deer license endorsement under paragraph (b) shall be deposited according to section 97A.075, subdivision 1.
Sec. 50. Minnesota Statutes 2012, section 97A.485, subdivision 6, is amended to read:
Subd. 6. Licenses to be sold and issuing fees. (a) Persons authorized to sell licenses under this section must issue the following licenses for the license fee and the following issuing fees:
(1) to take deer or bear with firearms and by archery, the issuing fee is $1;
(2) Minnesota sporting, the issuing fee is $1;
(3) to take
small game, to take fish by angling or by spearing, and to trap fur-bearing
animals, the issuing fee is $1;
(4) to apply for a limited hunt
drawing, the issuing fee is $1 unless the application requires a license
purchase at the time of application and the license purchase requires an
application fee;
(5) for a prairie chicken license, the
issuing fee is $1;
(6) for a turkey license, the issuing
fee is $1;
(7) for an elk license, the issuing fee
is $1;
(8) for a moose license, the issuing
fee is $1;
(9) for a wolf license, the issuing fee
is $1;
(4) (10) for a stamp
validation that is not issued simultaneously with a license, an issuing fee of
50 cents may be charged at the discretion of the authorized seller;
(5) (11) for stamp validations issued simultaneously with a license, there is no fee;
(6) (12) for licenses, seals,
tags, or coupons issued without a fee under section 97A.441 or 97A.465, an
the issuing fee of 50 cents may be charged at the discretion of the
authorized seller is $1;
(7) (13) for lifetime
licenses, there is no fee; and
(8) (14) for all other
licenses, permits, renewals, or applications or any other transaction through
the electronic licensing system under this chapter or any other chapter when an
issuing fee is not specified, an issuing fee of 50 cents $1 may
be charged at the discretion of the authorized seller.
(b) Only one issuing fee may be collected when selling more than one stamp in the same transaction after the end of the season for which the stamp was issued.
(c) The agent shall keep the issuing fee as a commission for selling the licenses.
(d) The commissioner shall collect the issuing fee on licenses sold by the commissioner.
(e) A license, except stamps, must state the amount of the issuing fee and that the issuing fee is kept by the seller as a commission for selling the licenses.
(f) For duplicate licenses, including licenses issued without a fee, the issuing fees are:
(1) for licenses to take big game, 75 cents; and
(2) for other licenses, 50 cents.
(g) The commissioner may issue one-day angling licenses in books of ten licenses each to fishing guides operating charter boats upon receipt of payment of all license fees, excluding the issuing fee required under this section. Copies of sold and unsold licenses shall be returned to the commissioner. The commissioner shall refund the charter boat captain for the license fees of all unsold licenses. Copies of sold licenses shall be maintained by the commissioner for one year.
Sec. 51. Minnesota Statutes 2012, section 97B.0215, is amended to read:
97B.0215
PARENT OR GUARDIAN RESPONSIBILITY; VIOLATION.
A parent or legal guardian of a
minor may not knowingly direct, allow, or permit the minor to hunt without the
required license, permit, training, or certification, or in violation of the
game and fish laws.
Sec. 52. Minnesota Statutes 2012, section 97B.022, subdivision 2, is amended to read:
Subd. 2. Apprentice hunter validation requirements. (a) A resident or nonresident born after December 31, 1979, who is age 12 or over and who does not possess a hunter education firearms safety certificate may be issued an apprentice hunter validation. An apprentice hunter validation may be purchased two license years in a lifetime and used to obtain hunting licenses during the same license year that the validation is purchased.
(b) An individual in possession of an
apprentice hunter validation may hunt small game, deer, and bear only when
accompanied by an adult licensed to hunt who has a valid license to hunt
the same species of game in Minnesota and whose license was not
obtained using an apprentice hunter validation.
(c) When an individual in
possession of an apprentice hunter validation is hunting turkey or prairie
chicken under paragraph (b), the accompanying adult may be licensed for another
permit area or time period but must be licensed for the same season as the
apprentice hunter. If the accompanying
adult is not licensed for the same permit area or time period as the apprentice
hunter, the accompanying adult may not shoot or possess a firearm or bow while
accompanying the apprentice hunter under this paragraph.
(d) An apprentice hunter validation holder must obtain all required licenses and stamps.
Sec. 53. Minnesota Statutes 2012, section 97B.055, subdivision 2, is amended to read:
Subd. 2. Restrictions
related to motor vehicles. A person
may not take a wild animal with a firearm or by archery from a motor vehicle
except as permitted in this section. Notwithstanding
section 97B.091, a person may transport a bow uncased while in an electric
motor-powered boat a motorized watercraft and may take rough fish
while in the boat as provided in section 97C.376, subdivision 3.
Sec. 54. Minnesota Statutes 2012, section 97B.112, is amended to read:
97B.112
SPECIAL HUNTS FOR YOUTH.
The commissioner may by rule establish
criteria, special seasons, and limits for youth and adult hunters to
take big game and small game by firearms or archery in designated areas or
times as part of the agency's overall effort in hunter recruitment and
retention. The criteria may also
include provisions for an unlicensed adult to assist a youth hunter
during a special season or special hunt established under this section.
Sec. 55. Minnesota Statutes 2012, section 97C.341, is amended to read:
97C.341
CERTAIN AQUATIC LIFE PROHIBITED FOR BAIT.
(a) A person may not use live minnows
imported from outside of the state, game fish, goldfish, or carp for bait. Notwithstanding paragraphs (b) and (d),
the commissioner may, by written order published in the State Register, adopt
rules to authorize the use of game fish eggs as bait in Lake
Superior and its tributaries below the posted boundaries and prescribe
restrictions on their use. The order
is exempt from the rulemaking provisions of chapter 14 and section 14.386 does
not apply.
(b) A person may not import or possess live, frozen, or processed bait from known waters where viral hemorrhagic septicemia has been identified as being present: (1) unless the bait has been processed to inactivate viral hemorrhagic septicemia in a manner prescribed by rules adopted by the commissioner; or (2) except as provided in paragraph (c). For purposes of this paragraph, "bait" includes fish, aquatic worms, amphibians, invertebrates, and insects used for taking wild animals in waters of the state.
(c) Cisco and rainbow smelt taken under rules adopted by the commissioner may be used as:
(1) fresh or frozen bait only on Lake Superior; or
(2) bait that has been processed to inactivate viral hemorrhagic septicemia in a manner prescribed by rules adopted by the commissioner.
(d) To ensure that frozen or dead fish being brought into the state are not in violation of paragraph (b), the following paperwork must accompany the shipment. Documents must be open for inspection by the commissioner at any reasonable time. All documents must be available to purchasers of these bait items. Each container or package of frozen or dead fish must have the following information:
(1) water body source;
(2) lot number;
(3) company contact including name, phone, and address;
(4) date of packaging and labeling; and
(5) valid negative fish health certification from the source water body.
Sec. 56. Minnesota Statutes 2012, section 97C.345, subdivision 1, is amended to read:
Subdivision 1. Period
when use prohibited. Except as
specifically authorized, a person may not take fish with a spear from
the third Monday in February to April 30 with a spear, the Friday
before the last Saturday in April and may not take fish with a fish trap,
net, dip net, seine, or other device capable of taking fish from the third
Monday in February to April 30.
Sec. 57. Minnesota Statutes 2012, section 97C.345, subdivision 2, is amended to read:
Subd. 2. Possession. (a) Except as specifically authorized, a person may not possess a spear, fish trap, net, dip net, seine, or other device capable of taking fish on or near any waters. Possession includes personal possession and in a vehicle.
(b) A person may possess spears, dip
nets, and spear guns allowed under section 97C.381 on or near waters
between sunrise and sunset from May 1 to the last Sunday in February, or as
otherwise prescribed by the commissioner.
A person may possess a spear on or near waters between sunrise and
sunset from the last Saturday in April to the last Sunday in February, or as
otherwise prescribed by the commissioner.
Sec. 58. Minnesota Statutes 2012, section 97C.375, is amended to read:
97C.375
TAKING ROUGH FISH BY SPEARING.
(a) A resident or nonresident may take rough fish by spearing according to paragraph (b) and during the times, in waters, and in the manner prescribed by the commissioner.
(b) Suckers may be taken by spearing
from the last Saturday in April through the last Sunday in February.
Sec. 59. Minnesota Statutes 2012, section 97C.376, subdivision 1, is amended to read:
Subdivision 1. Season. (a) The regular bow fishing
season for residents and nonresidents is from May 1 the last Saturday
in April to the last Sunday in February at any time of the day.
(b) The early bow fishing season for
residents and nonresidents is open only south of State Highway 210 from the
Monday after the last Sunday in February to the Friday before the last Saturday
in April at any time of the day. During
the early season, a person may bow fish:
(1) only from a boat; and
(2) only while on a lake or on the
Mississippi, Minnesota, or St. Croix River.
Sec. 60. Minnesota Statutes 2012, section 97C.376, subdivision 2, is amended to read:
Subd. 2. Possession
of bows and arrows. A person may
possess bows and arrows for the purposes of bow fishing on or within 100 feet
of waters at any time from May 1 the last Saturday in April to
the last Sunday in February and at other
times on lakes and rivers south of State Highway 210 as specified in
subdivision 1, paragraph (b), subject to local ordinances. A person must take reasonable measures to
retrieve arrows and wounded fish.
Sec. 61. Minnesota Statutes 2012, section 97C.376, subdivision 3, is amended to read:
Subd. 3. Nighttime
restrictions on motors. (a)
From sunset to sunrise, a person bow fishing with the assistance of a
gasoline-powered motor must use a four-stroke engine powered generator. the noise limits for total noise while bow
fishing from sunset to sunrise shall must not exceed a noise
level of 65 decibels on the A scale measured at a distance of 50 feet from the
motorboat or equivalent noise levels at other distances as specified by the
commissioner in a pass-by test or 67 decibels on the A scale measured at
idle in a stationary test at least four feet above the water and at least four
feet behind the transom of the motorboat being tested.
(b) The noise limits under paragraph
(a) shall be determined under a test procedure approved by the commissioner
under section 86B.321, subdivision 2.
(c) The noise limits in paragraph (a)
do not preclude enforcement of other laws relating to motorboat noise.
(d) The noise levels under section 86B.321 apply to persons traveling to and from bow fishing sites from sunset to sunrise.
Sec. 62. RULEMAKING;
GAME FISH EGGS AS BAIT.
(a)
The commissioner of natural resources shall amend Minnesota Rules, part
6262.0100, by adding a subpart to read:
"Spawn bags may be bought or sold
only if the bags are made with:
A.
fish eggs from a licensed aquaculture facility; or
B.
fish eggs that are:
(1) legally taken from a source outside
Minnesota that has been certified disease-free; and
(2) preserved and labeled as required
under a bait preservation permit. Records
must be maintained as required for bait preservation permits."
(b) The commissioner of natural
resources shall amend Minnesota Rules, part 6262.0300, subpart 5, to read:
"A. Except as provided in this subpart, the
taking of fish for bait purposes from all Minnesota waters of Lake Superior and
all waters of the St. Louis River downstream of the Fond du Lac Dam in St. Louis
and Carlton Counties, including any and all outflows, estuaries, streams,
creeks, or waters adjacent to or flowing into these waters is prohibited.
B.
Notwithstanding Minnesota Statutes, sections 84D.03, subdivision 3, and
97C.341, paragraph (b), eggs from legally taken and possessed trout harvested
from Lake Superior or its tributaries below the posted boundaries may be used
to make spawn bags for bait as provided in this item and as authorized in
Minnesota Statutes, section 97C.341, paragraph (a). Spawn bags may be used only in Lake Superior
and its tributaries below the posted boundaries and may be transported to and
from Lake Superior or its tributaries below the posted boundaries."
(c) The commissioner may use
the good cause exemption under Minnesota Statutes, section 14.388, subdivision
1,
Sec. 63. RULEMAKING;
WILDLIFE RESTITUTION VALUE FOR SANDHILL CRANES.
(a) The commissioner of natural
resources shall amend Minnesota Rules, part 6133.0030, by adding a new item
establishing the wildlife restitution value of $200 for a sandhill crane.
(b)
The commissioner may use the good cause exemption under Minnesota Statutes,
section 14.388, subdivision 1, clause (3), to adopt rules under this
section, and Minnesota Statutes, section 14.386, does not apply except as
provided under Minnesota Statutes, section 14.388.
Sec. 64. RULEMAKING;
SPEARING ROUGH FISH.
The commissioner of natural resources
shall amend Minnesota Rules, part 6262.0600, to make seasons for spearing rough
fish consistent with the date changes in sections 56 to 58. The commissioner may use the good cause
exemption under Minnesota Statutes, section 14.388, subdivision 1, clause (3),
to adopt rules under this section, and Minnesota Statutes, section 14.386, does
not apply except as provided under Minnesota Statutes, section 14.388.
Sec. 65. RULEMAKING;
REMOVING SPEARING RESTRICTIONS.
The commissioner of natural resources
shall amend Minnesota Rules, part 6264.0400, subparts 8, 27, 74, 75, and 76, to
remove restrictions on taking fish by spearing for the following lakes: Big Mantrap, Lobster, Beers, West Battle,
Deer, Cross, Sugar, Eagle, Owasso, North Star, Moose, and Spider. The commissioner may use the good cause
exemption under Minnesota Statutes, section 14.388, to adopt rules under this
section, and Minnesota Statutes, section 14.386, does not apply, except as
provided under Minnesota Statutes, section 14.388.
Sec. 66. REVISOR'S
INSTRUCTION.
The revisor of statutes shall replace
the term "duck boat" with the term "waterfowl boat" where
the term appears in Minnesota Rules, part 6110.1200, subpart 3.
Sec. 67. REPEALER.
(a)
Minnesota Statutes 2012, sections 84D.01, subdivision 22; 97A.451, subdivision
4a; and 97C.346, are repealed.
(b) Laws 2011, First Special Session
chapter 2, article 5, section 69, is repealed.
EFFECTIVE
DATE. Paragraph (b) is
effective retroactively from July 1, 2012."
Delete
the title and insert:
"A bill for an act relating to natural resources; modifying commissioner's authorities and duties; modifying definitions; providing for donations to grant-in-aid trail programs; modifying operating restrictions for all-terrain vehicles; modifying invasive species provisions; modifying watercraft provisions; providing for certain license seizures; modifying game and fish license provisions; modifying requirements for taking game and fish; providing for certain all-terrain vehicle registration and watercraft license exemptions; modifying nonresident all-terrain vehicle state trail pass requirements; requiring rulemaking; amending Minnesota Statutes 2012, sections 84.027, subdivision 13, by adding subdivisions; 84.788, by adding a subdivision; 84.794, subdivision 1; 84.798, by adding a
subdivision; 84.803, subdivision 1; 84.82, by adding a subdivision; 84.83, subdivision 2; 84.922, subdivision 1a, by adding subdivisions; 84.9256, subdivision 1; 84.9275, subdivision 1; 84.928, subdivision 1; 84D.01, subdivision 15a; 84D.03, subdivision 4; 84D.09; 84D.10, subdivisions 1, 4; 84D.105, subdivision 2; 84D.11, by adding subdivisions; 84D.13, subdivision 2, by adding a subdivision; 85.41, by adding a subdivision; 85.43; 85.46, subdivision 6, by adding a subdivision; 86B.005, subdivision 18, by adding subdivisions; 86B.13, by adding a subdivision; 86B.301, subdivision 2; 86B.501, subdivision 1; 86B.825, subdivision 2; 97A.135, subdivision 3; 97A.420, subdivision 1; 97A.441, subdivisions 6, 6a; 97A.445, subdivision 1; 97A.451, subdivisions 3, 3b, 4, 5, by adding a subdivision; 97A.475, subdivisions 2, 8; 97A.485, subdivision 6; 97B.0215; 97B.022, subdivision 2; 97B.055, subdivision 2; 97B.112; 97C.341; 97C.345, subdivisions 1, 2; 97C.375; 97C.376, subdivisions 1, 2, 3; repealing Minnesota Statutes 2012, sections 84D.01, subdivision 22; 97A.451, subdivision 4a; 97C.346; Laws 2011, First Special Session chapter 2, article 5, section 69."
The
motion prevailed and the amendment was adopted.
Dill moved to amend S. F. No. 796, the sixth engrossment, as amended, as follows:
Page 24, after line 9, insert:
"Sec. 49. Minnesota Statutes 2012, section 97A.475, subdivision 3, is amended to read:
Subd. 3. Nonresident hunting. (a) Fees for the following licenses, to be issued to nonresidents, are:
(1) for persons age 18 or over to take small game, $90.50;
(2) for persons age 18 or over to take deer with firearms during the regular firearms season, $160;
(3) for persons age 18 or over to take deer by archery, $160;
(4) for persons age 18 or over to take deer by muzzleloader during the muzzleloader season, $160;
(5) to take bear, $225;
(6) for persons age 18 or over to take turkey, $91;
(7) for persons age 13 or over and under age
18 to take turkey, $13 $5;
(8) to take raccoon or bobcat, $178;
(9) to take Canada geese during a special season, $4;
(10) for persons age 13 or over and under age
18 to take deer with firearms during the regular firearms season in any open
season option or time period, $15 $5;
(11) for persons age 13 or over and under age
18 to take deer by archery, $15 $5;
(12) for persons age 13 or over and under age
18 to take deer during the muzzleloader season, $15 $5;
(13) for persons age 18 or over to take small game for a consecutive 72-hour period selected by the licensee, $75, of which an amount equal to: one-half of the fee for the migratory waterfowl stamp under subdivision 5, clause (1), shall be deposited in the waterfowl habitat improvement account under section 97A.075, subdivision 2; one-half of
the fee for the pheasant stamp under subdivision 5, clause (2), shall be deposited in the pheasant habitat improvement account under section 97A.075, subdivision 4; and one-half of the small game surcharge under subdivision 4, shall be deposited into the wildlife acquisition account;
(14) for persons age 16 and over and
under age 18 or 17 to take small game, $15 $5; and
(15) to take wolf, $250.;
(16) for persons age 12 and under to
take turkey, no fee;
(17) for persons age ten, 11, and 12 to
take deer by firearm, no fee;
(18) for persons age ten, 11, or 12 to
take deer by archery, no fee; and
(19) for persons age ten, 11, or 12 to
take deer by muzzleloader during the muzzleloader season, no fee.
(b) A $5 surcharge shall be added to nonresident hunting licenses issued under paragraph (a), clauses (1) to (6) and (8). An additional commission may not be assessed on this surcharge."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
The
motion prevailed and the amendment was adopted.
Hackbarth moved to amend S. F. No. 796, the sixth engrossment, as amended, as follows:
Page 3, delete section 4
Page 4, delete sections 5 to 8
Page 5, delete sections 9 and 11
Page 6, line 8, delete "rule" and insert "written order published in the State Register"
Page 8, delete section 15, and insert:
"Sec. 15. Minnesota Statutes 2012, section 84.928, subdivision 1, is amended to read:
Subdivision 1. Operation on roads and rights-of-way. (a) Unless otherwise allowed in sections 84.92 to 84.928, a person shall not operate an all-terrain vehicle in this state along or on the roadway, shoulder, or inside bank or slope of a public road right-of-way of a trunk, county state-aid, or county highway.
(b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside bank or slope of a trunk, county state-aid, or county highway unless prohibited under paragraph (d) or (f).
(c) A person may operate a class 2
all-terrain vehicle:
(1) within the public road
right-of-way of a county state-aid or county highway on the extreme right-hand
side of the road and left turns may be made from any part of the road if it is
safe to do so under the prevailing conditions, unless prohibited under
paragraph (d) or (f). A person may
operate a class 2 all-terrain vehicle;
(2) on the bank, slope, or ditch of a
public road right-of-way of a trunk, county state-aid, or county highway but
only to access businesses or make trail connections, and left turns may be made
from any part of the road if it is safe to do so under the prevailing
conditions, unless prohibited under paragraph (d) or (f); and
(3) on the bank or ditch of a public road right-of-way on a designated class 2 all-terrain vehicle trail.
(d) A road authority as defined under section 160.02, subdivision 25, may after a public hearing restrict the use of all-terrain vehicles in the public road right-of-way under its jurisdiction.
(e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside bank or slope of a trunk, interstate, county state-aid, or county highway:
(1) that is part of a funded grant-in-aid trail; or
(2) when the all-terrain vehicle is owned by or operated under contract with a publicly or privately owned utility or pipeline company and used for work on utilities or pipelines.
(f) The commissioner may limit the use of a right-of-way for a period of time if the commissioner determines that use of the right-of-way causes:
(1) degradation of vegetation on adjacent public property;
(2) siltation of waters of the state;
(3) impairment or enhancement to the act of taking game; or
(4) a threat to safety of the right-of-way users or to individuals on adjacent public property.
The commissioner must notify the road authority as soon as it is known that a closure will be ordered. The notice must state the reasons and duration of the closure.
(g) A person may operate an all-terrain vehicle registered for private use and used for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or county highway in this state if the all-terrain vehicle is operated on the extreme right-hand side of the road, and left turns may be made from any part of the road if it is safe to do so under the prevailing conditions.
(h) A person shall not operate an all-terrain vehicle within the public road right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in the agricultural zone unless the vehicle is being used exclusively as transportation to and from work on agricultural lands. This paragraph does not apply to an agent or employee of a road authority, as defined in section 160.02, subdivision 25, or the Department of Natural Resources when performing or exercising official duties or powers.
(i) A person shall not operate an all-terrain vehicle within the public road right-of-way of a trunk, county state-aid, or county highway between the hours of one-half hour after sunset to one-half hour before sunrise, except on the right-hand side of the right-of-way and in the same direction as the highway traffic on the nearest lane of the adjacent roadway.
(j) A person shall not operate an all-terrain vehicle at any time within the right-of-way of an interstate highway or freeway within this state."
Page 16, delete sections 27 to 29
Page 17, delete section 30
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
The
motion prevailed and the amendment was adopted.
Hansen and Dill moved to amend S. F. No. 796, the sixth engrossment, as amended, as follows:
Page 29, after line 21, insert:
"Sec. 62. ANTLER
POINT RESTRICTIONS.
The commissioner of natural resources may not impose an antler point restriction in areas outside the Series 300 deer permit areas, other than that imposed under Minnesota Rules, part 6232.0200, subpart 6, unless the legislature approves the antler point restriction."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
The
motion prevailed and the amendment was adopted.
Wills moved to amend S. F. No. 796, the sixth engrossment, as amended, as follows:
Page 17, after line 10, insert:
"Sec. 31. Minnesota Statutes 2012, section 85A.02, subdivision 10, is amended to read:
Subd. 10. Wild
animal exemption. (a) The
board shall not be subject to the provisions of chapters 17, 19, 97, 98, 99,
100, and 101 35, 97A, 97B, and 97C, and section 343.21, subdivision
8, relating to purchase, barter, sale, possession, breeding, or transporting
wild animals, but must comply with paragraph (b).
(b) The board must request a permit from the Board of Animal Health for any exemption from the provisions of chapter 35 or rules adopted thereunder and from the Department of Natural Resources for any exemption from the provisions of chapters 97A, 97B, 97C, or rules adopted thereunder."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
The
motion prevailed and the amendment was adopted.
S. F. No. 796, A bill for an act relating to natural resources; modifying game and fish laws; modifying trespassing laws; providing for certain license seizure; modifying fees; modifying invasive species laws; modifying watercraft provisions; modifying exemptions for the Minnesota Zoological Garden; modifying state fire code; requiring rulemaking; amending Minnesota Statutes 2012, sections 84.027, subdivision 13, by adding subdivisions; 84D.01, subdivision 15a; 84D.03, subdivision 4; 84D.09; 84D.10, subdivisions 1, 4; 84D.105, subdivision 2; 84D.11, by adding subdivisions; 84D.13, subdivision 2, by adding a subdivision; 85A.02, subdivision 10; 86B.005, subdivision 18, by adding subdivisions; 86B.13, by adding a subdivision; 86B.301, subdivision 2; 86B.501, subdivision 1; 86B.825, subdivision 2; 97A.051, subdivision 2; 97A.135, subdivision 3; 97A.420, subdivision 1; 97A.441, subdivision 6; 97A.445, subdivision 1; 97A.451, subdivisions 3, 3b, 4, 5, by adding a subdivision; 97A.475, subdivisions 2, 3, 8; 97A.485, subdivision 6; 97B.001, subdivisions 3, 4; 97B.0215; 97B.022, subdivision 2; 97B.031, subdivision 5; 97B.055, subdivision 2; 97B.071; 97B.112; 97C.341; 97C.345, subdivisions 1, 2; 97C.376, subdivisions 1, 2, 3; 299F.011, by adding a subdivision; repealing Minnesota Statutes 2012, sections 84D.01, subdivision 22; 97A.451, subdivision 4a; 97C.346.
The bill was read for the third time, as
amended, and placed upon its final passage.
The question was taken on the passage of
the bill and the roll was called. There
were 123 yeas and 0 nays as follows:
Those who voted in the affirmative were:
Albright
Allen
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Barrett
Beard
Benson, J.
Benson, M.
Bernardy
Bly
Brynaert
Carlson
Clark
Cornish
Daudt
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Dill
Dorholt
Drazkowski
Erhardt
Erickson, R.
Erickson, S.
Fabian
Falk
Fischer
FitzSimmons
Franson
Freiberg
Fritz
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hansen
Hausman
Hertaus
Holberg
Hoppe
Hornstein
Hortman
Howe
Huntley
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kieffer
Kiel
Laine
Leidiger
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McDonald
McNamar
McNamara
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Myhra
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Paymar
Persell
Petersburg
Poppe
Pugh
Quam
Radinovich
Runbeck
Savick
Sawatzky
Schoen
Schomacker
Scott
Selcer
Simon
Simonson
Slocum
Sundin
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Wagenius
Ward, J.A.
Ward, J.E.
Wills
Winkler
Woodard
Yarusso
Zellers
Zerwas
Spk. Thissen
The
bill was passed, as amended, and its title agreed to.
S. F. No. 1276, A bill for an act relating to real estate; requiring loss mitigation by mortgage lenders and servicers; amending Minnesota Statutes 2012, sections 580.02; 580.041, subdivision 1b; 582.25; 582.27, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 582.
The bill was read for the third time and
placed upon its final passage.
The question was taken on the passage of the bill and the
roll was called. There were 123 yeas and
0 nays as follows:
Those who voted in the affirmative were:
Albright
Allen
Anderson, M.
Anderson, P.
Anderson, S.
Anzelc
Atkins
Barrett
Beard
Benson, J.
Benson, M.
Bernardy
Bly
Brynaert
Carlson
Clark
Cornish
Daudt
Davids
Davnie
Dean, M.
Dehn, R.
Dettmer
Dill
Dorholt
Drazkowski
Erhardt
Erickson, R.
Erickson, S.
Fabian
Falk
Fischer
FitzSimmons
Franson
Freiberg
Fritz
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hansen
Hausman
Hertaus
Holberg
Hoppe
Hornstein
Hortman
Howe
Huntley
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kieffer
Kiel
Laine
Leidiger
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McDonald
McNamar
McNamara
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Myhra
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
O'Neill
Paymar
Persell
Petersburg
Poppe
Pugh
Quam
Radinovich
Runbeck
Savick
Sawatzky
Schoen
Schomacker
Scott
Selcer
Simon
Simonson
Slocum
Sundin
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Wagenius
Ward, J.A.
Ward, J.E.
Wills
Winkler
Woodard
Yarusso
Zellers
Zerwas
Spk. Thissen
The
bill was passed and its title agreed to.
The following Conference Committee Report
was received:
CONFERENCE COMMITTEE REPORT ON H. F. NO. 1444
A bill for an act relating to government finance; appropriating money for transportation, Metropolitan Council, and public safety activities and programs; providing for fund transfers, tort claims, and certain contingent appropriations; modifying various provisions related to transportation finance and policy; making technical and clarifying changes; amending Minnesota Statutes 2012, sections 161.20, subdivision 3; 161.44, by adding a subdivision; 168A.01, subdivision 6a; 171.05, subdivision 2, by adding a subdivision; 171.061, subdivision 4; 174.40, by adding a subdivision; 219.1651; 299E.01, subdivisions 2, 3; 398A.10, by adding a subdivision; Laws 2009, chapter 9, section 1; proposing coding for new law in Minnesota Statutes, chapters 161; 174; repealing Minnesota Statutes 2012, sections 161.04, subdivision 6; 174.285, subdivision 8.
May 19, 2013
The Honorable Paul Thissen
Speaker of the House of Representatives
The Honorable Sandra L. Pappas
President of the Senate
We, the undersigned conferees for H. F. No. 1444 report that we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its amendments and that H. F. No. 1444 be further amended as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
TRANSPORTATION AND PUBLIC SAFETY APPROPRIATIONS
|
Section 1. SUMMARY
OF APPROPRIATIONS. |
The amounts shown in this section
summarize direct appropriations, by fund, made in this article.
|
|
|
2014 |
|
2015 |
|
Total |
|
|
|
|
|
|
|
|
|
General |
|
$135,195,000
|
|
$103,795,000
|
|
$238,990,000
|
|
Airports |
|
18,959,000
|
|
18,959,000
|
|
37,918,000
|
|
C.S.A.H. |
|
594,883,000
|
|
607,505,000
|
|
1,202,388,000
|
|
M.S.A.S. |
|
152,219,000
|
|
155,060,000
|
|
307,279,000
|
|
Special Revenue |
|
49,775,000
|
|
50,709,000
|
|
100,484,000
|
|
H.U.T.D. |
|
10,481,000
|
|
10,406,000
|
|
20,887,000
|
|
Trunk Highway |
|
1,697,196,000
|
|
1,634,800,000
|
|
3,331,996,000
|
|
|
|
|
|
|
|
|
|
Total |
|
$2,658,708,000 |
|
$2,581,234,000 |
|
$5,239,942,000 |
|
Sec. 2. TRANSPORTATION
APPROPRIATIONS. |
The sums shown in the columns marked
"Appropriations" are appropriated to the agencies and for the
purposes specified in this article. The
appropriations are from the trunk highway fund, or another named fund, and are
available for the fiscal years indicated for each purpose. The figures "2014" and
"2015" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2014, or June 30, 2015,
respectively. "The first year"
is fiscal year 2014. "The second
year" is fiscal year 2015. "The
biennium" is fiscal years 2014 and 2015.
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Available for the
Year |
|
|
|
|
|
Ending June 30 |
|
|
|
|
|
2014 |
2015 |
|
Sec. 3. DEPARTMENT
OF TRANSPORTATION |
|
|
|
|
|
Subdivision 1. Total
Appropriation |
|
$2,393,778,000 |
|
$2,346,289,000 |
|
Appropriations
by Fund |
||
|
|
||
|
|
2014
|
2015
|
|
|
|
|
|
General |
18,014,000
|
17,533,000
|
|
Airports |
18,959,000
|
18,959,000
|
|
C.S.A.H. |
594,883,000
|
607,505,000
|
|
M.S.A.S |
152,219,000
|
155,060,000
|
|
H.U.T.D. |
75,000
|
-0-
|
|
Trunk Highway |
1,609,628,000
|
1,547,232,000
|
The amounts that may be spent for each purpose
are specified in the following subdivisions.
|
Subd. 2. Multimodal
Systems |
|
|
|
|
(a) Aeronautics
|
(1) Airport Development and Assistance |
|
13,648,000
|
|
13,648,000
|
This appropriation is from the state
airports fund and must be spent according to Minnesota Statutes, section
360.305, subdivision 4.
The base appropriation for fiscal years
2016 and 2017 is $14,298,000 for each year.
Notwithstanding Minnesota Statutes,
section 16A.28, subdivision 6, this appropriation is available for five years after
appropriation. If the appropriation for
either year is insufficient, the appropriation for the other year is available
for it.
|
(2) Aviation Support and Services |
|
6,386,000
|
|
6,386,000
|
|
Appropriations
by Fund |
||
|
|
||
|
Airports |
5,286,000
|
5,286,000
|
|
Trunk Highway |
1,100,000
|
1,100,000
|
$65,000 in each year is from the state
airports fund for the Civil Air Patrol.
|
(b) Transit |
|
17,226,000
|
|
17,245,000
|
|
Appropriations
by Fund |
||
|
|
||
|
General |
16,451,000
|
16,470,000
|
|
Trunk Highway |
775,000
|
775,000
|
$100,000 in each year is from the general
fund for the administrative expenses of the Minnesota Council on Transportation
Access under Minnesota Statutes, section 174.285.
$78,000 in each year is from the general
fund for grants to greater Minnesota transit providers as reimbursement for the
costs of providing fixed route public transit rides free of charge under
Minnesota Statutes, section 174.24, subdivision 7, for veterans certified as
disabled.
|
(c) Passenger Rail |
|
500,000
|
|
500,000
|
This appropriation is from the general
fund for passenger rail system planning, alternatives analysis, environmental
analysis, design, and preliminary engineering under Minnesota Statutes,
sections 174.632 to 174.636.
|
(d) Freight |
|
5,653,000
|
|
5,153,000
|
|
Appropriations
by Fund |
||
|
|
||
|
General |
756,000
|
256,000
|
|
Trunk Highway |
4,897,000
|
4,897,000
|
$500,000 in the first year is from the
general fund to pay for the department's share of costs associated with the
cleanup of contaminated state rail bank property. This appropriation is available until
expended.
|
(e) Safe Routes to School |
|
250,000
|
|
250,000
|
This appropriation is from the general
fund for non-infrastructure activities in the safe routes to school program
under Minnesota Statutes, section 174.40, subdivision 7a.
|
Subd. 3. State
Roads |
|
|
|
|
|
(a) Operations and Maintenance |
|
262,395,000
|
|
262,395,000
|
|
(b) Program Planning and Delivery |
|
206,795,000
|
|
206,720,000
|
|
Appropriations
by Fund |
||
|
|
||
|
|
2014
|
2015
|
|
|
|
|
|
H.U.T.D. |
75,000
|
0
|
|
Trunk Highway |
206,720,000
|
206,720,000
|
$250,000 in each year is for the
department's administrative costs for creation and operation of the Joint
Program Office for Economic Development and Alternative Finance, including
costs of hiring a consultant and preparing required reports.
$130,000 in each year is available for
administrative costs of the targeted group business program.
$266,000 in each year is available for
grants to metropolitan planning organizations outside the seven-county
metropolitan area.
$75,000 in each year is available for a
transportation research contingent account to finance research projects that
are reimbursable from the federal government or from other sources. If the appropriation for either year is
insufficient, the appropriation for the other year is available for it.
$900,000 in each year is available for
grants for transportation studies outside the metropolitan area to identify
critical concerns, problems, and issues.
These grants are available: (1)
to regional
development commissions; (2) in
regions where no regional development commission is functioning, to joint
powers boards established under agreement of two or more political subdivisions
in the region to exercise the planning functions of a regional development
commission; and (3) in regions where no regional development commission or
joint powers board is functioning, to the department's district office for that
region.
$75,000 in the first year is from the
highway user tax distribution fund to the commissioner for a grant to the
Humphrey School of Public Affairs at the University of Minnesota for WorkPlace
Telework program congestion relief efforts consisting of maintenance of Web
site tools and content. This is a
onetime appropriation and is available in the second year.
|
(c) State Road Construction Activity |
|
|
|
|
|
(1) Economic Recovery Funds - Federal Highway Aid |
|
1,000,000
|
|
1,000,000
|
This appropriation is to complete projects
using funds made available to the commissioner of transportation under title
XII of the American Recovery and Reinvestment Act of 2009, Public Law 111-5,
and implemented under Minnesota Statutes, section 161.36, subdivision 7. The base appropriation is $1,000,000 in
fiscal year 2016 and $0 in fiscal year 2017.
|
(2) State Road Construction |
|
909,400,000
|
|
815,600,000
|
It is estimated that these appropriations
will be funded as follows:
|
Appropriations
by Fund |
||
|
|
||
|
Federal Highway Aid |
489,200,000
|
482,200,000
|
|
Highway User Taxes |
420,200,000
|
333,400,000
|
The commissioner of transportation shall
notify the chairs and ranking minority members of the legislative committees
with jurisdiction over transportation finance of any significant events that
should cause these estimates to change.
This appropriation is for the actual
construction, reconstruction, and improvement of trunk highways, including
design-build contracts and consultant usage to support these activities. This includes the cost of actual payment to
landowners for lands acquired for highway rights-of-way, payment to lessees,
interest subsidies, and relocation expenses.
The base appropriation for state road
construction for fiscal years 2016 and 2017 is $645,000,000 in each year.
$10,000,000 in each year is for
the transportation economic development program under Minnesota Statutes,
section 174.12.
The commissioner may expend up to one-half
of one percent of the federal appropriations under this clause as grants to
opportunity industrialization centers and other nonprofit job training centers
for job training programs related to highway construction.
The commissioner may transfer up to
$15,000,000 each year to the transportation revolving loan fund.
The commissioner may receive money
covering other shares of the cost of partnership projects. These receipts are appropriated to the
commissioner for these projects.
|
(d) Highway Debt Service |
|
158,417,000
|
|
189,821,000
|
$148,917,000 in the first year and
$180,321,000 in the second year are for transfer to the state bond fund. If an appropriation is insufficient to make
all transfers required in the year for which it is made, the commissioner of
management and budget shall notify the senate Committee on Finance and the
house of representatives Committee on Ways and Means of the amount of the
deficiency and shall then transfer that amount under the statutory open
appropriation. Any excess appropriation
cancels to the trunk highway fund.
|
(e) Electronic Communications |
|
5,171,000
|
|
5,171,000
|
|
Appropriations
by Fund |
||
|
|
||
|
General |
3,000
|
3,000
|
|
Trunk Highway |
5,168,000
|
5,168,000
|
The general fund appropriation is to equip
and operate the Roosevelt signal tower for Lake of the Woods weather
broadcasting.
|
Subd. 4. Local
Roads |
|
|
|
|
|
(a) County State-Aid Roads |
|
594,883,000
|
|
607,505,000
|
This appropriation is from the county
state-aid highway fund under Minnesota Statutes, sections 161.082 to 161.085,
and chapter 162, and is available until spent.
If the commissioner of transportation
determines that a balance remains in the county state-aid highway fund
following the appropriations and transfers made in this subdivision, and that
the appropriations made are insufficient for advancing county state-aid
highway projects, an amount
necessary to advance the projects, not to exceed the balance in the county
state-aid highway fund, is appropriated in each year to the commissioner. Within two weeks of a determination under
this contingent appropriation, the commissioner of transportation shall notify
the commissioner of management and budget and the chairs and ranking minority
members of the legislative committees with jurisdiction over transportation
finance concerning funds appropriated.
|
(b) Municipal State-Aid Roads |
|
152,219,000
|
|
155,060,000
|
This appropriation is from the municipal state-aid
street fund for the purposes under Minnesota Statutes, chapter 162, and is
available until spent.
If the commissioner of transportation
determines that a balance remains in the municipal state-aid street fund
following the appropriations made in this subdivision, and that the
appropriations made are insufficient for advancing municipal state-aid street
projects, an amount necessary to advance the projects, not to exceed the
balance in the municipal state-aid street fund, is appropriated in each year to
the commissioner. Within two weeks of a
determination under this contingent appropriation, the commissioner of
transportation shall notify the commissioner of management and budget and the
chairs and ranking minority members of the legislative committees with
jurisdiction over transportation finance concerning funds appropriated.
|
Subd. 5. Agency
Management |
|
|
|
|
|
(a) Agency Services |
|
41,997,000
|
|
41,997,000
|
|
Appropriations
by Fund |
||
|
|
||
|
Airports |
25,000
|
25,000
|
|
Trunk Highway |
41,972,000
|
41,972,000
|
|
(b) Buildings |
|
17,838,000
|
|
17,838,000
|
|
Appropriations
by Fund |
||
|
|
||
|
General |
54,000
|
54,000
|
|
Trunk Highway |
17,784,000
|
17,784,000
|
If the appropriation for either year is
insufficient, the appropriation for the other year is available for it.
|
Subd. 6. Transfers
|
|
|
|
|
(a) With the approval of the commissioner
of management and budget, the commissioner of transportation may transfer
unencumbered balances among the appropriations from the trunk
highway
fund and the state airports fund made in this section. No transfer may be made from the
appropriations for state road construction or for debt service. Transfers under this paragraph may not be
made between funds. Transfers under this
paragraph must be reported immediately to the chairs and ranking minority
members of the legislative committees with jurisdiction over transportation
finance.
(b) The commissioner shall transfer from
the flexible highway account in the county state-aid highway fund: (1) $5,700,000 in the first year to the trunk
highway fund; (2) $13,000,000 in the first year to the municipal turnback
account in the municipal state-aid street fund; (3) $10,000,000 in the second
year to the municipal turnback account in the municipal state-aid street fund;
and (4) the remainder in each year to the county turnback account in the county
state-aid highway fund. The funds
transferred are for highway turnback purposes as provided under Minnesota
Statutes, section 161.081, subdivision 3.
|
Subd. 7. Previous State Road Construction Appropriations |
|
|
|
Any money appropriated to the commissioner
of transportation for state road construction for any fiscal year before the
first year is available to the commissioner during the biennium to the extent
that the commissioner spends the money on the state road construction project
for which the money was originally encumbered during the fiscal year for which
it was appropriated. The commissioner of
transportation shall report to the commissioner of management and budget by
August 1, 2013, and August 1, 2014, on a form the commissioner of management
and budget provides, on expenditures made during the previous fiscal year that
are authorized by this subdivision.
|
Subd. 8. Contingent
Appropriation |
|
|
|
|
The commissioner of transportation, with
the approval of the governor and the written approval of at least five members
of a group consisting of the members of the Legislative Advisory Commission
under Minnesota Statutes, section 3.30, and the ranking minority members of the
legislative committees with jurisdiction over transportation finance, may
transfer all or part of the unappropriated balance in the trunk highway fund to
an appropriation: (1) for trunk highway
design, construction, or inspection in order to take advantage of an
unanticipated receipt of income to the trunk highway fund or to take advantage
of federal advanced construction funding; (2) for trunk highway maintenance in
order to meet an emergency; or (3) to pay tort or environmental claims. Nothing in this subdivision authorizes the
commissioner to increase the use of federal advanced construction funding
beyond amounts specifically authorized. Any
transfer as a result of the use of federal advanced construction funding must
include an analysis
of
the effects on the long-term trunk highway fund balance. The amount transferred is appropriated for
the purpose of the account to which it is transferred.
|
Sec. 4. METROPOLITAN
COUNCIL |
|
$107,889,000 |
|
$76,970,000 |
This appropriation is from the general
fund for transit system operations under Minnesota Statutes, sections 473.371
to 473.449.
The base appropriation for fiscal years
2016 and 2017 is $76,686,000 in each year.
$37,000,000 in the first year is for the
Southwest Corridor light rail transit line from the Hiawatha light rail transit
line in downtown Minneapolis to Eden Prairie, to be used for environmental
studies, preliminary engineering, acquisition of real property, or interests in
real property, and design. This is a
onetime appropriation and is available until expended.
|
Sec. 5. DEPARTMENT
OF PUBLIC SAFETY |
|
|
|
|
|
Subdivision 1. Total
Appropriation |
|
$156,441,000 |
|
$157,375,000 |
|
Appropriations
by Fund |
||
|
|
||
|
|
2014
|
2015
|
|
|
|
|
|
General |
9,292,000
|
9,292,000
|
|
Special Revenue |
49,775,000
|
50,709,000
|
|
H.U.T.D. |
10,406,000
|
10,406,000
|
|
Trunk Highway |
86,968,000
|
86,968,000
|
The amounts that may be spent for each
purpose are specified in the following subdivisions.
|
Subd. 2. Administration
and Related Services |
|
|
|
|
|
(a) Office of Communications |
|
504,000
|
|
504,000
|
|
Appropriations
by Fund |
||
|
|
||
|
General |
111,000
|
111,000
|
|
Trunk Highway |
393,000
|
393,000
|
|
(b) Public Safety Support |
|
8,439,000
|
|
8,439,000
|
|
Appropriations
by Fund |
||
|
|
||
|
General |
3,467,000
|
3,467,000
|
|
H.U.T.D. |
1,366,000
|
1,366,000
|
|
Trunk Highway |
3,606,000 |
3,606,000 |
$380,000
in each year is from the general fund for payment of public safety officer
survivor benefits under Minnesota Statutes, section 299A.44. If the appropriation for either year is
insufficient, the appropriation for the other year is available for it.
$1,367,000 in each year is from the
general fund to be deposited in the public safety officer's benefit account. This money is available for reimbursements
under Minnesota Statutes, section 299A.465.
$600,000 in each year is from the general
fund and $100,000 in each year is from the trunk highway fund for soft body
armor reimbursements under Minnesota Statutes, section 299A.38.
$792,000 in each year is from the general
fund for transfer by the commissioner of management and budget to the trunk
highway fund on December 31, 2013, and December 31, 2014, respectively, in
order to reimburse the trunk highway fund for expenses not related to the fund. These represent amounts appropriated out of
the trunk highway fund for general fund purposes in the administration and
related services program.
$610,000 in each year is from the highway
user tax distribution fund for transfer by the commissioner of management and
budget to the trunk highway fund on December 31, 2013, and December 31,
2014, respectively, in order to reimburse the trunk highway fund for expenses
not related to the fund. These represent
amounts appropriated out of the trunk highway fund for highway user tax
distribution fund purposes in the administration and related services program.
$716,000 in each year is from the highway
user tax distribution fund for transfer by the commissioner of management and
budget to the general fund on December 31,
2013, and December 31, 2014, respectively, in order to reimburse the
general fund for expenses not related to the fund. These represent amounts appropriated out of
the general fund for operation of the criminal justice data network related to
driver and motor vehicle licensing.
Before January 15, 2015, the commissioner
of public safety shall review the amounts and purposes of the transfers under
this paragraph and shall recommend necessary changes to the legislative
committees with jurisdiction over transportation finance.
|
(c) Technology and Support Service |
|
3,685,000
|
|
3,685,000
|
|
(a) Patrolling Highways |
|
72,522,000
|
|
72,522,000
|
|
Appropriations
by Fund |
||
|
|
||
|
General |
37,000
|
37,000
|
|
H.U.T.D. |
92,000
|
92,000
|
|
Trunk Highway |
72,393,000
|
72,393,000
|
|
(b) Commercial Vehicle Enforcement |
|
7,796,000
|
|
7,796,000
|
|
(c) Capitol Security |
|
4,355,000
|
|
4,355,000
|
This appropriation is from the general
fund.
$1,250,000 in each year is to implement
the recommendations of the advisory committee on Capitol Area Security under
Minnesota Statutes, section 299E.04, including the creation of an emergency
manager position under Minnesota Statutes, section 299E.01, subdivision 2, and
an increase in the number of State Patrol troopers
and other security officers assigned to the Capitol complex.
The commissioner may not: (1) spend any money from the trunk highway
fund for capitol security; or (2) permanently transfer any state trooper from the patrolling highways
activity to capitol security.
The commissioner may not transfer any
money appropriated to the commissioner under this section: (1) to capitol security; or (2) from capitol
security.
|
(d) Vehicle Crimes Unit |
|
693,000
|
|
693,000
|
This appropriation is from the highway
user tax distribution fund.
This appropriation is to investigate: (1) registration tax and motor vehicle sales
tax liabilities from individuals and businesses that currently do not pay all taxes owed; and (2) illegal or improper
activity related to sale, transfer, titling, and registration of motor
vehicles.
|
Subd. 4. Driver
and Vehicle Services |
|
|
|
|
|
(a) Vehicle Services |
|
27,909,000
|
|
28,430,000
|
|
Appropriations
by Fund |
||
|
|
||
|
Special Revenue |
19,673,000
|
19,771,000
|
|
H.U.T.D. |
8,236,000
|
8,236,000
|
The special revenue fund appropriation is
from the vehicle services operating account.
$650,000 in each year is from
the special revenue fund for seven additional positions to enhance customer
service related to vehicle title issuance.
$521,000 in the second year is from the
special revenue fund for the vehicle services portion of a new telephone system
and is for transfer to the Office of Enterprise Technology for construction and
development of the system. This is a
onetime appropriation and is available until expended.
The base appropriation from the special
revenue fund is $27,909,000 for fiscal year
2016 and $27,909,000 for fiscal year 2017.
|
(b) Driver Services |
|
28,749,000
|
|
29,162,000
|
|
Appropriations
by Fund |
||
|
|
||
|
Special Revenue |
28,748,000
|
29,161,000
|
|
Trunk Highway |
1,000
|
1,000
|
The special revenue fund appropriation is
from the driver services operating account.
$71,000 in the second year is from the
special revenue fund for one additional position related to facial recognition.
$279,000 in the second year is from the
special revenue fund for the driver services portion of a new telephone system
and is for transfer to the Office of Enterprise Technology for construction and
development of the system. This is a
onetime appropriation and is available until expended.
$37,000 in the first year and $33,000 in
the second year are from the special revenue fund for one half-time position to
assist with the Novice Driver Improvement Task Force under Minnesota Statutes,
section 171.0701, subdivision 1a. The
base appropriation for this position is
$6,000 in fiscal year 2016 and $0 in fiscal year 2017.
$67,000 in the second year is from the
special revenue fund for one new position to administer changes to the ignition
interlock program. The base
appropriation for this position in fiscal years 2016 and 2017 is $62,000 in
each year.
The base appropriation from the special
revenue fund is $28,851,000 for fiscal year
2016 and $28,845,000 for fiscal year 2017.
|
Subd. 5. Traffic
Safety |
|
435,000
|
|
435,000
|
The commissioner of public safety shall
spend 50 percent of the money available to the state under United States Code,
title 23, section 164, and the remaining 50 percent must be transferred to the
commissioner of transportation for hazard elimination activities under United
States Code, title 23, section 152.
|
Subd. 6. Pipeline
Safety |
|
1,354,000
|
|
1,354,000
|
This appropriation is from the pipeline
safety account in the special revenue fund.
|
Sec. 6. TORT
CLAIMS |
|
$600,000 |
|
$600,000 |
This
appropriation is to the commissioner of management and budget.
If the appropriation for either year is
insufficient, the appropriation for the other year is available for it.
Sec. 7. REAUTHORIZATION;
2008 BOND SALE EXPENSES FOR TRUNK HIGHWAY BONDS.
$1,414,600 of the amount appropriated in
Laws 2008, chapter 152, article 2, section 6, for trunk highway bond sale
expenses, which was reported to the legislature according to Minnesota
Statutes, section 16A.642, subdivision 1, is reauthorized and does not cancel
under the terms of that subdivision. This
appropriation for the bond sale expenses and the bond sale authorization in
Laws 2008, chapter 152, article 2, section 7, subdivision 1, as amended, are
available until December 31, 2019.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 2
BONDING
Section 1.
BOND APPROPRIATIONS.
The sums shown in the column under
"Appropriations" are appropriated from the bond proceeds account in
the trunk highway fund, or another named fund, to the state agencies or
officials indicated, to be spent for public purposes. Appropriations of bond proceeds must be spent
as authorized by the Minnesota Constitution, articles XI and XIV. Unless otherwise specified, money
appropriated in this article for a capital program or project may be used to
pay state agency staff costs that are attributed directly to the capital
program or project in accordance with accounting policies adopted by the
commissioner of management and budget.
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SUMMARY |
||
|
|
||
|
Department of Transportation |
|
$300,000,000
|
|
Department of Management and
Budget |
|
300,000
|
|
|
|
|
|
TOTAL |
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$300,300,000 |
|
|
|
|
APPROPRIATIONS |
|
Sec. 2. CORRIDORS
OF COMMERCE |
|
|
|
300,000,000
|
(a) This appropriation is to the
commissioner of transportation for the corridors of commerce program under Minnesota
Statutes, section 161.088.
(b) The appropriation in this section is
for the actual construction, reconstruction, and improvement of trunk highways,
including design-build contracts and consultant usage to support these
activities. This includes the cost of actual payments to
landowners for lands acquired for highway rights-of-way, payments to lessees,
interest subsidies, and relocation expenses.
(c)
The commissioner may use up to 17 percent for program delivery.
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Sec. 3. BOND
SALE EXPENSES |
|
|
|
$300,000 |
This appropriation is to the commissioner
of management and budget for bond sale expenses under Minnesota Statutes,
sections 16A.641, subdivision 8, and 167.50, subdivision 4.
Sec. 4. BOND
SALE AUTHORIZATION.
To provide the money appropriated in this
article from the bond proceeds account in the trunk highway fund, the
commissioner of management and budget shall sell and issue bonds of the state
in an amount up to $300,300,000 in the manner, upon the terms, and with the
effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the
Minnesota Constitution, article XIV, section 11, at the times and in the
amounts requested by the commissioner of transportation. The proceeds of the bonds, except accrued
interest and any premium received from the sale of the bonds, must be deposited
in the bond proceeds account in the trunk highway fund.
Sec. 5. EFFECTIVE
DATE.
This article is effective July 1, 2014.
ARTICLE 3
TRANSPORTATION POLICY AND FINANCE
Section 1.
[161.088] CORRIDORS OF
COMMERCE PROGRAM.
Subdivision 1. Definitions. For purposes of this section, the
following terms have the meanings given:
(1) "beyond the project
limits" means any point that is located:
(i) outside of the project limits;
(ii) along the same trunk highway; and
(iii) within the same region of the
state;
(2) "city" means a statutory
or home rule charter city;
(3) "program" means the
corridors of commerce program established in this section; and
(4) "project limits" means
the estimated construction limits of a project for trunk highway construction,
reconstruction, or maintenance, that is a candidate for selection under the
corridors of commerce program.
Subd. 2. Program
authority, funding. (a) As
provided in this section, the commissioner shall establish a corridors of
commerce program for trunk highway construction, reconstruction, and
improvement, including maintenance operations, that improves commerce in the
state.
(b) The commissioner may expend
funds under the program from appropriations to the commissioner that are:
(1) made specifically by law for use
under this section;
(2) at the discretion of the commissioner, made for the budget activities in the state roads program of operations and maintenance, program planning and delivery, or state road construction; and
(3) made for the corridor investment
management strategy program, unless specified otherwise.
(c) The commissioner shall include in
the program the cost participation policy for local units of government.
Subd. 3. Project
classification. The
commissioner shall determine whether each candidate project can be classified
into at least one of the following classifications:
(1) capacity development, for a project
on a segment of a trunk highway where the segment:
(i) is not a divided highway, and that
highway is an expressway or freeway beyond the project limits;
(ii) contains a highway terminus that
lacks an intersection or interchange with another trunk highway;
(iii) contains fewer lanes of travel
compared to that highway beyond the project limits; or
(iv) contains a location that is
proposed as a new interchange or to be reconstructed from an intersection to an
interchange; or
(2) freight improvement, for an asset
preservation or replacement project that can result in:
(i) removing or reducing barriers to commerce;
(ii) easing or preserving freight movement;
(iii) supporting emerging industries; or
(iv) providing connections between the
trunk highway system and other transportation modes for the movement of
freight.
Subd. 4. Project
eligibility. (a) The
commissioner shall establish eligibility requirements for projects that can be
funded under the program. Eligibility
must include:
(1) consistency with the statewide
multimodal transportation plan under section 174.03;
(2) location of the project on an
interregional corridor, for a project located outside of the Department of
Transportation metropolitan district;
(3) placement into at least one project
classification under subdivision 3;
(4) a maximum length of time, as
determined by the commissioner, until commencement of construction work on the
project; and
(5) for each type of project
classification under subdivision 3, a maximum allowable amount for the total
project cost estimate, as determined by the commissioner with available data.
(b) A project whose
construction is programmed in the state transportation improvement program is
not eligible for funding under the program.
This paragraph does not apply to a project that is programmed as result
of selection under this section.
(c) A project may be, but is not
required to be, identified in the 20-year state highway capital investment plan
under section 174.03.
Subd. 5. Project
selection process; criteria. (a)
The commissioner shall establish a process for identification, evaluation, and
selection of projects under the program.
(b) As part of the project selection
process, the commissioner shall annually accept recommendations on candidate
projects from area transportation partnerships and other interested
stakeholders in each Department of Transportation district. For each candidate project identified under
this paragraph, the commissioner shall determine eligibility, classify, and if
appropriate, evaluate the project for the program.
(c) Project evaluation and
prioritization must be performed on the basis of objective criteria, which must
include:
(1) a return on investment measure that
provides for comparison across eligible projects;
(2) measurable impacts on commerce and
economic competitiveness;
(3) efficiency in the movement of
freight, including but not limited to:
(i) measures of annual average daily
traffic and commercial vehicle miles traveled, which may include data near the
project location on that trunk highway or on connecting trunk and local
highways; and
(ii) measures of congestion or travel
time reliability, which may be within or near the project limits, or both;
(4) improvements to traffic safety;
(5) connections to regional trade
centers, local highway systems, and other transportation modes;
(6) the extent to which the project
addresses multiple transportation system policy objectives and principles; and
(7) support and consensus for the
project among members of the surrounding community.
(d) As part of the project selection
process, the commissioner may divide funding to be separately available among
projects within each classification under subdivision 3, and may apply separate
or modified criteria among those projects falling within each classification.
Subd. 6. Funding
allocations; operations and maintenance.
In identifying the amount of funding allocated to a project under
the program, the commissioner may include allocations of funds for operations
and maintenance resulting from that project, that are assigned in future years
following completion of the project, subject to available funds for the program
in those years from eligible sources.
Subd. 7. Legislative
report, evaluation. (a)
Starting in 2014, annually by November 1, the commissioner shall electronically
submit a report on the corridors of commerce program to the chairs and ranking
minority members of the legislative
committees with jurisdiction over transportation policy and finance. At a minimum, the report must include:
(1) a summary of the program, including
a review of the project selection process, eligibility and criteria, funds
expended in the previous selection cycle, and total funds expended since
program inception;
(2) a listing of projects
funded under the program in the previous selection cycle, including:
(i) project classification;
(ii) a breakdown of project costs and
funding sources;
(iii) any future operating costs
assigned under subdivision 6; and
(iv) a brief description that is
comprehensible to a lay audience;
(3) a listing of candidate project
recommendations required under subdivision 5, paragraph (b), including project
classification and disposition in the selection process; and
(4) any recommendations for changes to
statutory requirements of the program.
(b) Starting in 2016, and in every
even-numbered year thereafter, the commissioner shall incorporate into the
report the results of an independent evaluation of impacts and effectiveness of
the program. The evaluation must be
performed by agency staff or a consultant.
The individual or individuals performing the evaluation must have
experience in program evaluation, but must not be regularly involved in the
program's implementation.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2012, section 161.20, subdivision 3, is amended to read:
Subd. 3. Trunk
highway fund appropriations. The
commissioner may expend trunk highway funds only for trunk highway purposes. Payment of expenses related to Bureau of
Criminal Apprehension laboratory, Explore Minnesota Tourism kiosks, Minnesota
Safety Council, tort claims, driver education programs, Emergency
Medical Services Board, Mississippi River Parkway Commission, payments to MN.IT
Services in excess of actual costs incurred for trunk highway purposes, and
personnel costs incurred on behalf of the Governor's Office do not further a
highway purpose and do not aid in the construction, improvement, or maintenance
of the highway system.
Sec. 3. Minnesota Statutes 2012, section 161.53, is amended to read:
161.53
RESEARCH ACTIVITIES.
(a) The commissioner may set aside in each fiscal year up to two percent of the total amount of all funds appropriated to the commissioner other than county state-aid and municipal state-aid highway funds for transportation research including public and private research partnerships. The commissioner shall spend this money for (1) research to improve the design, construction, maintenance, management, and environmental compatibility of transportation systems, including research into and implementation of innovations in bridge-monitoring technology and bridge inspection technology; bridge inspection techniques and best practices; and the cost-effectiveness of deferred or lower cost highway and bridge design and maintenance activities and their impacts on long-term trunk highway costs and maintenance needs; (2) research on transportation policies that enhance energy efficiency and economic development; (3) programs for implementing and monitoring research results; and (4) development of transportation education and outreach activities.
(b) Of all funds appropriated to the
commissioner other than state-aid funds, the commissioner shall spend at least
0.1 percent, but not exceeding $1,200,000 $2,000,000 in any
fiscal year, for research and related activities performed by the Center for
Transportation Studies of the University of Minnesota. The center shall establish a technology
transfer and training center for Minnesota transportation professionals. By June 30, 2018, the center shall conduct
research on transportation policy and economic competitiveness, including, but
not limited to, innovative transportation finance options and economic
development, transportation impacts of industry clusters and freight, and
transportation technology impacts on economic competitiveness.
Sec. 4. Minnesota Statutes 2012, section 163.051, is amended to read:
163.051
METROPOLITAN COUNTY WHEELAGE TAX.
Subdivision 1. Tax
authorized. (a) Except as provided
in paragraph (b) (c), the board of commissioners of each metropolitan
county is authorized to levy by resolution a wheelage tax of $5 for
the year 1972 and each subsequent year thereafter by resolution at the
rate specified in paragraph (b), on each motor vehicle that is kept in such
county when not in operation and that is subject to annual registration and
taxation under chapter 168. The board
may provide by resolution for collection of the wheelage tax by county
officials or it may request that the tax be collected by the state registrar of
motor vehicles, and. The
state registrar of motor vehicles shall collect such tax on behalf of the
county if requested, as provided in subdivision 2.
(b) The wheelage tax under this section is
at the rate of:
(1) from January 1, 2014, through
December 31, 2017, $10 per year for each county that authorizes the tax; and
(2) on and after January 1, 2018, up to
$20 per year, in any increment of a whole dollar, as specified by each county
that authorizes the tax.
(c) The following vehicles are exempt from the wheelage tax:
(1) motorcycles, as defined in section 169.011, subdivision 44;
(2) motorized bicycles, as defined in section
169.011, subdivision 45; and
(3) electric-assisted bicycles, as defined
in section 169.011, subdivision 27; and
(4) (3) motorized foot
scooters, as defined in section 169.011, subdivision 46.
(d) For any county that authorized the
tax prior to the effective date of this section, the wheelage tax continues at
the rate provided under paragraph (b).
Subd. 2. Collection
by registrar of motor vehicles. The
wheelage tax levied by any metropolitan county, if made collectible by
the state registrar of motor vehicles, shall be certified by the county auditor
to the registrar not later than August 1 in the year before the calendar year
or years for which the tax is levied, and the registrar shall collect such tax
with the motor vehicle taxes on the affected vehicles for such year or years. Every owner and every operator of such a
motor vehicle shall furnish to the registrar all information requested by the
registrar. No state motor vehicle tax on
any such motor vehicle for any such year shall be received or deemed paid
unless the applicable wheelage tax is paid therewith. The proceeds of the wheelage tax levied by
any metropolitan county, less any amount retained by the registrar to pay costs
of collection of the wheelage tax, shall be paid to the commissioner of
management and budget and deposited in the state treasury to the credit of the county
wheelage tax fund of each metropolitan county.
Subd. 2a. Tax
proceeds deposited; costs of collection; appropriation. Notwithstanding the provisions of any
other law, the state registrar of motor vehicles shall deposit the proceeds of
the wheelage tax imposed by subdivision 2, to the credit of the county wheelage
tax fund account of each metropolitan county. The amount necessary to pay the costs of
collection of said tax is appropriated from the county wheelage tax fund
account of each metropolitan county to the state registrar of
motor vehicles.
Subd. 3. Distribution
to metropolitan county; appropriation.
On or before April 1 in 1972 and each subsequent year, the
commissioner of management and budget On a monthly basis, the registrar
of motor vehicles shall issue a warrant in favor of the treasurer of each metropolitan
county for which the registrar has collected a
wheelage tax in the amount of
such tax then on hand in the county wheelage tax fund account. There is hereby appropriated from the county
wheelage tax fund account each year, to each metropolitan
county entitled to payments authorized by this section, sufficient moneys to
make such payments.
Subd. 4. Use of tax.
The treasurer of each metropolitan county receiving moneys
payments under subdivision 3 shall deposit such moneys payments
in the county road and bridge fund. The
moneys shall be used for purposes authorized by law which are highway purposes
within the meaning of the Minnesota Constitution, article 14.
Subd. 6. Metropolitan county defined. "Metropolitan county" means any
of the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and
Washington.
Subd. 7. Offenses; penalties; application of other
laws. (a) Any owner or
operator of a motor vehicle who shall willfully give gives
any false information relative to the tax herein authorized by this
section to the registrar of motor vehicles or any metropolitan
county, or who shall willfully fail or refuse fails or refuses
to furnish any such information, shall be is guilty of a
misdemeanor.
(b) Except as otherwise herein provided in
this section, the collection and payment of a wheelage tax and all matters
relating thereto shall be are subject to all provisions of law
relating to collection and payment of motor vehicle taxes so far as applicable.
EFFECTIVE DATE. This section is effective the day
following final enactment and applies to a registration period under Minnesota
Statutes, chapter 168, starting on or after January 1, 2014.
Sec. 5. Minnesota Statutes 2012, section 168A.01, subdivision 6a, is amended to read:
Subd. 6a. High-value vehicle. "High-value vehicle" means a
vehicle that had an actual cash value in excess of $5,000 $9,000
before being damaged, or a vehicle with a manufacturer's rating of over 26,000
pounds gross vehicle weight that is not a late-model vehicle.
Sec. 6. Minnesota Statutes 2012, section 168A.29, subdivision 1, is amended to read:
Subdivision 1. Amounts. (a) The department must be paid the following fees:
(1) for filing an application for and the issuance of an
original certificate of title, the sum of:
(i) until December 31, 2016, $6.25 of which $3.25 must
be paid into the vehicle services operating account of the special revenue fund
under section 299A.705; until June 30, 2012, a surcharge of $1.75 must be
added to the fee and credited to the driver and vehicle services technology
account;, and from July 1, 2012, to June 30, 2016, a surcharge of $1
must be added to the fee and credited to the driver and vehicle services technology
account; and
(ii) on and after January 1, 2017, $8.25 of which $4.15
must be paid into the vehicle services operating account;
(2) for each security interest when first noted upon a certificate of title, including the concurrent notation of any assignment thereof and its subsequent release or satisfaction, the sum of $2, except that no fee is due for a security interest filed by a public authority under section 168A.05, subdivision 8;
(3) until December 31, 2016, for the transfer of the
interest of an owner and the issuance of a new certificate of title, the sum of
$5.50 of which $2.50 must be paid into the vehicle services operating account
of the special revenue fund under section 299A.705; until June 30, 2012, a
surcharge of $1.75 must be added to the fee and credited to the driver and
vehicle services technology account;, and from July 1, 2012, to June
30, 2016, a surcharge of $1 must be added to the fee and credited to the driver
and vehicle services technology account;
(4) for each assignment of a
security interest when first noted on a certificate of title, unless noted
concurrently with the security interest, the sum of $1; and
(5) for issuing a duplicate certificate of
title, the sum of $7.25 of which $3.25 must be paid into the vehicle services
operating account of the special revenue fund under section 299A.705; until
June 30, 2012, a surcharge of $1.75 must be added to the fee and credited to
the driver and vehicle services technology account; from July 1, 2012, to
June 30, 2016, a surcharge of $1 must be added to the fee and credited to the
driver and vehicle services technology account.
(b) After June 30, 1994, In addition
to each of the fees the fee required under paragraph (a), clauses
clause (1) and (3), the department must be paid $3.50. The additional $3.50 fee collected under this
paragraph must be deposited in the special
revenue fund and credited to the public safety motor vehicle account
established in section 299A.70.
Sec. 7. Minnesota Statutes 2012, section 169A.37, subdivision 1, is amended to read:
Subdivision 1. Crime described. It is a crime for a person:
(1) to fail to comply with an impoundment order under section 169A.60 (administrative plate impoundment);
(2) to file a false statement under section 169A.60, subdivision 7, 8, or 14;
(3) to operate a self-propelled motor vehicle on a street or highway when the vehicle is subject to an impoundment order issued under section 169A.60, unless specially coded plates have been issued for the vehicle pursuant to section 169A.60, subdivision 13;
(4) to fail to notify the commissioner of the impoundment order when requesting new plates;
(5) who is subject to a plate impoundment order under section 169A.60, to drive, operate, or be in control of any motor vehicle during the impoundment period, unless the vehicle is employer-owned and is not required to be equipped with an ignition interlock device pursuant to section 70 of 2013 S. F. No. 1270, if enacted, or section 171.306, subdivision 4, paragraph (b), or has specially coded plates issued pursuant to section 169A.60, subdivision 13, and the person is validly licensed to drive; or
(6) who is the transferee of a motor vehicle and who has signed a sworn statement under section 169A.60, subdivision 14, to allow the previously registered owner to drive, operate, or be in control of the vehicle during the impoundment period.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2012, section 169A.51, subdivision 2, is amended to read:
Subd. 2. Implied consent advisory. (a) Subject to paragraph (b), at the time a test is requested, the person must be informed:
(1) that Minnesota law requires the person to take a test:
(i) to determine if the person is under the influence of alcohol, controlled substances, or hazardous substances;
(ii) to determine the presence of a controlled substance listed in Schedule I or II or metabolite, other than marijuana or tetrahydrocannabinols; and
(iii) if the motor vehicle was a commercial motor vehicle, to determine the presence of alcohol;
(2) that refusal to take a test is a crime;
(3) if the peace officer has probable cause to believe the person has violated the criminal vehicular homicide and injury laws, that a test will be taken with or without the person's consent; and
(4) that the person has the right to consult with an attorney, but that this right is limited to the extent that it cannot unreasonably delay administration of the test.
(b) A peace officer who is not pursuing
an implied consent revocation is not required to give the advisory described in
paragraph (a) to a person whom the officer has probable cause to believe has
violated section 609.21, subdivision 1, clause (2), (3), (4), (5), or (6)
(criminal vehicular operation DWI-related provisions).
EFFECTIVE DATE. This section is effective July 1, 2014, and
applies to crimes committed on or after that date.
Sec. 9. Minnesota Statutes 2012, section 169A.55, is amended by adding a subdivision to read:
Subd. 5. Reinstatement of driving privileges; certain criminal vehicular operation offenses. A person whose driver's license has been revoked under section 171.17, subdivision 1, paragraph (a), clause (1) (revocation, criminal vehicular operation), or suspended under section 171.187 (suspension, criminal vehicular operation), for a violation of section 609.21, subdivision 1, clause (2), item (i) or (iii), (3), or (4) (criminal vehicular operation alcohol-related provisions), resulting in bodily harm, substantial bodily harm, or great bodily harm, shall not be eligible for reinstatement of driving privileges until the person has submitted to the commissioner verification of the use of ignition interlock for the applicable time period specified in those sections. To be eligible for reinstatement under this subdivision, a person shall utilize an ignition interlock device that meets the performance standards and certification requirements under subdivision 4, paragraph (c).
EFFECTIVE DATE. This section is effective July 1, 2014, and
applies to crimes committed on or after that date.
Sec. 10. Minnesota Statutes 2012, section 171.05, subdivision 2, is amended to read:
Subd. 2. Person less than 18 years of age. (a) Notwithstanding any provision in subdivision 1 to the contrary, the department may issue an instruction permit to an applicant who is 15, 16, or 17 years of age and who:
(1) has completed a course of driver education in another state, has a previously issued valid license from another state, or is enrolled in either:
(i) a public, private, or commercial driver education program that is approved by the commissioner of public safety and that includes classroom and behind-the-wheel training; or
(ii) an approved behind-the-wheel driver education program when the student is receiving full-time instruction in a home school within the meaning of sections 120A.22 and 120A.24, the student is working toward a homeschool diploma, the student is taking home-classroom driver training with classroom materials approved by the commissioner of public safety, and the student's parent has certified the student's homeschool and home-classroom driver training status on the form approved by the commissioner;
(2) has completed the classroom phase of instruction in the driver education program or has completed 15 hours of classroom instruction in a program that presents classroom and behind-the-wheel instruction concurrently;
(3) has passed a test of the applicant's eyesight;
(4) has passed a department-administered test of the applicant's knowledge of traffic laws;
(5) has completed the required application, which must be approved by (i) either parent when both reside in the same household as the minor applicant or, if otherwise, then (ii) the parent or spouse of the parent having custody or, in the event there is no court order for custody, then (iii) the parent or spouse of the parent with whom the minor is living or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the minor, (v) the foster parent or the director of the transitional living program in which the child resides or, in the event a person under the age of 18 has no living father, mother, or guardian, or is married or otherwise legally emancipated, then (vi) the applicant's adult spouse, adult close family member, or adult employer; provided, that the approval required by this clause contains a verification of the age of the applicant and the identity of the parent, guardian, adult spouse, adult close family member, or adult employer; and
(6) has paid the fee all fees
required in section 171.06, subdivision 2.
(b) For the purposes of determining compliance with the certification of paragraph (a), clause (1), item (ii), the commissioner may request verification of a student's homeschool status from the superintendent of the school district in which the student resides and the superintendent shall provide that verification.
(c) The instruction permit is valid for two years from the date of application and may be renewed upon payment of a fee equal to the fee for issuance of an instruction permit under section 171.06, subdivision 2.
(d) The commissioner of public safety
shall adopt rules to carry out the provisions of this section. The rules adopted under this section are
exempt from the rulemaking provisions of chapter 14. The rules are subject to section 14.386,
except that section 14.386, paragraph (b), does not apply.
EFFECTIVE
DATE. Paragraph (a) is
effective June 1, 2014. Paragraph (d) is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2012, section 171.061, subdivision 4, is amended to read:
Subd. 4. Fee;
equipment. (a) The agent may charge
and retain a filing fee of $5 $8 for each application. Except as provided in paragraph (c), the fee
shall cover all expenses involved in receiving, accepting, or forwarding to the department the applications and fees
required under sections 171.02, subdivision 3; 171.06, subdivisions 2 and 2a;
and 171.07, subdivisions 3 and 3a.
(b) The statutory fees and the filing fees imposed under paragraph (a) may be paid by credit card or debit card. The driver's license agent may collect a convenience fee on the statutory fees and filing fees not greater than the cost of processing a credit card or debit card transaction. The convenience fee must be used to pay the cost of processing credit card and debit card transactions. The commissioner shall adopt rules to administer this paragraph using the exempt procedures of section 14.386, except that section 14.386, paragraph (b), does not apply.
(c) The department shall maintain the photo identification equipment for all agents appointed as of January 1, 2000. Upon the retirement, resignation, death, or discontinuance of an existing agent, and if a new agent is appointed in an existing office pursuant to Minnesota Rules, chapter 7404, and notwithstanding the above or Minnesota Rules, part 7404.0400, the department shall provide and maintain photo identification equipment without additional cost to a newly appointed agent in that office if the office was provided the equipment by the department before January 1, 2000. All photo identification equipment must be compatible with standards established by the department.
(d) A filing fee retained by the agent employed by a county board must be paid into the county treasury and credited to the general revenue fund of the county. An agent who is not an employee of the county shall retain the filing fee in lieu of county employment or salary and is considered an independent contractor for pension purposes, coverage under the Minnesota State Retirement System, or membership in the Public Employees Retirement Association.
(e) Before the end of the first working day following the final day of the reporting period established by the department, the agent must forward to the department all applications and fees collected during the reporting period except as provided in paragraph (d).
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 12. Minnesota Statutes 2012, section 171.17, is amended by adding a subdivision to read:
Subd. 4. Criminal
vehicular operation; revocation periods.
(a) As used in this subdivision, "qualified prior impaired
driving incident" has the meaning given in section 169A.03, subdivision
22.
(b) Upon receiving a record of a
conviction for a violation of section 609.21, subdivision 1, clause (2), (3),
(4), (5), or (6), the commissioner shall revoke the driver's license or driving
privileges of a person as follows:
(1) not less than ten years if the
violation resulted in great bodily harm or death to another and the person has
two or more qualified prior impaired driving incidents within the past ten
years or three or more qualified prior impaired driving incidents, and with
denial under section 171.04, subdivision 1, clause (10), until rehabilitation
is established according to standards established by the commissioner;
(2) not less than eight years if the
violation resulted in great bodily harm or death to another and the person has
a qualified prior impaired driving incident within the past ten years;
(3) not less than six years if the
violation resulted in great bodily harm or death to another;
(4) not less than six years if the violation resulted in bodily harm or substantial bodily harm to another and the person has two or more qualified prior impaired driving incidents within the past ten years or three or more qualified prior impaired driving incidents, and with denial under section 171.04, subdivision 1, clause (10), until rehabilitation is established according to standards established by the commissioner;
(5) not less than four years if the
violation resulted in bodily harm or substantial bodily harm to another and the
person has a qualified prior impaired driving incident within the past ten
years; or
(6) not less than two years if the
violation resulted in bodily harm or substantial bodily harm to another.
(c) Section 169A.09 applies when
determining the number of qualified prior impaired driving incidents under this
subdivision.
EFFECTIVE DATE. This section is effective July 1, 2014, and
applies to crimes committed on or after that date.
Sec. 13. [171.187]
SUSPENSION; CRIMINAL VEHICULAR OPERATION AND MANSLAUGHTER.
Subdivision 1. Suspension
required. The commissioner
shall suspend the driver's license of a person:
(1) for whom a peace officer has made
the certification described in section 629.344 that probable cause exists to
believe that the person violated section 609.21, subdivision 1, clause (2),
(3), (4), (5), or (6); or
(2) who has been formally charged with
a violation of section 609.20, 609.205, or 609.21, resulting from the operation
of a motor vehicle.
Subd. 2. Suspension
period. A suspension under
this section continues until:
(1) the conviction, acquittal,
or dismissal of the underlying crime that resulted in the suspension; or
(2) the commissioner, acting under
subdivision 4, orders the termination of the suspension.
Subd. 3. Credit. If a person whose driver's license was
suspended under subdivision 1 is later convicted of the underlying offense that
resulted in the suspension and the commissioner revokes the person's license,
the commissioner shall credit the time accrued under the suspension period
toward the revocation period imposed under section
171.17, subdivision 4, or for violations of section 609.20, 609.205, or 609.21,
subdivision 1, clause (1), (7), or (8).
Subd. 4. Administrative
review of license suspension. (a)
At any time during which a person's driver's license is suspended under this
section, the person may request in writing a review of the suspension by the
commissioner. Upon receiving a request,
the commissioner or the commissioner's designee shall review the order of
suspension, the evidence upon which the order was based, and any other material
information brought to the attention of the commissioner, and determine whether
sufficient cause exists to sustain the order.
Within 15 days of receiving the request, the commissioner shall report
in writing the results of the review. The
review provided in this subdivision is not subject to the contested case
provisions in chapter 14.
(b) In addition to any other reason
provided for in this subdivision, a person may request a review of the
suspension by the commissioner if the suspension has been in place for at least
three months and the person has not been indicted or formally charged with the
underlying crime that resulted in the license suspension.
EFFECTIVE DATE. This section is effective July 1, 2014, and
applies to crimes committed on or after that date.
Sec. 14. Minnesota Statutes 2012, section 171.30, subdivision 1, is amended to read:
Subdivision 1. Conditions of issuance. (a) The commissioner may issue a limited license to the driver under the conditions in paragraph (b) in any case where a person's license has been:
(1) suspended under section 171.18,
171.173, or 171.186, or 171.187;
(2) revoked, canceled, or denied under section:
(i) 169.792;
(ii) 169.797;
(iii) 169A.52:
(A) subdivision 3, paragraph (a), clause (1) or (2);
(B) subdivision 3, paragraph (a), clause (4), (5), or (6), if in compliance with section 171.306;
(C) subdivision 4, paragraph (a), clause (1) or (2), if the test results indicate an alcohol concentration of less than twice the legal limit;
(D) subdivision 4, paragraph (a), clause (4), (5), or (6), if in compliance with section 171.306;
(iv) 171.17; or
(v) 171.172; or
(3) revoked, canceled, or denied under section 169A.54:
(i) subdivision 1, clause (1), if the test results indicate an alcohol concentration of less than twice the legal limit;
(ii) subdivision 1, clause (2);
(iii) subdivision 1, clause (5), (6), or (7), if in compliance with section 171.306; or
(iv) subdivision 2, if the person does not have a qualified prior impaired driving incident as defined in section 169A.03, subdivision 22, on the person's record, and the test results indicate an alcohol concentration of less than twice the legal limit.
(b) The following conditions for a limited license under paragraph (a) include:
(1) if the driver's livelihood or attendance at a chemical dependency treatment or counseling program depends upon the use of the driver's license;
(2) if the use of a driver's license by a homemaker is necessary to prevent the substantial disruption of the education, medical, or nutritional needs of the family of the homemaker; or
(3) if attendance at a postsecondary institution of education by an enrolled student of that institution depends upon the use of the driver's license.
(c) The commissioner in issuing a limited license may impose such conditions and limitations as in the commissioner's judgment are necessary to the interests of the public safety and welfare including reexamination as to the driver's qualifications. The license may be limited to the operation of particular vehicles, to particular classes and times of operation, and to particular conditions of traffic. The commissioner may require that an applicant for a limited license affirmatively demonstrate that use of public transportation or carpooling as an alternative to a limited license would be a significant hardship.
(d) For purposes of this subdivision:
(1) "homemaker" refers to the person primarily performing the domestic tasks in a household of residents consisting of at least the person and the person's dependent child or other dependents; and
(2) "twice the legal limit" means an alcohol concentration of two times the limit specified in section 169A.20, subdivision 1, clause (5).
(e) The limited license issued by the commissioner shall clearly indicate the limitations imposed and the driver operating under the limited license shall have the license in possession at all times when operating as a driver.
(f) In determining whether to issue a limited license, the commissioner shall consider the number and the seriousness of prior convictions and the entire driving record of the driver and shall consider the number of miles driven by the driver annually.
(g) If the person's driver's license or permit to drive has been revoked under section 169.792 or 169.797, the commissioner may only issue a limited license to the person after the person has presented an insurance identification card, policy, or written statement indicating that the driver or owner has insurance coverage satisfactory to the commissioner of public safety. The commissioner of public safety may require the insurance identification card provided to satisfy this subdivision be certified by the insurance company to be noncancelable for a period not to exceed 12 months.
(h) The limited license issued by the commissioner to a person under section 171.186, subdivision 4, must expire 90 days after the date it is issued. The commissioner must not issue a limited license to a person who previously has been issued a limited license under section 171.186, subdivision 4.
(i) The commissioner shall not issue a limited driver's license to any person described in section 171.04, subdivision 1, clause (6), (7), (8), (11), or (14).
(j) The commissioner shall not issue a class A, class B, or class C limited license.
EFFECTIVE DATE. This section is effective July 1, 2014, and
applies to crimes committed on or after that date.
Sec. 15. Minnesota Statutes 2012, section 171.30, subdivision 2a, is amended to read:
Subd. 2a. Other
waiting periods. Notwithstanding
subdivision 2, a limited license shall not be issued for a period of:
(1) 15 days, to a person whose license or privilege has been revoked or suspended for a first violation of section 169A.20, sections 169A.50 to 169A.53, or a statute or ordinance from another state in conformity with either of those sections; or
(2) one year, to a person whose license or privilege has been revoked or suspended for committing manslaughter resulting from the operation of a motor vehicle, committing criminal vehicular homicide or injury under section 609.21, subdivision 1, clause (1), (2), item (ii), (5), (6), (7), or (8), committing criminal vehicular homicide under section 609.21, subdivision 1, clause (2), item (i) or (iii), (3), or (4), or violating a statute or ordinance from another state in conformity with either of those offenses.
EFFECTIVE DATE. This section is effective July 1, 2014, and
applies to crimes committed on or after that date.
Sec. 16. Minnesota Statutes 2012, section 171.30, is amended by adding a subdivision to read:
Subd. 5. Exception;
criminal vehicular operation. Notwithstanding
subdivision 1, the commissioner may not issue a limited license to a person
whose driver's license has been suspended or revoked due to a violation of
section 609.21, subdivision 1, clause (2), item (i) or (iii), (3), or (4),
resulting in bodily harm, substantial bodily harm, or great bodily harm.
EFFECTIVE DATE. This section is effective July 1, 2014, and
applies to crimes committed on or after that date.
Sec. 17. Minnesota Statutes 2012, section 171.306, subdivision 1, is amended to read:
Subdivision
1. Definitions. (a) As used in this section, the terms in
this subdivision have the meanings given them.
(b) "Ignition interlock device" or "device" means equipment that is designed to measure breath alcohol concentration and to prevent a motor vehicle's ignition from being started by a person whose breath alcohol concentration measures 0.02 or higher on the equipment.
(c) "Program participant" means
a person who has qualified to take part in the ignition interlock program
under this section, and whose driver's license has been:
(1) revoked, canceled, or denied
under section 169A.52, 169A.54, or 171.04, subdivision 1, clause (10), and
who has qualified to take part in the ignition interlock program under this
section; or
(2) revoked under section 171.17, subdivision 1, paragraph (a), clause (1), or suspended under section 171.187, for a violation of section 609.21, subdivision 1, clause (2), item (i) or (iii), (3), or (4), resulting in bodily harm, substantial bodily harm, or great bodily harm.
(d) "Qualified prior impaired driving incident" has the meaning given in section 169A.03, subdivision 22.
EFFECTIVE DATE. This section is effective July 1, 2014, and
applies to crimes committed on or after that date.
Sec. 18. Minnesota Statutes 2012, section 171.306, subdivision 4, is amended to read:
Subd. 4. Issuance of restricted license. (a) The commissioner shall issue a class D driver's license, subject to the applicable limitations and restrictions of this section, to a program participant who meets the requirements of this section and the program guidelines. The commissioner shall not issue a license unless the program participant has provided satisfactory proof that:
(1) a certified ignition interlock device has been installed on the participant's motor vehicle at an installation service center designated by the device's manufacturer; and
(2) the participant has insurance coverage on the vehicle equipped with the ignition interlock device. The commissioner shall require the participant to present an insurance identification card, policy, or written statement as proof of insurance coverage, and may require the insurance identification card provided be certified by the insurance company to be noncancelable for a period not to exceed 12 months.
(b) A license issued under authority of this section must contain a restriction prohibiting the program participant from driving, operating, or being in physical control of any motor vehicle not equipped with a functioning ignition interlock device certified by the commissioner. A participant may drive an employer-owned vehicle not equipped with an interlock device while in the normal course and scope of employment duties pursuant to the program guidelines established by the commissioner and with the employer's written consent.
(c) A program participant whose driver's
license has been: (1) revoked
under section 169A.52, subdivision 3, paragraph (a), clause (1), (2), or (3),
or subdivision 4, paragraph (a), clause (1), (2), or (3), or section 169A.54,
subdivision 1, clause (1), (2), (3), or (4),; or (2) revoked under
section 171.17, subdivision 1, paragraph (a), clause (1), or suspended under
section 171.187, for a violation of section 609.21, subdivision 1, clause (2),
item (i) or (iii), (3), or (4), resulting in bodily harm, substantial bodily
harm, or great bodily harm; may apply for conditional reinstatement of the
driver's license, subject to the ignition interlock restriction.
(d) A program participant whose driver's license has been revoked, canceled, or denied under section 169A.52, subdivision 3, paragraph (a), clause (4), (5), or (6), or subdivision 4, paragraph (a), clause (4), (5), or (6), or section 169A.54, subdivision 1, clause (5), (6), or (7), may apply for a limited license, subject to the ignition interlock restriction, if the program participant is enrolled in a licensed chemical dependency treatment or rehabilitation program as recommended in a chemical use assessment, and if the participant meets the other applicable requirements of section 171.30. After completing a licensed chemical dependency treatment or rehabilitation program and one year of limited license use without violating the ignition interlock restriction, the conditions of limited license use, or program guidelines, the participant may apply for conditional reinstatement of the driver's license, subject to the ignition interlock restriction. If the program participant's ignition interlock device subsequently registers a positive breath alcohol concentration of 0.02 or higher, the commissioner shall cancel the driver's license, and the program participant may apply for another limited license according to this paragraph.
(e) Notwithstanding any statute or rule to the contrary, the commissioner has authority to determine when a program participant is eligible for restoration of full driving privileges, except that the commissioner shall not reinstate full driving privileges until the program participant has met all applicable prerequisites for reinstatement under section 169A.55 and until the program participant's device has registered no positive breath alcohol concentrations of 0.02 or higher during the preceding 90 days.
EFFECTIVE DATE. This section is effective July 1, 2014, and
applies to crimes committed on or after that date.
Sec. 19. [174.12]
TRANSPORTATION ECONOMIC DEVELOPMENT PROGRAM.
Subdivision 1. Program
established. (a) The
commissioners of transportation and employment and economic development shall
develop and implement a transportation economic development program, as
provided in this section, that provides financial assistance on a
geographically balanced basis through competitive grants for projects in all
modes of transportation that provide measurable local, regional, or statewide
economic benefit.
(b) The commissioners of transportation
and employment and economic development may provide financial assistance for a
transportation project at their discretion, subject to the requirements of this
section.
Subd. 2. Transportation
economic development accounts. (a)
A transportation economic development account is established in the special
revenue fund under the budgetary jurisdiction of the legislative committees
having jurisdiction over transportation finance. Money in the account may be expended only as
appropriated by law. The account may not
contain money transferred or otherwise provided from the trunk highway fund.
(b) A transportation economic
development account is established in the trunk highway fund. The account consists of funds donated,
allotted, transferred, or otherwise provided to the account. Money in the account may be used only for
trunk highway purposes. All funds in the
account available prior to the effective date of this act are available until
expended.
Subd. 3. Program
administration. In
implementing the transportation economic development program, the commissioners
of transportation and employment and economic development shall make reasonable
efforts to (1) publicize each solicitation for applications among all eligible
recipients, and (2) provide technical and informational assistance in creating
and submitting applications.
Subd. 4. Economic
impact performance measures. The
commissioner of employment and economic development shall develop economic
impact performance measures to analyze projects for which financial assistance
under this section is being applied for or has been previously provided.
Subd. 5. Financial
assistance; criteria. The
commissioners of transportation and employment and economic development shall
establish criteria for evaluating projects for financial assistance under this
section. At a minimum, the criteria must
provide an objective method to prioritize and select projects on the basis of:
(1) the extent to which the project
provides measurable economic benefit;
(2) consistency with relevant state and
local transportation plans;
(3) the availability and commitment of
funding or in-kind assistance for the project from nonpublic sources;
(4) the need for the project as part of
the overall transportation system;
(5) the extent to which completion of
the project will improve the movement of people and freight; and
(6) geographic balance as required
under subdivision 7, paragraph (b).
Subd. 6. Financial
assistance; project evaluation process.
(a) Following the criteria established under subdivision 5, the
commissioner of employment and economic development shall (1) evaluate proposed
projects, and (2) certify those that may receive financial assistance.
(b) As part of the project evaluation
process, the commissioner of transportation shall certify those projects that
constitute an eligible and appropriate transportation project.
Subd. 7. Financial
assistance; awards. (a) The
financial assistance awarded by the commissioners of transportation and
employment and economic development may not exceed 70 percent of a project's
total costs.
(b) The commissioners of transportation
and employment and economic development shall ensure that financial assistance
is provided in a manner that is balanced throughout the state, including with
respect to (1) the number of projects receiving funding in a particular
geographic location or region of the state, and (2) the total amount of
financial assistance provided for projects in a particular geographic location
or region of the state.
Subd. 8. Legislative
report. (a) By February 1 of
each odd-numbered year, the commissioner of transportation, with assistance
from the commissioner of employment and economic development, shall submit a
report on the transportation economic development program to the chairs and ranking
minority members of the legislative committees with jurisdiction over
transportation policy and finance and economic development policy and finance.
(b) At a minimum, the report must:
(1) summarize the requirements and
implementation of the transportation economic development program established
in this section;
(2) review the criteria and economic
impact performance measures used for evaluation, prioritization, and selection
of projects;
(3) provide a brief overview of each
project that received financial assistance under the program, which must at a
minimum identify:
(i)
basic project characteristics, such as funding recipient, geographic location,
and type of transportation modes served;
(ii) sources and respective amounts of
project funding; and
(iii) the degree of economic benefit
anticipated or observed, following the economic impact performance measures
established under subdivision 4;
(4) identify the allocation of funds,
including but not limited to a breakdown of total project funds by
transportation mode, the amount expended for administrative costs, and the
amount transferred to the transportation economic development assistance
account;
(5) evaluate the overall economic
impact of the program consistent with the accountability measurement
requirements under section 116J.997; and
(6) provide recommendations for any
legislative changes related to the program.
Sec. 20. [174.187]
MADE IN MINNESOTA SOLAR INSTALLATIONS.
Subdivision 1. Definition. (a) For the purposes of this section, the
following terms have the meanings given.
(b) "Made in Minnesota" means
the manufacture in this state of solar photovoltaic modules:
(1) at a manufacturing facility located
in Minnesota that is registered and authorized to manufacture and apply the UL
1703 certification mark to solar photovoltaic modules by Underwriters
Laboratory (UL), CSA International, Intertek, or an equivalent UL-approved
independent certification agency;
(2) that bear UL 1703
certification marks from UL, CSA International, Intertek, or an equivalent
UL-approved independent certification agency, which must be physically applied
to the modules at a manufacturing facility described in clause (1); and
(3) that are manufactured in Minnesota:
(i) via manufacturing processes that
must include tabbing, stringing, and lamination; or
(ii) by interconnecting low-voltage
direct current photovoltaic elements that produce the final useful photovoltaic
output of the modules.
(c) "Solar photovoltaic
module" has the meaning given in section 116C.7791, subdivision 1,
paragraph (e).
Subd. 2. Made
in Minnesota solar energy system requirement. Notwithstanding any other law to the
contrary, if the commissioner engages in any project for the construction,
improvement, maintenance, or repair of any building, highway, road, bridge, or
land owned or controlled by the department and the construction, improvement,
maintenance, or repair involves installation of one or more solar photovoltaic
modules, the commissioner must ensure that the solar photovoltaic modules
purchased and installed are "Made in Minnesota" as defined in
subdivision 1, paragraph (b).
Subd. 3. Application. Subdivision 2 does not apply if:
(1) as a condition of the receipt of
federal financial assistance for a specific project, the commissioner is
required to use a procurement method that might result in the award of a
contract to a manufacturer that does not meet the "Made in Minnesota"
criteria established in subdivision 1, paragraph (b); or
(2) no solar photovoltaic modules are available
that meet the "Made in Minnesota" criteria and fulfill the function
required by the project.
Sec. 21. Minnesota Statutes 2012, section 174.40, is amended by adding a subdivision to read:
Subd. 7a. Related
non-infrastructure activities. (a)
The commissioner may not expend an appropriation from the bond proceeds fund,
or provide financial assistance from such appropriations, for the purposes
specified in this subdivision.
(b) Subject to appropriations made
specifically for the purposes of this subdivision, the commissioner may expend
funds for non-infrastructure activities to encourage walking and bicycling to
school, including:
(1) planning activities;
(2) public awareness campaigns and
outreach to press and community leaders;
(3) traffic education and enforcement
in the vicinity of schools;
(4) student sessions on bicycle and
pedestrian safety, health, and the environment; and
(5) financial assistance for training,
volunteers, and managers of safe routes to school programs.
Sec. 22. [174.42]
TRANSPORTATION ALTERNATIVES PROJECTS.
Subdivision 1. Definition. For purposes of this section,
"transportation alternatives" means those projects identified in the
state transportation improvement program as having (1) a program category of
bike trail, enhancement, or recreational trail; (2) any program category that
is substantially similar to a category identified in clause (1); or (3) a route
system category of ped/bike.
Subd. 2. Funding
requirement. In each federal
fiscal year, the commissioner shall obtain a total amount in federal
authorizations for reimbursement on transportation alternatives projects that
is equal to or greater than the annual average of federal authorizations on
transportation alternatives projects calculated over the preceding four federal
fiscal years.
Sec. 23. Minnesota Statutes 2012, section 219.1651, is amended to read:
219.1651
GRADE CROSSING SAFETY ACCOUNT.
A Minnesota grade crossing safety account
is created in the special revenue fund, consisting of money credited to the
account by law. Money in the account is
appropriated to the commissioner of transportation for rail-highway grade
crossing safety projects on public streets and highways, including engineering
costs. At the discretion of the
commissioner of transportation, money in the account at the end of each fiscal
year cancels biennium may cancel to the trunk highway fund.
Sec. 24. Minnesota Statutes 2012, section 297A.815, subdivision 3, is amended to read:
Subd. 3. Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision, "net revenue" means an amount equal to:
(1) the revenues, including interest and penalties, collected under this section, during the fiscal year; less
(2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal year 2013 and following fiscal years, $32,000,000.
(b) On or before June 30 of each fiscal year, the commissioner of revenue shall estimate the amount of the revenues and subtraction under paragraph (a) for the current fiscal year.
(c) On or after July 1 of the subsequent fiscal year, the commissioner of management and budget shall transfer the net revenue as estimated in paragraph (b) from the general fund, as follows:
(1) 50 percent to the greater Minnesota
transit account; and
(2) 50
percent $9,000,000 annually
until January 1, 2016, and 50 percent annually thereafter to the county
state‑aid highway fund. Notwithstanding
any other law to the contrary, the commissioner of transportation shall
allocate the funds transferred under this clause to the counties in the
metropolitan area, as defined in section 473.121, subdivision 4, excluding the
counties of Hennepin and Ramsey, so that each county shall receive of such
amount the percentage that its population, as defined in section 477A.011,
subdivision 3, estimated or established by July 15 of the year prior to the
current calendar year, bears to the total population of the counties receiving
funds under this clause; and
(2) the remainder to the greater Minnesota transit account.
(d) For fiscal years 2010 and
2011, the amount under paragraph (a), clause (1), must be calculated using the
following percentages of the total revenues:
(1) for fiscal year 2010, 83.75 percent;
and
(2) for fiscal year 2011, 93.75 percent.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 25. Minnesota Statutes 2012, section 297A.993, subdivision 1, is amended to read:
Subdivision 1. Authorization;
rates. Notwithstanding section
297A.99, subdivisions 1, 2, 3, 5, and 13, or 477A.016, or any other law, the
board of a county outside the metropolitan transportation area, as defined
under section 297A.992, subdivision 1, or more than one county outside the metropolitan
transportation area acting under a joint powers agreement, may by resolution
of the county board, or each of the county boards, following a public hearing
impose (1) a transportation sales tax at a rate of up to one-half of one
percent on retail sales and uses taxable under this chapter, and (2) an excise
tax of $20 per motor vehicle, as defined in section 297B.01, subdivision 11,
purchased or acquired from any person engaged in the business of selling motor
vehicles at retail, occurring within the jurisdiction of the taxing authority. The taxes imposed under this section are
subject to approval by a majority of the voters in each of the counties
affected at a general election who vote on the question to impose the taxes.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 26. Minnesota Statutes 2012, section 297A.993, subdivision 2, is amended to read:
Subd. 2. Allocation;
termination. The proceeds of the
taxes must be dedicated exclusively to:
(1) payment of the capital cost of a specific transportation
project or improvement; (2) payment of the costs, which may include both
capital and operating costs, of a specific transit project or improvement; (3)
payment of the capital costs of a safe routes to school program under section
174.40; or (4) payment of transit operating costs. The transportation or transit project
or improvement must be designated by the board of the county, or more than one
county acting under a joint powers agreement.
Except for taxes for operating costs of a transit project or
improvement, or for transit operations, the taxes must terminate after
the project or improvement has been completed when revenues raised are
sufficient to finance the project.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 27. Minnesota Statutes 2012, section 297B.01, subdivision 14, is amended to read:
Subd. 14. Purchase price. (a) "Purchase price" means the total consideration valued in money for a sale, whether paid in money or otherwise. The purchase price excludes the amount of a manufacturer's rebate paid or payable to the purchaser. If a motor vehicle is taken in trade as a credit or as part payment on a motor vehicle taxable under this chapter, the credit or trade-in value allowed by the person selling the motor vehicle shall be deducted from the total selling price to establish the purchase price of the vehicle being sold and the trade-in allowance allowed by the seller shall constitute the purchase price of the motor vehicle accepted as a trade-in. The purchase price in those instances where the motor vehicle is acquired by gift or by any other transfer for a nominal or no monetary consideration shall also include the average value of similar motor vehicles, established by standards and guides as determined by the motor vehicle registrar. The purchase price in those instances where a motor vehicle is manufactured by a person who registers it under the laws of this state shall mean the manufactured cost of such motor vehicle and manufactured cost shall mean the amount expended for materials, labor, and other properly allocable costs of manufacture, except that in the absence of actual expenditures for the manufacture of a part or all of the motor vehicle, manufactured costs shall mean the reasonable value of the completed motor vehicle.
(b) The term "purchase price" shall not include the portion of the value of a motor vehicle due solely to modifications necessary to make the motor vehicle disability accessible.
(c) The term "purchase price"
shall not include the transfer of a motor vehicle by way of gift between a
husband and wife or parent and child, or to a nonprofit organization as
provided under subdivision 16, paragraph (c), clause (5) (6), nor
shall it include the transfer of a motor vehicle by a guardian to a ward when
there is no monetary consideration and the title to such vehicle was registered
in the name of the guardian, as guardian, only because the ward was a minor.
(d) The term "purchase price" shall not include the transfer of a motor vehicle as a gift between a foster parent and foster child. For purposes of this subdivision, a foster relationship exists, regardless of the age of the child, if (1) a foster parent's home is or was licensed as a foster family home under Minnesota Rules, parts 9545.0010 to 9545.0260, and (2) the county verifies that the child was a state ward or in permanent foster care.
(e) There shall not be included in "purchase price" the amount of any tax imposed by the United States upon or with respect to retail sales whether imposed upon the retailer or the consumer.
EFFECTIVE
DATE. This section is
effective July 1, 2013, and applies to transfers of title that occur on or
after that date.
Sec. 28. Minnesota Statutes 2012, section 297B.01, subdivision 16, is amended to read:
Subd. 16. Sale, sells, selling, purchase, purchased, or acquired. (a) "Sale," "sells," "selling," "purchase," "purchased," or "acquired" means any transfer of title of any motor vehicle, whether absolutely or conditionally, for a consideration in money or by exchange or barter for any purpose other than resale in the regular course of business.
(b) Any motor vehicle utilized by the owner only by leasing such vehicle to others or by holding it in an effort to so lease it, and which is put to no other use by the owner other than resale after such lease or effort to lease, shall be considered property purchased for resale.
(c) The terms also shall include any transfer of title or ownership of a motor vehicle by other means, for or without consideration, except that these terms shall not include:
(1) the acquisition of a motor vehicle by inheritance from or by bequest of, a decedent who owned it;
(2) the transfer of a motor vehicle which was previously licensed in the names of two or more joint tenants and subsequently transferred without monetary consideration to one or more of the joint tenants;
(3) the transfer of a motor vehicle by way
of gift between individuals, or gift from a limited used vehicle dealer
licensed under section 168.27, subdivision 4a, to an individual, when the
transfer is with no monetary or other consideration or expectation of
consideration and the parties to the transfer submit an affidavit to that
effect at the time the title transfer is recorded;
(4) the transfer of a motor vehicle by
gift between:
(i) spouses;
(ii) parents and a child; or
(iii) grandparents and a grandchild;
(5)
(5) (6) the transfer of a
motor vehicle by way of a gift to an organization that is exempt from federal
income taxation under section 501(c)(3) of the Internal Revenue Code when the
motor vehicle will be used exclusively for religious, charitable, or
educational purposes.
EFFECTIVE
DATE. This section is
effective July 1, 2013, and applies to transfers of title that occur on or
after that date.
Sec. 29. Minnesota Statutes 2012, section 297B.02, subdivision 3, is amended to read:
Subd. 3. In
lieu tax for collector vehicle. In
lieu of the tax imposed in subdivision 1, there is imposed a tax of $90 $150
on the purchase price of a passenger automobile or a fire truck described in
section 297B.025, subdivision 2.
EFFECTIVE
DATE. This section is
effective July 1, 2013, and applies to transfers of title that occur on or
after that date.
Sec. 30. Minnesota Statutes 2012, section 299E.01, subdivision 2, is amended to read:
Subd. 2. Responsibilities. (a) The division shall be responsible
and shall utilize state employees for security and public information services
in state-owned buildings and state leased-to-own buildings in the Capitol area,
as described in section 15B.02;.
It shall provide such personnel as are required by the circumstances
to insure the orderly conduct of state business and the convenience of the
public.
(b) As part of the division permanent
staff, the director must establish the position of emergency manager that
includes, at a minimum, the following duties:
(1) oversight of the consolidation,
development, and maintenance of plans and procedures that provide continuity of
security operations;
(2) the development and implementation
of tenant training that addresses threats and emergency procedures; and
(3) the development and implementation
of threat and emergency exercises.
(c) The director must provide a minimum
of one state trooper assigned to the Capitol complex at all times.
(d) The director, in consultation with
the advisory committee under section 299E.04, shall, at least annually, hold a
meeting or meetings to discuss, among other issues, Capitol complex security,
emergency planning, public safety, and public access to the Capitol complex. The meetings must include, at a minimum:
(1) Capitol complex tenants and state
employees;
(2) nongovernmental entities, such as
lobbyists, vendors, and the media; and
(3) the public and public advocacy
groups.
Sec. 31. Minnesota Statutes 2012, section 299E.01, subdivision 3, is amended to read:
Subd. 3. Powers
and duties transferred. All powers,
duties and responsibilities heretofore assigned by law to the commissioner of
administration relating to the general function of security in such Capitol
complex state-owned buildings are hereby transferred to the commissioner of
public safety. The commissioner of
public safety shall have
the final authority regarding
public safety and security in the Capitol complex. The commissioner of administration shall have
the powers, duties, and responsibilities relating to the Capitol complex of
state-owned buildings as provided under chapter 16B.
Sec. 32. Minnesota Statutes 2012, section 299E.02, is amended to read:
299E.02
CONTRACT SERVICES INTERAGENCY AGREEMENT; APPROPRIATION.
Fees charged for contracted The
commissioner of public safety shall execute interagency agreements with agency
tenants in the Capitol complex whereby fees for the provision of security
services are charged. Fees charged for
security services provided by the Capitol Complex Security Division of the
Department of Public Safety must be deposited in an account in the special
revenue fund and are annually appropriated to the commissioner of public safety
to administer and provide these services.
Sec. 33. Minnesota Statutes 2012, section 398A.10, is amended by adding a subdivision to read:
Subd. 4. Definition. For purposes of this section,
"project" means the initial construction of a minimum operable
segment of a new light rail transit or commuter rail line, but does not include
infill stations, project enhancements, extensions, or supportive
infrastructure, constructed after the rail transit is operational.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 34. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision to read:
Subd. 1s. Obligations. After July 1, 2013, in addition to
other authority in this section, the council may issue certificates of
indebtedness, bonds, or other obligations under this section in an amount not
exceeding $35,800,000 for capital expenditures as prescribed in the council's
transit capital improvement program and for related costs, including the costs
of issuance and sale of the obligations.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies in the counties of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
Sec. 35. [629.344]
CRIMINAL VEHICULAR OPERATION AND MANSLAUGHTER; CERTIFICATION OF PROBABLE CAUSE BY PEACE OFFICER.
If a peace officer determines that
probable cause exists to believe that a person has violated section 609.21,
subdivision 1, clause (2), (3), (4), (5), or (6), the officer shall certify
this determination and notify the commissioner of public safety.
EFFECTIVE DATE. This section is effective July 1, 2014, and
applies to crimes committed on or after that date.
Sec. 36. Laws 2009, chapter 9, section 1, the effective date, is amended to read:
EFFECTIVE DATE.
This section is effective
the day following final enactment, and expires on June 30, 2013 2016.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 37. NOVICE
DRIVER EDUCATION IMPROVEMENT TASK FORCE.
(a) The Novice Driver Education
Improvement Task Force is established to ensure driver education programs in
Minnesota meet the Novice Teen Driver Education and Training Administrative
Standards published by the United States Department of Transportation, National
Highway Traffic Safety Administration.
(b) The task force consists of 21
members:
(1) the commissioner of public safety
or the commissioner's designee;
(2) two representatives from and
designated by the Minnesota Association of Student Councils;
(3) one representative from and
designated by Mothers Against Drunk Driving;
(4) one representative from and
designated by Minnesotans for Safe Driving;
(5) two representatives from law
enforcement organizations, such as the Minnesota Chiefs of Police Association
and the Minnesota Sheriffs' Association, appointed by the commissioner;
(6) one representative from and
designated by the American Automobile Association;
(7) one representative from and
designated by the Minnesota Safety Council;
(8) two representatives from and
designated by the Minnesota PTA;
(9) five driver educators from the
Minnesota Driver and Traffic Safety Education Association, designated by the
commissioner; and
(10) five driver educators from
commercial driving schools, designated by the commissioner.
(c) Any vacancies shall be filled by
the appointing or designating authorities.
(d) Members shall serve without
compensation.
(e) Members shall be appointed or
designated by August 1, 2013.
(f) The commissioner or the
commissioner's designee shall convene the first meeting of the task force after
all appointments have been made. At the
first meeting, the task force shall elect a chair from among its members by
majority vote. The first meeting must
take place by September 1, 2013.
(g) The duties of the task force are to
examine and compare Minnesota law and rules concerning driver education with
the Novice Teen Driver Education and Training Administrative Standards,
identify discrepancies, and determine to what extent, if any, state law should
be modified to conform with federal standards.
(h) The commissioner shall provide
support staff and administrative services for the task force.
(i) The task force shall submit a
report no later than August 31, 2015, to the chairs and ranking minority
members of the committees in the house of representatives and senate having
jurisdiction over transportation policy and finance, containing its
recommendation as to whether or to what extent Minnesota's driver education
programs
should
conform to national standards referenced in paragraph (a), and if so, providing
draft legislation necessary or desirable to achieve the recommended level of
federal conformity. The report may
present recommendations for improving Minnesota's driver education curriculum
and identify associated costs.
EFFECTIVE DATE. This section is effective the day following final
enactment and is repealed September 1, 2015, or the day after the task
force submits its report, as required in paragraph (i), whichever occurs first.
Sec. 38. TRANSITWAY
COMMUNITY ENGAGEMENT.
(a) In all phases of a transitway
project in which the Metropolitan Council is the lead transportation authority,
the council may partner and contract for services with local community-based
organizations to promote community engagement activities along the project
corridor. The community-based
organizations may include those organizations representative of low-income
people, people of color, people with disabilities, other cultural
constituencies, or small businesses.
(b) For purposes of this section,
project phases may include, but are not limited to:
(1) feasibility studies, alternatives
analysis, preplanning, environmental analysis, land acquisition, easements,
design, preliminary and final engineering, construction, and station
development;
(2) review of existing public transit
service along the corridor; and
(3) pedestrian, bicycle, or
nonmotorized improvement projects associated with the corridor.
(c) Any community engagement activities
conducted under this section shall be reported to the senate and house of
representative chairs and ranking minority members of the committees and
divisions with primary jurisdiction over transportation policy and finance.
Sec. 39. TRANSPORTATION
INFRASTRUCTURE HIRING AND RECRUITMENT.
(a) In the construction, maintenance,
replacement, and improvement of transit and transportation infrastructure, the
lead transportation authority is encouraged to:
(1) make every effort to employ, and encourage the construction manager
and other subcontractors and vendors to employ, women and members of minority
communities; (2) make every effort to contract with women-owned and
minority-owned small businesses designated as small targeted group businesses
under Minnesota Statutes, section 16C.16; and (3) may contract with a
community-based employment assistance firm to create an employment program to
recruit, hire, and retain women and minorities for the project construction
workforce. In monitoring progress on
meeting these goals, reports may track workers from zip codes that have high
rates of poverty and unemployment.
(b) The commissioner of transportation
is encouraged to increase participation in Department of Transportation highway
projects by small businesses located in economically disadvantaged areas of
Minnesota, within the meaning of Minnesota Statutes, section 16C.16,
subdivision 7.
Sec. 40. FINANCIAL
ASSISTANCE FOR NORTHSTAR COMMUTER RAIL EXPENSES; GREATER MINNESOTA.
The portion of the cost to provide
financial assistance for the Greater Minnesota Transit component of the
Northstar Commuter Rail is exempt from the requirements in Minnesota Statutes,
section 174.24, subdivision 1.
Sec. 41. REPEALER.
(a) Minnesota Statutes 2012, sections
161.04, subdivision 6; and 174.285, subdivision 8, are repealed.
(b) Minnesota Rules, parts 7503.0300,
subpart 1; and 7503.0800, subpart 2, are repealed effective July 1, 2014.
ARTICLE 4
MISCELLANEOUS
Section 1. 2013 S. F. No. 671, article 1, section 12, subdivision 3, if enacted, is amended to read:
|
Subd. 3. Criminal
Apprehension |
|
47,588,000 |
|
47,197,000 |
|
Appropriations by Fund |
||
|
|
||
|
General |
42,315,000 |
42,924,000 |
|
Special Revenue |
3,000,000 |
2,000,000 |
|
State Government Special Revenue |
7,000 |
7,000 |
|
Trunk Highway |
2,266,000 |
2,266,000 |
|
(a) DWI Lab Analysis; Trunk Highway Fund |
|
|
|
|
Notwithstanding Minnesota Statutes, section 161.20, subdivision 3, $1,941,000 each year is from the trunk highway fund for laboratory analysis related to driving-while-impaired cases.
|
(b) Criminal History System |
|
|
|
|
$50,000 the first year and $580,000 the second year from the general fund and, notwithstanding Minnesota Statutes, section 299A.705, subdivision 4, $3,000,000 the first year and $2,000,000 the second year from the vehicle services account in the special revenue fund are to replace the state criminal history system. This is a onetime appropriation and is available until expended. Of this amount, $2,980,000 the first year and $2,580,000 the second year are for a onetime transfer to the Office of Enterprise Technology for start-up costs. Service level agreements must document all project-related transfers under this paragraph. Ongoing operating and support costs for this system shall be identified and incorporated into future service level agreements.
The commissioner is authorized to use funds appropriated under this paragraph for the purposes specified in paragraph (c).
|
(c) Criminal Reporting System |
|
|
|
|
$1,360,000 the first year and $1,360,000 the second year from the general fund are to replace the state's crime reporting system. This is a onetime appropriation and is available until expended. Of these amounts, $1,360,000 the first year and $1,360,000 the second
year are for a onetime transfer to the Office of Enterprise Technology for start-up costs. Service level agreements must document all project-related transfers under this paragraph. Ongoing operating and support costs for this system shall be identified and incorporated into future service level agreements.
The commissioner is authorized to use funds appropriated under this paragraph for the purposes specified in paragraph (b).
|
(d) Forensic Laboratory |
|
|
|
|
$125,000 the first year and $125,000 the second year from the general fund and, notwithstanding Minnesota Statutes, section 161.20, subdivision 3, $125,000 the first year and $125,000 the second year from the trunk highway fund are to replace forensic laboratory equipment at the Bureau of Criminal Apprehension.
$200,000 the first year and $200,000 the second year from the general fund and, notwithstanding Minnesota Statutes, section 161.20, subdivision 3, $200,000 the first year and $200,000 the second year from the trunk highway fund are to improve forensic laboratory staffing at the Bureau of Criminal Apprehension.
|
(e) Livescan Fingerprinting |
|
|
|
|
$310,000 the first year and $389,000 the second year from the general fund are to maintain Livescan fingerprinting machines. This is a onetime appropriation.
|
|
|
|
|
|
The Bureau of Criminal Apprehension's
general fund base is reduced by $1,720,000 in fiscal year 2014 and $2,329,000
in fiscal year 2015 to reflect onetime appropriations.
|
|
|
|
|
|
If the vehicle services special revenue account accrues an unallocated balance in excess of 50 percent of the previous fiscal year's expenditures, the commissioner of public safety shall submit a report to the chairs and ranking minority members of the house of representatives and senate committees with jurisdiction over transportation and public safety policy and finance. The report must contain specific policy and legislative recommendations for reducing the fund balance and avoiding future excessive fund balances. The report is due within three months of the fund balance exceeding the threshold established in this paragraph.
Sec. 2. EFFECTIVE
DATE.
Unless otherwise provided, section 1 takes effect at the time the provision being corrected takes effect."
Delete the title and insert:
"A bill for an act relating to government finance; appropriating money for transportation, Metropolitan Council, and public safety activities and programs; providing for fund transfers, tort claims, and contingent appropriations; modifying policy and tax provisions relating to transportation, transit, and public safety; making technical and clarifying changes; amending Minnesota Statutes 2012, sections 161.20, subdivision 3; 161.53; 163.051; 168A.01, subdivision 6a; 168A.29, subdivision 1; 169A.37, subdivision 1; 169A.51, subdivision 2; 169A.55, by adding a subdivision; 171.05, subdivision 2; 171.061, subdivision 4; 171.17, by adding a subdivision; 171.30, subdivisions 1, 2a, by adding a subdivision; 171.306, subdivisions 1, 4; 174.40, by adding a subdivision; 219.1651; 297A.815, subdivision 3; 297A.993, subdivisions 1, 2; 297B.01, subdivisions 14, 16; 297B.02, subdivision 3; 299E.01, subdivisions 2, 3; 299E.02; 398A.10, by adding a subdivision; 473.39, by adding a subdivision; Laws 2009, chapter 9, section 1; 2013 S. F. No. 671, article 1, section 12, subdivision 3, if enacted; proposing coding for new law in Minnesota Statutes, chapters 161; 171; 174; 629; repealing Minnesota Statutes 2012, sections 161.04, subdivision 6; 174.285, subdivision 8; Minnesota Rules, parts 7503.0300, subpart 1; 7503.0800, subpart 2."
We request the adoption of this report and repassage of the bill.
House
Conferees: Frank Hornstein, Ron Erhardt, Connie Bernardy and Mike Sundin.
Senate Conferees: D. Scott Dibble, Vicki Jensen, Susan Kent and Bobby Joe Champion.
Hornstein moved that the report of the
Conference Committee on H. F. No. 1444 be adopted and that the
bill be repassed as amended by the Conference Committee.
A roll call was requested and properly
seconded.
The question was taken on the Hornstein
motion and the roll was called. There
were 79 yeas and 48 nays as follows:
Those who voted in the affirmative were:
Allen
Anzelc
Atkins
Benson, J.
Bernardy
Bly
Brynaert
Carlson
Clark
Davnie
Dehn, R.
Dill
Dorholt
Erhardt
Erickson, R.
Fabian
Falk
Fischer
Freiberg
Fritz
Gunther
Halverson
Hamilton
Hansen
Hausman
Hornstein
Hortman
Huntley
Isaacson
Johnson, C.
Johnson, S.
Kahn
Kiel
Laine
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
McNamar
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Paymar
Pelowski
Persell
Petersburg
Poppe
Radinovich
Rosenthal
Savick
Sawatzky
Schoen
Selcer
Simon
Simonson
Slocum
Sundin
Torkelson
Uglem
Urdahl
Wagenius
Ward, J.A.
Ward, J.E.
Winkler
Yarusso
Spk. Thissen
Those who voted in the negative were:
Albright
Anderson, M.
Anderson, P.
Anderson, S.
Barrett
Beard
Benson, M.
Cornish
Daudt
Davids
Dean, M.
Dettmer
Drazkowski
Erickson, S.
FitzSimmons
Franson
Garofalo
Green
Gruenhagen
Hackbarth
Hertaus
Holberg
Hoppe
Howe
Johnson, B.
Kieffer
Leidiger
Loon
Mack
McDonald
McNamara
Myhra
Newberger
Nornes
O'Driscoll
O'Neill
Pugh
Quam
Runbeck
Sanders
Schomacker
Scott
Swedzinski
Theis
Wills
Woodard
Zellers
Zerwas
The
motion prevailed.
H. F. No. 1444, A bill for an act relating to government finance; appropriating money for transportation, Metropolitan Council, and public safety activities and programs; providing for fund transfers, tort claims, and certain contingent appropriations; modifying various provisions related to transportation finance and policy; making technical and clarifying changes; amending Minnesota Statutes 2012, sections 161.20, subdivision 3; 161.44, by adding a subdivision; 168A.01, subdivision 6a; 171.05, subdivision 2, by adding a subdivision; 171.061, subdivision 4; 174.40, by adding a subdivision; 219.1651; 299E.01, subdivisions 2, 3; 398A.10, by adding a subdivision; Laws 2009, chapter 9, section 1; proposing coding for new law in Minnesota Statutes, chapters 161; 174; repealing Minnesota Statutes 2012, sections 161.04, subdivision 6; 174.285, subdivision 8.
The bill was read for the third time, as
amended by Conference, and placed upon its repassage.
The question was taken on the repassage of
the bill and the roll was called. There
were 77 yeas and 53 nays as follows:
Those who voted in the affirmative were:
Allen
Anzelc
Atkins
Benson, J.
Bernardy
Bly
Brynaert
Carlson
Clark
Davnie
Dehn, R.
Dill
Dorholt
Erhardt
Erickson, R.
Falk
Faust
Fischer
Freiberg
Fritz
Gunther
Halverson
Hamilton
Hansen
Hausman
Hornstein
Hortman
Huntley
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
McNamar
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Paymar
Pelowski
Persell
Petersburg
Poppe
Radinovich
Rosenthal
Savick
Sawatzky
Schoen
Selcer
Simon
Simonson
Slocum
Sundin
Torkelson
Uglem
Wagenius
Ward, J.A.
Ward, J.E.
Winkler
Yarusso
Spk. Thissen
Those who voted in the negative were:
Abeler
Albright
Anderson, M.
Anderson, P.
Anderson, S.
Barrett
Beard
Benson, M.
Cornish
Daudt
Davids
Dean, M.
Dettmer
Drazkowski
Erickson, S.
Fabian
FitzSimmons
Franson
Garofalo
Green
Gruenhagen
Hackbarth
Hertaus
Holberg
Hoppe
Howe
Johnson, B.
Kelly
Kieffer
Kiel
Leidiger
Loon
Mack
McDonald
McNamara
Myhra
Newberger
Nornes
O'Driscoll
O'Neill
Pugh
Quam
Runbeck
Sanders
Schomacker
Scott
Swedzinski
Theis
Urdahl
Wills
Woodard
Zellers
Zerwas
The bill was repassed, as amended by
Conference, and its title agreed to.
CALENDAR FOR THE DAY, Continued
TAKEN FROM
THE TABLE
Murphy,
E., moved that S. F. No. 778 be taken from the table.
A roll call was requested and properly
seconded.
The question was taken on the Murphy, E.,
motion and the roll was called. There
were 69 yeas and 59 nays as follows:
Those who voted in the affirmative were:
Allen
Anzelc
Atkins
Benson, J.
Bernardy
Bly
Brynaert
Carlson
Clark
Davnie
Dehn, R.
Dill
Dorholt
Erhardt
Erickson, R.
Falk
Fischer
Freiberg
Fritz
Halverson
Hansen
Hausman
Hornstein
Hortman
Huntley
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lenczewski
Lesch
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
McNamar
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Paymar
Pelowski
Persell
Poppe
Radinovich
Rosenthal
Savick
Sawatzky
Schoen
Selcer
Simon
Simonson
Slocum
Sundin
Wagenius
Ward, J.A.
Ward, J.E.
Winkler
Yarusso
Spk. Thissen
Those who voted in the negative were:
Abeler
Albright
Anderson, M.
Anderson, P.
Anderson, S.
Barrett
Beard
Benson, M.
Cornish
Daudt
Davids
Dean, M.
Dettmer
Drazkowski
Fabian
Faust
FitzSimmons
Franson
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hertaus
Holberg
Hoppe
Howe
Johnson, B.
Kelly
Kieffer
Kiel
Leidiger
Liebling
Loon
Mack
McDonald
McNamara
Myhra
Newberger
Nornes
O'Driscoll
O'Neill
Petersburg
Pugh
Quam
Runbeck
Sanders
Schomacker
Scott
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Wills
Woodard
Zellers
Zerwas
The motion prevailed and S. F. No. 778 was
taken from the table.
S. F. No. 778 was reported
to the House.
Mack moved to amend S. F. No. 778, the fifth engrossment, as follows:
Page 3, after line 36, insert:
"Subd. 11. Recission of union membership. A family child care provider may rescind membership in an employee organization certified under this section at any time."
Page 6, after line 32, insert:
"Subd. 11. Recission of union membership. An individual provider may rescind membership in an employee organization certified under this section at any time"
Renumber the subdivisions in sequence
Amend the title accordingly
A roll call was requested and properly
seconded.
The Speaker called Hortman to the Chair.
The question was taken on the Mack
amendment and the roll was called. There
were 58 yeas and 72 nays as follows:
Those who voted in the affirmative were:
Abeler
Albright
Anderson, M.
Anderson, P.
Anderson, S.
Barrett
Beard
Benson, M.
Daudt
Davids
Dean, M.
Dettmer
Drazkowski
Erickson, S.
Fabian
FitzSimmons
Franson
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hertaus
Holberg
Hoppe
Howe
Johnson, B.
Kelly
Kieffer
Kiel
Kresha
Leidiger
Loon
Mack
McDonald
McNamara
Myhra
Newberger
Nornes
O'Driscoll
O'Neill
Petersburg
Pugh
Quam
Runbeck
Sanders
Schomacker
Scott
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Wills
Woodard
Zellers
Zerwas
Those who voted in the negative were:
Allen
Anzelc
Atkins
Benson, J.
Bernardy
Bly
Brynaert
Carlson
Clark
Cornish
Davnie
Dehn, R.
Dill
Dorholt
Erhardt
Erickson, R.
Falk
Faust
Fischer
Freiberg
Fritz
Halverson
Hansen
Hausman
Hilstrom
Hornstein
Hortman
Huntley
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lenczewski
Lesch
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
McNamar
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Paymar
Pelowski
Persell
Poppe
Radinovich
Rosenthal
Savick
Sawatzky
Schoen
Selcer
Simon
Simonson
Slocum
Sundin
Wagenius
Ward, J.A.
Ward, J.E.
Winkler
Yarusso
Spk. Thissen
The
motion did not prevail and the amendment was not adopted.
Hilstrom was excused between the hours of 5:15 p.m. and 7:15
p.m.
Mack moved to amend S. F. No. 778, the fifth engrossment, as follows:
Page 2, line 6, before "For" insert "(a)"
Page 2, after line 16, insert:
"(b) No family child care provider may be compelled to join or participate in the activities of a labor organization and shall not be compelled to abide by any negotiated agreements or arbitration decisions. A family child care provider who chooses not to join or participate in the activities of a labor organization and who chooses not to abide by any negotiated agreements or arbitration decisions must not be required to pay fair share or other mandatory fees."
Page 3, line 32, delete "or"
Page 3, after line 32, insert:
"(3) the right of a family child
care provider to rescind membership in a labor organization at any time;
(4) family child care provider rights to form associations of member-managed organizations to advocate on issues and concerns; or"
Page 3, line 33, delete "(3)" and insert "(5)"
Page 6, line 32, after the period, insert "No individual provider may be compelled to join or participate in the activities of a labor organization and shall not be compelled to abide by any negotiated agreements or arbitration decisions. An individual provider who chooses not to join or participate in the activities of a labor organization and who chooses not to abide by any negotiated agreements or arbitration decisions must not be required to pay fair share or other mandatory fees. Nothing in this section shall be construed to interfere with the right of an individual provider to rescind membership in a labor organization at any time or to interfere with the rights or obligations of individual providers to form associations or member-managed organizations to advocate on issues and concerns."
Renumber the sections in sequence and correct the internal references
Amend the title accordingly
A roll call was requested and properly
seconded.
The question was taken on the Mack
amendment and the roll was called. There
were 60 yeas and 71 nays as follows:
Those who voted in the affirmative were:
Abeler
Albright
Anderson, M.
Anderson, P.
Anderson, S.
Barrett
Beard
Benson, M.
Cornish
Daudt
Davids
Dean, M.
Dettmer
Drazkowski
Erickson, S.
Fabian
FitzSimmons
Franson
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Hamilton
Hertaus
Holberg
Hoppe
Howe
Johnson, B.
Kelly
Kieffer
Kiel
Kresha
Leidiger
Loon
Mack
McDonald
McNamara
Myhra
Newberger
Nornes
O'Driscoll
O'Neill
Peppin
Petersburg
Pugh
Quam
Runbeck
Sanders
Schomacker
Scott
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Wills
Woodard
Zellers
Zerwas
Those who voted in the negative were:
Allen
Anzelc
Atkins
Benson, J.
Bernardy
Bly
Brynaert
Carlson
Clark
Davnie
Dehn, R.
Dill
Dorholt
Erhardt
Erickson, R.
Falk
Faust
Fischer
Freiberg
Fritz
Halverson
Hansen
Hausman
Hornstein
Hortman
Huntley
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
McNamar
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Paymar
Pelowski
Persell
Poppe
Radinovich
Rosenthal
Savick
Sawatzky
Schoen
Selcer
Simon
Simonson
Slocum
Sundin
Wagenius
Ward, J.A.
Ward, J.E.
Winkler
Yarusso
Spk. Thissen
The
motion did not prevail and the amendment was not adopted.
LAY ON THE
TABLE
Murphy, E., moved that S. F. No. 778
be laid on the table.
A roll call was requested and properly
seconded.
The question was taken on the Murphy, E.,
motion and the roll was called. There
were 118 yeas and 13 nays as follows:
Those who voted in the affirmative were:
Abeler
Albright
Allen
Anzelc
Atkins
Barrett
Beard
Benson, J.
Benson, M.
Bernardy
Bly
Brynaert
Carlson
Clark
Daudt
Davnie
Dehn, R.
Dettmer
Dill
Dorholt
Drazkowski
Erhardt
Erickson, R.
Falk
Faust
Fischer
FitzSimmons
Freiberg
Fritz
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hansen
Hausman
Hertaus
Holberg
Hoppe
Hornstein
Hortman
Howe
Huntley
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kieffer
Kiel
Kresha
Laine
Leidiger
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McDonald
McNamar
McNamara
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Myhra
Nelson
Newberger
Newton
Nornes
O'Driscoll
O'Neill
Paymar
Pelowski
Peppin
Persell
Petersburg
Poppe
Pugh
Quam
Radinovich
Rosenthal
Runbeck
Sanders
Savick
Sawatzky
Schoen
Schomacker
Selcer
Simon
Simonson
Slocum
Sundin
Theis
Uglem
Urdahl
Wagenius
Ward, J.A.
Ward, J.E.
Wills
Winkler
Woodard
Yarusso
Zerwas
Spk. Thissen
Those who voted in the negative were:
Anderson, M.
Anderson, P.
Anderson, S.
Cornish
Davids
Dean, M.
Erickson, S.
Fabian
Franson
Scott
Swedzinski
Torkelson
Zellers
The
motion prevailed and S. F. No. 778 was laid on the table.
Murphy, E., moved that the House recess
subject to the call of the Chair. The
motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to
order by the Speaker.
There being no objection, the order of
business reverted to Messages from the Senate.
MESSAGES FROM
THE SENATE
The
following messages were received from the Senate:
Mr. Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned:
H. F. No. 792, A bill for an act relating to civil actions; prohibiting waivers of liability for negligent conduct; proposing coding for new law in Minnesota Statutes, chapter 604.
JoAnne M. Zoff, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned:
H. F. No. 1118, A bill for an act relating to bonds; modifying requirements for bond security; amending Minnesota Statutes 2012, section 574.01.
JoAnne M. Zoff, Secretary of the Senate
Mr. Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned:
H. F. No. 157, A bill for an act relating to commerce; regulating bullion coin dealers; requiring registration; prohibiting certain conduct; providing enforcement authority and civil and criminal penalties; proposing coding for new law as Minnesota Statutes, chapter 80G.
JoAnne M. Zoff, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
H. F. No. 630, A bill for an act relating to education; providing funding and policy for early childhood and family, prekindergarten through grade 12, and adult education, including general education, student accountability, education excellence, charter schools, special education, facilities, technology, nutrition, libraries, accounting, early childhood, self-sufficiency, lifelong learning, state agencies, and forecast adjustments; authorizing rulemaking; requiring reports; appropriating money; amending Minnesota Statutes 2012, sections 13.319, by adding a subdivision; 15.059, subdivision 5b; 120A.20, subdivision 1; 120A.41; 120B.02; 120B.021, subdivision 1; 120B.023; 120B.024; 120B.125; 120B.128; 120B.30, subdivisions 1, 1a; 120B.31, subdivision 1; 120B.35, subdivision 3; 120B.36, subdivision 1; 121A.22, subdivision 2; 121A.2205; 122A.09, subdivision 4; 122A.18, subdivision 2; 122A.23, subdivision 2; 122A.28, subdivision 1; 122A.33, subdivision 3; 122A.61, subdivision 1; 123B.41, subdivision 7; 123B.54; 123B.88, subdivision 22; 123B.92, subdivisions 1, 5; 124D.02, subdivision 1; 124D.095, subdivision 10; 124D.10; 124D.11, subdivision 5; 124D.111, subdivision 1; 124D.119; 124D.122; 124D.128, subdivision 2; 124D.42; 124D.4531, subdivision 1; 124D.52, by adding a subdivision; 124D.531, subdivision 1; 124D.59, subdivision 2; 124D.61; 124D.79, subdivision 1, by adding a subdivision; 125A.0941; 125A.0942; 125A.11, subdivision 1; 125A.27, subdivisions 8, 11, 14; 125A.28; 125A.29; 125A.30; 125A.32; 125A.33; 125A.35, subdivision 1; 125A.36; 125A.43; 125A.76, subdivisions 1, 4a, 8, by adding subdivisions; 125A.78, subdivision 2; 125A.79, subdivisions 1, 5; 126C.01, by adding a subdivision; 126C.05, subdivisions 1, 15; 126C.10, subdivisions 1, 2, 14, 24, 29, 32; 126C.15, subdivisions 1, 2; 126C.17, subdivisions 1, 5, 6; 126C.40, subdivision 6; 126C.44; 126C.48, subdivision 8; 127A.47, subdivision 7; 128D.11, subdivision 3; 134.32; 134.34; 134.351, subdivisions 3, 7; 134.353; 134.354; 134.355, subdivisions 1, 2, 3, 4, 5, 6; 134.36; 260A.02, subdivision 3; 260A.03; 260A.05, subdivision 1; 260A.07, subdivision 1; Laws 2007, chapter 146, article 4, section 12; Laws 2011, First Special Session chapter 11, article 1, section 36, subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as amended, 6, as amended, 7, as amended, 10, as amended; article 2, section 50, subdivisions 2, as amended, 4, as amended, 5, as amended, 6, as amended, 7, as amended, 9, as amended; article 3, section 11, subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as amended; article 4, section 10, subdivisions 2, as amended, 3, as amended, 4, as amended, 6, as amended; article 5, section 12, subdivisions 2, as amended, 3, as amended, 4, as amended; article 6, section 2, subdivisions 2, as amended, 3, as amended, 5, as amended; article 7, section 2, subdivisions 2, as amended, 3, as amended, 4, as amended, 8, as amended; article 8, section 2, subdivisions 2, as amended, 3, as amended; article 9, section 3, subdivision 2, as amended; proposing coding for new law in Minnesota Statutes, chapters 120B; 121A; 124D; 126C; 127A; proposing coding for new law as Minnesota Statutes, chapter 16F; repealing Minnesota Statutes 2012, sections 124D.454, subdivisions 3, 10, 11; 125A.35, subdivisions 4, 5; 125A.76, subdivisions 2, 4, 5, 7; 125A.79, subdivisions 6, 7; 126C.17, subdivision 13; Minnesota Rules, parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16; 3501.0040; 3501.0050; 3501.0060; 3501.0090; 3501.0100; 3501.0110; 3501.0120; 3501.0130; 3501.0140; 3501.0150; 3501.0160; 3501.0170; 3501.0180; 3501.0200; 3501.0210; 3501.0220; 3501.0230; 3501.0240; 3501.0250; 3501.0270; 3501.0280, subparts 1, 2; 3501.0290; 3501.0505; 3501.0510; 3501.0515; 3501.0520;
3501.0525; 3501.0530; 3501.0535; 3501.0540; 3501.0545; 3501.0550; 3501.1000; 3501.1020; 3501.1030; 3501.1040; 3501.1050; 3501.1110; 3501.1120; 3501.1130; 3501.1140; 3501.1150; 3501.1160; 3501.1170; 3501.1180; 3501.1190.
The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.
JoAnne M. Zoff, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:
H. F. No. 1444, A bill for an act relating to government finance; appropriating money for transportation, Metropolitan Council, and public safety activities and programs; providing for fund transfers, tort claims, and certain contingent appropriations; modifying various provisions related to transportation finance and policy; making technical and clarifying changes; amending Minnesota Statutes 2012, sections 161.20, subdivision 3; 161.44, by adding a subdivision; 168A.01, subdivision 6a; 171.05, subdivision 2, by adding a subdivision; 171.061, subdivision 4; 174.40, by adding a subdivision; 219.1651; 299E.01, subdivisions 2, 3; 398A.10, by adding a subdivision; Laws 2009, chapter 9, section 1; proposing coding for new law in Minnesota Statutes, chapters 161; 174; repealing Minnesota Statutes 2012, sections 161.04, subdivision 6; 174.285, subdivision 8.
The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.
JoAnne M. Zoff, Secretary of the Senate
The following Conference Committee Report
was received:
CONFERENCE COMMITTEE REPORT ON H. F. NO. 894
A bill for an act relating to elections; making policy, technical, and clarifying changes to various provisions related to election law, including provisions related to absentee voting, redistricting, ballots, registration, voting, caucuses, campaigns, the loss and restoration of voting rights, vacancies in nomination, county government structure, and election administration; providing an electronic roster pilot project and task force; requiring reports; appropriating money; amending Minnesota Statutes 2012, sections 5B.06; 13.851, subdivision 10; 103C.225, subdivision 3; 103C.305, subdivision 3; 103C.311, subdivision 2; 123A.48, subdivision 14; 201.054, subdivision 2, by adding a subdivision; 201.061, subdivision 3; 201.071, subdivision 2; 201.091, subdivision 8; 201.12, subdivision 3; 201.13, subdivision 1a; 201.14; 201.157; 201.275; 202A.14, subdivision 1; 203B.02, subdivision 1; 203B.04, subdivisions 1, 5; 203B.05, subdivision 1; 203B.06, subdivisions 1, 3; 203B.08, subdivision 3; 203B.081; 203B.121, subdivisions 1, 2, 3, 4, 5; 203B.227; 203B.28; 204B.04, by adding a subdivision; 204B.13, subdivisions 1, 2, 5, by adding subdivisions; 204B.18, subdivision 2; 204B.22, subdivision 1; 204B.28, subdivision 1; 204B.32, subdivision 1; 204B.33; 204B.35, subdivision 4; 204B.36, subdivision 1; 204B.45, subdivisions 1, 2; 204B.46; 204C.14; 204C.15, subdivision 1; 204C.19, subdivision 2; 204C.25; 204C.27; 204C.35, subdivision 1, by adding a subdivision; 204C.36, subdivision 1; 204D.08, subdivision 6; 204D.09, subdivision 2; 204D.11, subdivisions 1, 4, 5, 6; 204D.13, subdivision 3; 204D.14, subdivisions 1, 3; 204D.15, subdivision 3; 204D.16; 204D.165; 204D.19, subdivision 2, by adding a subdivision; 205.02, subdivision 2; 205.10, subdivision 3; 205.13, subdivision 1a; 205.16, subdivisions 4, 5; 205.17, subdivisions 1, 3; 205A.04, by adding a subdivision; 205A.05, subdivisions 1, 2;
205A.07, subdivisions 3, 3a, 3b; 205A.08, subdivision 1; 206.57, by adding a subdivision; 206.61, subdivision 4; 206.89, subdivision 2, by adding a subdivision; 206.895; 206.90, subdivision 6; 208.04, subdivisions 1, 2; 211B.045; 211B.37; 241.065, subdivision 2; 340A.416, subdivisions 2, 3; 340A.602; 375.20; 447.32, subdivisions 2, 3, 4; Laws 1963, chapter 276, section 2, subdivision 2, as amended; proposing coding for new law in Minnesota Statutes, chapters 2; 204B; 244; repealing Minnesota Statutes 2012, sections 2.484; 203B.04, subdivision 6; 204B.12, subdivision 2a; 204B.13, subdivisions 4, 6; 204B.22, subdivision 2; 204B.42; 204D.11, subdivisions 2, 3; 205.17, subdivisions 2, 4; 205A.08, subdivision 4.
May 17, 2013
The Honorable Paul Thissen
Speaker of the House of Representatives
The Honorable Sandra L. Pappas
President of the Senate
We, the undersigned conferees for H. F. No. 894 report that we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its amendments and that H. F. No. 894 be further amended as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
ABSENTEE VOTING
Section 1. Minnesota Statutes 2012, section 5B.06, is amended to read:
5B.06
VOTING BY PROGRAM PARTICIPANT; ABSENTEE BALLOT.
A program participant who is otherwise
eligible to vote may register with the secretary of state as an ongoing a
permanent absentee voter. Notwithstanding
section 203B.04, subdivision 5, the secretary of state is not required to send
an absentee ballot application prior to each election to a program participant
registered as a permanent absentee voter under this section. As soon as practicable before each election,
the secretary of state shall determine the precinct in which the residential
address of the program participant is located and shall request from and
receive from the county auditor or other election official the ballot for that
precinct and shall forward the absentee ballot to the program participant with
the other materials for absentee balloting as required by Minnesota law. The program participant shall complete the
ballot and return it to the secretary of state, who shall review the ballot in
the manner provided by section 203B.24. If
the ballot and ballot materials comply with the requirements of that section,
the ballot must be certified by the secretary of state as the ballot of a
program participant, and must be forwarded to the appropriate electoral
jurisdiction for tabulation along with all other ballots. The name and address of a program participant
must not be listed in the statewide voter registration system.
Sec. 2. Minnesota Statutes 2012, section 203B.02, subdivision 1, is amended to read:
Subdivision 1. Unable
to go to polling place Absentee voting; eligibility. (a) Any eligible voter who
reasonably expects to be unable to go to the polling place on election day in
the precinct where the individual maintains residence because of absence from
the precinct; illness, including isolation or quarantine under sections 144.419
to 144.4196 or United States Code, title 42, sections 264 to 272; disability;
religious discipline; observance of a religious holiday; or service as an
election judge in another precinct may vote by absentee ballot as provided
in sections 203B.04 to 203B.15.
(b) If the governor has
declared an emergency and filed the declaration with the secretary of state
under section 12.31, and the declaration states that the emergency has made it
difficult for voters to go to the polling place on election day, any voter in a
precinct covered by the declaration may vote by absentee ballot as provided in
sections 203B.04 to 203B.15.
Sec. 3. Minnesota Statutes 2012, section 203B.04, subdivision 1, is amended to read:
Subdivision 1. Application procedures. (a) Except as otherwise allowed by subdivision 2 or by section 203B.11, subdivision 4, an application for absentee ballots for any election may be submitted at any time not less than one day before the day of that election. The county auditor shall prepare absentee ballot application forms in the format provided by the secretary of state and shall furnish them to any person on request. By January 1 of each even-numbered year, the secretary of state shall make the forms to be used available to auditors through electronic means. An application submitted pursuant to this subdivision shall be in writing and shall be submitted to:
(1) the county auditor of the county where the applicant maintains residence; or
(2) the municipal clerk of the municipality, or school district if applicable, where the applicant maintains residence.
(b) An application shall be approved if it is timely received, signed and dated by the applicant, contains the applicant's name and residence and mailing addresses, date of birth, and at least one of the following:
(1) the applicant's Minnesota driver's license number;
(2) Minnesota state identification card number;
(3) the last four digits of the applicant's Social Security number; or
(4) a statement that the applicant does not have any of these numbers.
(c) To be approved, the application must
state that the applicant is eligible to vote by absentee ballot for one of the
reasons specified in section 203B.02, and must contain an oath that the information
contained on the form is accurate, that the applicant is applying on the
applicant's own behalf, and that the applicant is signing the form under
penalty of perjury.
(d) An applicant's full date of birth, Minnesota driver's license or state identification number, and the last four digits of the applicant's Social Security number must not be made available for public inspection. An application may be submitted to the county auditor or municipal clerk by an electronic facsimile device. An application mailed or returned in person to the county auditor or municipal clerk on behalf of a voter by a person other than the voter must be deposited in the mail or returned in person to the county auditor or municipal clerk within ten days after it has been dated by the voter and no later than six days before the election. The absentee ballot applications or a list of persons applying for an absentee ballot may not be made available for public inspection until the close of voting on election day.
(e) An application under this subdivision may contain an application under subdivision 5 to automatically receive an absentee ballot application.
Sec. 4. Minnesota Statutes 2012, section 203B.04, subdivision 5, is amended to read:
Subd. 5.
Permanent illness or
disability absentee voter status.
(a) An eligible voter who reasonably expects to be permanently
unable to go to the polling place on election day because of illness or
disability may apply to a county auditor or municipal clerk under this
section to automatically receive an absentee ballot application before
each
election, other than an election by mail conducted under section 204B.45, and
to have the status as a permanent absentee voter indicated on the voter's
registration record. An eligible
voter listed as an ongoing absentee voter as of July 31, 2013, pursuant to laws
in effect on that date, shall be treated as if the voter applied for status as
a permanent absentee voter pursuant to this subdivision.
(b) A voter who applies under paragraph
(a) must automatically be provided an absentee ballot application for each
eligible election. A voter's permanent
absentee status ends and automatic ballot application delivery must be
terminated on:
(1) the voter's written request;
(2) the voter's death;
(3) return of an absentee ballot as
undeliverable; or
(4) a change in the voter's status to
"challenged" or "inactive" in the statewide voter
registration system.
(b) (c) The secretary of state
shall adopt rules governing procedures under this subdivision.
Sec. 5. Minnesota Statutes 2012, section 203B.06, subdivision 1, is amended to read:
Subdivision 1. Printing
and delivery of forms. Each county
auditor and municipal clerk shall prepare and print a sufficient number of
blank application forms for absentee ballots.
The county auditor or municipal clerk shall deliver a blank application
form to any voter who requests one pursuant to section 203B.04. Blank application forms must be mailed to
eligible voters who have requested an application pursuant to section 203B.04,
subdivision 5 or 6, at least 60 days before:
(1) each regularly scheduled primary for federal, state, county, city, or school board office;
(2) each regularly scheduled general election for city or school board office for which a primary is not held; and
(3) a
special primary to fill a federal or county office vacancy or special election
to fill a federal or county office vacancy,
if a primary is not required to be held pursuant to section 204D.03,
subdivision 3, or 204D.07, subdivision 3; and
(4) any election held in conjunction with an election described in clauses (1) to (3);
or at least 45 days before any other primary or other election for which a primary is not held.
Sec. 6. Minnesota Statutes 2012, section 203B.121, subdivision 2, is amended to read:
Subd. 2. Duties of ballot board; absentee ballots. (a) The members of the ballot board shall take possession of all return envelopes delivered to them in accordance with section 203B.08. Upon receipt from the county auditor, municipal clerk, or school district clerk, two or more members of the ballot board shall examine each return envelope and shall mark it accepted or rejected in the manner provided in this subdivision. Election judges performing the duties in this section must be of different major political parties, unless they are exempt from that requirement under section 205.075, subdivision 4, or section 205A.10, subdivision 2.
(b) The members of the ballot board shall mark the return envelope "Accepted" and initial or sign the return envelope below the word "Accepted" if a majority of the members of the ballot board examining the envelope are satisfied that:
(1) the voter's name and address on the return envelope are the same as the information provided on the absentee ballot application;
(2) the voter signed the certification on the envelope;
(3) the voter's Minnesota driver's license, state identification number, or the last four digits of the voter's Social Security number are the same as the number provided on the voter's application for ballots. If the number does not match the number as submitted on the application, or if a number was not submitted on the application, the election judges must compare the signature provided by the applicant to determine whether the ballots were returned by the same person to whom they were transmitted;
(4) the voter is registered and eligible to vote in the precinct or has included a properly completed voter registration application in the return envelope;
(5) the certificate has been completed as prescribed in the directions for casting an absentee ballot; and
(6) the voter has not already voted at
that election, either in person or, if it is after the close of business on the
fourth seventh day before the election, by absentee ballot.
The return envelope from accepted ballots must be preserved and returned to the county auditor.
(c)(1) If a majority of the members of the ballot board examining a return envelope find that an absentee voter has failed to meet one of the requirements provided in paragraph (b), they shall mark the return envelope "Rejected," initial or sign it below the word "Rejected," list the reason for the rejection on the envelope, and return it to the county auditor. There is no other reason for rejecting an absentee ballot beyond those permitted by this section. Failure to place the ballot within the security envelope before placing it in the outer white envelope is not a reason to reject an absentee ballot.
(2) If an envelope has been rejected at least five days before the election, the envelope must remain sealed and the official in charge of the ballot board shall provide the voter with a replacement absentee ballot and return envelope in place of the rejected ballot.
(3) If an envelope is rejected within five days of the election, the envelope must remain sealed and the official in charge of the ballot board must attempt to contact the voter by telephone or e-mail to notify the voter that the voter's ballot has been rejected. The official must document the attempts made to contact the voter.
(d) The official in charge of the absentee ballot board must mail the voter a written notice of absentee ballot rejection between six and ten weeks following the election. If the official determines that the voter has otherwise cast a ballot in the election, no notice is required. If an absentee ballot arrives after the deadline for submission provided by this chapter, the notice must be provided between six to ten weeks after receipt of the ballot. A notice of absentee ballot rejection must contain the following information:
(1) the date on which the absentee ballot was rejected or, if the ballot was received after the required deadline for submission, the date on which the ballot was received;
(2) the reason for rejection; and
(3) the name of the appropriate election official to whom the voter may direct further questions, along with appropriate contact information.
(e) An absentee ballot return envelope marked "Rejected" may not be opened or subject to further review except in an election contest filed pursuant to chapter 209.
Sec. 7. Minnesota Statutes 2012, section 203B.121, subdivision 3, is amended to read:
Subd. 3. Record
of voting. (a) When applicable, the
county auditor or municipal clerk must immediately record that a voter's
absentee ballot has been accepted. After
the close of business on the fourth seventh day before the
election, a voter whose record indicates that an absentee ballot has been
accepted must not be permitted to cast another ballot at that election. In a state primary, general, or state special
election for federal or state office, the auditor or clerk must also record
this information in the statewide voter registration system.
(b) The roster must be marked, and a supplemental report of absentee voters who submitted a voter registration application with their ballot must be created, no later than the start of voting on election day to indicate the voters that have already cast a ballot at the election. The roster may be marked either:
(1) by the county auditor or municipal clerk before election day;
(2) by the ballot board before election day; or
(3) by the election judges at the polling place on election day.
The record of a voter whose absentee
ballot was received after the close of business on the fourth seventh
day before the election is not required to be marked on the roster or contained
in a supplemental report as required by this paragraph.
Sec. 8. Minnesota Statutes 2012, section 203B.121, subdivision 4, is amended to read:
Subd. 4. Opening
of envelopes. After the close of
business on the fourth seventh day before the election, the
ballots from return envelopes marked "Accepted" may be opened, duplicated
as needed in the manner provided in section 206.86, subdivision 5, initialed by
the members of the ballot board, and deposited in the appropriate ballot box. If more than one ballot is enclosed in the
ballot envelope, the ballots must be returned in the manner provided by section
204C.25 for return of spoiled ballots, and may not be counted.
Sec. 9. REPEALER.
Minnesota Statutes 2012, section
203B.04, subdivision 6, is repealed.
Sec. 10. EFFECTIVE
DATE; APPLICABILITY.
This article is effective January 1,
2014, and applies to voting at elections conducted on the date of the state
primary in 2014 and thereafter.
ARTICLE 2
ELECTION ADMINISTRATION
Section 1.
[2.395] THIRTY-NINTH DISTRICT.
Subdivision 1. Senate
district. Senate District 39
consists of that district as described in the order of the Minnesota Special
Redistricting Panel in Hippert v. Ritchie, No. A11-152 (February 21,
2012).
Subd. 2. House
of representatives districts. Notwithstanding
the order of the Minnesota Special Redistricting Panel in Hippert v. Ritchie, No. A11-152
(February 21, 2012), Senate District 39, as described in that order, is divided
into two house of representatives districts as follows:
(a) House of Representatives District
39A consists of the district as described in that order, with the modification
contained in file L39A-1, on file with the Geographic Information Systems
Office of the Legislative Coordinating Commission and published on its Web site
on March 9, 2012.
(b) House of Representatives District
39B consists of that district as described in that order, with the modification
contained in file L39B-1, on file with the Geographic Information Systems
Office of the Legislative Coordinating Commission and published on its Web site
on March 9, 2012.
EFFECTIVE
DATE. This section is
effective for the state primary and state general elections conducted in 2014
for terms of office beginning on the first Monday in January 2015, and for all
elections held thereafter.
Sec. 2. [2.495]
FORTY-NINTH DISTRICT.
Subdivision 1. Senate
district. Senate District 49
consists of that district as described in the order of the Minnesota Special
Redistricting Panel in Hippert v. Ritchie, No. A11-152 (February 21,
2012).
Subd. 2. House
of representatives districts. Notwithstanding
the order of the Minnesota Special Redistricting Panel in Hippert v. Ritchie, No. A11-152
(February 21, 2012), Senate District 49 is divided into two house of
representatives districts as follows:
(a) House of Representatives District
49A consists of the district as described in that order, with the modification
contained in file L49A-2, on file with the Geographic Information Systems
Office of the Legislative Coordinating Commission and published on its Web site
on March 28, 2012.
(b) House of Representatives District
49B consists of the district as described in that order, with the modification
contained in file L49B-2, on file with the Geographic Information Systems
Office of the Legislative Coordinating Commission and published on its Web site
on March 28, 2012.
EFFECTIVE
DATE. This section is
effective for the state primary and state general elections conducted in 2014
for terms of office beginning on the first Monday in January 2015, and for all
elections held thereafter.
Sec. 3. Minnesota Statutes 2012, section 103C.225, subdivision 3, is amended to read:
Subd. 3. Referendum. (a) Within 60 days after the petition
is received by the state board, it shall give due notice of the holding of a
referendum, schedule the referendum at the next general election, and cooperate
with county election officials to accomplish the election in the most expedient
manner. Upon receipt of a
petition, the state board shall provide written notice to the secretary of
state and the county auditor of each county in which the district is located no
later than 74 days before the state general election. The notice must include the date of the
election and the title and text of the question to be placed on the ballot. Prior to the referendum, the state board
shall facilitate the preparation of a plan to continue the administration of
the powers, duties, and responsibilities of the district, including the
functions of the district board.
(b) The question shall be submitted by
ballots, upon which the words "For terminating the existence of appear
on the ballot in the following form: "Shall
the .................. (name of the soil and water conservation district to be
here inserted) " and "Against terminating the existence of the
.................. (name of the soil and water conservation district to be here
inserted)" shall be printed, with a square before each proposition and a
direction to insert an X mark in the square before one or the other be
terminated?".
(c) Only eligible voters in the district may vote in the referendum.
(d) Informalities in the conduct of the referendum or matters relating to the referendum do not invalidate the referendum, or result of the referendum, if due notice has been given and the referendum has been fairly conducted.
(e) The state board shall publish the result of the referendum.
Sec. 4. Minnesota Statutes 2012, section 103C.305, subdivision 3, is amended to read:
Subd. 3. Ballots. Ballots shall be prepared by the county
auditor. The names of candidates shall
be placed on the "canary ballot" described in section 204D.11,
subdivision 3 state general election ballot. The office title printed on the ballot must
be either "Soil and Water Conservation District Supervisor" or
"Conservation District Supervisor," based upon the district from
which the supervisor is to be elected.
Sec. 5. Minnesota Statutes 2012, section 103C.311, subdivision 2, is amended to read:
Subd. 2. Supervisors elected by districts. (a) The district board, with the approval of the state board, may by resolution provide that supervisors will be elected by supervisor districts as provided in this subdivision.
(b) The supervisor districts must be
composed of precincts established by county and municipal governing bodies
under section 204B.14. The districts
must be compact, include only contiguous territory, and be substantially equal
in population. The districts must be
numbered in a regular series. The
districts must be drawn by the county board of the county containing the
largest area of the soil and water conservation district, in consultation with
the district board and with the approval of the state board. The boundaries of the districts must be
redrawn after each decennial federal census as provided in section 204B.135. A certified copy of the resolution
establishing supervisor districts must be filed by the chair of the district
board with the county auditor of the counties where the soil and water
conservation district is located, with the state board, and with the secretary
of state at least 30 days before the first date candidates may file for the
office of supervisor., and the filings must occur within 80 days of the
time when the legislature has been redistricted or at least 15 weeks before the
state primary election in a year ending in two, whichever comes first.
(c) Each supervisor district is entitled to elect one supervisor. A supervisor must be a resident of the district from which elected.
(d) The district board shall provide staggered terms for supervisors elected by district. After each redistricting, there shall be a new election of supervisors in all the districts at the next general election, except that if the change made in the boundaries of a district is less than five percent of the average population of all the districts, the supervisor in office at the time of the redistricting shall serve for the full term for which elected. The district board shall determine by lot the seats to be filled for a two-year term, a four-year term, and a six-year term.
Sec. 6. Minnesota Statutes 2012, section 123A.48, subdivision 14, is amended to read:
Subd. 14. Election. The board shall determine the date of the
election, the number of boundaries of voting precincts, and the location of the
polling places where voting shall be conducted, and the hours the polls will be
open. The board shall also provide
official ballots which must be used exclusively and shall be in the following
form: "Shall the (name of school
district) and the (name of school district) be consolidated as proposed? Yes .... No ...."
For consolidation ....
Against consolidation ....
The board must appoint election judges who shall act as clerks of election. The ballots and results must be certified to the board who shall canvass and tabulate the total vote cast for and against the proposal.
Sec. 7. Minnesota Statutes 2012, section 201.061, subdivision 3, is amended to read:
Subd. 3. Election day registration. (a) An individual who is eligible to vote may register on election day by appearing in person at the polling place for the precinct in which the individual maintains residence, by completing a registration application, making an oath in the form prescribed by the secretary of state and providing proof of residence. An individual may prove residence for purposes of registering by:
(1) presenting a driver's license or Minnesota identification card issued pursuant to section 171.07;
(2) presenting any document approved by the secretary of state as proper identification;
(3) presenting one of the following:
(i) a current valid student identification card from a postsecondary educational institution in Minnesota, if a list of students from that institution has been prepared under section 135A.17 and certified to the county auditor in the manner provided in rules of the secretary of state; or
(ii) a current student fee statement that contains the student's valid address in the precinct together with a picture identification card; or
(4) having a voter who is registered to vote
in the precinct, or who is an employee employed by and working in a residential
facility in the precinct and vouching for a resident in the facility, sign an
oath in the presence of the election judge vouching that the voter or employee
personally knows that the individual is a resident of the precinct. A voter who has been vouched for on election
day may not sign a proof of residence oath vouching for any other individual on
that election day. A voter who is
registered to vote in the precinct may sign up to 15 eight proof-of-residence
oaths on any election day. This
limitation does not apply to an employee of a residential facility described in
this clause. The secretary of state
shall provide a form for election judges to use in recording the number of
individuals for whom a voter signs proof-of-residence oaths on election day. The form must include space for the maximum
number of individuals for whom a voter may sign proof-of-residence oaths. For each proof-of-residence oath, the form
must include a statement that the voter is registered to vote in the precinct,
personally knows that the individual is a resident of the precinct, and is
making the statement on oath. The form
must include a space for the voter's printed name, signature, telephone number,
and address.
The oath required by this subdivision and Minnesota Rules, part 8200.9939, must be attached to the voter registration application.
(b) The operator of a residential facility shall prepare a list of the names of its employees currently working in the residential facility and the address of the residential facility. The operator shall certify the list and provide it to the appropriate county auditor no less than 20 days before each election for use in election day registration.
(c) "Residential facility" means transitional housing as defined in section 256E.33, subdivision 1; a supervised living facility licensed by the commissioner of health under section 144.50, subdivision 6; a nursing home as defined in section 144A.01, subdivision 5; a residence registered with the commissioner of health as a housing with services establishment as defined in section 144D.01, subdivision 4; a veterans home operated by the board of directors of the Minnesota Veterans Homes under chapter 198; a residence licensed by the commissioner of human services to provide a residential program as defined in section 245A.02, subdivision 14; a residential facility for persons with a developmental disability licensed by the commissioner of human services under section 252.28; group residential housing as defined in section 256I.03, subdivision 3; a shelter for battered women as defined in section 611A.37, subdivision 4; or a supervised publicly or privately operated shelter or dwelling designed to provide temporary living accommodations for the homeless.
(d) For tribal band members, an individual may prove residence for purposes of registering by:
(1) presenting an identification card issued by the tribal government of a tribe recognized by the Bureau of Indian Affairs, United States Department of the Interior, that contains the name, address, signature, and picture of the individual; or
(2) presenting an identification card issued by the tribal government of a tribe recognized by the Bureau of Indian Affairs, United States Department of the Interior, that contains the name, signature, and picture of the individual and also presenting one of the documents listed in Minnesota Rules, part 8200.5100, subpart 2, item B.
(e) A county, school district, or municipality may require that an election judge responsible for election day registration initial each completed registration application.
Sec. 8. Minnesota Statutes 2012, section 201.071, subdivision 2, is amended to read:
Subd. 2. Instructions. A registration application shall be accompanied
by instructions specifying the manner and method of registration, the
qualifications for voting, the penalties for false registration, and the
availability of registration and voting assistance for elderly and disabled
individuals and residents of health care facilities and hospitals. The instructions must indicate that if the
voter does not have a valid Minnesota driver's license or identification card,
the last four digits of the voter's Social Security number must be provided,
unless the voter does not have a Social Security number. If, prior to election day, a person requests
the instructions in Braille, on cassette tape audio format, or in
a version printed in 16-point bold type with 24-point leading, the county
auditor shall provide them in the form requested. The secretary of state shall prepare Braille
and cassette audio copies and make them available.
Sec. 9. Minnesota Statutes 2012, section 201.091, subdivision 8, is amended to read:
Subd. 8. Registration
places. Each county auditor shall
designate a number of public buildings in those political subdivisions of the
county where preregistration of voters is allowed as provided in section
201.061, subdivision 1, where eligible voters may register to vote. At least one public building must be
designated for each 30,000 residents of the county. At least one telecommunications device for
the deaf must be available for voter registration information in each county
seat and in every city of the first, second, and third class.
An adequate supply of registration applications and instructions must be maintained at each designated location, and a designated individual must be available there to accept registration applications and transmit them to the county auditor.
A person who, because of disability, needs assistance in order to determine eligibility or to register must be assisted by a designated individual. Assistance includes but is not limited to reading the registration form and instructions and filling out the registration form as directed by the eligible voter.
Sec. 10. Minnesota Statutes 2012, section 201.12, subdivision 3, is amended to read:
Subd. 3. Moved out of state. If any nonforwardable mailing from an election official is returned as undeliverable but with a permanent forwarding address outside this state, the county auditor shall promptly mail to the voter at the voter's new address a notice advising the voter that the voter's status in the statewide voter registration system will be changed to "inactive" unless the voter notifies the county auditor within 21 days that the voter is retaining the former address as the voter's address of residence. If the voter's record is challenged due to a felony conviction, lack of United States citizenship, legal incompetence, or court-ordered revocation of voting rights of persons under guardianship, the county auditor must not mail this notice. If the notice is not received by the deadline, the county auditor shall change the voter's status to "inactive" in the statewide voter registration system.
Sec. 11. Minnesota Statutes 2012, section 201.13, subdivision 1a, is amended to read:
Subd. 1a. Social
Security Administration; other reports of deceased residents. The secretary of state shall may
determine if any of the persons listed on the Social Security Death Index or
reported as deceased by the vital records department of another state are
registered to vote and prepare a list of those registrants for each county
auditor. The county auditor shall change
the status of those registrants to "deceased" in the statewide voter
registration system.
Sec. 12. Minnesota Statutes 2012, section 201.14, is amended to read:
201.14
COURT ADMINISTRATOR OF DISTRICT COURT; REPORT CHANGES OF NAMES.
The state court administrator shall
regularly report by electronic means to the secretary of state the name,
address, and, if available, driver's license or state identification card
number of each individual, 18 years of age or over, whose name was changed
since the last report, by marriage, divorce, or any order or decree of the
court. The secretary of state shall
determine if any of the persons in the report are registered to vote under
their previous name and shall prepare a list of those registrants for each county
auditor. Upon receipt of the list, the
county auditor shall make the change in the voter's record and mail to the
voter the notice of registration required by section 201.121, subdivision 2. A notice must not be mailed if the voter's
record is challenged due to a felony conviction, lack of United States
citizenship, legal incompetence, or court-ordered revocation of voting rights
of persons under guardianship.
Sec. 13. Minnesota Statutes 2012, section 202A.14, subdivision 1, is amended to read:
Subdivision 1. Time and manner of holding; postponement. (a) In every state general election year, beginning at 7:00 p.m. on the date established pursuant to paragraph (b), there shall be held for every election precinct a party caucus in the manner provided in sections 202A.14 to 202A.19.
(b)(1) The chairs of the two largest major political parties shall jointly submit to the secretary of state, no later than March 1 of each odd-numbered year, the single date on which the two parties have agreed to conduct their precinct caucuses in the next even-numbered year.
(2) On March 1 of each odd-numbered year
Within two business days after the parties have agreed on a single date on
which to conduct their precinct caucuses, the secretary of state shall
publicly announce the official state precinct caucus date for the following
general election year.
(3) If the chairs of the two largest major political parties do not jointly submit a single date for conducting their precinct caucuses as provided in this paragraph, then for purposes of the next general election year, the first Tuesday in February shall be considered the day of a major political party precinct caucus and sections 202A.19 and 202A.192 shall only apply on that date.
(4) For purposes of this paragraph, the two largest major political parties shall be the parties whose candidates for governor received the greatest and second greatest number of votes at the most recent gubernatorial election.
(c) In the event of severe weather a major political party may request the secretary of state to postpone caucuses. If a major political party makes a request, or upon the secretary of state's own initiative, after consultation with all major political parties and on the advice of the federal Weather Bureau and the Department of Transportation, the secretary of state may declare precinct caucuses to be postponed for a week in counties where weather makes travel especially dangerous. The secretary of state shall submit a notice of the postponement to news media covering the affected counties by 6:00 p.m. on the scheduled day of the caucus. A postponed caucus may also be postponed pursuant to this subdivision.
Sec. 14. Minnesota Statutes 2012, section 203B.05, subdivision 1, is amended to read:
Subdivision 1. Generally. The full-time clerk of any city or town shall administer the provisions of sections 203B.04 to 203B.15 if:
(1) the county auditor of that county has designated the clerk to administer them; or
(2) the clerk has given the county auditor of that county notice of intention to administer them.
The designation or notice must specify
whether the clerk will be responsible for the administration of a ballot board
as provided in section 203B.121.
A
clerk of a city that is located in more than one county may only administer the
provisions of sections 203B.04 to 203B.15 if the clerk has been designated by
each of the county auditors or has provided notice to each of the county
auditors that the city will administer absentee voting. A clerk
may only administer the provisions of sections 203B.04 to 203B.15 if the clerk
has technical capacity to access the statewide voter registration system in the
secure manner prescribed by the secretary of state. The secretary of state must identify
hardware, software, security, or other technical prerequisites necessary to
ensure the security, access controls, and performance of the statewide voter
registration system. A clerk must
receive training approved by the secretary of state on the use of the statewide
voter registration system before administering this section. A clerk may not use the statewide voter
registration system until the clerk has received the required training. The county auditor must notify the
secretary of state of any municipal clerk who will be administering the
provisions of this section and the duties that the clerk will administer.
Sec. 15. Minnesota Statutes 2012, section 203B.08, subdivision 3, is amended to read:
Subd. 3.
Procedures on receipt of ballots. When absentee ballots are returned to a
county auditor or municipal clerk, that official shall stamp or initial and
date the return envelope and place it in a secure location with other return
envelopes received by that office. Within
five days after receipt, the county auditor or municipal clerk shall deliver to
the ballot board all ballots received, except that during the 14 days
immediately preceding an election, the county auditor or municipal clerk shall
deliver all ballots received to the ballot board within three days. Ballots received on election day either
(1) after 3:00 p.m., if delivered by an agent; or (2) after the last mail
delivery, if delivered by another method, shall be marked as received late by
the county auditor or municipal clerk, and must not be delivered to the ballot
board.
Sec. 16. Minnesota Statutes 2012, section 203B.081, is amended to read:
203B.081
LOCATIONS FOR ABSENTEE VOTING IN PERSON.
An eligible voter may vote by absentee ballot
in the office of the county auditor and at any other polling place designated
by the county auditor during the 46 days before: the election, except as provided in
this section.
(1) a regularly scheduled election for
federal, state, county, city, or school board office;
(2) a special election for a federal or
county office; and
(3) an election held in conjunction with
an election described in clauses (1) and (2),
and Voters casting absentee ballots
in person for a town election held in March may do so during the 30 days
before any other the election.
The county auditor shall make such designations at least 14 weeks before
the election. At least one voting booth
in each polling place must be made available by the county auditor for this
purpose. The county auditor must also
make available at least one electronic ballot marker in each polling place that
has implemented a voting system that is accessible for individuals with
disabilities pursuant to section 206.57, subdivision 5.
Sec. 17. Minnesota Statutes 2012, section 203B.121, subdivision 1, is amended to read:
Subdivision 1. Establishment;
applicable laws. (a) The governing
body of each county, municipality, and school district with responsibility to
accept and reject absentee ballots must, by ordinance or resolution, establish
a ballot board. The board must consist
of a sufficient number of election judges trained in the handling of absentee
ballots and appointed as provided in sections 204B.19 to 204B.22. The board may include staff trained as
election judges deputy county auditors or deputy city clerks who have
received training in the processing and counting of absentee ballots.
(b) Each jurisdiction must pay a reasonable compensation to each member of that jurisdiction's ballot board for services rendered during an election.
(c)
Except as otherwise provided by this section, all provisions of the Minnesota
Election Law apply to a ballot board.
Sec. 18. Minnesota Statutes 2012, section 203B.121, subdivision 5, is amended to read:
Subd. 5. Storage and counting of absentee ballots. (a) On a day on which absentee ballots are inserted into a ballot box, two members of the ballot board must:
(1) remove the ballots from the ballot box at the end of the day;
(2) without inspecting the ballots, ensure that the number of ballots removed from the ballot box is equal to the number of voters whose absentee ballots were accepted that day; and
(3) seal and secure all voted and unvoted ballots present in that location at the end of the day.
(b) After the polls have closed on
election day, two members of the ballot board must count the ballots,
tabulating the vote in a manner that indicates each vote of the voter and the
total votes cast for each candidate or question. In state primary and state general elections,
the results must indicate the total votes cast for each candidate or question
in each precinct and report the vote totals tabulated for each precinct. The count shall be public. No vote totals from ballots may be made
public before the close of voting on election day must be recorded on a
summary statement in substantially the same format as provided in section
204C.26. The ballot board shall submit
at least one completed summary statement to the county auditor or municipal
clerk. The county auditor or municipal
clerk may require the ballot board to submit a sufficient number of completed
summary statements to comply with the provisions of section 204C.27, or the
county auditor or municipal clerk may certify reports containing the details of
the ballot board summary statement to the recipients of the summary statements
designated in section 204C.27.
In state primary and state general elections, these vote totals shall be added to the vote totals on the summary statements of the returns for the appropriate precinct. In other elections, these vote totals may be added to the vote totals on the summary statement of returns for the appropriate precinct or may be reported as a separate total.
The
count shall be public. No vote totals
from ballots may be made public before the close of voting on election day.
(c) In addition to the requirements of paragraphs (a) and (b), if the task has not been completed previously, the members of the ballot board must verify as soon as possible, but no later than 24 hours after the end of the hours for voting, that voters whose absentee ballots arrived after the rosters were marked or supplemental reports were generated and whose ballots were accepted did not vote in person on election day. An absentee ballot submitted by a voter who has voted in person on election day must be rejected. All other accepted absentee ballots must be opened, duplicated if necessary, and counted by members of the ballot board. The vote totals from these ballots must be incorporated into the totals with the other absentee ballots and handled according to paragraph (b).
Sec. 19. Minnesota Statutes 2012, section 203B.227, is amended to read:
203B.227
WRITE-IN ABSENTEE BALLOT.
(a) A voter described in section 203B.16,
subdivision 1, may use a state write-in absentee ballot or the federal
write-in absentee ballot to vote in any federal, state, or local election. In a state or local election, a vote for a
political party without specifying the name of a candidate must not be counted.
(b) If a voter submits a Federal Write-in Absentee Ballot for which a Federal Post Card Application was not received, the Federal Write-in Absentee Ballot serves as a voter registration, for voters who are eligible to register, in lieu of the voter's Federal Post Card Application. If the voter has not already voted and the accompanying certificate is properly completed, the absentee ballot board must accept the Federal Write-in Absentee Ballot.
Sec. 20. Minnesota Statutes 2012, section 203B.28, is amended to read:
203B.28
POSTELECTION REPORT TO LEGISLATURE.
By March 1, 2011, and by January 15
of every odd-numbered year thereafter, the secretary of state shall
provide to the chair and ranking minority members of the legislative committees
with jurisdiction over elections a statistical report related to absentee
voting in the most recent general election cycle. The statistics must be organized by county and
precinct, and include:
(1) the number of absentee ballots transmitted to voters;
(2) the number of absentee ballots returned by voters;
(3) the number of absentee ballots that were rejected, categorized by the reason for rejection;
(4) the number of absentee ballots submitted pursuant to sections 203B.16 to 203B.27, along with the number of returned ballots that were accepted, rejected, and the reason for any rejections; and
(5) the number of absentee ballots that were not counted because the ballot return envelope was received after the deadlines provided in this chapter.
Sec. 21. Minnesota Statutes 2012, section 204B.04, is amended by adding a subdivision to read:
Subd. 4. Prohibition
on multiple candidacy. A
candidate who files an affidavit of candidacy for an office to be elected at
the general election may not subsequently file another affidavit of candidacy
for any other office to be elected on the date of that general election, unless
the candidate withdraws the initial affidavit pursuant to section 204B.12. The provisions in section 645.21 do not apply
to this subdivision.
Sec. 22. Minnesota Statutes 2012, section 204B.18, subdivision 2, is amended to read:
Subd. 2. Ballot
boxes. Each polling place shall
be provided with one ballot box for each kind of ballot to be cast at the
election. The boxes shall be
substantially the same color as the ballots to be deposited in them. Each box shall be of sufficient size and
shall have a sufficient opening to receive and contain all the ballots likely
to be deposited in it. When buff or
goldenrod ballot boxes are required, a separate box must be provided for each
school district for which ballots are to be cast at that polling place. The number and name of the school district
must appear conspicuously on the top of each buff or goldenrod ballot box.
Sec. 23. Minnesota Statutes 2012, section 204B.22, subdivision 1, is amended to read:
Subdivision 1. Minimum
number required. (a) A minimum of
four election judges shall be appointed for each precinct, except as
provided by subdivision 2 in the state general election, provided that a
minimum of three election judges shall be appointed for each precinct with
fewer than 500 registered voters as of 14 weeks before the state primary. In all other elections, a minimum of three
election judges shall be appointed for each precinct. In a combined polling place under section
204B.14, subdivision 2, at least one judge must be appointed from each
municipality in the combined polling place, provided that not less than three
judges shall be appointed for each combined polling place. The appointing authorities may appoint
election judges for any precinct in addition to the number required by this
subdivision including additional election judges to count ballots after voting
has ended.
(b) An
election judge may serve for all or part of election day, at the discretion of
the appointing authority, as long as the minimum number of judges required is
always present. The head election judge
designated under section 204B.20 must serve for all of election day and be
present in the polling place unless another election judge has been designated
by the head election judge to perform the functions of the head election judge
during any absence.
Sec. 24. Minnesota Statutes 2012, section 204B.28, subdivision 1, is amended to read:
Subdivision 1. Meeting with election officials. At least 12 weeks before each regularly scheduled town general election conducted in March, and at least 18 weeks before all other general elections, each county auditor shall conduct a meeting or otherwise communicate with local election officials to review the procedures for the election. The county auditor may require the head election judges in the county to attend this meeting.
Sec. 25. Minnesota Statutes 2012, section 204B.32, subdivision 1, is amended to read:
Subdivision
1. Payment. (a) The secretary of state shall pay the
compensation for presidential electors, the cost of printing the pink paper
ballots, and all necessary expenses incurred by the secretary of state in
connection with elections.
(b) The counties shall pay the
compensation prescribed in section 204B.31, clauses (b) and (c), the cost of
printing the canary ballots, the white ballots, the pink state
general election ballots when machines are used, the state partisan primary
ballots, and the state and county nonpartisan primary ballots, all necessary
expenses incurred by county auditors in connection with elections, and the
expenses of special county elections.
(c)
Subject to subdivision 2, the municipalities shall pay the compensation
prescribed for election judges and sergeants at arms, the cost of printing the
municipal ballots, providing ballot boxes, providing and equipping polling
places and all necessary expenses of the municipal clerks in connection with
elections, except special county elections.
(d) The school districts shall pay the compensation prescribed for election judges and sergeants-at-arms, the cost of printing the school district ballots, providing ballot boxes, providing and equipping polling places and all necessary expenses of the school district clerks in connection with school district elections not held in conjunction with state elections. When school district elections are held in conjunction with state elections, the school district shall pay the costs of printing the school district ballots, providing ballot boxes and all necessary expenses of the school district clerk.
All disbursements under this section shall be presented, audited, and paid as in the case of other public expenses.
Sec. 26. Minnesota Statutes 2012, section 204B.33, is amended to read:
204B.33 NOTICE OF FILING.
(a) At least 15 16 weeks
before the state primary, the secretary of state shall notify each county
auditor of the offices to be voted for in that county at the next state general
election for which candidates file with the secretary of state. The notice shall include the time and place
of filing for those offices. Within ten
days after notification by the secretary of state, each county auditor shall
notify each municipal clerk in the county of all the offices to be voted for in
the county at that election and the time and place for filing for those offices. The county auditors and municipal clerks
shall promptly post a copy of that notice in their offices.
(b) At least two weeks one week
before the first day to file an affidavit of candidacy, the county auditor
shall publish a notice stating the first and last dates on which affidavits of
candidacy may be filed in the county auditor's office and the closing time for
filing on the last day for filing. The
county auditor shall post a similar notice at least ten days before the first
day to file affidavits of candidacy.
Sec. 27. Minnesota Statutes 2012, section 204B.35, subdivision 4, is amended to read:
Subd. 4. Absentee
ballots; preparation; delivery. At
least 46 days before a regularly scheduled an election for
federal, state, county, city, or school board office or a special election for
federal office, and at least 30 days before any other election, ballots
necessary to fill applications of absentee voters shall be prepared and
delivered to the officials who administer the provisions of chapter 203B,
except as provided in this subdivision. Ballots
necessary to fill applications of absentee voters for a town general election
held in March shall be prepared and delivered to the town clerk at least 30
days before the election.
This section applies to school district elections held on the same day as a statewide election or an election for a county or municipality located partially or wholly within the school district.
Sec. 28. Minnesota Statutes 2012, section 204B.36, subdivision 1, is amended to read:
Subdivision 1. Type. All ballots shall be printed with black
ink on paper of sufficient thickness to prevent the printing from being
discernible from the back. All
ballots of the same color shall be substantially uniform in style of printing,
size, thickness and shade of color. When
the ballots of a particular color vary in shade, those used in any one precinct
shall be of the same shade. All
ballots shall be printed in easily readable type with suitable lines dividing
candidates, offices, instructions and other matter printed on ballots. The name of each candidate shall be printed
in capital letters. The same type shall
be used for the names of all candidates on the same ballot.
Sec. 29. Minnesota Statutes 2012, section 204B.45, subdivision 1, is amended to read:
Subdivision 1. Authorization. A municipality town of any size
not located in a metropolitan county as defined by section 473.121, or a city
having fewer than 400 registered voters on June 1 of an election year and not
located in a metropolitan county as defined by section 473.121, may
provide balloting by mail at any municipal, county, or state election with no
polling place other than the office of the auditor or clerk or other locations
designated by the auditor or clerk. The
governing body may apply to the county auditor for permission to conduct
balloting by mail. The county board may
provide for balloting by mail in unorganized territory. The governing body of any municipality may
designate for mail balloting any precinct having fewer than 50 100
registered voters, subject to the approval of the county auditor.
Voted ballots may be returned in person to any location designated by the county auditor or municipal clerk.
Sec. 30. Minnesota Statutes 2012, section 204B.45, subdivision 2, is amended to read:
Subd. 2. Procedure. Notice of the election and the special
mail procedure must be given at least six ten weeks prior to the
election. Not more than 46 days nor
later than 14 days before a regularly scheduled election for federal, state,
county, city, or school board office or a special election for federal office
and not more than 30 days nor later than 14 days before any other election, the
auditor shall mail ballots by nonforwardable mail to all voters registered in
the town or unorganized territory. No
later than 14 days before the election, the auditor must make a subsequent
mailing of ballots to those voters who register to vote after the initial
mailing but before the 20th day before the election. Eligible voters not registered at the time
the ballots are mailed may apply for ballots as provided in chapter 203B. Ballot return envelopes, with return postage
provided, must be preaddressed to the auditor or clerk and the voter may return
the ballot by mail or in person to the office of the auditor or clerk. The auditor or clerk must appoint a ballot
board to examine the mail and absentee ballot return envelopes and mark them
"accepted" or "rejected" within three days of receipt if
there are 14 or fewer days before election day, or within five days of receipt
if there are more than 14 days before election day. The board may consist of staff trained as
election judges deputy county auditors or deputy municipal clerks who
have received training in the processing and counting of mail ballots, who need
not be affiliated with a major political party. Election judges performing the duties in this
section must be of different major political parties, unless they are exempt
from that requirement under section 205.075, subdivision 4, or section 205A.10. If an envelope has been rejected at least
five days before the election, the ballots in the envelope must remain sealed
and the auditor or clerk shall provide the voter with a replacement ballot and
return envelope in place of the spoiled ballot.
If the ballot is rejected within five days of the election, the envelope
must remain sealed and the official in charge of the ballot board must attempt
to contact the voter by telephone or e-mail to notify the voter that the
voter's ballot has been rejected. The
official must document the attempts made to contact the voter.
If the ballot is accepted, the county auditor or municipal clerk must mark the roster to indicate that the voter has already cast a ballot in that election. After the close of business on the fourth day before the election, the ballots from return envelopes marked "Accepted" may be opened, duplicated as needed in the manner provided by section 206.86, subdivision 5, initialed by the members of the ballot board, and deposited in the ballot box.
In all
other respects, the provisions of the Minnesota Election Law governing deposit
and counting of ballots apply.
The mail and absentee ballots for a precinct must be counted together and reported as one vote total. No vote totals from mail or absentee ballots may be made public before the close of voting on election day.
The costs of the mailing shall be paid by the election jurisdiction in which the voter resides. Any ballot received by 8:00 p.m. on the day of the election must be counted.
Sec. 31. Minnesota Statutes 2012, section 204B.46, is amended to read:
204B.46
MAIL ELECTIONS; QUESTIONS.
A county, municipality, or school district
submitting questions to the voters at a special election may conduct an
election by mail with no polling place other than the office of the auditor or
clerk. No offices may be voted on at a
mail election. Notice of the election
must be given to the county auditor at least 53 74 days prior to
the election. This notice shall also
fulfill the requirements of Minnesota Rules, part 8210.3000. The special mail ballot procedures must be
posted at least six weeks prior to the election. Not more than 30 46 nor later
than 14 days prior to the election, the auditor or clerk shall mail ballots by
nonforwardable mail to all voters registered in the county, municipality, or
school district. No later than 14 days
before the election, the auditor or clerk must make a subsequent mailing of
ballots to those voters who register to vote after the initial mailing but
before the 20th day before the election.
Eligible voters not registered at the time the ballots are mailed may
apply for ballots pursuant to chapter 203B.
The auditor or clerk must appoint a ballot board to examine the mail and
absentee ballot return
envelopes and mark them
"Accepted" or "Rejected" within three days of receipt if
there are 14 or fewer days before election day, or within five days of receipt
if there are more than 14 days before election day. The board may consist of staff trained as
election judges deputy county auditors, deputy municipal clerks, or
deputy school district clerks who have received training in the processing and
counting of mail ballots, who need not be affiliated with a major political
party. Election judges performing
the duties in this section must be of different major political parties, unless
they are exempt from that requirement under section 205.075, subdivision 4, or
section 205A.10. If an envelope has been
rejected at least five days before the election, the ballots in the envelope
must remain sealed and the auditor or clerk must provide the voter with a
replacement ballot and return envelope in place of the spoiled ballot. If the ballot is rejected within five days of
the election, the envelope must remain sealed and the official in charge of the
ballot board must attempt to contact the voter by telephone or e-mail to notify
the voter that the voter's ballot has been rejected. The official must document the attempts made
to contact the voter.
If the ballot is accepted, the county auditor or municipal clerk must mark the roster to indicate that the voter has already cast a ballot in that election. After the close of business on the fourth day before the election, the ballots from return envelopes marked "Accepted" may be opened, duplicated as needed in the manner provided by section 206.86, subdivision 5, initialed by the ballot board, and deposited in the appropriate ballot box.
In all
other respects, the provisions of the Minnesota Election Law governing deposit
and counting of ballots apply.
The mail and absentee ballots for a precinct must be counted together and reported as one vote total. No vote totals from ballots may be made public before the close of voting on election day.
Sec. 32. Minnesota Statutes 2012, section 204C.14, is amended to read:
204C.14
UNLAWFUL VOTING; PENALTY.
No individual shall intentionally:
(a) misrepresent the individual's identity in applying for a ballot, depositing a ballot in a ballot box or attempting to vote by means of a voting machine or electronic voting system;
(b) vote more than once at the same election;
(c) put a ballot in a ballot box for any illegal purpose;
(d) give more than one ballot of the same
kind and color to an election judge to be placed in a ballot box;
(e) aid, abet, counsel or procure another to go into any precinct for the purpose of voting in that precinct, knowing that the other individual is not eligible to vote in that precinct; or
(f) aid, abet, counsel or procure another to do any act in violation of this section.
A violation of this section is a felony.
Sec. 33. Minnesota Statutes 2012, section 204C.15, subdivision 1, is amended to read:
Subdivision 1. Physical
assistance in marking ballots. A
voter who claims a need for assistance because of inability to read English or
physical inability to mark a ballot may obtain the aid of two election judges
who are members of different major political parties. The election judges shall mark the ballots as
directed by the voter and in as secret a manner as circumstances permit. If the voter is deaf or cannot speak
English or understand it when it is spoken, the election judges may select two
individuals who are members of different major political parties to
provide assistance. The individuals shall assist the voter in marking the ballots. A voter in need of assistance may alternatively obtain the assistance of any individual the voter chooses. Only the following persons may not provide assistance to a voter: the voter's employer, an agent of the voter's employer, an officer or agent of the voter's union, or a candidate for election. The person who assists the voter shall, unaccompanied by an election judge, retire with that voter to a booth and mark the ballot as directed by the voter. No person who assists another voter as provided in the preceding sentence shall mark the ballots of more than three voters at one election. Before the ballots are deposited, the voter may show them privately to an election judge to ascertain that they are marked as the voter directed. An election judge or other individual assisting a voter shall not in any manner request, persuade, induce, or attempt to persuade or induce the voter to vote for any particular political party or candidate. The election judges or other individuals who assist the voter shall not reveal to anyone the name of any candidate for whom the voter has voted or anything that took place while assisting the voter.
Sec. 34. Minnesota Statutes 2012, section 204C.19, subdivision 2, is amended to read:
Subd. 2. Ballots;
order of counting. Except as
otherwise provided in this subdivision, the ballot boxes shall be opened, the
votes counted, and the total declared one box at a time in the following
order: the white box, the pink box, the
canary box, the light green box, the blue box, the buff box, the goldenrod box,
the gray box, and then the other kinds of ballots voted at the election. If enough election judges are available to
provide counting teams of four or more election judges for each box, more than
one box may be opened and counted at the same time. The election judges on each counting team
shall be evenly divided between the major political parties. The numbers entered on the summary sheet
shall not be considered final until the ballots in all the boxes have been
counted and corrections have been made if ballots have been deposited in the
wrong boxes.
Sec. 35. Minnesota Statutes 2012, section 204C.25, is amended to read:
204C.25
DISPOSITION OF BALLOTS.
After the count and the summary statements
have been completed, in the presence of all the election judges, the counted,
defective, and blank ballots shall be placed in envelopes marked or printed
to distinguish the color of the ballots contained, and the envelopes shall
be sealed. The election judges shall
sign each envelope over the sealed part so that the envelope cannot be opened
without disturbing the continuity of the signatures. The number and kind of ballots in each
envelope, the name of the town or city, and the name of the precinct shall be
plainly written upon the envelopes. The
number and name of the district must be plainly written on envelopes containing
school district ballots. The spoiled
ballots shall be placed in separate envelopes and returned with the unused
ballots to the county auditor or municipal or school district clerk from whom
they were received.
Sec. 36. Minnesota Statutes 2012, section 204C.27, is amended to read:
204C.27
DELIVERY OF RETURNS TO COUNTY AUDITORS.
One or more of the election judges in each
precinct shall deliver two sets of summary statements; all spoiled white,
pink, canary, and gray ballots; and the envelopes containing the white,
pink, canary, and gray ballots either directly to the municipal clerk for
transmittal to the county auditor's office or directly to the county auditor's office
as soon as possible after the vote counting is completed but no later than 24
hours after the end of the hours for voting.
One or more election judges shall deliver the remaining set of summary
statements and returns, all unused and spoiled municipal and school district
ballots, the envelopes containing municipal and school district ballots, and
all other things furnished by the municipal or school district clerk, to the
municipal or school district clerk's office within 24 hours after the end of
the hours for voting. The municipal or
school district clerk shall return all polling place rosters and completed
voter registration cards to the county auditor within 48 hours after the end of
the hours for voting.
Sec. 37. Minnesota Statutes 2012, section 204C.35, subdivision 1, is amended to read:
Subdivision 1. Automatic
Publicly funded recounts. (a)
In a state primary when the difference between the votes cast for the
candidates for nomination to:
(1) a state legislative office is less
than one-half of one percent of the total number of votes counted for that
nomination or is ten votes or less and the total number of votes cast for the
nomination is 400 votes or less; or
(2) a statewide federal office,
state constitutional office, statewide judicial office, congressional office, state
legislative office, or district judicial office:
(1) is less than one-half one-quarter
of one percent of the total number of votes counted for that nomination;
or
(2) is ten votes or less and the
total number of votes cast for the nomination is 400 votes or less;
and the difference determines the nomination, the canvassing board with responsibility for declaring the results for that office shall manually recount the vote upon receiving a written request from the candidate whose nomination is in question.
Immediately following the meeting of
the board that has responsibility for canvassing the results of the nomination,
the filing officer must notify the candidate that the candidate has the option
to request a recount of the votes at no cost to the candidate. This written request must be received by the
filing officer no later than 48 hours after the canvass of the primary for
which the recount is being sought.
(b) In a state general election when the
difference between the votes of a candidate who would otherwise be declared
elected to:
(1) a state legislative office is less
than one-half of one percent of the total number of votes counted for that
office or is ten votes or less and the total number of votes cast for the
office is 400 votes or less; or
(2) a statewide federal office,
state constitutional office, statewide judicial office, congressional office, state
legislative office, or district judicial office and the votes of any other
candidate for that office:
(1) is less than one-half one-quarter
of one percent of the total number of votes counted for that office; or
(2) is ten votes or less if the total
number of votes cast for the office is 400 votes or less,
the canvassing board shall manually recount the votes upon receiving a written request from the candidate whose election is in question.
Immediately following the meeting of
the board that has responsibility for canvassing the results of the general
election, the filing officer must notify the candidate that the candidate has
the option to request a recount of the votes at no cost to the candidate. This written request must be received by the
filing officer no later than 48 hours after the canvass of the election for
which the recount is being sought.
(c) A recount must not delay any other part of the canvass. The results of the recount must be certified by the canvassing board as soon as possible.
(d) Time for notice of a contest for an office which is recounted pursuant to this section shall begin to run upon certification of the results of the recount by the canvassing board.
(e)
A losing candidate may waive a recount required pursuant to this section by
filing a written notice of waiver with the canvassing board.
Sec. 38. Minnesota Statutes 2012, section 204C.35, is amended by adding a subdivision to read:
Subd. 4. Filing
officer. For the purposes of
this section, the secretary of state is the filing officer for candidates for
all federal offices and for state offices voted on in more than one county. The county auditor is the filing officer for
state offices voted on in only one county.
Sec. 39. Minnesota Statutes 2012, section 204C.36, subdivision 1, is amended to read:
Subdivision 1. Required
Publicly funded recounts. (a)
Except as provided in paragraph paragraphs (b) and (c), a
losing candidate for nomination or election to a county, municipal, or school
district office may request a recount of the votes cast for the nomination or
election to that office if the difference between the vote cast for that
candidate and for a winning candidate for nomination or election is less than one-half
one-quarter of one percent of the total votes counted for that office. In case of offices where two or more seats
are being filled from among all the candidates for the office, the one-half
one-quarter of one percent difference is between the elected candidate
with the fewest votes and the candidate with the most votes from among the
candidates who were not elected.
(b) A losing candidate for nomination
or election to a county, municipal, or school district office may request a
recount of the votes cast for nomination or election to that office if the
difference between the votes cast for that candidate and for a winning
candidate for nomination or election is less than one-half of one percent, and
the total number of votes cast for the nomination or election of all candidates
is more than 400 but less than 50,000. In
cases of offices where two or more seats are being filled from among all the
candidates for the office, the one-half of one percent difference is between
the elected candidate with the fewest votes and the candidate with the most
votes from among the candidates who were not elected.
(b) (c) A losing candidate
for nomination or election to a county, municipal, or school district office
may request a recount of the votes cast for nomination or election to that
office if the difference between the vote cast for that candidate and for a
winning candidate for nomination or election is ten votes or less, and the
total number of votes cast for the nomination or election of all candidates is
no more than 400. In cases of offices
where two or more seats are being filled from among all the candidates for the
office, the ten vote difference is between the elected candidate with the
fewest votes and the candidate with the most votes from among the candidates
who were not elected.
(c) (d) Candidates for
county offices shall file a written request for the recount with the county
auditor. Candidates for municipal or
school district offices shall file a written request with the municipal or
school district clerk as appropriate. All
requests shall be filed during the time for notice of contest of the primary or
election for which a recount is sought.
(d) (e) Upon receipt of a
request made pursuant to this section, the county auditor shall recount the
votes for a county office at the expense of the county, the governing body of the
municipality shall recount the votes for a municipal office at the expense of
the municipality, and the school board of the school district shall recount the
votes for a school district office at the expense of the school district.
Sec. 40. Minnesota Statutes 2012, section 204D.08, subdivision 6, is amended to read:
Subd. 6. State
and county nonpartisan primary ballot. The
state and county nonpartisan primary ballot shall be headed "State and
County Nonpartisan Primary Ballot." It shall be printed on canary paper in
the manner provided in the rules of the secretary of state. The names of candidates for nomination to the
Supreme Court, Court of Appeals, district court, and all county offices shall
be placed on this ballot.
No candidate whose name is placed on the state and county nonpartisan primary ballot shall be designated or identified as the candidate of any political party or in any other manner except as expressly provided by law.
Sec. 41. Minnesota Statutes 2012, section 204D.09, subdivision 2, is amended to read:
Subd. 2. Sample
ballot. At least two weeks 46
days before the state primary the county auditor shall prepare a sample state
partisan primary ballot and a sample state and county nonpartisan primary
ballot for each precinct for public inspection and transmit an
electronic copy of these sample ballots to the secretary of state. The names of all of the candidates to
be voted for in the county shall be placed on the sample ballots, with the
names of the candidates for each office arranged in the base rotation as
determined by section 206.61, subdivision 5.
Only one sample state partisan primary ballot and one sample state
and county nonpartisan ballot shall be prepared for any county. The county auditor shall post the sample
ballots in a conspicuous place in the auditor's office and shall cause them to
be published at least one week before the state primary in at least one
newspaper of general circulation in the county.
Sec. 42. Minnesota Statutes 2012, section 204D.11, subdivision 1, is amended to read:
Subdivision 1. White
State general election ballot; rules.
The names of the candidates for all partisan state and
federal offices, all proposed constitutional amendments, all county
offices and questions, and all judicial offices voted on at the state
general election shall be placed on a single ballot printed on white paper
which that shall be known as the "white state general
election ballot." This ballot
shall be prepared by the county auditor subject to the rules of the secretary
of state. The secretary of state shall
adopt rules for preparation and time of delivery of the white state
general election ballot.
Sec. 43. Minnesota Statutes 2012, section 204D.11, subdivision 4, is amended to read:
Subd. 4. Special
federal white ballot. (a) The
names of all candidates for the offices of president and vice-president of the
United States and senator and representative in Congress shall be placed on a
ballot printed on white paper which that shall be known as the
"special federal white ballot."
(b) This ballot shall be prepared by the
county auditor in the same manner as the white state general election
ballot and shall be subject to the rules adopted by the secretary of state
pursuant to subdivision 1. This ballot
must be prepared and furnished in accordance with the federal Uniformed and
Overseas Citizens Absentee Voting Act, United States Code, title 42, section
1973ff.
(c) The special federal white
ballot shall be the only ballot sent to citizens of the United States who are
eligible to vote by absentee ballot for federal candidates in Minnesota.
Sec. 44. Minnesota Statutes 2012, section 204D.11, subdivision 5, is amended to read:
Subd. 5. Ballot
headings. The white, pink, and
special federal white ballot containing the offices and questions in
subdivisions 1 and 4, shall be headed with the words "State General
Election Ballot." The canary
ballot shall be headed with the words "County and Judicial Nonpartisan
General Election Ballot."
Sec. 45. Minnesota Statutes 2012, section 204D.11, subdivision 6, is amended to read:
Subd. 6. Gray
Judicial ballot. When the
canary ballot would be longer than 30 inches or when it would not be
possible to place all offices on a single ballot card for the state general
election, the judicial offices that should be placed on the canary
ballot may be placed instead on a separate gray judicial
ballot. The gray judicial
ballot shall be prepared by the county auditor in the manner provided in the
rules of the secretary of state.
The gray judicial
ballot must be headed with the words: "Judicial
Nonpartisan General Election Ballot." Separate ballot boxes must be provided for
these gray judicial ballots.
Sec. 46. Minnesota Statutes 2012, section 204D.13, subdivision 3, is amended to read:
Subd. 3. Nominees
by petition; placement on ballot. The
names of candidates nominated by petition for a partisan office voted on at the
state general election shall be placed on the white state general
election ballot after the names of the candidates for that office who were
nominated at the state primary. Prior
to the state primary No later than 11 weeks before the state general
election, the secretary of state shall determine by lot the order of
candidates nominated by petition. The
drawing of lots must be by political party or principle. The political party or political principle of
the candidate as stated on the petition shall be placed after the name of a
candidate nominated by petition. The
word "nonpartisan" shall not be used to designate any partisan
candidate whose name is placed on the white state general election
ballot by nominating petition.
Sec. 47. Minnesota Statutes 2012, section 204D.14, subdivision 1, is amended to read:
Subdivision 1. Rotation
of names. The names of candidates
for nonpartisan offices on the canary state general election ballot
and the judicial nonpartisan general election ballot shall be rotated in
the manner provided for rotation of names on state partisan primary ballots by
section 204D.08, subdivision 3.
Sec. 48. Minnesota Statutes 2012, section 204D.14, subdivision 3, is amended to read:
Subd. 3. Uncontested
judicial offices. Judicial offices
for a specific court for which there is only one candidate filed must appear
after all other judicial offices for that same court on the canary
ballot.
Sec. 49. Minnesota Statutes 2012, section 204D.15, subdivision 3, is amended to read:
Subd. 3. Sample
pink ballot; constitutional amendments. Four weeks before the state general
election the secretary of state shall file sample copies of the pink ballot
portion of the state general election ballot that contains the proposed
constitutional amendments in the Secretary of State's Office for public
inspection. Three weeks before the state
general election the secretary of state shall mail transmit
sample copies of the pink sample ballot to each county auditor. Each auditor shall post the sample ballot in
a conspicuous place in the auditor's office.
Sec. 50. Minnesota Statutes 2012, section 204D.16, is amended to read:
204D.16
SAMPLE GENERAL ELECTION BALLOTS; POSTING; PUBLICATION.
Two weeks before the state general
election the county auditor shall prepare sample copies of the white and canary
ballots and At least 46 days before the state general election, the
county auditor shall post copies of these sample ballots and a
sample of the pink ballot for each precinct in the auditor's office
for public inspection and transmit an electronic copy of these sample
ballots to the secretary of state. No
earlier than 15 days and no later than two days before the state general
election the county auditor shall cause the a sample white and
canary ballots state general election ballot to be published in at
least one newspaper of general circulation in the county.
Sec. 51. Minnesota Statutes 2012, section 204D.165, is amended to read:
204D.165
SAMPLE BALLOTS TO SCHOOLS.
Notwithstanding any contrary provisions
in section 204D.09 or 204D.16, The county auditor, two weeks before the
applicable primary or general election, shall provide one copy of the an
appropriate sample partisan primary, nonpartisan primary, canary, white,
or pink ballot to a school district upon request. The school district may have the sample
ballots reproduced at its expense for classroom educational purposes and for
educational activities authorized under section 204B.27, subdivision 7.
Sec. 52. Minnesota Statutes 2012, section 204D.19, subdivision 2, is amended to read:
Subd. 2. Special
election when legislature will be in session.
Except for vacancies in the legislature which occur at any time
between the last day of session in an odd-numbered year and the 40th day prior
to the opening day of session in the succeeding even-numbered year, when a
vacancy occurs and the legislature will be in session so that the individual
elected as provided by this section could take office and exercise the duties
of the office immediately upon election, the governor shall issue within five
days after the vacancy occurs a writ calling for a special election. The special election shall be held as soon as
possible, consistent with the notice requirements of section 204D.22,
subdivision 3, but in no event more than 35 days after the issuance of the writ. A special election must not be held during
the four days before or the four days after a holiday as defined in section
645.44, subdivision 5.
Sec. 53. Minnesota Statutes 2012, section 205.02, subdivision 2, is amended to read:
Subd. 2. City
elections. In all statutory and home
rule charter cities, the primary, general and special elections held for
choosing city officials and deciding public questions relating to the city
shall be held as provided in this chapter, except that sections 205.065,
subdivisions 4 to 6; 205.07, subdivision 3; 205.10; 205.121; and 205.17, subdivisions
2 and subdivision 3, do not apply to a city whose charter provides
the manner of holding its primary, general or special elections.
Sec. 54. Minnesota Statutes 2012, section 205.10, subdivision 3, is amended to read:
Subd. 3. Prohibition. No special election authorized under
subdivision 1 may be held within 40 56 days after the state
general election.
Sec. 55. Minnesota Statutes 2012, section 205.13, subdivision 1a, is amended to read:
Subd. 1a. Filing
period. In a city nominating
candidates at a primary, an affidavit of candidacy for a city office voted on
in November must be filed no more than 84 days nor less than 70 days before the
city primary. In municipalities that do
not hold a primary, an affidavit of candidacy must be filed no more than 70
days and not less than 56 days before the municipal general election held in
March in any year, or a special election not held in conjunction with another
election, and no more than 98 days nor less than 84 days before the municipal
general election held in November of any
year. The municipal clerk's office
must be open for filing from 1:00 p.m. to 5:00 p.m. on the last
day of the filing period.
Sec. 56. Minnesota Statutes 2012, section 205.16, subdivision 4, is amended to read:
Subd. 4. Notice
to auditor. At least 67 74
days before every municipal election held in conjunction with a regularly
scheduled primary for federal, state, county, city, or school board office or a
special primary for federal office, at least 74 days before every municipal
election held in connection with a regularly scheduled general election for federal, state, county, city, or
school board office or a special election for federal office, and at least 53
days before any other municipal election, the municipal clerk shall
provide a written notice to the county auditor, including the date of the
election, the offices to be voted on at the election, and the title and
language for each ballot question to be voted on at the election. At least 67 74 days before
every municipal election held in conjunction with a regularly scheduled
primary for federal, state, county, city, or school board office or a special
primary for federal office, at least 74 days before a regularly scheduled
general election for federal, state, county, city, or school board office or a
special election for federal office, and at least 46 days before any other
election, the municipal clerk must provide written notice to the county
auditor of any special election canceled under section 205.10, subdivision 6.
Sec. 57. Minnesota Statutes 2012, section 205.16, subdivision 5, is amended to read:
Subd. 5. Notice
to secretary of state. At least 67
74 days before every municipal election held in conjunction with a
regularly scheduled primary for federal, state, county, city, or school board
office or a special primary for federal office, at least 74 days before every
municipal election held in conjunction with a regularly scheduled general
election for federal, state, county, city, or school board office or a special
election for federal office, and at least 46 days before any other municipal
election for which a notice is provided to the county auditor under
subdivision 4, the county auditor shall provide a notice of the election to the
secretary of state, in a manner and including information prescribed by the
secretary of state.
Sec. 58. Minnesota Statutes 2012, section 205.17, subdivision 1, is amended to read:
Subdivision 1. Second,
third, and fourth class cities; towns Municipal offices; questions;
general election ballot. In all
statutory and home rule charter cities of the second, third, and fourth
class, and in all towns, for the municipal general election, the
municipal clerk shall have printed on light green paper the official
ballot containing the names of all candidates for municipal offices and
municipal ballot questions. The
ballot shall be printed in quantities of 25, 50, or 100, shall be headed
"City or Town Election Ballot," shall state the name of the city or
town and the date of the election, and shall conform in other respects to the white
ballot used at the state general election ballot. The names shall be arranged on city ballots
in the manner provided for the state elections.
On town ballots names of the candidates for each office shall be
arranged either:
(1) alphabetically according to the candidates' surnames; or
(2) in the manner provided for state elections if the town electors chose at the town's annual meeting to arrange the names in that way for at least two consecutive years.
Sec. 59. Minnesota Statutes 2012, section 205.17, subdivision 3, is amended to read:
Subd. 3. Primary
ballots. The municipal primary
ballot in cities of the second, third, and fourth class and towns and the
nonpartisan primary ballot in cities of the first class shall conform as
far as practicable with the municipal general election ballot except that it
shall be printed on light green paper.
No blank spaces shall be provided for writing in the names of candidates. The partisan primary ballot in cities of
the first class shall conform as far as practicable with the state partisan
primary ballot.
Sec. 60. Minnesota Statutes 2012, section 205A.04, is amended by adding a subdivision to read:
Subd. 3. Change
in year of general election. The
school board may, by resolution, change the year in which the school district
general election will be held. The
resolution must be approved no later than four weeks before the first day to
file affidavits of candidacy for the general election. A plan for the orderly transition to the new
election year must be included in the resolution. The terms of school board members may be
lengthened or shortened by one year as a part of the transition process.
Sec. 61. Minnesota Statutes 2012, section 205A.05, subdivision 1, is amended to read:
Subdivision
1. Questions. Special elections must be held for a
school district on a question on which the voters are authorized by law to pass
judgment. The school board may on its
own motion call a special election to vote on any matter requiring approval of
the voters of a district. Upon petition
filed with the school board of 50 or more voters of the school district or five
percent of the number of voters voting at the preceding school district general
election, whichever is greater, the school board shall by resolution call a
special election to vote on any matter requiring approval of the voters of a
district. A question is carried only
with the majority in its favor required by law.
The election officials for a special election are the same as for the
most recent school district general election unless changed according to
law. Otherwise, special elections
must be conducted and the returns made in the manner provided for the school
district general election. A special
election may not be held during the 30 56 days before and the 30
56 days after the state a regularly scheduled primary,
during the 30 days before and the 40 days after the state or general
election. In addition, a special
election may not be held during the 20 days before and the 20 days after any
regularly scheduled election of a municipality conducted wholly or
partially within the school district.
Notwithstanding any other law to the contrary, the time period in which
a special election must be conducted under any other law may be extended by the
school board to conform with the requirements of this subdivision.
Sec. 62. Minnesota Statutes 2012, section 205A.05, subdivision 2, is amended to read:
Subd. 2. Vacancies
in school district offices. Special
elections shall be held in school districts in conjunction with school district
primary and general elections to fill vacancies in elective school district
offices. When more than one vacancy
exists in an office elected at-large, voters must be instructed to vote for up
to the number of vacancies to be filled.
Sec. 63. Minnesota Statutes 2012, section 205A.07, subdivision 3, is amended to read:
Subd. 3. Notice
to auditor. At least 67 74
days before every school district election held in conjunction with a
regularly scheduled primary for federal, state, county, city, or school board
office or a special primary for federal office, at least 74 days before every
school district election held in conjunction with a regularly scheduled general
election for federal, state, county, city,
or school board office or a special election for federal office, and at least
53 days before any other school district election, the school
district clerk shall provide a written notice to the county auditor of each
county in which the school district is located.
The notice must include the date of the election, the offices to be
voted on at the election, and the title and language for each ballot question
to be voted on at the election. For the
purposes of meeting the timelines of this section, in a bond election, a
notice, including a proposed question, may be provided to the county auditor
before receipt of a review and comment from the commissioner of education and
before actual initiation of the election.
At least 67 74 days before every school district election held
in conjunction with a regularly scheduled primary for federal, state, county,
city, or school board office or a special primary for federal office, at least
74 days before an election held in conjunction with a regularly scheduled
general election for federal, state, county, city, or school board office or a
special election for federal office, and at least 46 days before any other
election, the school district clerk must provide written notice to the
county auditor of any special election canceled under section 205A.05,
subdivision 3.
Sec. 64. Minnesota Statutes 2012, section 205A.07, subdivision 3a, is amended to read:
Subd. 3a. Notice
to commissioner of education. At
least 67 74 days before every school district election held in
conjunction with a regularly scheduled primary for federal, state, county,
city, or school board office or a special primary for federal office, at least
74 days before every school district election held in conjunction with a
regularly scheduled general election for federal, state, county, city, or
school board office or a special election for federal office, and at least 49
days before any other school district election, under section 123B.62,
123B.63, 126C.17, 126C.69, or 475.58, the school district clerk shall provide a
written notice to the commissioner of education. The notice must include the date of the
election and the title and language for each ballot question to be voted on at
the election. At least 67 74
days before every school district election held in conjunction with a
regularly scheduled primary for federal, state, county, city, or school board
office or a special primary for federal office, at least 74 days before every
school district election held in conjunction with a regularly scheduled general
election for federal, state, county, city, or school board office or a special
election for federal office, and at least 46 days before any other school
district election, the school district clerk must provide a written notice
to the commissioner of education of any special election canceled under section
205A.05, subdivision 3. The certified
vote totals for each ballot question shall be provided in a written notice to
the commissioner in a timely manner.
Sec. 65. Minnesota Statutes 2012, section 205A.07, subdivision 3b, is amended to read:
Subd. 3b. Notice
to secretary of state. At least 67
74 days before every school district election held in conjunction
with a regularly scheduled primary for federal, state, county, city, or school
board office or a special primary for federal office, at least 74 days before
every school district election held in conjunction with a regularly scheduled
general election for federal, state, county, city, or school board office or a
special election for federal office, and at least 46 days before any other
school district election for which a notice is provided to the county
auditor under subdivision 3, the county auditor shall provide a notice of the
election to the secretary of state, in a manner and including information
prescribed by the secretary of state.
Sec. 66. Minnesota Statutes 2012, section 205A.08, subdivision 1, is amended to read:
Subdivision 1. Buff
General election ballot. The
names of all candidates for offices and all ballot questions to be voted
on at a school district general election must be placed on a single ballot printed
on buff paper and known as the "buff ballot.".
Sec. 67. Minnesota Statutes 2012, section 206.57, is amended by adding a subdivision to read:
Subd. 8. Ballot
boxes. Notwithstanding
Minnesota Rules, part 8230.4355, ballot boxes used with precinct count voting
systems are not required to contain two separate compartments to receive
ballots.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 68. Minnesota Statutes 2012, section 206.61, subdivision 4, is amended to read:
Subd. 4. Order
of candidates. On the "State
Partisan Primary Ballot" prepared for primary elections, and on the white
state general election ballot prepared for the general election, the
order of the names of nominees or names of candidates for election shall be the
same as required for paper ballots. More
than one column or row may be used for the same office or party. Electronic ballot display and audio ballot
readers must conform to the candidate order on the optical scan ballot used in
the precinct.
Sec. 69. Minnesota Statutes 2012, section 206.89, subdivision 2, is amended to read:
Subd. 2.
Selection for review; notice. At the canvass of the state primary, the
county canvassing board in each county must set the date, time, and place for
the postelection review of the state general election to be held under this
section. The postelection review must
not begin before the 11th day after the state general election and must be
complete no later than the 18th day after the state general election.
At the canvass of the state general election,
the county canvassing boards must select the precincts to be reviewed by lot. Ballots counted centrally by a ballot
board shall be considered one precinct eligible to be selected for purposes of
this subdivision. The ballots to
be reviewed for a precinct include both the ballots counted at the polling
place for that precinct and the absentee ballots counted centrally by a ballot
board for that precinct. The county
canvassing board of a county with fewer than 50,000 registered voters must
conduct a postelection review of a total of at least two precincts. The county canvassing board of a county with
between 50,000 and 100,000 registered voters must conduct a review of a total
of at least three precincts. The county
canvassing board of a county with over 100,000 registered voters must conduct a
review of a total of at least four precincts, or three percent of the total
number of precincts in the county, whichever is greater. At least one precinct selected in each county
must have had more than 150 votes cast at the general election.
The county auditor must notify the secretary of state of the precincts that have been chosen for review and the time and place the postelection review for that county will be conducted, as soon as the decisions are made. If the selection of precincts has not resulted in the selection of at least four precincts in each congressional district, the secretary of state may require counties to select by lot additional precincts to meet the congressional district requirement. The secretary of state must post this information on the office Web site.
Sec. 70. Minnesota Statutes 2012, section 206.89, is amended by adding a subdivision to read:
Subd. 2a. Exception. No review is required under this
section if the election for the office will be subject to a recount as provided
in section 204C.35, subdivision 1.
Sec. 71. Minnesota Statutes 2012, section 206.90, subdivision 6, is amended to read:
Subd. 6. Ballots. In precincts using optical scan voting
systems, a single ballot card on which all ballot information is included must
be printed in black ink on white colored material except that marks not to be
read by the automatic tabulating equipment may be printed in another color ink. In state elections, a single ballot title
must be used, as provided in sections 204D.08, subdivision 6, and 204D.11,
subdivision 1. In odd-numbered years
when both municipal and school district offices or questions appear on the
ballot, the single ballot title "City (or Town) and School District
Ballot" must be used.
On the front of the ballot must be printed the words "Official Ballot" and the date of the election and lines for the initials of at least two election judges.
When optical scan ballots are used, the offices to be elected must appear in the following order: federal offices; state legislative offices; constitutional offices; proposed constitutional amendments; county offices and questions; municipal offices and questions; school district offices and questions; special district offices and questions; and judicial offices.
On optical scan ballots, the names of candidates and the words "yes" and "no" for ballot questions must be printed as close to their corresponding vote targets as possible.
The line on an optical scan ballot for write-in votes must contain the words "write-in, if any."
If a primary ballot contains both a partisan ballot and a nonpartisan ballot, the instructions to voters must include a statement that reads substantially as follows: "THIS BALLOT CARD CONTAINS A PARTISAN BALLOT AND A NONPARTISAN BALLOT. ON THE PARTISAN BALLOT YOU ARE PERMITTED TO VOTE FOR CANDIDATES OF ONE POLITICAL PARTY ONLY." If a primary ballot contains political party columns on both sides of the ballot, the instructions to voters must include a statement that reads substantially as follows: "ADDITIONAL POLITICAL PARTIES ARE PRINTED ON THE OTHER SIDE OF THIS BALLOT. VOTE FOR ONE POLITICAL PARTY ONLY." At the bottom of each political party column on the primary ballot, the ballot must contain a statement that reads substantially as follows: "CONTINUE VOTING ON THE NONPARTISAN BALLOT." The instructions in section 204D.08, subdivision 4, do not apply to optical scan partisan primary ballots. Electronic ballot displays and audio ballot readers must follow the order of offices and questions on the optical scan or paper ballot used in the same precinct, or the sample ballot posted for that precinct.
Sec. 72. Minnesota Statutes 2012, section 208.04, subdivision 1, is amended to read:
Subdivision 1. Form
of presidential ballots. When
presidential electors and alternates are to be voted for, a vote cast for the
party candidates for president and vice president shall be deemed a vote for
that party's electors and alternates as filed with the secretary of state. The secretary of state shall certify the
names of all duly nominated presidential and vice presidential candidates to
the county auditors of the counties of the state. Each county auditor, subject to the rules of
the secretary of state, shall cause the names of the candidates of each major
political party and the candidates nominated by petition to be printed in
capital letters, set in type of the same size and style as for candidates on
the state white general election ballot, before the party
designation. To the left of, and on the
same line with the names of the candidates for president and vice president,
near the margin, shall be placed a square or box, in which the voters may
indicate their choice by marking an "X."
The form for the presidential ballot and the relative position of the several candidates shall be determined by the rules applicable to other state officers. The state ballot, with the required heading, shall be printed on the same piece of paper and shall be below the presidential ballot with a blank space between one inch in width.
Sec. 73. Minnesota Statutes 2012, section 208.04, subdivision 2, is amended to read:
Subd. 2. Applicable
rules. The rules for preparation, state
contribution to the cost of printing, and delivery of presidential ballots are
the same as the rules for white state general election ballots
under section 204D.11, subdivision 1.
Sec. 74. Minnesota Statutes 2012, section 211B.045, is amended to read:
211B.045
NONCOMMERCIAL SIGNS EXEMPTION.
In any municipality, whether or not the
municipality has an ordinance that regulates the size or number of
noncommercial signs, All noncommercial signs of any size may be posted in
any number from beginning 46 days before the state primary in a
state general election year until ten days following the state general election. Municipal ordinances may regulate the size
and number of noncommercial signs at other times.
Sec. 75. Minnesota Statutes 2012, section 211B.37, is amended to read:
211B.37
COSTS ASSESSED.
Except as otherwise provided in section
211B.36, subdivision 3, the chief administrative law judge shall assess the
cost of considering complaints filed under section 211B.32 as provided in this
section. Costs of complaints relating to
a statewide ballot question or an election for a statewide or legislative
office must be assessed against the appropriation from the general fund to the
general account of the state elections campaign fund in section 10A.31,
subdivision 4. Costs of complaints
relating to any other ballot question or elective office must be assessed
against the county or counties in which the election is held. Where the election is held in more than one
county, the chief administrative law judge shall apportion the assessment among
the counties in proportion to their respective populations within the election
district to which the complaint relates according to the most recent decennial
federal census paid from appropriations to the office for this purpose.
Sec. 76. Minnesota Statutes 2012, section 340A.416, subdivision 2, is amended to read:
Subd. 2. Ballot
question. The form of the
question of the referendum under this section must be on a separate ballot
and must allow the voters to vote either "for license" or
"against license." either "Shall the city issue ... intoxicating
liquor licenses?" or "Shall the city discontinue issuing intoxicating
liquor licenses?".
Sec. 77. Minnesota Statutes 2012, section 340A.416, subdivision 3, is amended to read:
Subd. 3. Effect
of election results. If a majority
of persons voting on the referendum question vote "against
license," to discontinue issuing licenses, the city may not
issue intoxicating liquor licenses until the results of the referendum have
been reversed at a subsequent election where the question has been submitted as
provided in this section.
Sec. 78. Minnesota Statutes 2012, section 340A.602, is amended to read:
340A.602
CONTINUATION.
In any city in which the report of the operations of a municipal liquor store has shown a net loss prior to interfund transfer in any two of three consecutive years, the city council shall, not more than 45 days prior to the end of the fiscal year following the three-year period, hold a public hearing on the question of whether the city shall
continue to operate a municipal
liquor store. Two weeks' notice, written
in clear and easily understandable language, of the hearing must be printed in
the city's official newspaper. Following
the hearing the city council may on its own motion or shall upon petition of
five percent or more of the registered voters of the city, submit to the voters
at a general or special municipal election the question of whether the city
shall continue or discontinue municipal liquor store operations by a date which
the city council shall designate. The
date designated by the city council must not be more than 30 months following
the date of the election. The form of
the question shall be: "Shall the
city of (name) discontinue operating the municipal liquor store on (Month xx,
2xxx)?".
Sec. 79. Minnesota Statutes 2012, section 375.20, is amended to read:
375.20
BALLOT QUESTIONS.
If the county board may do an act, incur a
debt, appropriate money for a purpose, or exercise any other power or
authority, only if authorized by a vote of the people, the question may be
submitted at a special or general election, by a resolution specifying the
matter or question to be voted upon. If
the question is to authorize the appropriation of money, creation of a debt, or
levy of a tax, it shall state the amount.
Notice of the election shall be given as in the case of special
elections. If the question submitted is
adopted, the board shall pass an appropriate resolution to carry it into effect. In the election the form of the ballot shall
be: "In favor of Shall
(here state the substance of the resolution to be submitted)?, Yes ......
No......," with a square opposite each of the words "yes" and
"no," in one of which the voter shall mark an "X" to
indicate a choice. The county board
may call a special county election upon a question to be held within 60 74
days after a resolution to that effect is adopted by the county board. Upon the adoption of the resolution the
county auditor shall post and publish notices of the election, as required by
section 204D.22, subdivisions 2 and 3. The
election shall be conducted and the returns canvassed in the manner prescribed
by sections 204D.20 to 204D.27, so far as practicable.
Sec. 80. Minnesota Statutes 2012, section 447.32, subdivision 2, is amended to read:
Subd. 2. Elections. Except as provided in this chapter, the Minnesota Election Law applies to hospital district elections, as far as practicable. Regular elections must be held in each hospital district at the same time, in the same election precincts, and at the same polling places as general elections of state and county officers. It may establish the whole district as a single election precinct or establish two or more different election precincts and polling places for the elections. If there is more than one precinct, the boundaries of the election precincts and the locations of the polling places must be defined in the notice of election, either in full or by reference to a description or map on file in the office of the clerk.
Special elections may be called by the
hospital board to vote on any matter required by law to be submitted to the
voters. A special election may not be
conducted either during the 30 56 days before and the 30 days
after the state or the 56 days after a regularly scheduled primary
or state general election, or during the 20 days before and the 20
days after the regularly scheduled election of any municipality conducted
wholly or partially within the hospital district. Special elections must be held within the
election precinct or precincts and at the polling place or places designated by
the board. In the case of the first
election of officers of a new district, precincts and polling places must be
set by the governing body of the most populous city or town included in the
district.
Advisory ballots may be submitted by the hospital board on any question it wishes, concerning the affairs of the district, but only at a regular election or at a special election required for another purpose.
Sec. 81. Minnesota Statutes 2012, section 447.32, subdivision 3, is amended to read:
Subd. 3. Election notices. At least two weeks before the first day to file affidavits of candidacy, the clerk of the district shall publish a notice stating the first and last day on which affidavits of candidacy may be filed, the places for filing the affidavits and the closing time of the last day for filing. The clerk shall post a similar notice in at least one conspicuous place in each city and town in the district at least ten days before the first day to file affidavits of candidacy.
At least 53 74
days prior to every hospital district election, the hospital district clerk
shall provide a written notice to the county auditor of each county in which
the hospital district is located. The
notice must include the date of the election, the offices to be voted on at the
election, and the title and language for each ballot question to be voted on at
the election. At least 46 days before
a hospital district election for which a notice is provided to the county
auditor under this subdivision, The county auditor shall immediately
provide a notice to the secretary of state in a manner and including
information prescribed by the secretary of state.
The notice of each election must be posted in at least one
public and conspicuous place within each city and town included in the district
at least ten days two weeks before the election. It must be published in the official
newspaper of the district or, if a paper has not been designated, in a legal
newspaper having general circulation within the district, at least two weeks
before the election. Failure to give
notice does not invalidate the election of an officer of the district. A voter may contest a hospital district
election in accordance with chapter 209.
Chapter 209 applies to hospital district elections.
Sec. 82. Minnesota Statutes 2012, section 447.32, subdivision 4, is amended to read:
Subd. 4. Candidates; ballots; certifying election. A person who wants to be a candidate for
the hospital board shall file an affidavit of candidacy for the election either
as member at large or as a member representing the city or town where the
candidate resides. The affidavit of
candidacy must be filed with the city or town clerk not more than 91 98
days nor less than 77 84 days before the first Tuesday after the
first Monday in November of the year in which the general election is held. The city or town clerk must forward the
affidavits of candidacy to the clerk of the hospital district or, for the first
election, the clerk of the most populous city or town immediately after the
last day of the filing period. A
candidate may withdraw from the election by filing an affidavit of withdrawal
with the clerk of the district no later than 5:00 p.m. two days after the last
day to file affidavits of candidacy.
Voting must be by secret ballot. The clerk shall prepare, at the expense of
the district, necessary ballots for the election of officers. Ballots must be printed on tan paper and
prepared as provided in the rules of the secretary of state. The ballots must be marked and initialed by
at least two judges as official ballots and used exclusively at the election. Any proposition to be voted on may be printed
on the ballot provided for the election of officers. The hospital board may also authorize the use
of voting systems subject to chapter 206.
Enough election judges may be appointed to receive the votes at each
polling place. The election judges shall
act as clerks of election, count the ballots cast, and submit them to the board
for canvass.
After canvassing the election, the board shall issue a certificate of election to the candidate who received the largest number of votes cast for each office. The clerk shall deliver the certificate to the person entitled to it in person or by certified mail. Each person certified shall file an acceptance and oath of office in writing with the clerk within 30 days after the date of delivery or mailing of the certificate. The board may fill any office as provided in subdivision 1 if the person elected fails to qualify within 30 days, but qualification is effective if made before the board acts to fill the vacancy.
Sec. 83. Laws 1963, chapter 276, section 2, subdivision 2, as amended by Laws 1992, chapter 534, section 1, is amended to read:
Subd. 2. One
third of the members of the first hospital board shall be appointed for a term
to expire one year from December 31 next following such appointment, one third
for a term to expire two years from such date, and one third for a term to
expire three years from such date. Successors
to the original board members shall each be elected for terms of three years,
and all members shall hold office until their successors are elected and
qualify. Terms of all members shall
expire on December 31. In case of a
vacancy on the hospital board, whether due to death, removal from the district,
inability to serve, resignation, or other cause the majority of the remaining
members of the hospital board, at its next regular or special meeting, shall
make an appointment to fill such vacancy for the then unexpired term. The election of successors to the original
board members shall be elected by popular vote of
the qualified voters in the
hospital district. Hospital board
elections shall be conducted as provided in Minnesota Statutes, section 447.32. The hospital board shall, by resolution,
adopt a plan for the orderly transition to the new election schedule. The resolution must be approved no later than
four weeks before the first day to file affidavits of candidacy for the general
election. The terms of hospital board
members may be lengthened or shortened by one year as a part of the transition
process.
Sec. 84. APPROPRIATION.
$60,000 is appropriated from the
general fund in fiscal year 2014 to the secretary of state to develop
functionality within the statewide voter registration system to facilitate the
processing and tracking of mail ballots.
Sec. 85. REPEALER.
(a) Minnesota Statutes 2012, sections
204B.22, subdivision 2; 204B.42; 204D.11, subdivisions 2 and 3; 205.17,
subdivisions 2 and 4; and 205A.08, subdivision 4, are repealed.
(b) Minnesota Statutes 2012, sections
2.444; and 2.484, are repealed.
ARTICLE 3
VOTING RIGHTS AND VOTING DATA
Section 1. Minnesota Statutes 2012, section 13.851, subdivision 10, is amended to read:
Subd. 10. Felony
sentence offender data; voter registration. The use of felony sentence offender
data made available to the secretary of state is governed by section 201.157.
Sec. 2. Minnesota Statutes 2012, section 201.157, is amended to read:
201.157
USE OF DEPARTMENT OF CORRECTIONS DATA.
As required by the Help America Vote
Act of 2002, Public Law 107-252, (a) The commissioner of corrections
shall make electronic data available to the secretary of state on individuals
18 years of age or older who are currently:
(1) serving felony sentences under the commissioner's jurisdiction; or
(2) on probation for felony offenses that would result in the loss of civil rights, as indicated by the statewide supervision system established under section 241.065.
The data must include the name, date of
birth, last known residential address that is not a correctional facility,
and, if available, corrections' state identification number, and if
available, and the driver's license or state identification card
number, and, if an individual has completed the sentence, the date of
discharge.
(b) The secretary of state must determine if any data newly indicates that:
(1) an individual with an active voter registration in the statewide voter registration system is currently serving a felony sentence under the commissioner's jurisdiction or is on probation for a felony offense that would result in the loss of civil rights and the individual's voter record does not already have a challenged status due to a felony conviction;
(2) an individual with an active voter registration in the statewide voter registration system who is currently serving a felony sentence under the commissioner's jurisdiction or who is on probation for a felony offense that would result in the loss of civil rights appears to have registered to vote or to have voted during a period when the individual's civil rights were revoked; and
(3) an individual with a voter record that has a challenged status due to a felony conviction who was serving a felony sentence under the commissioner's jurisdiction or who has been on probation for a felony offense that would result in the loss of civil rights has been discharged from a sentence.
The secretary of state shall prepare a list of the registrants included under clause (1), (2), or (3) for each county auditor. For individuals under clause (1), the county auditor shall challenge the individual's record in the statewide voter registration system. The county auditor must provide information to the county attorney about individuals under clause (2) for the county attorney's investigation. For individuals under clause (3), the county auditor must determine if the challenge status should be removed from the voter record for the individual, and if so, must remove the challenge.
The secretary of state must make the required determinations and provide the required lists to the county auditors at least monthly.
For each state general election that occurs prior to the statewide voter registration system being programmed to generate lists as required by this section, the secretary of state must make the determination and provide lists to the county auditors between 30 and 60 days before the election and again between six and ten weeks after the election. In the year following that state election, the secretary of state must make this determination and provide lists to the county auditors again as part of the annual list maintenance.
Sec. 3. Minnesota Statutes 2012, section 201.275, is amended to read:
201.275
INVESTIGATIONS; PROSECUTIONS.
A county attorney who law
enforcement agency that is notified by affidavit of an alleged violation of
this chapter shall promptly investigate.
Upon receiving an affidavit alleging a violation of this chapter, a
county attorney shall promptly forward it to a law enforcement agency with
jurisdiction for investigation. If
there is probable cause for instituting a prosecution, the county attorney
shall proceed by complaint or present the charge, with whatever evidence has
been found, to the grand jury. A county
attorney who refuses or intentionally fails to faithfully perform this or any
other duty imposed by this chapter is guilty of a misdemeanor and upon
conviction shall forfeit office. The
county attorney, under the penalty of forfeiture of office, shall prosecute all
violations of this chapter except violations of this section; if, however, a
complainant withdraws an allegation under this chapter, the county attorney is
not required to proceed with the prosecution.
Sec. 4. Minnesota Statutes 2012, section 203B.06, subdivision 3, is amended to read:
Subd. 3. Delivery
of ballots. (a) The commissioner
of corrections must provide the secretary of state with a list of the names and
mailing addresses of state adult correctional facilities. An application for an absentee ballot that
provides an address included on the list provided by the commissioner of corrections
must not be accepted and an absentee ballot must not be provided to the
applicant. The county auditor or
municipal clerk must promptly transmit a copy of the application to the county
attorney. The Department of Corrections
must implement procedures to ensure that absentee ballots issued under chapter
203B are not received or mailed by offenders incarcerated at state adult
correctional facilities.
(b) If an application for absentee ballots is accepted at a time when absentee ballots are not yet available for distribution, the county auditor, or municipal clerk accepting the application shall file it and as soon as absentee ballots are available for distribution shall mail them to the address specified in the application. If an application for absentee ballots is accepted when absentee ballots are available for distribution, the county auditor or municipal clerk accepting the application shall promptly:
(1) mail the ballots to the voter whose signature appears on the application if the application is submitted by mail and does not request commercial shipping under clause (2);
(2) ship the ballots to the voter using a commercial shipper requested by the voter at the voter's expense;
(3) deliver the absentee ballots directly to the voter if the application is submitted in person; or
(4) deliver the absentee ballots in a sealed transmittal envelope to an agent who has been designated to bring the ballots, as provided in section 203B.11, subdivision 4, to a voter who would have difficulty getting to the polls because of incapacitating health reasons, or who is disabled, or who is a patient in a health care facility, a resident of a facility providing assisted living services governed by chapter 144G, a participant in a residential program for adults licensed under section 245A.02, subdivision 14, or a resident of a shelter for battered women as defined in section 611A.37, subdivision 4.
(b) (c) If an application does
not indicate the election for which absentee ballots are sought, the county
auditor or municipal clerk shall mail or deliver only the ballots for the next
election occurring after receipt of the application. Only one set of ballots may be mailed,
shipped, or delivered to an applicant for any election, except as provided in
section 203B.121, subdivision 2, or when a replacement ballot has been
requested by the voter for a ballot that has been spoiled or lost in transit.
EFFECTIVE
DATE. This section is
effective June 15, 2013.
Sec. 5. Minnesota Statutes 2012, section 204C.14, is amended to read:
204C.14
UNLAWFUL VOTING; PENALTY.
Subdivision 1. Violations; penalty. No individual shall intentionally:
(a) misrepresent the individual's identity in applying for a ballot, depositing a ballot in a ballot box or attempting to vote by means of a voting machine or electronic voting system;
(b) vote more than once at the same election;
(c) put a ballot in a ballot box for any illegal purpose;
(d) give more than one ballot of the same kind and color to an election judge to be placed in a ballot box;
(e) aid, abet, counsel or procure another to go into any precinct for the purpose of voting in that precinct, knowing that the other individual is not eligible to vote in that precinct; or
(f) aid, abet, counsel or procure another to do any act in violation of this section.
A violation of this section is a felony.
Subd. 2. Signature
on roster as evidence of intent. For
purposes of proving a violation of this section, the signature of an individual
on a polling place roster is prima facie evidence of the intent of the
individual to vote at that election.
Sec. 6. Minnesota Statutes 2012, section 241.065, subdivision 2, is amended to read:
Subd. 2. Establishment. The Department of Corrections shall
administer and maintain a computerized data system for the purpose of assisting
criminal justice agencies in monitoring and enforcing the conditions of
conditional release imposed on criminal offenders by a sentencing court or the
commissioner of corrections. The adult
data and juvenile data as defined in section 260B.171 in the statewide
supervision system are private data as defined in section 13.02, subdivision
12, but are accessible to criminal justice agencies as defined in section
13.02, subdivision 3a, to the Minnesota sex offender program as provided in
section 246B.04, subdivision 3, to public defenders as provided in section
611.272, to all trial courts and appellate courts, and to criminal justice
agencies in other states in the conduct of their official duties. Adult data in the statewide supervision
system are accessible to the secretary of state for the purposes described in
section 201.157.
Sec. 7. APPROPRIATION.
$47,000 is appropriated in fiscal year 2014 and $48,000 is appropriated in fiscal year 2015 to the secretary of state to administer this article. Of these amounts, $48,000 is added to the base budget of the secretary of state.
ARTICLE 4
ELECTRONIC ROSTERS
Section 1.
ELECTRONIC ROSTER PILOT
PROJECT.
Subdivision 1. Established. A pilot project is established to
explore the use of electronic rosters in conducting elections. Jurisdictions participating in the project
may use electronic rosters to process election day registration, to verify the
registration status of preregistered voters, or both. The pilot project shall apply to general
elections for home rule charter or statutory cities conducted in participating
cities in 2013. The standards for
conducting the pilot project are provided in this section.
Subd. 2. Participating
cities. Precincts located in
Dilworth, Minnetonka, Moorhead, Saint Anthony, and Saint Paul may participate
in the project. In participating cities,
the head elections official may designate individual precincts in the
jurisdiction to participate. A city is
not required to use electronic rosters in all precincts.
Subd. 3. Technology
requirements. (a) In
participating precincts, an electronic poll book must:
(1) be able to be loaded with a data
file that includes voter registration data in a file format prescribed by the
secretary of state, to the extent feasible;
(2) allow for data to be exported in a
file format prescribed by the secretary of state;
(3) allow for data to be entered
manually or by scanning a Minnesota driver's license or identification card to
populate a voter registration application that would be printed and signed and
dated by the voter;
(4) provide for a printed voter's
signature certificate, containing the voter's name, address of residence, date
of birth, voter identification number, the oath required by Minnesota Statutes,
section 204C.10, and a space for the voter's original signature;
(5) immediately alert the election
judge if the electronic poll book indicates that a voter has already voted, the
voter's registration status is challenged, or it appears the voter resides in a
different precinct;
(6) provide immediate instructions on
how to resolve a particular type of challenge when a voter's record is
challenged; and
(7) perform any other functions
necessary for the efficient and secure administration of participating
election, as determined by the secretary of state.
(b) In precincts using electronic
rosters only for election day registration, the technology does not need to
comply with paragraph (a), clause (4), (5), or (6).
Subd. 4. Minnesota
election law; other law. Except
as provided in this section, the provisions of the Minnesota Election Law apply
to this pilot project, so far as practicable.
Voters participating in the safe at home program must be allowed to vote
pursuant to Minnesota Statutes, section 5B.06.
Nothing in this section shall be construed to amend absentee voting
provisions in Minnesota Statutes, chapter 203B.
Subd. 5. Election records retention. All voter's signature certificates and
voter registration applications printed from an electronic poll book shall be
retained pursuant to Minnesota Statutes, section 204B.40. Data on election day registrants must be
uploaded to the statewide voter registration system for processing by county
auditors.
Subd. 6. Election
day. Participating precincts
may use electronic rosters for election day registration, to verify
registration status of preregistered voters, or both. In precincts using electronic rosters to
verify registration status of preregistered voters, the election judges shall
also use a paper roster.
Subd. 7. Evaluation. The secretary of state must evaluate
the pilot project and must report to the legislative committees with
jurisdiction over elections by January 31, 2014, on the results of the
evaluation. The report must include:
(1) a description of the technology
that was used and explanation of how that technology was selected;
(2) the process used for implementing
electronic poll books;
(3) a description of training that was
conducted for election judges and other election officials in precincts that
used electronic poll books;
(4) the number of voters who voted in
each precinct using electronic poll books;
(5)
comments, feedback, or recommendations from election judges and others in a
precinct using electronic poll books;
(6) the costs associated with the use of electronic poll books, broken down by precinct;
(7) comments, feedback, or recommendations from the participating cities and counties regarding data transfers and other exchanges of information; and
(8)
any other feedback or recommendations the secretary of state believes are
relevant to evaluating the pilot project.
Subd. 8. Expiration. The authorization for this pilot
project expires upon submission of the report as provided in subdivision 7.
Sec. 2. ELECTRONIC
ROSTER TASK FORCE.
Subdivision 1. Membership. (a) The Electronic Roster Task Force
consists of the following 15 members:
(1) the director of the Department of
Public Safety, Division of Vehicle Services, or designee;
(2) the secretary of state, or
designee;
(3) an individual designated by
the secretary of state, from the elections division in the Office of the
Secretary of State;
(4) the chief information officer of
the state of Minnesota, or designee;
(5) one county auditor appointed by the
Minnesota Association of County Officers;
(6) one town election official
appointed by the Minnesota Association of Townships;
(7) one city election official
appointed by the League of Minnesota Cities;
(8) one school district election official
appointed by the Minnesota School Boards Association;
(9) one representative appointed by the
speaker of the house of representatives;
(10) one representative appointed by
the minority leader of the house of representatives;
(11) one senator appointed by the
senate Subcommittee on the Committee of the Committee on Rules and
Administration;
(12) one senator appointed by the
senate minority leader;
(13) one person appointed by the
governor, familiar with electronic roster technology but who does not represent
a specific vendor of the technology; and
(14) two election judges appointed by
the governor.
(b) Any vacancy shall be filled by
appointment of the appointing authority for the vacating member.
(c) Members shall be appointed by June
1, 2013.
Subd. 2. Conflict
of interest. No member of the
task force may have a financial interest in a manufacturer or distributor of
electronic roster technology.
Subd. 3. Duties. The task force must research the
following issues:
(1) electronic roster technology, including different types of electronic rosters;
(2) the ability to use photographs
received from the Department of Vehicle Services;
(3) the ability to add photographs to
the roster on election day;
(4)
data security in electronic rosters, the statewide voter registration system,
and the Department of Vehicle Services;
(5) reliability of Department of
Vehicle Services data, including the ability to match names and photographs
without duplication;
(6) ability of precincts across the
state to connect an electronic roster to a secure network to access the
statewide voter registration system; and
(7) direct and indirect costs
associated with using electronic rosters.
Subd. 4. First
meeting. The secretary of
state, or the secretary's designee, must convene the initial meeting of the
task force by July 1, 2013. The members
of the task force must elect a chair and a vice-chair from the members of the
task force at the first meeting.
Subd. 5. Compensation. Public members of the task force shall
be compensated pursuant to Minnesota Statutes, section 15.059, subdivision 3.
Subd. 6. Staff. The Legislative Coordinating
Commission shall provide staff support, as needed, to facilitate the task
force's work.
Subd. 7. Report. The task force must submit a report by January 31, 2014, to the chairs and ranking minority members of the committees in the senate and house of representatives with primary jurisdiction over elections, summarizing its findings and listing recommendations on the implementation of electronic rosters statewide. The report shall include draft legislation to implement the recommendations of the task force.
Subd. 8. Sunset. The task force shall sunset the day
following submission of the report under subdivision 7, or January 31, 2014,
whichever is earlier.
Sec. 3. APPROPRIATIONS.
(a) $67,000 is appropriated from the
general fund to the secretary of state in fiscal year 2014 to implement this
article.
(b)
$21,000 is appropriated from the general fund to the Legislative Coordinating
Commission in fiscal year 2014 for the purposes of this article.
Sec. 4. EFFECTIVE
DATE.
This article is effective the day
following final enactment.
ARTICLE 5
VACANCIES IN NOMINATION
Section 1. Minnesota Statutes 2012, section 204B.13, subdivision 1, is amended to read:
Subdivision 1. Death
or withdrawal Partisan office.
(a) A vacancy in nomination may for a partisan
office must be filled in the manner provided by this section. A vacancy in nomination exists for a
partisan office when: (1) a
major political party candidate or nonpartisan candidate who was nominated
at a primary dies or files an affidavit of withdrawal as provided in section
204B.12, subdivision 2a; or (2) a candidate for a nonpartisan office, for which
one or two candidates filed, who has been nominated in accordance with
section 204D.03, subdivision 3, or 204D.10, subdivision 1:
(1) dies;
(2) withdraws as provided in section
204B.12, subdivision 1.; or
(3) withdraws by filing an affidavit of
withdrawal, as provided in paragraph (b), at least one day prior to the general
election with the same official who received the affidavit of candidacy.
(b) An affidavit of withdrawal filed
under paragraph (a), clause (3), must state that the candidate has been
diagnosed with a catastrophic illness that will permanently and continuously
incapacitate the candidate and prevent the candidate from performing the duties
of the office sought, if elected. The
affidavit must be accompanied by a certificate verifying the candidate's
illness meets the requirements of this paragraph, signed by at least two
licensed physicians. The affidavit and
certificate may be filed by the candidate or the candidate's legal guardian.
Sec. 2. Minnesota Statutes 2012, section 204B.13, subdivision 2, is amended to read:
Subd. 2. Partisan
office; nomination by party; special election. (a) A vacancy in nomination for
partisan office shall be filled as provided in this subdivision. Except as provided in subdivision 5, a
major political party has the authority
to may fill a vacancy in
nomination of that party's candidate as defined in subdivision 1, clause (1)
or (3), by filing a one nomination certificate with
the same official who received the affidavits of candidacy for that office.
(b) A major political party may
provide in its governing rules a procedure, including designation of an
appropriate committee, to fill vacancies a vacancy in nomination
for all offices elected statewide any federal or state partisan
office. The nomination certificate
shall be prepared under the direction of and executed by the chair and
secretary of the political party and filed within seven days after the
vacancy in nomination occurs or before the 14th day before the general
election, whichever is sooner. If the
vacancy in nomination occurs through the candidate's death or catastrophic
illness, the nomination certificate must be filed within seven days after the
vacancy in nomination occurs but no later than four days before the general
election the timelines established in this section. When filing the certificate the chair
and secretary when filing the certificate shall attach an affidavit
stating that the newly nominated candidate has been selected under the rules of
the party and that the individuals signing the certificate and making the
affidavit are the chair and secretary of the party.
(b) In the case of a vacancy in
nomination for partisan office that occurs on or before the 79th day before the
general election, the major political party must file the nomination
certificate no later than 71 days before the general election. The name of the candidate nominated by the
party must appear on the general election ballot.
(c) Except as provided in subdivision
5, in the case of a vacancy in nomination for a partisan office that occurs
after the 79th day before the general election, the general election ballot
shall remain unchanged, but the county and state canvassing boards must not
certify the vote totals for that office from the general election, and the
office must be filled at a special election held in accordance with this
section. Except for the vacancy in
nomination, all other candidates whose names appeared on the general election
ballot for the office must appear on the special election ballot for the office. New affidavits of candidacy or nominating
petitions may not be accepted, and there must not be a primary to fill the
vacancy in nomination. The major
political party may file a nomination certificate as provided in paragraph (a),
no later than seven days after the general election. On the date of the general election, the
county auditor or municipal clerk shall post a notice in each precinct affected
by a vacancy in nomination under this paragraph, informing voters of the reason
for the vacancy in nomination and the procedures for filling the vacancy in
nomination and conducting a special election as required by this section. The secretary of state shall prepare and
electronically distribute the notice to county auditors in each county affected
by a vacancy in nomination.
Sec. 3. Minnesota Statutes 2012, section 204B.13, is amended by adding a subdivision to read:
Subd. 2a. Partisan office; filing period. A vacancy in nomination for a partisan
office due to a withdrawal of a candidate under section 204B.12, subdivision 1,
may be filled in the manner provided in sections 204B.06, 204B.09, and 204B.11,
except that all documents and fees required by those sections must be filed
within five days after the vacancy in nomination occurs. There must be a two-day period for withdrawal
of candidates after the last day for filing.
If there is more than one candidate at
the end of the withdrawal period to fill the vacancy in nomination, the
candidates' names must appear on the primary ballot. Otherwise, the candidate's name must appear
on the general election ballot.
Sec. 4. Minnesota Statutes 2012, section 204B.13, subdivision 5, is amended to read:
Subd. 5. Candidates for governor and lieutenant governor. (a) If a vacancy in nomination for a major political party occurs in the race for governor, the political party must nominate the candidates for both governor and lieutenant governor. If a vacancy in nomination for a major political party occurs in the race for lieutenant governor,
the candidate for governor determined
under this section shall select the candidate for lieutenant governor. If a vacancy in nomination occurs in the
race for lieutenant governor, due to a vacancy in nomination for governor or
due to the withdrawal or death of the candidate for lieutenant governor, the
candidate for governor shall select the candidate for lieutenant governor as
provided in this subdivision.
(b) For a vacancy in nomination for
lieutenant governor that occurs on or before the 16th 79th
day before the general election, the name of the lieutenant governor candidate
must be submitted by the governor candidate to the filing officer within
seven days after the vacancy occurs, or before the 14th day before the general
election, whichever is sooner no later than 71 days before the general
election. If the vacancy in
nomination occurs through the death or catastrophic illness of the candidate
for lieutenant governor occurs after the 79th day before the general
election, the candidate for governor shall submit the name of the new
lieutenant governor candidate to the secretary of state within seven days after
the vacancy in nomination occurs but no later than four days before the
general election. If the vacancy in
nomination occurs through the death or catastrophic illness of the candidate
for governor, the new candidate for governor shall submit the name of the
lieutenant governor candidate within seven days after the vacancy in nomination
for governor is filled under section 204B.13, subdivision 2, but no later than
four days before the general election. occurs, but no changes may be
made to the general election ballots.
(c) When a vacancy in nomination for
lieutenant governor occurs after the 79th day before the general election, the
county auditor or municipal clerk shall post a notice in each precinct affected
by the vacancy in nomination. The
secretary of state shall prepare and electronically distribute the notice to
county auditors. The county auditor must
ensure that each precinct in the county receives the notice prior to the
opening of the polls on election day. The
notice must include:
(1) a statement that there is a vacancy
in nomination for lieutenant governor and the statutory reason for the vacancy
in nomination as provided in subdivision 1, paragraph (a), clauses (1) and (3);
(2) a statement that the results for the governor and lieutenant governor will be counted and that no special election will be held for that race; and
(3) a list of all candidates in the
governor and lieutenant governor's race, listed in order of the base rotation. The listing of candidates shall include the
name of the candidate to fill the vacancy in nomination for lieutenant governor. If the name of the candidate has not yet been
named, then the list must include the date by which the candidate will be
named.
Sec. 5. Minnesota Statutes 2012, section 204B.13, is amended by adding a subdivision to read:
Subd. 7. Date
of special election. If a
special election is required under this section, the governor shall issue a
writ calling for a special election to be conducted on the second Tuesday in
February of the year following the year the vacancy in nomination occurred. Except where otherwise provided in this
section, the writ shall be issued and the special election conducted according
to the requirements of sections 204D.22 to 204D.27.
Sec. 6. Minnesota Statutes 2012, section 204B.13, is amended by adding a subdivision to read:
Subd. 8. Absentee
voters. At least 46 days, but
no more than 50 days, before a special election conducted under this section,
the county auditor shall transmit an absentee ballot for the special election
to each applicant for an absentee ballot whose application for an absentee
ballot for the preceding general election was recorded under section 203B.04 or
203B.17. New applicants for an absentee
ballot may be provided a ballot in the manner specified in chapter 203B.
Sec. 7. Minnesota Statutes 2012, section 204B.13, is amended by adding a subdivision to read:
Subd. 9. Appropriation. In the case of a statewide special
election under this section, the amount necessary is appropriated to the
secretary of state to cover costs incurred by the state, county, and municipal
governments to conduct the special election.
Sec. 8. [204B.131]
VACANCY IN NOMINATION; NONPARTISAN OFFICE.
Subdivision 1. Applicability. A vacancy in nomination for a
nonpartisan office must be filled in the manner provided by this section. A vacancy in nomination for a nonpartisan
office exists when:
(1) a candidate for any nonpartisan
office, for which one or two candidates filed, withdraws as provided in section
204B.12, subdivision 1; or
(2) a candidate for any nonjudicial
nonpartisan office, for which only one or two candidates filed or who was
nominated at a primary, dies on or before the 79th day before the date of the
general election.
Subd. 2. Procedure for filling vacancy. A vacancy in nomination for a nonpartisan office may be filled by filing an affidavit of candidacy and paying a filing fee, or by filing an affidavit of candidacy and filing a petition in place of a filing fee, in the manner provided in sections 204B.06, 204B.09, and 204B.11. All documents and fees required by this subdivision must be filed within five days after the vacancy in nomination occurs. There must be a two-day period for withdrawal of candidates after the last day for filing.
If the vacancy in nomination resulted
from a withdrawal during the withdrawal period held on the 68th to 69th day
before the primary, and if, at the end of the withdrawal period to fill the
vacancy in nomination, there are more than two candidates, the candidates'
names must appear on the primary ballot.
In all other cases, the candidates' names must appear on the general
election ballot.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2012, section 204D.19, is amended by adding a subdivision to read:
Subd. 6. Writ
when vacancy results from vacancy in nomination. If a vacancy in office is due to a
vacancy in nomination under section 204B.13, the governor shall issue a writ in
the manner provided in that section.
Sec. 10. REPEALER.
(a) Minnesota Statutes 2012, sections
204B.12, subdivision 2a; and 204B.13, subdivision 6, are repealed.
(b) Minnesota Statutes 2012, section
204B.13, subdivision 4, is repealed.
Sec. 11. EFFECTIVE
DATE.
This article is effective the day following final enactment and applies to vacancies in nomination occurring on or after that date."
Delete the title and insert:
"A bill for an act relating to elections; making policy, technical, and clarifying changes to various provisions related to election law, including provisions related to absentee voting, redistricting, ballots, registration, voting, caucuses, candidates, recounts, campaigns, voting rights, voting data, vacancies in nomination, and election
administration; providing an electronic roster pilot project and task force; requiring reports; appropriating money; amending Minnesota Statutes 2012, sections 5B.06; 13.851, subdivision 10; 103C.225, subdivision 3; 103C.305, subdivision 3; 103C.311, subdivision 2; 123A.48, subdivision 14; 201.061, subdivision 3; 201.071, subdivision 2; 201.091, subdivision 8; 201.12, subdivision 3; 201.13, subdivision 1a; 201.14; 201.157; 201.275; 202A.14, subdivision 1; 203B.02, subdivision 1; 203B.04, subdivisions 1, 5; 203B.05, subdivision 1; 203B.06, subdivisions 1, 3; 203B.08, subdivision 3; 203B.081; 203B.121, subdivisions 1, 2, 3, 4, 5; 203B.227; 203B.28; 204B.04, by adding a subdivision; 204B.13, subdivisions 1, 2, 5, by adding subdivisions; 204B.18, subdivision 2; 204B.22, subdivision 1; 204B.28, subdivision 1; 204B.32, subdivision 1; 204B.33; 204B.35, subdivision 4; 204B.36, subdivision 1; 204B.45, subdivisions 1, 2; 204B.46; 204C.14; 204C.15, subdivision 1; 204C.19, subdivision 2; 204C.25; 204C.27; 204C.35, subdivision 1, by adding a subdivision; 204C.36, subdivision 1; 204D.08, subdivision 6; 204D.09, subdivision 2; 204D.11, subdivisions 1, 4, 5, 6; 204D.13, subdivision 3; 204D.14, subdivisions 1, 3; 204D.15, subdivision 3; 204D.16; 204D.165; 204D.19, subdivision 2, by adding a subdivision; 205.02, subdivision 2; 205.10, subdivision 3; 205.13, subdivision 1a; 205.16, subdivisions 4, 5; 205.17, subdivisions 1, 3; 205A.04, by adding a subdivision; 205A.05, subdivisions 1, 2; 205A.07, subdivisions 3, 3a, 3b; 205A.08, subdivision 1; 206.57, by adding a subdivision; 206.61, subdivision 4; 206.89, subdivision 2, by adding a subdivision; 206.90, subdivision 6; 208.04, subdivisions 1, 2; 211B.045; 211B.37; 241.065, subdivision 2; 340A.416, subdivisions 2, 3; 340A.602; 375.20; 447.32, subdivisions 2, 3, 4; Laws 1963, chapter 276, section 2, subdivision 2, as amended; proposing coding for new law in Minnesota Statutes, chapters 2; 204B; repealing Minnesota Statutes 2012, sections 2.444; 2.484; 203B.04, subdivision 6; 204B.12, subdivision 2a; 204B.13, subdivisions 4, 6; 204B.22, subdivision 2; 204B.42; 204D.11, subdivisions 2, 3; 205.17, subdivisions 2, 4; 205A.08, subdivision 4."
We request the adoption of this report and repassage of the bill.
House Conferees: Steve Simon, Laurie Halverson and Tim Sanders.
Senate Conferees: Katie Sieben, Scott J. Newman and Kent Eken.
Simon moved that the report of the
Conference Committee on H. F. No. 894 be adopted and that the
bill be repassed as amended by the Conference Committee.
A roll call was requested and properly
seconded.
The Speaker called Hortman to the Chair.
The question was taken on the Simon motion
and the roll was called. There were 118
yeas and 14 nays as follows:
Those who voted in the affirmative were:
Abeler
Albright
Allen
Anderson, P.
Anzelc
Atkins
Beard
Benson, J.
Benson, M.
Bernardy
Bly
Brynaert
Carlson
Clark
Cornish
Daudt
Davids
Davnie
Dean, M.
Dettmer
Dill
Dorholt
Drazkowski
Erhardt
Erickson, R.
Fabian
Falk
Faust
Fischer
Franson
Freiberg
Fritz
Green
Gunther
Hackbarth
Halverson
Hamilton
Hansen
Hausman
Hertaus
Hilstrom
Holberg
Hoppe
Hornstein
Hortman
Huntley
Isaacson
Johnson, B.
Johnson, C.
Johnson, S.
Kahn
Kelly
Kiel
Kresha
Laine
Leidiger
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Loon
Mack
Mahoney
Mariani
Marquart
Masin
McNamar
McNamara
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Myhra
Nelson
Newberger
Newton
Nornes
Norton
O'Driscoll
Paymar
Pelowski
Peppin
Persell
Petersburg
Poppe
Pugh
Radinovich
Rosenthal
Runbeck
Sanders
Savick
Sawatzky
Schoen
Schomacker
Scott
Selcer
Simon
Simonson
Slocum
Sundin
Theis
Torkelson
Uglem
Urdahl
Wagenius
Ward, J.A.
Ward, J.E.
Wills
Winkler
Yarusso
Zellers
Zerwas
Spk. Thissen
Those who voted in the negative were:
Anderson, M.
Anderson, S.
Barrett
Dehn, R.
Erickson, S.
FitzSimmons
Garofalo
Gruenhagen
Howe
Kieffer
O'Neill
Quam
Swedzinski
Woodard
The motion prevailed.
H. F. No. 894, as amended by Conference,
was read for the third time.
The
Speaker resumed the Chair.
LAY ON THE
TABLE
Daudt moved that the Conference Committee
Report on H. F. No. 894 be laid on the table. The motion prevailed and the Conference
Committee Report on H. F. No. 894 was laid on the table.
CALENDAR FOR THE
DAY, Continued
S. F. No. 460 was reported
to the House.
LAY ON THE
TABLE
Moran moved that
S. F. No. 460 be laid on the table. The motion prevailed and
S. F. No. 460 was laid on the table.
The Speaker called Hortman to the Chair.
The following Conference Committee Report
was received:
CONFERENCE COMMITTEE REPORT ON H. F. NO. 677
A bill for an act relating to financing of state and local government; making changes to individual income, corporate franchise, property, sales and use, estate, mineral, liquor, tobacco, aggregate materials, local, and other taxes and tax-related provisions; restoring the school district current year aid payment shift percentage to 90;
conforming to federal section 179 expensing allowances; imposing an income surcharge; allowing an up-front exemption for capital equipment; modifying the definition of income for the property tax refund; decreasing the threshold percentage for the homestead credit refund for homeowners and the property tax refund for renters; increasing the maximum refunds for renters; changing property tax aids and credits; imposing an insurance surcharge; modifying pension aids; providing pension funding; changing provisions of the Sustainable Forest Incentive Act; modifying definitions for property taxes; providing exemptions; creating joint entertainment facilities coordination; imposing a sports memorabilia gross receipts tax; changing tax rates on tobacco and liquor; providing reimbursement for certain property tax abatement; modifying the small business investment tax credit; expanding the definition of domestic corporation to include foreign corporations incorporated in or doing business in tax havens; making changes to additions and subtractions from federal taxable income; changing rates for individuals, estates, and trusts; providing for charitable contributions and veterans jobs tax credits; modifying estate tax exclusions for qualifying small business and farm property; imposing a gift tax; expanding the sales tax to include suite and box seat rentals; modifying the definition of sales and purchase; changing the tax rate and modifying provisions for the rental motor vehicle tax; modifying nexus provisions; providing for multiple points of use certificates; modifying exemptions; authorizing local sales taxes; authorizing economic development powers; providing authority, organization, powers, and duties for development of a Destination Medical Center; authorizing state infrastructure aid; imposing a tax on extraction and processing of fracturing sand; providing a taconite production tax grant for water supply improvements; authorizing taconite production tax bonds for grants to school districts; modifying and providing provisions for public finance; modifying the definition of market value for tax, debt, and other purposes; requiring labor peace agreements on certain qualifying projects; making conforming, policy, and technical changes to tax provisions; requiring studies and reports; appropriating money; amending Minnesota Statutes 2012, sections 16A.152, subdivision 2; 16A.46; 38.18; 40A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, 8, by adding a subdivision; 88.51, subdivision 3; 103B.102, subdivision 3; 103B.245, subdivision 3; 103B.251, subdivision 8; 103B.335; 103B.3369, subdivision 5; 103B.635, subdivision 2; 103B.691, subdivision 2; 103C.501, subdivision 4; 103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1; 116J.8737, subdivisions 1, 2, 8; 117.025, subdivision 7; 118A.04, subdivision 3; 118A.05, subdivision 5; 123A.455, subdivision 1; 123B.75, subdivision 5; 126C.48, subdivision 8; 127A.45, subdivision 2; 127A.48, subdivision 1; 138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, subdivision 3; 163.051; 163.06, subdivision 6; 165.10, subdivision 1; 168.012, subdivision 9, by adding a subdivision; 216C.436, subdivision 7; 237.52, subdivision 3, by adding a subdivision; 270.077; 270.41, subdivision 5; 270B.01, subdivision 8; 270B.12, subdivision 4; 270C.34, subdivision 1; 270C.38, subdivision 1; 270C.42, subdivision 2; 270C.56, subdivision 1; 271.06, by adding a subdivision; 272.01, subdivision 2; 272.02, subdivisions 39, 97, by adding subdivisions; 272.03, subdivision 9, by adding subdivisions; 273.032; 273.11, subdivision 1, by adding a subdivision; 273.114, subdivision 6; 273.124, subdivisions 3a, 13; 273.13, subdivisions 21b, 23, 25; 273.1398, subdivisions 3, 4; 273.19, subdivision 1; 273.372, subdivision 4; 273.39; 275.011, subdivision 1; 275.077, subdivision 2; 275.71, subdivision 4; 276.04, subdivision 2; 276A.01, subdivisions 10, 12, 13, 15; 276A.06, subdivision 10; 279.01, subdivision 1, by adding a subdivision; 279.02; 279.06, subdivision 1; 287.05, by adding a subdivision; 287.08; 287.20, by adding a subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.02, subdivision 7; 289A.08, subdivisions 1, 3, 7; 289A.10, subdivision 1, by adding a subdivision; 289A.12, subdivision 14, by adding a subdivision; 289A.18, by adding a subdivision; 289A.20, subdivisions 3, 4, by adding a subdivision; 289A.26, subdivisions 3, 4, 7, 9; 289A.55, subdivision 9; 289A.60, subdivision 4; 290.01, subdivisions 5, 19, as amended, 19a, 19b, 19c, 19d, 31, as amended, by adding subdivisions; 290.06, subdivisions 2c, 2d, by adding subdivisions; 290.067, subdivisions 1, 2a; 290.0671, subdivision 1; 290.0675, subdivision 1; 290.0677, subdivision 2; 290.068, subdivisions 3, 6a; 290.0681, subdivisions 1, 3, 4, 5; 290.091, subdivision 2; 290.0921, subdivision 3; 290.0922, subdivision 1; 290.17, subdivision 4; 290.21, subdivision 4; 290.9705, subdivision 1; 290A.03, subdivisions 3, 15, as amended; 290A.04, subdivisions 2, 2a, 4; 290B.04, subdivision 2; 290C.02, subdivision 6; 290C.05; 290C.07; 291.005, subdivision 1; 291.03, subdivisions 1, 8, 9, 10, 11, by adding a subdivision; 296A.01, subdivision 19, by adding a subdivision; 296A.22, subdivisions 1, 3; 297A.61, subdivisions 3, 4, by adding a subdivision; 297A.64, subdivisions 1, 2; 297A.66, by adding a subdivision; 297A.665; 297A.668, by adding a subdivision; 297A.67, subdivision 7; 297A.68, subdivision 5; 297A.70, subdivisions 4, 8, by adding subdivisions; 297A.71, by adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.815, subdivision 3; 297A.993, subdivisions 1, 2; 297B.11; 297E.021, subdivision 2; 297E.14, subdivision 7; 297F.01, subdivisions 3, 19, 23, by adding a subdivision; 297F.05, subdivisions 1, 3, 4, by adding a subdivision; 297F.09, subdivision 9; 297F.18, subdivision 7; 297F.24, subdivision 1; 297F.25, subdivision 1; 297G.03, subdivision 1, by adding a subdivision; 297G.04; 297G.09, subdivision 8; 297G.17, subdivision 7; 297I.05, subdivisions 7, 11, 12; 297I.30, subdivisions 1, 2; 297I.80, subdivision 1; 298.01, subdivisions 3, 3b, 4; 298.018; 298.227, as amended; 298.24, subdivision 1; 298.28, subdivisions 4, 6, 10; 298.75, subdivision 2; 325D.32,
subdivision 2; 353G.08, subdivision 2; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01, subdivision 23; 368.47; 370.01; 373.01, subdivisions 1, 3; 373.40, subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18, subdivision 3; 375.555; 383B.152; 383B.245; 383B.73, subdivision 1; 383D.41, by adding a subdivision; 383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05, subdivision 3; 403.02, subdivision 21, by adding subdivisions; 403.06, subdivision 1a; 403.11, subdivision 1, by adding a subdivision; 410.32; 412.221, subdivision 2; 412.301; 428A.02, subdivision 1; 430.102, subdivision 2; 447.10; 450.19; 450.25; 458A.10; 458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034, subdivision 2; 469.053, subdivisions 4, 4a, 6; 469.071, subdivision 5; 469.107, subdivision 1; 469.169, by adding a subdivision; 469.176, subdivisions 4c, 4g, 6; 469.177, by adding a subdivision; 469.180, subdivision 2; 469.187; 469.190, subdivision 7, by adding a subdivision; 469.206; 469.319, subdivision 4; 469.340, subdivision 4; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325, subdivision 2; 473.39, by adding a subdivision; 473.629; 473.661, subdivision 3; 473.667, subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, 14, 15, 23; 473F.08, subdivision 10, by adding a subdivision; 474A.04, subdivision 1a; 474A.062; 474A.091, subdivision 3a; 475.521, subdivisions 1, 2, 4; 475.53, subdivisions 1, 3, 4; 475.58, subdivisions 2, 3b; 475.73, subdivision 1; 477A.011, subdivisions 20, 30, 32, 34, 42, by adding subdivisions; 477A.0124, subdivision 2; 477A.013, subdivisions 8, 9, by adding a subdivision; 477A.015; 477A.03, subdivisions 2a, 2b, by adding a subdivision; 641.23; 641.24; 645.44, by adding a subdivision; Laws 1971, chapter 773, section 1, subdivision 2, as amended; Laws 1988, chapter 645, section 3, as amended; Laws 1993, chapter 375, article 9, section 46, subdivisions 2, as amended, 5, as amended; Laws 1998, chapter 389, article 8, section 43, subdivisions 1, 3, as amended, 5, as amended; Laws 1999, chapter 243, article 6, section 11; Laws 2002, chapter 377, article 3, section 25, as amended; Laws 2005, First Special Session chapter 3, article 5, section 37, subdivisions 2, 4; Laws 2008, chapter 366, article 5, sections 26; 33; 34, as amended; article 7, section 19, subdivision 3, as amended; Laws 2010, chapter 216, section 55; Laws 2010, chapter 389, article 1, section 12; article 5, section 6, subdivisions 4, 6; Laws 2010, First Special Session chapter 1, article 13, section 4, subdivision 1, as amended; proposing coding for new law in Minnesota Statutes, chapters 116C; 287; 290; 290A; 292; 295; 297I; 403; 435; 469; proposing coding for new law as Minnesota Statutes, chapter 297J; repealing Minnesota Statutes 2012, sections 16A.725; 256.9658; 272.69; 273.11, subdivisions 1a, 22; 276A.01, subdivision 11; 289A.60, subdivision 31; 290.01, subdivision 6b; 290.06, subdivision 22a; 290.0672; 290.0921, subdivision 7; 383A.80, subdivision 4; 383B.80, subdivision 4; 428A.101; 428A.21; 473F.02, subdivision 13; 477A.011, subdivisions 2a, 19, 21, 29, 31, 32, 33, 36, 39, 40, 41, 42; 477A.013, subdivisions 11, 12; 477A.0133; 477A.0134; Laws 2006, chapter 259, article 11, section 3, as amended; Laws 2009, chapter 88, article 4, section 23, as amended.
May 19, 2013
The Honorable Paul Thissen
Speaker of the House of Representatives
The Honorable Sandra L. Pappas
President of the Senate
We, the undersigned conferees for H. F. No. 677 report that we have agreed upon the items in dispute and recommend as follows:
That the Senate recede from its amendments and that H. F. No. 677 be further amended as follows:
Delete everything after the enacting clause and insert:
"ARTICLE 1
HOMESTEAD CREDIT REFUND AND RENTER PROPERTY TAX REFUND
Section 1. Minnesota Statutes 2012, section 290A.03, subdivision 3, is amended to read:
Subd. 3. Income. (1) "Income" means the sum of the following:
(a) federal adjusted gross income as defined in the Internal Revenue Code; and
(b) the sum of the following amounts to the extent not included in clause (a):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a solvent individual excluded from gross income under section 108(g) of the Internal Revenue Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received under the federal Social Security Act, Supplemental Security Income, and veterans benefits), which was not exclusively funded by the claimant or spouse, or which was funded exclusively by the claimant or spouse and which funding payments were excluded from federal adjusted gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick pay as a result of accident, sickness, or other disability, whether funded through insurance or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including a qualified voluntary employee contribution; simplified employee pension plan; self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for the claimant and spouse;
(xii) to the extent not included in
federal adjusted gross income, distributions received by the claimant or spouse
from a traditional or Roth style retirement account or plan;
(xiii) nontaxable scholarship or fellowship grants;
(xiii) (xiv) the amount of
deduction allowed under section 199 of the Internal Revenue Code;
(xiv) (xv) the amount of
deduction allowed under section 220 or 223 of the Internal Revenue Code;
(xv) (xvi) the amount of
deducted for tuition expenses required to be added to income under
section 290.01, subdivision 19a, clause (12); under section 222 of the
Internal Revenue Code; and
(xvi) (xvii) the amount
deducted for certain expenses of elementary and secondary school teachers under
section 62(a)(2)(D) of the Internal Revenue Code; and.
(xvii) unemployment
compensation.
In the case of an individual who files an income tax return on a fiscal year basis, the term "federal adjusted gross income" shall mean federal adjusted gross income reflected in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced by the amount of a net operating loss carryback or carryforward or a capital loss carryback or carryforward allowed for the year.
(2) "Income" does not include:
(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(b) amounts of any pension or annuity which was exclusively funded by the claimant or spouse and which funding payments were not excluded from federal adjusted gross income in the years when the payments were made;
(c) to the extent included in federal adjusted
gross income, amounts contributed by the claimant or spouse to a traditional or
Roth style retirement account or plan, but not to exceed the retirement base
amount reduced by the amount of contributions excluded from federal adjusted
gross income, but not less than zero;
(d) surplus food or other relief in kind supplied by a governmental agency;
(d) (e) relief granted under
this chapter;
(e) (f) child support payments
received under a temporary or final decree of dissolution or legal separation;
or
(f) (g) restitution payments
received by eligible individuals and excludable interest as defined in section
803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, Public
Law 107-16.
(3) The sum of the following amounts may be subtracted from income:
(a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(e) for the claimant's fifth dependent, the exemption amount; and
(f) if the claimant or claimant's spouse was disabled or attained the age of 65 on or before December 31 of the year for which the taxes were levied or rent paid, the exemption amount.
For purposes of this subdivision, the "exemption amount" means the exemption amount under section 151(d) of the Internal Revenue Code for the taxable year for which the income is reported; "retirement base amount" means the deductible amount for the taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for inflation as provided in section 219(b)(5)(D) of the Internal Revenue Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional or Roth style retirement account or plan" means retirement plans under sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective beginning with refunds based on property taxes payable in 2014 and
rent paid in 2013.
Sec. 2. Minnesota Statutes 2012, section 290A.04, subdivision 2, is amended to read:
Subd. 2. Homeowners; homestead credit refund. A claimant whose property taxes payable are in excess of the percentage of the household income stated below shall pay an amount equal to the percent of income shown for the appropriate household income level along with the percent to be paid by the claimant of the remaining amount of property taxes payable. The state refund equals the amount of property taxes payable that remain, up to the state refund amount shown below.
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The payment made to a claimant shall be the
amount of the state refund calculated under this subdivision. No payment is allowed if the claimant's
household income is $100,780 $105,500 or more.
EFFECTIVE
DATE. This section is
effective for refund claims based on taxes payable in 2014 and thereafter.
Sec. 3. Minnesota Statutes 2012, section 290A.04, subdivision 2a, is amended to read:
Subd. 2a. Renters. A claimant whose rent constituting property taxes exceeds the percentage of the household income stated below must pay an amount equal to the percent of income shown for the appropriate household income level along with the percent to be paid by the claimant of the remaining amount of rent constituting property taxes. The state refund equals the amount of rent constituting property taxes that remain, up to the maximum state refund amount shown below.
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$0
to 4,909 |
1.0
percent |
5 percent |
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$2,000
|
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4,910
to 6,529 |
1.0
percent |
10
percent |
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$2,000
|
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6,530
to 8,159 |
1.1
percent |
10
percent |
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$1,950
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8,160
to 11,439 |
1.2
percent |
10
percent |
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$1,900
|
|
11,440
to 14,709 |
1.3
percent |
15
percent |
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$1,850
|
|
14,710
to 16,339 |
1.4
percent |
15
percent |
|
$1,800
|
|
16,340
to 17,959 |
1.4
percent |
20
percent |
|
$1,750
|
|
17,960
to 21,239 |
1.5
percent |
20
percent |
|
$1,700
|
|
21,240
to 22,869 |
1.6
percent |
20
percent |
|
$1,650
|
|
22,870
to 24,499 |
1.7
percent |
25
percent |
|
$1,650
|
|
24,500
to 27,779 |
1.8
percent |
25
percent |
|
$1,650
|
|
27,780
to 29,399 |
1.9
percent |
30
percent |
|
$1,650
|
|
29,400
to 34,299 |
2.0
percent |
30
percent |
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$1,650
|
|
34,300
to 39,199 |
2.0
percent |
35
percent |
|
$1,650
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|
39,200
to 45,739 |
2.0
percent |
40
percent |
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$1,650
|
|
45,740
to 47,369 |
2.0
percent |
45
percent |
|
$1,500
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|
47,370
to 49,009 |
2.0
percent |
45
percent |
|
$1,350
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|
49,010
to 50,649 |
2.0
percent |
45
percent |
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$1,150
|
|
50,650
to 52,269 |
2.0
percent |
50
percent |
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$1,000
|
|
52,270
to 53,909 |
2.0
percent |
50
percent |
|
$900
|
|
53,910
to 55,539 |
2.0
percent |
50
percent |
|
$500
|
|
55,540
to 57,169 |
2.0
percent |
50
percent |
|
$200
|
The payment made to a claimant is the amount
of the state refund calculated under this subdivision. No payment is allowed if the claimant's
household income is $41,820 $57,170 or more.
EFFECTIVE
DATE. This section is
effective for claims based on rent paid in 2013 and following years.
Sec. 4. Minnesota Statutes 2012, section 290A.04, subdivision 4, is amended to read:
Subd. 4. Inflation adjustment. (a) Beginning for property tax refunds payable in calendar year 2002, the commissioner shall annually adjust the dollar amounts of the income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation. The commissioner shall make the inflation adjustments in accordance with section 1(f) of the Internal Revenue Code, except that for purposes of this subdivision the percentage increase shall be determined as provided in this subdivision.
(b) In adjusting the dollar amounts of the
income thresholds and the maximum refunds under subdivision 2 for inflation,
the percentage increase shall be determined from the year ending on June 30, 2011
2013, to the year ending on June 30 of the year preceding that in which
the refund is payable.
(c) In adjusting the dollar
amounts of the income thresholds and the maximum refunds under subdivision 2a
for inflation, the percentage increase shall be determined from the year ending
on June 30, 2000 2013, to the year ending on June 30 of the year
preceding that in which the refund is payable.
(d) The commissioner shall use the appropriate percentage increase to annually adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for inflation without regard to whether or not the income tax brackets are adjusted for inflation in that year. The commissioner shall round the thresholds and the maximum amounts, as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall round it up to the next $10 amount.
(e) The commissioner shall annually announce the adjusted refund schedule at the same time provided under section 290.06. The determination of the commissioner under this subdivision is not a rule under the Administrative Procedure Act.
EFFECTIVE
DATE. This section is
effective for refund claims based on taxes payable in 2014 and rent paid in
2013 and following years.
Sec. 5. [290A.28]
NOTIFICATION OF POTENTIAL ELIGIBILITY.
Subdivision 1. Notification
of eligibility. (a) By
September 1, 2014, the commissioner shall notify, in writing or electronically,
individual homeowners whom the commissioner determines may be eligible for a
homestead credit refund under this chapter for that property taxes payable year
as provided in this section. In
determining whether to notify a homeowner, the commissioner shall consider the
property tax information available to the commissioner under paragraph (b) for
the homeowner and must estimate the homeowner's household income using the most
recent income information available to the commissioner from filing under this
chapter for the prior year, under chapter 290 for the current or prior year, and
any other income information available to the commissioner. For each homeowner, the commissioner must
estimate the homestead credit refund amount under the schedule in section
290A.04, subdivision 2, using the homeowner's property tax amount and estimated
household income. If the estimated
homestead credit refund is at least $1,000, the commissioner must notify the
homeowner of potential eligibility for the homestead credit refund. The notification must include information on
how to file for the homestead credit refund.
The notification requirement under this section does not apply to a
homeowner who has already filed for the homestead credit refund for the current
or prior year.
(b)
By May 15, 2014, each county auditor shall transmit to the commissioner of
revenue the following information for each property classified as a residential
or agricultural homestead under section 273.13, subdivision 22 or 23:
(1) the property taxes payable;
(2) the name and address of the owner;
(3) the Social Security number or numbers
of the owners; and
(4) any other information the
commissioner deems necessary or useful to carry out the provisions of this
section.
The information must be provided in the form and manner
prescribed by the commissioner.
Subd. 2. Reports. (a) By March 15, 2015, the
commissioner must provide a written report to the chairs and ranking minority
members of the legislative committees with jurisdiction over taxes, in
compliance with sections 3.195 and 3.197.
The report must provide information on the number and dollar amount of
homeowner property tax refund claims based on taxes payable in 2014, including:
(1) the number and dollar
amount of claims projected for homestead credit refunds based on taxes payable
in 2014 prior to enactment of the notification requirement in this section;
(2) the number of notifications issued as
provided in this section, including the number issued by county;
(3) preliminary information on the number
and dollar amount of claims for homestead credit refunds based on taxes payable
in 2014; and
(4) a description of any outreach efforts
undertaken by the commissioner for homestead credit refunds based on taxes
payable in 2014, in addition to the notification required in this section.
(b) By February 1, 2016, the commissioner
must provide a written report to the chairs and ranking minority members of the
legislative committees with jurisdiction over taxes, in compliance with
sections 3.195 and 3.197. The report
must include the information required in paragraph (a) and must also include
final information on the number and dollar amount of claims for homestead
credit refunds based on taxes payable in 2014.
EFFECTIVE
DATE. This section is
effective for refund claims based on property taxes payable in 2014.
ARTICLE 2
PROPERTY TAX AIDS AND CREDITS
Section 1. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:
Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989, class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property is located in a border city that has an enterprise zone, as defined in section 469.166; (2) the property is located in a city with a population greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city in the other state has a population of greater than 5,000 and less than 75,000 according to the 1980 decennial census.
(b) The credit is an amount sufficient to
reduce (i) the taxes levied on class 4a property to 2.3 1.9
percent of the property's market value and (ii) the tax on class 3a property to
2.3 1.9 percent of market value.
(c) The county auditor shall annually certify the costs of the credits to the Department of Revenue. The department shall reimburse local governments for the property taxes forgone as the result of the credits in proportion to their total levies.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2014.
Sec. 2. Minnesota Statutes 2012, section 290C.02, subdivision 6, is amended to read:
Subd. 6. Forest
land. "Forest land" means
land containing a minimum of 20 contiguous acres for which the owner has
implemented a forest management plan that was prepared or updated within the
past ten years by an approved plan writer.
For purposes of this subdivision, acres are considered to be contiguous
even if they are separated by a road, waterway, railroad track, or other
similar intervening property. At least
50 percent of the contiguous acreage must meet the definition of forest land in
section 88.01, subdivision 7. For the
purposes of sections 290C.01 to 290C.11, forest land does not include (i) land
used for residential or agricultural purposes, (ii) land enrolled in the
reinvest in Minnesota program, a state or federal conservation reserve or
easement reserve program under sections 103F.501 to 103F.531, the Minnesota
agricultural property tax law under section 273.111, or land subject to
agricultural land preservation controls or restrictions as defined in section
40A.02 or under the Metropolitan Agricultural Preserves Act under chapter 473H,
or (iii) land exceeding 60,000 acres that is subject to a
single conservation easement funded under section 97A.056 or a comparable permanent easement conveyed to a governmental or nonprofit entity; (iv) any land that becomes subject to a conservation easement funded under section 97A.056 or a comparable permanent easement conveyed to a governmental or nonprofit entity after May 30, 2013; or (v) land improved with a structure, pavement, sewer, campsite, or any road, other than a township road, used for purposes not prescribed in the forest management plan.
EFFECTIVE
DATE. This section is
effective for certifications and applications due in 2013 and thereafter.
Sec. 3. Minnesota Statutes 2012, section 290C.03, is amended to read:
290C.03
ELIGIBILITY REQUIREMENTS.
(a) Land may be enrolled in the sustainable forest incentive program under this chapter if all of the following conditions are met:
(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment;
(2) a forest management plan for the land must be prepared by an approved plan writer and implemented during the period in which the land is enrolled;
(3) timber harvesting and forest management guidelines must be used in conjunction with any timber harvesting or forest management activities conducted on the land during the period in which the land is enrolled;
(4) the land must be enrolled for a minimum of eight years;
(5) there are no delinquent property taxes on the land; and
(6) claimants enrolling more than 1,920 acres in the sustainable forest incentive program must allow year-round, nonmotorized access to fish and wildlife resources and motorized access on established and maintained roads and trails, unless the road or trail is temporarily closed for safety, natural resource, or road damage reasons on enrolled land except within one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined by the commissioner of natural resources.
(b) Claimants required to allow access under paragraph (a), clause (6), do not by that action:
(1) extend any assurance that the land is safe for any purpose;
(2) confer upon the person the legal status of an invitee or licensee to whom a duty of care is owed; or
(3) assume responsibility for or incur liability for any injury to the person or property caused by an act or omission of the person.
EFFECTIVE
DATE. This section is
effective for calculations made in 2013 and thereafter.
Sec. 4. Minnesota Statutes 2012, section 290C.055, is amended to read:
290C.055
LENGTH OF COVENANT.
(a) The covenant remains in effect for a minimum of eight years. If land is removed from the program before it has been enrolled for four years, the covenant remains in effect for eight years from the date recorded.
(b) If land that has been enrolled for four years or more is removed from the program for any reason, there is a waiting period before the covenant terminates. The covenant terminates on January 1 of the fifth calendar year that begins after the date that:
(1) the commissioner receives notification from the claimant that the claimant wishes to remove the land from the program under section 290C.10; or
(2) the date that the land is removed from the program under section 290C.11.
(c) Notwithstanding the other
provisions of this section, the covenant is terminated:
(1) at the same time that the land
is removed from the program due to acquisition of title or possession for a
public purpose under section 290C.10; or
(2) at the request of the claimant after a reduction in payments due to changes in the payment formula under section 290C.07.
EFFECTIVE
DATE. This section is
effective for calculations made in 2013 and thereafter.
Sec. 5. Minnesota Statutes 2012, section 290C.07, is amended to read:
290C.07
CALCULATION OF INCENTIVE PAYMENT.
(a) An approved claimant under the
sustainable forest incentive program is eligible to receive an annual payment. The payment shall equal $7 per acre for each
acre enrolled in the sustainable forest incentive program.
(b) The annual payment for each Social
Security number or state or federal business tax identification number must not
exceed $100,000.
EFFECTIVE
DATE. This section is
effective for calculations made in 2013 and thereafter.
Sec. 6. [423A.022]
POLICE AND FIREFIGHTER RETIREMENT SUPPLEMENTAL STATE AID.
Subdivision 1. Supplemental
state aid. Annually, the
commissioner of revenue shall allocate police and firefighter retirement
supplemental state aid appropriated under subdivision 6 as provided in
subdivision 2 and paid as provided in subdivision 4.
Subd. 2. Allocation. Of the total amount appropriated as
supplemental state aid:
(1) 58.065 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 paid to
municipalities other than municipalities solely employing firefighters with
retirement coverage provided by the public employees police and fire retirement
plan which qualified to receive fire state aid in that calendar year, allocated
in proportion to the most recent amount of fire state aid paid under section
69.021, subdivision 7, for the municipality bears to the most recent total fire
state aid for all municipalities other than the municipalities solely employing
firefighters with retirement coverage provided by the public employees police
and fire retirement plan paid under section 69.021, subdivision 7, with the
allocated amount for fire departments participating in the voluntary statewide
lump-sum volunteer firefighter retirement plan paid to the executive director
of the Public Employees Retirement Association for deposit in the fund
established by section 353G.02, subdivision 3, and credited to the respective
account and with the balance paid to the treasurer of each municipality for
transmittal within 30 days of receipt to the treasurer of the applicable
volunteer firefighter relief association for deposit in its special fund; 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.
Subd. 3. Reporting;
definitions. (a) On or before
September 1, annually, the executive director of the Public Employees
Retirement Association shall report to the commissioner of revenue the
following:
(1) the municipalities which employ
firefighters with retirement coverage by the public employees police and fire
retirement plan;
(2) the number of firefighters with public
employees police and fire retirement plan coverage employed by each
municipality;
(3) the fire departments covered by the
voluntary statewide lump-sum volunteer firefighter retirement plan; and
(4) any other information requested by the
commissioner to administer the police and firefighter retirement supplemental
state aid program.
(b) For this subdivision, (i) the number
of firefighters employed by a municipality who have public employees police and
fire retirement plan coverage means the number of firefighters with public
employees police and fire retirement plan coverage that were employed by the
municipality for not less than 30 hours per week for a minimum of six months prior
to December 31 preceding the date of the payment under this section and, if the
person was employed for less than the full year, prorated to the number of full
months employed; and (ii) the number of active police officers certified for
police state aid receipt under section 69.011, subdivisions 2 and 2b, means,
for each municipality, the number of police officers meeting the definition of
peace officer in section 69.011, subdivision 1, counted as provided and limited
by section 69.011, subdivisions 2 and 2b.
Subd. 4. Payments;
conditions prerequisite. (a)
The payments under this section must be made on October 1 each year, with
interest at one percent for each month, or portion of a month, that the amount
remains unpaid after October 1. Any
necessary adjustments must be made to subsequent payments.
(b) The provisions of sections 69.011 to
69.051 that prevent municipalities and relief associations from being eligible
for, or receiving fire state aid under sections 69.011 to 69.051 until the
applicable financial reporting requirements have been complied with, apply to
the amounts payable to municipalities and relief associations under this
section.
Subd. 5. Aid
termination. The aid program
under this section ends on the December 1 next following the actuarial
valuation date on which the assets of the retirement plan on a market value
basis equals or exceeds 90 percent of the total actuarial accrued liabilities
of the retirement plan as disclosed in an actuarial valuation prepared under
section 356.215 and the Standards for Actuarial Work promulgated by the
Legislative Commission on Pensions and Retirement, for the State Patrol
retirement plan or the public employees police and fire retirement plan,
whichever occurs last.
Subd. 6. Appropriation. $15,500,000 is appropriated annually
to the commissioner of revenue for this aid program.
EFFECTIVE
DATE. This section is
effective beginning in the fiscal year beginning July 1, 2013.
Sec. 7. Minnesota Statutes 2012, section 477A.011, subdivision 30, is amended to read:
Subd. 30. Pre-1940
housing percentage. (a) Except as
provided in paragraph (b), "pre-1940 housing percentage" for a
city is 100 times the most recent federal census count by the United
States Bureau of the Census of all housing units in the city built before
1940, divided by the total number of all housing units in the city. Housing units includes both occupied and
vacant housing units as defined by the federal census. For aids payable in 2014, "pre-1940
housing percentage" shall be based on 2010 housing data.
(b) For the city of East Grand
Forks only, "pre-1940 housing percentage" is equal to 100 times the
1990 federal census count of all housing units in the city built before 1940,
divided by the most recent count by the United States Bureau of the Census of
all housing units in the city. Housing
units includes both occupied and vacant housing units as defined by the federal
census.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2014 and thereafter.
Sec. 8. Minnesota Statutes 2012, section 477A.011, is amended by adding a subdivision to read:
Subd. 30a. Percent
of housing built between 1940 and 1970.
"Percent of housing built between 1940 and 1970" is
equal to 100 times the most recent count by the United States Bureau of the
Census of all housing units in the city built after 1939 but before 1970,
divided by the total number of all housing units in the city. Housing units includes both occupied and
vacant housing units as defined by the federal census. For aids payable in 2014, "percent of
housing built between 1940 and 1970" shall be based on 2010 housing data.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2014 and thereafter.
Sec. 9. Minnesota Statutes 2012, section 477A.011, subdivision 34, is amended to read:
Subd. 34. City
revenue need. (a) For a city with a
population equal to or greater than 2,500 10,000, "city
revenue need" is the greater of 285 or 1.15 times the sum of
(1) 5.0734098 4.59 times the pre-1940 housing percentage; plus
(2) 19.141678 times the population decline percentage 0.622 times the
percent of housing built between 1940 and 1970; plus (3) 2504.06334
times the road accidents factor 169.415 times the jobs per capita;
plus (4) 355.0547; minus (5) the metropolitan area factor; minus (6)
49.10638 times the household size the sparsity adjustment; plus (5)
307.664.
(b) For a city with a population equal to
or greater than 2,500 and less than 10,000, "city revenue need" is
1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 housing
percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak
population decline.
(b) (c) For a city with a
population less than 2,500, "city revenue need" is the sum of (1)
2.387 times the pre-1940 housing percentage; plus (2) 2.67591 times the
commercial industrial percentage; plus (3) 3.16042 times the population decline
percentage; plus (4) 1.206 times the transformed population; minus (5) 62.772
410 plus 0.367 times the city's population over 100. The city revenue need under this paragraph
shall not exceed 630.
(c) (d) For a city with a
population of at least 2,500 or more and a population in one of the
most recently available five years that was less than 2,500, "city revenue
need" is the sum of (1) its city revenue need calculated under paragraph
(a) multiplied by its transition factor; plus (2) its city revenue need
calculated under the formula in paragraph (b) multiplied by the difference between
one and its transition factor. For
purposes of this paragraph, a city's "transition factor" is equal to
0.2 multiplied by the number of years that the city's population estimate has
been 2,500 or more. This provision only
applies for aids payable in calendar years 2006 to 2008 to cities with a 2002
population of less than 2,500. It
applies to any city for aids payable in 2009 and thereafter but less
than 3,000, the "city revenue need" equals (1) the transition factor
times the city's revenue need calculated in paragraph (b) plus (2) 630 times
the difference between one and the transition factor. For a city with a population of at least
10,000 but less than 10,500, the "city revenue need" equals (1) the
transition factor times the city's revenue need calculated in paragraph (a)
plus (2) the city's revenue need calculated under the formula in paragraph (b)
times the difference between one and the transition factor. For purposes of this paragraph
"transition factor" is 0.2 percent times the amount that the city's population
exceeds the minimum threshold in either of the first two sentences.
(d) (e) The city revenue need
cannot be less than zero.
(e) (f) For calendar
year 2005 2015 and subsequent years, the city revenue need for a
city, as determined in paragraphs (a) to (d) (e), is multiplied
by the ratio of the annual implicit price deflator for government consumption
expenditures and gross investment for state and local governments as prepared
by the United States Department of Commerce, for the most recently available
year to the 2003 2013 implicit price deflator for state and local
government purchases.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2014 and thereafter.
Sec. 10. Minnesota Statutes 2012, section 477A.011, subdivision 42, is amended to read:
Subd. 42. City
jobs base Jobs per capita. (a)
"City jobs base" for a city with a population of 5,000 or more is
equal to the product of (1) $25.20, (2) the number of jobs per capita in the
city, and (3) its population. For cities
with a population less than 5,000, the city jobs base is equal to zero. For a city receiving aid under subdivision
36, paragraph (k), its city jobs base is reduced by the lesser of 36 percent of
the amount of aid received under that paragraph or $1,000,000. No city's city jobs base may exceed
$4,725,000 under this paragraph.
(b) For calendar year 2010 and subsequent
years, the city jobs base for a city, as determined in paragraph (a), is
multiplied by the ratio of the appropriation under section 477A.03, subdivision
2a, for the year in which the aid is paid to the appropriation under that
section for aids payable in 2009.
(c) For purposes of this subdivision,
"Jobs per capita in the city" means (1) the average annual number of
employees in the city based on the data from the Quarterly Census of Employment
and Wages, as reported by the Department of Employment and Economic
Development, for the most recent calendar year available as of May 1, 2008
November 1 of every odd-numbered year, divided by (2) the city's
population for the same calendar year as the employment data. The commissioner of the Department of
Employment and Economic Development shall certify to the city the average
annual number of employees for each city by June 1, 2008 January 1,
of every even-numbered year beginning with January 1, 2014. A city may challenge an estimate under this
paragraph by filing its specific objection, including the names of employers
that it feels may have misreported data, in writing with the commissioner by June
20, 2008 December 1 of every odd-numbered year. The commissioner shall make every reasonable
effort to address the specific objection and adjust the data as necessary. The commissioner shall certify the estimates
of the annual employment to the commissioner of revenue by July 15, 2008
January 1 of all even-numbered years, including any estimates still
under objection. For aids payable in
2014, "jobs per capita" shall be based on the annual number of
employees and population for calendar year 2010 without additional review.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2014 and thereafter.
Sec. 11. Minnesota Statutes 2012, section 477A.011, is amended by adding a subdivision to read:
Subd. 44. Peak
population decline. "Peak
population decline" is equal to 100 times the difference between one and
the ratio of the city's current population, to the highest city population
reported in a federal census from the 1970 census or later. "Peak population decline" shall not
be less than zero.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2014 and thereafter.
Sec. 12. Minnesota Statutes 2012, section 477A.011, is amended by adding a subdivision to read:
Subd. 45. Sparsity
adjustment. For a city with a
population of 10,000 or more, the sparsity adjustment is 100 for any city with
an average population density less than 150 per square mile, according to the
most recent federal census, and the sparsity adjustment is zero for all other
cities.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2014 and thereafter.
Sec. 13. Minnesota Statutes 2012, section 477A.013, subdivision 1, is amended to read:
Subdivision 1. Towns. In 2002, no town is eligible for a
distribution under this subdivision.
In 2014 and thereafter, each town is eligible for a distribution
under this subdivision equal to the product of (i) its agricultural property
factor, (ii) its town area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the following
terms have the meanings given them:
(1) "agricultural property
factor" means the ratio of the adjusted net tax capacity of agricultural
property located in a town, divided by the adjusted net tax capacity of all
other property located in the town. The
agricultural property factor cannot exceed eight;
(2) "agricultural property"
means property classified under section 273.13, as homestead and nonhomestead
agricultural property, rural vacant land, and noncommercial seasonal
recreational property;
(3) "town area factor" means
the most recent estimate of total acreage, not to exceed 50,000 acres, located
in the township available as of July 1 in the aid calculation year, estimated
or established by:
(i) the United States Bureau of the
Census;
(ii) the State Land Management
Information Center; or
(iii) the secretary of state; and
(4) "population factor" means
the square root of the towns' population.
If the sum of the aids payable to all
towns under this subdivision exceeds the limit under section 477A.03,
subdivision 2c, the distribution to each town must be reduced proportionately
so that the total amount of aids distributed under this section does not exceed
the limit in section 477A.03, subdivision 2c.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2014 and thereafter.
Sec. 14. Minnesota Statutes 2012, section 477A.013, subdivision 8, is amended to read:
Subd. 8.
City formula aid. (a) For aids payable in 2014 only, the
formula aid for a city is equal to the sum of (1) its 2013 certified aid and
(2) the product of (i) the difference between its unmet need and its 2013
certified aid and (ii) the aid gap percentage.
(b) For aids payable in 2015 and
thereafter, the formula aid for a city is equal to the sum of (1) its city
jobs base, (2) its small city aid base, and (3) the need increase percentage
multiplied by the average of its unmet need for the most recently available two
years formula aid in the previous year and (2) the product of (i) the
difference between its unmet need and its certified aid in the previous year
under subdivision 9, and (ii) the aid gap percentage.
No city may have a formula aid amount less than zero. The need increase aid gap
percentage must be the same for all cities.
The applicable need increase aid
gap percentage must be calculated by the Department of Revenue so that the
total of the aid under subdivision 9 equals the total amount available for aid
under section 477A.03. Data used in
calculating aids to cities under sections 477A.011 to 477A.013 shall be the
most recently available data as of January 1 in the year in which the aid is
calculated except that the data used to compute "net levy" in
subdivision 9 is the data most recently available at the time of the aid
computation.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2014 and thereafter.
Sec. 15. Minnesota Statutes 2012, section 477A.013, subdivision 9, is amended to read:
Subd. 9. City
aid distribution. (a) In calendar
year 2013 2014 and thereafter, each city shall receive an aid
distribution equal to the sum of (1) the city formula aid under subdivision 8,
and (2) its city aid base aid adjustment under subdivision 13.
(b) For aids payable in 2013 and 2014
only, the total aid in the previous year for any city shall mean the amount of
aid it was certified to receive for aids payable in 2012 under this section. For aids payable in 2015 and thereafter, the
total aid in the previous year for any city means the amount of aid it was
certified to receive under this section in the previous payable year.
(c) For aids payable in 2010 and
thereafter, the total aid for any city shall not exceed the sum of (1) ten
percent of the city's net levy for the year prior to the aid distribution plus
(2) its total aid in the previous year. For
aids payable in 2009 and thereafter, the total aid for any city with a
population of 2,500 or more may not be less than its total aid under this
section in the previous year minus the lesser of $10 multiplied by its
population, or ten percent of its net levy in the year prior to the aid
distribution.
(d) (b) For aids payable in 2014
only, the total aid for a city may not be less than the amount it was certified
to receive in 2013. For aids payable
in 2010 2015 and thereafter, the total aid for a city with a
population less than 2,500 must not be less than the amount it was
certified to receive in the previous year minus the lesser of $10 multiplied by
its population, or five percent of its 2003 certified aid amount. For aids payable in 2009 only, the total aid
for a city with a population less than 2,500 must not be less than what it
received under this section in the previous year unless its total aid in
calendar year 2008 was aid under section 477A.011, subdivision 36, paragraph
(s), in which case its minimum aid is zero its net levy in the year
prior to the aid distribution.
(e) A city's aid loss under this section
may not exceed $300,000 in any year in which the total city aid appropriation
under section 477A.03, subdivision 2a, is equal or greater than the
appropriation under that subdivision in the previous year, unless the city has
an adjustment in its city net tax capacity under the process described in
section 469.174, subdivision 28.
(f) If a city's net tax capacity used in
calculating aid under this section has decreased in any year by more than 25
percent from its net tax capacity in the previous year due to property becoming
tax-exempt Indian land, the city's maximum allowed aid increase under paragraph
(c) shall be increased by an amount equal to (1) the city's tax rate in the
year of the aid calculation, multiplied by (2) the amount of its net tax
capacity decrease resulting from the property becoming tax exempt.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2014 and thereafter.
Sec. 16. Minnesota Statutes 2012, section 477A.013, is amended by adding a subdivision to read:
Subd. 13. Certified
aid adjustments. (a) A city
that received an aid base increase under Minnesota Statutes 2012, section
477A.011, subdivision 36, paragraph (e), shall have its total aid under
subdivision 9 increased by an amount equal to $150,000 for aids payable in 2014
through 2018.
(b) A city that received an aid base
increase under section 477A.011, subdivision 36, paragraph (r), shall have its
total aid under subdivision 9 increased by an amount equal to $160,000 for aids
payable in 2014 and thereafter.
(c) A city that received a temporary
aid increase under Minnesota Statutes 2012, section 477A.011, subdivision 36,
paragraph (o), shall have its total aid under subdivision 9 increased by an
amount equal to $1,000,000 for aids payable in 2014 only.
Sec. 17. Minnesota Statutes 2012, section 477A.015, is amended to read:
477A.015
PAYMENT DATES.
The commissioner of revenue shall make the payments of local government aid to affected taxing authorities in two installments on July 20 and December 26 annually.
When the commissioner of public safety determines that a local government has suffered financial hardship due to a natural disaster, the commissioner of public safety shall notify the commissioner of revenue, who shall make payments of aids under sections 477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical after the determination is made but not before July 20.
The commissioner may pay all or part of the
payments of aids under sections 477A.011 to 477A.014, which are due on December
26 at any time after August 15 if a local government requests such payment as
being necessary for meeting its cash flow needs. For aids payable in 2013 only, a city that
is located in an area deemed a disaster area during the month of April 2013, as
defined in section 12A.02, subdivision 5, shall receive its December 26, 2013
payment with its July 20, 2013 payment.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2013 and thereafter.
Sec. 18. Minnesota Statutes 2012, section 477A.03, subdivision 2a, is amended to read:
Subd. 2a. Cities. For aids payable in 2013 2014
and thereafter, the total aid paid under section 477A.013, subdivision
9, is $426,438,012 $507,598,012.
The total aid paid under section 477A.013, subdivision 9, is
$509,098,012 for aids payable in 2015. For
aids payable in 2016 and thereafter, the total aid paid under section 477A.013,
subdivision 9, is $511,598,012.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2014 and thereafter.
Sec. 19. Minnesota Statutes 2012, section 477A.03, subdivision 2b, is amended to read:
Subd. 2b. Counties. (a) For aids payable in 2013 2014
and thereafter, the total aid payable under section 477A.0124, subdivision 3,
is $80,795,000 $100,795,000.
Each calendar year, $500,000 of this appropriation shall be
retained by the commissioner of revenue to make reimbursements to the
commissioner of management and budget for payments made under section 611.27. For calendar year 2004, the amount shall
be in addition to the payments authorized under section 477A.0124, subdivision
1. For calendar year 2005 and subsequent
years, the amount shall be deducted from the appropriation under this paragraph. The reimbursements shall be to defray the
additional costs associated with court-ordered counsel under section 611.27. Any retained amounts not used for
reimbursement in a year shall be included in the next distribution of county
need aid that is certified to the county auditors for the purpose of property
tax reduction for the next taxes payable year.
(b) For aids payable in 2013 2014
and thereafter, the total aid under section 477A.0124, subdivision 4, is $84,909,575
$104,909,575. The commissioner
of management and budget shall bill the commissioner of revenue shall
transfer to the commissioner of management and budget $207,000 annually for
the cost of preparation of local impact notes as required by section 3.987, not
to exceed $207,000 in fiscal year 2004 and thereafter and other local
government activities. The commissioner
of education shall bill the commissioner of revenue for the cost of
preparation of local impact notes for school districts as required by section
3.987, not to exceed $7,000 in fiscal year 2004 and thereafter shall
transfer to the commissioner of education $7,000 annually for the cost of
preparation of local impact notes for school districts as required by section
3.987. The commissioner of revenue
shall deduct the amounts billed transferred under this paragraph
from the appropriation under this paragraph.
The amounts deducted transferred are appropriated to the
commissioner of management and budget and the commissioner of education for
the preparation of local impact notes respectively.
EFFECTIVE
DATE. This section is
effective for aid payable in 2014 and thereafter.
Sec. 20. Minnesota Statutes 2012, section 477A.03, is amended by adding a subdivision to read:
Subd. 2c. Towns. For aids payable in 2014, the total
aids paid under section 477A.013, subdivision 1, is limited to $10,000,000. For aids payable in 2015 and thereafter, the
total aids paid under section 477A.013, subdivision 1, is limited to the amount
certified to be paid in the previous year.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2014 and thereafter.
Sec. 21. [477A.085]
DEBT SERVICE AID; CITY OF MINNEAPOLIS.
On or before November 1, 2016, and the
first day of each November thereafter, the commissioner shall pay to the city
of Minneapolis an amount equal to 40 percent of the city's otherwise required
levy to pay its general obligation library referendum bonds for the following
calendar year. The levy excludes any
amount to pay bonds, other than refunding bonds, issued after May 1, 2013. An amount sufficient to pay the aid under
this section is appropriated from the general fund to the commissioner of
revenue.
Sec. 22. [477A.10]
NATURAL RESOURCES LAND PAYMENTS IN LIEU; PURPOSE.
The purposes of sections 477A.11 to
477A.14 are:
(1) to compensate local units of
government for the loss of tax base from state ownership of land and the need
to provide services for state land;
(2) to address the disproportionate
impact of state land ownership on local units of government with a large
proportion of state land; and
(3) to address the need to manage state
lands held in trust for the local taxing districts.
Sec. 23. Minnesota Statutes 2012, section 477A.11, subdivision 3, is amended to read:
Subd. 3. Acquired natural resources land. "Acquired natural resources land" means:
(1) any land, other than wildlife
management land, presently administered by the commissioner in which the
state acquired by purchase, condemnation, or gift, a fee title interest in
lands which were previously privately owned; and
(2) lands acquired by the state under chapter 84A that are designated as state parks, state recreation areas, scientific and natural areas, or wildlife management areas.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2013 and thereafter.
Sec. 24. Minnesota Statutes 2012, section 477A.11, subdivision 4, is amended to read:
Subd. 4. Other
natural resources land. "Other
natural resources land" means any other land, other than
acquired natural resource land or wildlife management land, presently owned
in fee title by the state and administered by the commissioner, or any
tax-forfeited land, other than platted lots within a city or those lands
described under subdivision 3, clause (2), which is owned by the state and
administered by the commissioner or by the county in which it is located.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2013 and thereafter.
Sec. 25. Minnesota Statutes 2012, section 477A.11, is amended by adding a subdivision to read:
Subd. 6. Military
game refuge. "Military
game refuge" means land owned in fee by another state agency for military
purposes and designated as a state game refuge under section 97A.085.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2013 and thereafter.
Sec. 26. Minnesota Statutes 2012, section 477A.11, is amended by adding a subdivision to read:
Subd. 7. Transportation
wetland. "Transportation
wetland" means land administered by the Department of Transportation in
which the state acquired, by purchase from a private owner, a fee title
interest in over 500 acres of land within a county to replace wetland losses
from transportation projects.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2013 and thereafter.
Sec. 27. Minnesota Statutes 2012, section 477A.11, is amended by adding a subdivision to read:
Subd. 8. Wildlife
management land. "Wildlife
management land" means land administered by the commissioner in which the
state acquired, from a private owner by purchase, condemnation, or gift, a fee
interest under the authority granted in chapter 94 or 97A for wildlife
management purposes and actually used as a wildlife management area.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2013 and thereafter.
Sec. 28. Minnesota Statutes 2012, section 477A.12, subdivision 1, is amended to read:
Subdivision 1. Types
of land; payments. (a) As an
offset for expenses incurred by counties and towns in support of natural
resources lands, The following amounts are annually appropriated to the
commissioner of natural resources from the general fund for transfer to the
commissioner of revenue. The
commissioner of revenue shall pay the transferred funds to counties as required
by sections 477A.11 to 477A.14. The amounts,
based on the acreage as of July 1 of each year prior to the payment year, are:
(1) for acquired natural resources
land, $5.133 multiplied by the total number of acres of acquired natural
resources land or, at the county's option three-fourths of one percent of the
appraised value of all acquired natural resources land in the county, whichever
is greater;
(2) $5.133, multiplied by the total
number of acres of transportation wetland or, at the county's option, three-fourths of one percent of the appraised value of
all acquired natural resources land in the county, whichever is greater;
(3) three-fourths of one percent of the
appraised value of all wildlife management land in the county;
(4) 50 percent of the dollar amount as
determined under clause (1), multiplied by the number of acres of military
refuge land in the county;
$1.283 (5) $1.50, multiplied by the number of
acres of county-administered other natural resources land in the county;
(3) $1.283 (6) $5.133, multiplied
by the total number of acres of land utilization project land in the county;
and
(4) 64.2 cents (7) $1.50, multiplied
by the number of acres of commissioner-administered other natural resources
land located in each the county as of July 1 of each
year prior to the payment year.; and
(8) without regard to acreage,
$300,000 for local assessments under section 84A.55, subdivision 9.
(b) The amount determined under
paragraph (a), clause (1), is payable for land that is acquired from a private
owner and owned by the Department of Transportation for the purpose of
replacing wetland losses caused by transportation projects, but only if the
county contains more than 500 acres of such land at the time the certification
is made under subdivision 2.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2013 and thereafter.
Sec. 29. Minnesota Statutes 2012, section 477A.12, subdivision 2, is amended to read:
Subd. 2. Procedure. Lands for which payments in lieu are
made pursuant to section 97A.061, subdivision 3, and Laws 1973, chapter 567,
shall not be eligible for payments under this section. Each county auditor shall certify to the
Department of Natural Resources during July of each year prior to the payment
year the number of acres of county-administered other natural resources land
within the county. The Department of
Natural resources may, in addition to the certification of acreage, require
descriptive lists of land so certified. The
commissioner of natural resources shall determine and certify to the
commissioner of revenue by March 1 of the payment year:
(1) the number of acres and most recent appraised value of acquired natural resources land, wildlife management land, and military refuge land within each county;
(2) the number of acres of commissioner-administered natural resources land within each county;
(3) the number of acres of county-administered other natural resources land within each county, based on the reports filed by each county auditor with the commissioner of natural resources; and
(4) the number of acres of land utilization project land within each county.
The commissioner of transportation shall
determine and certify to the commissioner of revenue by March 1 of the payment
year the number of acres of land transportation wetland and the
appraised value of the land described in subdivision 1, paragraph (b),
but only if it exceeds 500 acres in a county.
The commissioner of revenue shall determine the distributions provided for in this section using the number of acres and appraised values certified by the commissioner of natural resources and the commissioner of transportation by March 1 of the payment year.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2013 and thereafter.
Sec. 30. Minnesota Statutes 2012, section 477A.12, subdivision 3, is amended to read:
Subd. 3. Determination
of appraised value. For the purposes
of this section, the appraised value of acquired natural resources land is the
purchase price for the first five years after acquisition until the
next six-year appraisal required under this subdivision. The appraised value of acquired natural
resources land received as a donation is the value determined for the
commissioner of natural resources by a licensed appraiser, or the county
assessor's estimated market value if no appraisal is done. The appraised value must be determined by the
county assessor every five six years after the land is
acquired. All reappraisals shall
be done in the same year as county assessors are required to assess exempt land
under section 273.18.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2013 and thereafter.
Sec. 31. Minnesota Statutes 2012, section 477A.14, subdivision 1, is amended to read:
Subdivision 1. General
distribution. Except as provided in subdivision
2 or in section 97A.061, subdivision 5 subdivisions 2 and 3, 40
percent of the total payment to the county shall be deposited in the county
general revenue fund to be used to provide property tax levy reduction. The remainder shall be distributed by the
county in the following priority:
(a) 64.2 cents, for each acre of county-administered other natural resources land shall be deposited in a resource development fund to be created within the county treasury for use in resource development, forest management, game and fish habitat improvement, and recreational development and maintenance of county-administered other natural resources land. Any county receiving less than $5,000 annually for the resource development fund may elect to deposit that amount in the county general revenue fund;
(b) from the funds remaining, within 30
days of receipt of the payment to the county, the county treasurer shall pay
each organized township 51.3 cents for each acre of acquired natural
resources land and each acre of land described in section 477A.12, subdivision
1, paragraph (b), and 12.8 cents for each acre of other natural resources land
and each acre of land utilization project land located within its boundaries
ten percent of the amount received under section 477A.12, subdivision 1,
clauses (1), (2), and (5) to (7). Payments
for natural resources lands not located in an organized township shall be
deposited in the county general revenue fund. Payments to counties and townships pursuant to
this paragraph shall be used to provide property tax levy reduction, except
that of the payments for natural resources lands not located in an organized
township, the county may allocate the amount determined to be necessary for
maintenance of roads in unorganized townships.
Provided that, if the total payment to the county pursuant to section
477A.12 is not sufficient to fully fund the distribution provided for in this
clause, the amount available shall be distributed
to each township and the county general revenue fund on a pro rata basis; and
(c) any remaining funds shall be deposited in the county general revenue fund. Provided that, if the distribution to the county general revenue fund exceeds $35,000, the excess shall be used to provide property tax levy reduction.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2013 and thereafter.
Sec. 32. Minnesota Statutes 2012, section 477A.14, is amended by adding a subdivision to read:
Subd. 3. Distribution
for wildlife management lands and military refuge lands. (a) The county treasurer shall
allocate the payment for wildlife management land and military game refuge land
among the county, towns, and school districts on the same basis as if the
payments were taxes on the land received in the year. Payment of a town's or a school district's
allocation must be made by the county treasurer to the town or school district
within 30 days of receipt of the payment to the county. The county's share of the payment shall be
deposited in the county general revenue fund.
(b) The county treasurer of a county
with a population over 39,000, but less than 42,000, in the 1950 federal census
shall allocate the payment only among the towns and school districts on the
same basis as if the payments were taxes on the lands received in the current
year.
(c) If a town received a payment in
calendar year 2006 or thereafter under this subdivision, and subsequently
incorporated as a city, the city shall continue to receive any future year's
allocations of wildlife land payments that would have been made to the town had
it not incorporated, provided that the payments shall terminate if the
governing body of the city passes an ordinance that prohibits hunting within
the boundaries of the city.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2013 and thereafter.
Sec. 33. Laws 2006, chapter 259, article 11, section
3, as amended by Laws 2008, chapter 154, article 1, section 4
Sec. 3. MAHNOMEN
COUNTY; COUNTY, CITY, SCHOOL DISTRICT, PROPERTY TAX REIMBURSEMENT.
Subdivision 1. Aid
appropriation. $600,000 $1,200,000
is appropriated annually from the general fund to the commissioner of revenue
to be used to make payments to compensate for the loss of property tax revenue
related to the trust conversion application of the Shooting Star Casino. The commissioner shall pay the county of
Mahnomen, $450,000 $900,000; the city of Mahnomen, $80,000
$160,000; and Independent School District No. 432, Mahnomen, $70,000
$140,000. The payments shall be
made on July 20, of 2008 2013 and each subsequent year.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2013 and thereafter.
Sec. 34. INELIGIBILITY;
SUSTAINABLE FOREST INCENTIVE PROGRAM.
Lands that no longer qualify as forest
land under Minnesota Statutes, section 290C.02, subdivision 6, item (iii), are
released from the covenant required under Minnesota Statutes, section 290C.04.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 35. REENROLLMENT;
SUSTAINABLE FOREST INCENTIVE PROGRAM.
A person who elected to terminate
participation in the sustainable forest incentive program, as provided in Laws
2011, First Special Session chapter 7, article 6, section 12, may reenroll
lands for which the claimant terminated participation and be eligible for a
payment in October 2013. A person must
apply for reenrollment under this section within 60 days after the effective
date of this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 36. REPEALER.
(a) Minnesota Statutes 2012, sections
477A.011, subdivisions 2a, 19, 29, 31, 32, 33, 36, 39, 40, and 41; 477A.013,
subdivisions 11 and 12; 477A.0133; and 477A.0134, are repealed.
(b) Minnesota Statutes 2012, section
97A.061, and Laws 1973, chapter 567, section 7, as amended by Laws 1977,
chapter 403, section 12, are repealed on July 1, 2013.
EFFECTIVE
DATE. This section is
effective for aids payable in calendar year 2014 and thereafter.
ARTICLE 3
EDUCATION AIDS AND LEVIES
Section 1.
[124D.862] ACHIEVEMENT AND
INTEGRATION REVENUE.
Subdivision 1. Initial
achievement and integration revenue.
(a) An eligible district's initial achievement and integration
revenue equals the sum of (1) $350 times the district's adjusted pupil units
for that year times the ratio of the district's enrollment of protected
students for the previous school year to total enrollment for the previous
school year and (2) the greater of zero or 66 percent of the difference between
the district's integration revenue for fiscal year 2013 and the district's integration
revenue for fiscal year 2014 under clause (1).
(b) In each year, 0.3 percent
of each district's initial achievement and integration revenue is transferred
to the department for the oversight and accountability activities required
under this section and section 124D.861.
Subd. 2. Incentive
revenue. An eligible school
district's maximum incentive revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district
must be implementing a voluntary plan to reduce racial and economic enrollment
disparities through intradistrict and interdistrict activities that have been
approved as a part of the district's achievement and integration plan.
Subd. 3. Achievement
and integration revenue. Achievement
and integration revenue equals the sum of initial achievement and integration
revenue and incentive revenue.
Subd. 4. Achievement
and integration aid. For
fiscal year 2015 and later, a district's achievement and integration aid equals
70 percent of its achievement and integration revenue.
Subd. 5. Achievement
and integration levy. A
district's achievement and integration levy equals its achievement and
integration revenue times 30 percent. For
Special School District No. 1, Minneapolis; Independent School District No. 625,
St. Paul; and Independent School District No. 709, Duluth, 100
percent of the levy certified under this subdivision is shifted into the prior
calendar year for purposes of sections 123B.75, subdivision 5, and 127A.441.
Subd. 6. Revenue
uses. (a) At least 80 percent
of a district's achievement and integration revenue received under this section
must be used for innovative and integrated learning environments, school
enrollment choices, family engagement activities, and other approved programs
providing direct services to students.
(b) Up to 20 percent of the revenue may
be used for professional development and staff development activities and
placement services.
(c) No more than ten percent of the
total amount of revenue may be spent on administrative services.
Subd. 7. Revenue
reserved. Integration revenue
received under this section must be reserved and used only for the programs
authorized in subdivision 2.
Subd. 8. Commissioner
authority to withhold revenue. (a)
The commissioner must review the results of each district's integration and
achievement plan by August 1 at the end of the third year of implementing the
plan and determine if the district met its goals.
(b) If a district met its goals, it may
submit a new three-year plan to the commissioner for review.
(c) If a district has not met its
goals, the commissioner must:
(1) develop a district improvement plan
and timeline, in consultation with the affected district, that identifies
strategies and practices designed to meet the district's goals under this
section and section 120B.11; and
(2) use up to 20 percent of the
district's integration revenue, until the district's goals are reached, to
implement the improvement plan.
EFFECTIVE
DATE. This section is
effective for revenue for fiscal year 2014 and later. Subdivision 5 is effective for taxes payable
in 2014 only.
Sec. 2. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
Subdivision 1. General
education revenue. (a) For fiscal
years 2013 and 2014, the general education revenue for each district equals
the sum of the district's basic revenue, extended time revenue, gifted and
talented revenue, small schools revenue, basic skills revenue, training and
experience revenue, secondary sparsity revenue, elementary sparsity
revenue, transportation sparsity revenue, total operating capital revenue,
equity revenue, alternative teacher compensation revenue, and transition
revenue.
(b) For fiscal year 2015 and later, the
general education revenue for each district equals the sum of the district's
basic revenue, extended time revenue, gifted and talented revenue, declining
enrollment revenue, location equity revenue, small schools revenue, basic
skills revenue, secondary sparsity revenue, elementary sparsity revenue,
transportation sparsity revenue, total operating capital revenue, equity
revenue, pension adjustment revenue, and transition revenue.
Sec. 3. Minnesota Statutes 2012, section 126C.10, is amended by adding a subdivision to read:
Subd. 2d. Location
equity revenue. (a) For a
school district with any of its area located within the seven-county
metropolitan area, location equity revenue equals $424 times the adjusted pupil
units of the district for that school year.
(b) For all other school districts with
more than 2,000 pupils in adjusted average daily membership for the fiscal year
ending in the year before the levy is certified, location equity revenue equals
$212 times the adjusted pupil units of the district for that year.
(c) A district's location equity levy
equals its location equity revenue times the lesser of one or the ratio of its
referendum market value per resident pupil unit to $510,000. The location equity revenue levy must be
spread on referendum market value.
(d) A district's location equity aid equals
its location equity revenue less its location equity levy, times the ratio of
the actual amount levied to the permitted levy.
(e) A school district may elect not to
participate in the location equity revenue program by a board vote taken prior
to September 1 of the fiscal year before the fiscal year for which the decision
not to participate becomes effective. The
board resolution must state which fiscal years the district will not
participate. A copy of the board
resolution to not participate must be submitted to the commissioner.
EFFECTIVE
DATE. This section is
effective for revenue for fiscal year 2015 and later.
Sec. 4. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
Subd. 4. General
education aid. (a) For fiscal
years 2007 2013 and later 2014 only, a district's
general education aid is the sum of the following amounts:
(1) general education revenue, excluding equity revenue, total operating capital revenue, alternative teacher compensation revenue, and transition revenue;
(2) operating capital aid under section 126C.10, subdivision 13b;
(3) equity aid under section 126C.10, subdivision 30;
(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
(5) transition aid under section 126C.10, subdivision 33;
(6) shared time aid under section 126C.01, subdivision 7;
(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
(8) online learning aid according to section 124D.096.
(b) For fiscal year 2015 and later, a
district's general education aid equals:
(1) general education revenue,
excluding operating capital revenue, equity revenue, location equity revenue,
and transition revenue, minus the student achievement levy, multiplied times
the ratio of the actual amount of student achievement levy levied to the
permitted student achievement levy; plus
(2) equity aid under section 126C.10,
subdivision 30; plus
(3) transition aid under section
126C.10, subdivision 33; plus
(4) shared time aid under section
126C.10, subdivision 7; plus
(5) referendum aid under section
126C.17, subdivisions 7 and 7a;
(6) online learning aid under section
124D.096; plus
(7) location equity aid according to
section 126C.10, subdivision 2d, paragraph (d).
Sec. 5. Minnesota Statutes 2012, section 126C.17, is amended to read:
126C.17
REFERENDUM REVENUE.
Subdivision 1. Referendum
allowance. (a) For fiscal year
2003 and later, a district's initial referendum revenue allowance equals the
sum of the allowance under section 126C.16, subdivision 2, plus any additional
allowance per resident marginal cost pupil unit authorized under subdivision 9
before May 1, 2001, for fiscal year 2002 and later, plus the referendum
conversion allowance approved under subdivision 13, minus $415. For districts with more than one referendum
authority, the reduction must be computed separately for each authority. The reduction must be applied first to the
referendum conversion allowance and next to the authority with the earliest
expiration date. A district's initial
referendum revenue allowance may not be less than zero.
(b) For fiscal year 2003, a district's
referendum revenue allowance equals the initial referendum allowance plus any
additional allowance per resident marginal cost pupil unit authorized under subdivision
9 between April 30, 2001, and December 30, 2001, for fiscal year 2003 and
later.
(c) For fiscal year 2004 and later, a
district's referendum revenue allowance equals the sum of:
(1) the product of (i) the ratio of the
resident marginal cost pupil units the district would have counted for fiscal
year 2004 under Minnesota Statutes 2002, section 126C.05, to the district's
resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
referendum allowance plus any additional allowance per resident marginal cost pupil unit authorized under subdivision 9 between
April 30, 2001, and May 30, 2003, for fiscal year 2003 and later, plus
(2) any additional allowance per
resident marginal cost pupil unit authorized under subdivision 9 after May 30,
2003, for fiscal year 2005 and later.
(a) A district's initial
referendum allowance for fiscal year 2015 equals the result of the following
calculations:
(1) multiply the referendum allowance
the district would have received for fiscal year 2015 under Minnesota Statutes
2012, section 126C.17, subdivision 1, based on elections held before July 1,
2013, by the resident marginal cost pupil
units the district would have counted for fiscal year 2015 under Minnesota
Statutes 2012, section 126C.05;
(2) add to the result of clause (1) the
adjustment the district would have received under Minnesota Statutes 2012,
section 127A.47, subdivision 7, paragraphs (a), (b), and (c), based on
elections held before July 1, 2013;
(3) divide the result of clause (2) by
the district's adjusted pupil units for fiscal year 2015; and
(4) if the result of clause (3) is less
than zero, set the allowance to zero.
(b) A district's referendum allowance
equals the sum of the district's initial referendum allowance for fiscal year
2015, plus any additional referendum allowance per adjusted pupil unit
authorized after June 30, 2013, minus (i) the location equity revenue
subtraction, and (ii) any allowances expiring in fiscal year 2016 or later,
provided that the allowance may not be less than zero. For a district with more than one referendum
allowance for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17,
the allowance calculated under paragraph (a) must be divided into components
such that the same percentage of the district's allowance expires at the same
time as the old allowances would have expired under Minnesota Statutes 2012,
section 126C.17.
(c) For purposes of this subdivision, a
district's location equity revenue subtraction equals $424 for a district
receiving location equity revenue under section 126C.10, subdivision 2d,
paragraph (a), $212 for a district receiving location equity revenue under
section 126C.10, subdivision 2d, paragraph (b), and zero for all other school
districts.
Subd. 2. Referendum
allowance limit. (a) Notwithstanding
subdivision 1, for fiscal year 2007 2015 and later, a district's
referendum allowance must not exceed the greater of:
(1) the sum of: (i) a district's referendum allowance for
fiscal year 1994 times 1.177 times the annual inflationary increase as
calculated under paragraph (b) plus (ii) its referendum conversion allowance
for fiscal year 2003, minus (iii) $215;
(2) the greater of (i): 26 percent of the formula allowance or (ii)
$1,294 times the annual inflationary increase as calculated under paragraph
(b); or times the greatest of:
(1) $1,845;
(2) the sum of the referendum revenue
the district would have received for fiscal year 2015 under Minnesota Statutes
2012, section 126C.17, subdivision 4, based on elections held before July 1,
2013, and the adjustment the district would have received under Minnesota
Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and (c),
based on elections held before July 1, 2013, divided by the district's adjusted
pupil units for fiscal year 2015; or
(3) the product of the referendum
allowance limit the district would have received for fiscal year 2015 under
Minnesota Statutes 2012, section 126C.17, subdivision 2, and the resident
marginal cost pupil units the district would have received for fiscal year 2015
under Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the
adjustment the district would have received under Minnesota Statutes 2012,
section 127A.47, subdivision 7, paragraphs (a), (b), and (c), based on
elections held before July 1, 2013, divided by the district's adjusted pupil
units for fiscal year 2015; minus $424 for a district receiving location equity
revenue under section 126C.10, subdivision 2d, paragraph (a), minus $212 for a
district receiving location equity revenue under section 126C.10, subdivision
2d, paragraph (b), or
(3) (4) for a newly
reorganized district created after July 1, 2006 2013, the referendum
revenue authority for each reorganizing district in the year preceding
reorganization divided by its resident marginal cost adjusted
pupil units for the year preceding reorganization.
(b) For purposes of this subdivision, for
fiscal year 2005 2016 and later, "inflationary
increase" means one plus the percentage change in the Consumer Price Index
for urban consumers, as prepared by the United States Bureau of Labor
Standards, for the current fiscal year to fiscal year 2004 2015. For fiscal years 2009 year 2016
and later, for purposes of paragraph (a), clause (1) (3), the
inflationary increase equals the inflationary increase for fiscal year 2008
plus one-fourth of the percentage increase in the formula allowance for
that year compared with the formula allowance for fiscal year 2008 2015.
Subd. 3. Sparsity exception. A district that qualifies for sparsity revenue under section 126C.10 is not subject to a referendum allowance limit.
Subd. 4. Total
referendum revenue. The total
referendum revenue for each district equals the district's referendum allowance
times the resident marginal cost adjusted pupil units for the
school year.
Subd. 5. Referendum
equalization revenue. (a) For
fiscal year 2003 and later, A district's referendum equalization revenue
equals the sum of the first tier referendum equalization revenue and the second
tier referendum equalization revenue, and the third tier referendum
equalization revenue.
(b) A district's first tier referendum
equalization revenue equals the district's first tier referendum equalization
allowance times the district's resident marginal cost adjusted
pupil units for that year.
(c) For fiscal year 2006, a district's
first tier referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or $500. For fiscal year 2007, a district's first tier
referendum equalization allowance equals the lesser of the district's
referendum allowance under subdivision 1 or $600.
For fiscal year 2008 and later, A
district's first tier referendum equalization allowance equals the lesser of
the district's referendum allowance under subdivision 1 or $700 $300.
(d) A district's second tier referendum
equalization revenue equals the district's second tier referendum equalization
allowance times the district's resident marginal cost adjusted
pupil units for that year.
(e) For fiscal year 2006, a district's
second tier referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or 18.6 percent of the
formula allowance, minus the district's first tier referendum equalization
allowance. For fiscal year 2007 and
later, A district's second tier referendum equalization allowance equals
the lesser of the district's referendum allowance under subdivision 1 or 26
percent of the formula allowance $760, minus the district's first
tier referendum equalization allowance.
(f) Notwithstanding paragraph (e), the
second tier referendum allowance for a district qualifying for secondary sparsity
revenue under section 126C.10, subdivision 7, or elementary sparsity revenue
under section 126C.10, subdivision 8, equals the district's referendum
allowance under subdivision 1 minus the district's first tier referendum
equalization allowance. A district's
third tier referendum equalization revenue equals the district's third tier
referendum equalization allowance times the district's adjusted pupil units for
that year.
(g) A district's third tier referendum
equalization allowance equals the lesser of the district's referendum allowance
under subdivision 1 or 25 percent of the formula allowance, minus the sum of
the district's first tier referendum equalization allowance and second tier
referendum equalization allowance.
(h) Notwithstanding paragraph (g),
the third tier referendum allowance for a district qualifying for secondary
sparsity revenue under section 126C.10, subdivision 7, or elementary sparsity
revenue under section 126C.10, subdivision 8, equals the district's referendum
allowance under subdivision 1 minus the sum of the district's first tier
referendum equalization allowance and second tier referendum equalization
allowance.
Subd. 6. Referendum
equalization levy. (a) For fiscal
year 2003 and later, a district's referendum equalization levy equals the sum
of the first tier referendum equalization levy and the second tier
referendum equalization levy, and the third tier referendum equalization
levy.
(b) A district's first tier referendum
equalization levy equals the district's first tier referendum equalization
revenue times the lesser of one or the ratio of the district's referendum
market value per resident marginal cost pupil unit to $476,000 $880,000.
(c) A district's second tier referendum
equalization levy equals the district's second tier referendum equalization
revenue times the lesser of one or the ratio of the district's referendum
market value per resident marginal cost pupil unit to $270,000 $510,000.
(d) A district's third tier referendum
equalization levy equals the district's third tier referendum equalization
revenue times the lesser of one or the ratio of the district's referendum
market value per resident pupil unit to $290,000.
Subd. 7. Referendum equalization aid. (a) A district's referendum equalization aid equals the difference between its referendum equalization revenue and levy.
(b) If a district's actual levy for first or,
second, or third tier referendum equalization revenue is less than its
maximum levy limit for that tier, aid shall be proportionately reduced.
(c) Notwithstanding paragraph (a), the
referendum equalization aid for a district, where the referendum equalization
aid under paragraph (a) exceeds 90 percent of the referendum revenue, must not
exceed 26 25 percent of the formula allowance times the
district's resident marginal cost adjusted pupil units. A district's referendum levy is increased by
the amount of any reduction in referendum aid under this paragraph.
Subd. 7a. Referendum tax base replacement aid. For each school district that had a referendum allowance for fiscal year 2002 exceeding $415, for each separately authorized referendum levy, the commissioner of revenue, in consultation with the commissioner of education, shall certify the amount of the referendum levy in taxes payable year 2001 attributable to the portion of the referendum allowance exceeding $415 levied against property classified as class 2, noncommercial 4c(1), or 4c(4), under section 273.13, excluding the portion of the tax paid by the portion of class 2a property consisting of the house, garage, and surrounding one acre of land. The resulting amount must be used to reduce the district's referendum levy amount otherwise determined, and must be paid to the district each year that the referendum authority remains in effect, is renewed, or new referendum authority is approved. The aid payable under this subdivision must be subtracted from the district's referendum equalization aid under subdivision 7. The referendum equalization aid after the subtraction must not be less than zero.
Subd. 7b. Referendum
aid guarantee. (a)
Notwithstanding subdivision 7, a district's referendum equalization aid for fiscal
year 2015 must not be less than the sum of the referendum equalization aid the
district would have received for fiscal year 2015 under Minnesota Statutes
2012, section 126C.17, subdivision 7, and the adjustment the district would have received under Minnesota
Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and (c).
(b) Notwithstanding subdivision 7,
referendum equalization aid for fiscal year 2016 and later, for a district
qualifying for additional aid under paragraph (a) for fiscal year 2015, must
not be less than the product of (1) the district's referendum equalization aid
for fiscal year 2015, times (2) the lesser of one or the ratio of the
district's
referendum revenue for that
school year to the district's referendum revenue for fiscal year 2015, times
(3) the lesser of one or the ratio of the district's referendum market value
used for fiscal year 2015 referendum equalization calculations to the
district's referendum market value used for that year's referendum equalization
calculations.
Subd. 8. Unequalized referendum levy. Each year, a district may levy an amount equal to the difference between its total referendum revenue according to subdivision 4 and its referendum equalization revenue according to subdivision 5.
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 resident marginal cost
adjusted pupil unit. The ballot
may state a schedule, determined by the board, of increased revenue per resident
marginal cost 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 resident marginal cost adjusted
pupil unit" as "per 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 resident marginal cost adjusted pupil unit times the resident
marginal cost 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 prepare and deliver by first class mail at least 15 days but no more than 30 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."
(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 resident marginal cost 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.
Subd. 9a. Board-approved
referendum allowance. Notwithstanding
subdivision 9, a school district may convert up to $300 per adjusted pupil unit
of referendum authority from voter approved to board approved by a board vote. A district with less than $300 per adjusted
pupil unit of referendum authority may authorize new referendum authority up to
the difference between $300 per adjusted pupil unit and the district's
referendum authority. The board may
authorize this levy for up to five years and may subsequently reauthorize that
authority in increments of up to five years.
Subd. 10. School referendum levy; market value. A school referendum levy must be levied against the referendum market value of all taxable property as defined in section 126C.01, subdivision 3. Any referendum levy amount subject to the requirements of this subdivision must be certified separately to the county auditor under section 275.07.
Subd. 11. Referendum date. (a) Except for a referendum held under paragraph (b), any referendum under this section held on a day other than the first Tuesday after the first Monday in November must be conducted by mail in accordance with section 204B.46. Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b), must be prepared and delivered by first-class mail at least 20 days before the referendum.
(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner may grant authority to a district to hold a referendum on a different day if the district is in statutory operating debt and has an approved plan or has received an extension from the department to file a plan to eliminate the statutory operating debt.
(c) The commissioner must approve, deny, or modify each district's request for a referendum levy on a different day within 60 days of receiving the request from a district.
Subd. 13. Referendum conversion allowance. A school district that received supplemental or transition revenue in fiscal year 2002 may convert its supplemental revenue conversion allowance and transition revenue conversion allowance to additional referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority of the school board must approve the conversion at a public meeting before November 1, 2001. For a district with other referendum authority, the referendum conversion allowance approved by the board continues until the portion of the district's other referendum authority with the earliest expiration date after June 30, 2006, expires. For a district with no other referendum authority, the referendum conversion allowance approved by the board continues until June 30, 2012.
EFFECTIVE
DATE. This section is
effective for revenue for fiscal year 2015 and later.
Sec. 6. OPERATING
REFERENDUM FREEZE, FISCAL YEAR 2015.
(a) Notwithstanding Minnesota Statutes,
section 126C.17, subdivision 9, a school district may not authorize an increase
to its operating referendum in fiscal year 2015. A school district may reauthorize an
operating referendum that is expiring in fiscal year 2015.
(b) Paragraph (a) shall not apply to a
district if, prior to June 30, 2013, the board adopted a resolution to conduct
a referendum in 2013.
(c) Paragraph (a) shall not apply to a
district if the district did not authorize an operating referendum in fiscal
year 2014.
(d) Paragraph (a) shall not apply to a
district if the district is in statutory operating debt under Minnesota
Statutes, section 123B.81, as of June 30, 2013, and has an approved plan with
the Department of Education.
ARTICLE 4
PROPERTY TAXES
Section 1. Minnesota Statutes 2012, section 103B.102, subdivision 3, is amended to read:
Subd. 3. Evaluation
and report. The Board of Water and
Soil Resources shall evaluate performance, financial, and activity information
for each local water management entity. The
board shall evaluate the entities' progress in accomplishing their adopted
plans on a regular basis as determined by the board based on budget and
operations of the local water management entity, but not less than once
every five ten years. The
board shall maintain a summary of local water management entity performance on
the board's Web site. Beginning February
1, 2008, and annually thereafter, the board shall provide an analysis of local
water management entity performance to the chairs of the house of
representatives and senate committees having jurisdiction over environment and
natural resources policy.
Sec. 2. Minnesota Statutes 2012, section 103B.335, is amended to read:
103B.335
TAX LEVY AUTHORITY.
Subdivision 1. Local water planning and management. The governing body of any county, municipality, or township may levy a tax in an amount required to implement sections 103B.301 to 103B.355 or a comprehensive watershed management plan as defined in section 103B.3363.
Subd. 2. Priority
programs; conservation and watershed districts.
A county may levy amounts necessary to pay the reasonable increased
costs to soil and water conservation districts and watershed districts of
administering and implementing priority programs identified in an approved and
adopted plan or a comprehensive watershed management plan as defined in
section 103B.3363.
Sec. 3. Minnesota Statutes 2012, section 103B.3369, subdivision 5, is amended to read:
Subd. 5.
Financial assistance. A base grant may be awarded to a county
that provides a match utilizing a water implementation tax or other local
source. A water implementation tax that
a county intends to use as a match to the base grant must be levied at a rate sufficient
to generate a minimum amount determined by the board. The board may award performance-based grants
to local units of government that are responsible for implementing elements of
applicable portions of watershed management plans, comprehensive plans, local
water management plans, or comprehensive watershed management plans, developed
or amended, adopted and approved, according to chapter 103B, 103C, or 103D. Upon request by a local government unit, the
board may also award performance-based grants to local units of government to
carry out TMDL implementation plans as provided in chapter 114D, if the TMDL
implementation plan has been incorporated into the local water management plan
according to the procedures for approving comprehensive plans, watershed
management plans, local water management plans, or comprehensive watershed
management plans under chapter 103B, 103C, or 103D, or if the TMDL
implementation plan has undergone a public review process. Notwithstanding section 16A.41, the board may
award performance-based grants on an advanced basis. The fee authorized in section 40A.152 may
be used as a local match or as a supplement to state funding to accomplish
implementation of comprehensive plans, watershed management plans, local water
management plans, or comprehensive watershed management plans under chapter
103B, 103C, or 103D.
Sec. 4. Minnesota Statutes 2012, section 103C.501, subdivision 4, is amended to read:
Subd. 4.
Cost-sharing funds. (a) The state board shall allocate at
least 70 percent of cost-sharing funds to areas with high priority erosion,
sedimentation, or water quality problems or water quantity problems due to
altered hydrology. The areas must be
selected based on the statewide priorities established by the state
board.
(b) The allocated funds must be used for conservation practices for high priority problems identified in the comprehensive and annual work plans of the districts, for the technical assistance portion of the grant funds to leverage federal or other nonstate funds, or to address high-priority needs identified in local water management plans or comprehensive watershed management plans.
(b) The remaining cost-sharing funds may
be allocated to districts as follows:
(1) for technical and administrative
assistance, not more than 20 percent of the funds; and
(2) for conservation practices for lower
priority erosion, sedimentation, or water quality problems.
Sec. 5. Minnesota Statutes 2012, section 103F.405, subdivision 1, is amended to read:
Subdivision 1. Authority. Each statutory or home rule charter city,
town, or county that has planning and zoning authority under sections 366.10 to
366.19, 394.21 to 394.37, or 462.351 to 462.365 is encouraged to adopt a soil
loss ordinance. The soil loss ordinance
must use the soil loss tolerance for each soil series described in the United
States Soil Natural Resources Conservation Service Field Office
Technical Guide, or another method approved by the Board of Water and Soil
Resources, to determine the soil loss limits, but the soil loss limits must
be attainable by the best practicable soil conservation practice. Ordinances adopted by local governments within
the metropolitan area defined in section 473.121 must be consistent with local
water management plans adopted under section 103B.235 a comprehensive
plan, local water management plan, or watershed management plan developed or
amended, adopted, and approved according to chapter 103B, 103C, or 103D.
Sec. 6. Minnesota Statutes 2012, section 168.012, subdivision 9, is amended to read:
Subd. 9. Manufactured homes and park trailers. Manufactured homes and park trailers shall not be taxed as motor vehicles using the public streets and highways and shall be exempt from the motor vehicle tax provisions of this chapter. Except as provided in section 273.125, manufactured homes and park trailers shall be taxed as personal
property. The provisions of Minnesota Statutes 1957, section 272.02 or any other act providing for tax exemption shall be inapplicable to manufactured homes and park trailers, except such manufactured homes as are held by a licensed dealer or limited dealer, as defined in section 327B.04, and exempted as inventory under subdivision 9a. Travel trailers not conspicuously displaying current registration plates on the property tax assessment date shall be taxed as manufactured homes if occupied as human dwelling places.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2014 and thereafter.
Sec. 7. Minnesota Statutes 2012, section 168.012, is amended by adding a subdivision to read:
Subd. 9a. Manufactured
home as dealer inventory. Manufactured
homes as defined in section 327.31, subdivision 6, shall be considered as
dealer inventory, on the January 2 assessment date, if the home is:
(1) listed as inventory and held by a
licensed or limited dealer;
(2) unoccupied and not available for
rent;
(3) connected or not connected to
utilities when located in a manufactured home park; and
(4) connected or not connected to
utilities when located at a dealer's sales center.
The exemption under this subdivision is allowable for up
to five assessment years after the date a home is initially claimed as dealer
inventory.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2014 and thereafter.
Sec. 8. Minnesota Statutes 2012, section 270.41, subdivision 3, is amended to read:
Subd. 3. Licenses;
refusal or revocation Assessor sanctions; refusal to license. (a) The board may (i)
refuse to grant or renew, or may suspend or revoke, a license of an applicant
or licensee, or (ii) censure, warn, or fine any licensed assessor, or any
other person employed by an assessment jurisdiction or contracting with an
assessment jurisdiction for the purpose of valuing or classifying property for
property tax purposes, for any of the following causes or acts:
(1) failure to complete required training;
(2) inefficiency or neglect of duty;
(3) failure to comply with the Code of Conduct and Ethics for Licensed Minnesota Assessors adopted by the board pursuant to Laws 2005, First Special Session chapter 3, article 1, section 38;
(4) conviction of a crime involving moral
turpitude; or
(5) failure to faithfully and fully
perform his or her duties through malfeasance, misfeasance, or nonfeasance; or
(5) (6) any other cause or act
that in the board's opinion warrants a refusal to issue or suspension or
revocation of a license or the imposition of a sanction provided under
this subdivision.
(b) When appropriate for the level of
infraction, a written warning must be given to assessors who have no prior
identified infractions. The warning must
identify the infraction and, as appropriate, detail future expectations of
performance and behavior. Fines must not
exceed $1,000 for the first occurrence and must not exceed $3,000 for
each occurrence thereafter, and
suspensions must not exceed one year for each occurrence, depending in each
case upon the severity of the infraction and the level of negligence or intent. An action by the board to impose a sanction
is subject to review in a contested case hearing under chapter 14.
EFFECTIVE
DATE. This section is
effective beginning July 1, 2013.
Sec. 9. Minnesota Statutes 2012, section 270.41, is amended by adding a subdivision to read:
Subd. 3a. Report
on disciplinary actions. Each
odd-numbered year, the board must publish a report detailing the number and
types of disciplinary actions recommended by the commissioner of revenue under
section 273.0645, subdivision 2, and the disposition of those recommendations
by the board. The report must be
presented to the house of representatives and senate committees with
jurisdiction over property taxes by February 1 of each odd-numbered year.
EFFECTIVE
DATE. This section is
effective beginning July 1, 2013.
Sec. 10. Minnesota Statutes 2012, section 270.45, is amended to read:
270.45
DISPOSITION OF FEES AND FINES.
All fees and fines so established and collected shall be paid to the commissioner of management and budget for deposit in the general fund. The expenses of carrying out the provisions of sections 270.41 to 270.50 shall be paid from appropriations made to the board.
EFFECTIVE
DATE. This section is
effective beginning July 1, 2013.
Sec. 11. [270C.9901]
ASSESSOR ACCREDITATION.
Every individual who appraises or
physically inspects real property for the purpose of determining its valuation
or classification for property tax purposes must obtain licensure as an
accredited Minnesota assessor from the State Board of Assessors by July 1,
2019, or within four years of that person having become licensed as a certified
Minnesota assessor, whichever is later.
EFFECTIVE
DATE. This section is
effective beginning January 1, 2014.
Sec. 12. Minnesota Statutes 2012, section 272.02, subdivision 39, is amended to read:
Subd. 39. Economic
development; public purpose. The
holding of property by a political subdivision of the state for later resale
for economic development purposes shall be considered a public purpose in
accordance with subdivision 8 for a period not to exceed nine years, except
that:
(1) for property located in a city
of 5,000 20,000 population or under that is located outside of
the metropolitan area as defined in section 473.121, subdivision 2, the period
must not exceed 15 years.; and
(2) for any property that was acquired
on or after January 1, 2000, and on or before December 31, 2010, and is located
in a city, the period must not exceed 15 years.
The holding of property by a political subdivision of the state for later resale (1) which is purchased or held for housing purposes, or (2) which meets the conditions described in section 469.174, subdivision 10, shall be considered a public purpose in accordance with subdivision 8.
The governing body of the political subdivision which acquires property which is subject to this subdivision shall after the purchase of the property certify to the city or county assessor whether the property is held for economic development purposes or housing purposes, or whether it meets the conditions of section 469.174, subdivision 10. If the property is acquired for economic development purposes and buildings or other improvements are constructed after acquisition of the property, and if more than one-half of the floor space of the buildings or improvements which is available for lease to or use by a private individual, corporation, or other entity is leased to or otherwise used by a private individual, corporation, or other entity the provisions of this subdivision shall not apply to the property. This subdivision shall not create an exemption from section 272.01, subdivision 2; 272.68; 273.19; or 469.040, subdivision 3; or other provision of law providing for the taxation of or for payments in lieu of taxes for publicly held property which is leased, loaned, or otherwise made available and used by a private person.
EFFECTIVE DATE. This section is effective for assessment year 2013
and thereafter and for taxes payable in 2014 and thereafter.
Sec. 13. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision to read:
Subd. 98. Certain
property owned by an Indian tribe. (a)
Property is exempt that:
(1) was classified as 3a under section
273.13, subdivision 24, for taxes payable in 2013;
(2) is located in a city of the first
class with a population greater than 300,000 as of the 2010 federal census;
(3) was on January 2, 2012, and is for
the current assessment owned by a federally recognized Indian tribe, or its
instrumentality, that is located within the state of Minnesota; and
(4) is used exclusively for tribal
purposes or institutions of purely public charity as defined in subdivision 7.
(b) For purposes of this subdivision, a
"tribal purpose" means a public purpose as defined in subdivision 8
and includes noncommercial tribal government activities. 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 20,000 square feet. Property acquired for single-family housing,
market-rate apartments, agriculture, or forestry does not qualify for this
exemption. The exemption created by this
subdivision expires with taxes payable in 2024.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2014.
Sec. 14. Minnesota Statutes 2012, section 272.02, is amended by adding a subdivision to read:
Subd. 99. Electric
generation facility; personal property.
(a) Notwithstanding subdivision 9, clause (a), and section
453.54, subdivision 20, attached machinery and other personal property which is
part of an electric generation facility that exceeds five megawatts of
installed capacity and meets the requirements of this subdivision is exempt. At the time of construction, the facility
must be:
(1) designed to utilize natural gas as a
primary fuel;
(2) owned and operated by a municipal
power agency as defined in section 453.52, subdivision 8;
(3) designed to utilize reciprocating
engines paired with generators to produce electrical power;
(4) located within the service territory
of a municipal power agency's electrical municipal utility that serves load
exclusively in a metropolitan county as defined in section 473.121, subdivision
4; and
(5) designed to connect
directly with a municipality's substation.
(b) Construction of the facility must be
commenced after June 1, 2013, and before June 1, 2017. Property eligible for this exemption does not
include electric transmission lines and interconnections or gas pipelines and
interconnections appurtenant to the property or the facility.
EFFECTIVE
DATE. This section is
effective for assessment year 2013, taxes payable in 2014, and thereafter.
Sec. 15. Minnesota Statutes 2012, section 273.061, subdivision 2, is amended to read:
Subd. 2. Term; vacancy. (a) The terms of county assessors appointed under this section shall be four years. A new term shall begin on January 1 of every fourth year after 1973. When any vacancy in the office occurs, the board of county commissioners, within 90 days thereafter, shall fill the same by appointment for the remainder of the term, following the procedure prescribed in subdivision 1. The term of the county assessor may be terminated by the board of county commissioners at any time, on charges of malfeasance, misfeasance, or nonfeasance by the commissioner of revenue. If the board of county commissioners does not intend to reappoint a county assessor who has been certified by the state Board of Assessors, the board shall present written notice to the county assessor not later than 90 days prior to the termination of the assessor's term, that it does not intend to reappoint the assessor. If written notice is not timely made, the county assessor will automatically be reappointed by the board of county commissioners.
The commissioner of revenue may
recommend to the state Board of Assessors the nonrenewal, suspension, or
revocation of an assessor's license as provided in sections 270.41 to 270.50.
(b) In the event of a vacancy in the office of county assessor, through death, resignation or other reasons, the deputy (or chief deputy, if more than one) shall perform the functions of the office. If there is no deputy, the county auditor shall designate a person to perform the duties of the office until an appointment is made as provided in clause (a). Such person shall perform the duties of the office for a period not exceeding 90 days during which the county board must appoint a county assessor. Such 90-day period may, however, be extended by written approval of the commissioner of revenue.
(c) In the case of the first appointment under paragraph (a) of a county assessor who is accredited but who does not have senior accreditation, an approval of the appointment by the commissioner shall be provisional, provided that a county assessor appointed to a provisional term under this paragraph must reapply to the commissioner at the end of the provisional term. A provisional term may not exceed two years. The commissioner shall not approve the appointment for the remainder of the four-year term unless the assessor has obtained senior accreditation.
EFFECTIVE
DATE. This section is
effective beginning July 1, 2013.
Sec. 16. Minnesota Statutes 2012, section 273.0645, is amended to read:
273.0645
COMMISSIONER REVIEW OF LOCAL ASSESSMENT PRACTICES.
Subdivision 1. Local assessment practices. The commissioner of revenue must review the assessment practices in a taxing jurisdiction if requested in writing by a qualifying number of property owners in that taxing jurisdiction. The request must be signed by the greater of:
(1) ten percent of the registered voters who voted in the last general election; or
(2) five property owners.
The request must identify the city, town, or county and describe why a review is sought for that taxing jurisdiction. The commissioner must conduct the review in a reasonable amount of time and report the findings to the county board of the affected county, to the affected city council or town board, if the review is for a specific city or town, and to the property owner designated in the request as the person to receive the report on behalf of all the property owners who signed the request. The commissioner must also provide the report electronically to all property owners who signed the request and provided an e-mail address in order to receive the report electronically.
Subd. 2. Nonfeasance,
misfeasance, and malfeasance. County
assessors may file a written complaint with the commissioner of revenue
detailing allegations of nonfeasance, misfeasance, or malfeasance by a local assessor. After receiving a complaint from a county
assessor, the commissioner must complete an investigation and recommend an
appropriate action to the State Board of Assessors. The commissioner is not required to have a
written complaint from a county assessor in order to conduct an investigation
and recommend an action to the board. Active
investigative data relating to the investigation of complaints against an
assessor by the commissioner of revenue are subject to section 13.39.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 17. Minnesota Statutes 2012, section 273.117, is amended to read:
273.117
CONSERVATION PROPERTY TAX VALUATION.
The value of real property which is subject
to a conservation restriction or easement may be adjusted shall not
be reduced by the assessor if:
(a) the restriction or easement is for a
conservation purpose as defined in section 84.64, subdivision 2, and is
recorded on the property; and
(b) the property is being used in accordance with the terms of the conservation restriction or easement.
This section does not apply to (1)
conservation restrictions or easements covering riparian buffers along lakes,
rivers, and streams that are used for water quantity or quality control; or (2)
to easements in a county that has adopted, by referendum, a program to protect
farmland and natural areas since 1999.
EFFECTIVE
DATE. This section is
effective for assessment year 2013 and thereafter, and for taxes payable in
2014 and thereafter.
Sec. 18. Minnesota Statutes 2012, section 273.13, subdivision 25, is amended to read:
Subd. 25. Class 4. (a) Class 4a is residential real estate containing four or more units and used or held for use by the owner or by the tenants or lessees of the owner as a residence for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt under section 272.02, and contiguous property used for hospital purposes, without regard to whether the property has been platted or subdivided. The market value of class 4a property has a class rate of 1.25 percent.
(b) Class 4b includes:
(1) residential real estate containing less than four units that does not qualify as class 4bb, other than seasonal residential recreational property;
(2) manufactured homes not classified under any other provision;
(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm classified under subdivision 23, paragraph (b) containing two or three units; and
(4) unimproved property that is classified residential as determined under subdivision 33.
The market value of class 4b property has a class rate of 1.25 percent.
(c) Class 4bb includes:
(1) nonhomestead residential real estate containing
one unit, other than seasonal residential recreational property; and
(2) a single family dwelling, garage,
and surrounding one acre of property on a nonhomestead farm classified under
subdivision 23, paragraph (b).
Class 4bb property has the same class rates as class 1a property under subdivision 22.
Property that has been classified as seasonal residential recreational property at any time during which it has been owned by the current owner or spouse of the current owner does not qualify for class 4bb.
(d) Class 4c property includes:
(1) except as provided in subdivision 22, paragraph (c), real and personal property devoted to commercial temporary and seasonal residential occupancy for recreation purposes, for not more than 250 days in the year preceding the year of assessment. For purposes of this clause, property is devoted to a commercial purpose on a specific day if any portion of the property is used for residential occupancy, and a fee is charged for residential occupancy. Class 4c property under this clause must contain three or more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site equipped with water and electrical hookups for recreational vehicles. A camping pad offered for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c under this clause regardless of the term of the rental agreement, as long as the use of the camping pad does not exceed 250 days. In order for a property to be classified under this clause, either (i) the business located on the property must provide recreational activities, at least 40 percent of the annual gross lodging receipts related to the property must be from business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid bookings by lodging guests during the year must be for periods of at least two consecutive nights; or (B) at least 20 percent of the annual gross receipts must be from charges for providing recreational activities, or (ii) the business must contain 20 or fewer rental units, and must be located in a township or a city with a population of 2,500 or less located outside the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion of a state trail administered by the Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c property also includes commercial use real property used exclusively for recreational purposes in conjunction with other class 4c property classified under this clause and devoted to temporary and seasonal residential occupancy for recreational purposes, up to a total of two acres, provided the property is not devoted to commercial recreational use for more than 250 days in the year preceding the year of assessment and is located within two miles of the class 4c property with which it is used. In order for a property to qualify for classification under this clause, the owner must submit a declaration to the assessor designating the cabins or units occupied for 250 days or less in the year preceding the year of assessment by January 15 of the assessment year. Those cabins or units and a proportionate share of the land on which they are located must be designated class 4c under this clause as otherwise provided. The remainder of the cabins or units and a proportionate share of the land on which they are located will be designated as class 3a. The owner of property desiring designation as class 4c property under this clause must provide guest registers or other records demonstrating that the units for which class 4c designation is sought were not occupied for more than 250 days in the year preceding the assessment if so requested. The portion of a property operated as a (1) restaurant, (2)
bar, (3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility operated on a commercial basis not directly related to temporary and seasonal residential occupancy for recreation purposes does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country ski equipment; providing marina services, launch services, or guide services; or selling bait and fishing tackle;
(2) qualified property used as a golf course if:
(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, but a membership fee may not be required in order to use the property for golfing, and its green fees for golfing must be comparable to green fees typically charged by municipal courses; and
(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with the golf course is classified as class 3a property;
(3) real property up to a maximum of three acres of land owned and used by a nonprofit community service oriented organization and not used for residential purposes on either a temporary or permanent basis, provided that:
(i) the property is not used for a revenue-producing activity for more than six days in the calendar year preceding the year of assessment; or
(ii) the organization makes annual charitable contributions and donations at least equal to the property's previous year's property taxes and the property is allowed to be used for public and community meetings or events for no charge, as appropriate to the size of the facility.
For purposes of this clause:
(A) "charitable contributions and donations" has the same meaning as lawful gambling purposes under section 349.12, subdivision 25, excluding those purposes relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
(B) "property taxes" excludes the state general tax;
(C) a "nonprofit community service oriented organization" means any corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, fraternal, civic, or educational purposes, and which is exempt from federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal Revenue Code; and
(D) "revenue-producing activities" shall include but not be limited to property or that portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling alley, a retail store, gambling conducted by organizations licensed under chapter 349, an insurance business, or office or other space leased or rented to a lessee who conducts a for-profit enterprise on the premises.
Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use of the property for social events open exclusively to members and their guests for periods of less than 24 hours, when an admission is not charged nor any revenues are received by the organization shall not be considered a revenue-producing activity.
The organization shall maintain records of its charitable contributions and donations and of public meetings and events held on the property and make them available upon request any time to the assessor to ensure eligibility. An organization meeting the requirement under item (ii) must file an application by May 1 with the assessor for eligibility for the current year's assessment. The commissioner shall prescribe a uniform application form and instructions;
(4) postsecondary student housing of not more than one acre of land that is owned by a nonprofit corporation organized under chapter 317A and is used exclusively by a student cooperative, sorority, or fraternity for on-campus housing or housing located within two miles of the border of a college campus;
(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding manufactured home parks described in section 273.124, subdivision 3a, and (ii) manufactured home parks as defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision 3a;
(6) real property that is actively and exclusively devoted to indoor fitness, health, social, recreational, and related uses, is owned and operated by a not-for-profit corporation, and is located within the metropolitan area as defined in section 473.121, subdivision 2;
(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land is on an airport owned or operated by a city, town, county, Metropolitan Airports Commission, or group thereof; and
(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased premise, prohibits commercial activity performed at the hangar.
If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be filed by the new owner with the assessor of the county where the property is located within 60 days of the sale;
(8) a privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land abuts a public airport; and
(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement restricting the use of the premises, prohibiting commercial use or activity performed at the hangar; and
(9) residential real estate, a portion of which is used by the owner for homestead purposes, and that is also a place of lodging, if all of the following criteria are met:
(i) rooms are provided for rent to transient guests that generally stay for periods of 14 or fewer days;
(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in the basic room rate;
(iii) meals are not provided to the general public except for special events on fewer than seven days in the calendar year preceding the year of the assessment; and
(iv) the owner is the operator of the property.
The market value subject to the 4c classification under this clause is limited to five rental units. Any rental units on the property in excess of five, must be valued and assessed as class 3a. The portion of the property used for purposes of a homestead by the owner must be classified as class 1a property under subdivision 22;
(10) real property up to a maximum of three acres and operated as a restaurant as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) is either devoted to commercial purposes for not more than 250 consecutive days, or receives at least 60 percent of its annual gross receipts from business conducted during four consecutive months. Gross receipts from the sale of alcoholic beverages must be included in determining the property's qualification under subitem (B). The property's primary business must be as a restaurant and not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. Owners of real property desiring 4c classification under this clause must submit an annual declaration to the assessor by February 1 of the current assessment year, based on the property's relevant information for the preceding assessment year;
(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public and devoted to recreational use for marina services. The marina owner must annually provide evidence to the assessor that it provides services, including lake or river access to the public by means of an access ramp or other facility that is either located on the property of the marina or at a publicly owned site that abuts the property of the marina. No more than 800 feet of lakeshore may be included in this classification. Buildings used in conjunction with a marina for marina services, including but not limited to buildings used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified as class 3a property; and
(12) real and personal property devoted to noncommercial temporary and seasonal residential occupancy for recreation purposes.
Class 4c property has a class rate of 1.5 percent of market value, except that (i) each parcel of noncommercial seasonal residential recreational property under clause (12) has the same class rates as class 4bb property, (ii) manufactured home parks assessed under clause (5), item (i), have the same class rate as class 4b property, and the market value of manufactured home parks assessed under clause (5), item (ii), has the same class rate as class 4d property if more than 50 percent of the lots in the park are occupied by shareholders in the cooperative corporation or association and a class rate of one percent if 50 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential recreational property and marina recreational land as described in clause (11), has a class rate of one percent for the first $500,000 of market value, and 1.25 percent for the remaining market value, (iv) the market value of property described in clause (4) has a class rate of one percent, (v) the market value of property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
(e) Class 4d property is qualifying low-income rental housing certified to the assessor by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of the units in the building qualify as low-income rental housing units as certified under section 273.128, subdivision 3, only the proportion of qualifying units to the total number of units in the building qualify for class 4d. The remaining portion of the building shall be classified by the assessor based upon its use. Class 4d also includes the same proportion of land as the qualifying low-income rental housing units are to the total units in the building. For all properties qualifying as class 4d, the market value determined by the assessor must be based on the normal approach to value using normal unrestricted rents.
(f) The first tier of market value of
class 4d property has a class rate of 0.75 percent. The remaining value of class 4d property
has a class rate of 0.25 percent. For
the purposes of this paragraph, the "first tier of market value of class
4d property" means the market value of each housing unit up to the first
tier limit. For the purposes of this
paragraph, all class 4d property value must be assigned to individual housing
units. The first tier limit is $100,000
for assessment year 2014. For subsequent
years, the limit is adjusted each year by the average statewide change in
estimated market value of
property classified as class 4a and 4d under this section for the previous
assessment year, excluding valuation change due to new construction, rounded to
the nearest $1,000, provided, however, that the limit may never be less than
$100,000. Beginning with assessment year
2015, the commissioner of revenue must certify the limit for each assessment
year by November 1 of the previous year.
EFFECTIVE
DATE. This section is effective
beginning with assessment year 2014.
Sec. 19. Minnesota Statutes 2012, section 279.01, subdivision 1, is amended to read:
Subdivision 1. Due
dates; penalties. Except as provided
in subdivision subdivisions 3 or 4 to 5, on May 16
or 21 days after the postmark date on the envelope containing the property tax
statement, whichever is later, a penalty accrues and thereafter is charged upon
all unpaid taxes on real estate on the current lists in the hands of the county
treasurer. The penalty is at a rate of
two percent on homestead property until May 31 and four percent on June 1. The penalty on nonhomestead property is at a
rate of four percent until May 31 and eight percent on June 1. This penalty does not accrue until June 1 of
each year, or 21 days after the postmark date on the envelope containing the
property tax statements, whichever is later, on commercial use real property
used for seasonal residential recreational purposes and classified as class 1c
or 4c, and on other commercial use real property classified as class 3a,
provided that over 60 percent of the gross income earned by the enterprise on
the class 3a property is earned during the months of May, June, July, and
August. In order for the first half of
the tax due on class 3a property to be paid after May 15 and before June 1, or
21 days after the postmark date on the envelope containing the property tax
statement, whichever is later, without penalty, the owner of the property must
attach an affidavit to the payment attesting to compliance with the income
provision of this subdivision. Thereafter,
for both homestead and nonhomestead property, on the first day of each month
beginning July 1, up to and including October 1 following, an additional
penalty of one percent for each month accrues and is charged on all such unpaid
taxes provided that if the due date was extended beyond May 15 as the result of
any delay in mailing property tax statements no additional penalty shall accrue
if the tax is paid by the extended due date.
If the tax is not paid by the extended due date, then all penalties that
would have accrued if the due date had been May 15 shall be charged. When the taxes against any tract or lot
exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the
postmark date on the envelope containing the property tax statement, whichever
is later; and, if so paid, no penalty attaches; the remaining one-half may be
paid at any time prior to October 16 following, without penalty; but, if not so
paid, then a penalty of two percent accrues thereon for homestead property and
a penalty of four percent on nonhomestead property. Thereafter, for homestead property, on the
first day of November an additional penalty of four percent accrues and on the
first day of December following, an additional penalty of two percent accrues
and is charged on all such unpaid taxes.
Thereafter, for nonhomestead property, on the first day of November and
December following, an additional penalty of four percent for each month
accrues and is charged on all such unpaid taxes. If one-half of such taxes are not paid prior
to May 16 or 21 days after the postmark date on the envelope containing the
property tax statement, whichever is later, the same may be paid at any time
prior to October 16, with accrued penalties to the date of payment added, and
thereupon no penalty attaches to the remaining one-half until October 16
following.
This section applies to payment of personal property taxes assessed against improvements to leased property, except as provided by section 277.01, subdivision 3.
A county may provide by resolution that in the case of a property owner that has multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in installments as provided in this subdivision.
The county treasurer may accept payments of more or less than the exact amount of a tax installment due. Payments must be applied first to the oldest installment that is due but which has not been fully paid. If the accepted payment is less than the amount due, payments must be applied first to the penalty accrued for the year or the installment being paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum payment required as a condition for filing an appeal under section 278.03 or any other law, nor does it affect the order of payment of delinquent taxes under section 280.39.
Sec. 20. Minnesota Statutes 2012, section 279.01, is amended by adding a subdivision to read:
Subd. 5. Federal
active service exception. In
the case of a homestead property owned by an individual who is on federal
active service, as defined in section 190.05, subdivision 5c, as a member of
the National Guard or a reserve component, a four-month grace period is granted
for complying with the due dates imposed by subdivision 1. During this period, no late fees or penalties
shall accrue against the property. The
due date for property taxes owed under this chapter for an individual covered
by this subdivision shall be September 15 for taxes due on May 15, and February
15 of the following year for taxes due on October 15. A taxpayer making a payment under this
subdivision must accompany the payment with a signed copy of the taxpayer's
orders or form DD214 showing the dates of active service which clearly indicate
that the taxpayer was in active service as a member of the National Guard or a
reserve component on the date the payment was due. This grace period applies to all homestead
property owned by individuals on federal active service, as herein defined, for
all of that property's due dates which fall on a day that is included in the
taxpayer's federal active service.
Sec. 21. Minnesota Statutes 2012, section 279.02, is amended to read:
279.02
DUTIES OF COUNTY AUDITOR AND TREASURER.
Subdivision 1. Delinquent property; rates. On the first business day in January, of each year, the county treasurer shall return the tax lists on hand to the county auditor, who shall compare the same with the statements receipted for by the treasurer on file in the auditor's office and each tract or lot of real property against which the taxes, or any part thereof, remain unpaid, shall be deemed delinquent, and thereupon an additional penalty of two percent on the amount of the original tax remaining unpaid shall immediately accrue and thereafter be charged upon all such delinquent taxes; and any auditor who shall make out and deliver any statement of delinquent taxes without including therein the penalties imposed by law, and any treasurer who shall receive payment of such taxes without including in such payment all items as shown on the auditor's statement, shall be liable to the county for the amounts of any items omitted.
Subd. 2. Federal
active service exception. Notwithstanding
subdivision 1, a homestead property owned by an individual who is on federal
active service, as defined in section 190.05, subdivision 5c, as a member of
the National Guard or a reserve component, shall not be deemed delinquent under
this section if the due dates imposed under section 279.01 fall on a day in
which the individual was on federal active service.
Sec. 22. Minnesota Statutes 2012, section 279.37, subdivision 1a, is amended to read:
Subd. 1a. Class
3a property. (a) The delinquent
taxes upon a parcel of property which was classified class 3a, for the previous
year's assessment and had a total market value of $500,000 or less for that
same assessment shall be eligible to be composed into a confession of
judgment with the approval of the county auditor. Property qualifying under this subdivision
shall be subject to the same provisions as provided in this section except as
provided in paragraphs (b) to (d) (f).
(b) Current year taxes and penalty due at the time the confession of judgment is entered must be paid.
(c) The down payment must include all special
assessments due in the current tax year, all delinquent special assessments,
and 20 percent of the ad valorem tax, penalties, and interest accrued against
the parcel. The balance remaining is
payable in four equal annual installments.
A municipality as defined in section 429.011, cities of the first
class, and other special assessment authorities, that have certified special
assessments against any parcel of property, may, through resolution, waive the
requirement of payment of all current and delinquent special assessments at the
time the confession is entered. If the
municipality, city, or authority grants the waiver, 100 percent of all current
year taxes, special assessments, and penalties due at the time, along with 20
percent of all delinquent taxes, special assessments, penalties, interest, and
fees must be paid. The balance remaining
shall be subject to and included in the installment plan.
(d) When there are current and
delinquent special assessments certified and billed against a parcel, the
assessment authority or municipality as defined in section 429.011 may abate
under section 375.192, subdivision 2, all special assessments and the penalty
and interest affiliated with the special assessments, and reassess the special
assessments, penalties, and interest accrued thereon, under section 429.071,
subdivision 2. The municipality shall
notify the county auditor of its intent to reassess as a precondition to the
entry of the confession of judgment. Upon
the notice to abate and reassess, the municipality shall, through resolution,
notify the county auditor to remove all current and delinquent special
assessments and the accrued penalty and interest on the special assessments,
and the payment of all or a portion of the current and delinquent assessments
shall not be required as part of the down payment due at the time the
confession of judgment is entered in accordance with paragraph (c).
(d) (e) The amounts entered in
judgment bear interest at the rate provided in section 279.03, subdivision 1a,
commencing with the date the judgment is entered. The interest rate is subject to change each
year on the unpaid balance in the manner provided in section 279.03, subdivision
1a.
(f) The county auditor may require
conditions on properties including, but not limited to, environmental
remediation action plan requirements, restrictions, or covenants, when
considering a request for approval of eligibility for composition into a
confession of judgment for delinquent taxes upon a parcel of property which was
classified class 3a for the previous year's assessment.
Sec. 23. Minnesota Statutes 2012, section 279.37, subdivision 2, is amended to read:
Subd. 2. Installment
payments. The owner of any such
parcel, or any person to whom the right to pay taxes has been given by statute,
mortgage, or other agreement, may make and file with the county auditor of the
county in which the parcel is located a written offer to pay the current taxes
each year before they become delinquent, or to contest the taxes under
Minnesota Statutes 1941, sections 278.01 to 278.13, and agree to confess
judgment for the amount provided, as determined by the county auditor. By filing the offer, the owner waives all
irregularities in connection with the tax proceedings affecting the parcel and
any defense or objection which the owner may have to the proceedings, and also
waives the requirements of any notice of default in the payment of any
installment or interest to become due pursuant to the composite judgment to be
so entered. Unless the property is
subject to subdivision 1a, with the offer, the owner shall (i) tender
one-tenth of the amount of the delinquent taxes, costs, penalty, and interest,
and shall (ii) tender all current year taxes and penalty due at
the time the confession of judgment is entered.
In the offer, the owner shall agree to pay the balance in nine equal
installments, with interest as provided in section 279.03, payable annually on
installments remaining unpaid from time to time, on or before December 31 of each year following the year in
which judgment was confessed. The offer
must be substantially as follows:
"To the court administrator of the district court of ........... county, I, ....................., am the owner of the following described parcel of real estate located in .................... county, Minnesota:
.............................. Upon that real estate there are delinquent taxes for the year ........., and prior years, as follows: (here insert year of delinquency and the total amount of delinquent taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and any defense or objection which I may have to them, and direct judgment to be entered for the amount stated above, minus the sum of $............, to be paid with this document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. I agree to pay the balance of the judgment in nine or four equal, annual installments, with interest as provided in section 279.03, payable annually, on the installments remaining unpaid. I agree to pay the installments and interest on or before December 31 of each year following the year in which this judgment is confessed and current taxes each year before they become delinquent, or within 30 days after the entry of final judgment in proceedings to contest the taxes under Minnesota Statutes, sections 278.01 to 278.13.
Dated .............., ......."
Sec. 24. Minnesota Statutes 2012, section 281.14, is amended to read:
281.14
EXPIRATION OF TIME FOR REDEMPTION.
The time for redemption from any tax sale,
whether made to the state or to a private person, shall not expire until notice
of expiration of redemption, as provided in section 281.13 281.17,
shall have been given.
Sec. 25. Minnesota Statutes 2012, section 281.17, is amended to read:
281.17
PERIOD FOR REDEMPTION.
Except for properties for which the period of redemption has been limited under sections 281.173 and 281.174, the following periods for redemption apply.
The period of redemption for all lands sold
to the state at a tax judgment sale shall be three years from the date of sale
to the state of Minnesota if the land is within an incorporated area unless
it is: (a) nonagricultural homesteaded
land as defined in section 273.13, subdivision 22; (b) homesteaded agricultural
land as defined in section 273.13, subdivision 23, paragraph (a); or (c)
seasonal residential recreational land as defined in section 273.13,
subdivision 22, paragraph (c), or 25, paragraph (d), clause (1), for which the
period of redemption is five years from the date of sale to the state of
Minnesota.
The period of redemption for homesteaded lands as defined in section 273.13, subdivision 22, located in a targeted neighborhood as defined in Laws 1987, chapter 386, article 6, section 4, and sold to the state at a tax judgment sale is three years from the date of sale. The period of redemption for all lands located in a targeted neighborhood as defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as defined in section 273.13, subdivision 22, and (2) for periods of redemption beginning after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted neighborhood on which a notice of lis pendens has been served, and sold to the state at a tax judgment sale is one year from the date of sale.
The period of redemption for all real property constituting a mixed municipal solid waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is one year from the date of the sale to the state of Minnesota.
The period of redemption for all other
lands sold to the state at a tax judgment sale shall be five years from the
date of sale, except that the period of redemption for nonhomesteaded
agricultural land as defined in section 273.13, subdivision 23, paragraph (b),
shall be two years from the date of sale if at that time that property is owned
by a person who owns one or more parcels of property on which taxes are delinquent,
and the delinquent taxes are more than 25 percent of the prior year's school
district levy.
Sec. 26. Minnesota Statutes 2012, section 287.05, is amended by adding a subdivision to read:
Subd. 10. Hennepin
and Ramsey Counties. For
properties located in Hennepin and Ramsey Counties, the county may impose an
additional mortgage registry tax as defined in sections 383A.80 and 383B.80.
EFFECTIVE
DATE. This section is
effective for deeds and mortgages acknowledged on or after July 1, 2013.
Sec. 27. [287.40]
HENNEPIN AND RAMSEY COUNTIES.
For properties located in Hennepin and
Ramsey Counties, the county may impose an additional deed tax as defined in
sections 383A.80 and 383B.80.
EFFECTIVE
DATE. This section is
effective for deeds and mortgages acknowledged on or after July 1, 2013.
Sec. 28. Minnesota Statutes 2012, section 383A.80, subdivision 4, is amended to read:
Subd. 4.
Expiration. The authority to impose the tax under
this section expires January 1, 2013 2028.
EFFECTIVE DATE. This section is effective for all deeds and
mortgages acknowledged on or after July 1, 2013.
Sec. 29. Minnesota Statutes 2012, section 383B.80, subdivision 4, is amended to read:
Subd. 4.
Expiration. The authority to impose the tax under
this section expires January 1, 2013 2028.
EFFECTIVE DATE. This section is effective for all deeds and
mortgages acknowledged on or after July 1, 2013.
Sec. 30. Minnesota Statutes 2012, section 428A.101, is amended to read:
428A.101
DEADLINE FOR SPECIAL SERVICE DISTRICT UNDER GENERAL LAW.
The establishment of a new special service
district after June 30, 2013 2028, requires enactment of a
special law authorizing the establishment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 31. Minnesota Statutes 2012, section 428A.21, is amended to read:
428A.21
DEADLINE FOR HOUSING IMPROVEMENT DISTRICTS UNDER GENERAL LAW.
The establishment of a new housing
improvement area after June 30, 2013 2028, requires enactment of
a special law authorizing the establishment of the area.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 32. Minnesota Statutes 2012, section 473F.08, subdivision 3a, is amended to read:
Subd. 3a. Bloomington
computation. (a) Beginning in
1987 and each subsequent year through 1998, the city of Bloomington shall
determine the interest payments for that year for the bonds which have been
sold for the highway improvements pursuant to Laws 1986, chapter 391, section
2, paragraph (g). Effective for property
taxes payable in 1988 through property taxes payable in 1999, after the
Hennepin County auditor has computed the areawide portion of the levy for the
city of Bloomington pursuant to subdivision 3, clause (a), the auditor shall
annually add a dollar amount to the city of Bloomington's areawide portion of
the levy equal to the amount which has been certified to the auditor by the
city of Bloomington for the interest payments for that year for the bonds which
were sold for highway improvements. The
total areawide portion of the levy for the city of Bloomington including the
additional amount for interest repayment certified pursuant to this subdivision
shall be certified by the Hennepin County auditor to the administrative auditor
pursuant to subdivision 5. The Hennepin
County auditor shall distribute to the city of Bloomington the additional
areawide portion of the levy computed pursuant to this subdivision at the same
time that payments are made to the other counties pursuant to subdivision 7a. For property taxes payable from the year 2009
through 2018 2014, the Hennepin County auditor shall adjust
Bloomington's contribution to the areawide gross tax capacity upward each year
by a value equal to ten percent of the total additional areawide levy
distributed to Bloomington under this subdivision from 1988 to 1999, divided by
the areawide tax rate for taxes payable in the previous year.
(b) For property taxes payable from 2015
through 2018, the administrative auditor shall increase the areawide net tax
capacity each year by an amount equal to ten percent of the total additional
areawide levy distributed to Bloomington under this subdivision from 1988 to
1999, divided by the areawide tax rate for taxes payable in the
previous year. The administrative auditor must notify the
commissioner of revenue of the amount determined by multiplying the increase in
the areawide net tax capacity by the areawide tax rate determined under
subdivision 5. The commissioner of
revenue must pay the amount determined each payable year to the administrative
auditor in two installments on July 10 and November 10, for distribution and
settlement as provided in subdivision 7a.
(c) A sum sufficient to meet the
obligations under this subdivision is annually appropriated from the general
fund to the commissioner of revenue.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2015.
Sec. 33. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter 154, article 2, section 30, is amended to read:
Sec. 3. TAX;
PAYMENT OF EXPENSES.
(a) The tax levied by the hospital district under Minnesota Statutes, section 447.34, must not be levied at a rate that exceeds the amount authorized to be levied under that section. The proceeds of the tax may be used for all purposes of the hospital district, except as provided in paragraph (b).
(b) 0.015 percent of taxable market value of
the tax in paragraph (a) may be used solely by the Cook ambulance
service and the Orr ambulance service for the purpose of capital
expenditures as it relates to:
(1) ambulance acquisitions for the
Cook ambulance service and the Orr ambulance service and not;
(2) attached and portable equipment for
use in and for the ambulances; and
(3) parts and replacement parts for
maintenance and repair of the ambulances.
The money may not be used for administrative, operation, or salary expenses.
(c) The part of the levy referred to
in paragraph (b) must be administered by the Cook Hospital and passed on in
equal amounts directly to the Cook area ambulance service board and the
city of Orr to be held in trust until funding for a new ambulance is needed
by either the Cook ambulance service or the Orr ambulance service used
for the purposes in paragraph (b).
Sec. 34. Laws 1999, chapter 243, article 6, section 11, is amended to read:
Sec. 11. CEMETERY
LEVY FOR SAWYER BY CARLTON COUNTY.
Subdivision 1. Levy
authorized. Notwithstanding
other law to the contrary, the Carlton county board of commissioners may annually
levy in and for the unorganized township territory of Sawyer an
amount up to $1,000 annually for cemetery purposes, beginning with
taxes payable in 2000 and ending with taxes payable in 2009.
Subd. 2. Effective
date. This section is effective June
1, 1999, without local approval.
EFFECTIVE
DATE; LOCAL APPROVAL. This
section applies to taxes payable in 2014 and thereafter, and is effective the
day after the Carlton County Board of Commissioners and its chief clerical
officer timely complete their compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
Sec. 35. Laws 2008, chapter 366, article 5, section 33, the effective date, is amended to read:
EFFECTIVE
DATE. This section is effective for
taxes levied in 2008, payable in 2009, and is repealed effective for taxes
levied in 2013 2018, payable in 2014 2019, and
thereafter.
EFFECTIVE
DATE. This section is
effective beginning with taxes payable in 2014.
Sec. 36. Laws 2009, chapter 88, article 2, section 46, subdivision 1, is amended to read:
Subdivision 1. Agreement. The city of Cloquet and Perch Lake
Township, by resolution of each of their governing bodies, may establish the
Cloquet Area Fire and Ambulance Taxing District for the purpose of providing
fire and or ambulance services, or both, throughout the
district. In this section,
"municipality" means home rule charter and statutory cities, towns,
and Indian tribes. The district may
exercise all the powers relating to fire and ambulance services of the
municipalities that receive fire and or ambulance services, or
both, from the district. Upon
application, any other municipality that is contiguous to a municipality
that is a member of the district may join
the district with the agreement of the municipalities that comprise the
district at the time of its application to join.
Sec. 37. Laws 2009, chapter 88, article 2, section 46, subdivision 3, is amended to read:
Subd. 3. Tax. The district board may impose a property
tax on taxable property in the district as provided in this
subdivision. This The
board shall annually determine the total amount of the levy that is
attributable to the cost of providing fire services and the cost of providing
ambulance services within the primary service area. For those municipalities that only receive
ambulance services, the costs for the provision of ambulance services shall be
levied against taxable property within those municipalities at a rate necessary
not to exceed 0.019 percent of the estimated market value. For those municipalities that receive both
fire and ambulance services, the tax shall be imposed at a rate that does
not exceed 0.2835 percent of taxable estimated market value for
taxes payable in 2010. The board shall
annually determine the separate amounts of the levy that are attributable to
the cost of providing fire services and the cost of providing ambulance
services. Costs for the provision of
ambulance services shall be levied against taxable property within the area of
the district that receive the services. Costs
for the provision of fire services shall be levied against taxable property
within the area of the district that receive the services.
When a member municipality opts to
receive fire service from the district or an additional municipality
becomes a member of the district, the additional cost of providing ambulance
and fire services to that municipality will community shall
be determined by the board and added to the maximum levy amount.
Each county auditor of a county that contains a municipality subject to the tax under this section must collect the tax and pay it to the Fire and Ambulance Special Taxing District. The district may also impose other fees or charges as allowed by law for the provision of fire and ambulance services.
Sec. 38. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to read:
EFFECTIVE
DATE. This section is effective for
assessment years year 2010 and 2011, for taxes payable in 2011
and 2012 thereafter.
EFFECTIVE
DATE. This section is
effective for assessment year 2012 and thereafter.
Sec. 39. MINNEAPOLIS
AND ST. PAUL ENTERTAINMENT FACILITIES COORDINATION STUDY; APPROPRIATION.
Subdivision 1. Statement
of purpose. The legislature
finds that the national economic structure of professional sports financing, as
directly or indirectly sanctioned by federal law, compels state and local
governments in smaller metropolitan areas, such as Minneapolis and St. Paul,
to help finance the construction and operation of venues for
professional
sports franchises as a condition of hosting these franchises. The burden and risk associated with providing
this assistance justifies authorizing and directing the cities and any
associated private entities to enter into arrangements that attempt to maximize
the combined revenues of these facilities from direct users, including those
unrelated to professional sports, such as, but not limited to, joint booking of
concerts and other events, to minimize the cost and risk to general taxpayers. Any efforts to put in place such joint
marketing, promotion, and scheduling arrangements by the cities or associated
private entities, in the view of the legislature, is a petition for enactment
of this or subsequent enabling legislation under the Noerr-Pennington doctrine
or state action under the Parker antitrust doctrine. This legislation and any resulting
arrangements are intended to minimize the potential burden on general taxpayers
of financing and operation of the arenas.
Subd. 2. Study
and report. On or before
February 1, 2014, the cities of Minneapolis and St. Paul, in consultation
with representatives of the primary professional sports team tenant of each
arena, shall study and report to the legislature on establishing a joint
governing structure to be responsible for the joint administration, financing,
and operations of the facilities and the possible effects of joint governance
on the finances of each arena and each city.
The commissioner of administration, in consultation with the two cities,
shall contract with an independent consultant to conduct all or a portion of the
study. The cities of Minneapolis and St. Paul
together shall pay one-half of the cost of the consultant contract. The commissioner may accept funding from
other public entities and private organizations to pay for the contract. The study must:
(1) examine the current finances of each
arena including past and projected costs and revenues, projected capital
improvements, and the current and projected impact of each arena on each city's
general fund;
(2) determine the impact of joint
governance on the future finances of each city;
(3) examine joint scheduling, marketing,
and promotion of events at the arenas, either within a joint governance
structure or as separate entities; and
(4) estimate the amount of funding, if
any, that would be required to operate and maintain the arenas under a joint
governing structure.
Subd. 3. Appropriation. Up to $50,000 is appropriated to the
commissioner of administration from the general fund for fiscal year 2014 to
pay up to one-half of the costs of the consultant contract under subdivision 2.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 40. REIMBURSEMENT
FOR PROPERTY TAX ABATEMENTS; APPROPRIATION.
Subdivision 1. Reimbursement. The commissioner of revenue shall
reimburse taxing jurisdictions for property tax abatements granted in Hennepin
County under Laws 2011, First Special Session chapter 7, article 5, section 13,
notwithstanding the time limits contained in that section. The reimbursements must be made to each
taxing jurisdiction pursuant to the certification of the Hennepin County
auditor.
Subd. 2. Appropriation. In fiscal year 2014 only, $336,000 is
appropriated to the commissioner of revenue from the general fund to make the
payments required in this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 41. ST. PAUL
BALLPARK PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENT.
Any real or personal property acquired,
owned, leased, controlled, used, or occupied by the city of St. Paul for
the primary purpose of providing a ballpark for a minor league baseball team is
declared to be acquired, owned, leased, controlled, used, and occupied for
public, governmental, and municipal purposes, and is exempt from ad
valorem taxation by the state
or any political subdivision of the state, provided that the properties are
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. In determining the special benefit received
by the properties, no possible use of any of the properties in any manner
different from their intended use for providing a minor league ballpark at the
time may be considered. Notwithstanding
Minnesota Statutes, section 272.01, subdivision 2, or 273.19, real or personal
property subject to a lease or use agreement between the city and another
person for uses related to the purposes of the operation of the ballpark and
related parking facilities is exempt from taxation regardless of the length of
the lease or use agreement. This
section, insofar as it provides an exemption or special treatment, does not
apply to any real property that is leased for residential, business, or
commercial development or other purposes different from those necessary to the
provision and operation of the ballpark.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the city of St. Paul
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 42. PUBLIC
ENTERTAINMENT FACILITY; PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENT.
Any real or personal property acquired,
owned, leased, controlled, used, or occupied by the city of Minneapolis for the
primary purpose of providing an arena for a professional basketball team is
declared to be acquired, owned, leased, controlled, used, and occupied for
public, governmental, and municipal purposes, and is exempt from ad valorem
taxation by the state or any political subdivision of the state, provided that
the properties are 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. In determining the special benefit received
by the properties, no possible use of any of the properties in any manner
different from their intended use for providing a professional basketball arena
at the time may be considered. Notwithstanding
Minnesota Statutes, section 272.01, subdivision 2, or 273.19, real or personal
property subject to a lease or use agreement between the city and another
person for uses related to the purposes of the operation of the arena and
related parking facilities is exempt from taxation regardless of the length of
the lease or use agreement. This
section, insofar as it provides an exemption or special treatment, does not
apply to any real property that is leased for residential, business, or
commercial development, or for other purposes different from those necessary to
the provision and operation of the arena.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the city of
Minneapolis with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 43. PUBLIC
ENTERTAINMENT FACILITY; CONSTRUCTION MANAGER AT RISK.
(a) For any real or personal property
acquired, owned, leased, controlled, used, or occupied by the city of
Minneapolis for the primary purpose of providing an arena for a professional
basketball team, the city of Minneapolis may contract for construction,
materials, supplies, and equipment in accordance with Minnesota Statutes,
section 471.345, except that the city may employ or contract with persons,
firms, or corporations to perform one or more or all of the functions of an
engineer, architect, construction manager, or program manager with respect to
all or any part of a project to renovate, refurbish, and remodel the arena
under either the traditional design-bid-build plan or construction manager at
risk plan, or a combination thereof.
(b) The city may prepare a request for
proposals for one or more of the functions described in paragraph (a). The request must be published in a newspaper
of general circulation. The city may
prequalify offerors by issuing a request for qualifications, in advance of the
request for proposals, and select a short list of responsible offerors to
submit proposals.
(c) As provided in the request
for proposals, the city may conduct discussions and negotiations with
responsible offerors in order to determine which proposal is most advantageous
to the city and to negotiate the terms of an agreement. In conducting discussions, there shall be no
disclosure of any information derived from proposals submitted by competing offerors and the content of all proposals is
nonpublic data under Minnesota Statutes, chapter 13, until such time as
a notice to award a contract is given by the city.
(d) Upon agreement on the guaranteed
maximum price, the construction manager or program manager may enter into
contracts with subcontractors for labor, materials, supplies, and equipment for
the renovation project through the process of public bidding, except that the
construction manager or program manager may, with the consent of the city:
(1) narrow the listing of eligible
bidders to those that the construction manager or program manager determines to
possess sufficient expertise to perform the intended functions;
(2) award contracts to the
subcontractors that the construction manager or program manager determines
provide the best value under a request for proposals, as described in Minnesota
Statutes, section 16C.28, subdivision 1, paragraph (a), clause (2), that are
not required to be the lowest responsible bidder; and
(3) for work the construction manager
or program manager determines to be critical to the completion schedule,
perform work with its own forces without soliciting competitive bids or
proposals, if the construction manager or program manager provides evidence of
competitive pricing.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the city of
Minneapolis with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 44. EXTENSION
OF PROPERTY TAX DUE DATE; COMMERCIAL SEASONAL RECREATIONAL PROPERTIES.
Notwithstanding the provisions of
Minnesota Statutes, section 279.01, subdivision 1, for taxes payable in 2013
only, the penalty on first-half property taxes does not accrue until June 15 on
commercial use real property used for seasonal residential recreational
purposes and classified as class 1c or 4c, and on other commercial use real
property classified as class 3a, provided that over 60 percent of the gross
income earned by the enterprise on the class 3a property is earned during the
months of May, June, July, and August. In
order for the first half of the tax due on class 3a property to be paid after
May 15 and before June 15 without penalty, the owner of the property must
attach an affidavit to the payment attesting to compliance with the income
provision of this subdivision.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 45. REPORT
ON CLASS 4D TIER STRUCTURE.
The commissioners of revenue and
housing finance shall report to the legislature by January 31, 2015, on the
implementation of a second tier of market value for class 4d property under
Minnesota Statutes, section 273.13, subdivision 25, paragraph (f). The report shall include the number of class
4d properties subject to the second tier of market value for taxes payable in
2015 and the tax impact of the application of the second tier of market value. The report shall also include an analysis of
the characteristics of the properties to which the second tier of market value
applies, such as location, building type, and number of units.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 46. REPORT
AND STUDY ON CERTAIN PROPERTY USED IN BUSINESS AND PRODUCTION;
Subdivision 1. Study
and report. (a) In order to
facilitate a legislative review of property tax assessment procedures for
facilities used in the production of biofuels, wine, beer, distilled beverages,
and dairy products, and the development of standards and criteria for
determining the taxable status of these facilities, the commissioner of revenue
must conduct a study and report the findings of the study. The study must:
(1) include a detailed survey of
counties identifying the components and tax status of biofuel facilities;
(2) identify the function of components
in facilities of the affected industries;
(3) consider the taxability for certain
components related to size, function, and use;
(4) develop recommendations for
assessment guidelines and policies for facilities of the affected industries;
and
(5) identify possible impacts to state
and local taxes resulting from study recommendations.
(b) The commissioner shall request the
involvement and participation of stakeholders, including the affected
industries, the assessment community, and others identified by the
commissioner.
(c) The commissioner shall report the
findings to the chairs of the house of representatives and senate committees
with jurisdiction over taxes, agriculture, and economic development as well as
the commissioners of agriculture and employment and economic development by
February 1, 2014.
Subd. 2. Moratorium
on changes in assessment practices. (a)
For the 2013 and 2014 assessments, assessors must continue to use assessment
practices or policies in effect in that county on January 2, 2012, for
determining the taxable status of property used in the production of biofuels,
wine, beer, distilled beverages, or dairy products.
(b) An assessor must not change the
taxable status of any existing property described in paragraph (a) from its
status on January 2, 2012, unless the change is due to a change in the use of
property, or to correct an error. For
taxable properties, the assessor may change the estimated market value of the
property and add value for any new construction that would have been taxable
under practices and policies in place on January 2, 2012.
(c) This subdivision expires on
December 31, 2014. Any changes to the
taxable status of the properties in paragraph (a) resulting from the study will
not be effective until the 2015 assessment.
Sec. 47. PROPERTY
TAX SAVINGS REPORT.
(a) In addition to the certification of
its proposed property tax levy under Minnesota Statutes, section 275.065, each
city that has a population over 500 and each county shall also include the
amount of sales and use tax paid, or was estimated to be paid, in 2012.
(b) At the time the notice of the
proposed property taxes is mailed as required under Minnesota Statutes, section
275.065, subdivision 3, the county treasurer shall also include a separate
statement providing a list of sales and use tax certified by the county and
cities within their jurisdiction.
(c) At the public hearing required
under Minnesota Statutes, section 275.065, subdivision 3, the county and city
must discuss the estimated savings realized to their budgets that resulted from
the sales tax exemption authorized under Minnesota Statutes, section 297A.70,
subdivision 2, and how those savings will be used for property tax levy
reductions, fee reductions, and other purposes as deemed appropriate.
Reasonable costs of preparing
the notice required in this section must be apportioned between taxing
jurisdictions as follows:
(1) one-half is allocated to the
county; and
(2) one-half is allocated among the
cities.
The amount allocated in clause (2) must
be further apportioned among all the cities in the proportion that the number
of parcels in the city bears to the number of parcels in all the cities that
have populations over 500.
EFFECTIVE
DATE. This section is
effective the day following final enactment, for taxes levied in 2013 and
payable in 2014.
Sec. 48. LEVY
LIMITS FOR TAXES LEVIED IN 2013.
Subdivision 1. Population. "Population" means the
population for the local governmental unit as established by the last federal
census, by a census taken under section Minnesota Statutes, section 275.14, or
by an estimate made by the metropolitan council or by the state demographer
under Minnesota Statutes, section 4A.02, whichever is most recent as to the
stated date of the count or estimate up to and including June 1 of the current
levy year.
Subd. 2. Local
government unit. "Local
governmental unit" means a county with a population greater than 5,000, or
a statutory or home rule charter city with a population greater than 2,500.
Subd. 3. Levy
limit base. "Levy limit
base" for a local governmental unit for levy year 2013 means the sum of
its certified net tax capacity levy plus the total of aids and reimbursements
that the local governmental unit is certified to receive under Minnesota
Statutes, sections 477A.011 to 477A.014, minus any amounts that would qualify
as a special levy under Minnesota Statutes, section 275.70, subdivision 5,
clauses (1) to (4) and (7), for taxes levied in 2011 or 2012, whichever is
greater. The levy limit base must be
increased by three percent.
Subd. 4. Property tax levy limit. For taxes levied in 2013, the net tax capacity levy limit for a local governmental unit is equal to its levy limit base determined under subdivision 3 plus any additional levy authorized under Minnesota Statutes, section 275.73, which is levied against net tax capacity, reduced by the total amount of aids and reimbursements that the local governmental unit is certified to receive under Minnesota Statutes, sections 477A.011 to 477A.014. The property tax levy limit for any local government cannot be less than the greater of its certified net tax capacity levies for taxes levied in 2011 or 2012.
Subd. 5. Limit
on levies. Notwithstanding
any other provision of law or municipal charter to the contrary which authorize
ad valorem taxes in excess of the limits established by this section, the
provisions of this section apply to local governmental units for all purposes other
than those for which special levies under Minnesota Statutes, section 275.70,
subdivision 5, clauses (1) to (5) and (7), and special assessments are made.
Subd. 6. Levies
in excess of levy limits. If
the levy made by a city or county exceeds the levy limit provided in this
section, except when the excess levy is due to the rounding of the rate in
accordance with Minnesota Statutes, section 275.28, the county auditor shall
only extend the amount of taxes permitted under this section as provided for in
Minnesota Statutes, section 275.16.
Subd. 7. Calculation
and notification. The
commissioner of revenue shall make all necessary calculations for determining
levy limits for local governmental units and notify the affected governmental
units of their levy limits directly by September 1, 2013. The local governmental units shall, upon
request, provide the commissioner with any information needed to make the
calculations. The local governmental
unit shall report by September 30, in a manner prescribed by the commissioner,
the maximum amount of taxes it plans to levy for each of the purposes
listed under special levies and
any additional levy authorized under Minnesota Statutes, section 275.73, along
with any necessary documentation. The
commissioner shall review the proposed special levies and make any adjustments
needed. The commissioner's decision is
final. The final allowed special levy
amounts and any levy limit adjustments must be certified back to the local
governments by December 10. In addition,
the commissioner of revenue shall notify all county auditors on or before five
working days after December 20 of the sum of the levy limit plus the total of
allowed special levies for each local governmental unit located within their
boundaries so that they may fix the levies as required in Minnesota Statutes,
section 275.16. The local governmental
units shall provide the commissioner of revenue with all information that the
commissioner deems necessary to make the calculations provided for in this
section.
Subd. 8. Information
necessary to calculate levy limit base.
A local governmental unit must provide the commissioner with the
information required to calculate the amount under subdivision 3, by July 20,
2013. If the information is not received
by the commissioner by that date, or is not deemed sufficient to make the
calculation under that clause, the commissioner has the discretion to set the
local governmental unit's levy limit for all purposes including those purposes
for which special levies may be made, equal to the amount of the local
governmental unit's certified levy for the prior year.
EFFECTIVE
DATE. This section is
effective for taxes levied in 2013, payable in 2014, only.
Sec. 49. APPROPRIATION.
$2,000,000 in fiscal year 2014 only is
appropriated from the general fund to the commissioner of revenue for a grant
to the city of Moose Lake to reimburse for costs related to connection of state
facilities to the sewer line.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
ARTICLE 5
SPECIAL TAXES
Section 1. Minnesota Statutes 2012, section 270C.56, subdivision 1, is amended to read:
Subdivision 1. Liability
imposed. A person who, either singly
or jointly with others, has the control of, supervision of, or responsibility
for filing returns or reports, paying taxes, or collecting or withholding and
remitting taxes and who fails to do so, or a person who is liable under any
other law, is liable for the payment of taxes arising under chapters 295, 296A,
297A, 297F, and 297G, or sections 256.9658, 290.92, and 297E.02, and the
applicable penalties and interest on those taxes.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 2. Minnesota Statutes 2012, section 296A.09, subdivision 2, is amended to read:
Subd. 2. Jet
fuel and special fuel tax imposed. There
is imposed an excise tax of the same rate 15 cents per gallon as
the aviation gasoline on all jet fuel or special fuel received, sold,
stored, or withdrawn from storage in this state, for use as substitutes for
aviation gasoline and not otherwise taxed as gasoline. Jet fuel is defined in section 296A.01,
subdivision 8.
EFFECTIVE
DATE. This section is
effective July 1, 2014, and applied to sales and purchases made on or after
that date.
Sec. 3. Minnesota Statutes 2012, section 296A.17, subdivision 3, is amended to read:
Subd. 3. Refund on graduated basis. Any person who has directly or indirectly paid the excise tax on aviation gasoline or special fuel for aircraft use provided for by this chapter and the airflight property tax under section 270.72, shall, as to all such aviation gasoline and special fuel received, stored, or withdrawn from storage by the person in this state in any calendar year and not sold or otherwise disposed of to others, or intended for sale or other disposition to others, on which such tax has been so paid, be entitled to the following graduated reductions in such tax for that calendar year, to be obtained by means of the following refunds:
(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all but five cents per gallon;
(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and not more than 150,000 gallons, all but two cents per gallon;
(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons and not more than 200,000 gallons, all but one cent per gallon;
(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but one-half cent per gallon.
EFFECTIVE
DATE. This section is
effective July 1, 2014, and applied to sales and purchases made on or after
that date.
Sec. 4. Minnesota Statutes 2012, section 297A.82, subdivision 4, is amended to read:
Subd. 4. Exemptions. (a) The following transactions are exempt from the tax imposed in this chapter to the extent provided.
(b) The purchase or use of aircraft previously registered in Minnesota by a corporation or partnership is exempt if the transfer constitutes a transfer within the meaning of section 351 or 721 of the Internal Revenue Code.
(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of an aircraft for which a commercial use permit has been issued pursuant to section 360.654 is exempt, if the aircraft is resold while the permit is in effect.
(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and maintenance of such air flight equipment, and flight simulators, but does not include airplanes with a gross weight of less than 30,000 pounds that are used on intermittent or irregularly timed flights.
(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in section 360.511 and approved by the Federal Aviation Administration, and which the seller delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not a resident of Minnesota and provided that the aircraft is not thereafter returned to a point within Minnesota, except in the course of interstate commerce or isolated and occasional use, and will be registered in another state or country upon its removal from Minnesota. This exemption applies even if the purchaser takes possession of the aircraft in Minnesota and uses the aircraft in the state exclusively for training purposes for a period not to exceed ten days prior to removing the aircraft from this state.
(f) The sale or purchase of the
following items that relate to aircraft operated under Federal Aviation
Regulations, Parts 91 and 135, and associated installation charges: equipment and parts necessary for repair and
maintenance of aircraft; and equipment and parts to upgrade and improve
aircraft.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 5. Minnesota Statutes 2012, section 297A.82, is amended by adding a subdivision to read:
Subd. 4a. Deposit
in state airports fund. Tax
revenue collected from the sale or purchase of an aircraft taxable under this
chapter must be deposited in the state airports fund, established in section
360.017.
EFFECTIVE
DATE. This section is
effective July 1, 2013, and applied to sales and purchases made on or after
that date.
Sec. 6. Minnesota Statutes 2012, section 297F.01, subdivision 3, is amended to read:
Subd. 3. Cigarette. "Cigarette" means any roll for
smoking made wholly or in part of tobacco, that weighs 4.5 pounds or
less per thousand:
(1) the wrapper or cover of which
is made of paper or another substance or material except tobacco; or
(2) wrapped in any substance containing tobacco, however labeled or named, which, because of its appearance, size, the type of tobacco used in the filler, or its packaging, pricing, marketing, or labeling, is likely to be offered to or purchased by consumers as a cigarette, as defined in clause (1), unless it is wrapped in whole tobacco leaf and does not have a cellulose acetate or other cigarette-like filter.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 7. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision to read:
Subd. 10b. Moist
snuff. "Moist
snuff" means any finely cut, ground, or powdered smokeless tobacco that is
intended to be placed or dipped in the mouth.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 8. Minnesota Statutes 2012, section 297F.01, is amended by adding a subdivision to read:
Subd. 13a. Premium
cigar. "Premium
cigar" means any cigar that is hand-constructed and hand-rolled, has a
wrapper that is made entirely from whole tobacco leaf, has a filler and binder
that is made entirely of tobacco, except for adhesives or other materials used
to maintain size, texture, or flavor, and has a wholesale price of no less than
$2.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 9. Minnesota Statutes 2012, section 297F.01, subdivision 19, is amended to read:
Subd. 19. Tobacco
products. (a) "Tobacco
products" means any product containing, made, or derived from tobacco that
is intended for human consumption, whether chewed, smoked, absorbed, dissolved,
inhaled, snorted, sniffed, or ingested by any other means, or any component, part,
or accessory of a tobacco product, including, but not limited to, cigars; little
cigars; cheroots; stogies; periques; granulated, plug cut, crimp cut, ready
rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and
twist tobacco; fine-cut and other chewing tobacco;
shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco; but does not include cigarettes as defined in this section. Tobacco products excludes any tobacco product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product, as a tobacco dependence product, or for other medical purposes, and is being marketed and sold solely for such an approved purpose.
(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco products includes a premium cigar, as defined in subdivision 13a.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 10. Minnesota Statutes 2012, section 297F.05, subdivision 1, is amended to read:
Subdivision 1. Rates; cigarettes. A tax is imposed upon the sale of cigarettes in this state, upon having cigarettes in possession in this state with intent to sell, upon any person engaged in business as a distributor, and upon the use or storage by consumers, at the following rates:
(1) on cigarettes weighing not more than
three pounds per thousand, 24 141.5 mills on each such cigarette;
and
(2) on cigarettes weighing more than three
pounds per thousand, 48 283 mills on each such cigarette.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 11. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision to read:
Subd. 1a. Annual
indexing. (a) Each year the
commissioner shall adjust the tax rates under subdivision 1, including any
adjustment made in prior years under this subdivision, by multiplying the mill
rates for the current calendar year by an adjustment factor and rounding the
result to the nearest mill. The
adjustment factor equals the in-lieu sales tax rate that applies to the
following calendar year divided by the in-lieu sales tax rate for the current
calendar year. For purposes of this
subdivision, "in-lieu sales tax rate" means the tax rate established
under section 297F.25, subdivision 1. For
purposes of the calculations under this subdivision to be made in any year in
which an increase in the federal or state excise tax on cigarettes is
implemented, the commissioner shall exclude from the calculated average price
for the current year an amount equal to any increase in the state or federal
excise tax rate.
(b) The commissioner shall publish the
resulting rate by November 1 and the rate applies to sales made on or after
January 1 of the following year.
(c) The determination of the commissioner
under this subdivision is not a rule and is not subject to the Administrative
Procedure Act in chapter 14.
EFFECTIVE
DATE. This section is
effective July 1, 2014.
Sec. 12. Minnesota Statutes 2012, section 297F.05, subdivision 3, is amended to read:
Subd. 3. Rates;
tobacco products. (a) Except as
provided in subdivision 3a, a tax is imposed upon all tobacco products in
this state and upon any person engaged in business as a distributor, at the
rate of 35 95 percent of the wholesale sales price of the tobacco
products. The tax is imposed at the time
the distributor:
(1) brings, or causes to be brought, into this state from outside the state tobacco products for sale;
(2) makes, manufactures, or fabricates tobacco products in this state for sale in this state; or
(3) ships or transports tobacco products to retailers in this state, to be sold by those retailers.
(b) Notwithstanding paragraph (a), a
minimum tax equal to the rate imposed on a pack of 20 cigarettes weighing not more than three pounds per thousand, as
established under subdivision 1, is imposed on each container of moist snuff.
For purposes of this subdivision, a "container"
means the smallest consumer-size can, package, or other container that is
marketed or packaged by the manufacturer, distributor, or retailer for separate
sale to a retail purchaser. When more
than one container is packaged together, each container is subject to tax.
EFFECTIVE
DATE. This section is
effective July 1, 2013, except the minimum tax under paragraph (b) is effective
January 1, 2014.
Sec. 13. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision to read:
Subd. 3a. Rates;
tobacco. (a) A tax is imposed
upon all premium cigars in this state and upon any person engaged in business
as a tobacco product distributor, at the lesser of:
(1) the rate of 95 percent of the
wholesale sales price of the premium cigars; or
(2) $3.50 per premium cigar.
(b) The tax imposed under paragraph (a)
is imposed at the time the tobacco products distributor:
(1) brings, or causes to be brought,
into this state from outside the state premium cigars for sale;
(2) makes, manufactures, or fabricates
premium cigars in this state for sale in this state; or
(3) ships or transports premium cigars
to retailers in this state, to be sold by those retailers.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 14. Minnesota Statutes 2012, section 297F.05, subdivision 4, is amended to read:
Subd. 4. Use
tax; tobacco products. Except as
provided in subdivision 4a, a tax is imposed upon the use or storage by
consumers of tobacco products in this state, and upon such consumers, at the
rate of 35 95 percent of the cost
to the consumer of the tobacco products or the minimum tax under subdivision
3, paragraph (b), whichever is greater.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 15. Minnesota Statutes 2012, section 297F.05, is amended by adding a subdivision to read:
Subd. 4a. Use
tax; premium cigars. A tax is
imposed upon the use or storage by consumers of all premium cigars in this
state, and upon such consumers, at the lesser of:
(1) the rate of 95 percent of the cost
to the consumer of the premium cigars; or
(2) $3.50 per premium cigar.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 16. Minnesota Statutes 2012, section 297F.24, subdivision 1, is amended to read:
Subdivision 1. Fee
imposed. (a) A fee is imposed upon
the sale of nonsettlement cigarettes in this state, upon having nonsettlement cigarettes
in possession in this state with intent to sell, upon any person engaged in
business as a distributor, and upon the use or storage by consumers of
nonsettlement cigarettes. The fee equals
a rate of 1.75 2.5 cents per cigarette.
(b) The purpose of this fee is to:
(1) ensure that manufacturers of nonsettlement cigarettes pay fees to the state that are comparable to costs attributable to the use of the cigarettes;
(2) prevent manufacturers of nonsettlement cigarettes from undermining the state's policy of discouraging underage smoking by offering nonsettlement cigarettes at prices substantially below the cigarettes of other manufacturers; and
(3) fund such other purposes as the legislature determines appropriate.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 17. Minnesota Statutes 2012, section 297F.25, subdivision 1, is amended to read:
Subdivision 1. Imposition. (a) A tax is imposed on distributors on
the sale of cigarettes by a cigarette distributor to a retailer or cigarette
subjobber for resale in this state. The
tax is equal to 6.5 percent of the combined tax rate under section
297A.62, multiplied by the weighted average retail price and must be
expressed in cents per pack rounded to the nearest one-tenth of a cent. The weighted average retail price must be
determined annually, with new rates published by November 1, and effective for
sales on or after January 1 of the following year. The weighted average retail price must be
established by surveying cigarette retailers statewide in a manner and time
determined by the commissioner. The
commissioner shall make an inflation adjustment in accordance with the Consumer
Price Index for all urban consumers inflation indicator as published in the
most recent state budget forecast. The
commissioner shall use the inflation factor for the calendar year in which the
new tax rate takes effect. If the survey
indicates that the average retail price of cigarettes has not increased
relative to the average retail price in the previous year's survey, then the
commissioner shall not make an inflation adjustment. The determination of the commissioner
pursuant to this subdivision is not a "rule" and is not subject to
the Administrative Procedure Act contained in chapter 14. For packs of cigarettes with other than 20
cigarettes, the tax must be adjusted proportionally.
(b) Notwithstanding paragraph (a), and in lieu of a survey of cigarette retailers, the tax calculation of the weighted average retail price for the sales of cigarettes from August 1, 2011, through December 31, 2011, shall be calculated by: (1) increasing the average retail price per pack of 20 cigarettes from the most recent survey by the percentage change in a weighted average of the presumed legal prices for cigarettes during the year after completion of that survey, as reported and published by the Department of Commerce under section 325D.371; (2) subtracting the sales tax included in the retail price; and (3) adjusting for expected inflation. The rate must be published by May 1 and is effective for sales after July 31. If the weighted average of the presumed legal prices indicates that the average retail price of cigarettes has not increased relative to the average retail price in the most recent survey, then no inflation adjustment must be made. For packs of cigarettes with other than 20 cigarettes, the tax must be adjusted proportionally.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 18. Minnesota Statutes 2012, section 297G.04, subdivision 2, is amended to read:
Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year beginning July 1, regardless of the alcohol content of the product. Qualified brewers may take the credit on the 18th day of each month, but the total credit allowed may not exceed in any fiscal year the lesser of:
(1) the liability for tax; or
(2) $115,000.
For purposes of this subdivision, a
"qualified brewer" means a brewer, whether or not located in this
state, manufacturing less than 100,000 250,000 barrels of
fermented malt beverages in the calendar year immediately preceding the
calendar year for which the credit under this subdivision is claimed. In determining the number of barrels, all
brands or labels of a brewer must be combined.
All facilities for the manufacture of fermented malt beverages owned or
controlled by the same person, corporation, or other entity must be treated as
a single brewer.
EFFECTIVE
DATE. This section is
effective for determinations based on calendar year 2012 production and
thereafter.
Sec. 19. Minnesota Statutes 2012, section 325D.32, subdivision 2, is amended to read:
Subd. 2. Cigarettes. "Cigarettes" means and includes any roll for smoking, made wholly or in part of tobacco, irrespective of size and shape and whether or not such tobacco is flavored, adulterated or mixed with any other ingredient, the wrapper or cover of which is made of paper or any other substance or material except whole tobacco leaf, and includes any cigarette as defined in section 297F.01, subdivision 3.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 20. Minnesota Statutes 2012, section 325F.781, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given, unless the language or context clearly provides otherwise.
(b) "Consumer" means an individual who purchases, receives, or possesses tobacco products for personal consumption and not for resale.
(c) "Delivery sale" means:
(1) a sale of tobacco products to a consumer in this state when:
(i) the purchaser submits the order for the sale by means of a telephonic or other method of voice transmission, the mail or any other delivery service, or the Internet or other online service; or
(ii) the tobacco products are delivered by use of the mail or other delivery service; or
(2) a sale of tobacco products that satisfies the criteria in clause (1), item (i), regardless of whether the seller is located inside or outside of the state.
A sale of tobacco products to an individual in this state must be treated as a sale to a consumer, unless the individual is licensed as a distributor or retailer of tobacco products.
(d) "Delivery service" means a person, including the United States Postal Service, that is engaged in the commercial delivery of letters, packages, or other containers.
(e) "Distributor" means a person, whether located inside or outside of this state, other than a retailer, who sells or distributes tobacco products in the state. Distributor does not include a tobacco products manufacturer, export warehouse proprietor, or importer with a valid permit under United States Code, title 26, section 5712 (1997), if the person sells or distributes tobacco products in this state only to distributors who hold valid and current licenses under the laws of a state, or to an export warehouse proprietor or another manufacturer. Distributor does not include a common or contract carrier that is transporting tobacco products under a proper bill of lading or freight bill that states the quantity, source, and destination of tobacco products, or a person who ships tobacco products through this state by common or contract carrier under a bill of lading or freight bill.
(f) "Retailer" means a person, whether located inside or outside this state, who sells or distributes tobacco products to a consumer in this state.
(g) "Tobacco products" means:
(1) cigarettes, as defined in section
297F.01, subdivision 3; and
(2) smokeless tobacco as defined in
section 325F.76.; and
(3) premium cigars as defined in
section 297F.01, subdivision 13a.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 21. Minnesota Statutes 2012, section 349.166, subdivision 1, is amended to read:
Subdivision 1. Exclusions. (a) Bingo, with the exception of linked bingo games, may be conducted without a license and without complying with sections 349.168, subdivisions 1 and 2; 349.17, subdivisions 4 and 5; 349.18, subdivision 1; and 349.19, if it is conducted:
(1) by an organization in connection with a county fair, the state fair, or a civic celebration and is not conducted for more than 12 consecutive days and is limited to no more than four separate applications for activities applied for and approved in a calendar year; or
(2) by an organization that conducts bingo on four or fewer days in a calendar year.
An organization that holds a license to conduct lawful gambling under this chapter may not conduct bingo under this subdivision.
(b) Bingo may be conducted within a nursing home or a senior citizen housing project or by a senior citizen organization if the prizes for a single bingo game do not exceed $10, total prizes awarded at a single bingo occasion do not exceed $200, no more than two bingo occasions are held by the organization or at the facility each week, only members of the organization or residents of the nursing home or housing project are allowed to play in a bingo game, no compensation is paid for any persons who conduct the bingo, and a manager is appointed to supervise the bingo. Bingo conducted under this paragraph is exempt from sections 349.11 to 349.23, and the board may not require an organization that conducts bingo under this paragraph, or the manager who supervises the bingo, to register or file a report with the board. The gross receipts from bingo conducted under the limitations of this subdivision are exempt from taxation under chapter 297A.
(c) Raffles may be conducted by an organization without registering with the board if the value of all raffle prizes awarded by the organization in a calendar year does not exceed $1,500 or, if the organization is a 501(c)(3) organization, if the value of all raffle prizes awarded by the organization at one event in a calendar year does not exceed $5,000.
(d) Except as provided in paragraph (b), the organization must maintain all required records of excluded gambling activity for 3-1/2 years.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 22. Minnesota Statutes 2012, section 360.531, is amended to read:
360.531
TAXATION.
Subdivision 1. In lieu tax. All aircraft using the air space overlying the state of Minnesota or the airports thereof, except as set forth in section 360.55, shall be taxed in lieu of all other taxes thereon, on the basis and at the rate for the period January 1, 1966, to June 30, 1967, and for each fiscal year as follows.
Subd. 2. Rate. The tax shall be at the rate of one
percent of value; provided that the minimum tax on an aircraft subject to the
provisions of sections 360.511 to 360.67 shall not be less than 25 percent of
the tax on said aircraft computed on its base price or $50 whichever is the
higher. as follows:
|
Base
Price |
|
Tax
|
|
|
|
|
|
Under
$499,999 |
|
$100
|
|
$500,000
to $999,999 |
|
$200
|
|
$1,000,000
to $2,499,999 |
|
$2,000
|
|
$2,500,000
to $4,999,999 |
|
$4,000
|
|
$5,000,000
to $7,499,999 |
|
$7,500
|
|
$7,500,000
to $9,999,999 |
|
$10,000
|
|
$10,000,000
to $12,499,999 |
|
$12,500
|
|
$12,500,000
to $14,999,999 |
|
$15,000
|
|
$15,000,000
to $17,499,999 |
|
$17,500
|
|
$17,500,000
to $19,999,999 |
|
$20,000
|
|
$20,000,000
to $22,499,999 |
|
$22,500
|
|
$22,500,000
to $24,999,999 |
|
$25,000
|
|
$25,000,000
to $27,499,999 |
|
$27,500
|
|
$27,500,000
to $29,999,999 |
|
$30,000
|
|
$30,000,000
to $39,999,999 |
|
$50,000
|
|
$40,000,000
and over |
|
$75,000
|
Subd. 3. First year of life. "First year of life" means the year the aircraft was manufactured.
Subd. 4. Base
price for taxation. For the purpose
of fixing a base price for taxation from which depreciation in value at a
fixed percent per annum can be counted, such, the base price is
defined as follows:
(a) The base price for taxation of an aircraft shall be the manufacturer's list price.
(b) The commissioner shall have authority
to fix the base value for taxation purposes of any aircraft of which no such
similar or corresponding model has been manufactured, and of any rebuilt or
foreign aircraft, any aircraft on which a record of the list price is not
available, or any military aircraft converted for civilian use, using as a
basis for such valuation the list price of aircraft with comparable
performance characteristics, and taking into consideration the age and
condition of the aircraft.
Subd. 5. Similarity of corresponding model. Models shall be deemed similar if substantially alike and of the same make. Models shall be deemed to be corresponding models for the purpose of taxation under sections 360.54 to 360.67 if of the same make and having approximately the same weight and type of frame and the same style and size of motor.
Subd. 6. Depreciation. After the first year of aircraft life the
base value for taxation purposes shall be reduced as follows: ten percent the second year, and 15 percent
the third and each succeeding year thereafter, but in no event shall such tax
be reduced below the minimum.
Subd. 7. Prorating tax. When an aircraft first becomes subject to taxation during the period for which the tax is to be paid, the tax on it shall be for the remainder of that period, prorated on a monthly basis of 1/12 of the annual tax for each calendar month counting the month during which it becomes subject to the tax as the first month of such period.
Subd. 8. Tax, fiscal year. Every aircraft subject to the provisions of sections 360.511 to 360.67 which has at any time since April 19, 1945, used the air space overlying the state of Minnesota or the airports thereof shall be taxed for the period from January 1, 1966, through June 30, 1967, and for each fiscal year thereafter in which it is so used. Any aircraft which does not use the air space overlying the state of Minnesota or the airports thereof at any time during the period of January 1, 1966, to and including June 30, 1967, or at any time during any fiscal year thereafter shall not be subject to the tax provided by sections 360.511 to 360.67 for such period. Rebuilt aircraft shall be subject to the tax provided by sections 360.511 to 360.67 for that portion of the aforesaid periods remaining after the aircraft has been rebuilt, prorated on a monthly basis.
Subd. 9. Assessed as personal property in certain cases. Aircraft subject to taxation under the provisions of sections 360.54 to 360.67 shall not be assessed as personal property and shall be subject to no tax except as provided for by these sections. Aircraft not subject to taxation as provided in these sections, but subject to taxation as personal property within the state of Minnesota shall be assessed and valued at 33-1/3 percent of the market value thereof and taxed at the rate and in the manner provided by law for the taxation of ordinary personal property. If the person against whom any tax has been levied on the ad valorem basis because of any aircraft shall, during the calendar year for which such ad valorem tax is levied, be also taxed under provisions of these sections, then and in that event, upon proper showing, the commissioner of revenue shall grant to the person against whom said ad valorem tax was levied, such reduction or abatement of net tax capacity or taxes as was occasioned by the so-called ad valorem tax imposed. If the ad valorem tax upon any aircraft has been assessed against a dealer in new and used aircraft, and the tax imposed by these sections for the required period is thereafter paid by the owner, then and in that event, upon proper showing, the commissioner of revenue, upon the application of said dealer, shall grant to such dealer against whom said ad valorem tax was levied such reduction or abatement of net tax capacity or taxes as was occasioned by the so-called ad valorem tax imposed.
EFFECTIVE
DATE. This section is
effective July 1, 2014, and applies to aircraft tax due on or after that date.
Sec. 23. Minnesota Statutes 2012, section 360.66, is amended to read:
360.66
STATE AIRPORTS FUND.
Subdivision 1. Tax
credited to fund. The proceeds of
the tax imposed on aircraft under sections 360.54 360.531 to
360.67 and all fees and penalties provided for therein shall be collected by
the commissioner and paid into the state treasury and credited to the state
airports fund created by other statutes of this state.
Subd. 2. Reimbursement
for expenses. There shall be
transferred by the commissioner of management and budget each year from the
state airports fund to the general fund in the state treasury the amount
expended from the latter fund for expenses of administering the provisions of
sections 360.54 360.531 to 360.67.
EFFECTIVE
DATE. This section is
effective July 1, 2014, and applies to aircraft tax due on or after that date.
Sec. 24. REPORT.
On or before June 30, 2016, and every
four years thereafter, the commissioner of transportation, in consultation with
the commissioner of revenue, shall prepare and submit to the chairs and ranking
minority members of the senate and house of representatives committees with
jurisdiction over transportation policy and budget, a report that identifies
the amount and sources of annual revenues attributable to each type of aviation
tax, along with annual expenditures from the state airports fund, and any other
transfers out of the fund, during the previous four years. The report must include draft legislation for
any recommended statutory changes to ensure the future adequacy of the state
airports fund.
EFFECTIVE
DATE. This section is
effective July 1, 2014, and applies to aircraft tax due on or after that date.
Sec. 25. FLOOR
STOCKS TAX.
Subdivision 1. Cigarettes. (a) A floor stocks tax is imposed on
every person engaged in the business in this state as a distributor, retailer,
subjobber, vendor, manufacturer, or manufacturer's representative of
cigarettes, on the stamped cigarettes and unaffixed stamps in the person's
possession or under the person's control at 12:01 a.m. on July 1, 2013. The tax is imposed at the rate of 80 mills on
each cigarette plus the additional cigarette sales tax determined by an
adjustment to the weighted average retail price which reflects the price
including the increased tax.
(b) Each distributor, on or before July
11, 2013, shall file a return with the commissioner of revenue, in the form the
commissioner prescribes, showing the stamped cigarettes and unaffixed stamps on
hand at 12:01 a.m. on July 1, 2013, and the amount of tax due on the cigarettes
and unaffixed stamps. Each retailer,
subjobber, vendor, manufacturer, or manufacturer's representative, on or before
July 11, 2013, shall file a return with the commissioner, in the form the
commissioner prescribes, showing the cigarettes on hand at 12:01 a.m. on July
1, 2013, and the amount of tax due on the cigarettes. The tax imposed by this section is due and
payable on or before September 4, 2013, and after that date bears interest at
the rate of one percent per month.
Subd. 2. Audit
and enforcement. The tax
imposed by this section is subject to the audit, assessment, interest, appeal,
refund, penalty, enforcement, administrative, and collection provisions of
Minnesota Statutes, chapters 270C and 297F.
The commissioner of revenue may require a distributor to receive and
maintain copies of floor stocks fee returns filed by all persons requesting a
credit for returned cigarettes.
Subd. 3. Deposit
of proceeds. (a) The commissioner
of revenue shall deposit $26,500,000 of the revenues from the tax under this
section in the state treasury and credit them to the general reserve account
established under Minnesota Statutes 297E.021, subdivision 4.
(b) The commissioner of revenue shall
deposit any revenue remaining after the transfer under paragraph (a) to the
general fund.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 26. INTERIM
SALES TAX RATE.
Notwithstanding the provisions of
Minnesota Statutes, section 297F.25, the commissioner shall adjust the weighted
average retail price in section 297F.25, subdivision 1, on July 1, 2013, to
reflect the price changes under this act.
This weighted average shall be used to compute cigarette sales tax under
Minnesota Statutes, section 297F.25, subdivision 1, until December 31, 2013,
when the commissioner shall resume annual adjustments to the weighted average
sales price. The commissioner's
determination of the adjustment that takes effect on January 1, 2014, must be
limited to the change in the weighted average retail price that occurs during
calendar year 2013 but after July 15, 2013.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 27. TOBACCO
TAX COLLECTION REPORT.
Subdivision 1. Report
to legislature. (a) The
commissioner of revenue shall report to the 2014 legislature on the tobacco tax
collection system, including recommendations to improve compliance under the
excise tax for both cigarettes and other tobacco products. The purpose of the report is to provide
information and guidance to the legislature on improvements to the tobacco tax
collection system to:
(1) provide a unified system of
collecting both the cigarette and other tobacco taxes, regardless of category,
size, or shape, that ensures the highest reasonable rates of tax collection;
(2) discourage tax evasion; and
(3) help to prevent illegal sale of
tobacco products, which may make these products more accessible to youth.
(b) In the report, the commissioner
shall:
(1) provide a detailed review of the
present excise tax collection and compliance system as it applies to both
cigarettes and other tobacco products. This
must include an assessment of the levels of compliance for each category of
products and the effect of the stamping requirement on compliance for each
category of products and the effect of the stamping requirement on compliance
rates for cigarettes relative to other tobacco products. It also must identify any weaknesses in the
system;
(2) survey the methods of collection
and enforcement used by other states or nations, including identifying and
discussing emerging best practices that ensure tracking of both cigarettes and
other tobacco products and result in the highest rates of tax collection and
compliance. These best practices must
consider high-technology alternatives, such as use of bar codes,
radio-frequency identification tags, or similar mechanisms for tracking
compliance;
(3) evaluate the adequacy and
effectiveness of the existing penalties and other sanctions for noncompliance;
(4)
evaluate the adequacy of the resources allocated by the state to enforce the
tobacco tax and prevention laws; and
(5) make recommendations on
implementation of a comprehensive tobacco tax collection system for Minnesota that
can be implemented by January 1, 2014, including:
(i) recommendations on the specific
steps needed to institute and implement the new system, including estimates of
the state's costs of doing so and any additional personnel requirements;
(ii) recommendations on methods to
recover the cost of implementing the system from the industry;
(iii) evaluation of the extent to which
the proposed system is sufficiently flexible and adaptable to adjust to
modifications in the construction, packaging, formatting, and marketing of
tobacco products by the industry; and
(iv) recommendations to modify existing
penalties or to impose new penalties or other sanctions to ensure compliance
with the system.
Subd. 2. Due
date. The report required by
subdivision 1 is due February 15, 2014.
Subd. 3. Procedure. The report required under this section
must be made in the manner provided under Minnesota Statutes, section 3.195. In addition, copies must be provided to the
chairs and ranking minority members of the legislative committees and divisions
with jurisdiction over taxation.
Subd. 4. Appropriation. (a) $100,000 is appropriated from the
general fund to the commissioner of revenue for fiscal year 2014 for the cost
of preparing the report under subdivision 1.
(b) The appropriation under this
subdivision is a onetime appropriation and is not included in the base budget.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 28. REPEALER.
Minnesota Statutes 2012, sections
16A.725; and 256.9658, are repealed.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
ARTICLE 6
INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES
Section 1. Minnesota Statutes 2012, section 116J.8737, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For the purposes of this section, the following terms have the meanings given.
(b) "Qualified small business" means a business that has been certified by the commissioner under subdivision 2.
(c) "Qualified investor" means an investor who has been certified by the commissioner under subdivision 3.
(d) "Qualified fund" means a pooled angel investment network fund that has been certified by the commissioner under subdivision 4.
(e) "Qualified investment" means a cash investment in a qualified small business of a minimum of:
(1) $10,000 in a calendar year by a qualified investor; or
(2) $30,000 in a calendar year by a qualified fund.
A qualified investment must be made in exchange for common stock, a partnership or membership interest, preferred stock, debt with mandatory conversion to equity, or an equivalent ownership interest as determined by the commissioner.
(f) "Family" means a family member within the meaning of the Internal Revenue Code, section 267(c)(4).
(g) "Pass-through entity" means a corporation that for the applicable taxable year is treated as an S corporation or a general partnership, limited partnership, limited liability partnership, trust, or limited liability company and which for the applicable taxable year is not taxed as a corporation under chapter 290.
(h) "Intern" means a student of an accredited institution of higher education, or a former student who has graduated in the past six months from an accredited institution of higher education, who is employed by a qualified small business in a nonpermanent position for a duration of nine months or less that provides training and experience in the primary business activity of the business.
(i) "Liquidation event" means
a conversion of qualified investment for cash, cash and other consideration, or
any other form of equity or debt interest.
EFFECTIVE
DATE. This section is
effective for qualified small businesses certified after June 30, 2013.
Sec. 2. Minnesota Statutes 2012, section 116J.8737, subdivision 2, is amended to read:
Subd. 2. Certification of qualified small businesses. (a) Businesses may apply to the commissioner for certification as a qualified small business for a calendar year. The application must be in the form and be made under the procedures specified by the commissioner, accompanied by an application fee of $150. Application fees are deposited in the small business investment tax credit administration account in the special revenue fund. The application for certification for 2010 must be made available on the department's Web site by August 1, 2010. Applications for subsequent years' certification must be made available on the department's Web site by November 1 of the preceding year.
(b) Within 30 days of receiving an application for certification under this subdivision, the commissioner must either certify the business as satisfying the conditions required of a qualified small business, request additional information from the business, or reject the application for certification. If the commissioner requests additional information from the business, the commissioner must either certify the business or reject the application within 30 days of receiving the additional information. If the commissioner neither certifies the business nor rejects the application within 30 days of receiving the original application or within 30 days of receiving the additional information requested, whichever is later, then the application is deemed rejected, and the commissioner must refund the $150 application fee. A business that applies for certification and is rejected may reapply.
(c) To receive certification, a business must satisfy all of the following conditions:
(1) the business has its headquarters in Minnesota;
(2) at least 51 percent of the business's employees are employed in Minnesota, and 51 percent of the business's total payroll is paid or incurred in the state;
(3) the business is engaged in, or is committed to engage in, innovation in Minnesota in one of the following as its primary business activity:
(i)
using proprietary technology to add value to a product, process, or service in
a qualified high-technology field;
(ii) researching or developing a proprietary product, process, or service in a qualified high-technology field; or
(iii) researching, developing, or producing a new proprietary technology for use in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
(4) other than the activities specifically listed in clause (3), the business is not engaged in real estate development, insurance, banking, lending, lobbying, political consulting, information technology consulting, wholesale or retail trade, leisure, hospitality, transportation, construction, ethanol production from corn, or professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants;
(5) the business has fewer than 25 employees;
(6) the business must pay its employees annual wages of at least 175 percent of the federal poverty guideline for the year for a family of four and must pay its interns annual wages of at least 175 percent of the federal minimum wage used for federally covered employers, except that this requirement must be reduced proportionately for employees and interns who work less than full-time, and does not apply to an executive, officer, or member of the board of the business, or to any employee who owns, controls, or holds power to vote more than 20 percent of the outstanding securities of the business;
(7) the business has (i) not been in operation for more than ten years, or (ii) the business has not been in operation for more than 20 years if the business is engaged in the research, development, or production of medical devices or pharmaceuticals for which United States Food and Drug Administration approval is required for use in the treatment or diagnosis of a disease or condition;
(8) the business has not previously
received private equity investments of more than $4,000,000; and
(9) the business is not an entity
disqualified under section 80A.50, paragraph (b), clause (3).; and
(10) the business has not issued
securities that are traded on a public exchange.
(d) In applying the limit under paragraph (c), clause (5), the employees in all members of the unitary business, as defined in section 290.17, subdivision 4, must be included.
(e) In order for a qualified investment in
a business to be eligible for tax credits,:
(1) the business must have applied
for and received certification for the calendar year in which the investment
was made prior to the date on which the qualified investment was made.;
(2) the business must not have issued
securities that are traded on a public exchange;
(3) the business must not issue
securities that are traded on a public exchange within 180 days after the date
on which the qualified investment was made; and
(4) the business must not have a
liquidation event within 180 days after the date on which the qualified
investment was made.
(f) The commissioner must maintain a list of businesses certified under this subdivision for the calendar year and make the list accessible to the public on the department's Web site.
(g) For purposes of this subdivision, the following terms have the meanings given:
(1) "qualified high-technology field" includes aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical device products, pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields; and
(2) "proprietary technology" means the technical innovations that are unique and legally owned or licensed by a business and includes, without limitation, those innovations that are patented, patent pending, a subject of trade secrets, or copyrighted.
EFFECTIVE
DATE. This section is
effective for qualified small businesses certified after June 30, 2013, except the
amendments to paragraph (c), clause (7), are effective the day following final
enactment.
Sec. 3. Minnesota Statutes 2012, section 116J.8737, subdivision 8, is amended to read:
Subd. 8. Data privacy. (a) Data contained in an application submitted to the commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on individuals, as defined in section 13.02, subdivision 9 or 12, except that the following data items are public:
(1) the name, mailing address, telephone number, e-mail address, contact person's name, and industry type of a qualified small business upon approval of the application and certification by the commissioner under subdivision 2;
(2) the name of a qualified investor upon approval of the application and certification by the commissioner under subdivision 3;
(3) the name of a qualified fund upon approval of the application and certification by the commissioner under subdivision 4;
(4) for credit certificates issued under subdivision 5, the amount of the credit certificate issued, amount of the qualifying investment, the name of the qualifying investor or qualifying fund that received the certificate, and the name of the qualifying small business in which the qualifying investment was made;
(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and the name of the qualified investor or qualified fund; and
(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount revoked and the name of the qualified small business.
(b) The following data, including data classified as nonpublic or private, must be provided to the consultant for use in conducting the program evaluation under subdivision 10:
(1) the commissioner of employment and economic development shall provide data contained in an application for certification received from a qualified small business, qualified investor, or qualified fund, and any annual reporting information received on a qualified small business, qualified investor, or qualified fund; and
(2) the commissioner of revenue shall provide data contained in any applicable tax returns of a qualified small business, qualified investor, or qualified fund.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. [136A.129]
GREATER MINNESOTA INTERNSHIP PROGRAM.
Subdivision 1. Definitions. (a) For the purposes of this section,
the terms defined in this subdivision have the meanings given to them.
(b) "Eligible employer" means
a taxpayer under section 290.01 with employees located in greater Minnesota.
(c) "Eligible institution"
means a Minnesota public postsecondary institution or a Minnesota private,
nonprofit, baccalaureate degree-granting college or university.
(d) "Eligible student" means
a student enrolled in an eligible institution who has completed one-half of the
credits necessary for the respective degree or certification.
(e) "Greater Minnesota" means
the area of the state outside of the counties of Anoka, Carver, Chisago,
Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright.
Subd. 2. Program
established. The Office of
Higher Education shall administer a greater Minnesota internship program
through eligible institutions to provide credit at the eligible institution for
internships and tax credits for eligible employers who hire interns for
employment in greater Minnesota.
Subd. 3. Program
components. (a) An intern
must be an eligible student who has been admitted to a major program that is
related to the intern experience as determined by the eligible institution.
(b) To participate in the program, an
eligible institution must:
(1) enter into written agreements with
eligible employers to provide internships that are at least 12 weeks long and
located in greater Minnesota;
(2) determine that the work experience
of the internship is related to the eligible student's course of study; and
(3) provide academic credit for the
successful completion of the internship or ensure that it fulfills requirements
necessary to complete a vocational technical education program.
(c) To participate in the program, an
eligible employer must enter into a written agreement with an eligible
institution specifying that the intern:
(1) would not have been hired without
the tax credit described in subdivision 4;
(2) did not work for the employer in
the same or a similar job prior to entering the agreement;
(3) does not replace an existing
employee;
(4) has not previously participated in
the program;
(5) will be employed at a location in
greater Minnesota;
(6)
will be paid at least minimum wage for a minimum of 16 hours per week for a
period of at least 12 weeks; and
(7) will be supervised and evaluated by
the employer.
(d) The written agreement between the
eligible institution and the eligible employer must certify a credit amount to
the employer, not to exceed $2,000 per intern.
The total dollar amount of credits that an eligible institution
certifies to eligible employers in a calendar year may not exceed the amount of
its allocation under subdivision 4.
(e) Participating eligible institutions
and eligible employers must report annually to the office. The report must include at least the
following:
(1) the number of interns hired;
(2) the number of hours and weeks
worked by interns; and
(3) the compensation paid to interns.
(f) An internship required to complete
an academic program does not qualify for the greater Minnesota internship
program under this section.
Subd. 4. Tax
credit allowed. An employer
is entitled to a tax credit as provided in section 290.06, subdivision 36. The total amount of credits allocated in a
calendar year must not exceed $2,000,000.
The office shall determine relevant criteria to allocate the tax credits
including the geographic distribution of credits to work locations outside the
metropolitan area, and shall allocate credits to eligible institutions that
meet the criteria on a first come, first
served basis. Any credits allocated to an institution but
not used may be reallocated to eligible institutions. The office shall allocate a portion of the
administrative fee under section 290.06, subdivision 36, to participating
eligible institutions for their administrative costs.
Subd. 5. Reports
to the legislature. (a) By
February 1, 2015, the office and the Department of Revenue shall report to the
legislature on the greater Minnesota internship program. The report must include at least the
following:
(1) the number and dollar amount of
credits allowed;
(2) the number of interns employed under
the program; and
(3) the cost of administering the
program.
(b) By February 1, 2016, the office and
the Department of Revenue shall report to the legislature with an analysis of
the effectiveness of the program in stimulating businesses to hire interns and
in assisting participating interns in finding permanent career positions. This report must include the number of
students who participated in the program who were subsequently employed
full-time by the employer.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2013.
Sec. 5. Minnesota Statutes 2012, section 289A.08, subdivision 3, is amended to read:
Subd. 3. Corporations. (a) A corporation that is subject to the
state's jurisdiction to tax under section 290.014, subdivision 5, must file a
return, except that a foreign operating corporation as defined in section
290.01, subdivision 6b, is not required to file a return.
(b) Members of a unitary business that are required to file a combined report on one return must designate a member of the unitary business to be responsible for tax matters, including the filing of returns, the payment of taxes, additions to tax, penalties, interest, or any other payment, and for the receipt of refunds of taxes or interest paid in excess of taxes lawfully due. The designated member must be a member of the unitary business that is filing the single combined report and either:
(1) a corporation that is subject to the taxes imposed by chapter 290; or
(2) a corporation that is not subject to the taxes imposed by chapter 290:
(i) Such corporation consents by filing the return as a designated member under this clause to remit taxes, penalties, interest, or additions to tax due from the members of the unitary business subject to tax, and receive refunds or other payments on behalf of other members of the unitary business. The member designated under this clause is a "taxpayer" for the purposes of this chapter and chapter 270C, and is liable for any liability imposed on the unitary business under this chapter and chapter 290.
(ii) If the state does not otherwise have the jurisdiction to tax the member designated under this clause, consenting to be the designated member does not create the jurisdiction to impose tax on the designated member, other than as described in item (i).
(iii) The member designated under this clause must apply for a business tax account identification number.
(c) The commissioner shall adopt rules for the filing of one return on behalf of the members of an affiliated group of corporations that are required to file a combined report. All members of an affiliated group that are required to file a combined report must file one return on behalf of the members of the group under rules adopted by the commissioner.
(d) If a corporation claims on a return that it has paid tax in excess of the amount of taxes lawfully due, that corporation must include on that return information necessary for payment of the tax in excess of the amount lawfully due by electronic means.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 6. Minnesota Statutes 2012, section 290.01, subdivision 19, as amended by Laws 2013, chapter 3, section 3, is amended to read:
Subd. 19. Net income. 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 subdivisions 19a to 19f.
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
(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.
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.
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.
The Internal Revenue Code of 1986, as amended through April 14, 2011, shall be in effect for taxable years beginning after December 31, 1996, and before January 1, 2012, and for taxable years beginning after December 31, 2012. The Internal Revenue Code of 1986, as amended through January 3, 2013, is in effect for taxable years beginning after December 31, 2011, and before January 1, 2013.
The provisions of sections 315 and 331
of the American Taxpayer Relief Act of 2012, Public Law 112-240, extension of increased expensing limitations and
treatment of certain real property as section 179 property and extension and
modification of bonus depreciation, are effective at the same time they become
effective for federal purposes.
Except as otherwise provided, references to the Internal Revenue Code in subdivisions 19 to 19f mean the code in effect for purposes of determining net income for the applicable year.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 7. Minnesota Statutes 2012, section 290.01, subdivision 19b, is amended to read:
Subd. 19b. Subtractions from federal taxable income. For individuals, estates, and trusts, there shall be subtracted from federal taxable income:
(1) net interest income on obligations of any authority, commission, or instrumentality of the United States to the extent includable in taxable income for federal income tax purposes but exempt from state income tax under the laws of the United States;
(2) if included in federal taxable income, the amount of any overpayment of income tax to Minnesota or to any other state, for any previous taxable year, whether the amount is received as a refund or as a credit to another taxable year's income tax liability;
(3) the amount paid to others, less the amount used to claim the credit allowed under section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and transportation of each qualifying child in attending an elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory attendance laws, which is not operated for profit, and which adheres to the provisions of the Civil Rights Act of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, "textbooks" includes books and other instructional materials and equipment purchased or leased for use in elementary and secondary schools in teaching only those subjects legally and commonly taught in public elementary and secondary schools in this state. Equipment expenses qualifying for deduction includes expenses as defined and limited in section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship, nor does it include books or materials for, or transportation to, extracurricular activities including sporting events, musical or dramatic events, speech activities, driver's education, or similar programs. No deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle to provide such transportation for a qualifying child. For purposes of the subtraction provided by this clause, "qualifying child" has the meaning given in section 32(c)(3) of the Internal Revenue Code;
(4) income as provided under section 290.0802;
(5) to the extent included in federal adjusted gross income, income realized on disposition of property exempt from tax under section 290.491;
(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) of the Internal Revenue Code in determining federal taxable income by an individual who does not itemize deductions for federal income tax purposes for the taxable year, an amount equal to 50 percent of the excess of charitable contributions over $500 allowable as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, under the provisions of Public Law 109-1 and Public Law 111-126;
(7) for individuals who are allowed a federal foreign tax credit for taxes that do not qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover of subnational foreign taxes for the taxable year, but not to exceed the total subnational foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, "federal foreign tax credit" means the credit allowed under section 27 of the Internal Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed under section 904(c) of the Internal Revenue Code minus national level foreign taxes to the extent they exceed the federal foreign tax credit;
(8) in each of the five tax years immediately
following the tax year in which an addition is required under subdivision 19a,
clause (7), or 19c, clause (15) (12), in the case of a
shareholder of a corporation that is an S corporation,
an amount equal to one-fifth of the delayed depreciation. For purposes of this clause, "delayed
depreciation" means the
amount of the addition made by the taxpayer under subdivision 19a, clause (7),
or subdivision 19c, clause (15) (12), in the case of a
shareholder of an S corporation, minus the positive value of any net operating
loss under section 172 of the Internal Revenue Code generated for the tax year
of the addition. The resulting delayed
depreciation cannot be less than zero;
(9) job opportunity building zone income as provided under section 469.316;
(10) to the extent included in federal taxable income, the amount of compensation paid to members of the Minnesota National Guard or other reserve components of the United States military for active service, excluding compensation for services performed under the Active Guard Reserve (AGR) program. For purposes of this clause, "active service" means (i) state active service as defined in section 190.05, subdivision 5a, clause (1); or (ii) federally funded state active service as defined in section 190.05, subdivision 5b, but "active service" excludes service performed in accordance with section 190.08, subdivision 3;
(11) to the extent included in federal taxable income, the amount of compensation paid to Minnesota residents who are members of the armed forces of the United States or United Nations for active duty performed under United States Code, title 10; or the authority of the United Nations;
(12) an amount, not to exceed $10,000, equal to qualified expenses related to a qualified donor's donation, while living, of one or more of the qualified donor's organs to another person for human organ transplantation. For purposes of this clause, "organ" means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; "human organ transplantation" means the medical procedure by which transfer of a human organ is made from the body of one person to the body of another person; "qualified expenses" means unreimbursed expenses for both the individual and the qualified donor for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses may be subtracted under this clause only once; and "qualified donor" means the individual or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An individual may claim the subtraction in this clause for each instance of organ donation for transplantation during the taxable year in which the qualified expenses occur;
(13) in each of the five tax years
immediately following the tax year in which an addition is required under
subdivision 19a, clause (8), or 19c, clause (16) (13), in the
case of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the addition made by
the taxpayer under subdivision 19a, clause (8), or 19c, clause (16)
(13), in the case of a shareholder of a corporation that is an S
corporation, minus the positive value of any net operating loss under section
172 of the Internal Revenue Code generated for the tax year of the addition. If the net operating loss exceeds the
addition for the tax year, a subtraction is not allowed under this clause;
(14) to the extent included in the federal taxable income of a nonresident of Minnesota, compensation paid to a service member as defined in United States Code, title 10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief Act, Public Law 108-189, section 101(2);
(15) to the extent included in federal taxable income, the amount of national service educational awards received from the National Service Trust under United States Code, title 42, sections 12601 to 12604, for service in an approved Americorps National Service program;
(16) to the extent included in federal
taxable income, discharge of indebtedness income resulting from reacquisition
of business indebtedness included in federal taxable income under section
108(i) of the Internal Revenue Code. This
subtraction applies only to the extent that the income was included in net
income in a prior year as a result of the addition under section 290.01,
subdivision 19a, clause (16); and
(17) the amount of the net operating loss
allowed under section 290.095, subdivision 11, paragraph (c); and
(18) the amount of expenses not allowed for federal income tax purposes due to claiming the railroad track maintenance credit under section 45G(a) of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 8. Minnesota Statutes 2012, section 290.01, subdivision 19c, is amended to read:
Subd. 19c. Corporations; additions to federal taxable income. For corporations, there shall be added to federal taxable income:
(1) the amount of any deduction taken for federal income tax purposes for income, excise, or franchise taxes based on net income or related minimum taxes, including but not limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, another state, a political subdivision of another state, the District of Columbia, or any foreign country or possession of the United States;
(2) interest not subject to federal tax upon obligations of: the United States, its possessions, its agencies, or its instrumentalities; the state of Minnesota or any other state, any of its political or governmental subdivisions, any of its municipalities, or any of its governmental agencies or instrumentalities; the District of Columbia; or Indian tribal governments;
(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal Revenue Code;
(4) the amount of any net operating loss deduction taken for federal income tax purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss deduction under section 810 of the Internal Revenue Code;
(5) the amount of any special deductions taken for federal income tax purposes under sections 241 to 247 and 965 of the Internal Revenue Code;
(6) losses from the business of mining, as defined in section 290.05, subdivision 1, clause (a), that are not subject to Minnesota income tax;
(7) the amount of any capital losses deducted for federal income tax purposes under sections 1211 and 1212 of the Internal Revenue Code;
(8) the exempt foreign trade income of a
foreign sales corporation under sections 921(a) and 291 of the Internal Revenue
Code;
(9) (8) the amount of
percentage depletion deducted under sections 611 through 614 and 291 of the
Internal Revenue Code;
(10) (9) for certified
pollution control facilities placed in service in a taxable year beginning
before December 31, 1986, and for which amortization deductions were
elected under section 169 of the Internal Revenue Code of 1954, as amended
through December 31, 1985, the amount of the amortization deduction allowed in
computing federal taxable income for those facilities;
(11) the amount of any deemed dividend
from a foreign operating corporation determined pursuant to section 290.17,
subdivision 4, paragraph (g). The deemed
dividend shall be reduced by the amount of the addition to income required by
clauses (20), (21), (22), and (23);
(12) (10) the amount of a
partner's pro rata share of net income which does not flow through to the
partner because the partnership elected to pay the tax on the income under
section 6242(a)(2) of the Internal Revenue Code;
(13) the amount of net income
excluded under section 114 of the Internal Revenue Code;
(14) (11) any increase in
subpart F income, as defined in section 952(a) of the Internal Revenue Code,
for the taxable year when subpart F income is calculated without regard to the
provisions of Division C, title III, section 303(b) of Public Law 110-343;
(15) (12) 80 percent of the
depreciation deduction allowed under section 168(k)(1)(A) and (k)(4)(A) of the
Internal Revenue Code. For purposes of
this clause, if the taxpayer has an activity that in the taxable year generates
a deduction for depreciation under section 168(k)(1)(A) and (k)(4)(A) and the
activity generates a loss for the taxable year that the taxpayer is not allowed
to claim for the taxable year, "the depreciation allowed under section
168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess of
the depreciation claimed by the activity under section 168(k)(1)(A) and
(k)(4)(A) over the amount of the loss from the activity that is not allowed in
the taxable year. In succeeding taxable
years when the losses not allowed in the taxable year are allowed, the
depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
(16) (13) 80 percent of the
amount by which the deduction allowed by section 179 of the Internal Revenue
Code exceeds the deduction allowable by section 179 of the Internal Revenue
Code of 1986, as amended through December 31, 2003;
(17) (14) to the extent
deducted in computing federal taxable income, the amount of the deduction
allowable under section 199 of the Internal Revenue Code;
(18) for taxable years beginning before
January 1, 2013, the exclusion allowed under section 139A of the Internal
Revenue Code for federal subsidies for prescription drug plans;
(19) (15) the amount of expenses
disallowed under section 290.10, subdivision 2; and
(20) an amount equal to the interest and
intangible expenses, losses, and costs paid, accrued, or incurred by any member
of the taxpayer's unitary group to or for the benefit of a corporation that is a
member of the taxpayer's unitary business group that qualifies as a foreign
operating corporation. For purposes of
this clause, intangible expenses and costs include:
(i) expenses, losses, and costs for, or
related to, the direct or indirect acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of intangible property;
(ii) losses incurred, directly or
indirectly, from factoring transactions or discounting transactions;
(iii) royalty, patent, technical, and copyright
fees;
(iv) licensing fees; and
(v) other similar expenses and costs.
For purposes of this clause, "intangible
property" includes stocks, bonds, patents, patent applications, trade
names, trademarks, service marks, copyrights, mask works, trade secrets, and
similar types of intangible assets.
This clause does not apply to any item of interest or
intangible expenses or costs paid, accrued, or incurred, directly or
indirectly, to a foreign operating corporation with respect to such item of
income to the extent that the income to the foreign operating corporation is
income from sources without the United States as defined in subtitle A, chapter
1, subchapter N, part 1, of the Internal Revenue Code;
(21) except as already included
in the taxpayer's taxable income pursuant to clause (20), any interest income
and income generated from intangible property received or accrued by a foreign
operating corporation that is a member of the taxpayer's unitary group. For purposes of this clause, income generated
from intangible property includes:
(i) income related to the direct or
indirect acquisition, use, maintenance or management, ownership, sale,
exchange, or any other disposition of intangible property;
(ii) income from factoring transactions
or discounting transactions;
(iii) royalty, patent, technical, and
copyright fees;
(iv) licensing fees; and
(v) other similar income.
For purposes of this clause, "intangible
property" includes stocks, bonds, patents, patent applications, trade
names, trademarks, service marks, copyrights, mask works, trade secrets, and
similar types of intangible assets.
This clause does not apply to any item of interest or
intangible income received or accrued by a foreign operating corporation with
respect to such item of income to the extent that the income is income from
sources without the United States as defined in subtitle A, chapter 1,
subchapter N, part 1, of the Internal Revenue Code;
(22) the dividends attributable to the
income of a foreign operating corporation that is a member of the taxpayer's
unitary group in an amount that is equal to the dividends paid deduction of a
real estate investment trust under section 561(a) of the Internal Revenue Code
for amounts paid or accrued by the real estate investment trust to the foreign
operating corporation;
(23) the income of a foreign operating
corporation that is a member of the taxpayer's unitary group in an amount that
is equal to gains derived from the sale of real or personal property located in
the United States;
(24) for taxable years beginning before
January 1, 2010, the additional amount allowed as a deduction for donation of
computer technology and equipment under section 170(e)(6) of the Internal
Revenue Code, to the extent deducted from taxable income; and
(25) (16) discharge of
indebtedness income resulting from reacquisition of business indebtedness and
deferred under section 108(i) of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 9. Minnesota Statutes 2012, section 290.01, subdivision 19d, is amended to read:
Subd. 19d. Corporations; modifications decreasing federal taxable income. For corporations, there shall be subtracted from federal taxable income after the increases provided in subdivision 19c:
(1) the amount of foreign dividend gross-up added to gross income for federal income tax purposes under section 78 of the Internal Revenue Code;
(2) the amount of salary expense not allowed for federal income tax purposes due to claiming the work opportunity credit under section 51 of the Internal Revenue Code;
(3) any dividend (not including any distribution in liquidation) paid within the taxable year by a national or state bank to the United States, or to any instrumentality of the United States exempt from federal income taxes, on the preferred stock of the bank owned by the United States or the instrumentality;
(4) amounts disallowed for intangible drilling costs due to differences between this chapter and the Internal Revenue Code in taxable years beginning before January 1, 1987, as follows:
(i) to the extent the disallowed costs are represented by physical property, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7, subject to the modifications contained in subdivision 19e; and
(ii) to the extent the disallowed costs are not represented by physical property, an amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 290.09, subdivision 8;
(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the Internal Revenue Code, except that:
(i) for capital losses incurred in taxable years beginning after December 31, 1986, capital loss carrybacks shall not be allowed;
(ii) for capital losses incurred in taxable years beginning after December 31, 1986, a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be allowed;
(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryback to each of the three taxable years preceding the loss year, subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
(iv) for capital losses incurred in taxable years beginning before January 1, 1987, a capital loss carryover to each of the five taxable years succeeding the loss year to the extent such loss was not used in a prior taxable year and subject to the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed;
(6) an amount for interest and expenses relating to income not taxable for federal income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 291 of the Internal Revenue Code in computing federal taxable income;
(7) in the case of mines, oil and gas wells,
other natural deposits, and timber for which percentage depletion was
disallowed pursuant to subdivision 19c, clause (9) (8), a
reasonable allowance for depletion based on actual cost. In the case of leases the deduction must be
apportioned between the lessor and lessee in accordance with rules prescribed
by the commissioner. In the case of
property held in trust, the allowable deduction must be apportioned between the
income beneficiaries and the trustee in accordance with the pertinent
provisions of the trust, or if there is no provision in the instrument, on the
basis of the trust's income allocable to each;
(8) for certified pollution control facilities placed in service in a taxable year beginning before December 31, 1986, and for which amortization deductions were elected under section 169 of the Internal Revenue Code of 1954, as amended through December 31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, subdivision 7;
(9) amounts included in federal taxable
income that are due to refunds of income, excise, or franchise taxes based on
net income or related minimum taxes paid by the corporation to Minnesota,
another state, a political subdivision of another state, the District of
Columbia, or a foreign country or possession of the United States to the extent
that the taxes were added to federal taxable income under section 290.01,
subdivision 19c, clause (1), in a prior taxable year;
(10) 80 percent of royalties,
fees, or other like income accrued or received from a foreign operating
corporation or a foreign corporation which is part of the same unitary business
as the receiving corporation, unless the income resulting from such payments or
accruals is income from sources within the United States as defined in subtitle
A, chapter 1, subchapter N, part 1, of the Internal Revenue Code;
(11) (10) income or gains from
the business of mining as defined in section 290.05, subdivision 1, clause (a),
that are not subject to Minnesota franchise tax;
(12) (11) the amount of
disability access expenditures in the taxable year which are not allowed to be
deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
(13) (12) the amount of
qualified research expenses not allowed for federal income tax purposes under
section 280C(c) of the Internal Revenue Code, but only to the extent that the
amount exceeds the amount of the credit allowed under section 290.068;
(14) (13) the amount of salary
expenses not allowed for federal income tax purposes due to claiming the Indian
employment credit under section 45A(a) of the Internal Revenue Code;
(15) for a corporation whose foreign
sales corporation, as defined in section 922 of the Internal Revenue Code,
constituted a foreign operating corporation during any taxable year ending
before January 1, 1995, and a return was filed by August 15, 1996, claiming the
deduction under section 290.21, subdivision 4, for income received from the
foreign operating corporation, an amount equal to 1.23 multiplied by the amount
of income excluded under section 114 of the Internal Revenue Code, provided the
income is not income of a foreign operating company;
(16) (14) any decrease in
subpart F income, as defined in section 952(a) of the Internal Revenue Code,
for the taxable year when subpart F income is calculated without regard to the
provisions of Division C, title III, section 303(b) of Public Law 110-343;
(17) (15) in each of the five
tax years immediately following the tax year in which an addition is required
under subdivision 19c, clause (15) (12), an amount equal to
one-fifth of the delayed depreciation. For
purposes of this clause, "delayed depreciation" means the amount of
the addition made by the taxpayer under subdivision 19c, clause (15) (12). The resulting delayed depreciation cannot be
less than zero;
(18) (16) in each of the five
tax years immediately following the tax year in which an addition is required
under subdivision 19c, clause (16) (13), an amount equal to
one-fifth of the amount of the addition; and
(19) (17) to the extent
included in federal taxable income, discharge of indebtedness income resulting
from reacquisition of business indebtedness included in federal taxable income
under section 108(i) of the Internal Revenue Code. This subtraction applies only to the extent
that the income was included in net income in a prior year as a result of the
addition under section 290.01, subdivision 19c, clause (25). (16);
and
(18) the amount of expenses not allowed
for federal income tax purposes due to claiming the railroad track maintenance
credit under section 45G(a) of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 10. Minnesota Statutes 2012, section 290.06, subdivision 2c, is amended to read:
Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income taxes imposed by this chapter upon married individuals filing joint returns and surviving spouses as defined in section 2(a) of the Internal Revenue Code must be computed by applying to their taxable net income the following schedule of rates:
(1) On the first $25,680
$35,480, 5.35 percent;
(2) On all over $25,680 $35,480,
but not over $102,030 $140,960, 7.05 percent;
(3) On all over $102,030 $140,960,
but not over $250,000, 7.85 percent.;
(4) On all over $250,000, 9.85 percent.
Married individuals filing separate returns, estates, and trusts must compute their income tax by applying the above rates to their taxable income, except that the income brackets will be one-half of the above amounts.
(b) The income taxes imposed by this chapter upon unmarried individuals must be computed by applying to taxable net income the following schedule of rates:
(1) On the first $17,570 $24,270,
5.35 percent;
(2) On all over $17,570 $24,270,
but not over $57,710 $79,730, 7.05 percent;
(3) On all over $57,710 $79,730,
but not over $150,000, 7.85 percent.;
(4) On all over $150,000, 9.85 percent.
(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as a head of household as defined in section 2(b) of the Internal Revenue Code must be computed by applying to taxable net income the following schedule of rates:
(1) On the first $21,630 $29,880,
5.35 percent;
(2) On all over $21,630 $29,880,
but not over $86,910 $120,070, 7.05 percent;
(3) On all over $86,910 $120,070,
but not over $200,000, 7.85 percent.;
(4) On all over $200,000, 9.85 percent.
(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax of any individual taxpayer whose taxable net income for the taxable year is less than an amount determined by the commissioner must be computed in accordance with tables prepared and issued by the commissioner of revenue based on income brackets of not more than $100. The amount of tax for each bracket shall be computed at the rates set forth in this subdivision, provided that the commissioner may disregard a fractional part of a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
(e) An individual who is not a Minnesota resident for the entire year must compute the individual's Minnesota income tax as provided in this subdivision. After the application of the nonrefundable credits provided in this chapter, the tax liability must then be multiplied by a fraction in which:
(1) the numerator is the individual's Minnesota source federal adjusted gross income as defined in section 62 of the Internal Revenue Code and increased by the additions required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), and (16) to (18), and reduced by the Minnesota assignable portion of the subtraction for United States government interest under section 290.01, subdivision 19b, clause (1), and the subtractions under section 290.01, subdivision 19b, clauses (8), (9), (13), (14), (16), and (17), after applying the allocation and assignability provisions of section 290.081, clause (a), or 290.17; and
(2) the denominator is the individual's federal adjusted gross income as defined in section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), and (16) to (18), and reduced by the amounts specified in section 290.01, subdivision 19b, clauses (1), (8), (9), (13), (14), (16), and (17).
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 11. Minnesota Statutes 2012, section 290.06, subdivision 2d, is amended to read:
Subd. 2d. Inflation
adjustment of brackets. (a) For
taxable years beginning after December 31, 2000 2013, the minimum
and maximum dollar amounts for each rate bracket for which a tax is imposed in
subdivision 2c shall be adjusted for inflation by the percentage determined
under paragraph (b). For the purpose of
making the adjustment as provided in this subdivision all of the rate brackets
provided in subdivision 2c shall be the rate brackets as they existed for
taxable years beginning after December 31, 1999 2012, and before
January 1, 2001 2014. The
rate applicable to any rate bracket must not be changed. The dollar amounts setting forth the tax
shall be adjusted to reflect the changes in the rate brackets. The rate brackets as adjusted must be rounded
to the nearest $10 amount. If the rate
bracket ends in $5, it must be rounded up to the nearest $10 amount.
(b) The commissioner shall adjust the rate
brackets and by the percentage determined pursuant to the provisions of section
1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "1999"
"2012" shall be substituted for the word "1992." For
2001 2014, the commissioner shall then determine the percent
change from the 12 months ending on August 31, 1999 2012, to the
12 months ending on August 31, 2000 2013, and in each subsequent
year, from the 12 months ending on August 31, 1999 2012, to the
12 months ending on August 31 of the year preceding the taxable year. The determination of the commissioner
pursuant to this subdivision shall not be considered a "rule" and
shall not be subject to the Administrative Procedure Act contained in chapter
14.
No later than December 15 of each year, the commissioner shall announce the specific percentage that will be used to adjust the tax rate brackets.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 12. Minnesota Statutes 2012, section 290.06, is amended by adding a subdivision to read:
Subd. 36. Greater
Minnesota internship credit. (a)
A taxpayer who is an eligible employer may take a credit against the tax due
under this chapter equal to the lesser of:
(1) 40 percent of the compensation paid
to an intern qualifying under the program established under section 136A.129,
but not to exceed $2,000 per intern; or
(2) the amount certified to the
taxpayer by an eligible institution out of the institution's allocation of
credits for the calendar year, as provided in section 136A.129.
(b) Credits allowed to a partnership, a
limited liability company taxed as a partnership, an S corporation, or multiple
owners of property are passed through to the partners, members, shareholders,
or owners, respectively, pro rata to each partner, member, shareholder, or
owner based on their share of the entity's income for the taxable year.
(c) If the amount of credit which the
taxpayer is eligible to receive under this subdivision exceeds the taxpayer's
tax liability under this chapter, the commissioner of revenue shall refund the
excess to the taxpayer.
(d) An amount necessary to pay claims
for refund provided in this subdivision is appropriated from the general fund
to the commissioner of revenue.
(e) An amount equal to one
percent of the total amount of the credits authorized under section 136A.129,
subdivision 4, for an administrative fee for the Office of Higher Education and
participating eligible institutions is appropriated from the general fund to
the commissioner of revenue, for a transfer to the Office of Higher Education.
(f) For purposes of this subdivision,
the terms "eligible employer" and "eligible institution"
have the meanings given in section 136A.129.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2013.
Sec. 13. Minnesota Statutes 2012, section 290.0677, subdivision 2, is amended to read:
Subd. 2. Definitions. (a) For purposes of this section, the following terms have the meanings given.
(b) "Designated area" means a:
(1) combat zone designated by Executive Order from the President of the United States;
(2) qualified hazardous duty area, designated in Public Law; or
(3) location certified by the U.S. Department of Defense as eligible for combat zone tax benefits due to the location's direct support of military operations.
(c) "Active military service" means active duty service in any of the United States armed forces, the National Guard, or reserves.
(d) "Qualified individual" means an
individual who has:
(1) either (i) met one of the
following criteria:
(i) has served at least 20 years in
the military or;
(ii) has a service-connected disability
rating of 100 percent for a total and permanent disability; or
(iii) has been determined by the military to be eligible for compensation from a pension or other retirement pay from the federal government for service in the military, as computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455, or 12733; and
(2) separated from military service before the end of the taxable year.
(e) "Adjusted gross income" has the meaning given in section 61 of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 14. Minnesota Statutes 2012, section 290.068, subdivision 3, is amended to read:
Subd. 3.
Limitation; carryover. (a)(1) The credit for a taxable year
beginning before January 1, 2010, and after December 31, 2012, shall not
exceed the liability for tax. "Liability
for tax" for purposes of this section means the sum of the tax
imposed under section 290.06, subdivision subdivisions 1 and
2c, for the taxable year reduced by the sum of the nonrefundable credits
allowed under this chapter, on all of the entities required to be included
on the combined report of the unitary business.
If the amount of the credit allowed exceeds the liability for tax of the
taxpayer, but is allowed as a result of the liability for tax of other members
of the unitary group for the taxable year, the taxpayer must allocate the
excess as a research credit to another member of the unitary group.
(2) In the case of a corporation which is a partner in a partnership, the credit allowed for the taxable year shall not exceed the lesser of the amount determined under clause (1) for the taxable year or an amount (separately computed with respect to the corporation's interest in the trade or business or entity) equal to the amount of tax attributable to that portion of taxable income which is allocable or apportionable to the corporation's interest in the trade or business or entity.
(b) If the amount of the credit determined under this section for any taxable year exceeds the limitation under clause (a) including amounts allocated to other members of the unitary group, the excess shall be a research credit carryover to each of the 15 succeeding taxable years. The entire amount of the excess unused credit for the taxable year shall be carried first to the earliest of the taxable years to which the credit may be carried and then to each successive year to which the credit may be carried. The amount of the unused credit which may be added under this clause shall not exceed the taxpayer's liability for tax less the research credit for the taxable year.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 15. Minnesota Statutes 2012, section 290.068, subdivision 6a, is amended to read:
Subd. 6a. Credit to be refundable. If the amount of credit allowed in this section for qualified research expenses incurred in taxable years beginning after December 31, 2009, and before January 1, 2013, exceeds the taxpayer's tax liability under this chapter, the commissioner shall refund the excess amount. The credit allowed for qualified research expenses incurred in taxable years beginning after December 31, 2009, and before January 1, 2013, must be used before any research credit earned under subdivision 3.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 16. Minnesota Statutes 2012, section 290.0681, subdivision 1, is amended to read:
Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given.
(b) "Account" means the historic credit administration account in the special revenue fund.
(c) "Office" means the State Historic Preservation Office of the Minnesota Historical Society.
(d) "Project" means
rehabilitation of a certified historic structure, as defined in section
47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is
allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.
(e) "Society" means the Minnesota Historical Society.
(f) "Federal credit" means the
credit allowed under section 47(a)(2) of the Internal Revenue Code.
(g) "Placed in service" has
the meaning used in section 47 of the Internal Revenue Code.
(h) "Qualified rehabilitation
expenditures" has the meaning given in section 47 of the Internal Revenue
Code.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 17. Minnesota Statutes 2012, section 290.0681, subdivision 3, is amended to read:
Subd. 3.
Applications; allocations. (a) To qualify for a credit or grant
under this section, the developer of a project must apply to the office before
the rehabilitation begins. The
application must contain the information and be in the form prescribed by the
office. The office may collect a fee for
application of up to $5,000 0.5 percent of
qualified rehabilitation
expenditures, up to $40,000, based on estimated qualified rehabilitation expenses
expenditures, to offset costs associated with personnel and
administrative expenses related to administering the credit and preparing the
economic impact report in subdivision 9.
Application fees are deposited in the account. The application must indicate if the
application is for a credit or a grant in lieu of the credit or a combination
of the two and designate the taxpayer qualifying for the credit or the
recipient of the grant.
(b) Upon approving an application for credit, the office shall issue allocation certificates that:
(1) verify eligibility for the credit or grant;
(2) state the amount of credit or grant anticipated with the project, with the credit amount equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated in the application;
(3) state that the credit or grant allowed may increase or decrease if the federal credit the project receives at the time it is placed in service is different than the amount anticipated at the time the allocation certificate is issued; and
(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or grant recipient is entitled to receive the credit or grant at the time the project is placed in service, provided that date is within three calendar years following the issuance of the allocation certificate.
(c) The office, in consultation with the
commissioner of revenue, shall determine if the project is eligible for
a credit or a grant under this section and must notify the developer in writing
of its determination. Eligibility
for the credit is subject to review and audit by the commissioner of revenue.
(d) The federal credit recapture and repayment requirements under section 50 of the Internal Revenue Code do not apply to the credit allowed under this section.
(e) Any decision of the office under
paragraph (c) may be challenged as a contested case under chapter 14. The contested case proceeding must be
initiated within 45 days of the date of written notification by the office.
EFFECTIVE
DATE. This section is
effective the day following final enactment and the change in paragraph (a)
applies to applications first received on or after the day following final
enactment.
Sec. 18. Minnesota Statutes 2012, section 290.0681, subdivision 4, is amended to read:
Subd. 4. Credit certificates; grants. (a)(1) The developer of a project for which the office has issued an allocation certificate must notify the office when the project is placed in service. Upon verifying that the project has been placed in service, and was allowed a federal credit, the office must issue a credit certificate to the taxpayer designated in the application or must issue a grant to the recipient designated in the application. The credit certificate must state the amount of the credit.
(2) The credit amount equals the federal credit allowed for the project.
(3) The grant amount equals 90 percent of the federal credit allowed for the project.
(b) The recipient of a credit certificate may assign the certificate to another taxpayer, which is then allowed the credit under this section or section 297I.20, subdivision 3. An assignment is not valid unless the assignee notifies the commissioner within 30 days of the date that the assignment is made. The commissioner shall prescribe the forms necessary for notifying the commissioner of the assignment of a credit certificate and for claiming a credit by assignment.
(c) Credits passed through to
partners, members, shareholders, or owners pursuant to subdivision 5 are not an
assignment of a credit certificate under this subdivision.
(d) A grant agreement between the office
and the recipient of a grant may allow the grant to be issued to another
individual or entity.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 19. Minnesota Statutes 2012, section 290.0681, subdivision 5, is amended to read:
Subd. 5. Partnerships; multiple owners. Credits granted to a partnership, a limited liability company taxed as a partnership, S corporation, or multiple owners of property are passed through to the partners, members, shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or owner based on their share of the entity's assets or as specially allocated in their organizational documents or any other executed agreement, as of the last day of the taxable year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 20. Minnesota Statutes 2012, section 290.0681, subdivision 10, is amended to read:
Subd. 10. Sunset. This section expires after fiscal year 2015
2021, except that the office's authority to issue credit certificates
under subdivision 4 based on allocation certificates that were issued before
fiscal year 2016 2022 remains in effect through 2018 2024,
and the reporting requirements in subdivision 9 remain in effect through the
year following the year in which all allocation certificates have either been
canceled or resulted in issuance of credit certificates, or 2019 2025,
whichever is earlier.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 21. Minnesota Statutes 2012, section 290.091, subdivision 1, is amended to read:
Subdivision 1. Imposition of tax. In addition to all other taxes imposed by this chapter a tax is imposed on individuals, estates, and trusts equal to the excess (if any) of
(a) an amount equal to 6.4 6.75
percent of alternative minimum taxable income after subtracting the exemption
amount, over
(b) the regular tax for the taxable year.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 22. Minnesota Statutes 2012, section 290.091, subdivision 2, is amended to read:
Subd. 2. Definitions. For purposes of the tax imposed by this
section, the following terms have the meanings given:
(a) "Alternative minimum taxable income" means the sum of the following for the taxable year:
(1) the taxpayer's federal alternative minimum taxable income as defined in section 55(b)(2) of the Internal Revenue Code;
(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum taxable income, but excluding:
(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
(ii) the medical expense deduction;
(iii) the casualty, theft, and disaster loss deduction; and
(iv) the impairment-related work expenses of a disabled person;
(3) for depletion allowances computed under section 613A(c) of the Internal Revenue Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), to the extent not included in federal alternative minimum taxable income, the excess of the deduction for depletion allowable under section 611 of the Internal Revenue Code for the taxable year over the adjusted basis of the property at the end of the taxable year (determined without regard to the depletion deduction for the taxable year);
(4) to the extent not included in federal alternative minimum taxable income, the amount of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue Code determined without regard to subparagraph (E);
(5) to the extent not included in federal alternative minimum taxable income, the amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and
(6) the
amount of addition required by section 290.01, subdivision 19a, clauses (7) to
(9), (12), (13), and (16) to (18);
less the sum of the amounts determined under the following:
(1) interest income as defined in section 290.01, subdivision 19b, clause (1);
(2) an overpayment of state income tax as provided by section 290.01, subdivision 19b, clause (2), to the extent included in federal alternative minimum taxable income;
(3) the amount of investment interest paid or accrued within the taxable year on indebtedness to the extent that the amount does not exceed net investment income, as defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted in computing federal adjusted gross income;
(4) amounts subtracted from federal taxable income as provided by section 290.01, subdivision 19b, clauses (6), (8) to (14), and (16); and
(5) the amount of the net operating loss allowed under section 290.095, subdivision 11, paragraph (c).
In the case of an estate or trust, alternative minimum taxable income must be computed as provided in section 59(c) of the Internal Revenue Code.
(b) "Investment interest" means investment interest as defined in section 163(d)(3) of the Internal Revenue Code.
(c) "Net minimum tax" means the minimum tax imposed by this section.
(d) "Regular tax" means the tax that would be imposed under this chapter (without regard to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed under this chapter.
(e) "Tentative minimum tax" equals 6.4
6.75 percent of alternative minimum taxable income after subtracting the
exemption amount determined under subdivision 3.
EFFECTIVE
DATE. This section is effective
for taxable years beginning after December 31, 2012.
Sec. 23. Minnesota Statutes 2012, section 290.091, subdivision 6, is amended to read:
Subd. 6. Credit for prior years' liability. (a) A credit is allowed against the tax imposed by this chapter on individuals, trusts, and estates equal to the minimum tax credit for the taxable year. The minimum tax credit equals the adjusted net minimum tax for taxable years beginning after December 31, 1988, reduced by the minimum tax credits allowed in a prior taxable year. The credit may not exceed the excess (if any) for the taxable year of
(1) the regular tax, over
(2) the greater of (i) the tentative alternative minimum tax, or (ii) zero.
(b) The
adjusted net minimum tax for a taxable year equals the lesser of the net
minimum tax or the excess (if any) of
(1) the tentative minimum tax, over
(2) 6.4 6.75 percent of the
sum of
(i) adjusted gross income as defined in section 62 of the Internal Revenue Code,
(ii) interest income as defined in section 290.01, subdivision 19a, clause (1),
(iii) interest on specified private activity bonds, as defined in section 57(a)(5) of the Internal Revenue Code, to the extent not included under clause (ii),
(iv) depletion as defined in section 57(a)(1), determined without regard to the last sentence of paragraph (1), of the Internal Revenue Code, less
(v) the deductions allowed in computing alternative minimum taxable income provided in subdivision 2, paragraph (a), clause (2) of the first series of clauses and clauses (1), (2), and (3) of the second series of clauses, and
(vi) the exemption amount determined under subdivision 3.
In the case of an individual who is not a Minnesota resident for the entire year, adjusted net minimum tax must be multiplied by the fraction defined in section 290.06, subdivision 2c, paragraph (e). In the case of a trust or estate, adjusted net minimum tax must be multiplied by the fraction defined under subdivision 4, paragraph (b).
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 24. Minnesota Statutes 2012, section 290.0921, subdivision 3, is amended to read:
Subd. 3. Alternative minimum taxable income. "Alternative minimum taxable income" is Minnesota net income as defined in section 290.01, subdivision 19, and includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), (f), and (h) of the Internal Revenue Code. If a corporation files a separate company Minnesota tax return, the minimum tax must be computed on a separate company basis. If a corporation is part of a tax group filing a unitary return, the minimum tax must be computed on a unitary basis. The following adjustments must be made.
(1) For purposes of the depreciation adjustments under section 56(a)(1) and 56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal income tax purposes, including any modification made in a taxable year under section 290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7, paragraph (c).
For taxable years beginning after December 31, 2000, the amount of any remaining modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation allowance in the first taxable year after December 31, 2000.
(2) The portion of the depreciation
deduction allowed for federal income tax purposes under section 168(k) of the
Internal Revenue Code that is required as an addition under section 290.01,
subdivision 19c, clause (15) (12), is disallowed in determining
alternative minimum taxable income.
(3) The subtraction for depreciation
allowed under section 290.01, subdivision 19d, clause (17) (15),
is allowed as a depreciation deduction in determining alternative minimum
taxable income.
(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) of the Internal Revenue Code does not apply.
(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal Revenue Code does not apply.
(6) The special rule for dividends from
section 936 companies under section 56(g)(4)(C)(iii) does not apply.
(7) (6) The tax preference
for depletion under section 57(a)(1) of the Internal Revenue Code does not
apply.
(8) (7) The tax preference
for intangible drilling costs under section 57(a)(2) of the Internal Revenue
Code must be calculated without regard to
subparagraph (E) and the subtraction under section 290.01, subdivision 19d,
clause (4).
(9) (8) The tax preference for tax exempt
interest under section 57(a)(5) of the Internal Revenue Code does not apply.
(10) (9) The tax preference
for charitable contributions of appreciated property under section 57(a)(6) of
the Internal Revenue Code does not apply.
(11) (10) For purposes of
calculating the tax preference for accelerated depreciation or amortization on
certain property placed in service before January 1, 1987, under section
57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable
year is the deduction allowed under section 290.01, subdivision 19e.
For taxable years beginning after December 31, 2000, the amount of any remaining modification made under section 290.01, subdivision 19e, not previously deducted is a depreciation or amortization allowance in the first taxable year after December 31, 2004.
(12) (11) For purposes of
calculating the adjustment for adjusted current earnings in section 56(g) of
the Internal Revenue Code, the term "alternative minimum taxable
income" as it is used in section 56(g) of the Internal Revenue Code, means
alternative minimum taxable income as defined in this subdivision, determined
without regard to the adjustment for adjusted current earnings in section 56(g)
of the Internal Revenue Code.
(13) (12) For purposes of
determining the amount of adjusted current earnings under section 56(g)(3) of
the Internal Revenue Code, no adjustment shall be made under section 56(g)(4)
of the Internal Revenue Code with respect to (i) the amount of foreign dividend
gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1),
or (ii) the amount of refunds of income, excise, or franchise taxes
subtracted as provided in section 290.01, subdivision 19d, clause (9), or
(iii) the amount of royalties, fees or other like income subtracted as provided
in section 290.01, subdivision 19d, clause (10) .
(14) (13) Alternative
minimum taxable income excludes the income from operating in a job opportunity
building zone as provided under section 469.317.
(15) (14) Alternative minimum taxable income excludes the income from operating in a biotechnology and health sciences industry zone as provided under section 469.337.
Items of tax preference must not be reduced below zero as a result of the modifications in this subdivision.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 25. Minnesota Statutes 2012, section 290.0922, subdivision 1, is amended to read:
Subdivision 1. Imposition. (a) In addition to the tax imposed by this chapter without regard to this section, the franchise tax imposed on a corporation required to file under section 289A.08, subdivision 3, other than a corporation treated as an "S" corporation under section 290.9725 for the taxable year includes a tax equal to the following amounts:
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If the sum of the corporation's Minnesota property, payrolls, and sales or receipts is: |
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the tax equals: |
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less
than |
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$930,000
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$0
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$930,000
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to
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$1,869,999
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$190
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$1,870,000
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to
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$9,339,999
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$560
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$9,340,000
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to
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$18,679,999
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$1,870
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$18,680,000
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to
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$37,359,999
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$3,740
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$37,360,000
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or
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more
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$9,340
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(b) A tax is imposed for each taxable year on a corporation required to file a return under section 289A.12, subdivision 3, that is treated as an "S" corporation under section 290.9725 and on a partnership required to file a return under section 289A.12, subdivision 3, other than a partnership that derives over 80 percent of its income from farming. The tax imposed under this paragraph is due on or before the due date of the return for the taxpayer due under section 289A.18, subdivision 1. The commissioner shall prescribe the return to be used for payment of this tax. The tax under this paragraph is equal to the following amounts:
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If the sum of the S corporation's or partnership's Minnesota property, payrolls, and sales or receipts is: |
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the tax equals: |
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less
than |
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$930,000
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$0
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$930,000
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to
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$1,869,999
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$190
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$1,870,000
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to
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$9,339,999
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$560
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$9,340,000
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to
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$18,679,999
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$1,870
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$18,680,000
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to
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$37,359,999
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$3,740
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$37,360,000
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or |
more |
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$9,340 |
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(c) The commissioner shall adjust
the dollar amounts of both the tax and the property, payrolls, and sales or
receipts thresholds in paragraphs (a) and (b) by the percentage determined
pursuant to the provisions of section 1(f) of the Internal Revenue Code, except
that in section 1(f)(3)(B) the word "2012" must be substituted for
the word "1992." For 2014, the commissioner shall determine the
percentage change from the 12 months ending on August 31, 2012, to the 12
months ending on August 31, 2013, and in each subsequent year, from the 12
months ending on August 31, 2012, to the 12 months ending on August 31 of the
year preceding the taxable year. The
determination of the commissioner pursuant to this subdivision is not a
"rule" subject to the Administrative Procedure Act contained in
chapter 14. The tax amounts as adjusted
must be rounded to the nearest $10 amount and the threshold amounts must be
adjusted to the nearest $10,000 amount. For
tax amounts that end in $5, the amount is rounded up to the nearest $10 amount
and for the threshold amounts that end in $5,000, the amount is rounded up to
the nearest $10,000.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 26. Minnesota Statutes 2012, section 290.095, subdivision 2, is amended to read:
Subd. 2. Defined
and limited. (a) The term "net
operating loss" as used in this section shall mean a net operating loss as
defined in section 172(c) of the Internal Revenue Code, with the modifications
specified in subdivision 4. The deductions
provided in section 290.21 and the modification provided in section 290.01,
subdivision 19d, clause (10), cannot be used in the determination of a net
operating loss.
(b) The term "net operating loss deduction" as used in this section means the aggregate of the net operating loss carryovers to the taxable year, computed in accordance with subdivision 3. The provisions of section 172(b) of the Internal Revenue Code relating to the carryback of net operating losses, do not apply.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 27. Minnesota Statutes 2012, section 290.10, subdivision 1, is amended to read:
Subdivision 1. Expenses,
interest, and taxes. Except as
provided in section 290.17, subdivision 4, paragraph (i), In computing the
net income of a taxpayer no deduction shall in any case be allowed for
expenses, interest and taxes connected with or allocable against the production
or receipt of all income not included in the measure of the tax imposed by this
chapter, except that for corporations engaged in the business of mining or
producing iron ore, the mining of which is subject to the occupation tax
imposed by section 298.01, subdivision 4, this shall not prevent the deduction
of expenses and other items to the extent that the expenses and other items are
allowable under this chapter and are not deductible, capitalizable, retainable
in basis, or taken into account by allowance or otherwise in computing the
occupation tax and do not exceed the amounts taken for federal income tax
purposes for that year. Occupation taxes
imposed under chapter 298, royalty taxes imposed under chapter 299, or
depletion expenses may not be deducted under this subdivision.
Sec. 28. Minnesota Statutes 2012, section 290.17, subdivision 4, is amended to read:
Subd. 4. Unitary business principle. (a) If a trade or business conducted wholly within this state or partly within and partly without this state is part of a unitary business, the entire income of the unitary business is subject to apportionment pursuant to section 290.191. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary business is considered to be derived from any particular source and none may be allocated to a particular place except as provided by the applicable apportionment formula. The provisions of this subdivision do not apply to business income subject to subdivision 5, income of an insurance company, or income of an investment company determined under section 290.36.
(b) The term "unitary business" means business activities or operations which result in a flow of value between them. The term may be applied within a single legal entity or between multiple entities and without regard to whether each entity is a sole proprietorship, a corporation, a partnership or a trust.
(c) Unity is presumed whenever there is unity of ownership, operation, and use, evidenced by centralized management or executive force, centralized purchasing, advertising, accounting, or other controlled interaction, but the absence of these centralized activities will not necessarily evidence a nonunitary business. Unity is also presumed when business activities or operations are of mutual benefit, dependent upon or contributory to one another, either individually or as a group.
(d) Where a business operation conducted in Minnesota is owned by a business entity that carries on business activity outside the state different in kind from that conducted within this state, and the other business is conducted entirely outside the state, it is presumed that the two business operations are unitary in nature, interrelated, connected, and interdependent unless it can be shown to the contrary.
(e) Unity of ownership is not deemed to
does not exist when a corporation is two or more corporations
are involved unless that corporation is a member of a group of two or
more business entities and more than 50 percent of the voting stock of each
member of the group corporation is directly or indirectly owned
by a common owner or by common owners, either corporate or noncorporate, or by
one or more of the member corporations of the group. For this purpose, the term "voting
stock" shall include membership interests of mutual insurance holding
companies formed under section 66A.40.
(f) The net income and apportionment
factors under section 290.191 or 290.20 of foreign corporations and other
foreign entities which are part of a unitary business shall not be included in
the net income or the apportionment factors of the unitary business; except
that the income and apportionment factors of a foreign entity, other than an
entity treated as a C corporation for federal income tax purposes, that are
included in the federal taxable income, as defined in section 63 of the Internal
Revenue Code as amended through the date named in section 290.01, subdivision
19, of a domestic corporation, domestic entity, or individual must be included
in determining net income and the factors to be used in the apportionment of
net income pursuant to section 290.191 or 290.20. A foreign corporation or other foreign entity
which is not included on a combined report and which is required to file
a return under this chapter shall file on a separate return basis. The net income and apportionment factors
under section 290.191 or 290.20 of foreign operating corporations shall not be
included in the net income or the apportionment factors of the unitary business
except as provided in paragraph (g).
(g) The adjusted net income of a
foreign operating corporation shall be deemed to be paid as a dividend on the
last day of its taxable year to each shareholder thereof, in proportion to each
shareholder's ownership, with which such corporation is engaged in a unitary
business. Such deemed dividend shall be
treated as a dividend under section 290.21, subdivision 4.
Dividends actually paid by a foreign
operating corporation to a corporate shareholder which is a member of the same
unitary business as the foreign operating corporation shall be eliminated from
the net income of the unitary business in preparing a combined report for the
unitary business. The adjusted net
income of a foreign operating corporation shall be its net income adjusted as
follows:
(1) any taxes paid or accrued to a
foreign country, the commonwealth of Puerto Rico, or a United States possession
or political subdivision of any of the foregoing shall be a deduction; and
(2) the subtraction from federal
taxable income for payments received from foreign corporations or foreign
operating corporations under section 290.01, subdivision 19d, clause (10),
shall not be allowed.
If a foreign operating
corporation incurs a net loss, neither income nor deduction from that
corporation shall be included in determining the net income of the unitary business.
(h) (g) For purposes of
determining the net income of a unitary business and the factors to be used in
the apportionment of net income pursuant to section 290.191 or 290.20, there
must be included only the income and apportionment factors of domestic
corporations or other domestic entities other than foreign operating
corporations that are determined to be part of the unitary business
pursuant to this subdivision, notwithstanding that foreign corporations or
other foreign entities might be included in the unitary business; except
that the income and apportionment factors of a foreign entity, other than an
entity treated as a C corporation for federal income tax purposes, that is
included in the federal taxable income, as defined in section 63 of the
Internal Revenue Code as amended through the date named in section 290.01,
subdivision 19, of a domestic corporation, domestic entity, or individual must
be included in determining net income and the factors to be used in the
apportionment of net income pursuant to section 290.191 or 290.20.
(i) Deductions for expenses, interest,
or taxes otherwise allowable under this chapter that are connected with or
allocable against dividends, deemed dividends described in paragraph (g), or
royalties, fees, or other like income described in section 290.01, subdivision
19d, clause (10), shall not be disallowed.
(j) (h) Each corporation or
other entity, except a sole proprietorship, that is part of a unitary business
must file combined reports as the commissioner determines. On the reports, all intercompany transactions
between entities included pursuant to paragraph (h) (g) must be
eliminated and the entire net income of the unitary business determined in
accordance with this subdivision is apportioned among the entities by using
each entity's Minnesota factors for apportionment purposes in the numerators of
the apportionment formula and the total factors for apportionment purposes of
all entities included pursuant to paragraph (h) (g) in the
denominators of the apportionment formula.
Except as otherwise provided by paragraph (f), all sales of the
unitary business made within this state pursuant to section 290.191 or 290.20
must be included on the combined report of a corporation or other entity that
is a member of the unitary business and is subject to the jurisdiction of this
state to impose tax under this chapter.
(k) (i) If a corporation has
been divested from a unitary business and is included in a combined report for
a fractional part of the common accounting period of the combined report:
(1) its income includable in the combined report is its income incurred for that part of the year determined by proration or separate accounting; and
(2) its sales, property, and payroll included in the apportionment formula must be prorated or accounted for separately.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 29. Minnesota Statutes 2012, section 290.191, subdivision 5, is amended to read:
Subd. 5. Determination of sales factor. For purposes of this section, the following rules apply in determining the sales factor.
(a) The sales factor includes all sales, gross earnings, or receipts received in the ordinary course of the business, except that the following types of income are not included in the sales factor:
(1) interest;
(2) dividends;
(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
(4) sales of property used in the trade or
business, except sales of leased property of a type which is regularly sold as
well as leased; and
(5) sales of debt instruments as defined in
section 1275(a)(1) of the Internal Revenue Code or sales of stock; and.
(6) royalties, fees, or other like income
of a type which qualify for a subtraction from federal taxable income under
section 290.01, subdivision 19d, clause (10).
(b) Sales of tangible personal property are made within this state if the property is received by a purchaser at a point within this state, and the taxpayer is taxable in this state, regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination of the property.
(c) Tangible personal property delivered to a common or contract carrier or foreign vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, regardless of f.o.b. point or other conditions of the sale.
(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is licensed by a state or political subdivision to resell this property only within the state of ultimate destination, the sale is made in that state.
(e) Sales made by or through a corporation that is qualified as a domestic international sales corporation under section 992 of the Internal Revenue Code are not considered to have been made within this state.
(f) Sales, rents, royalties, and other income in connection with real property is attributed to the state in which the property is located.
(g) Receipts from the lease or rental of tangible personal property, including finance leases and true leases, must be attributed to this state if the property is located in this state and to other states if the property is not located in this state. Receipts from the lease or rental of moving property including, but not limited to, motor vehicles, rolling stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts factor to the extent that the property is used in this state. The extent of the use of moving property is determined as follows:
(1) A motor vehicle is used wholly in the state in which it is registered.
(2) The extent that rolling stock is used in this state is determined by multiplying the receipts from the lease or rental of the rolling stock by a fraction, the numerator of which is the miles traveled within this state by the leased or rented rolling stock and the denominator of which is the total miles traveled by the leased or rented rolling stock.
(3) The extent that an aircraft is used in this state is determined by multiplying the receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft.
(4) The extent that a vessel, mobile equipment, or other mobile property is used in the state is determined by multiplying the receipts from the lease or rental of the property by a fraction, the numerator of which is the number of days during the taxable year the property was in this state and the denominator of which is the total days in the taxable year.
(h) Royalties and other income not
described in paragraph (a), clause (6), received for the use of or for the
privilege of using intangible property, including patents, know-how, formulas,
designs, processes, patterns, copyrights, trade names, service names,
franchises, licenses, contracts, customer lists, or similar items, must be
attributed to the state in which the property is used by the purchaser. If the property is used in more than one state, the royalties or other income must be apportioned to this state pro rata according to the portion of use in this state. If the portion of use in this state cannot be determined, the royalties or other income must be excluded from both the numerator and the denominator. Intangible property is used in this state if the purchaser uses the intangible property or the rights therein in the regular course of its business operations in this state, regardless of the location of the purchaser's customers.
(i) Sales of intangible property are made within the state in which the property is used by the purchaser. If the property is used in more than one state, the sales must be apportioned to this state pro rata according to the portion of use in this state. If the portion of use in this state cannot be determined, the sale must be excluded from both the numerator and the denominator of the sales factor. Intangible property is used in this state if the purchaser used the intangible property in the regular course of its business operations in this state.
(j) Receipts from the performance of services must be attributed to the state where the services are received. For the purposes of this section, receipts from the performance of services provided to a corporation, partnership, or trust may only be attributed to a state where it has a fixed place of doing business. If the state where the services are received is not readily determinable or is a state where the corporation, partnership, or trust receiving the service does not have a fixed place of doing business, the services shall be deemed to be received at the location of the office of the customer from which the services were ordered in the regular course of the customer's trade or business. If the ordering office cannot be determined, the services shall be deemed to be received at the office of the customer to which the services are billed.
(k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts from management, distribution, or administrative services performed by a corporation or trust for a fund of a corporation or trust regulated under United States Code, title 15, sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of the fund resides. Under this paragraph, receipts for services attributed to shareholders are determined on the basis of the ratio of: (1) the average of the outstanding shares in the fund owned by shareholders residing within Minnesota at the beginning and end of each year; and (2) the average of the total number of outstanding shares in the fund at the beginning and end of each year. Residence of the shareholder, in the case of an individual, is determined by the mailing address furnished by the shareholder to the fund. Residence of the shareholder, when the shares are held by an insurance company as a depositor for the insurance company policyholders, is the mailing address of the policyholders. In the case of an insurance company holding the shares as a depositor for the insurance company policyholders, if the mailing address of the policyholders cannot be determined by the taxpayer, the receipts must be excluded from both the numerator and denominator. Residence of other shareholders is the mailing address of the shareholder.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 30. Minnesota Statutes 2012, section 290.21, subdivision 4, is amended to read:
Subd. 4. Dividends received from another corporation. (a)(1) Eighty percent of dividends received by a corporation during the taxable year from another corporation, in which the recipient owns 20 percent or more of the stock, by vote and value, not including stock described in section 1504(a)(4) of the Internal Revenue Code when the corporate stock with respect to which dividends are paid does not constitute the stock in trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not constitute property held by the taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or business, or when the trade or business of the taxpayer does not consist principally of the holding of the stocks and the collection of the income and gains therefrom; and
(2)(i) the remaining 20 percent of dividends if the dividends received are the stock in an affiliated company transferred in an overall plan of reorganization and the dividend is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as amended through December 31, 1989;
(ii) the remaining 20 percent of dividends if the dividends are received from a corporation which is subject to tax under section 290.36 and which is a member of an affiliated group of corporations as defined by the Internal Revenue Code and the dividend is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as amended through December 31, 1989, or is deducted under an election under section 243(b) of the Internal Revenue Code; or
(iii) the remaining 20 percent of the dividends if the dividends are received from a property and casualty insurer as defined under section 60A.60, subdivision 8, which is a member of an affiliated group of corporations as defined by the Internal Revenue Code and either: (A) the dividend is eliminated in consolidation under Treasury Regulation 1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted under an election under section 243(b) of the Internal Revenue Code.
(b) Seventy percent of dividends received by a corporation during the taxable year from another corporation in which the recipient owns less than 20 percent of the stock, by vote or value, not including stock described in section 1504(a)(4) of the Internal Revenue Code when the corporate stock with respect to which dividends are paid does not constitute the stock in trade of the taxpayer, or does not constitute property held by the taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or business, or when the trade or business of the taxpayer does not consist principally of the holding of the stocks and the collection of income and gain therefrom.
(c) The dividend deduction provided in this subdivision shall be allowed only with respect to dividends that are included in a corporation's Minnesota taxable net income for the taxable year.
The dividend deduction provided in this subdivision does not apply to a dividend from a corporation which, for the taxable year of the corporation in which the distribution is made or for the next preceding taxable year of the corporation, is a corporation exempt from tax under section 501 of the Internal Revenue Code.
The dividend deduction provided in this
subdivision does not apply to a dividend received from a real estate investment
trust as defined in section 856 of the Internal Revenue Code.
The dividend deduction provided in this subdivision applies to the amount of regulated investment company dividends only to the extent determined under section 854(b) of the Internal Revenue Code.
The dividend deduction provided in this subdivision shall not be allowed with respect to any dividend for which a deduction is not allowed under the provisions of section 246(c) of the Internal Revenue Code.
(d) If dividends received by a corporation that does not have nexus with Minnesota under the provisions of Public Law 86-272 are included as income on the return of an affiliated corporation permitted or required to file a combined report under section 290.17, subdivision 4, or 290.34, subdivision 2, then for purposes of this subdivision the determination as to whether the trade or business of the corporation consists principally of the holding of stocks and the collection of income and gains therefrom shall be made with reference to the trade or business of the affiliated corporation having a nexus with Minnesota.
(e) The deduction provided by this subdivision does not apply if the dividends are paid by a FSC as defined in section 922 of the Internal Revenue Code.
(f) If one or more of the members of the unitary group whose income is included on the combined report received a dividend, the deduction under this subdivision for each member of the unitary business required to file a return under this chapter is the product of: (1) 100 percent of the dividends received by members of the group; (2) the percentage allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business income apportionable to this state for the taxable year under section 290.191 or 290.20.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 31. Minnesota Statutes 2012, section 298.01, subdivision 3b, is amended to read:
Subd. 3b. Deductions. (a) For purposes of determining taxable
income under subdivision 3, the deductions from gross income include only those
expenses necessary to convert raw ores to marketable quality. Such expenses include costs associated with
refinement but do not include expenses such as transportation, stockpiling,
marketing, or marine insurance that are incurred after marketable ores are
produced, unless the expenses are included in gross income. The allowable deductions from a mine or plant
that mines and produces more than one mineral, metal, or energy resource must
be determined separately for the purposes of computing the deduction in section
290.01, subdivision 19c, clause (9) (8). These deductions may be combined on one
occupation tax return to arrive at the deduction from gross income for all
production.
(b) The provisions of section 290.01,
subdivisions 19c, clauses (6) and (9), and 19d, clauses (7) and (11) (10),
are not used to determine taxable income.
Sec. 32. Laws 2010, chapter 216, section 11, the effective date, is amended to read:
EFFECTIVE
DATE. This section is effective for
taxable years beginning after December 31, 2009, for certified historic
structures for which qualified costs of rehabilitation are first paid under
construction contracts entered into after May 1, 2010 rehabilitation
expenditures are first paid by the developer or taxpayer after May 1, 2010, for
rehabilitation that occurs after May 1, 2010, provided that the application
under subdivision 3 is submitted before the project is placed in service.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies retroactively for
taxable years beginning after December 31, 2009, and for certified historic
structures placed in service after May 1, 2010, but the office may not issue
certificates allowed under the change to this section until July 1, 2013.
Sec. 33. ESTIMATED
TAXES; EXCEPTIONS.
No addition to tax, penalties, or
interest may be made under Minnesota Statutes, section 289A.25, for any period
before September 15, 2013, with respect to an underpayment of estimated tax, to
the extent that the underpayment was created or increased by the increase in
income tax rates under this article.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
Sec. 34. REPEALER.
Minnesota Statutes 2012, sections
290.01, subdivision 6b; 290.06, subdivision 22a; and 290.0921, subdivision 7, are
repealed.
EFFECTIVE
DATE. This section is
effective for taxable years beginning after December 31, 2012.
ARTICLE 7
ESTATE AND GIFT TAXES
Section 1. Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read:
Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly stated otherwise, "Minnesota tax laws" means:
(1) the taxes, refunds, and fees administered by or paid to the commissioner under chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24), 290, 290A, 291, 292, 295, 297A, 297B, and 297H, or any similar Indian tribal tax administered by the commissioner pursuant to any tax agreement between the state and the Indian tribal government, and includes any laws for the assessment, collection, and enforcement of those taxes, refunds, and fees; and
(2) section 273.1315.
EFFECTIVE
DATE. This section is
effective for gifts made after December 31, 2012.
Sec. 2. Minnesota Statutes 2012, section 270B.03, subdivision 1, is amended to read:
Subdivision 1. Who may inspect. Returns and return information must, on request, be made open to inspection by or disclosure to the data subject. The request must be made in writing or in accordance with written procedures of the chief disclosure officer of the department that have been approved by the commissioner to establish the identification of the person making the request as the data subject. For purposes of this chapter, the following are the data subject:
(1) in the case of an individual return, that individual;
(2) in
the case of an income tax return filed jointly, either of the individuals with
respect to whom the return is filed;
(3) in the case of a return filed by a business entity, an officer of a corporation, a shareholder owning more than one percent of the stock, or any shareholder of an S corporation; a general partner in a partnership; the owner of a sole proprietorship; a member or manager of a limited liability company; a participant in a joint venture; the individual who signed the return on behalf of the business entity; or an employee who is responsible for handling the tax matters of the business entity, such as the tax manager, bookkeeper, or managing agent;
(4) in the case of an estate return:
(i) the personal representative or trustee of the estate; and
(ii) any beneficiary of the estate as shown on the federal estate tax return;
(5) in the case of a trust return:
(i) the trustee or trustees, jointly or separately; and
(ii) any beneficiary of the trust as shown in the trust instrument;
(6) if liability has been assessed to a transferee under section 270C.58, subdivision 1, the transferee is the data subject with regard to the returns and return information relating to the assessed liability;
(7) in the case of an Indian tribal government or an Indian tribal government-owned entity,
(i) the chair of the tribal government, or
(ii) any person authorized by the tribal
government; and
(8) in the case of a successor as defined
in section 270C.57, subdivision 1, paragraph (b), the successor is the data
subject and information may be disclosed as provided by section 270C.57,
subdivision 4.; and
(9) in the case of a gift return, the
donor.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2012, section 289A.10, subdivision 1, is amended to read:
Subdivision 1. Return required. In the case of a decedent who has an interest in property with a situs in Minnesota, the personal representative must submit a Minnesota estate tax return to the commissioner, on a form prescribed by the commissioner, if:
(1) a federal estate tax return is required to be filed; or
(2) the sum of the federal gross estate and federal adjusted taxable gifts made within three years of the date of the decedent's death exceeds $1,000,000.
The return must contain a computation of the Minnesota estate tax due. The return must be signed by the personal representative.
EFFECTIVE
DATE. This section is
effective for estates of decedents dying after December 31, 2012.
Sec. 4. Minnesota Statutes 2012, section 291.005, subdivision 1, is amended to read:
Subdivision 1. Scope. Unless the context otherwise clearly requires, the following terms used in this chapter shall have the following meanings:
(1) "Commissioner" means the commissioner of revenue or any person to whom the commissioner has delegated functions under this chapter.
(2) "Federal gross estate" means the gross estate of a decedent as required to be valued and otherwise determined for federal estate tax purposes under the Internal Revenue Code.
(3) "Internal Revenue Code" means
the United States Internal Revenue Code of 1986, as amended through April
14, 2011 January 3, 2013, but without regard to the provisions of sections
501 and 901 of Public Law 107-16, as amended by Public Law 111-312, and section
301(c) of Public Law 111-312 section 2011, paragraph (f), of the
Internal Revenue Code.
(4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as defined by section 2011(b)(3) of the Internal Revenue Code, plus
(i) the amount of deduction for state death taxes allowed under section 2058 of the Internal Revenue Code;
(ii) the amount of taxable gifts, as defined in section 292.16, and made by the decedent within three years of the decedent's date of death; less
(ii) (iii) (A) the value of
qualified small business property under section 291.03, subdivision 9, and the
value of qualified farm property under section 291.03, subdivision 10, or (B)
$4,000,000, whichever is less.
(5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) excluding therefrom any property included therein which has its situs outside Minnesota, and (b) including therein any property omitted from the federal gross estate which is includable therein, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
(6) "Nonresident decedent" means an individual whose domicile at the time of death was not in Minnesota.
(7) "Personal representative" means the executor, administrator or other person appointed by the court to administer and dispose of the property of the decedent. If there is no executor, administrator or other person appointed, qualified, and acting within this state, then any person in actual or constructive possession of any property having a situs in this state which is included in the federal gross estate of the decedent shall be deemed to be a personal representative to the extent of the property and the Minnesota estate tax due with respect to the property.
(8) "Resident decedent" means an individual whose domicile at the time of death was in Minnesota.
(9) "Situs of property" means, with
respect to:
(i) real property, the state or
country in which it is located; with respect to
(ii) tangible personal property, the
state or country in which it was normally kept or located at the time of the
decedent's death or for a gift of tangible personal property within three
years of death, the state or country in which it was normally kept or located
when the gift was executed; and with respect to
(iii) intangible personal property, the state or country in which the decedent was domiciled at death or for a gift of intangible personal property within three years of death, the state or country in which the decedent was domiciled when the gift was executed.
For a nonresident decedent with an
ownership interest in a pass-through entity with assets that include real or
tangible personal property, situs of the real or tangible personal property is
determined as if the pass-through entity does not exist and the real or
tangible personal property is personally owned by the decedent. If the pass-through entity is owned by a
person or persons in addition to the decedent, ownership of the property is
attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.
(10) "Pass-through entity"
includes the following:
(i) an entity electing S corporation
status under section 1362 of the Internal Revenue Code;
(ii) an entity taxed as a partnership
under subchapter K of the Internal Revenue Code;
(iii) a single-member limited liability
company or similar entity, regardless of whether it is taxed as an association
or is disregarded for federal income tax purposes under Code of Federal
Regulations, title 26, section 301.7701-3; or
(iv) a trust to the extent the property
is includible in the decedent's federal gross estate.
EFFECTIVE
DATE. This section is
effective for decedents dying after December 31, 2012.
Sec. 5. Minnesota Statutes 2012, section 291.03, subdivision 1, is amended to read:
Subdivision 1. Tax
amount. (a) The tax imposed shall be
an amount equal to the proportion of the maximum credit for state death taxes
computed under section 2011 of the Internal Revenue Code, but using Minnesota
adjusted taxable estate instead of federal adjusted taxable estate, as the
Minnesota gross estate bears to the value of the federal gross estate. The tax is reduced by:
(1) the gift tax paid by the decedent
under section 292.17 on gifts included in the Minnesota adjusted taxable estate
and not subtracted as qualified farm or small business property; and
(2) any credit allowed under subdivision
1c.
(b) The tax determined under this subdivision must not be greater than the sum of the following amounts multiplied by a fraction, the numerator of which is the Minnesota gross estate and the denominator of which is the federal gross estate:
(1) the rates and brackets under section 2001(c) of the Internal Revenue Code multiplied by the sum of:
(i) the taxable estate, as defined under section 2051 of the Internal Revenue Code; plus
(ii) adjusted taxable gifts, as defined in section 2001(b) of the Internal Revenue Code; less
(iii) the lesser of (A) the sum of the value of qualified small business property under subdivision 9, and the value of qualified farm property under subdivision 10, or (B) $4,000,000; less
(2) the amount of tax allowed under section 2001(b)(2) of the Internal Revenue Code; and less
(3) the federal credit allowed under section 2010 of the Internal Revenue Code.
(c) For purposes of this subdivision, "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended through December 31, 2000.
EFFECTIVE
DATE. This section is
effective for decedents dying after December 31, 2012.
Sec. 6. Minnesota Statutes 2012, section 291.03, is amended by adding a subdivision to read:
Subd. 1c. Nonresident
decedent tax credit. (a) The
estate of a nonresident decedent that is subject to tax under this chapter on
the value of Minnesota situs property held in a pass-through entity is allowed
a credit against the tax due under this section equal to the lesser of:
(1) the amount of estate or inheritance
tax paid to another state that is attributable to the Minnesota situs property
held in the pass-through entity; or
(2) the amount of tax paid under this
section attributable to the Minnesota situs property held in the pass-through
entity.
(b) The amount of tax attributable to
the Minnesota situs property held in the pass-through entity must be determined
by the increase in the estate or inheritance tax that results from including
the market value of the property in the estate or treating the value as a
taxable inheritance to the recipient of the property.
EFFECTIVE
DATE. This section is
effective for decedents dying after December 31, 2012.
Sec. 7. Minnesota Statutes 2012, section 291.03, subdivision 8, is amended to read:
Subd. 8. Definitions. (a) For purposes of this section, the following terms have the meanings given in this subdivision.
(b) "Family member" means a family member as defined in section 2032A(e)(2) of the Internal Revenue Code, or a trust whose present beneficiaries are all family members as defined in section 2032A(e)(2) of the Internal Revenue Code.
(c) "Qualified heir" means a
family member who acquired qualified property from upon the death of
the decedent and satisfies the requirement under subdivision 9, clause (6)
(7), or subdivision 10, clause (4) (5), for the property.
(d) "Qualified property" means qualified small business property under subdivision 9 and qualified farm property under subdivision 10.
EFFECTIVE
DATE. This section is
effective retroactively for estates of decedents dying after June 30, 2011.
Sec. 8. Minnesota Statutes 2012, section 291.03, subdivision 9, is amended to read:
Subd. 9. Qualified small business property. Property satisfying all of the following requirements is qualified small business property:
(1) The value of the property was included in the federal adjusted taxable estate.
(2) The property consists of the assets of
a trade or business or shares of stock or other ownership interests in a
corporation or other entity engaged in a trade or business. The decedent or the decedent's spouse must
have materially participated in the trade or business within the meaning of
section 469 of the Internal Revenue Code during the taxable year that ended
before the date of the decedent's death.
Shares of stock in a corporation or an ownership interest in another
type of entity do not qualify under this subdivision if the shares or ownership
interests are traded on a public stock exchange at any time during the
three-year period ending on the decedent's date of death. For purposes of this subdivision, an
ownership interest includes the interest the decedent is deemed to own under
sections 2036, 2037, and 2038 of the Internal Revenue Code.
(3) During the taxable year that ended
before the decedent's death, the trade or business must not have been a passive
activity within the meaning of section 469(c) of the Internal Revenue Code, and
the decedent or the decedent's spouse must have materially participated in the
trade or business within the meaning of section 469(h) of the Internal Revenue
Code, excluding section 469(h)(3) of the Internal Revenue Code and any other
provision provided by United States Treasury Department regulation that
substitutes material participation in prior taxable years for material
participation in the taxable year that ended before the decedent's death.
(4) The gross annual sales of the trade or business were $10,000,000 or less for the last taxable year that ended before the date of the death of the decedent.
(4) (5) The property does
not consist of cash or, cash equivalents, publicly traded
securities, or assets not used in the operation of the trade or business. For property consisting of shares of stock or
other ownership interests in an entity, the amount value of cash or,
cash equivalents, publicly traded securities, or assets not used in the
operation of the trade or business held by the corporation or other entity
must be deducted from the value of the property qualifying under this subdivision in proportion to the decedent's share
of ownership of the entity on the date of death.
(5) (6) The decedent
continuously owned the property, including property the decedent is deemed
to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for
the three-year period ending on the date of death of the decedent. In the case of a sole proprietor, if the
property replaced similar property within the three-year period, the
replacement property will be treated as having been owned for the three-year
period ending on the date of death of the decedent.
(6) A family member continuously uses
the property in the operation of the trade or business for three years
following the date of death of the decedent.
(7) For three years following the date
of death of the decedent, the trade or business is not a passive activity
within the meaning of section 469(c) of the Internal Revenue Code, and a family
member materially participates in the operation of the trade or business within
the meaning of section 469(h) of the Internal Revenue Code, excluding section
469(h)(3) of the Internal Revenue Code and any other provision provided by
United States Treasury Department regulation that substitutes material
participation in prior taxable years for material participation in the three
years following the date of death of the decedent.
(8) The estate and the qualified heir elect to treat the property as qualified small business property and agree, in the form prescribed by the commissioner, to pay the recapture tax under subdivision 11, if applicable.
EFFECTIVE
DATE. This section is effective
retroactively for estates of decedents dying after June 30, 2011.
Sec. 9. Minnesota Statutes 2012, section 291.03, subdivision 10, is amended to read:
Subd. 10. Qualified farm property. Property satisfying all of the following requirements is qualified farm property:
(1) The value of the property was included in the federal adjusted taxable estate.
(2) The property consists of a farm
meeting the requirements of agricultural land and is owned by a person
or entity that is either not subject to or is in compliance with section
500.24, and was classified for property tax purposes as the homestead of the
decedent or the decedent's spouse or both under section 273.124, and as class
2a property under section 273.13, subdivision 23.
(3) For property taxes payable in the
taxable year of the decedent's death, the property is classified as class 2a
property under section 273.13, subdivision 23, and is classified as
agricultural homestead, agricultural relative homestead, or special
agricultural homestead under section 273.124.
(4) The decedent continuously owned the property, including property the decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for the three-year period ending on the date of death of the decedent either by ownership of the agricultural land or pursuant to holding an interest in an entity that is not subject to or is in compliance with section 500.24.
(4) A family member continuously uses
the property in the operation of the trade or business (5) The property
is classified for property tax purposes as class 2a property under section
273.13, subdivision 23, for three years following the date of death of the
decedent.
(5) (6) The estate and the
qualified heir elect to treat the property as qualified farm property and
agree, in a form prescribed by the commissioner, to pay the recapture tax under
subdivision 11, if applicable.
EFFECTIVE
DATE. This section is
effective retroactively for estates of decedents dying after June 30, 2011.
Sec. 10. Minnesota Statutes 2012, section 291.03, subdivision 11, is amended to read:
Subd. 11. Recapture
tax. (a) If, within three years
after the decedent's death and before the death of the qualified heir, the
qualified heir disposes of any interest in the qualified property, other than
by a disposition to a family member, or a family member ceases to use the qualified
property which was acquired or passed from the decedent satisfy the
requirement under subdivision 9, clause (7); or 10, clause (5), an
additional estate tax is imposed on the property. In the case of a sole proprietor, if the
qualified heir replaces qualified small business property excluded under
subdivision 9 with similar property, then the qualified heir will not be
treated as having disposed of an interest in the qualified property.
(b) The amount of the additional tax equals the amount of the exclusion claimed by the estate under subdivision 8, paragraph (d), multiplied by 16 percent.
(c) The additional tax under this subdivision is due on the day which is six months after the date of the disposition or cessation in paragraph (a).
EFFECTIVE
DATE. This section is
effective retroactively for estates of decedents dying after June 30, 2011.
Sec. 11. [292.16]
DEFINITIONS.
(a) For purposes of this chapter, the
following definitions apply.
(b) The definitions of terms defined in
section 291.005 apply.
(c) "Resident" has the
meaning given in section 290.01, subdivision 7, paragraph (a).
(d) "Taxable gifts" means:
(1) the transfers by gift which are
included in taxable gifts for federal gift tax purposes under the following
sections of the Internal Revenue Code:
(i) section 2503;
(ii) sections 2511 to 2514; and
(iii) sections 2516 to 2519; less
(2) the deductions allowed in sections
2522 to 2524 of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective for taxable gifts made after June 30, 2013.
Sec. 12. [292.17]
GIFT TAX.
Subdivision 1. Imposition. (a) A tax is imposed on the transfer
of property by gift by any individual resident or nonresident in an amount
equal to ten percent of the amount of the taxable gift.
(b) The donor is liable for payment of
the tax. If the gift tax is not paid
when due, the donee of any gift is personally liable for the tax to the extent
of the value of the gift.
Subd. 2. Lifetime
credit. A credit is allowed
against the tax imposed under this section equal to $100,000. This credit applies to the cumulative amount
of taxable gifts made by the donor during the donor's lifetime.
Subd. 3. Out-of-state
gifts. Taxable gifts exclude
the transfer of:
(1) real property located outside of this
state;
(2) tangible personal property that was
normally kept at a location outside of the state on the date the gift was
executed; and
(3) intangible personal property made
by an individual who is not a resident at the time the gift was executed.
EFFECTIVE
DATE. This section is
effective for taxable gifts made after June 30, 2013.
Sec. 13. [292.18]
RETURNS.
(a) Any individual who makes a taxable
gift during the taxable year shall file a gift tax return in the form and
manner prescribed by the commissioner.
(b) If the donor dies before filing the
return, the executor of the donor's will or the administrator of the donor's
estate shall file the return. If the
donor becomes legally incompetent before filing the return, the guardian or
conservator shall file the return.
(c) The return must include:
(1) each gift made during the calendar
year which is to be included in computing the taxable gifts;
(2) the deductions claimed and
allowable under section 292.16, paragraph (d), clause (2);
(3) a description of the gift, and the
donee's name, address, and Social Security number;
(4) the fair market value of gifts not
made in money; and
(5) any other information the
commissioner requires to administer the gift tax.
EFFECTIVE
DATE. This section is
effective for taxable gifts made after June 30, 2013.
Sec. 14. [292.19]
FILING REQUIREMENTS.
Gift tax returns must be filed by the
April 15 following the close of the calendar year, except if a gift is made
during the calendar year in which the donor dies, the return for the donor must
be filed by the last date, including extensions, for filing the gift tax return
for federal gift tax purposes for the donor.
EFFECTIVE
DATE. This section is
effective for taxable gifts made after June 30, 2013.
Sec. 15. [292.20]
APPRAISAL OF PROPERTY; DECLARATION BY DONOR.
The commissioner may require the donor
or the donee to show the property subject to the tax under section 292.17 to
the commissioner upon demand and may employ a suitable person to appraise the
property. The donor shall submit a
declaration, in a form prescribed by the commissioner and including any
certification required by the commissioner, that the property shown by the
donor on the gift tax return includes all of the property transferred by gift
for the calendar year and not deductible under section 292.16, paragraph (d),
clause (2).
EFFECTIVE
DATE. This section is
effective for taxable gifts made after June 30, 2013.
Sec. 16. [292.21]
ADMINISTRATIVE PROVISIONS.
Subdivision 1. Payment
of tax; penalty for late payment. The
tax imposed under section 292.17 is due and payable to the commissioner by the
April 15 following the close of the calendar year during which the gift was
made. The return required under section
292.19 must be included with the payment.
If a taxable gift is made during the calendar year in which the donor
dies, the due date is the last date, including extensions, for filing the gift
tax return for federal gift tax purposes for the donor. If any person fails to pay the tax due within
the time specified under this section, a penalty applies equal to ten percent
of the amount due and unpaid or $100, whichever is greater. The unpaid tax and penalty bear interest at
the rate under section 270C.40 from the due date of the return.
Subd. 2. Extensions. The commissioner may, for good cause,
extend the time for filing a gift tax return, if a written request is filed
with a tentative return accompanied by a payment of the tax, which is estimated
in the tentative return, on or before the last day for filing the return. Any person to whom an extension is granted
must pay, in addition to the tax, interest at the rate under section 270C.40
from the date on which the tax would have been due without the extension.
Subd. 3. Changes
in federal gift tax. If the
amount of a taxpayer's taxable gifts for federal gift tax purposes, as reported
on the taxpayer's federal gift tax return for any calendar year, is changed or
corrected by the Internal Revenue Service or other officer of the United States
or other competent authority, the taxpayer shall report the change or
correction in federal taxable gifts within 180 days after the final
determination of the change or correction, and concede the accuracy of the
determination or provide a letter detailing how the federal determination is
incorrect or does not change the Minnesota gift tax. Any taxpayer filing an amended federal gift
tax return shall also file within 180 days an amended return under this chapter
and shall include any information the commissioner requires. The time for filing the report or amended
return may be extended by the commissioner upon due cause shown. Notwithstanding any limitation of time in
this chapter, if, upon examination, the commissioner finds that the taxpayer is
liable for the payment of an additional tax, the commissioner shall, within a
reasonable time from the receipt of the report or amended return, notify the
taxpayer of the amount of additional tax, together with interest computed at
the rate under section 270C.40 from the date when the original tax was due and
payable. Within 30 days of the mailing
of the notice, the taxpayer shall pay the commissioner the amount of the
additional tax and interest. If, upon
examination of the report or amended return and related information, the
commissioner finds that the taxpayer has overpaid the tax due the state, the
commissioner shall refund the overpayment to the taxpayer.
Subd. 4. Application
of federal rules. In
administering the tax under this chapter, the commissioner shall apply the
provisions of sections 2701 to 2704 of the Internal Revenue Code. The words "secretary or his
delegate," as used in those sections of the Internal Revenue Code, mean
the commissioner.
EFFECTIVE
DATE. This section is
effective for taxable gifts made after June 30, 2013.
ARTICLE 8
SALES AND USE TAXES; LOCAL SALES TAXES
Section 1.
[116J.3738] QUALIFIED
EXPANSIONS OF GREATER MINNESOTA BUSINESSES.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given unless the context clearly indicates
otherwise.
(b) "Agricultural processing facility" means one or more facilities or operations that transform, package, sort, or grade livestock or livestock products, agricultural commodities, or plants or plant products into goods that are used for intermediate or final consumption including goods for nonfood use, and surrounding property.
(c) "Business" means
an individual, corporation, partnership, limited liability company,
association, or any other entity engaged in operating a trade or business
located in greater Minnesota.
(d) "City" means a statutory
or home rule charter city.
(e) "Greater Minnesota" means
the area of the state that excludes the metropolitan area, as defined in section
473.121, subdivision 2.
(f) "Qualified business"
means a business that satisfies the requirements of subdivision 2, has been
certified under subdivision 3, and has not been terminated under subdivision 5.
Subd. 2. Qualified
business. (a) A business is a
qualified business if it satisfies the requirement of this paragraph and is not
disqualified under the provisions of paragraph (b). To qualify, the business must:
(1) have operated its trade or business
in a city or cities in greater Minnesota for at least one year before applying
under subdivision 3;
(2) pay or agree to pay in the future
each employee compensation, including benefits not mandated by law, that on an
annualized basis equal at least 120 percent of the federal poverty level for a family
of four;
(3) plan and agree to expand its
employment in one or more cities in greater Minnesota by the minimum number of
employees required under subdivision 3, paragraph (c); and
(4) received certification from the
commissioner under subdivision 3 that it is a qualified business.
(b) A business is not a qualified
business if it is either:
(1) primarily engaged in making retail
sales to purchasers who are physically present at the business's location or
locations in greater Minnesota; or
(2) a public utility, as defined in
section 336B.01.
(c) The requirements in paragraph (a)
that the business' operations and expansion be located in a city do not apply
to an agricultural processing facility.
Subd. 3. Certification
of qualified business. (a) A
business may apply to the commissioner for certification as a qualified
business under this section. The
commissioner shall specify the form of the application, the manner and times
for applying, and the information required to be included in the application. The commissioner may impose an application
fee in an amount sufficient to defray the commissioner's cost of processing
certifications. A business must file a
copy of its application with the chief clerical officer of the city at the same
time it applies to the commissioner. For
an agricultural processing facility located outside the boundaries of a city,
the business must file a copy of the application with the county auditor.
(b) The commissioner shall certify each
business as a qualified business that:
(1) satisfies the requirements of
subdivision 2;
(2) the commissioner determines would not expand its operations in greater Minnesota without the tax incentives available under subdivision 4; and
(3) enters a business subsidy
agreement with the commissioner that pledges to satisfy the minimum expansion
requirements of paragraph (c) within three years or less following execution of
the agreement.
The commissioner must act on an
application within 60 days after its filing.
Failure by the commissioner to take action within the 60-day period is
deemed approval of the application.
(c) The following minimum expansion
requirements apply, based on the number of employees of the business at
locations in greater Minnesota:
(1) a business that employees 50 or
fewer full-time equivalent employees in greater Minnesota when the agreement is
executed must increase its employment by five or more full-time equivalent
employees;
(2) a business that employees more than
50 but fewer than 200 full-time equivalent employees in greater Minnesota when
the agreement is executed must increase the number of its full-time equivalent
employees in greater Minnesota by at least ten percent; or
(3) a business that employees 200 or
more full-time equivalent employees in greater Minnesota when the agreement is
executed must increase its employment by at least 21 full-time equivalent
employees.
(d) The city, or a county for an
agricultural processing facility located outside the boundaries of a city, in
which the business proposes to expand its operations may file comments
supporting or opposing the application with the commissioner. The comments must be filed within 30 days
after receipt by the city of the application and may include a notice of any
contribution the city or county intends to make to encourage or support the
business expansion, such as the use of tax increment financing, property tax
abatement, additional city or county services, or other financial assistance.
(e) Certification of a qualified
business is effective for the 12-year period beginning on the first day of the
calendar month immediately following execution of the business subsidy
agreement.
Subd. 4. Available
tax incentives. A qualified
business is entitled to a sales tax exemption, as provided in section 297A.68,
subdivision 49, for purchases made during the period the business was certified
as a qualified business under this section.
Subd. 5. Termination
of status as a qualified business. (a)
The commissioner shall put in place a system for monitoring and ensuring that
each certified business meets within three years or less the minimum expansion
requirement in its business subsidy agreement and continues to satisfy those
requirements for the rest of the duration of the certification under subdivision
3. This system must include regular
reporting by the business to the commissioner of its baseline and current
employment levels and any other information the commissioner determines may be
useful to ensure compliance and for legislative evaluation of the effectiveness
of the tax incentives.
(b) A business ceases to be a qualified
business and to qualify for the sales tax exemption under section 297A.68,
subdivision 49, under this subdivision upon the earlier of the following dates:
(1) the end of the duration of its
designation under subdivision 3, paragraph (e), effective as provided under
this subdivision or other provision of law for the tax incentive; or
(2) the date the commissioner finds
that the business has breached its business subsidy agreement and failed to
satisfy the minimum expansion required by subdivision 3 and its agreement.
(c) A business may contest the
commissioner's finding that it breached its business subsidy agreement under
paragraph (b), clause (2), under the contested case procedures in the
Administrative Procedure Act, chapter 14.
(d) The commissioner, after
consulting with the commissioner of revenue, may waive a breach of the business
subsidy agreement and permit continued receipt of tax incentives, if the
commissioner determines that termination of the tax incentives is not in the
best interest of the state or the local government units and the business'
breach of the agreement is a result of circumstances beyond its control
including, but not limited to:
(1) a natural disaster;
(2) unforeseen industry trends;
(3) a decline in economic activity in
the overall or greater Minnesota economy; or
(4) loss of a major supplier or
customer of the business.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2012, section 297A.61, subdivision 3, is amended to read:
Subd. 3. Sale
and purchase. (a) "Sale"
and "purchase" include, but are not limited to, each of the
transactions listed in this subdivision.
In applying the provisions of this chapter, the terms "tangible
personal property" and "retail sale" include the taxable
services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and
the provision of these taxable services, unless specifically provided otherwise. Services performed by an employee for an
employer are not taxable. Services
performed by a partnership or association for another partnership or
association are not taxable if one of the entities owns or controls more than
80 percent of the voting power of the equity interest in the other entity. Services performed between members of an
affiliated group of corporations are not taxable. For purposes of the preceding sentence,
"affiliated group of corporations" means those entities that would be
classified as members of an affiliated group as defined under United States
Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
(b) Sale and purchase include:
(1) any transfer of title or possession, or both, of tangible personal property, whether absolutely or conditionally, for a consideration in money or by exchange or barter; and
(2) the leasing of or the granting of a license to use or consume, for a consideration in money or by exchange or barter, tangible personal property, other than a manufactured home used for residential purposes for a continuous period of 30 days or more.
(c) Sale and purchase include the production, fabrication, printing, or processing of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the production, fabrication, printing, or processing.
(d) Sale and purchase include the preparing for a consideration of food. Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:
(1) prepared food sold by the retailer;
(2) soft drinks;
(3) candy;
(4) dietary supplements; and
(5) all food sold through vending machines.
(e) A sale and a purchase includes the furnishing for a consideration of electricity, gas, water, or steam for use or consumption within this state.
(f) A sale and a purchase includes
the transfer for a consideration of prewritten computer software whether delivered electronically, by load and leave, or otherwise.
(g) A sale and a purchase includes the furnishing for a consideration of the following services:
(1) the privilege of admission to places of amusement, recreational areas, or athletic events, and the making available of amusement devices, tanning facilities, reducing salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
(2) lodging and related services by a hotel, rooming house, resort, campground, motel, or trailer camp, including furnishing the guest of the facility with access to telecommunication services, and the granting of any similar license to use real property in a specific facility, other than the renting or leasing of it for a continuous period of 30 days or more under an enforceable written agreement that may not be terminated without prior notice and including accommodations intermediary services provided in connection with other services provided under this clause;
(3) nonresidential parking services, whether on a contractual, hourly, or other periodic basis, except for parking at a meter;
(4) the granting of membership in a club, association, or other organization if:
(i) the club, association, or other organization makes available for the use of its members sports and athletic facilities, without regard to whether a separate charge is assessed for use of the facilities; and
(ii) use of the sports and athletic facility is not made available to the general public on the same basis as it is made available to members.
Granting of membership means both onetime initiation fees and periodic membership dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming pools; and other similar athletic or sports facilities;
(5) delivery of aggregate materials by a
third party, excluding delivery of aggregate material used in road
construction; and delivery of concrete block by a third party if the delivery
would be subject to the sales tax if provided by the seller of the concrete
block. For purposes of this clause,
"road construction" means construction of:
(i) public roads;
(ii) cartways; and
(iii) private roads in townships located outside of the seven-county metropolitan area up to the point of the emergency response location sign; and
(6) services as provided in this clause:
(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not include services provided by coin operated facilities operated by the customer;
(ii) motor vehicle washing, waxing, and cleaning services, including services provided by coin operated facilities operated by the customer, and rustproofing, undercoating, and towing of motor vehicles;
(iii) building and residential cleaning, maintenance, and disinfecting services and pest control and exterminating services;
(iv) detective, security, burglar, fire alarm, and armored car services; but not including services performed within the jurisdiction they serve by off-duty licensed peace officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit organization or any organization at the direction of a county for monitoring and electronic surveillance of persons placed on in-home detention pursuant to court order or under the direction of the Minnesota Department of Corrections;
(v) pet grooming services;
(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility lines. Services performed under a construction contract for the installation of shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
(vii) massages, except when provided by a licensed health care facility or professional or upon written referral from a licensed health care facility or professional for treatment of illness, injury, or disease; and
(viii) the furnishing of lodging, board, and care services for animals in kennels and other similar arrangements, but excluding veterinary and horse boarding services.
In applying the provisions of this
chapter, the terms "tangible personal property" and "retail sale"
include taxable services listed in clause (6), items (i) to (vi) and (viii), and
the provision of these taxable services, unless specifically provided otherwise. Services performed by an employee for an
employer are not taxable. Services
performed by a partnership or association for another partnership or
association are not taxable if one of the entities owns or controls more than
80 percent of the voting power of the equity interest in the other entity. Services performed between members of an affiliated
group of corporations are not taxable. For
purposes of the preceding sentence, "affiliated group of
corporations" means those entities that would be classified as members of
an affiliated group as defined under United States Code, title 26, section
1504, disregarding the exclusions in section 1504(b).
For purposes of clause (5), "road
construction" means construction of (1) public roads, (2) cartways, and
(3) private roads in townships located outside of the seven-county metropolitan
area up to the point of the emergency response location sign.
(h) A sale and a purchase includes the furnishing for a consideration of tangible personal property or taxable services by the United States or any of its agencies or instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.
(i) A sale and a purchase includes the
furnishing for a consideration of telecommunications services, ancillary
services associated with telecommunication services, cable and pay
television services, and direct satellite services. Telecommunication services include, but are
not limited to, the following services, as defined in section 297A.669: air-to-ground radiotelephone service, mobile
telecommunication service, postpaid calling service, prepaid calling service,
prepaid wireless calling service, and private communication services. The services in this paragraph are taxed to
the extent allowed under federal law.
(j) A sale and a purchase includes the furnishing for a consideration of installation if the installation charges would be subject to the sales tax if the installation were provided by the seller of the item being installed.
(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02, subdivision 11.
(l) A sale and a purchase includes
furnishing for a consideration of specified digital products or other digital
products or granting the right for a consideration to use specified digital
products or other digital products on a temporary or permanent basis and
regardless of whether the purchaser is required to make continued payments for
such right. Wherever the term
"tangible personal property" is used in this chapter, other than in
subdivisions 10 and 38, the provisions also apply to specified digital
products, or other digital products, unless specifically provided otherwise or
the context indicates otherwise.
(m) A sale and purchase includes the
furnishing for consideration of the following services:
(1) repairing and maintaining
electronic and precision equipment, which service can be deducted as a business
expense under the Internal Revenue Code.
This includes, but is not limited to, repair or maintenance of
electronic devices, computers and computer peripherals, monitors, computer
terminals, storage devices, and CD-ROM drives; other office equipment such as
photocopying machines, printers, and facsimile machines; televisions, stereos,
sound systems, video or digital recorders and players; two-way radios and other
communications equipment; radar and sonar equipment, scientific instruments,
microscopes, and medical equipment;
(2) repairing and maintaining
commercial and industrial machinery and equipment. For purposes of this subdivision, the
following items are not commercial or industrial machinery and equipment: (i) motor vehicles; (ii) furniture and
fixtures; (iii) ships; (iv) railroad stock; and (v) aircraft; and
(3) warehousing or storage services for
tangible personal property, excluding:
(i) agricultural products;
(ii) refrigerated storage;
(iii) electronic data; and
(iv) self-storage services and storage
of motor vehicles, recreational vehicles, and boats, not eligible to be
deducted as a business expense under the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013, except that
paragraph (m), clause (3), is effective for sales and purchases made after
March 31, 2014.
Sec. 3. Minnesota Statutes 2012, section 297A.61, subdivision 4, is amended to read:
Subd. 4. Retail
sale. (a) A "retail sale"
means:
(1) any sale, lease, or rental of
tangible personal property for any purpose, other than resale, sublease, or
subrent of items by the purchaser in the normal course of business as defined
in subdivision 21; and
(2) any sale of a service enumerated in subdivision 3, for any purpose other than resale by the purchaser in the normal course of business as defined in subdivision 21.
(b) A sale of property used by the owner only by leasing it to others or by holding it in an effort to lease it, and put to no use by the owner other than resale after the lease or effort to lease, is a sale of property for resale.
(c) A sale of master computer software that is purchased and used to make copies for sale or lease is a sale of property for resale.
(d) A sale of building materials, supplies, and equipment to owners, contractors, subcontractors, or builders for the erection of buildings or the alteration, repair, or improvement of real property is a retail sale in whatever quantity sold, whether the sale is for purposes of resale in the form of real property or otherwise.
(e) A sale of carpeting, linoleum, or similar floor covering to a person who provides for installation of the floor covering is a retail sale and not a sale for resale since a sale of floor covering which includes installation is a contract for the improvement of real property.
(f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides for installation of the items is a retail sale and not a sale for resale since a sale of shrubbery, plants, sod, trees, and similar items that includes installation is a contract for the improvement of real property.
(g) A sale of tangible personal property that is awarded as prizes is a retail sale and is not considered a sale of property for resale.
(h) A sale of tangible personal property utilized or employed in the furnishing or providing of services under subdivision 3, paragraph (g), clause (1), including, but not limited to, property given as promotional items, is a retail sale and is not considered a sale of property for resale.
(i) A sale of tangible personal property used in conducting lawful gambling under chapter 349 or the State Lottery under chapter 349A, including, but not limited to, property given as promotional items, is a retail sale and is not considered a sale of property for resale.
(j) a sale of machines, equipment, or devices that are used to furnish, provide, or dispense goods or services, including, but not limited to, coin-operated devices, is a retail sale and is not considered a sale of property for resale.
(k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease payment becomes due under the terms of the agreement or the trade practices of the lessor or (2) in the case of a lease of a motor vehicle, as defined in section 297B.01, subdivision 11, but excluding vehicles with a manufacturer's gross vehicle weight rating greater than 10,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is executed.
(l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of title or possession of the tangible personal property.
(m) A sale of a bundled transaction in which one or more of the products included in the bundle is a taxable product is a retail sale, except that if one of the products is a telecommunication service, ancillary service, Internet access, or audio or video programming service, and the seller has maintained books and records identifying through reasonable and verifiable standards the portions of the price that are attributable to the distinct and separately identifiable products, then the products are not considered part of a bundled transaction. For purposes of this paragraph:
(1) the books and records maintained by the seller must be maintained in the regular course of business, and do not include books and records created and maintained by the seller primarily for tax purposes;
(2) books and records maintained in the regular course of business include, but are not limited to, financial statements, general ledgers, invoicing and billing systems and reports, and reports for regulatory tariffs and other regulatory matters; and
(3) books and records are maintained primarily for tax purposes when the books and records identify taxable and nontaxable portions of the price, but the seller maintains other books and records that identify different prices attributable to the distinct products included in the same bundled transaction.
(n) A sale of motor vehicle repair paint
and materials by a motor vehicle repair or body shop business is a retail sale
and the sales tax is imposed on the gross receipts from the retail sale of the
paint and materials. The motor vehicle
repair or body shop that purchases motor vehicle repair paint and motor vehicle
repair materials for resale must either:
(1) separately state each item of paint
and each item of materials, and the sales price of each, on the invoice to the
purchaser; or
(2) in order to calculate the sales price
of the paint and materials, use a method which estimates the amount and
monetary value of the paint and materials used in the repair of the motor
vehicle by multiplying the number of labor hours by a rate of consideration for
the paint and materials used in the repair of the motor vehicle following
industry standard practices that fairly calculate the gross receipts from the
retail sale of the motor vehicle repair paint and motor vehicle repair
materials. An industry standard practice
fairly calculates the gross receipts if the sales price of the paint and
materials used or consumed in the repair of a motor vehicle equals or exceeds
the purchase price paid by the motor vehicle repair or body shop business. Under this clause, the invoice must either
separately state the "paint and materials" as a single taxable item,
or separately state "paint" as a taxable item and
"materials" as a taxable item.
This clause does not apply to wholesale transactions at an auto auction
facility.
(o) A sale of specified digital products
or other digital products to an end user with or without rights of permanent
use and regardless of whether rights of use are conditioned upon payment by the
purchaser is a retail sale. When a
digital code has been purchased that relates to specified digital products or
other digital products, the subsequent receipt of or access to the related
specified digital products or other digital products is not a retail sale.
(p) A payment made to a cooperative
electric association or public utility as a contribution in aid of construction
is a contract for improvement to real property and is not a retail sale.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 4. Minnesota Statutes 2012, section 297A.61, subdivision 10, is amended to read:
Subd. 10. Tangible personal property. (a) "Tangible personal property" means personal property that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses. "Tangible personal property" includes, but is not limited to, electricity, water, gas, steam, and prewritten computer software.
(b) Tangible personal property does not include:
(1) large ponderous machinery and equipment used in a business or production activity which at common law would be considered to be real property;
(2) property which is subject to an ad valorem property tax;
(3) property described in section 272.02,
subdivision 9, clauses (a) to (d); and
(4) property described in
section 272.03, subdivision 2, clauses (3) and (5).; and
(5) specified digital products, or
other digital products, transferred electronically.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 5. Minnesota Statutes 2012, section 297A.61, subdivision 25, is amended to read:
Subd. 25. Cable
Pay television service. "Cable
Pay television service" means the transmission of video, audio, or
other programming service to purchasers, and the subscriber interaction, if
any, required for the selection or use of the programming service, regardless
of whether the programming is transmitted over facilities owned or operated by
the cable service provider or over facilities owned or operated by one or more
dealers of communications services. The
term includes point-to-multipoint distribution direct to home satellite
services by which programming is transmitted or broadcast by microwave or other
equipment directly to the subscriber's premises, or any similar or
comparable method of service. The
term includes basic, extended, premium, all programming services,
including subscriptions, digital video recorders, pay-per-view, digital,
and music services.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 6. Minnesota Statutes 2012, section 297A.61, subdivision 38, is amended to read:
Subd. 38. Bundled transaction. (a) "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. As used in this subdivision, "product" includes tangible personal property, services, intangibles, and digital goods, including specified digital products or other digital products, but does not include real property or services to real property. A bundled transaction does not include the sale of any products in which the sales price varies, or is negotiable, based on the selection by the purchaser of the products included in the transaction.
(b) For purposes of this subdivision, "distinct and identifiable" products does not include:
(1) packaging and other materials, such as containers, boxes, sacks, bags, and bottles, wrapping, labels, tags, and instruction guides, that accompany the retail sale of the products and are incidental or immaterial to the retail sale. Examples of packaging that are incidental or immaterial include grocery sacks, shoe boxes, dry cleaning garment bags, and express delivery envelopes and boxes;
(2) a promotional product provided free of charge with the required purchase of another product. A promotional product is provided free of charge if the sales price of another product, which is required to be purchased in order to receive the promotional product, does not vary depending on the inclusion of the promotional product; and
(3) items included in the definition of sales price.
(c) For purposes of this subdivision, the term "one nonitemized price" does not include a price that is separately identified by product on binding sales or other supporting sales-related documentation made available to the customer in paper or electronic form including but not limited to an invoice, bill of sale, receipt, contract, service agreement, lease agreement, periodic notice of rates and services, rate card, or price list.
(d) A transaction that otherwise meets the definition of a bundled transaction is not a bundled transaction if it is:
(1) the retail sale of tangible personal property and a service and the tangible personal property is essential to the use of the service, and is provided exclusively in connection with the service, and the true object of the transaction is the service;
(2) the retail sale of services if one service is provided that is essential to the use or receipt of a second service and the first service is provided exclusively in connection with the second service and the true object of the transaction is the second service;
(3) a transaction that includes taxable products and nontaxable products and the purchase price or sales price of the taxable products is de minimis; or
(4) the retail sale of exempt tangible personal property and taxable tangible personal property if:
(i) the transaction includes food and food ingredients, drugs, durable medical equipment, mobility enhancing equipment, over-the-counter drugs, prosthetic devices, or medical supplies; and
(ii) the seller's purchase price or sales price of the taxable tangible personal property is 50 percent or less of the total purchase price or sales price of the bundled tangible personal property. Sellers must not use a combination of the purchase price and sales price of the tangible personal property when making the 50 percent determination for a transaction.
(e) For purposes of this subdivision, "purchase price" means the measure subject to use tax on purchases made by the seller, and "de minimis" means that the seller's purchase price or sales price of the taxable products is ten percent or less of the total purchase price or sales price of the bundled products. Sellers shall use either the purchase price or the sales price of the products to determine if the taxable products are de minimis. Sellers must not use a combination of the purchase price and sales price of the products to determine if the taxable products are de minimis. Sellers shall use the full term of a service contract to determine if the taxable products are de minimis.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 7. Minnesota Statutes 2012, section 297A.61, subdivision 45, is amended to read:
Subd. 45. Ring
tone. "Ring tone" means a
digitized sound file that is downloaded onto a device and that may be used to
alert the customer of a telecommunication service with respect to a
communication. A ring tone does not
include ring back tones or other digital audio files that are not stored on the
purchaser's communication device.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 8. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision to read:
Subd. 49. Motor vehicle repair paint and motor vehicle repair materials. "Motor vehicle repair paint" means a substance composed of solid matter suspended in a liquid medium and applied as a protective or decorative coating to the surface of a motor vehicle in order to restore the motor vehicle to its original condition, and includes primer, body paint, clear coat, and paint thinner used to paint motor vehicles, as defined in section 297B.01.
"Motor vehicle repair materials"
means items, other than motor vehicle repair paint or motor vehicle parts, that
become a part of a repaired motor vehicle or are consumed in repairing the
motor vehicle at retail, and include abrasives, battery water, body filler or
putty, bolts and nuts, brake fluid, buffing pads, chamois, cleaning compounds,
degreasing compounds, glaze, grease, grinding discs, hydraulic jack oil,
lubricants, masking tape, oxygen and acetylene, polishes, rags, razor blades,
sandpaper, sanding discs, scuff pads, sealer, solder, solvents, striping tape,
tack cloth, thinner, waxes, and welding rods.
Motor vehicle repair materials do not include items that are not used
directly on the motor vehicle, such as floor dry that is used to clean the
shop, or cleaning compounds and rags that are used to clean tools, equipment,
or the shop and are not used to clean the motor vehicle.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 9. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision to read:
Subd. 50. Digital
audio works. "Digital
audio works" means works that result from a fixation of a series of
musical, spoken, or other sounds, that are transferred electronically. Digital audio works includes such items as
the following which may either be prerecorded or live: songs, music, readings of books or other
written materials, speeches, ring tones, or other sound recordings. Digital audio works does not include audio
greeting cards sent by electronic mail. Unless
the context provides otherwise, in this chapter digital audio works includes
the digital code, or a subscription to or access to a digital code, for
receiving, accessing, or otherwise obtaining digital audio works.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 10. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision to read:
Subd. 51. Digital
audiovisual works. "Digital
audiovisual works" means a series of related images which, when shown in
succession, impart an impression of motion, together with accompanying sounds,
if any, that are transferred electronically.
Digital audiovisual works includes such items as motion pictures,
movies, musical videos, news and entertainment, and live events. Digital audiovisual works does not include
video greeting cards sent by electronic mail.
Unless the context provides otherwise, in this chapter digital
audiovisual works includes the digital code, or a subscription to or access to
a digital code, for receiving, accessing, or otherwise obtaining digital
audiovisual works.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 11. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision to read:
Subd. 52. Digital books. "Digital books" means any
literary works, other than digital audiovisual works or digital audio works,
expressed in words, numbers, or other verbal or numerical symbols or indicia so
long as the product is generally recognized in the ordinary and usual sense as
a "book." It includes works of fiction and nonfiction and short
stories. It does not include
periodicals, magazines, newspapers, or other news or information products, chat
rooms, or weblogs. Unless the context
provides otherwise, in this chapter digital books includes the digital code, or
a subscription to or access to a digital code, for receiving, accessing, or
otherwise obtaining digital books.
EFFECTIVE
DATE. This section is effective
for sales and purchases made after June 30, 2013.
Sec. 12. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision to read:
Subd. 53. Digital
code. "Digital
code" means a code which provides a purchaser with a right to obtain one
or more specified digital products or other digital products. A digital code may be transferred
electronically, such as through electronic mail, or it may be transferred on a
tangible medium, such as on a plastic card, a piece of paper or invoice, or
imprinted on another product. A digital
code is not a code that represents a stored monetary value that is deducted
from a total as it is used by the purchaser, and it is not a code that
represents a redeemable card, gift card, or gift certificate that entitles the
holder to select a digital product of an indicated cash value. The end user of a digital code is any
purchaser except one who receives the contractual right to redistribute a
digital product which is the subject of the transaction.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 13. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision to read:
Subd. 54. Other digital products. "Other digital products"
means the following items when transferred electronically:
(1) greeting cards; and
(2) online video or electronic
games.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 14. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision to read:
Subd. 55. Specified
digital products. "Specified
digital products" means digital audio works, digital audiovisual works,
and digital books that are transferred electronically to a customer.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 15. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision to read:
Subd. 56. Transferred
electronically. "Transferred
electronically" means obtained by the purchaser by means other than
tangible storage media. For purposes of
this subdivision, it is not necessary that a copy of the product be physically
transferred to the purchaser. A product
will be considered to have been transferred electronically to a purchaser if
the purchaser has access to the product.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 16. Minnesota Statutes 2012, section 297A.61, is amended by adding a subdivision to read:
Subd. 58. Self-storage
service. "Self-storage
service" means a storage service that provides secure areas, such as
rooms, units, compartments or containers, whether accessible from outside or
from within a building, that are designated for the use of a purchaser, where
the purchaser retains the care custody and control of their property, including
self-storage units, mini-storage units, and areas by any other name to which
the purchaser retains either unlimited free access or free access within reasonable
business hours or upon reasonable notice to the service provider to add or
remove property, but does not mean the rental of an entire building, such as a
warehouse. Self-storage service does not
include general warehousing and storage services where the warehouse typically
handles, stores, and retrieves a purchaser's property using the warehouse's
staff and equipment, and does not allow the purchaser free access to the
storage space and does not include bailments.
EFFECTIVE
DATE. This section is effective
July 1, 2013.
Sec. 17. Minnesota Statutes 2012, section 297A.64, subdivision 1, is amended to read:
Subdivision 1. Tax
imposed. A tax is imposed on the
lease or rental in this state for not more than 28 days of a passenger
automobile as defined in section 168.002, subdivision 24, a van as defined in
section 168.002, subdivision 40, or a pickup truck as defined in section
168.002, subdivision 26. The rate of tax
is 6.2 9.2 percent of the sales price. The tax applies whether or not the vehicle is
licensed in the state.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 18. Minnesota Statutes 2012, section 297A.66, subdivision 3, is amended to read:
Subd. 3. Retailer
not maintaining place of business in this state. (a) To the extent allowed by the United
States Constitution and the laws of the United States in accordance
with the terms and conditions of federal remote seller law, a retailer
making retail sales from outside this state to a destination within this state
and not maintaining a place of business in this state shall collect sales and
use taxes and remit them to the commissioner under section 297A.77,.
(b) To the extent allowed by the United States Constitution and the laws of the United States, a retailer making retail sales from outside this state to a destination within this state and not maintaining a place of business in this state shall collect sales and use taxes and remit them to the commissioner under section 297A.77, if the retailer engages in the regular or systematic soliciting of sales from potential customers in this state by:
(1) distribution, by mail or otherwise, of catalogs, periodicals, advertising flyers, or other written solicitations of business to customers in this state;
(2) display of advertisements on billboards or other outdoor advertising in this state;
(3) advertisements in newspapers published in this state;
(4) advertisements in trade journals or other periodicals the circulation of which is primarily within this state;
(5) advertisements in a Minnesota edition of a national or regional publication or a limited regional edition in which this state is included as part of a broader regional or national publication which are not placed in other geographically defined editions of the same issue of the same publication;
(6) advertisements in regional or national publications in an edition which is not by its contents geographically targeted to Minnesota but which is sold over the counter in Minnesota or by subscription to Minnesota residents;
(7) advertisements broadcast on a radio or television station located in Minnesota; or
(8) any other solicitation by telegraphy, telephone, computer database, cable, optic, microwave, or other communication system.
This paragraph (a) must be construed without regard to the state from which distribution of the materials originated or in which they were prepared.
(b) The location within or without this state of independent vendors that provide products or services to the retailer in connection with its solicitation of customers within this state, including such products and services as creation of copy, printing, distribution, and recording, is not considered in determining whether the retailer is required to collect tax.
(c) A retailer not maintaining a place of business in this state is presumed, subject to rebuttal, to be engaged in regular solicitation within this state if it engages in any of the activities in paragraph (a) and:
(1) makes 100 or more retail sales from outside this state to destinations in this state during a period of 12 consecutive months; or
(2) makes ten or more retail sales totaling more than $100,000 from outside this state to destinations in this state during a period of 12 consecutive months.
EFFECTIVE
DATE. This section is
effective the day after final enactment.
Sec. 19. Minnesota Statutes 2012, section 297A.66, is amended by adding a subdivision to read:
Subd. 4a. Solicitor. (a) "Solicitor," for
purposes of subdivision 1, paragraph (a), means a person, whether an
independent contractor or other representative, who directly or indirectly
solicits business for the retailer.
(b) A retailer is presumed to
have a solicitor in this state if it enters into an agreement with a resident
under which the resident, for a commission or other substantially similar
consideration, directly or indirectly refers potential customers, whether by a
link on an Internet Web site, or otherwise, to the seller. This paragraph only applies if the total
gross receipts are at least $10,000 in the 12-month period ending on the last
day of the most recent calendar quarter before the calendar quarter in which
the sale is made. For purposes of this
paragraph, gross receipts means receipts from sales to customers located in the
state who were referred to the retailer by all residents with this type of
agreement with the retailer.
(c) The presumption under paragraph (b)
may be rebutted by proof that the resident with whom the seller has an
agreement did not engage in any solicitation in the state on behalf of the
retailer that would satisfy the nexus requirement of the United States
Constitution during the 12-month period in question. Nothing in this section shall be construed to
narrow the scope of the terms affiliate, agent, salesperson, canvasser, or
other representative for purposes of subdivision 1, paragraph (a).
(d) For purposes of this paragraph,
"resident" includes an individual who is a resident of this state, as
defined in section 290.01, or a business that owns tangible personal property
located in this state or has one or more employees providing services for the
business in this state.
(e) This subdivision does not apply to
chapter 290 and does not expand or contract the jurisdiction to tax a trade or
business under chapter 290.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 20. Minnesota Statutes 2012, section 297A.665, is amended to read:
297A.665
PRESUMPTION OF TAX; BURDEN OF PROOF.
(a) For the purpose of the proper administration of this chapter and to prevent evasion of the tax, until the contrary is established, it is presumed that:
(1) all gross receipts are subject to the tax; and
(2) all retail sales for delivery in Minnesota are for storage, use, or other consumption in Minnesota.
(b) The burden of proving that a sale is not a taxable retail sale is on the seller. However, a seller is relieved of liability if:
(1) the seller obtains a fully completed
exemption certificate or all the relevant information required by section
297A.72, subdivision 2, at the time of the sale or within 90 days after the
date of the sale; or
(2) if the seller has not obtained a fully completed exemption certificate or all the relevant information required by section 297A.72, subdivision 2, within the time provided in clause (1), within 120 days after a request for substantiation by the commissioner, the seller either:
(i) obtains in good faith a fully completed exemption certificate or all the relevant information required by section 297A.72, subdivision 2, from the purchaser; or
(ii) proves by other means that the
transaction was not subject to tax;
(3) in the case of drop shipment sales, a seller engaged in drop shipping may claim a resale exemption based on an exemption certificate provided by its customer or reseller, or any other acceptable information available to the seller engaged in drop shipping evidencing qualification for a resale exemption, regardless of whether the customer or reseller is registered to collect and remit sales and use tax in the state.
(c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:
(1) fraudulently fails to collect the tax; or
(2) solicits purchasers to participate in the unlawful claim of an exemption.
(d) A certified service provider, as defined in section 297A.995, subdivision 2, is relieved of liability under this section to the extent a seller who is its client is relieved of liability.
(e) A purchaser of tangible personal property or any items listed in section 297A.63 that are shipped or brought to Minnesota by the purchaser has the burden of proving that the property was not purchased from a retailer for storage, use, or consumption in Minnesota.
(f) If a seller claims that certain sales are exempt and does not provide the certificate, information, or proof required by paragraph (b), clause (2), within 120 days after the date of the commissioner's request for substantiation, then the exemptions claimed by the seller that required substantiation are disallowed.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 21. Minnesota Statutes 2012, section 297A.668, is amended by adding a subdivision to read:
Subd. 6a. Multiple
points of use. (a)
Notwithstanding the provisions of subdivisions 2 and 3, a business purchaser
that has not received authorization to pay the tax directly to the commissioner
may use an exemption certificate indicating multiple points of use if:
(1) the purchaser knows at the time of
its purchase of a digital good, computer software delivered electronically, or
a service that the good or service will be concurrently available for use in
more than one taxing jurisdiction; and
(2) the purchaser delivers to the
seller the exemption certificate indicating multiple points of use at the time
of purchase.
(b) Upon receipt of the fully completed
exemption certificate indicating multiple points of use, the seller is relieved
of the obligation to collect, pay, or remit the applicable tax and the
purchaser is obligated to collect, pay, or remit the applicable tax on a direct
pay basis. The provisions of section
297A.665 apply to this paragraph.
(c) The purchaser delivering the
exemption certificate indicating multiple points of use may use any reasonable
but consistent and uniform method of apportionment that is supported by the
purchaser's business records as they exist at the time of the consummation of
the sale.
(d) The purchaser shall provide the
exemption certificate indicating multiple points of use to the seller at the
time of purchase.
(e) A purchaser that has received
authorization to pay the tax directly to the commissioner is not required to
deliver to the seller an exemption certificate indicating multiple points of
use. A purchaser that has received
authorization to pay the tax directly to the commissioner shall follow the
provisions of paragraph (c) in apportioning the tax due on a digital good,
computer software delivered electronically, or a service that will be
concurrently available for use in more than one taxing jurisdiction.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 22. Minnesota Statutes 2012, section 297A.67, subdivision 7, is amended to read:
Subd. 7. Drugs; medical devices. (a) Sales of the following drugs and medical devices for human use are exempt:
(1) drugs, including over-the-counter drugs;
(2) single-use finger-pricking devices for the extraction of blood and other single-use devices and single-use diagnostic agents used in diagnosing, monitoring, or treating diabetes;
(3) insulin and medical oxygen for human use, regardless of whether prescribed or sold over the counter;
(4) prosthetic devices;
(5) durable medical equipment for home use only;
(6) mobility enhancing equipment;
(7) prescription corrective eyeglasses; and
(8) kidney dialysis equipment, including repair and replacement parts.
(b) Items purchased in transactions
covered by:
(1)
Medicare as defined under title XVIII of the Social Security Act, United States
Code, title 42, section 1395, et seq.; or
(2)
Medicaid as defined under title XIX of the Social Security Act, United States
Code, title 42, section 1396, et seq.
(b) (c) For purposes of this
subdivision:
(1) "Drug" means a compound, substance, or preparation, and any component of a compound, substance, or preparation, other than food and food ingredients, dietary supplements, or alcoholic beverages that is:
(i) recognized in the official United States Pharmacopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, and supplement to any of them;
(ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease; or
(iii) intended to affect the structure or any function of the body.
(2) "Durable medical equipment" means equipment, including repair and replacement parts, including single-patient use items, but not including mobility enhancing equipment, that:
(i) can withstand repeated use;
(ii) is primarily and customarily used to serve a medical purpose;
(iii) generally is not useful to a person in the absence of illness or injury; and
(iv) is not worn in or on the body.
For purposes of this clause,
"repair and replacement parts" includes all components or attachments
used in conjunction with the durable medical equipment, but does not include
including repair and replacement parts which are for single patient use
only.
(3) "Mobility enhancing equipment" means equipment, including repair and replacement parts, but not including durable medical equipment, that:
(i) is primarily and customarily used to provide or increase the ability to move from one place to another and that is appropriate for use either in a home or a motor vehicle;
(ii) is not generally used by persons with normal mobility; and
(iii) does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
(4) "Over-the-counter drug" means a drug that contains a label that identifies the product as a drug as required by Code of Federal Regulations, title 21, section 201.66. The label must include a "drug facts" panel or a statement of the active ingredients with a list of those ingredients contained in the compound, substance, or preparation. Over-the-counter drugs do not include grooming and hygiene products, regardless of whether they otherwise meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.
(5) "Prescribed" and "prescription" means a direction in the form of an order, formula, or recipe issued in any form of oral, written, electronic, or other means of transmission by a duly licensed health care professional.
(6) "Prosthetic device" means a replacement, corrective, or supportive device, including repair and replacement parts, worn on or in the body to:
(i) artificially replace a missing portion of the body;
(ii) prevent or correct physical deformity or malfunction; or
(iii) support a weak or deformed portion of the body.
Prosthetic device does not include corrective eyeglasses.
(7) "Kidney dialysis equipment" means equipment that:
(i) is used to remove waste products that build up in the blood when the kidneys are not able to do so on their own; and
(ii) can withstand repeated use, including multiple use by a single patient, notwithstanding the provisions of clause (2).
(8) A transaction is covered by Medicare
or Medicaid if any portion of the cost of the item purchased in the transaction
is paid for or reimbursed by the federal government or the state of Minnesota
pursuant to the Medicare or Medicaid program, by a private insurance company
administering the Medicare or Medicaid program on behalf of the federal
government or the state of Minnesota, or by a managed care organization for the
benefit of a patient enrolled in a prepaid program that furnishes medical services
in lieu of conventional Medicare or Medicaid coverage pursuant to agreement
with the federal government or the state of Minnesota.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 23. Minnesota Statutes 2012, section 297A.67, is amended by adding a subdivision to read:
Subd. 7a. Accessories
and supplies. Accessories and
supplies required for the effective use of durable medical equipment for home
use only or purchased in a transaction covered by medicare or Medicaid, that
are not already exempt under section 297A.67, subdivision 7, are exempt. Accessories and supplies for the effective
use of a prosthetic device that are not already exempt under section 297A.67,
subdivision 7, are exempt. For purposes
of this subdivision "durable medical equipment," "prosthetic
device," "Medicare," and "Medicaid" have the
definitions given in section 297A.67, subdivision 7.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 24. Minnesota Statutes 2012, section 297A.67, subdivision 13, is amended to read:
Subd. 13. Textbooks. Textbooks, including digital books, that are prescribed for use in conjunction with a course of study in a school, college, university, and private career school to students who are regularly enrolled at such institutions are exempt. For purposes of this subdivision (1) a "school" is as defined in section 120A.22, subdivision 4; and (2) "private career school" means a school licensed under section 141.25.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 25. Minnesota Statutes 2012, section 297A.68, subdivision 2, is amended to read:
Subd. 2. Materials consumed in industrial production. (a) Materials stored, used, or consumed in industrial production of tangible personal property intended to be sold ultimately at retail, are exempt, whether or not the item so used becomes an ingredient or constituent part of the property produced. Materials that qualify for this exemption include, but are not limited to, the following:
(1) chemicals, including chemicals used for cleaning food processing machinery and equipment;
(2) materials, including chemicals, fuels, and electricity purchased by persons engaged in industrial production to treat waste generated as a result of the production process;
(3) fuels, electricity, gas, and steam used or consumed in the production process, except that electricity, gas, or steam used for space heating, cooling, or lighting is exempt if (i) it is in excess of the average climate control or lighting for the production area, and (ii) it is necessary to produce that particular product;
(4) petroleum products and lubricants;
(5) packaging materials, including returnable containers used in packaging food and beverage products;
(6) accessory tools, equipment, and other items that are separate detachable units with an ordinary useful life of less than 12 months used in producing a direct effect upon the product; and
(7) the following materials, tools, and equipment used in metal-casting: crucibles, thermocouple protection sheaths and tubes, stalk tubes, refractory materials, molten metal filters and filter boxes, degassing lances, and base blocks.
(b) This exemption does not include:
(1) machinery, equipment, implements, tools, accessories, appliances, contrivances and furniture and fixtures, except those listed in paragraph (a), clause (6); and
(2) petroleum and special fuels used in producing or generating power for propelling ready-mixed concrete trucks on the public highways of this state.
(c) Industrial production includes, but is not limited to, research, development, design or production of any tangible personal property, manufacturing, processing (other than by restaurants and consumers) of agricultural products (whether vegetable or animal), commercial fishing, refining, smelting, reducing, brewing, distilling, printing, mining, quarrying, lumbering, generating electricity, the production of road building materials, and the research, development, design, or production of computer software. Industrial production does not include painting, cleaning, repairing or similar processing of property except as part of the original manufacturing process.
(d) Industrial production does not include:
(1) the furnishing of services listed in section 297A.61, subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii), or paragraph (m); or
(2) the transportation, transmission, or distribution of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, tanks, mains, or other means of transporting those products. For purposes of this paragraph, "transportation, transmission, or distribution" does not include blending of petroleum or biodiesel fuel as defined in section 239.77.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 26. Minnesota Statutes 2012, section 297A.68, subdivision 5, is amended to read:
Subd. 5. Capital
equipment. (a) Capital equipment is
exempt. The tax must be imposed and
collected as if the rate under section 297A.62, subdivision 1, applied, and
then refunded in the manner provided in section 297A.75.
"Capital equipment" means machinery and equipment purchased or leased, and used in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, or refining tangible personal property to be sold ultimately at retail if the machinery and equipment are essential to the integrated production process of manufacturing, fabricating, mining, or refining. Capital equipment also includes machinery and equipment used primarily to electronically transmit results retrieved by a customer of an online computerized data retrieval system.
(b) Capital equipment includes, but is not limited to:
(1) machinery and equipment used to operate, control, or regulate the production equipment;
(2) machinery and equipment used for research and development, design, quality control, and testing activities;
(3) environmental control devices that are used to maintain conditions such as temperature, humidity, light, or air pressure when those conditions are essential to and are part of the production process;
(4) materials and supplies used to construct and install machinery or equipment;
(5) repair and replacement parts, including accessories, whether purchased as spare parts, repair parts, or as upgrades or modifications to machinery or equipment;
(6) materials used for foundations that support machinery or equipment;
(7) materials used to construct and install special purpose buildings used in the production process;
(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed as part of the delivery process regardless if mounted on a chassis, repair parts for ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and
(9) machinery or equipment used for research, development, design, or production of computer software.
(c) Capital equipment does not include the following:
(1) motor vehicles taxed under chapter 297B;
(2) machinery or equipment used to receive or store raw materials;
(3) building materials, except for materials included in paragraph (b), clauses (6) and (7);
(4) machinery or equipment used for nonproduction purposes, including, but not limited to, the following: plant security, fire prevention, first aid, and hospital stations; support operations or administration; pollution control; and plant cleaning, disposal of scrap and waste, plant communications, space heating, cooling, lighting, or safety;
(5) farm machinery and aquaculture production equipment as defined by section 297A.61, subdivisions 12 and 13;
(6) machinery or equipment purchased and installed by a contractor as part of an improvement to real property;
(7) machinery and equipment used by restaurants in the furnishing, preparing, or serving of prepared foods as defined in section 297A.61, subdivision 31;
(8) machinery and equipment used to furnish the services listed in section 297A.61, subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii);
(9) machinery or equipment used in the transportation, transmission, or distribution of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, tanks, mains, or other means of transporting those products. This clause does not apply to machinery or equipment used to blend petroleum or biodiesel fuel as defined in section 239.77; or
(10) any other item that is not essential to the integrated process of manufacturing, fabricating, mining, or refining.
(d) For purposes of this subdivision:
(1) "Equipment" means independent devices or tools separate from machinery but essential to an integrated production process, including computers and computer software, used in operating, controlling, or regulating machinery and equipment; and any subunit or assembly comprising a component of any machinery or accessory or attachment parts of machinery, such as tools, dies, jigs, patterns, and molds.
(2) "Fabricating" means to make, build, create, produce, or assemble components or property to work in a new or different manner.
(3) "Integrated production process" means a process or series of operations through which tangible personal property is manufactured, fabricated, mined, or refined. For purposes of this clause, (i) manufacturing begins with the removal of raw materials from inventory and ends when the last process prior to loading for shipment has been completed; (ii) fabricating begins with the removal from storage or inventory of the property to be assembled, processed, altered, or modified and ends with the creation or production of the new or changed product; (iii) mining begins with the removal of overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and ends when the last process before stockpiling is completed; and (iv) refining begins with the removal from inventory or storage of a natural resource and ends with the conversion of the item to its completed form.
(4) "Machinery" means mechanical, electronic, or electrical devices, including computers and computer software, that are purchased or constructed to be used for the activities set forth in paragraph (a), beginning with the removal of raw materials from inventory through completion of the product, including packaging of the product.
(5) "Machinery and equipment used for pollution control" means machinery and equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity described in paragraph (a).
(6) "Manufacturing" means an operation or series of operations where raw materials are changed in form, composition, or condition by machinery and equipment and which results in the production of a new article of tangible personal property. For purposes of this subdivision, "manufacturing" includes the generation of electricity or steam to be sold at retail.
(7) "Mining" means the extraction of minerals, ores, stone, or peat.
(8) "Online data retrieval system" means a system whose cumulation of information is equally available and accessible to all its customers.
(9) "Primarily" means machinery and equipment used 50 percent or more of the time in an activity described in paragraph (a).
(10) "Refining" means the process of converting a natural resource to an intermediate or finished product, including the treatment of water to be sold at retail.
(11) This subdivision does not apply to telecommunications equipment as provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit for telecommunications services.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after August 31, 2014.
Sec. 27. Minnesota Statutes 2012, section 297A.68, subdivision 42, is amended to read:
Subd. 42. Qualified data centers. (a) Purchases of enterprise information technology equipment and computer software for use in a qualified data center, or a qualified refurbished data center, are exempt. The tax on purchases exempt under this paragraph must be imposed and collected as if the rate under section 297A.62, subdivision 1, applied, and then refunded after June 30, 2013, in the manner provided in section 297A.75. This exemption includes enterprise information technology equipment and computer software purchased to replace or upgrade enterprise information technology equipment and computer software in a qualified data center, or a qualified refurbished data center.
(b) Electricity used or consumed in the operation of a qualified data center is exempt.
(c) For purposes of this subdivision, "qualified data center, or a qualified refurbished data center," means a facility in Minnesota:
(1) that is comprised of one or more
buildings that consist in the aggregate of at least 30,000 25,000
square feet, and that are located on a single parcel or on contiguous parcels,
where the total cost of construction or refurbishment, investment in enterprise
information technology equipment, and computer software is at least $50,000,000
$30,000,000 within a 24 48-month period;
(2) that is constructed or substantially
refurbished after June 30, 2012, where "substantially refurbished"
means that at least 30,000 25,000 square feet have been rebuilt
or modified; and, including:
(i) installation of enterprise
information technology equipment, environmental control, computer software, and
energy efficiency improvements; and
(ii) building improvements; and
(3) that is used to house enterprise information technology equipment, where the facility has the following characteristics:
(i) uninterruptible power supplies, generator backup power, or both;
(ii) sophisticated fire suppression and prevention systems; and
(iii) enhanced security. A facility will be considered to have enhanced security if it has restricted access to the facility to selected personnel; permanent security guards; video camera surveillance; an electronic system requiring pass codes, keycards, or biometric scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
In determining whether the facility has
the required square footage, the square footage of the following spaces shall
be included if the spaces support the operation of enterprise information
technology equipment: office space,
meeting space, and mechanical and other support facilities. For purposes of this subdivision,
"computer software" includes, but is not limited to, software
utilized or loaded at the qualified data center, including maintenance,
licensing, and software customization.
(d) For purposes of this subdivision, a
"qualified refurbished data center" means an existing facility that
qualifies as a data center under paragraph (c), clauses (2) and (3), but that
is comprised of one or more buildings that consist in the aggregate of at least
25,000 square feet, and that are located on a single parcel or contiguous
parcels, where the total cost of construction or refurbishment, investment in
enterprise information technology equipment, and computer software is at least
$50,000,000 within a 24-month period.
(d) (e) For purposes of this
subdivision, "enterprise information technology equipment" means
computers and equipment supporting computing, networking, or data storage,
including servers and routers. It
includes, but is not limited to: cooling
systems, cooling towers, and other temperature control infrastructure; power
infrastructure for transformation, distribution, or management of electricity
used for the maintenance and operation of a qualified data center, including
but not limited to exterior dedicated business-owned substations, backup power
generation systems, battery systems, and related infrastructure; and racking
systems, cabling, and trays, which are necessary for the maintenance and
operation of the qualified data center.
(e) (f) A qualified data
center may claim the exemptions in this subdivision for purchases made either
within 20 years of the date of its first purchase qualifying for the exemption
under paragraph (a), or by June 30, 2042, whichever is earlier.
(f) (g) The purpose of this
exemption is to create jobs in the construction and data center industries.
(g) (h) This subdivision is
effective for sales and purchases made after June 30, 2012, and before July 1,
2042.
EFFECTIVE
DATE. This section is effective
for sales and purchases made after June 30, 2013.
Sec. 28. Minnesota Statutes 2012, section 297A.68, is amended by adding a subdivision to read:
Subd. 49. Greater
Minnesota business expansions. (a)
Purchases and use of tangible personal property or taxable services by a
qualified business, as defined in section 116J.3738, are exempt if:
(1) the business subsidy
agreement provides that the exemption under this subdivision applies;
(2) the property or services are
primarily used or consumed in greater Minnesota; and
(3) the purchase was made and delivery
received during the duration of the certification of the business as a
qualified business under section 116J.3738.
(b)
Purchase and use of construction materials and supplies used or consumed in,
and equipment incorporated into, the construction of improvements to real
property in greater Minnesota are exempt if the improvements after completion
of construction are to be used in the conduct of the trade or business of the
qualified business, as defined in section 116J.3738. This exemption applies regardless of whether
the purchases are made by the business or a contractor.
(c) The exemptions under this
subdivision apply to a local sales and use tax.
(d) The tax on purchases imposed under
this subdivision must be imposed and collected as if the rate under section
297A.62 applied, and then refunded in the manner provided in section 297A.75. No more than $7,000,000 may be refunded in a
fiscal year for all purchases under this subdivision. Refunds must be allocated on a first come,
first served basis. If more than
$7,000,000 of eligible claims are made in a fiscal year, claims by qualified
businesses carryover to the next fiscal year, and the commissioner must first
allocate refunds to qualified businesses eligible for a refund in the preceding
fiscal year. Any portion of the balance
of funds allocated for refunds under this paragraph does not cancel and shall
be carried forward to and available for refunds in subsequent fiscal years.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2014.
Sec. 29. Minnesota Statutes 2012, section 297A.70, subdivision 2, is amended to read:
Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b), to the following governments and political subdivisions, or to the listed agencies or instrumentalities of governments and political subdivisions, are exempt:
(1) the United States and its agencies and instrumentalities;
(2) school districts, local governments, the University of Minnesota, state universities, community colleges, technical colleges, state academies, the Perpich Minnesota Center for Arts Education, and an instrumentality of a political subdivision that is accredited as an optional/special function school by the North Central Association of Colleges and Schools;
(3) hospitals and nursing homes owned and operated by political subdivisions of the state of tangible personal property and taxable services used at or by hospitals and nursing homes;
(4) the Metropolitan Council, for its purchases of vehicles and repair parts to equip operations provided for in section 473.4051;
(5) other states or political subdivisions
of other states, if the sale would be exempt from taxation if it occurred in
that state; and
(6) public libraries, public library
systems, multicounty, multitype library systems as defined in section 134.001,
county law libraries under chapter 134A, state agency libraries, the state
library under section 480.09, and the Legislative Reference Library; and.
(7) towns.
(b) This exemption does not apply to the sales of the following products and services:
(1) building, construction, or reconstruction materials purchased by a contractor or a subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed maximum price covering both labor and materials for use in the construction, alteration, or repair of a building or facility;
(2) construction materials purchased by tax exempt entities or their contractors to be used in constructing buildings or facilities which will not be used principally by the tax exempt entities;
(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except for leases entered into by the United States or its agencies or instrumentalities;
(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, subdivision 2, except for lodging, prepared food, candy, soft drinks, and alcoholic beverages purchased directly by the United States or its agencies or instrumentalities; or
(5) goods or services purchased by a town
local government as inputs to goods and services that are generally
provided by a private business and the purchases would be taxable if made by a
private business engaged in the same activity.
(c) As used in this subdivision, "school districts" means public school entities and districts of every kind and nature organized under the laws of the state of Minnesota, and any instrumentality of a school district, as defined in section 471.59.
(d) As used in this subdivision,
"local governments" means cities, counties, and townships.
(d) (e) As used in this
subdivision, "goods or services generally provided by a private
business" include, but are not limited to, goods or services provided by
liquor stores, gas and electric utilities, golf courses, marinas, health and
fitness centers, campgrounds, cafes, and laundromats. "Goods or services generally provided by
a private business" do not include housing services, sewer and water
services, wastewater treatment, ambulance and other public safety services,
correctional services, chore or homemaking services provided to elderly or
disabled individuals, or road and street maintenance or lighting.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after December 31, 2013.
Sec. 30. Minnesota Statutes 2012, section 297A.70, subdivision 4, is amended to read:
Subd. 4. Sales
to nonprofit groups. (a) All sales,
except those listed in paragraph (b), to the following "nonprofit
organizations" are exempt:
(1) a corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, or educational purposes if the item purchased is used in the performance of charitable, religious, or educational functions; and
(2) any senior citizen group or association of groups that:
(i) in general limits membership to persons who are either age 55 or older, or physically disabled;
(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit purposes, not including housing, no part of the net earnings of which inures to the benefit of any private shareholders; and
(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery owned by a religious organization.
(b) This exemption does not apply to the following sales:
(1) building, construction, or reconstruction materials purchased by a contractor or a subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed maximum price covering both labor and materials for use in the construction, alteration, or repair of a building or facility;
(2) construction materials purchased by tax-exempt entities or their contractors to be used in constructing buildings or facilities that will not be used principally by the tax-exempt entities; and
(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, subdivision 2, except wine purchased by an established religious organization for sacramental purposes or as allowed under subdivision 9a; and
(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as provided in paragraph (c).
(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, only if the vehicle is:
(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a passenger automobile, as defined in section 168.002, if the automobile is designed and used for carrying more than nine persons including the driver; and
(2) intended to be used primarily to transport tangible personal property or individuals, other than employees, to whom the organization provides service in performing its charitable, religious, or educational purpose.
(d) A limited liability company also qualifies for exemption under this subdivision if (1) it consists of a sole member that would qualify for the exemption, and (2) the items purchased qualify for the exemption.
EFFECTIVE
DATE. This section is
effective retroactively for sales and purchases made after June 30, 2012.
Sec. 31. Minnesota Statutes 2012, section 297A.70, subdivision 5, is amended to read:
Subd. 5. Veterans groups. Sales to an organization of military service veterans or an auxiliary unit of an organization of military service veterans are exempt if:
(1) the organization or auxiliary unit is organized within the state of Minnesota and is exempt from federal taxation under section 501(c), clause (19), of the Internal Revenue Code; and
(2) the tangible personal property is
or services are for charitable, civic, educational, or nonprofit uses
and not for social, recreational, pleasure, or profit uses.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 32. Minnesota Statutes 2012, section 297A.70, subdivision 7, is amended to read:
Subd. 7. Hospitals
and, outpatient surgical centers, and critical access dental
providers. (a) Sales, except for
those listed in paragraph (c) (d), to a hospital are exempt, if
the items purchased are used in providing hospital services. For purposes of this subdivision,
"hospital" means a hospital organized and operated for charitable
purposes within the meaning of section 501(c)(3) of the Internal Revenue Code,
and licensed under chapter 144 or by any other jurisdiction, and "hospital
services" are services authorized or required to be performed by a
"hospital" under chapter 144.
(b) Sales, except for those listed in
paragraph (c) (d), to an outpatient surgical center are exempt,
if the items purchased are used in providing outpatient surgical services. For purposes of this subdivision,
"outpatient surgical center" means an outpatient surgical center
organized and operated for charitable purposes within the meaning of section
501(c)(3) of the Internal Revenue Code, and licensed under chapter 144 or by
any other jurisdiction. For the purposes
of this subdivision, "outpatient surgical services" means: (1) services authorized or required to be performed
by an outpatient surgical center under chapter 144; and (2) urgent care. For purposes of this subdivision,
"urgent care" means health services furnished to a person whose
medical condition is sufficiently acute to require treatment unavailable through,
or inappropriate to be provided by, a clinic or physician's office, but not so
acute as to require treatment in a hospital emergency room.
(c) Sales, except for those listed in
paragraph (d), to a critical access dental provider are exempt, if the items
purchased are used in providing critical access dental care services. For the purposes of this subdivision,
"critical access dental provider" means a dentist or dental clinic
that qualifies under section 256B.76, subdivision 4, paragraph (b) and, in the
previous calendar year, had no more than 15 percent of its patients covered by
private dental insurance.
(d) This exemption does not apply to the following products and services:
(1) purchases made by a clinic, physician's
office, or any other medical facility not operating as a hospital or,
outpatient surgical center, or critical access dental provider, even
though the clinic, office, or facility may be owned and operated by a hospital or,
outpatient surgical center, or critical access dental provider;
(2) sales under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared food, candy, and soft drinks;
(3) building and construction materials used
in constructing buildings or facilities that will not be used principally by
the hospital or, outpatient surgical center, or critical
access dental provider;
(4) building, construction, or
reconstruction materials purchased by a contractor or a subcontractor as a part
of a lump-sum contract or similar type of contract with a guaranteed maximum
price covering both labor and materials for use in the construction,
alteration, or repair of a hospital or, outpatient surgical
center, or critical access dental provider; or
(5) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11.
(d) (e) A limited liability
company also qualifies for exemption under this subdivision if (1) it consists
of a sole member that would qualify for the exemption, and (2) the items
purchased qualify for the exemption.
(e) (f) An entity that contains
both a hospital and a nonprofit unit may claim this exemption on purchases made
for both the hospital and nonprofit unit provided that:
(1) the nonprofit unit would have qualified for exemption under subdivision 4; and
(2) the items purchased would have qualified for the exemption.
EFFECTIVE
DATE. This section is
effective retroactively for sales and purchases made after June 30, 2007. Purchasers may apply for a refund of tax paid
for qualifying purchases under this subdivision made after June 30, 2007, and
before July 1, 2013, in the manner provided in Minnesota Statutes, section
297A.75. Notwithstanding limitations on
claims for refunds under Minnesota Statutes, section 297A.40, claims may be
filed with the commissioner until June 30, 2014.
Sec. 33. Minnesota Statutes 2012, section 297A.70, is amended by adding a subdivision to read:
Subd. 9a. Established
religious orders. (a) Sales
of lodging, prepared food, candy, soft drinks, and alcoholic beverages at
noncatered events between an established religious order and an affiliated
institution of higher education are exempt.
(b) For purposes of this subdivision,
"established religious order" means an organization directly or
indirectly under the control or supervision of a church or convention or
association of churches, where members of the organization:
(1) normally live together as part of a
community;
(2) make long-term commitments to live
under a strict set of moral and spiritual rules; and
(3) work or engage full time in a
combination of prayer, religious study, church reform or renewal, or other
religious, educational, or charitable goals of the organization.
(c) For purposes of this subdivision,
an institution of higher education is "affiliated" with an
established religious order if members of the religious order are represented
on the governing board of the institution of higher education and the two
organization share campus space and common facilities.
EFFECTIVE
DATE. This section is
effective retroactively for sales and purchases made after June 30, 2012.
Sec. 34. Minnesota Statutes 2012, section 297A.70, subdivision 13, is amended to read:
Subd. 13. Fund-raising sales by or for nonprofit groups. (a) The following sales by the specified organizations for fund-raising purposes are exempt, subject to the limitations listed in paragraph (b):
(1) all sales made by a nonprofit organization that exists solely for the purpose of providing educational or social activities for young people primarily age 18 and under;
(2) all sales made by an organization that is a senior citizen group or association of groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) no part of its net earnings inures to the benefit of any private shareholders;
(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code; and
(4) sales of candy sold for fund-raising purposes by a nonprofit organization that provides educational and social activities primarily for young people age 18 and under.
(b) The exemptions listed in paragraph (a) are limited in the following manner:
(1) the exemption under paragraph (a), clauses (1) and (2), applies only if the gross annual receipts of the organization from fund-raising do not exceed $10,000; and
(2) the exemption under paragraph (a), clause (1), does not apply if the sales are derived from admission charges or from activities for which the money must be deposited with the school district treasurer under section 123B.49, subdivision 2, or be recorded in the same manner as other revenues or expenditures of the school district under section 123B.49, subdivision 4.
(c) Sales of tangible personal property and services are exempt if the entire proceeds, less the necessary expenses for obtaining the property or services, will be contributed to a registered combined charitable organization described in section 43A.50, to be used exclusively for charitable, religious, or educational purposes, and the registered combined charitable organization has given its written permission for the sale. Sales that occur over a period of more than 24 days per year are not exempt under this paragraph.
(d) For purposes of this subdivision, a club, association, or other organization of elementary or secondary school students organized for the purpose of carrying on sports, educational, or other extracurricular activities is a separate organization from the school district or school for purposes of applying the $10,000 limit.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 35. Minnesota Statutes 2012, section 297A.70, subdivision 14, is amended to read:
Subd. 14. Fund-raising events sponsored by nonprofit groups. (a) Sales of tangible personal property or services at, and admission charges for fund-raising events sponsored by, a nonprofit organization are exempt if:
(1) all gross receipts are recorded as such, in accordance with generally accepted accounting practices, on the books of the nonprofit organization; and
(2) the entire proceeds, less the necessary expenses for the event, will be used solely and exclusively for charitable, religious, or educational purposes. Exempt sales include the sale of prepared food, candy, and soft drinks at the fund-raising event.
(b) This exemption is limited in the following manner:
(1) it does not apply to admission charges for events involving bingo or other gambling activities or to charges for use of amusement devices involving bingo or other gambling activities;
(2) all gross receipts are taxable if the profits are not used solely and exclusively for charitable, religious, or educational purposes;
(3) it does not apply unless the organization keeps a separate accounting record, including receipts and disbursements from each fund-raising event that documents all deductions from gross receipts with receipts and other records;
(4) it does not apply to any sale made by or in the name of a nonprofit corporation as the active or passive agent of a person that is not a nonprofit corporation;
(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
(6) it does not apply to fund-raising events conducted on premises leased for more than five days but less than 30 days; and
(7) it does not apply if the risk of the event is not borne by the nonprofit organization and the benefit to the nonprofit organization is less than the total amount of the state and local tax revenues forgone by this exemption.
(c) For purposes of this subdivision, a "nonprofit organization" means any unit of government, corporation, society, association, foundation, or institution organized and operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans' purposes, no part of the net earnings of which inures to the benefit of a private individual.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 36. Minnesota Statutes 2012, section 297A.70, is amended by adding a subdivision to read:
Subd. 18. Nursing
homes and boarding care homes. (a)
All sales, except those listed in paragraph (b), to a nursing home licensed
under section 144A.02 or a boarding care home certified as a nursing facility
under title 19 of the Social Security Act are exempt if the facility:
(1) is exempt from federal income
taxation pursuant to section 501(c)(3) of the Internal Revenue Code; and
(2) is certified to participate in the
medical assistance program under title 19 of the Social Security Act, or
certifies to the commissioner that it does not discharge residents due to the
inability to pay.
(b) This exemption does not apply to
the following sales:
(1) building, construction, or
reconstruction materials purchased by a contractor or a subcontractor as a part
of a lump-sum contract or similar type of contract with a guaranteed maximum
price covering both labor and materials for use in the construction,
alteration, or repair of a building or facility;
(2) construction materials purchased by
tax-exempt entities or their contractors to be used in constructing buildings
or facilities that will not be used principally by the tax-exempt entities;
(3) lodging as defined under section
297A.61, subdivision 3, paragraph (g), clause (2), and prepared food, candy,
soft drinks, and alcoholic beverages as defined in section 297A.67, subdivision
2; and
(4) leasing of a motor vehicle as
defined in section 297B.01, subdivision 11, except as provided in paragraph
(c).
(c) This exemption applies to the
leasing of a motor vehicle as defined in section 297B.01, subdivision 11, only
if the vehicle is:
(1) a truck, as defined in section
168.002; a bus, as defined in section 168.002; or a passenger automobile, as
defined in section 168.002, if the automobile is designed and used for carrying
more than nine persons including the driver; and
(2) intended to be used primarily to
transport tangible personal property or residents of the nursing home or
boarding care home.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013.
Sec. 37. Minnesota Statutes 2012, section 297A.71, is amended by adding a subdivision to read:
Subd. 45. Biopharmaceutical
manufacturing facility. (a)
Materials and supplies used or consumed in, capital equipment incorporated into,
and privately owned infrastructure in support of the construction, improvement,
or expansion of a biopharmaceutical manufacturing facility in the state are
exempt if the following criteria are met:
(1) the facility is used for the manufacturing of biologics;
(2) the total capital investment made
at the facility exceeds $50,000,000; and
(3) the facility creates and maintains
at least 190 full-time equivalent positions at the facility. These positions must be new jobs in Minnesota
and not the result of relocating jobs that currently exist in Minnesota.
(b) The tax must be imposed and
collected as if the rate under section 297A.62 applied, and refunded in the
manner provided in section 297A.75.
(c) To be eligible for a refund, the
owner of the biopharmaceutical manufacturing facility must:
(1) initially apply to the Department
of Employment and Economic Development for certification no later than one year
from the final completion date of construction, improvement, or expansion of
the facility; and
(2) for each year that the owner of the
biopharmaceutical manufacturing facility applies for a refund, the owner must
have received written certification from the Department of Employment and
Economic Development that the facility has met the criteria of paragraph (a).
(d) The refund is to be paid annually
at a rate of 25 percent of the total allowable refund payable to date, with the
commissioner making annual payments of the remaining refund until all of the
refund has been paid.
(e) For purposes of this subdivision,
"biopharmaceutical" and "biologics" are interchangeable and
mean medical drugs or medicinal preparations produced using technology that
uses biological systems, living organisms or derivatives of living organisms,
to make or modify products or processes for specific use. The medical drugs or medicinal preparations
include but are not limited to proteins, antibodies, nucleic acids, and
vaccines.
EFFECTIVE
DATE. This section is
effective retroactively to capital investments made and jobs created after
December 31, 2012, and effective retroactively for sales and purchases made
after December 31, 2012, and before July 1, 2019.
Sec. 38. Minnesota Statutes 2012, section 297A.71, is amended by adding a subdivision to read:
Subd. 46. Research
and development facility. Materials
and supplies used or consumed in, and equipment incorporated into, the
construction or improvement of a research and development facility that has
laboratory space of at least 400,000 square feet and utilizes both high-intensity
and low-intensity laboratories, provided that the project has a total
construction cost of at least $140,000,000 within a 24-month period. The tax on purchases imposed under this
subdivision must be imposed and collected as if the rate under section 297A.62
applied and then refunded in the manner provided in section 297A.75.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013, and before
September 1, 2015.
Sec. 39. Minnesota Statutes 2012, section 297A.71, is amended by adding a subdivision to read:
Subd. 47. Industrial
measurement manufacturing and controls facility. (a) Materials and supplies used or
consumed in, capital equipment incorporated into, fixtures installed in, and
privately owned infrastructure in support of the construction, improvement, or
expansion of an industrial measurement manufacturing and controls facility are
exempt if:
(1) the total capital investment made
at the facility is at least $60,000,000;
(2) the facility employs at least 250
full-time equivalent employees that are not employees currently employed by the
company in the state; and
(3) the Department of Employment and
Economic Development determines that the expansion, remodeling, or improvement
of the facility has a significant impact on the state economy.
(b) The tax must be imposed and
collected as if the rate under section 297A.62 applied and refunded in the
manner provided in section 297A.75, only after the following criteria are met:
(1) a refund may not be issued until
the owner of the facility has received certification from the Department of
Employment and Economic Development that the company meets the requirements in
paragraph (a); and
(2) to receive the refund, the owner of
the industrial measurement manufacturing and controls facility must initially
apply to the Department of Employment and Economic Development for
certification no later than one year from the final completion date of
construction, improvement, or expansion of the industrial measurement manufacturing
and controls facility.
EFFECTIVE
DATE. This section is
effective for sales and purchases made after June 30, 2013, and before December
31, 2015.
Sec. 40. Minnesota Statutes 2012, section 297A.75, subdivision 1, is amended to read:
Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the following exempt items must be imposed and collected as if the sale were taxable and the rate under section 297A.62, subdivision 1, applied. The exempt items include:
(1) capital equipment exempt under
section 297A.68, subdivision 5;
(2) (1) building materials for
an agricultural processing facility exempt under section 297A.71, subdivision
13;
(3) (2) building materials for
mineral production facilities exempt under section 297A.71, subdivision 14;
(4) (3) building materials for
correctional facilities under section 297A.71, subdivision 3;
(5) (4) building materials used in a residence
for disabled veterans exempt under section 297A.71, subdivision 11;
(6) (5) elevators and building
materials exempt under section 297A.71, subdivision 12;
(7) (6) building materials for
the Long Lake Conservation Center exempt under section 297A.71, subdivision 17;
(8) (7) materials and supplies
for qualified low-income housing under section 297A.71, subdivision 23;
(9) (8) materials, supplies, and equipment for municipal electric utility facilities under section 297A.71, subdivision 35;
(10) (9) equipment and
materials used for the generation, transmission, and distribution of electrical
energy and an aerial camera package exempt under section 297A.68, subdivision
37;
(11) (10) commuter rail
vehicle and repair parts under section 297A.70, subdivision 3, paragraph (a),
clause (10);
(12) (11) materials, supplies,
and equipment for construction or improvement of projects and facilities under
section 297A.71, subdivision 40;
(13) (12) materials,
supplies, and equipment for construction or improvement of a meat processing
facility exempt under section 297A.71, subdivision 41;
(14) (13) materials,
supplies, and equipment for construction, improvement, or expansion of:
(i) an aerospace defense manufacturing facility exempt under section 297A.71, subdivision 42;
(ii) a biopharmaceutical manufacturing
facility exempt under section 297A.71, subdivision 45;
(iii) a research and development
facility exempt under section 297A.71, subdivision 4b; and
(iv)
an industrial measurement manufacturing and controls facility exempt under
section 297A.71, subdivision 47;
(15) (14) enterprise
information technology equipment and computer software for use in a qualified
data center exempt under section 297A.68, subdivision 42; and
(16) (15) materials, supplies, and equipment
for qualifying capital projects under section 297A.71, subdivision 44;
(16) items purchased for use in
providing critical access dental services exempt under section 297A.70,
subdivision 7, paragraph (c); and
(17) items and services purchased under a business subsidy agreement for use or consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 49.
EFFECTIVE
DATE. The change to clause
(1) is effective for sales and purchases made after August 31, 2014. The changes in clauses (13), (16), and (17),
are effective the day following final enactment.
Sec. 41. Minnesota Statutes 2012, section 297A.75, subdivision 2, is amended to read:
Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must be paid to the applicant. Only the following persons may apply for the refund:
(1) for subdivision 1, clauses (1) to (3),
(2), and (16), the applicant must be the purchaser;
(2) for subdivision 1, clauses (4) (3)
and (7) (6), the applicant must be the governmental subdivision;
(3) for subdivision 1, clause (5) (4),
the applicant must be the recipient of the benefits provided in United States Code,
title 38, chapter 21;
(4) for subdivision 1, clause (6)
(5), the applicant must be the owner of the homestead property;
(5) for subdivision 1, clause (8) (7),
the owner of the qualified low-income housing project;
(6) for subdivision 1, clause (9) (8),
the applicant must be a municipal electric utility or a joint venture of
municipal electric utilities;
(7) for
subdivision 1, clauses (10), (9), (12), (13), (14), and (15)
and (17), the owner of the qualifying business; and
(8) for subdivision 1, clauses (10),
(11), (12), and (16) (15), the applicant must be the
governmental entity that owns or contracts for the project or facility.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 42. Minnesota Statutes 2012, section 297A.75, subdivision 3, is amended to read:
Subd. 3. Application. (a) The application must include
sufficient information to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7),
(8), (9), (10), (11), (12), (13), (14), clauses (3) to (15), or (16)
(17), the contractor, subcontractor, or builder must furnish to the
refund applicant a statement including the cost of the exempt items and the
taxes paid on the items unless otherwise specifically provided by this
subdivision. The provisions of sections
289A.40 and 289A.50 apply to refunds under this section.
(b) An applicant may not file more than two applications per calendar year for refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
(c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71, subdivision 40, must not be filed until after June 30, 2009.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 43. Minnesota Statutes 2012, section 297A.99, subdivision 1, is amended to read:
Subdivision 1. Authorization; scope. (a) A political subdivision of this state may impose a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if permitted by special law, or (4) if the political subdivision enacted and imposed the tax before January 1, 1982, and its predecessor provision.
(b) This section governs the imposition of a general sales tax by the political subdivision. The provisions of this section preempt the provisions of any special law:
(1) enacted before June 2, 1997, or
(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law provision from this section's rules by reference.
(c) This section does not apply to or preempt a sales tax on motor vehicles or a special excise tax on motor vehicles.
(d) A political subdivision may not advertise or expend funds for the promotion of a referendum to support imposing a local option sales tax.
(e) Notwithstanding paragraph
(d), a political subdivision may only expend funds to:
(1) conduct the referendum.;
(2) disseminate information included in
the resolution adopted under subdivision 2;
(3) provide notice of, and conduct
public forums at which proponents and opponents on the merits of the referendum
are given equal time to express their opinions on the merits of the referendum;
(4) provide facts and data on the impact
of the proposed sales tax on consumer purchases; and
(5) provide facts and data related to
the programs and projects to be funded with the sales tax.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 44. Laws 1993, chapter 375, article 9, section 46, subdivision 2, as amended by Laws 1997, chapter 231, article 7, section 40, Laws 1998, chapter 389, article 8, section 30, Laws 2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First Special Session chapter 3, article 5, section 26, and Laws 2009, chapter 88, article 4, section 15, is amended to read:
Subd. 2. Use of revenues. Revenues received from the tax authorized by subdivision 1 may only be used by the city to pay the cost of collecting the tax, and, except as provided in paragraph (e), to pay for the following projects or to secure or pay any principal, premium, or interest on bonds issued in accordance with subdivision 3 for the following projects.
(a) To pay all or a portion of the capital expenses of construction, equipment and acquisition costs for the expansion and remodeling of the St. Paul Civic Center complex, including the demolition of the existing arena and the construction and equipping of a new arena.
(b) Except as provided in paragraphs (e) and (f), the remainder of the funds must be spent for:
(1) capital projects to further residential, cultural, commercial, and economic development in both downtown St. Paul and St. Paul neighborhoods; and
(2) capital and operating expenses of cultural organizations in the city, provided that the amount spent under this clause must equal ten percent of the total amount spent under this paragraph in any year.
(c) The amount apportioned under paragraph (b) shall be no less than 60 percent of the revenues derived from the tax each year, except to the extent that a portion of that amount is required to pay debt service on (1) bonds issued for the purposes of paragraph (a) prior to March 1, 1998; or (2) bonds issued for the purposes of paragraph (a) after March 1, 1998, but only if the city council determines that 40 percent of the revenues derived from the tax together with other revenues pledged to the payment of the bonds, including the proceeds of definitive bonds, is expected to exceed the annual debt service on the bonds.
(d) If in any year more than 40 percent of the revenue derived from the tax authorized by subdivision 1 is used to pay debt service on the bonds issued for the purposes of paragraph (a) and to fund a reserve for the bonds, the amount of the debt service payment that exceeds 40 percent of the revenue must be determined for that year. In any year when 40 percent of the revenue produced by the sales tax exceeds the amount required to pay debt service on the bonds and to fund a reserve for the bonds under paragraph (a), the amount of the excess must be made available for capital projects to further residential, cultural, commercial, and economic development in the neighborhoods and downtown until the cumulative amounts determined for all years under the preceding sentence have been made available under this sentence. The amount made available as reimbursement in the preceding sentence is not included in the 60 percent determined under paragraph (c).
(e) In each of calendar
years 2006 to 2014, revenue not to exceed $3,500,000 may be used to pay the
principal of bonds issued for capital projects of the city. After December 31, 2014, revenue from the tax
imposed under subdivision 1 may not be used for this purpose. If the amount necessary to meet
obligations under paragraphs (a) and (d) are less than 40 percent of the
revenue from the tax in any year, the city may place the difference between 40
percent of the revenue and the amounts allocated under paragraphs (a) and (d)
in an economic development fund to be used for any economic development
purposes.
(f) By January 15 of each year, the mayor and the city council must report to the legislature on the use of sales tax revenues during the preceding one-year period.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the city of St. Paul
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 45. Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended by Laws 1998, chapter 389, article 8, section 32, is amended to read:
Subd. 5. Expiration
of taxing authority. The authority
granted by subdivision 1 to the city to impose a sales tax shall expire on
December 31, 2030 2042, or at an earlier time as the city shall,
by ordinance, determine. Any funds
remaining after completion of projects approved under subdivision 2, paragraph
(a) and retirement or redemption of any bonds or other obligations may be
placed in the general fund of the city.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the city of St. Paul
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 46. Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009, chapter 88, article 4, section 19, and Laws 2010, chapter 389, article 5, section 3, is amended to read:
Sec. 25. ROCHESTER
LODGING TAX.
Subdivision 1. Authorization. Notwithstanding Minnesota Statutes, section 469.190 or 477A.016, or any other law, the city of Rochester may impose an additional tax of one percent on the gross receipts from the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it for a continuous period of 30 days or more.
Subd. 1a. Authorization. Notwithstanding Minnesota Statutes,
section 469.190 or 477A.016, or any other law, and in addition to the tax
authorized by subdivision 1, the city of Rochester may impose an additional tax
of one three percent on the gross receipts from the furnishing
for consideration of lodging at a hotel, motel, rooming house, tourist court,
or resort, other than the renting or leasing of it for a continuous period of
30 days or more only upon the approval of the city governing body of a total
financial package for the project.
Subd. 2. Disposition of proceeds. (a) The gross proceeds from the tax imposed under subdivision 1 must be used by the city to fund a local convention or tourism bureau for the purpose of marketing and promoting the city as a tourist or convention center.
(b) The gross proceeds from the one
three percent tax imposed under subdivision 1a shall be used to pay for
(1) design, construction, renovation, improvement, and expansion of the
Mayo Civic Center Complex and related infrastructure, including but
not limited to, skyway access, lighting, parking, or landscaping; and (2)
for payment of any principal, interest, or premium on bonds issued to finance
the construction, renovation, improvement, and expansion of the Mayo Civic
Center Complex.
Subd. 2a. Bonds. The city of Rochester may issue, without
an election, general obligation bonds of the city, in one or more series, in
the aggregate principal amount not to exceed $43,500,000 $50,000,000,
to pay for capital and administrative costs for the design, construction,
renovation, improvement, and expansion of the Mayo Civic Center Complex, and
related infrastructure, including but not limited to, skyway, access,
lighting, parking, and landscaping. The
city may pledge the lodging tax authorized by subdivision 1a and the food
and beverage tax authorized under Laws 2009, chapter 88, article 4, section 23,
to the payment of the bonds. The debt
represented by the bonds is not included in computing any debt limitations
applicable to the city, and the levy of taxes required by Minnesota Statutes,
section 475.61, to pay the principal of and interest on the bonds is not
subject to any levy limitation or included in computing or applying any levy
limitation applicable to the city.
Subd. 3. Expiration
of taxing authority. The
authority of the city to impose a tax under subdivision 1a shall expire when
the principal and interest on any bonds or other obligations issued prior to
December 31, 2014, to finance the construction, renovation, improvement, and
expansion of the Mayo Civic Center Complex and related skyway access, lighting,
parking, or landscaping have been paid, including any bonds issued to refund
such bonds, or at an earlier time as the city shall, by ordinance, determine. Any funds remaining after completion of the
project and retirement or redemption of the bonds shall be placed in the
general fund of the city. The
city may, by ordinance, repeal the tax provided that:
(1) the revenues raised before the
repeal are sufficient to meet all bond or other obligations backed by revenues
of the tax; and
(2) the repeal date meets the
requirements of section 297A.99, subdivision 12.
EFFECTIVE
DATE. This section is
effective the day after the governing body of the city of Rochester and its
chief fiscal officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 47. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 2, is amended to read:
Subd. 2. Use of revenues. (a) Revenues received from the tax authorized by subdivision 1 by the city of St. Cloud must be used for the cost of collecting and administering the tax and to pay all or part of the capital or administrative costs of the development, acquisition, construction, improvement, and securing and paying debt service on bonds or other obligations issued to finance the following regional projects as approved by the voters and specifically detailed in the referendum authorizing the tax or extending the tax:
(1) St. Cloud Regional Airport;
(2) regional transportation improvements;
(3) regional community and aquatics centers;
(4) regional public libraries; and
(5) acquisition and improvement of regional park land and open space.
(b) Revenues received from the tax authorized by subdivision 1 by the cities of St. Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of collecting and administering the tax and to pay all or part of the capital or administrative costs of the development, acquisition, construction, improvement, and securing and paying debt service on bonds or other obligations issued to fund the projects specifically approved by the voters at the referendum authorizing the tax or extending the tax. The portion of revenues from the city going to fund the regional airport or regional library located in the city of St. Cloud will be as required under the applicable joint powers agreement.
(c) The use of revenues received from the taxes authorized in subdivision 1 for projects allowed under paragraphs (a) and (b) are limited to the amount authorized for each project under the enabling referendum.
EFFECTIVE
DATE. This section is
effective for the city that approves them the day after compliance by the
governing body of each city with Minnesota Statutes, section 645.021,
subdivision 3.
Sec. 48. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision 4, is amended to read:
Subd. 4. Termination
of tax. The tax imposed in the
cities of St. Joseph, St. Cloud, St. Augusta, Sartell, Sauk
Rapids, and Waite Park under subdivision 1 expires when the city council
determines that sufficient funds have been collected from the tax to retire or
redeem the bonds and obligations authorized under subdivision 2, paragraph (a),
but no later than December 31, 2018. Notwithstanding
Minnesota Statutes, section 297A.99, subdivision 3, paragraphs (a), (c), and
(d), a city may extend the tax imposed under subdivision 1 through December 31,
2038, if approved by voters of the city no later than November 7, 2017, at
either a general election or at a special election held on a first Tuesday
after a first Monday in November.
EFFECTIVE
DATE. This section is
effective for the city that approves them the day after compliance by the
governing body of each city with Minnesota Statutes, section 645.021,
subdivision 3.
Sec. 49. Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read:
Subd. 3. Use of
revenues. Notwithstanding Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (b), the proceeds of the
tax imposed under this section shall be used to pay for the costs of improvements
to the Sportsman Park/Ballfields, Riverside Park, Lions Park/Pavilion, Cedar
South Park also known as Eldorado Park, and Spring Street Park; improvements to
and extension of the River County Bike Trail; acquisition, and
construction, improvement, and development of regional parks, bicycle
trails, park land, open space, and of a pedestrian walkways, as
described in the city improvement plan adopted by the city council by
resolution on December 12, 2006, and walkway over Interstate 94 and
State Highway 24; and the acquisition of land and construction of
buildings for a community and recreation center. The total amount of revenues from the taxes in
subdivisions 1 and 2 that may be used to fund these projects is $12,000,000
plus any associated bond costs.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the city of
Clearwater with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 50. Laws 2010, chapter 389, article 5, section 6, subdivision 6, is amended to read:
Subd. 6. Use of
food and beverages tax. The revenues
derived from the tax imposed under subdivision 5 must be used by the city of
Marshall to pay the costs of collecting and administering the food and
beverages tax, to pay all or part of the operating costs of the new and
existing facilities of the Minnesota Emergency Response and Industry Training
Center, including the payment of debt service on bonds issued under subdivision
2, and to pay all or part of the operating costs of the facilities of the
Southwest Minnesota Regional Amateur Sports Center, including the payment of
debt service on bonds issued under subdivision 2. Authorized expenses for each organization
include, but are not limited to, acquiring property; predesign; design; and
paying construction, furnishing, and equipment costs related to these
facilities and paying debt service on bonds or other obligations issued by the
city.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 51. CITY
OF MARSHALL; VALIDATION OF PRIOR ACT.
(a) Notwithstanding the time limits in
Minnesota Statutes, section 645.021, the city of Marshall may approve Laws
2010, chapter 389, article 5, section 6, as amended by Laws 201l, First Special
Session chapter 7, article 4, section 9, and file its approval with the
secretary of state by June 15, 2013. If
approved as authorized under this paragraph, actions undertaken by the city
pursuant to the approval of the voters on November 6, 2012, and otherwise in
accordance with Laws 2010, chapter 389, article 5, section 6, as amended by
Laws 201l, First Special Session chapter 7, article 4, section 9, are
validated.
(b) Notwithstanding the time limit on the
imposition of tax under Laws 2010, chapter 389, article 5, section 6,
subdivision 1, as amended by Laws 201l, First Special Session chapter 7,
article 4, section 9, and subject to local approval under paragraph (a), the
city of Marshall may impose the tax on or before July 1, 2013.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 52. CITY
OF PROCTOR; VALIDATION OF PRIOR ACT.
Notwithstanding the time limits in
Minnesota Statutes, section 645.021, the city of Proctor may approve, by
resolution, Laws 2008, chapter 366, article 7, section 13, and Laws 2010,
chapter 389, article 5, sections 1 and 2, and file its approval with the
secretary of state by January 1, 2014. If
approved under this paragraph, actions undertaken by the city pursuant to the
approval of the voters on November 2, 2010, and otherwise in accordance with
those laws are validated.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 53. REPEALER.
(a) Minnesota Statutes 2012, sections
297A.61, subdivision 27; and 297A.68, subdivision 35, are repealed.
(b) Laws 2009, chapter 88, article 4,
section 23, as amended by Laws 2010, chapter 389, article 5, section 4, is
repealed.
EFFECTIVE
DATE. Paragraph (a) is
effective for sales and purchases made after June 30, 2013. Paragraph (b) is effective the day following
final enactment.
ARTICLE 9
ECONOMIC DEVELOPMENT
Section 1. Minnesota Statutes 2012, section 469.071, subdivision 5, is amended to read:
Subd. 5. Exception;
parking facilities. Notwithstanding
section 469.068, the Bloomington port authority need not require competitive
bidding with respect to a structured parking facility or other public
improvements constructed in conjunction with, and directly above or below,
or adjacent and integrally related to, a development and financed with the
proceeds of tax increment or, revenue bonds, or other funds of
the port authority and the city of Bloomington.
EFFECTIVE
DATE. This section is effective
upon compliance of the governing body of the city of Bloomington with the
requirements of Minnesota Statutes, section 645.021, subdivision 3.
Sec. 2. Minnesota Statutes 2012, section 469.169, is amended by adding a subdivision to read:
Subd. 19. Additional
border city allocation; 2013. (a)
In addition to the tax reductions authorized in subdivisions 12 to 18, the
commissioner shall allocate $750,000 for tax reductions to border city
enterprise zones in cities located on the western border of the state. The commissioner shall allocate this amount
among cities on a per capita basis. Allocations
made under this subdivision may be used for tax reductions under section
469.171, or for other offsets of taxes imposed on or remitted by businesses located
in the enterprise zone, but only if the municipality determines that the
granting of the tax reduction or offset is necessary to retain a business
within or attract a business to the zone.
The city alternatively may elect to use any portion of the allocation
under this paragraph for tax reductions under section 469.1732 or 469.1734.
(b) The commissioner shall allocate
$750,000 for tax reductions under section 469.1732 or 469.1734 to cities with
border city enterprise zones located on the western border of the state. The commissioner shall allocate this amount
among the cities on a per capita basis. The
city alternatively may elect to use any portion of the allocation provided in
this paragraph for tax reductions under section 469.171.
EFFECTIVE
DATE. This section is
effective July 1, 2013.
Sec. 3. Minnesota Statutes 2012, section 469.176, subdivision 4c, is amended to read:
Subd. 4c. Economic development districts. (a) Revenue derived from tax increment from an economic development district may not be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities (determined on the basis of square footage) are used for a purpose other than:
(1) the manufacturing or production of tangible personal property, including processing resulting in the change in condition of the property;
(2) warehousing, storage, and distribution of tangible personal property, excluding retail sales;
(3) research and development related to the activities listed in clause (1) or (2);
(4) telemarketing if that activity is the exclusive use of the property;
(5) tourism facilities; or
(6) qualified border retail facilities;
or
(7) space necessary for and related
to the activities listed in clauses (1) to (6) (5).
(b) Notwithstanding the provisions of this subdivision, revenues derived from tax increment from an economic development district may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 square feet of any separately owned commercial facility located within the municipal jurisdiction of a small city, if the revenues derived from increments are spent only to assist the facility directly or for administrative expenses, the assistance is necessary to develop the facility, and all of the increments, except those for administrative expenses, are spent only for activities within the district.
(c) A city is a small city for purposes of this subdivision if the city was a small city in the year in which the request for certification was made and applies for the rest of the duration of the district, regardless of whether the city qualifies or ceases to qualify as a small city.
(d) Notwithstanding the
requirements of paragraph (a) and the finding requirements of section 469.174,
subdivision 12, tax increments from an economic development district may be
used to provide improvements, loans, subsidies, grants, interest rate
subsidies, or assistance in any form to developments consisting of buildings
and ancillary facilities, if all the following conditions are met:
(1) the municipality finds that the
project will create or retain jobs in this state, including construction jobs,
and that construction of the project would not have commenced before July 1,
2012, without the authority providing assistance under the provisions of this
paragraph;
(2) construction of the project begins no
later than July 1, 2012;
(3) the request for certification of the
district is made no later than June 30, 2012; and
(4) for development of housing under this
paragraph, the construction must begin before January 1, 2012.
The provisions of this paragraph may not
be used to assist housing that is developed to qualify under section 469.1761,
subdivision 2 or 3, or similar requirements of other law, if construction of
the project begins later than July 1, 2011.
EFFECTIVE
DATE. This section is
effective for districts for which the request for certification was made after
June 30, 2012.
Sec. 4. Minnesota Statutes 2012, section 469.176, subdivision 4g, is amended to read:
Subd. 4g. General government use prohibited. (a) Tax increments may not be used to circumvent existing levy limit law.
(b) No tax increment from any district may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure.
(c)(1) Tax increments may not be used to
pay for the cost of public improvements, equipment, or other items, if:
(i) the improvements, equipment, or other
items are located outside of the area of the tax increment financing district
from which the increments were collected; and
(ii) the improvements, equipment, or items
that (A) primarily serve a decorative or aesthetic purpose, or (B) serve a
functional purpose, but their cost is increased by more than 100 percent as a
result of the selection of materials, design, or type as compared with more
commonly used materials, designs, or types for similar improvements, equipment,
or items.
(2) The provisions of this paragraph do
not apply to expenditures related to the rehabilitation of historic structures
that are:
(i) individually listed on the National
Register of Historic Places; or
(ii) a contributing element to a historic
district listed on the National Register of Historic Places.
EFFECTIVE
DATE. This section is
effective the day following final enactment for all tax increment financing
districts, regardless of when the request for certification was made, but
applies only to amounts spent after final enactment.
Sec. 5. Minnesota Statutes 2012, section 469.176, subdivision 6, is amended to read:
Subd. 6. Action required. (a) If, after four years from the date of certification of the original net tax capacity of the tax increment financing district pursuant to section 469.177, no demolition, rehabilitation, or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation, or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certify to the county auditor that the activity has commenced, and the county auditor shall certify the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district. The county auditor must enforce the provisions of this subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street.
(b) For districts which were certified on
or after January 1, 2005, and before April 20, 2009, the four-year period under
paragraph (a) is increased to six years deemed to end on December 31,
2016.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to districts certified
on or after January 1, 2005, and before April 20, 2009.
Sec. 6. Minnesota Statutes 2012, section 469.177, subdivision 1a, is amended to read:
Subd. 1a. Original local tax rate. At the time of the initial certification of the original net tax capacity for a tax increment financing district or a subdistrict, the county auditor shall certify the original local tax rate that applies to the district or subdistrict. The original local tax rate is the sum of all the local tax rates, excluding that portion of the school rate attributable to the general education levy under section 126C.13, that apply to a property in the district or subdistrict. The local tax rate to be certified is the rate in effect for the same taxes payable year applicable to the tax capacity values certified as the district's or subdistrict's original tax capacity. The resulting tax capacity rate is the original local tax rate for the life of the district or subdistrict.
EFFECTIVE
DATE. This section is
effective for districts for which the request for certification is made after
April 15, 2013.
Sec. 7. Minnesota Statutes 2012, section 469.177, is amended by adding a subdivision to read:
Subd. 1d. Original
net tax capacity adjustment; homestead market value exclusion. (a) Upon approval by the municipality,
by resolution, the authority may elect to reduce the original net tax capacity
of a qualified district by the amount of the tax capacity attributable to the
market value exclusion under section 273.13, subdivision 35, for taxes payable
in the year preceding the election. The
amount of the reduction may not reduce the original net tax capacity below
zero.
(b) For purposes of this subdivision, a
qualified district means a tax increment financing district that satisfies the
following conditions:
(1) for taxes payable in 2011,
the authority received a homestead market value credit reimbursement under
section 273.1384 for the district of $10,000 or more;
(2) for taxes payable in 2013, the
reduction in captured tax capacity resulting from the market value exclusion
for the district was equal to or greater than 1.75 percent of the district's
captured tax capacity; and
(3) either (i) the authority is permitted
to expend increments on activities under the provisions of section 469.1763,
subdivision 3, or an equivalent provision of special law on July 1, 2013, or
(ii) the district's tax increments received for taxes payable in 2012 exceeded
the amount of debt service payments due during calendar year 2012 on bonds
issued under section 469.178 to which the district's increments are pledged.
The calculation of the amount under clause (2) must
reflect any adjustments to original net tax capacity made under subdivision 1,
paragraphs (d) and (e), for the homestead market value exclusion.
(c) The authority must notify the county
auditor of its election under this section no later than July 1, 2014. Notifications made by July 1, 2013, are
effective beginning for taxes payable in 2014, and notifications made after
July 1, 2013, are effective beginning for taxes payable in 2015.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to all tax increment
financing districts regardless of when the request for certification was made.
Sec. 8. Minnesota Statutes 2012, section 469.177, is amended by adding a subdivision to read:
Subd. 1e. Adjustments;
qualifying districts. (a) For
any tax increment financing district that satisfies the requirements of
paragraph (b), the original net tax capacity must be reduced by the full amount
of the original net tax capacity or $20,000, whichever is less.
(b) A tax increment financing district
qualifies under this subdivision if it satisfies the following conditions:
(1) the district was certified after
January 1, 2011, and before January 1, 2012;
(2) for assessment year 2012, at least 75
percent of the tax capacity of the district is class 4d property; and
(3) for assessment year 2012, the average
estimated market value is over $115,000 per housing unit for the portion of the
property that is class 4d.
(c) An authority or a property owner
within a tax increment financing district must notify the county assessor of a
district that qualifies under this subdivision by July 1, 2013.
(d) This subdivision expires on
December 31, 2021.
EFFECTIVE
DATE. This section is
effective beginning for taxes payable in 2014.
Sec. 9. Minnesota Statutes 2012, section 469.177, subdivision 9, is amended to read:
Subd. 9. Distributions of excess taxes on captured net tax capacity. (a) If the amount of tax paid on captured net tax capacity exceeds the amount of tax increment, the county auditor shall distribute the excess, except increment attributable to the general education levy, to the municipality, county, and school district as follows: each governmental unit's share of the excess equals
(1) the total amount of the excess for the tax increment financing district, multiplied by
(2) a fraction, the numerator of which is the current local tax rate of the governmental unit less the governmental unit's local tax rate for the year the original local tax rate for the district was certified (in no case may this amount be less than zero) and the denominator of which is the sum of the numerators for the municipality, county, and school district.
If the entire increase in the local tax rate is attributable to a taxing district, other than the municipality, county, or school district, then the excess must be distributed to the municipality, county, and school district in proportion to their respective local tax rates.
(b) The amounts distributed shall be deducted in computing the levy limits of the taxing district for the succeeding taxable year.
(c) In the case of distributions to a school district, the county auditor shall report amounts distributed to the commissioner of education in the same manner as provided for excess increments under section 469.176, subdivision 2, and the distribution shall be deducted from the school district's state aid payments and levy limitation according to section 127A.49, subdivision 3.
(d) The amount of taxes attributable to
imposing the general education levy under section 126C.13 must be returned to
the school district within which the tax increment financing district is
located.
EFFECTIVE
DATE. This section is
effective for districts for which the request for certification is made after
April 15, 2013.
Sec. 10. Minnesota Statutes 2012, section 473F.08, is amended by adding a subdivision to read:
Subd. 3c. Mall
of America. (a) When
computing the net tax capacity under section 473F.05, the Hennepin County
auditor shall exclude the captured tax capacity of Tax Increment Financing
Districts No. 1-C and No. 1-G in the city of Bloomington.
(b) Notwithstanding the provisions of
subdivision 2, paragraph (a), the commercial-industrial contribution percentage
for the city of Bloomington is the contribution net tax capacity divided by the
total net tax capacity of commercial-industrial property in the city, excluding
any commercial-industrial property that is captured tax capacity of Tax
Increment Financing Districts No. 1-C and No. 1-G.
(c) The property taxes to be paid on
commercial-industrial tax capacity that is included in the captured tax
capacity of Tax Increment Financing Districts No. 1-C and No. 1-G in
the city of Bloomington must be determined as described in subdivision 6,
except that the portion of the tax that is based on the areawide tax rate is to
be treated as tax increment under section 469.176.
(d) The provisions of this subdivision
take effect only if the clerk of the city of Bloomington certifies to the Hennepin
County auditor that the city has entered into a binding written agreement with
the Metropolitan Council to repair and restore, or to replace, the old Cedar
Avenue bridge for use by bicycle commuters and recreational users.
(e) This subdivision expires on the
earliest of the following dates:
(1) when the tax increment financing
districts have been decertified in 2024 or 2035, as provided by section 22,
subdivision 2 or 4; or
(2) on January 1, 2014, if the city clerk
fails to make the certification provided in paragraph (d) or if the city fails
to file its local approval of section 23 with the secretary of state by
December 31, 2013.
EFFECTIVE
DATE. This section is
effective beginning for property taxes payable in 2014.
Sec. 11. Laws 2008, chapter 366, article 5, section 26, is amended to read:
Sec. 26. BLOOMINGTON
TAX INCREMENT FINANCING; FIVE-YEAR RULE.
(a) The requirements of Minnesota
Statutes, section 469.1763, subdivision 3, that activities must be undertaken
within a five-year period from the date of certification of a tax increment
financing district, are increased to a ten-year 15-year period
for the Port Authority of the City of Bloomington's Tax Increment Financing
District No. 1-I, Bloomington Central Station.
(b) Notwithstanding the provisions of
Minnesota Statutes, section 469.176, or any other law to the contrary, the city
of Bloomington and its port authority may extend the duration limits of the
district for a period through December 31, 2039.
(c) Effective for taxes payable in 2014,
tax increment for the district must be computed using the current local tax
rate, notwithstanding the provisions of Minnesota Statutes, section 469.177,
subdivision 1a.
EFFECTIVE
DATE. Paragraphs (a) and (c)
are effective upon compliance by the governing body of the city of Bloomington
with the requirements of Minnesota Statutes, section 645.021, subdivision 3. Paragraph (b) is effective upon compliance by
the governing bodies of the city of Bloomington, Hennepin County, and
Independent School District No. 271 with the requirements of Minnesota
Statutes, sections 469.1782, subdivision 2, and 645.021, subdivision 3.
Sec. 12. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009, chapter 88, article 5, section 11, is amended to read:
Sec. 34. CITY
OF OAKDALE; ORIGINAL TAX CAPACITY PARCELS DEEMED OCCUPIED. (a) The provisions of this section
apply to redevelopment tax increment financing districts created by the Housing
and Redevelopment Authority in and for the city of Oakdale in the areas
comprised of the parcels with the following parcel identification numbers: (1) 3102921320053; 3102921320054;
3102921320055; 3102921320056; 3102921320057; 3102921320058; 3102921320062;
3102921320063; 3102921320059; 3102921320060; 3102921320061; 3102921330005; and
3102921330004; and (2) 2902921330001 and 2902921330005.
(b) For a district subject to this
section, the Housing and Redevelopment Authority may, when requesting
certification of the original tax capacity of the district under Minnesota Statutes,
section 469.177, elect to have the original tax capacity of the district be
certified as the tax capacity of the land.
(c) The authority to request
certification of a district under this section expires on July 1, 2013.
(a) Parcel numbers 3102921320054,
3102921320055, 3102921320056, 3102921320057, 3102921320061, and 3102921330004
are deemed to meet the requirements of Minnesota Statutes, section 469.174,
subdivision 10, paragraph (d), notwithstanding any contrary provisions of that
paragraph, if the following conditions are met:
(1) a building located on any part of
each of the specified parcels was demolished after the Housing and
Redevelopment Authority for the city of Oakdale adopted a resolution under
Minnesota Statutes, section 469.174, subdivision 10, paragraph (d), clause (3);
(2) the building was removed either by
the authority, by a developer under a development agreement with the Housing
and Redevelopment Authority for the city of Oakdale, or by the owner of the
property without entering into a development agreement with the Housing and
Redevelopment Authority for the city of Oakdale; and
(3)
the request for certification of the parcel as part of a district is filed with
the county auditor by December 31, 2017.
(b) The provisions of this
section allow an election by the Housing and Redevelopment Authority for the
city of Oakdale for the parcels deemed occupied under paragraph (a),
notwithstanding the provisions of Minnesota Statutes, sections 469.174,
subdivision 10, paragraph (d), and 469.177, subdivision 1, paragraph (f).
(c) The city may elect, in the tax
increment financing plan, to collect increment from a redevelopment district
created under the provisions of this section for an additional ten years beyond
the limit in Minnesota Statutes, section 469.176, subdivision 1b.
EFFECTIVE
DATE. This section is
effective upon compliance by the governing body of the city of Oakdale with the
requirements of Minnesota Statutes, section 645.021, subdivision 3, except that
the provisions of paragraph (c) are effective only upon compliance with
Minnesota Statutes, section 469.1782, subdivision 2, by Ramsey County and
Independent School District No. 622.
Sec. 13. Laws 2010, chapter 216, section 55, is amended to read:
Sec. 55. OAKDALE;
TAX INCREMENT FINANCING DISTRICT.
Subdivision 1. Duration
of district. Notwithstanding the
provisions of Minnesota Statutes, section 469.176, subdivision 1b, the city of
Oakdale may collect tax increments from Tax Increment Financing District No. 6
(Bergen Plaza) through December 31, 2024 2040, subject to the
conditions described in subdivision 2.
Subd. 2. Conditions for extension. (a) Subdivision 1 applies only if the following conditions are met:
(1) by July 1, 2011, the city of Oakdale has
entered into a development agreement with a private developer for development
or redevelopment of all or a substantial part of the area parcels
described in clause (2); and
(2) by November 1, 2011, the city of Oakdale or a private developer commences construction of streets, traffic improvements, water, sewer, or related infrastructure that serves one or both of the parcels with the following parcel identification numbers: 2902921330001 and 2902921330005. For the purposes of this section, construction commences upon grading or other visible improvements that are part of the subject infrastructure.
(b) All tax increments received by the city
of Oakdale under subdivision 1 after December 31, 2016, must be used only to
pay costs that are both:
(1)
related to redevelopment of the parcels specified in this subdivision or
parcel numbers 3102921320053, 3102921320054, 3102921320055, 3102921320056,
3102921320057, 3102921320058, 3102921320059, 3102921320060, 3102921320061,
3102921320062, 3102921320063, 3102921330004, and 3102921330005, including,
without limitation, any of the infrastructure referenced in this
subdivision that serves any of the referenced parcels; and
(2) otherwise eligible under law to be paid
with increments from the specified tax increment financing district, except
the authority under this clause does not apply to increments collected after
the conclusion of the duration limit under general law.
EFFECTIVE
DATE. This section is
effective upon compliance by the governing body of the city of Oakdale with the
requirements of Minnesota Statutes, section 645.021, subdivision 3, except that
the amendments to subdivision 1 are effective only upon compliance with
Minnesota Statutes, section 469.1782, subdivision 2, by Ramsey County and
Independent School District No. 622.
Sec. 14. ST. CLOUD;
TAX INCREMENT FINANCING.
The request for certification of Tax
Increment Financing District No. 2, commonly referred to as the Norwest
District, in the city of St. Cloud is deemed to have been made on or after
August 1, 1979, and before July 1, 1982.
Revenues derived from tax increment for that district must be treated
for purposes of any law as revenue of a tax increment financing district for
which the request for certification was made during that time period.
EFFECTIVE
DATE. This section is
effective upon approval by the governing body of the city of St. Cloud and
compliance with Minnesota Statutes, section 645.021, subdivision 3.
Sec. 15. CITY
OF GLENCOE; TAX INCREMENT FINANCING DISTRICT EXTENSION.
Subdivision 1. Duration
of district. Notwithstanding
the provisions of Minnesota Statutes, section 469.176, subdivision 1b,
paragraph (a), clause (4), or any other law to the contrary, the city of
Glencoe may collect tax increments from Tax
Increment Financing District No. 4 (McLeod County District No. 007)
through December 31, 2023, subject to the conditions in subdivision 2.
Subd. 2. Exclusive
use of revenues. (a) All tax
increments derived from Tax Increment Financing District No. 4 (McLeod
County District No. 007) that are collected after December 31, 2013, must
be used only to pay debt service on or to defease bonds that were outstanding
on January 1, 2013 and that were issued to finance improvements serving:
(1) Tax Increment Financing District No. 14
(McLeod County District No. 033) (Downtown);
(2) Tax Increment Financing District No. 15
(McLeod County District No. 035) (Industrial Park); and
(3) benefited properties as further
described in proceedings related to the city's series 2007A bonds, dated September
1, 2007, and any bonds issued to refund those bonds.
(b) Increments may also be used to pay
debt service on or to defease bonds issued to refund the bonds described in
paragraph (a), if the refunding bonds do not increase the present value of debt
service due on the refunded bonds when the refunding is closed.
(c) When the bonds described in
paragraphs (a) and (b) have been paid or defeased, the district must be
decertified and any remaining increment returned to the city, county, and
school district as provided in Minnesota Statutes, section 469.176, subdivision
2, paragraph (c), clause (4).
EFFECTIVE
DATE. This section is
effective upon compliance by the governing bodies of the city of Glencoe,
McLeod County, and Independent School District No. 2859 with the
requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and
645.021, subdivision 3.
Sec. 16. CITY
OF ELY; TAX INCREMENT FINANCING.
Subdivision 1. Extension
of district. Notwithstanding
Minnesota Statutes, section 469.176, subdivision 1b, or any other law to the
contrary, the city of Ely may collect tax increment from Tax Increment
Financing District No. 1 through December 31, 2021. Increments from the district may only be used
to pay binding obligations and administrative expenses.
Subd. 2. Binding
obligations. For purposes of
this section, "binding obligations" means the binding contractual or
debt obligation of Tax Increment Financing District No. 1 entered into
before January 1, 2013.
Subd. 3. Expenditures
outside district. Notwithstanding
Minnesota Statutes, section 469.1763, subdivision 2, the governing body of the
city of Ely may elect to transfer revenues derived from increments from its Tax
Increment Financing District No. 3 to the tax increment account established
under Minnesota Statutes, section 469.177, subdivision 5, for Tax Increment
Financing District No. 1. The
amount that may be transferred is limited to the lesser of:
(1) $168,000; or
(2) the total amount due on binding
obligations and outstanding on that date, less the amount of increment
collected by Tax Increment Financing District No. 1 after December 31,
2012, and administrative expenses of Tax Increment Financing District No. 1
incurred after December 31, 2012.
EFFECTIVE DATE. This section is effective upon approval by the governing bodies of the city of Ely, St. Louis County, and Independent School District No. 696 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, subdivision 3.
Sec. 17. DAKOTA
COUNTY COMMUNITY DEVELOPMENT AGENCY; TAX INCREMENT FINANCING DISTRICT.
Subdivision 1. Authorization. Notwithstanding the provisions of any
other law, the Dakota County Community Development Agency may establish a
redevelopment tax increment financing district comprised of the properties that
(1) were included in the CDA 10 Robert Street and Smith Avenue district in the
city of West St. Paul, and (2) were not decertified before July 1, 2012. The district created under this section
terminates no later than December 31, 2023.
Subd. 2. Special
rules. The requirements for
qualifying a redevelopment district under Minnesota Statutes, section 469.174,
subdivision 10, do not apply to parcels located within the district. Minnesota Statutes, section 469.176,
subdivision 4j, do not apply to the district.
The original tax capacity of the district is $93,239.
Subd. 3. Authorized
expenditures. Tax increment
from the district may be expended to pay for any eligible activities authorized
by Minnesota Statutes, chapter 469, within the redevelopment area that includes
the district provided that the boundaries of the redevelopment area may not be
expanded to add new area after April 1, 2013.
All such expenditures are deemed to be activities within the district
under Minnesota Statutes, section 469.1763, subdivisions 2 and 4.
Subd. 4. Adjusted
net tax capacity. The
captured tax capacity of the district must be included in the adjusted net tax
capacity of the city, county, and school district for the purposes of
determining local government aid, education aid, and county program aid. The county auditor shall report to the
commissioner of revenue the amount of the captured tax capacity for the
district at the time the assessment abstracts are filed.
EFFECTIVE
DATE. This section is
effective upon compliance by the governing body of the Dakota County Community
Development Agency with the requirements of Minnesota Statutes, section
645.021, subdivision 3.
Sec. 18. CITY
OF APPLE VALLEY; TAX INCREMENT FINANCING DISTRICT.
Subdivision
1. Definitions. (a) For the purposes of this section,
the following terms have the meanings given to them.
(b) "City" means the city of
Apple Valley.
(c) "Project area" means the following parcels: parcel numbers 01-03500-25-010, 01-03500-03-011, 01-03500-02-010, 01-03500-52-011, 01-03500-78-011, 01-03500-77-014, 01-03500-75-010, 01-03400-05-050,
(d) "Soil deficiency
district" means a type of tax increment financing district consisting of a
portion of the project area in which the city finds by resolution that the
following conditions exist:
(1) unusual terrain or soil
deficiencies that occurred over 70 percent of the acreage in the district
require substantial filling, grading, or other physical preparation for use; and
(2) the estimated cost of the physical
preparation under clause (1), but excluding costs directly related to roads as
defined in Minnesota Statutes, section 160.01, and local improvements as
described in Minnesota Statutes, sections 429.021, subdivision 1, other than
clauses (8) to (10), and 430.01, exceeds the fair market value of the land
before completion of the preparation.
Subd. 2. Special
rules. (a) If the city
elects, upon the adoption of the tax increment financing plan for a district,
the rules under this section apply to a redevelopment district, renewal and
renovation district, soil condition district, or soil deficiency district
established by the city or a development authority of the city in the project
area. The city, or a development
authority acting on its behalf, may establish one or more soils deficiency
districts within the project area.
(b) Prior to or upon the adoption of
the first tax increment plan subject to the special rules under this
subdivision, the city must find by resolution that parcels consisting of at
least 70 percent of the acreage of the project area, excluding street and
railroad rights-of-way, are characterized by one or more of the following
conditions:
(1) peat or other soils with
geotechnical deficiencies that impair development of commercial buildings or
infrastructure;
(2) soils or terrain that requires
substantial filling in order to permit the development of commercial buildings
or infrastructure;
(3) landfills, dumps, or similar
deposits of municipal or private waste;
(4) quarries or similar resource
extraction sites;
(5) floodway; and
(6) substandard buildings, within the
meaning of Minnesota Statutes, section 469.174, subdivision 10.
(c) For the purposes of paragraph (b),
clauses (1) to (5), a parcel is characterized by the relevant condition if at
least 60 percent of the area of the parcel contains the relevant condition. For the purposes of paragraph (b), clause
(6), a parcel is characterized by substandard buildings if substandard
buildings occupy at least 30 percent of the area of the parcel.
(d) The five-year rule under Minnesota
Statutes, section 469.1763, subdivision 3, is extended to ten years for any
district, and the period under Minnesota Statutes, section 469.1763,
subdivision 4, is extended to 11 years.
(e) Notwithstanding any provision to
the contrary in Minnesota Statutes, section 469.1763, subdivision 2, paragraph
(a), not more than 80 percent of the total revenue derived from tax increments
paid by properties in any district, measured over the life of the district, may
be expended on activities outside the district but within the project area.
(f) For a soil deficiency
district:
(1) increments may be collected through
20 years after the receipt by the authority of the first increment from the
district; and
(2) except as otherwise provided in
this subdivision, increments may be used only to:
(i) acquire parcels on which the
improvements described in item (ii) will occur;
(ii) pay for the cost of correcting the
unusual terrain or soil deficiencies and the additional cost of installing
public improvements directly caused by the deficiencies; and
(iii) pay for the administrative
expenses of the authority allocable to the district.
(g) The authority to approve tax
increment financing plans to establish tax increment financing districts under
this section expires December 31, 2022.
EFFECTIVE
DATE. This section is
effective upon compliance with Minnesota Statutes, section 645.021, subdivision
3.
Sec. 19. CITY
OF APPLE VALLEY; USE OF TAX INCREMENT FINANCING.
Subdivision 1. Developments
consisting of building and ancillary facilities. Notwithstanding Minnesota Statutes,
section 469.176, subdivisions 4c and 4m, the city of Apple Valley may use tax
increment financing to provide improvements, loans, subsidies, grants, interest
rate subsidies, or assistance in any form to developments consisting of
buildings and ancillary facilities, if all of the following conditions are met:
(1)
the city of Apple Valley finds that the project will create or retain jobs in
Minnesota, including construction jobs;
(2) the city of Apple Valley finds that
construction of the project will not commence before July 1, 2014, without the
use of tax increment financing;
(3) the request for certification of the
district is made no later than June 30, 2014;
(4) construction of the project begins no
later than July 1, 2014; and
(5) for development of housing,
construction of the project begins no later than December 31, 2013.
Subd. 2. Extension
of authority to spend tax increments.
Notwithstanding the time limits in Minnesota Statutes, section
469.176, subdivision 4m, the city of Apple Valley has the authority to spend
tax increments under Minnesota Statutes, section 469.176, subdivision 4m, until
December 31, 2014.
EFFECTIVE
DATE. This section is
effective upon approval by the governing body of the city of Apple Valley and
timely compliance with Minnesota Statutes, section 645.021, subdivision 3.
Sec. 20. CITY
OF MINNEAPOLIS; STREETCAR FINANCING.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given them.
(b) "City" means the city of
Minneapolis.
(c) "County" means
Hennepin County.
(d) "District" means the areas
certified by the city under subdivision 2 for collection of value capture
taxes.
(e) "Project area" means the
area including one city block on either side of a streetcar line designated by
the city to serve the downtown and adjacent neighborhoods of the city.
Subd. 2. Authority
to establish district. (a)
The governing body of the city may, by resolution, establish a value capture
district consisting of some or all of the taxable parcels located within one or
more of the following areas of the city, as described in the resolution:
(1) the area bounded by Nicollet Avenue
on the west, 16th Street East on the south, First Avenue South on the east, and
14th Street East on the north;
(2) the area bounded by Spruce Place on
the west, 14th Street West on the south, LaSalle Avenue on the east, and Grant
Street West on the north;
(3) the area bounded by Nicollet Avenue
or Mall on the west, Fifth Street South on the south, Marquette Avenue on the
east, and Fourth Street South on the north;
(4) the area bounded by First Avenue
North on the west, Washington Avenue on the south, Hennepin Avenue on the east,
and Second Street North on the north; and
(5) the area bounded by Fifth Street
North East on the west, Central Avenue North East on the southeast, Sixth
Street North East on the east, Hennepin Avenue East on the south, and First
Avenue North East on the north.
(b) The city may establish the district
and the project area only after holding a public hearing on its proposed
creation after publishing notice of the hearing and the proposal at least once
not less than ten days nor more than 30 days before the date of the hearing.
Subd. 3. Calculation
of value capture district; administrative provisions. (a) If the city establishes a value
capture district under subdivision 2, the city shall request the county auditor
to certify the district for calculation of the district's tax revenues.
(b) For purposes of calculating the tax
revenues of the district, the county auditor shall treat the district as if it
were a request for certification of a tax increment financing district under
the provisions of Minnesota Statutes, section 469.177, subdivision 1, and shall
calculate the tax revenues of the district for each year of its duration under
subdivision 5 as equaling the amount of tax increment that would be computed by
applying the provisions of Minnesota Statutes, section 469.177, subdivisions 1,
2, and 3, to determine captured tax capacity and multiplying by the current tax
rate, excluding the state general tax rate.
The city shall provide the county auditor with the necessary information
to certify the district, including the option for calculating revenues derived
from the areawide tax rate under Minnesota Statutes, chapter 473F.
(c) The county auditor shall pay to the
city at the same times provided for settlement of taxes and payment of tax
increments the tax revenues of the district.
The city must use the tax revenues as provided under subdivision 4.
Subd. 4. Permitted
uses of district tax revenues. (a)
In addition to paying for reasonable administrative costs of the district, the
city may spend tax revenues of the district for property acquisition,
improvements, and equipment to be used for operations within the project area,
along with related costs, for:
(1) planning, design, and engineering
services related to the construction of the streetcar line;
(2) acquiring property for,
constructing, and installing a streetcar line;
(3) acquiring and maintaining equipment
and rolling stock and related facilities, such as maintenance facilities, which
need not be located in the project area;
(4) acquiring, constructing, or improving
transit stations; and
(5) acquiring or improving public space,
including the construction and installation of improvements to streets and
sidewalks, decorative lighting and surfaces, and plantings related to the
streetcar line.
(b) The city may issue bonds or other
obligations under Minnesota Statutes, chapter 475, without an election, to fund
acquisition or improvement of property of a capital nature authorized by this
section, including any costs of issuance.
The city may also issue bonds or other obligations to refund those bonds
or obligations. Payment of principal and
interest on the bonds or other obligations issued under this paragraph is a
permitted use of the district's tax revenues.
(c) Tax revenues of the district may not
be used for the operation of the streetcar line.
Subd. 5. Duration
of the district. A district
established under this section is limited to the lesser of (1) 25 years of tax revenues,
or (2) the time necessary to collect tax revenues equal to the amount of the
capital costs permitted under subdivision 4 or the amount needed to pay or
defease bonds or other obligations issued under subdivision 4, whichever is
later.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 21. CITY
OF MAPLEWOOD; TAX INCREMENT FINANCING DISTRICT; SPECIAL RULES.
(a) If the city of Maplewood elects, upon
the adoption of a tax increment financing plan for a district, the rules under
this section apply to one or more redevelopment tax increment financing
districts established by the city or the economic development authority of the
city. The area within which the
redevelopment tax increment districts may be created is parcel 362922240002
(the "parcel") or any replatted parcels constituting a part of the
parcel and the adjacent rights-of-way. For
purposes of this section, the parcel is the "3M Renovation and Retention
Project Area" or "project area."
(b) The requirements for qualifying
redevelopment tax increment districts under Minnesota Statutes, section
469.174, subdivision 10, do not apply to the parcel, which is deemed eligible
for inclusion in a redevelopment tax increment district.
(c) The 90 percent rule under Minnesota
Statutes, section 469.176, subdivision 4j, does not apply to the parcel.
(d) The expenditures outside district rule
under Minnesota Statutes, section 469.1763, subdivision 2, does not apply; the
five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years; and expenditures must only be made within the project
area.
(e) If, after one year from the date of
certification of the original net tax capacity of the tax increment district,
no demolition, rehabilitation, or renovation of property has been commenced on
a parcel located within the tax increment district, no additional tax increment
may be taken from that parcel, and the original net tax capacity of the parcel
shall be excluded from the original net tax capacity of the tax increment
district. If 3M Company subsequently
commences demolition, rehabilitation, or renovation, the authority shall
certify to the county auditor that the activity has commenced, and the county
auditor shall certify the net tax capacity thereof as most recently certified
by the commissioner of revenue and add it to the original net tax capacity of
the tax increment district. The authority must submit to the county auditor
evidence that the required activity has taken place for each parcel in the
district.
(f) The authority to approve a
tax increment financing plan and to establish a tax increment financing
district under this section expires December 31, 2018.
EFFECTIVE
DATE. This section is
effective upon approval by the governing body of the city of Maplewood and upon
compliance with Minnesota Statutes, section 645.021, subdivision 3.
Sec. 22. CITY
OF BLOOMINGTON; TAX INCREMENT FINANCING.
Subdivision 1. Addition of property to Tax Increment Financing District No. 1-G. (a) Notwithstanding the provisions of Minnesota Statutes, section 469.175, subdivision 4, or any other law to the contrary, the governing bodies of the Port Authority of the city of Bloomington and the city of Bloomington may elect to eliminate the real property north of the existing building line on Lot 1, Block 1, Mall of America 7th Addition, exclusive of Lots 2 and 3 from Tax Increment Financing District No. 1-C within Industrial Development District No. 1 Airport South in the city of Bloomington, Minnesota, and expand the boundaries of Tax Increment Financing District No. 1-G to include that property.
(b) If
the city elects to transfer parcels under this authority, the county auditor
shall transfer the original tax capacity of the affected parcels from Tax
Increment Financing District No. 1-C to Tax Increment Financing District
No. 1-G.
Subd. 2. Authority
to extend duration limit; computation of increment. (a) Notwithstanding Minnesota
Statutes, section 469.176, or Laws 1996, chapter 464, article 1, section 8, or
any other law to the contrary, the city of Bloomington and its port authority
may extend the duration limits of Tax Increment Financing Districts No. 1-C
and No. 1-G through December 31, 2034.
(b) Effective for property taxes payable
in 2017 through 2034, the captured tax capacity of Tax Increment Financing
District No. 1-C must be included in computing the tax rates of each local
taxing district and the tax increment equals only the amount of tax computed
under Minnesota Statutes, section 473F.08, subdivision 3c, paragraph (c).
(c) Effective for property taxes payable
in 2019 through 2034, the captured tax capacity of Tax Increment Financing
District No. 1-G must be included in computing the tax rates of each local
taxing district and the tax increment for the district equals only the amount
of tax computed under Minnesota Statutes, section 473F.08, subdivision 3c,
paragraph (c).
Subd. 3. Treatment
of increment. Increments
received under the provisions of subdivision 2, paragraph (b) or (c), and
Minnesota Statutes, section 473F.08, subdivision 3c, are deemed to be tax
increments of Tax Increment Financing District No. 1-G, notwithstanding
any law to the contrary, and without regard to whether they are attributable to
captured tax capacity of Tax Increment Financing District No. 1-C.
Subd. 4. Condition. The authority under this section
expires and Tax Increment Financing Districts No. 1-C and No. 1-G
must be decertified for taxes payable in 2024 and thereafter, if the total
estimated market value of improvements for parcels located in Tax Increment
Financing District No. 1-G, as modified, do not exceed $100,000,000 by
taxes payable in 2023.
EFFECTIVE
DATE. This section is
effective upon compliance of the governing body of the city of Bloomington with
the requirements of Minnesota Statutes, section 645.021, subdivision 3, but
only if the city enters into a binding written agreement with the Metropolitan
Council to repair and restore, or to replace, the old Cedar Avenue bridge for
use by bicycle commuters and recreational users. This section is effective without approval of
the county and school district under Minnesota Statutes, section 469.1782, subdivision
2. The legislature finds that the county
and school district are not "affected local government units" within
the meaning of Minnesota Statutes, section 469.1782, because the provision
allowing extended collection of increment by the tax increment financing
districts does not affect their tax bases and tax rates dissimilarly to other
counties and school districts in the metropolitan area.
Sec. 23. CITY
OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE.
(a) Notwithstanding any law to the
contrary, the city of Bloomington shall transfer from the tax increment
financing accounts for its Tax Increment Financing District No. 1-C and
Tax Increment Financing District No. 1-G an amount equal to the tax
increment for each district that is computed under the provisions of Minnesota
Statutes, section 473F.08, subdivision 3c, for taxes payable in 2014 to an
account or fund established for the repair, restoration,
or replacement of the Old Cedar Avenue bridge for use by bicycle commuters and
recreational users. The city is
authorized to and must use the transferred funds to complete the repair,
renovation, or replacement of the bridge.
(b) No signs, plaques, or markers
acknowledging or crediting donations for, sponsorships of, or naming rights may
be posted on or in the vicinity of the Old Cedar Avenue bridge.
EFFECTIVE
DATE. This section is
effective upon compliance by the city of Bloomington with the requirements of
Minnesota Statutes, section 645.021, subdivision 3.
ARTICLE 10
DESTINATION MEDICAL CENTER
Section 1. Minnesota Statutes 2012, section 13.792, is amended to read:
13.792
PRIVATE DONOR GIFT DATA.
The following data maintained by the Minnesota Zoological Garden, the University of Minnesota, the Minnesota State Colleges and Universities, the Regional Parks Foundation of the Twin Cities, State Services for the Blind, the Destination Medical Center Corporation established pursuant to section 469.41, and any related entity subject to chapter 13 are classified as private or nonpublic:
(1) research information about prospects and donors gathered to aid in determining appropriateness of solicitation and level of gift request;
(2) specific data in prospect lists that would identify prospects to be solicited, dollar amounts to be requested, and name of solicitor;
(3) portions of solicitation letters and proposals that identify the prospect being solicited and the dollar amount being requested;
(4) letters, pledge cards, and other responses received from donors regarding prospective gifts in response to solicitations;
(5) portions of thank-you letters and other gift acknowledgment communications that would identify the name of the donor and the specific amount of the gift, pledge, or pledge payment;
(6) donor financial or estate planning information, or portions of memoranda, letters, or other documents commenting on any donor's financial circumstances; and
(7)
data detailing dates of gifts, payment schedule of gifts, form of gifts, and
specific gift amounts made by donors.
Names of donors and gift ranges are public data.
Sec. 2. Minnesota Statutes 2012, section 297A.71, is amended by adding a subdivision to read:
Subd. 48. Construction
materials, public infrastructure related to the destination medical center. Materials and supplies used in, and
equipment incorporated into, the construction and improvement of publicly owned
buildings and infrastructure included in the development plan adopted under
section 469.43, and financed with public funds, are exempt.
EFFECTIVE
DATE. This section is effective
for sales and purchases made after June 30, 2015, and before July 1, 2049.
Sec. 3. [469.40]
DEFINITIONS.
Subdivision 1. Application. For the purposes of sections 469.40 to
469.47, the terms defined in this section have the meanings given them.
Subd. 2. City. "City" means the city of
Rochester.
Subd. 3. County. "County" means Olmsted
County.
Subd. 4. Destination
Medical Center Corporation, corporation, DMCC. "Destination Medical Center
Corporation," "corporation," or "DMCC" means the nonprofit
corporation created by the city as provided in section 469.41, and organized
under chapter 317A.
Subd. 5. Destination
Medical Center Development District.
"Destination medical center development district" or
"development district" means a geographic area in the city identified
in the DMCC development plan in which public infrastructure projects are
implemented.
Subd. 6. Development
plan. "Development
plan" means the plan adopted by the DMCC under section 469.43.
Subd. 7. Financial
interest. "Financial
interest" means a person's direct or indirect ownership or investment
interest or compensation arrangement, whether through business, investment, or
family, including spouse, children and stepchildren, and other relatives living
with the person, as follows:
(1) ownership or investment interest in
the development, acquisition, or construction of a project in the development
district;
(2) compensation arrangement with
respect to the development, acquisition, or construction of a project in the
development district; or
(3) potential ownership or investment
interest in, or compensation arrangement with respect to, the development,
acquisition, or construction of a project in the development district.
Subd. 8. Medical
business entity. "Medical
business entity" means a medical business entity with its principal place
of business in the city that, as of the effective date of this section,
together with all business entities of which it is the sole member or sole
shareholder, collectively employs more than 30,000 persons in the state.
Subd. 9. Nonprofit
economic development agency, agency.
"Nonprofit economic development agency" or
"agency" means the nonprofit agency required under section 469.43 to
provide experience and expertise to the DMCC for purposes of developing and
marketing the destination medical center.
Subd. 10. Project. "Project" means a project to
implement the development plan, whether public or private.
Subd. 11. Public
infrastructure project. (a)
"Public infrastructure project" means a project financed in part or
in whole with public money in order to support the medical business entity's
development plans, as identified in the DMCC development plan. A public infrastructure project may:
(1) acquire real property and other assets
associated with the real property;
(2) demolish, repair, or rehabilitate
buildings;
(3) remediate land and buildings as
required to prepare the property for acquisition or development;
(4) install, construct, or reconstruct
elements of public infrastructure required to support the overall development
of the destination medical center development district including, but not
limited to, streets, roadways, utilities systems and related facilities,
utility relocations and replacements, network and communication systems,
streetscape improvements, drainage systems, sewer and water systems, subgrade
structures and associated improvements, landscaping, façade construction and
restoration, wayfinding and signage, and other components of community infrastructure;
(5) acquire, construct or reconstruct,
and equip parking facilities and other facilities to encourage intermodal
transportation and public transit;
(6) install, construct or reconstruct,
furnish, and equip parks, cultural, and recreational facilities, facilities to
promote tourism and hospitality, conferencing and conventions, broadcast and
related multimedia infrastructure;
(7) make related site improvements
including, without limitation, excavation, earth retention, soil stabilization
and correction, and site improvements to support the destination medical center
development district;
(8) prepare land for private
development and to sell or lease land;
(9) costs of providing relocation
benefits to occupants of acquired properties; and
(10) construct and equip all or a
portion of one or more suitable structures on land owned by the city for sale
or lease to private development; provided, however, that the portion of any
structure directly financed by the city as a public infrastructure project must
not be sold or leased to a medical business entity.
(b) A public infrastructure project is
not a business subsidy under section 116J.993.
Subd. 12. Year. "Year" means a calendar
year, except where otherwise provided.
Sec. 4. [469.41]
DESTINATION MEDICAL CENTER CORPORATION ESTABLISHED.
Subdivision 1. DMCC
created. The city must
establish a destination medical center corporation as a nonprofit corporation
under chapter 317A to provide the city with expertise in preparing and
implementing the development plan to establish the city as a destination
medical center. Except as provided in
sections 469.40 to 469.47, the nonprofit corporation is not subject to laws
governing the city.
Subd. 2. Membership;
quorum. (a) The corporation's
governing board consists of eight members appointed, as follows:
(1) the mayor of the city, or the
mayor's designee, subject to approval by the city council;
(2) the city council president,
or the city council president's designee, subject to approval by the city council;
(3) the chair or member of the county
board, appointed by the county board;
(4) a representative of the medical
business entity appointed by and serving at the pleasure of the medical
business entity; and
(5) four members appointed by the governor,
subject to confirmation by the senate.
(b) Appointing authorities must make their respective appointments as soon as practicable after the effective date of this section, but no later than 60 days after enactment of this section.
(c) A quorum of the board is six
members.
Subd. 3. Terms. (a) A member first appointed after the
effective date of this section under subdivision 2, paragraph (a), clauses (1),
(2), and (3), serves for a term coterminous with the term of the elected
office, but may be reappointed.
(b) Two members first appointed after the
effective date of this section under subdivision 2, paragraph (a), clause (5),
serve from the date of appointment until the first Tuesday after the first
Monday in January 2017, and two members first appointed after the effective
date of this section under subdivision 2, paragraph (a), clause (5), serve from
the date of appointment until the first Tuesday after the first Monday in
January 2020. Thereafter, members
appointed by the governor serve six-year terms.
Subd. 4. Vacancies. A vacancy occurs as provided in
section 351.02 or upon a member's removal under subdivision 7. A vacancy on the board must be filled by the
appointing authority for the balance of the term in the same manner as a regular
appointment.
Subd. 5. Chair. The board must elect a chair from among the governor's appointees. The governor must convene the first meeting within 30 days of completion of all appointments to the board.
Subd. 6. Pay. Members must be compensated as
provided in section 15.0575, subdivision 3.
For the purposes of this subdivision,
the member representing the medical business entity shall be treated as if an
employee of a political subdivision. All
money paid for compensation or reimbursement must be paid out of the
corporation's budget.
Subd. 7. Removal
for cause. A member may be
removed by the board for inefficiency, neglect of duty, or misconduct in office. A member may be removed only after a hearing
of the board. A copy of the charges must
be given to the board member at least ten days before the hearing. The board member must be given an opportunity
to be heard in person or by counsel at the hearing. When written charges have been submitted
against a board member, the board may temporarily suspend the member. If the board finds that those charges have
not been substantiated, the board member must be immediately reinstated. If a board member is removed, a record of the
proceedings, together with the charges and findings, must be filed with the
office of the appointing authority.
Subd. 8. Open
meeting law; data practices. Meetings
of the corporation and any committee or subcommittee of the corporation are
subject to the open meeting law in chapter 13D.
The corporation is a government entity for purposes of chapter 13.
Subd. 9. Conflicts
of interest. Except for the
member appointed by the medical business entity, a member must not be a
director, officer, or employee of the medical business entity. A member must not participate in or vote on a
decision of the corporation relating to any project authorized by or under
consideration by the corporation in which the member has either a direct or
indirect financial interest. No member
may serve as a lobbyist, as defined under section 10A.01, subdivision 21.
Subd. 10. Public
official. A member of the
corporation is a public official, as defined in section 10A.01, subdivision 35.
Subd. 11. Powers. The corporation may exercise any other
powers that are granted by its articles of incorporation and bylaws to the
extent that those powers are not inconsistent with the provisions of sections
469.40 to 469.47.
Subd. 12. Contract
for services. (a) The
corporation may contract for the services of the nonprofit economic development
agency, financial advisors, other consultants, agents, public accountants,
legal counsel, and other persons needed to perform its duties and exercise its
powers. The corporation may contract
with the city or county to provide administrative, clerical, and accounting
services to the corporation.
(b) The corporation must contract with
the nonprofit agency for the services enumerated in section 469.43, subdivision
6, paragraph (a). The requirement to
contract with the nonprofit agency does not limit the corporation's authority
to contract with other providers for the services.
Subd. 13. DMCC approval of projects. A project must be approved by the corporation before it is proposed to the city. The corporation must review the project proposed for consistency with the adopted development plan.
Subd. 14. Dissolution. The city must provide for the terms
for dissolution of the corporation in the articles of incorporation.
Sec. 5. [469.42]
OFFICERS; DUTIES; ORGANIZATIONAL MATTERS.
Subdivision 1. Bylaws,
rules, seal. The corporation
may adopt bylaws and rules of procedure and may adopt an official seal.
Subd. 2. Officers. The corporation must annually elect a
treasurer. The chair must appoint a
secretary and assistant treasurer. The
secretary and assistant treasurer need not, but may, be members of the board.
Subd. 3. Duties
and powers. The officers have
the usual duties and powers of their offices.
They may be given other duties and powers by the corporation. The corporation must establish and maintain a
Web site.
Subd. 4. Treasurer's
duties. The treasurer:
(1) must receive and is responsible for
corporation money;
(2) is responsible for the acts of the
assistant treasurer;
(3) must disburse corporation money by
check or electronic procedures;
(4) must keep an account of the source
of all receipts, and of the nature, purpose, and authority of all
disbursements; and
(5) must file the corporation's
detailed financial statement with its secretary at least once a year at times
set by the authority.
Subd. 5. Secretary. The secretary must perform duties as
required by the board.
Subd. 6. Assistant
treasurer. The assistant
treasurer has the powers and duties of the treasurer if the treasurer is absent
or disabled.
Sec. 6. [469.43]
DEVELOPMENT PLAN.
Subdivision 1. Development
plan; adoption by DMCC; notice; findings.
(a) The corporation, working with the city and the nonprofit
economic development agency, must prepare and adopt a development plan. The corporation must hold a public hearing
before adopting a development plan. At
least 60 days before the hearing, the corporation must make copies of the
proposed plan available to the public at the corporation and city offices
during normal business hours, on the corporation's and city's Web site, and as
otherwise determined appropriate by the corporation. At least ten days before the hearing, the
corporation must publish notice of the hearing in the official newspaper of the
city. The development plan may not be
adopted, unless the corporation finds, by resolution, that:
(1) the plan provides an outline for
the development of the city as a destination medical center, and the plan is
sufficiently complete, including the identification of planned and anticipated
projects, to indicate its relationship to definite state and local objectives;
(2) the proposed development affords
maximum opportunity, consistent with the needs of the city, county, and state,
for the development of the city by private enterprise as a destination medical
center;
(3) the proposed development conforms
to the general plan for the development of the city and is consistent with the
city comprehensive plan;
(4) the plan includes:
(i) strategic planning consistent with
a destination medical center in the core areas of commercial research and
technology, learning environment, hospitality and convention, sports and
recreation, livable communities, including mixed-use urban development and
neighborhood residential development, retail/dining/entertainment, and health and
wellness;
(ii) estimates of short- and long-range
fiscal and economic impacts;
(iii) a framework to identify and
prioritize short- and long-term public investment and public infrastructure
project development and to facilitate private investment and development,
including the criteria and process for evaluating and underwriting development
proposals;
(iv) land use planning;
(v) transportation and transit
planning;
(vi) operational planning required to
support the medical center development district; and
(vii) ongoing market research plans;
and
(5) the city has approved the plan.
(b) The identification of planned and
anticipated projects under paragraph (a), clause (1), must give priority to
projects that will pay wages at least equal to the basic cost of living wage as
calculated by the commissioner of employment and economic development for the
county in which the project is located. The
calculation of the basic cost of living wage must be done as provided for under
section 116J.013, if enacted by the 2013 legislature.
Subd. 2. Development
plan approval by city. Section
15.99 does not apply to review and approval of the development plan. The city shall act on the development plan
within 60 days following its submission by the corporation. The city may incorporate the development plan
into the city's comprehensive plan.
Subd. 3. Subject
to city requirements. All
projects are subject to the planning, zoning, sanitary, and building laws;
ordinances; regulations; and land use plans that apply to the city.
Subd. 4. Modification
of development plan. The
corporation may modify the development plan at any time. The corporation must update the development
plan not less than every five years. A
modification or update under this subdivision must be adopted by the
corporation upon the notice and after the public hearing and findings required
for the original adoption of the development plan, including approval by the
city.
Subd. 5. Medical
center development districts; creation; notice; findings. As part of the development plan, the
corporation may create and define the boundaries of medical center development
districts and subdistricts at any place or places within the city. Projects may be undertaken within defined
medical center development districts consistent with the development plan.
Subd. 6. Nonprofit
economic development agency. (a)
The medical business entity must establish a nonprofit economic development
agency organized under chapter 317A to provide experience and expertise in
developing and marketing the destination medical center. The corporation must engage the agency to
assist the corporation in preparing the development plan. The governing board of the agency must be
comprised of members of the medical community, city, and county. The agency must collaborate with city,
county, and other community representatives.
The nonprofit agency must provide services to assist the corporation and
city in implementing the goals, objectives, and strategies in the development
plan including, but not limited to:
(1) facilitating private investment
through development of a comprehensive marketing program to global interests;
(2) developing and updating the
criteria for evaluating and underwriting development proposals;
(3) drafting and implementing the
development plan, including soliciting and evaluating proposals for development
and evaluating and making recommendations to the authority and the city
regarding those proposals;
(4) providing transactional services in
connection with approved projects;
(5) developing patient, visitor, and
community outreach programs for a destination medical center development
district;
(6) working with the corporation to
acquire and facilitate the sale, lease, or other transactions involving land
and real property;
(7) seeking financial support for the
corporation, the city, and a project;
(8) partnering with other development
agencies and organizations, the city, and the county in joint efforts to
promote economic development and establish a destination medical center;
(9) supporting and administering the
planning and development activities required to implement the development plan;
(10) preparing and supporting the
marketing and promotion of the medical center development district;
(11) preparing and implementing a
program for community and public relations in support of the medical center
development district;
(12) assisting the corporation
or city and others in applications for federal grants, tax credits, and other
sources of funding to aid both private and public development; and
(13) making other general advisory
recommendations to the corporation and the city, as requested.
(b) The nonprofit economic development
agency must disclose to the city and to the corporation the existence, nature,
and all material facts regarding any financial interest its employees or
contractors have in any public infrastructure project submitted to the city for
approval and any financial interest its employees or contractors have in the
destination medical center development. "Contractors"
includes affiliates of the contractors or members or shareholders with an
ownership interest of more than 20 percent in the contractor.
Subd. 7. Audit
of nonprofit economic development agency contract. Any contract for services between the
corporation and the nonprofit economic development agency paid, in whole or in
part, with public money provides the corporation, the city, and the state
auditor the right to audit the books and records of the agency that are
necessary to certify:
(1) the nature and extent of the
services furnished pursuant to the contract; and
(2) that the payment for services and
related disbursements complies with all state laws, regulations, and the terms
of the contract.
Any contract for services between the
corporation and the agency paid, in whole or in part, with public money must
require the corporation to maintain for the life of the corporation accurate
and complete books and records directly relating to the contract.
Subd. 8. Report. By February 15 of each year, the
corporation and city must jointly submit a report to the chairs and ranking
minority members of the legislative committees and divisions with jurisdiction
over local and state government operations, economic development, and taxes,
and to the commissioners of revenue and employment and economic development,
and the county. The corporation and city
must also submit the report as provided in section 3.195. The report must include:
(1) the development plan and any
proposed changes to the development plan;
(2) progress of projects identified in
the development plan;
(3) actual costs and financing sources,
including the amount paid with state aid under section 469.47, and required
local contributions of projects completed in the previous two years by the
corporation, city, county, and the medical business entity;
(4) estimated costs and financing
sources for projects to be started in the next two years by the corporation,
city, county, and the medical business entity; and
(5)
debt service schedules for all outstanding obligations of the city for debt
issued for projects identified in the plan.
Sec. 7. [469.44]
CITY POWERS, DUTIES; AUTHORITY TO ISSUE BONDS.
Subdivision 1. Port
authority powers. The city
may exercise the powers of a port authority under sections 469.048 to 469.068
for the purposes of implementing the destination medical center development
plan.
Subd. 2. Support
to the corporation. The city
must provide financial and administrative support, and office and other space,
to the corporation. The city may
appropriate city funds to the corporation for its work.
Subd. 3. City
to issue debt. The city may
issue general obligation bonds, revenue bonds, or other obligations, as it
determines appropriate, to finance public infrastructure projects, as provided
by chapter 475. Notwithstanding section
475.53, obligations issued under this section are not subject to the limits on
net debt, regardless of their source of security or payment. Notwithstanding section 475.58 or any other
law or charter provision to the contrary, issuance of obligations under the
provisions of this section are not subject to approval of the electors. The city may pledge any of its revenues,
including property taxes, the taxes authorized by sections 469.45 and 469.46,
and the state aid under section 469.47, as security for and to pay the
obligations. The city must not issue
obligations that are only payable from or secured by state aid under section
469.47.
Subd. 4. Local
government tax base not reduced. Nothing
in sections 469.40 to 469.47 reduces the tax base or affects the taxes due and
payable to the city, the county, or any school district within the boundaries
of the city, including without limitation, the city's general local sales tax.
Subd. 5. Project
implementation before plan adoption.
The city may exercise the powers under subdivision 3 with respect
to any public infrastructure project commenced within the area that will be in
the destination medical center development district after the effective date of
this section but before the development plan is adopted subject to approval by
the corporation. Actions taken under
this authority must be approved by the corporation to be credited against the
local contribution required under section 469.47, subdivision 4.
Subd. 6. American
made steel. The city must
require that a public infrastructure project use American steel products to the
extent practicable. In determining
whether it is practicable, the city may consider the exceptions to the
requirement in Public Law 111-5, section 1605.
Subd. 7. City
contracts; construction requirements.
For all public infrastructure projects, the city must make every
effort to hire and cause the construction manager and any subcontractors to
employ women and members of minority communities. Goals for construction contracts must be
established in the manner required under the city's minority and women-owned
business enterprises utilization plan.
Subd. 8. Conduit
bond issuance. (a) Upon the
request of the corporation or the nonprofit agency, the city or its economic
development authority shall issue revenue bonds or other similar obligations
for a qualifying project. Revenue bonds
or other obligations as used in this subdivision means bonds or other
obligations issued under sections 469.152 to 469.165 or under chapter 462C, the
interest on which is tax exempt. The
city or its development authority shall use its best efforts to issue the bonds
or other obligations as promptly and efficiently as possible following the
request and the provision of the information and completion of the actions by
the corporation or the nonprofit agency that are necessary for the issuance. Upon request of the corporation or nonprofit
agency, the city or its economic development authority shall adopt methods and
procedures that preserve the confidentiality of private donors or other private
participants in the qualifying project, including structures and methods that
do not require disclosing information on the donors or participants to the city
or its economic development authority, and shall segregate in separate accounts
all funds related to a qualifying project from other city and authority funds.
(b) For purposes of this section, a
"qualifying project" means a project, as that term is defined in
section 469.153, or a project that would qualify for financing under chapter
462C, that:
(1) the corporation finds is consistent
with and will further the goals of the development plan;
(2) is located in a medical development
district; and
(3) has a commitment of private funding
sources such as donations of money or in-kind contributions, other than
revenues generated by the project, equal to at least ten percent of the total
capital cost of the project.
Subd. 9. Public
bidding exemption. (a)
Notwithstanding section 469.068 or any other law to the contrary, the city need
not require competitive bidding with respect to a parking facility or other
public improvements constructed in conjunction with, and directly above or
below, or adjacent and integrally related to, a private development financed or
developed under the development plan.
(b) For purposes of this section,
"city" includes the development authority established by the city.
Sec. 8. [469.45]
CITY TAX AUTHORITY.
Subdivision 1. Rochester,
other local taxes authorized. (a)
Notwithstanding section 477A.016, or any other contrary provision of law,
ordinance, or city charter, and in addition to any taxes the city may impose on
these transactions under another statute or law, the city of Rochester may, by
ordinance, impose at a rate or rates, determined by the city, any of the
following taxes:
(1) a tax on the gross receipts from
the furnishing for consideration of lodging and related services as defined in section
297A.61, subdivision 3, paragraph (g), clause (2); the city may choose to
impose a differential tax based on the number of rooms in the facility;
(2) a tax on the gross receipts of food
and beverages sold primarily for consumption on the premises by restaurants and
places of refreshment that occur in the city of Rochester; the city may elect
to impose the tax in a defined district of the city; and
(3) a tax on the admission receipts to
entertainment and recreational facilities, as defined by ordinance, in the city
of Rochester.
(b) The provisions of section 297A.99,
subdivisions 4 to 13, govern the administration, collection, and enforcement of
any tax imposed by the city under paragraph (a).
(c) The proceeds of any taxes imposed
under this subdivision, less refunds and costs of collection, must be used by
the city only to meet its share of obligations for public infrastructure
projects contained in the development plan and approved by the corporation,
including any associated financing costs.
Any tax imposed under paragraph (a) expires at the earlier of December
31, 2049, or when the city council determines that sufficient funds have been
raised from the tax plus all other local funding sources authorized in this
article to meet the city obligation for financing public infrastructure
projects contained in the development plan and approved by the corporation,
including any associated financing costs.
Subd. 2. General
sales tax authority. The city
may elect to extend the existing local sales and use tax under section 13 or to
impose an additional rate of up to one quarter of one percent tax on sales and
use under section 11. The proceeds of
any extended or additional taxes imposed under this subdivision, less refunds
and costs of collection, must be used by the city only to meet its share of
obligations for public infrastructure projects contained in the development
plan and approved by the corporation, including all financing costs. Revenues collected in any year to meet the
obligations must be used for payment of obligations or expenses for public
infrastructure projects approved by the corporation.
Subd. 3. Special
abatement rules. (a) If the
city or the county elects to use tax abatement under sections 469.1812 to
469.1815 to finance costs of public infrastructure projects, including all
financing costs, the special rules under this subdivision apply. Taxes abated for public infrastructure
projects must be used only for obligations or other infrastructure projects
approved by the corporation.
(b) The limitations under section
469.1813, subdivision 6, do not apply to the city or the county.
(c)
The limitations under section 469.1813, subdivision 8, do not apply and
property taxes abated by the city or the county to finance costs of public
infrastructure projects are not included for purposes of applying section
469.1813, subdivision 8, to the use of tax abatement for other purposes of the
city or the county; however, the total amount of property taxes abated by the
city and the county under this authority must not exceed $87,750,000.
Subd. 4. Special
tax increment financing rules. If
the city elects to establish one or more redevelopment tax increment financing
districts within the area of the destination medical center development district
to fund public infrastructure projects, the requirements, definitions,
limitations, or restrictions in the following statutes do not apply: sections 469.174, subdivisions 10 and 25,
clause (2); 469.176, subdivisions 4j, 4l, and 5; and 469.1763, subdivisions 2,
3, and 4. The provisions of this
subdivision expire effective for tax increments expended after December 31,
2049. After that date, the provisions of
section 469.1763, subdivision 4, apply to any remaining unspent or unobligated
increments.
Sec. 9. [469.46]
COUNTY TAX AUTHORITY.
(a) Notwithstanding sections 297A.99,
297A.993, and 477A.016, or any other contrary provision of law, ordinance, or
charter, and in addition to any taxes the county may impose under another law
or statute, the Board of Commissioners of Olmsted County may, by resolution,
impose a transit tax of up to one quarter of one percent on retail sales and
uses taxable under chapter 297A. The
provisions of section 297A.99, subdivisions 4 to 13, govern the imposition,
administration, collection, and enforcement of the tax authorized under this
paragraph.
(b) The Board of Commissioners of
Olmsted County may, by resolution, levy an annual wheelage tax of up to $10 on
each motor vehicle kept in the county when not in operation which is subject to
annual registration and taxation under chapter 168, for transportation projects
within the county. The wheelage tax must
not be imposed on the vehicles exempt from wheelage tax under section 163.051,
subdivision 1. The board, by resolution,
may provide for collection of the wheelage tax by county officials, or it may
request that the tax be collected by the state registrar on behalf of the
county. The provisions of section
163.051, subdivisions 2, 2a, 3, and 7, must govern the administration,
collection, and enforcement of the tax authorized under this paragraph. The tax authorized under this section is in
addition to any tax the county may be authorized to impose under section
163.051, but until January 1, 2018, the county tax imposed under this
paragraph, in combination with any tax imposed under section 163.051, must
equal the specified rate under section 163.051.
(c) The proceeds of any taxes imposed
under paragraph (a), less refunds and costs of collection, must be first used
by the county to meet its local matching contributions under section 469.47,
subdivision 6, for financing transit infrastructure related to the public
infrastructure projects contained in the development plan and approved by the
corporation, including any financing costs.
Revenues collected in any calendar year in excess of the county
obligation to pay for projects contained in the development plan may be
retained by the county and used for funding other transportation projects,
including roads and bridges, airports, and transportation improvements.
(d) Any taxes imposed under paragraph
(a) expire December 31, 2049, or at an earlier time if approved by resolution
of the county board of commissioners. The
taxes must not terminate before the county board of commissioners determines
that revenues from these taxes and any other revenue source the county
dedicates are sufficient to pay the county share of transit project costs and
financing costs under the development plan.
Sec. 10. [469.47]
STATE INFRASTRUCTURE AID.
Subdivision 1. Definitions. (a) For purposes of this section, the
following terms have the meanings given them.
(b) "Commissioner" means the
commissioner of employment and economic development.
(c) "Construction projects"
means:
(1) for expenditures by a
medical business entity, construction of buildings in the city for which the
building permit was issued after June 30, 2013; and
(2) for any other expenditures,
construction of privately owned buildings and other improvements that are undertaken
pursuant to or as part of the development plan and are located within a medical
center development district.
(d) "Expenditures" means
expenditures made by a medical business entity or by an individual or private
entity on construction projects for the capital cost of the project including,
but not limited to:
(1) design and predesign, including
architectural, engineering, and similar services;
(2) legal, regulatory, and other
compliance costs of the project;
(3) land acquisition, demolition of existing
improvements, and other site preparation costs;
(4) construction costs, including all
materials and supplies of the project; and
(5) equipment and furnishings that are
attached to or become part of the real property.
Expenditures excludes supplies and
other items with a useful life of less than a year that are not used or
consumed in constructing improvements to real property or are otherwise
chargeable to capital costs.
(e) "Qualified expenditures"
has the following meaning. In the first
year in which aid is paid under this section, "qualified
expenditures" means the total certified expenditures since June 30, 2013,
through the end of the preceding year, minus $200,000,000. For subsequent years, "qualified
expenditures" means the certified expenditures for the preceding year.
(f) "Transit costs" means the
portions of a public infrastructure project that are for public transit
intended primarily to serve the district, such as transit stations, equipment,
rights-of-way, and similar costs.
Subd. 2. Certification
of expenditures. By April 1
of each year, the medical business entity must certify to the commissioner the
amount of expenditures made by the medical business entity in the preceding
year. For expenditures made by an
individual or entity other than the medical business entity, the corporation
shall compile the information on the expenditures and may certify the amount to
the commissioner. The certification must
be made in the form that the commissioner prescribes and include any documentation
of and supporting information regarding the expenditures that the commissioner
requires. By August 1 of each year, the
commissioner must determine the amount of the expenditures for the preceding
year.
Subd. 3. General
state infrastructure aid. (a)
General state infrastructure aid may not be paid out under this section until
total expenditures exceed $200,000,000.
(b) The amount of the general state
infrastructure aid for a fiscal year equals the sum of qualified expenditures,
multiplied by 2.75 percent. The maximum
amount of state aid payable in any year is limited to no more than $30,000,000. If the aid entitlement for the year exceeds
the maximum annual limit, the excess is an aid carryover to later years. The carryover aid must be paid in the first
year in which the aid entitlement for the current year is less than the maximum
annual limit, but only to the extent the carryover, when added to the current
year aid, is less than the maximum annual limit. If the commissioner determines that the city
has made the required matching local contribution under subdivision 4, the
commissioner must pay to the city the amount of general state infrastructure
aid for the year by September 1.
(c) The city must use general
state infrastructure aid it receives under this subdivision for improvements
and other capital costs related to the public infrastructure projects approved
by the corporation, other than transit costs.
The city must maintain appropriate records to document the use of the
funds under this requirement.
(d) The commissioner, in consultation
with the commissioner of management and budget, and representatives of the city
and the corporation, must establish a total limit on the amount of state aid
payable under this subdivision that will be adequate to finance, in combination
with the local contribution, $455,000,000 of general public infrastructure
projects.
Subd. 4. General
aid; local matching contribution. In
order to qualify for general state infrastructure aid, the city must enter a written
agreement with the commissioner that requires the city to make a qualifying
local matching contribution to pay for $128,000,000 of the cost of public
infrastructure projects approved by the corporation, including financing costs,
using funds other than state aid received under this section. The $128,000,000 required local matching
contribution is reduced by one half of the amounts the city pays for operating
and administrative costs of the corporation up to a maximum amount agreed to by
the board and the city. The agreement
must provide for the manner, timing, and amounts of the city contributions,
including the city's commitment for each year.
Notwithstanding any law to the contrary, the agreement may provide that
the city contributions for public infrastructure project principal costs may be
made over a 20-year period at a rate not greater than $1 from the city for each
$2.55 from the state. The local match
contribution may be provided by the city from any source identified in section
469.45 and any other local tax proceeds or other funds from the city and may
include providing funds to assist developers undertaking projects in accordance
with the development plan or by the city directly undertaking public
infrastructure projects in accordance with the development plan, provided the
projects have been approved by the corporation.
City contributions that are in excess of this ratio carry forward and
are credited towards subsequent years. The
commissioner and city may agree to amend the agreement at any time in light of
new information or other appropriate factors.
The city may enter into arrangements with the county to pay for or
otherwise meet the local matching contribution requirement. Any public infrastructure project within the
area that will be in the destination medical center development district whose
implementation is started or funded by the city after the effective date of
this section but before the development plan is adopted, as provided by section
469.46, subdivision 5, will be included for the purposes of determining the
amount the city has contributed as required by this section and the agreement
with the commissioner, subject to approval by the corporation.
Subd. 5. State
transit aid. (a) The city
qualifies for state transit aid under this section if the county contributes
the required local matching contribution under subdivision 6 or the city or
county has agreed to make an equivalent contribution out of other funds for the
year.
(b) If the city qualifies for aid under
paragraph (a), the commissioner must pay the city the state transit aid in the
amount calculated under this paragraph. The
amount of the state transit aid for a fiscal year equals the sum of qualified
expenditures, as certified by the commissioner for the prior year, multiplied
by 0.75 percent, reduced by the amount of the local contribution under
subdivision 6. The maximum amount of
state transit aid payable in any year is limited to no more than $7,500,000. If the aid entitlement for the year exceeds
the maximum annual limit, the excess is an aid carryover to later years. The carryover aid must be paid in the first
year in which the aid entitlement for the current year is less than the maximum
annual limit, but only to the extent the carryover, when added to the current
year aid, is less than the maximum annual limit.
(c) The commissioner, in consultation
with the commissioner of management and budget, and representatives of the city
and the corporation, must establish a total limit on the amount of state aid
payable under this subdivision that will be adequate to finance, in combination
with the local contribution, $116,000,000 of transit costs.
(d) The city must use state transit aid
it receives under this subdivision for transit costs. The city must maintain appropriate records to
document the use of the funds under this requirement.
Subd. 6. Transit
aid; local matching contribution. (a)
The required local matching contribution for state transit aid equals the
lesser of:
(1) 40 percent of the state transit aid
under subdivision 5; or
(2) the amount that would be raised by
a 0.15 percent sales tax imposed by the county in the preceding year.
The county may impose the sales tax or
the wheelage tax under section 469.46 to meet this obligation.
(b) If the county elects not to impose
any of the taxes authorized under section 469.46, the county, or city, or both,
may agree to make the local contribution out of other available funds, other
than state aid payable under this section.
The commissioner of revenue must estimate the required amount and
certify it to the commissioner, city, and county.
Subd. 7. Prevailing
wage requirement. During the
construction, installation, remodelling, and repairs of any public
infrastructure project funded by state aid or a local matching contribution
under this section, laborers and mechanics at the site must be paid the
prevailing wage rate as defined in section 177.42, subdivision 6, and the
project is subject to the requirements of sections 177.30 and 177.41 to 177.44.
Subd. 8. Termination. No aid may be paid under this section
after fiscal year 2049.
Subd. 9. Appropriation. An amount sufficient to pay the state
general infrastructure and state transit aid authorized under this section is
appropriated to the commissioner from the general fund.
Sec. 11. Laws 1998, chapter 389, article 8, section 43, subdivision 1, is amended to read:
Subdivision 1. Sales
and use taxes authorized. (a)
Notwithstanding Minnesota Statutes, section 477A.016, or any other contrary
provision of law, ordinance, or city charter, upon termination of the taxes
authorized under Laws 1992, chapter 511, article 8, section 33, subdivision 1,
and if approved by the voters of the city at a general or special election held
within one year of the date of final enactment of this act, the city of
Rochester may, by ordinance, impose an additional sales and use tax of up to
one-half of one percent. The provisions
of Minnesota Statutes, section 297A.48 297A.99, govern the
imposition, administration, collection, and enforcement of the tax authorized
under this subdivision paragraph.
(b) Notwithstanding Minnesota Statutes,
sections 297A.99 and 477A.016, or any other contrary provision of law,
ordinance, or charter, the city of Rochester may, by ordinance, impose an
additional sales and use tax of up to one quarter of one percent. The provisions of Minnesota Statutes, section
297A.99, subdivisions 1 and 4 to 13, govern the imposition, administration,
collection, and enforcement of the tax authorized under this paragraph.
Sec. 12. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First Special Session chapter 7, article 4, section 5, is amended to read:
Subd. 3. Use of revenues. (a) Revenues received from the taxes authorized by subdivisions 1, paragraph (a), and 2 must be used by the city to pay for the cost of collecting and administering the taxes and to pay for the following projects:
(1) transportation infrastructure improvements including regional highway and airport improvements;
(2) improvements to the civic center complex;
(3) a municipal water, sewer, and storm sewer project necessary to improve regional ground water quality; and
(4) construction of a regional recreation and sports center and other higher education facilities available for both community and student use.
(b) The total amount of capital expenditures or bonds for projects listed in paragraph (a) that may be paid from the revenues raised from the taxes authorized in this section may not exceed $111,500,000. The total amount of capital expenditures or bonds for the project in clause (4) that may be paid from the revenues raised from the taxes authorized in this section may not exceed $28,000,000.
(c) In addition to the projects authorized in paragraph (a) and not subject to the amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an election under subdivision 5, paragraph (c), use the revenues received from the taxes and bonds authorized in this section to pay the costs of or bonds for the following purposes:
(1) $17,000,000 for capital expenditures and bonds for the following Olmsted County transportation infrastructure improvements:
(i) County State Aid Highway 34 reconstruction;
(ii) Trunk Highway 63 and County State Aid Highway 16 interchange;
(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 interchange;
(iv) widening of County State Aid Highway 22 West Circle Drive; and
(v) 60th Avenue Northwest corridor preservation;
(2) $30,000,000 for city transportation projects including:
(i) Trunk Highway 52 and 65th Street interchange;
(ii) NW transportation corridor acquisition;
(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;
(iv) Trunk Highway 14 and Trunk Highway 63 intersection;
(v) Southeast transportation corridor acquisition;
(vi) Rochester International Airport expansion; and
(vii) a transit operations center bus facility;
(3) $14,000,000 for the University of Minnesota Rochester academic and complementary facilities;
(4) $6,500,000 for the Rochester Community and Technical College/Winona State University career technical education and science and math facilities;
(5) $6,000,000 for the Rochester Community and Technical College regional recreation facilities at University Center Rochester;
(6) $20,000,000 for the Destination Medical Community Initiative;
(7) $8,000,000 for the regional public safety and 911 dispatch center facilities;
(8) $20,000,000 for a regional recreation/senior center;
(9) $10,000,000 for an economic development fund; and
(10) $8,000,000 for downtown infrastructure.
(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1 and 2 may be used to fund transportation improvements related to a railroad bypass that would divert traffic from the city of Rochester.
(e) The city shall use $5,000,000 of
the money allocated to the purpose in paragraph (c), clause (9), for grants to
the cities of Byron, Chatfield, Dodge Center, Dover, Elgin, Eyota, Kasson,
Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville,
Zumbrota, Spring Valley, West Concord, and Hayfield for economic development
projects that these communities would fund through their economic development
authority or housing and redevelopment authority. Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 2 and 3, if the city decides to extend the taxes
in subdivisions 1, paragraph (a), and 2, as allowed under subdivision 5,
paragraph (c), the city must use any amount in excess of the amount necessary
to meet obligations under paragraphs (a) to (c) from those taxes to fund
obligations, including financing costs, related to public infrastructure
projects in the development plan adopted under Minnesota Statutes, section
469.43.
(f) Revenues from the tax under
subdivision 1, paragraph (b), must be used to fund obligations, including
financing costs, related to the public infrastructure projects contained in the
development plan approved by the DMCC and adopted by the city under Minnesota
Statutes, section 469.43.
Sec. 13. Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by Laws 2005, First Special Session chapter 3, article 5, section 30, and Laws 2011, First Special Session chapter 7, article 4, section 7, is amended to read:
Subd. 5. Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 expire at the later of (1) December 31, 2009, or (2) when the city council determines that sufficient funds have been received from the taxes to finance the first $71,500,000 of capital expenditures and bonds for the projects authorized in subdivision 3, including the amount to prepay or retire at maturity the principal, interest, and premium due on any bonds issued for the projects under subdivision 4, unless the taxes are extended as allowed in paragraph (b). Any funds remaining after completion of the project and retirement or redemption of the bonds shall also be used to fund the projects under subdivision 3. The taxes imposed under subdivisions 1 and 2 may expire at an earlier time if the city so determines by ordinance.
(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance, extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, if approved by the voters of the city at a special election in 2005 or the general election in 2006. The question put to the voters must indicate that an affirmative vote would allow up to an additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 of bonds to be issued above the amount authorized in the June 23, 1998, referendum for the projects specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under this paragraph, the taxes expire when the city council determines that sufficient funds have been received from the taxes to finance the projects and to prepay or retire at maturity the principal, interest, and premium due on any bonds issued for the projects under subdivision 4. Any funds remaining after completion of the project and retirement or redemption of the bonds may be placed in the general fund of the city.
(c) Notwithstanding Minnesota
Statutes, sections 297A.99 and 477A.016, or any other contrary provision of
law, ordinance, or city charter, the city of Rochester may, by ordinance,
extend the taxes authorized in subdivisions 1, paragraph (a), and 2 beyond
the date, up to December 31, 2049, provided that all additional revenues
above those necessary to fund the projects and associated financing costs
listed in subdivision 3, paragraphs (a) to (e), are committed to fund public
infrastructure projects contained in the development plan adopted under
Minnesota Statutes, section 469.43, including all financing costs; otherwise
the taxes terminate when the city council determines that sufficient funds
have been received from the taxes to finance $111,500,000 of
expenditures and bonds for the projects authorized in subdivision 3, paragraph
(a) paragraphs (a) to (e), plus an amount equal to the costs of
issuance of the bonds and including the amount to prepay or retire at maturity
the principal, interest, and premiums due on any bonds issued for the projects
under subdivision 4, paragraph (a), if approved by the voters of the city at
the general election in 2012. If the
election to authorize the additional $139,500,000 of bonds plus an amount equal
to the costs of the issuance of the bonds is placed on the general election
ballot in 2012, the city may continue to collect the taxes authorized in
subdivisions 1 and 2 until December 31, 2012.
The question put to the voters must indicate that an affirmative vote
would allow sales tax revenues be raised for an extended period of time and an
additional $139,500,000 of bonds plus an amount equal to the costs of issuance
of the bonds, to be issued above the amount authorized in the previous
elections required under paragraphs (a) and (b) for the projects and amounts
specified in subdivision 3. If the taxes
authorized in subdivisions 1 and 2 are extended under this paragraph, the taxes
expire when the city council determines that $139,500,000 has been received
from the taxes to finance the projects plus an amount sufficient to prepay or
retire at maturity the principal, interest, and premium due on any bonds issued
for the projects under subdivision 4, including any bonds issued to refund the
bonds. Any funds remaining after
completion of the projects and retirement or redemption of the bonds may be
placed in the general fund of the city.
(d) The tax imposed under subdivision 1,
paragraph (b), expires at the earlier of 2049, or when the city council
determines that sufficient funds have been raised from the tax plus all other
city funding sources authorized in this article to meet the city obligation for
financing the public infrastructure projects contained in the development plan
adopted under Minnesota Statutes, section 469.43, including all financing
costs.
Sec. 14. ROCHESTER
SALES TAX SHARING.
The city council may, after holding a
public hearing and passing a resolution, use $5,000,000 of the $10,000,000
allocated to an economic development fund in Laws 1998, chapter 389, article 8,
section 43, subdivision 3, as amended by Laws 2005, First Special Session
chapter 3, article 5, section 28, and Laws 2011, First Special Session chapter
7, article 4, section 5, paragraph (c), clause (9), for grants to any or all of
the cities of Byron, Chatfield, Dodge Center, Dover, Elgin, Eyota, Hayfield,
Kasson, Mantorville, Oronoco, Pine Island, Plainview, Spring Valley, St. Charles,
Stewartville, West Concord, and Zumbrota for economic development projects that
these communities would fund through their economic development authority or
housing and redevelopment authority. The
public hearing may be part of a regular city council meeting. If the council does not pass the resolution
by September 1, 2013, the $5,000,000 may not be used for grants to the other
cities but shall instead be used to fund public infrastructure projects
contained in the development plan under Minnesota Statutes, section 469.42.
Sec. 15. OLMSTED
INTERREGIONAL PASSENGER RAIL STUDY.
The study by the Olmsted County Regional
Rail authority, in conjunction with the Minnesota Department of Transportation,
on interregional passenger rail, and funded under Laws 2009, chapter 93,
article 1, section 11, subdivision 5, must include analysis of the feasibility
of a high-speed rail connection between Rochester and the Mall of America via
Minnesota State Highway 77 with connections to the Minneapolis-St. Paul
International Airport and the Union Depot in St. Paul; and, to the extent
feasible, take into account available data, forecasts, available transportation
demand modeling information, and transportation impacts of major economic
initiatives and proposals including, but not limited to, expansion of the Mayo
Clinic.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. EFFECTIVE
DATE.
Except as otherwise provided, this
article is effective the day after the governing body of the city of Rochester
and its chief clerical officer timely comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
ARTICLE 11
MINERALS TAXES
Section 1. Minnesota Statutes 2012, section 126C.48, subdivision 8, is amended to read:
Subd. 8. Taconite payment and other reductions. (1) Reductions in levies pursuant to subdivision 1 must be made prior to the reductions in clause (2).
(2) Notwithstanding any other law to the contrary, districts that have revenue pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon severed mineral values must reduce the levies authorized by this chapter and chapters 120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the previous year's revenue specified under this clause and the amount attributable to the same production year distributed to the cities and townships within the school district under section 298.28, subdivision 2, paragraph (c).
(3) The amount of any voter approved referendum, facilities down payment, and debt levies shall not be reduced by more than 50 percent under this subdivision. In administering this paragraph, the commissioner shall first reduce the nonvoter approved levies of a district; then, if any payments, severed mineral value tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter approved referendum levies authorized under section 126C.17; then, if any payments, severed mineral value tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter approved facilities down payment levies authorized under section 123B.63 and then, if any payments, severed mineral value tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall reduce any voter approved debt levies.
(4) Before computing the reduction pursuant to this subdivision of the health and safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner shall ascertain from each affected school district the amount it proposes to levy under each section or subdivision. The reduction shall be computed on the basis of the amount so ascertained.
(5) To the extent the levy reduction calculated under paragraph (2) exceeds the limitation in paragraph (3), an amount equal to the excess must be distributed from the school district's distribution under sections 298.225, 298.28, and 477A.15 in the following year to the cities and townships within the school district in the proportion that their taxable net tax capacity within the school district bears to the taxable net tax capacity of the school district for property taxes payable in the year prior to distribution. No city or township shall receive a distribution greater than its levy for taxes payable in the year prior to distribution. The commissioner of revenue shall certify the distributions of cities and towns under this paragraph to the county auditor by September 30 of the year preceding distribution. The county auditor shall reduce the proposed and final levies of cities and towns receiving distributions by the amount of their distribution. Distributions to the cities and towns shall be made at the times provided under section 298.27.
EFFECTIVE
DATE. This section is
effective for levies certified in 2013 and later.
Sec. 2. Minnesota Statutes 2012, section 298.17, is amended to read:
298.17
OCCUPATION TAXES TO BE APPORTIONED.
(a) All occupation taxes paid by persons, copartnerships, companies, joint stock companies, corporations, and associations, however or for whatever purpose organized, engaged in the business of mining or producing iron ore or other ores, when collected shall be apportioned and distributed in accordance with the Constitution of the state of
Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited in the state treasury and credited to the general fund of which four-ninths shall be used for the support of elementary and secondary schools; and ten percent of the proceeds of the tax imposed by this section shall be deposited in the state treasury and credited to the general fund for the general support of the university.
(b) Of the moneys apportioned to the general fund by this section: (1) there is annually appropriated and credited to the mining environmental and regulatory account in the special revenue fund an amount equal to that which would have been generated by a two and one-half cent tax imposed by section 298.24 on each taxable ton produced in the preceding calendar year. Money in the mining environmental and regulatory account is appropriated annually to the commissioner of natural resources to fund agency staff to work on environmental issues and provide regulatory services for ferrous and nonferrous mining operations in this state. Payment to the mining environmental and regulatory account shall be made by July 1 annually. The commissioner of natural resources shall execute an interagency agreement with the pollution control agency to assist with the provision of environmental regulatory services such as monitoring and permitting required for ferrous and nonferrous mining operations; and (2) there is annually appropriated and credited to the Iron Range Resources and Rehabilitation Board account in the special revenue fund an amount equal to that which would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable ton produced in the preceding calendar year, to be expended for the purposes of section 298.22.
The money appropriated pursuant to this
section clause (2) shall be used (1) (i) to provide
environmental development grants to local governments located within any county
in region 3 as defined in governor's executive order number 60, issued on June
12, 1970, which does not contain a municipality qualifying pursuant to section
273.134, paragraph (b), or (2) (ii) to provide economic
development loans or grants to businesses located within any such county,
provided that the county board or an advisory group appointed by the county
board to provide recommendations on economic development shall make
recommendations to the Iron Range Resources and Rehabilitation Board regarding
the loans. Payment to the Iron Range
Resources and Rehabilitation Board account shall be made by May 15 annually.
(c) Of the money allocated to Koochiching County, one-third must be paid to the Koochiching County Economic Development Commission.
EFFECTIVE
DATE. This section is
effective beginning for the 2013 production year.
Sec. 3. Minnesota Statutes 2012, section 298.227, as
amended by Laws 2013, chapter 3, section 17, is amended to read:
298.227
TACONITE ECONOMIC DEVELOPMENT FUND. (a)
An amount equal to that distributed pursuant to each taconite producer's
taxable production and qualifying sales under section 298.28, subdivision 9a,
shall be held by the Iron Range Resources and Rehabilitation Board in a
separate taconite economic development fund for each taconite and direct
reduced ore producer. Money from the
fund for each producer shall be released by the commissioner after review by a
joint committee consisting of an equal number of representatives of the
salaried employees and the nonsalaried production and maintenance employees of
that producer. The District 11 director
of the United States Steelworkers of America, on advice of each local employee
president, shall select the employee members.
In nonorganized operations, the employee committee shall be elected by
the nonsalaried production and maintenance employees. The review must be completed no later than
six months after the producer presents a proposal for expenditure of the funds
to the committee. The funds held
pursuant to this section may be released only for workforce development and
associated public facility improvement, or for acquisition of plant and
stationary mining equipment and facilities for the producer or for research and
development in Minnesota on new mining, or taconite, iron, or steel production
technology, but only if the producer provides a matching expenditure equal
to the amount of the distribution to be used for the same purpose of at
least 50 percent of the distribution based on 14.7 cents per ton beginning
with distributions in 2002 2014.
Effective for proposals for expenditures of money from the fund
beginning May 26, 2007, the commissioner may not release the funds before the
next scheduled meeting of the
board. If a proposed expenditure is not approved by the board, the funds must be deposited in the Taconite Environmental Protection Fund under sections 298.222 to 298.225. If a producer uses money which has been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels, and the producer removes the piece of equipment from the taconite tax relief area defined in section 273.134 within ten years from the date of receipt of the money from the fund, a portion of the money granted from the fund must be repaid to the taconite economic development fund. The portion of the money to be repaid is 100 percent of the grant if the equipment is removed from the taconite tax relief area within 12 months after receipt of the money from the fund, declining by ten percent for each of the subsequent nine years during which the equipment remains within the taconite tax relief area. If a taconite production facility is sold after operations at the facility had ceased, any money remaining in the fund for the former producer may be released to the purchaser of the facility on the terms otherwise applicable to the former producer under this section. If a producer fails to provide matching funds for a proposed expenditure within six months after the commissioner approves release of the funds, the funds are available for release to another producer in proportion to the distribution provided and under the conditions of this section. Any portion of the fund which is not released by the commissioner within one year of its deposit in the fund shall be divided between the taconite environmental protection fund created in section 298.223 and the Douglas J. Johnson economic protection trust fund created in section 298.292 for placement in their respective special accounts. Two-thirds of the unreleased funds shall be distributed to the taconite environmental protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of distributions and the review process, an amount equal to ten cents per taxable ton of production in 2007, for distribution in 2008 only, that would otherwise be distributed under paragraph (a), may be used for a loan or grant for the cost of providing for a value-added wood product facility located in the taconite tax relief area and in a county that contains a city of the first class. This amount must be deducted from the distribution under paragraph (a) for which a matching expenditure by the producer is not required. The granting of the loan or grant is subject to approval by the board. If the money is provided as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii) Repayments of the loan and interest, if any, must be deposited in the taconite environment protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this paragraph by July 1, 2012, the amount that had been made available for the loan under this paragraph must be transferred to the taconite environment protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a pro rata basis.
(c) Repayment or transfer of money to the taconite environmental protection fund under paragraph (b), item (ii), must be allocated by the Iron Range Resources and Rehabilitation Board for public works projects in house legislative districts in the same proportion as taxable tonnage of production in 2007 in each house legislative district, for distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph do not require approval by the governor. For purposes of this paragraph, "house legislative districts" means the legislative districts in existence on May 15, 2009.
EFFECTIVE
DATE. This section is
effective beginning for the 2014 distribution.
Sec. 4. Minnesota Statutes 2012, section 298.24, subdivision 1, is amended to read:
Subdivision 1. Imposed;
calculation. (a) For concentrate
produced in 2001, 2002, and 2003 2013, there is imposed upon
taconite and iron sulphides, and upon the mining and quarrying thereof, and
upon the production of iron ore concentrate therefrom, and upon the concentrate
so produced, a tax of $2.103 $2.56 per gross ton of merchantable
iron ore concentrate produced therefrom.
For concentrates produced in 2005, the tax rate is the same rate
imposed for concentrates produced in 2004.
For concentrates produced in 2009 and subsequent years, The tax is
also imposed upon other iron-bearing material.
(b) For concentrates produced
in 2006 2014 and subsequent years, the tax rate shall be equal to
the preceding year's tax rate plus an amount equal to the preceding year's tax
rate multiplied by the percentage increase in the implicit price deflator from
the fourth quarter of the second preceding year to the fourth quarter of the
preceding year. "Implicit price
deflator" means the implicit price deflator for the gross domestic product
prepared by the Bureau of Economic Analysis of the United States Department of
Commerce.
(c) An additional tax is imposed equal to three cents per gross ton of merchantable iron ore concentrate for each one percent that the iron content of the product exceeds 72 percent, when dried at 212 degrees Fahrenheit.
(d) The tax on taconite and iron sulphides shall be imposed on the average of the production for the current year and the previous two years. The rate of the tax imposed will be the current year's tax rate. This clause shall not apply in the case of the closing of a taconite facility if the property taxes on the facility would be higher if this clause and section 298.25 were not applicable. The tax on other iron-bearing material shall be imposed on the current year production.
(e) If the tax or any part of the tax
imposed by this subdivision is held to be unconstitutional, a tax of $2.103
$2.56 per gross ton of merchantable iron ore concentrate produced shall
be imposed.
(f) Consistent with the intent of this subdivision to impose a tax based upon the weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly determine the weight of merchantable iron ore concentrate included in fluxed pellets by subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic flux additives included in the pellets from the weight of the pellets. For purposes of this paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite, olivine, or other basic flux additives are combined with merchantable iron ore concentrate. No subtraction from the weight of the pellets shall be allowed for binders, mineral and chemical additives other than basic flux additives, or moisture.
(g)(1) Notwithstanding any other provision of this subdivision, for the first two years of a plant's commercial production of direct reduced ore from ore mined in this state, no tax is imposed under this section. As used in this paragraph, "commercial production" is production of more than 50,000 tons of direct reduced ore in the current year or in any prior year, "noncommercial production" is production of 50,000 tons or less of direct reduced ore in any year, and "direct reduced ore" is ore that results in a product that has an iron content of at least 75 percent. For the third year of a plant's commercial production of direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise determined under this subdivision. For the fourth commercial production year, the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth commercial production year, the rate is 75 percent of the rate otherwise determined under this subdivision; and for all subsequent commercial production years, the full rate is imposed.
(2) Subject to clause (1), production of direct reduced ore in this state is subject to the tax imposed by this section, but if that production is not produced by a producer of taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides, or other iron-bearing material, that is consumed in the production of direct reduced iron in this state is not subject to the tax imposed by this section on taconite, iron sulfides, or other iron-bearing material.
(3) Notwithstanding any other provision of this subdivision, no tax is imposed on direct reduced ore under this section during the facility's noncommercial production of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial production of direct reduced ore is subject to the tax imposed by this section on taconite and iron sulphides. Three-year average production of direct reduced ore does not include production of direct reduced ore in any noncommercial year. Three-year average production for a direct reduced ore facility that has noncommercial production is the average of the commercial production of direct reduced ore for the current year and the previous two commercial years.
(4) This paragraph applies only to plants for which all environmental permits have been obtained and construction has begun before July 1, 2008.
EFFECTIVE
DATE. This section is
effective beginning for the 2013 production year.
Sec. 5. Minnesota Statutes 2012, section 298.28, subdivision 4, is amended to read:
Subd. 4. School
districts. (a) 23.15 32.15
cents per taxable ton, plus the increase provided in paragraph (d), less the
amount that would have been computed under Minnesota Statutes 2008, section
126C.21, subdivision 4, for the current year for that district, must be
allocated to qualifying school districts to be distributed, based upon the
certification of the commissioner of revenue, under paragraphs (b), (c), and
(f).
(b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which the lands from which taconite was mined or quarried were located or within which the concentrate was produced. The distribution must be based on the apportionment formula prescribed in subdivision 2.
(ii) Four cents per taxable ton from each taconite facility must be distributed to each affected school district for deposit in a fund dedicated to building maintenance and repairs, as follows:
(1) proceeds from Keewatin Taconite or its successor are distributed to Independent School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor districts;
(2) proceeds from the Hibbing Taconite Company or its successor are distributed to Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor districts;
(3) proceeds from the Mittal Steel Company and Minntac or their successors are distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia, 2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
(4) proceeds from the Northshore Mining Company or its successor are distributed to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior, or their successor districts; and
(5) proceeds from United Taconite or its successor are distributed to Independent School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their successor districts.
Revenues that are required to be distributed to more than one district shall be apportioned according to the number of pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous year.
(c)(i) 15.72 24.72 cents per
taxable ton, less any amount distributed under paragraph (e), shall be
distributed to a group of school districts comprised of those school districts
which qualify as a tax relief area under section 273.134, paragraph (b), or in
which there is a qualifying municipality as defined by section 273.134,
paragraph (a), in direct proportion to school district indexes as follows: for each school district, its pupil units
determined under section 126C.05 for the prior school year shall be multiplied
by the ratio of the average adjusted net tax capacity per pupil unit for school
districts receiving aid under this clause as calculated pursuant to chapters
122A, 126C, and 127A for the school year ending prior to distribution to the
adjusted net tax capacity per pupil unit of the district. Each district shall receive that portion of
the distribution which its index bears to the sum of the indices for all school
districts that receive the distributions.
(ii) Notwithstanding clause (i), each school district that receives a distribution under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on severed mineral values after reduction for any portion distributed to cities and towns under
section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its levy reduction under section 126C.48, subdivision 8, for the second year prior to the year of the distribution shall receive a distribution equal to the difference; the amount necessary to make this payment shall be derived from proportionate reductions in the initial distribution to other school districts under clause (i). If there are insufficient tax proceeds to make the distribution provided under this paragraph in any year, money must be transferred from the taconite property tax relief account in subdivision 6, to the extent of the shortfall in the distribution.
(d) (1) Any school district described
in paragraph (c) where a levy increase pursuant to section 126C.17, subdivision
9, was authorized by referendum for taxes payable in 2001, shall receive a
distribution of 21.3 cents per ton. Each
district shall receive $175 times the pupil units identified in section
126C.05, subdivision 1, enrolled in the second previous year or the 1983-1984
school year, whichever is greater, less the product of 1.8 percent times the
district's taxable net tax capacity in the second previous year 2011.
(2) Districts qualifying under
paragraph (c) must receive additional taconite aid each year equal to 22.5
percent of the amount obtained by subtracting:
(i) 1.8 percent of the district's net
tax capacity for 2011, from:
(ii) the district's weighted average
daily membership for fiscal year 2012 multiplied by the sum of:
(A) $415, plus
(B) the district's referendum revenue
allowance for fiscal year 2013.
If the total amount provided by paragraph (d) is insufficient to make the payments herein required then the entitlement of $175 per pupil unit shall be reduced uniformly so as not to exceed the funds available. Any amounts received by a qualifying school district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general education aid which the district receives pursuant to section 126C.13 or the permissible levies of the district. Any amount remaining after the payments provided in this paragraph shall be paid to the commissioner of Iron Range resources and rehabilitation who shall deposit the same in the taconite environmental protection fund and the Douglas J. Johnson economic protection trust fund as provided in subdivision 11.
Each district receiving money according to
this paragraph shall reserve the lesser of the amount received under this
paragraph or $25 times the number of pupil units served in the district. It may use the money for early childhood
programs or for outcome-based learning programs that enhance the academic
quality of the district's curriculum. The
outcome-based learning programs must be approved by the commissioner of
education.
(e) There shall be distributed to any school district the amount which the school district was entitled to receive under section 298.32 in 1975.
(f) Four cents per taxable ton must be distributed
to qualifying school districts according to the distribution specified in
paragraph (b), clause (ii), and two 11 cents per taxable ton must
be distributed according to the distribution specified in paragraph (c). These amounts are not subject to sections
126C.21, subdivision 4, and 126C.48, subdivision 8.
EFFECTIVE
DATE. This section is
effective beginning for the 2014 distribution.
Sec. 6. Minnesota Statutes 2012, section 298.28, subdivision 6, is amended to read:
Subd. 6. Property
tax relief. (a) In 2002 2014
and thereafter, 33.9 34.8 cents per taxable ton, less any amount
required to be distributed under paragraphs (b) and (c), or section 298.2961,
subdivision 5, must be allocated to St. Louis County acting as the
counties' fiscal agent, to be distributed as provided in sections 273.134 to
273.136.
(b) If an electric power plant owned by and providing the primary source of power for a taxpayer mining and concentrating taconite is located in a county other than the county in which the mining and the concentrating processes are conducted, .1875 cent per taxable ton of the tax imposed and collected from such taxpayer shall be paid to the county.
(c) If an electric power plant owned by and providing the primary source of power for a taxpayer mining and concentrating taconite is located in a school district other than a school district in which the mining and concentrating processes are conducted, .4541 cent per taxable ton of the tax imposed and collected from the taxpayer shall be paid to the school district.
EFFECTIVE
DATE. This section is
effective beginning for the 2014 distribution.
Sec. 7. Minnesota Statutes 2012, section 298.28, subdivision 9c, is amended to read:
Subd. 9c. Temporary
Distribution; city of Eveleth. 0.20
cent per taxable ton must be paid to the city of Eveleth for distribution in 2007
through 2011 only 2013 and thereafter, to be used for the support of
the Hockey Hall of Fame, provided that it continues to operate in that city,
and provided that the city of Eveleth certifies to the St. Louis County
auditor that it has received donations for the support of the Hockey Hall of
Fame from professional hockey organizations or other donors in an
amount at least equal to the amount of the distribution under this subdivision. If the Hockey Hall of Fame ceases to operate
in the city of Eveleth prior to receipt of the distribution in either any
year, and the governing body of the city determines that it is unlikely to
resume operation there within a six-month period, the distribution under this
subdivision shall be made to the Iron Range Resources and Rehabilitation Board. If the amount of the distribution
authorized under this subdivision exceeds the total amount of donations for the
support of the Hockey Hall of Fame during the 12-month period ending 30 days
before the date of the distribution, the amount by which 0.20 cent per ton
exceeds the donations shall be distributed to the Iron Range Resources and
Rehabilitation Board.
Sec. 8. Minnesota Statutes 2012, section 298.28, subdivision 10, is amended to read:
Subd. 10. Increase. (a) Except as provided in paragraph (b),
beginning with distributions in 2000, the amount determined under subdivision 9
shall be increased in the same proportion as the increase in the implicit price
deflator as provided in section 298.24, subdivision 1. Beginning with distributions in 2003 2015,
the amount determined under subdivision 6, paragraph (a), shall be increased in
the same proportion as the increase in the implicit price deflator as provided
in section 298.24, subdivision 1.
(b) For distributions in 2005 and subsequent years, an amount equal to the increased tax proceeds attributable to the increase in the implicit price deflator as provided in section 298.24, subdivision 1, for taxes paid in 2005, except for the amount of revenue increases provided in subdivision 4, paragraph (d), is distributed to the grant and loan fund established in section 298.2961, subdivision 4.
EFFECTIVE
DATE. This section is
effective beginning for the 2014 distribution.
Sec. 9. IRON
RANGE FISCAL DISPARITIES STUDY.
The commissioner of revenue, in
coordination with the commissioner of the Iron Range Resources and
Rehabilitation Board, shall conduct a study of the tax relief area revenue
distribution program contained in Minnesota Statutes, chapter 276A, commonly
known as the Iron Range fiscal disparities program. By February 1, 2014, the commissioner of
revenue shall submit a report to the chairs and ranking minority members of the
house of representatives and senate tax committees consisting of the findings
of the study and identification of issues for policy makers to consider. The study must analyze:
(1) trends in population, property tax
base, property tax rates, and contribution and distribution capacity across the
region;
(2) the volatility of the program's
distribution and causes of the volatility;
(3) the impact of state tax policy
changes on the fiscal disparities program; and
(4) the interaction between the program
and the distribution of property tax aids and credits, taconite aid, and Iron
Range Resources and Rehabilitation Board funding across the region.
EFFECTIVE
DATE. This section is
effective June 1, 2013.
Sec. 10. 2013
DISTRIBUTION ONLY.
For the 2013 distribution, a special
fund is established to receive 38.7 cents per ton of any excess of the balance
remaining after distribution of amounts required under Minnesota Statutes,
section 298.28, subdivision 6. The
following amounts are allocated to St. Louis County acting as the fiscal
agent for the recipients for the following specific purposes:
(1) 5.1 cents per ton to the city of
Hibbing for improvements to the city's water supply system;
(2) 4.3 cents per ton to the city of
Mountain Iron for the cost of moving utilities required as a result of actions
undertaken by United States Steel Corporation;
(3) 2.5 cents per ton to the city of
Biwabik for improvements to the city's water supply system, payable upon
agreement with ArcelorMittal to satisfy water permit conditions;
(4) 2 cents per ton to the city of
Tower for the Tower Marina;
(5) 2.4 cents per ton to the city of
Grand Rapids for an eco-friendly heat transfer system to replace aging effluent
lines and for parking lot repaving;
(6) 2.4 cents per ton to the city of
Two Harbors for wastewater treatment plant improvements;
(7) 0.9 cents per ton to the city of
Ely for the sanitary sewer replacement project;
(8)
0.6 cents per ton to the town of Crystal Bay for debt service of the Claire
Nelson Intermodal Transportation Center;
(9) 0.5 cents per ton to the Greenway
Joint Recreation Board for the Coleraine hockey arena renovations;
(10) 1.2 cents per ton for the West
Range Regional Fire Hall and Training Center to merge the existing fire
services of Coleraine, Bovey, Taconite Marble, Calumet, and Greenway Township;
(11) 2.5 cents per ton to the
city of Hibbing for the Memorial Building;
(12) 0.7 cents per ton to the city of
Chisholm for public works infrastructure;
(13) 1.8 cents per ton to the Crane
Lake Water and Sanitary District for sanitary sewer extension;
(14) 2.5 cents per ton for the city of
Buhl for the roof on the Mesabi Academy;
(15) 1.2 cents per ton to the city of
Gilbert for the New Jersey/Ohio Avenue project;
(16) 1.5 cents per ton to the city of
Cook for street improvements, business park infrastructure, and a maintenance
garage;
(17) 0.5 cents per ton to the city of
Cook for a water line project;
(18) 1.8 cents per ton to the city of
Eveleth to be used for Jones Street reconstruction and the city auditorium;
(19) 0.5 cents for the city of Keewatin
for an electrical substation and water line replacements;
(20) 3.3 cents for the city of Virginia
for Fourth Street North infrastructure and Franklin Park improvement; and
(21) 0.5 cents per ton to the city of
Grand Rapids for an economic development project.
EFFECTIVE
DATE. This section is
effective for the 2013 distribution, and all payments must be made separately
and within ten days of the date of the August 2013 payment. This section supersedes article 5, section
46, of 2013 H. F. No. 729, if enacted in the 2013 regular
session of the legislature.
Sec. 11. IRON
RANGE RESOURCES AND REHABILITATION COMMISSIONER; BONDS AUTHORIZED.
Subdivision 1. Issuance;
purpose. Notwithstanding any provision
of Minnesota Statutes, chapter 298, to the contrary, the commissioner of Iron
Range resources and rehabilitation shall issue revenue bonds in a principal
amount of $38,000,000 plus an amount sufficient to pay costs of issuance in one
or more series, and thereafter may issue bonds to refund those bonds. The proceeds of the bonds must be used to pay
costs of issuance and to make grants to school districts located in the
taconite tax relief area defined in Minnesota Statutes, section 273.134, or the
taconite assistance area defined in Minnesota Statutes, section 273.1341, to be
used by the school districts to pay for building projects, such as energy
efficiency, technology, infrastructure, health, safety, and maintenance
improvements. Proceeds granted to School
District No. 2142 must be used to reduce debt service on the building bond
passed on December 8, 2009.
Subd. 2. Appropriation. (a) There is annually appropriated
from the distribution of taconite production tax revenues under Minnesota Statues,
section 298.28, prior to the calculation of the amount of the remainder under
Minnesota Statutes, section 298.28, subdivision 11, an amount sufficient to pay
when due the principal and interest on the bonds issued pursuant to subdivision
1. The appropriation under this section
must not exceed an amount equal to ten cents per taxable ton.
(b) If in any year the amount available under paragraph (a) is insufficient to pay principal and interest due on the bonds in that year, an additional amount is appropriated from the Douglas J. Johnson fund to make up the deficiency.
(c) The appropriation under
this subdivision terminates upon payment or maturity of the last of the bonds
issued under this section.
Subd. 3. Credit
enhancement. The bonds issued
under this section are "debt obligations" and the commissioner of
Iron Range resources and rehabilitation is a "district" for purposes
of Minnesota Statutes, section 126C.55, provided that advances made under
Minnesota Statutes, section 126C.55, subdivision 2, are not subject to
Minnesota Statutes, section 126C.55, subdivisions 4 to 7.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies beginning with the 2014
distribution under Minnesota Statutes, section 298.28.
ARTICLE 12
PUBLIC FINANCE
Section 1. Minnesota Statutes 2012, section 118A.04, subdivision 3, is amended to read:
Subd. 3. State and local securities. Funds may be invested in the following:
(1) any security which is a general obligation of any state or local government with taxing powers which is rated "A" or better by a national bond rating service;
(2) any security which is a revenue
obligation of any state or local government with taxing powers which is
rated "AA" or better by a national bond rating service; and
(3) a general obligation of the Minnesota
housing finance agency which is a moral obligation of the state of Minnesota
and is rated "A" or better by a national bond rating agency.;
and
(4) any security which is an obligation
of a school district with an original maturity not exceeding 13 months and (i)
rated in the highest category by a national bond rating service or (ii)
enrolled in the credit enhancement program pursuant to section 126C.55.
Sec. 2. Minnesota Statutes 2012, section 118A.05, subdivision 5, is amended to read:
Subd. 5. Guaranteed investment contracts. Agreements or contracts for guaranteed investment contracts may be entered into if they are issued or guaranteed by United States commercial banks, domestic branches of foreign banks, United States insurance companies, or their Canadian subsidiaries, or the domestic affiliates of any of the foregoing. The credit quality of the issuer's or guarantor's short- and long-term unsecured debt must be rated in one of the two highest categories by a nationally recognized rating agency. Agreements or contracts for guaranteed investment contracts with a term of 18 months or less may be entered into regardless of the credit quality of the issuer's or guarantor's long-term unsecured debt, provided that the credit quality of the issuer's short-term unsecured debt is rated in the highest category by a nationally recognized rating agency. Should the issuer's or guarantor's credit quality be downgraded below "A", the government entity must have withdrawal rights.
Sec. 3. Minnesota Statutes 2012, section 216C.436, subdivision 7, is amended to read:
Subd. 7. Repayment. An implementing entity that finances an energy improvement under this section must:
(1) secure payment with a lien against the
benefited qualifying real property; and
(2) collect repayments as a special assessment as provided for in section 429.101 or by charter, provided that special assessments may be made payable in up to 20 equal annual installments.
If the implementing entity is an authority, the local government that authorized the authority to act as implementing entity shall impose and collect special assessments necessary to pay debt service on bonds issued by the implementing entity under subdivision 8, and shall transfer all collections of the assessments upon receipt to the authority.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2012, section 373.01, subdivision 3, is amended to read:
Subd. 3. Capital notes. (a) A county board may, by resolution and without referendum, issue capital notes subject to the county debt limit to purchase capital equipment useful for county purposes that has an expected useful life at least equal to the term of the notes. The notes shall be payable in not more than ten years and shall be issued on terms and in a manner the board determines. A tax levy shall be made for payment of the principal and interest on the notes, in accordance with section 475.61, as in the case of bonds.
(b) For purposes of this subdivision, "capital equipment" means:
(1) public safety, ambulance, road construction or maintenance, and medical equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or unbundled, together with application development services and training related to the use of the computer hardware or software.
Sec. 5. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:
Subdivision 1. Definitions. For purposes of this section, the following terms have the meanings given.
(a) "Bonds" means an obligation as defined under section 475.51.
(b) "Capital improvement" means
acquisition or betterment of public lands, buildings, or other improvements
within the county for the purpose of a county courthouse, administrative
building, health or social service facility, correctional facility, jail, law
enforcement center, hospital, morgue, library, park, qualified indoor ice
arena, roads and bridges, public works facilities, fairground buildings, and
records and data storage facilities, and the acquisition of development
rights in the form of conservation easements under chapter 84C. An improvement must have an expected useful
life of five years or more to qualify. "Capital
improvement" does not include a recreation or sports facility building
(such as, but not limited to, a gymnasium, ice arena, racquet sports facility,
swimming pool, exercise room or health spa), unless the building is part of an
outdoor park facility and is incidental to the primary purpose of outdoor
recreation. For purposes of this
section, "capital improvement" includes expenditures for purposes
described in this paragraph that have been incurred by a county before approval
of a capital improvement plan, if such expenditures are included in a capital
improvement plan approved on or before the date of the public hearing under
subdivision 2 regarding issuance of bonds for such expenditures.
(c) "Metropolitan county" means a county located in the seven-county metropolitan area as defined in section 473.121 or a county with a population of 90,000 or more.
(d) "Population" means the population established by the most recent of the following (determined as of the date the resolution authorizing the bonds was adopted):
(1) the federal decennial census,
(2) a special census conducted under contract by the United States Bureau of the Census, or
(3) a population estimate made
either by the Metropolitan Council or by the state demographer under section 4A.02.
(e) "Qualified indoor ice arena" means a facility that meets the requirements of section 373.43.
(f) "Tax capacity" means total taxable market value, but does not include captured market value.
Sec. 6. Minnesota Statutes 2012, section 373.40, subdivision 2, is amended to read:
Subd. 2. Application
of election requirement. (a) Bonds
issued by a county to finance capital improvements under an approved capital
improvement plan are not subject to the election requirements of section 375.18
or 475.58. The bonds must be approved by
vote of at least three-fifths of the members of the county board. In the case of
a metropolitan county, the bonds must be approved by vote of at least
two-thirds of the members of the county board.
(b) Before issuance of bonds qualifying under this section, the county must publish a notice of its intention to issue the bonds and the date and time of a hearing to obtain public comment on the matter. The notice must be published in the official newspaper of the county or in a newspaper of general circulation in the county. The notice must be published at least 14, but not more than 28, days before the date of the hearing.
(c) A county may issue the bonds only upon
obtaining the approval of a majority of the voters voting on the question of
issuing the obligations, if a petition requesting a vote on the issuance is
signed by voters equal to five percent of the votes cast in the county in the
last county general election and is filed with the county auditor within
30 days after the public hearing. The
commissioner of revenue shall prepare a suggested form of the question to be
presented at the election. If the
county elects not to submit the question to the voters, the county shall not
propose the issuance of bonds under this section for the same purpose and in
the same amount for a period of 365 days from the date of receipt of the
petition. If the question of issuing the
bonds is submitted and not approved by the voters, the provisions of section
475.58, subdivision 1a, shall apply.
Sec. 7. Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision to read:
Subd. 10. Housing
improvement areas. (a) In
addition to its other powers, the Dakota County Community Development Agency
shall have all powers of a city under sections 428A.11 to 428A.21 in connection
with housing improvement areas in Dakota County.
(b) For purposes of the Dakota County
Community Development Agency's exercise of the powers granted in this
subdivision, references in sections 428A.11 to 428A.21 to:
(1) a "mayor" shall be
references to the chair of the board of commissioners of the Dakota County
Community Development Agency;
(2) a "council" shall be
references to the board of commissioners of the Dakota County Community
Development Agency; and
(3) a "city clerk" shall be
references to an official of the Dakota County Community Development Agency
designated by the executive director of the Dakota County Community Development
Agency.
(c) Notwithstanding sections 428A.11,
subdivision 3, and 428A.13, subdivision 1, the governing body of the Dakota
County Community Development Agency may adopt a resolution, rather than an
ordinance, establishing one or more housing improvement areas, and
"enabling ordinance" for purposes of sections 428A.11 to 428A.21
means a resolution under this clause.
(d) The community development
agency (1) shall send a copy of each petition for the establishment of a
housing improvement area to the city in which the proposed housing improvement
area is located, and (2) may not hold the public hearing required in section
428A.13, subdivision 2, fewer than 30 days after the date on which the related
application was sent pursuant to clause (1).
The community development agency may not establish a housing improvement
area if the applicable city council opposes the establishment by resolution
adopted within 30 days after the petition required to be sent pursuant to
clause (1).
Sec. 8. Minnesota Statutes 2012, section 410.32, is amended to read:
410.32
CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
(a) Notwithstanding any contrary provision of other law or charter, a home rule charter city may, by resolution and without public referendum, issue capital notes subject to the city debt limit to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or unbundled, together with application development services and training related to the use of the computer hardware and software.
(c) The equipment or software must have an expected useful life at least as long as the term of the notes.
(d) The notes shall be payable in not more than ten years and be issued on terms and in the manner the city determines. The total principal amount of the capital notes issued in a fiscal year shall not exceed 0.03 percent of the market value of taxable property in the city for that year.
(e) A tax levy shall be made for the payment of the principal and interest on the notes, in accordance with section 475.61, as in the case of bonds.
(f) Notes issued under this section shall require an affirmative vote of two-thirds of the governing body of the city.
(g) Notwithstanding a contrary provision of other law or charter, a home rule charter city may also issue capital notes subject to its debt limit in the manner and subject to the limitations applicable to statutory cities pursuant to section 412.301.
Sec. 9. Minnesota Statutes 2012, section 412.301, is amended to read:
412.301
FINANCING PURCHASE OF CERTAIN EQUIPMENT.
(a) The council may issue certificates of indebtedness or capital notes subject to the city debt limits to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or unbundled, together with application development services and training related to the use of the computer hardware or software.
(c) The
equipment or software must have an expected useful life at least as long as the
terms of the certificates or notes.
(d) Such certificates or notes shall be payable in not more than ten years and shall be issued on such terms and in such manner as the council may determine.
(e) If the amount of the certificates or notes to be issued to finance any such purchase exceeds 0.25 percent of the market value of taxable property in the city, they shall not be issued for at least ten days after publication in the official newspaper of a council resolution determining to issue them; and if before the end of that time, a petition asking for an election on the proposition signed by voters equal to ten percent of the number of voters at the last regular municipal election is filed with the clerk, such certificates or notes shall not be issued until the proposition of their issuance has been approved by a majority of the votes cast on the question at a regular or special election.
(f) A tax levy shall be made for the payment of the principal and interest on such certificates or notes, in accordance with section 475.61, as in the case of bonds.
Sec. 10. Minnesota Statutes 2012, section 473.39, is amended by adding a subdivision to read:
Subd. 1s. Obligations. After July 1, 2013, in addition to
other authority in this section, the council may issue certificates of
indebtedness, bonds, or other obligations under this section in an amount not
exceeding $35,800,000 for capital expenditures as prescribed in the council's
transit capital improvement program and for related costs, including the costs
of issuance and sale of the obligations.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies in the counties of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. This section is not effective if the
legislature authorizes and enacts issuance authority of at least $35,800,000 in
2013 H. F. No. 1444. If
the legislature authorizes and enacts issuance authority of less than
$35,800,000 in 2013 H. F. No. 1444, this section prevails,
regardless of order of enactment.
Sec. 11. Minnesota Statutes 2012, section 473.606, subdivision 3, is amended to read:
Subd. 3. Treasurer;
investments. The treasurer shall
receive and be responsible for all moneys of the corporation, from whatever
source derived, and the same shall be considered public funds. The treasurer shall disburse the moneys of
the corporation only on orders made by the executive and operating officer,
herein provided for, countersigned by such other officer or such employee of
the corporation as may be authorized and directed so to do by the corporation,
showing the name of the claimant and the nature of the claim. No disbursement shall be certified by such
officers until the same have been approved by said commissioners at a meeting
thereof. Whenever the executive director
of the corporation shall certify, pursuant to action taken by the commissioners
at a meeting thereof, that there are moneys and the amount thereof in the possession
of the treasurer not currently needed, then the treasurer may invest said
amount or any part thereof in:
(a) Treasury bonds, certificates of
indebtedness, bonds or notes of the United States of America, or bonds, notes
or certificates of indebtedness of the state of Minnesota, all of which must
mature not later than three years from the date of purchase.
(b) Bonds, notes, debentures or other
obligations issued by any agency or instrumentality of the United States or any
securities guaranteed by the United States government, or for which the credit
of the United States is pledged for the
payment of the principal and interest thereof, all of which must mature not
later than three years from date of purchase.
(c) Commercial paper of prime
quality, or rated among the top third of the quality categories, not applicable
to defaulted paper, as defined by a nationally recognized organization which
rates such securities as eligible for investment in the state employees
retirement fund except that any nonbanking issuing corporation, or parent
company in the case of paper issued by operating utility or finance
subsidiaries, must have total assets exceeding $500,000,000. Such commercial paper may constitute no more
than 30 percent of the book value of the fund at the time of purchase, and the
commercial paper of any one corporation shall not constitute more than four
percent of the book value of the fund at the time of such investment.
(d) Any securities eligible under the
preceding provisions, purchased with simultaneous repurchase agreement under
which the securities will be sold to the particular dealer on a specified date
at a predetermined price. In such
instances, all maturities of United States government securities, or securities
issued or guaranteed by the United States government or an agency thereof, may
be purchased so long as any such securities which mature later than three years
from the date of purchase have a current market value exceeding the purchase
price by at least five percent on the date of purchase, and so long as such
repurchase agreement involving securities extending beyond three years in
maturity be limited to a period not exceeding 45 days.
(e) Certificates of deposit issued by
any official depository of the commission.
The commission may purchase certificates of deposit from a depository
bank in an amount exceeding that insured by federal depository insurance to the
extent that those certificates are secured by collateral maintained by the bank
in a manner as prescribed for investments of the State Board of Investment.
(f) securities approved for
investment under section 118A.04.
Whenever it shall appear to the commissioners that any invested funds are needed for current purposes before the maturity dates of the securities held, they shall cause the executive director to so certify to the treasurer and it shall then be the duty of the treasurer to order the sale or conversion into cash of the securities in the amount so certified. All interest and profit on said investments shall be credited to and constitute a part of the funds of the commission. The treasurer shall keep an account of all moneys received and disbursed, and at least once a year, at times to be designated by the corporation, file with the secretary a financial statement of the corporation, showing in appropriate and identifiable groupings the receipts and disbursements since the last approved statements; moneys on hand and the purposes for which the same are appropriated; and shall keep an account of all securities purchased as herein provided, the funds from which purchased and the interest and profit which may have accrued thereon, and shall accompany the financial statement aforesaid with a statement setting forth such account. The corporation may pay to the treasurer from time to time compensation in such amount as it may determine to cover clerk hire to enable the treasurer to carry out duties and those required in connection with bonds issued by the corporation as in this act authorized.
Sec. 12. Minnesota Statutes 2012, section 474A.04, subdivision 1a, is amended to read:
Subd. 1a. Entitlement
reservations; carryforward; deduction.
Any amount returned by an entitlement issuer before July 15 shall be
reallocated through the housing pool. Any
amount returned on or after July 15 shall be reallocated through the unified
pool. An amount returned after the last
Monday in November shall be reallocated to the Minnesota Housing Finance Agency. Any amount of bonding authority that an
entitlement issuer carries forward under federal tax law that is not
permanently issued or for which the governing body of the entitlement issuer
has not enacted a resolution electing to use the authority for mortgage credit
certificates and has not provided a notice of issue to the commissioner before
4:30 p.m. on the last business day in December of the succeeding calendar year
shall be deducted from the entitlement allocation for that entitlement issuer
in the next succeeding calendar year. Any
amount deducted from an entitlement issuer's allocation under this subdivision
shall be reallocated to other entitlement issuers, the housing pool, the small
issue pool, and the public facilities pool on a proportional basis consistent
with section 474A.03.
EFFECTIVE
DATE. This section is effective
the day following final enactment and applies to any bonding authority
allocated in 2012 and subsequent years.
Sec. 13. Minnesota Statutes 2012, section 474A.062, is amended to read:
474A.062
MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY ISSUANCE EXEMPTION.
The Minnesota Office of Higher Education is
exempt from the 120-day issuance requirements in this chapter and may carry
forward allocations for student loan bonds into one successive calendar year,
subject to carryforward notice requirements of section 474A.131, subdivision 2.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to any bonding
authority allocated in 2012 and subsequent years.
Sec. 14. Minnesota Statutes 2012, section 474A.091, subdivision 3a, is amended to read:
Subd. 3a. Mortgage bonds. (a) Bonding authority remaining in the unified pool on October 1 is available for single-family housing programs for cities that applied in January and received an allocation under section 474A.061, subdivision 2a, in the same calendar year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage bonds pursuant to this section, minus any amounts for a city or consortium that intends to issue bonds on its own behalf under paragraph (c).
(b) The agency may issue bonds on behalf of participating cities. The agency shall request an allocation from the commissioner for all applicants who choose to have the agency issue bonds on their behalf and the commissioner shall allocate the requested amount to the agency. Allocations shall be awarded by the commissioner each Monday commencing on the first Monday in October through the last Monday in November for applications received by 4:30 p.m. on the Monday of the week preceding an allocation.
For cities who choose to have the agency issue bonds on their behalf, allocations will be made loan by loan, on a first-come, first-served basis among the cities. The agency shall submit an application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal to two percent of the requested allocation to the commissioner when requesting an allocation from the unified pool. After awarding an allocation and receiving a notice of issuance for mortgage bonds issued on behalf of the participating cities, the commissioner shall transfer the application deposit to the Minnesota Housing Finance Agency.
For purposes of paragraphs (a) to (d), "city" means a county or a consortium of local government units that agree through a joint powers agreement to apply together for single-family housing programs, and has the meaning given it in section 462C.02, subdivision 6. "Agency" means the Minnesota Housing Finance Agency.
(c) Any city that received an allocation pursuant to section 474A.061, subdivision 2a, paragraph (f), in the current year that wishes to receive an additional allocation from the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement shall notify the Minnesota Housing Finance Agency by the third Monday in September. The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount requested, or (ii) the product of the total amount available for mortgage bonds from the unified pool, multiplied by the ratio of the population of each city that applied in January and received an allocation under section 474A.061, subdivision 2a, in the same calendar year, as determined by the most recent estimate of the city's population released by the state demographer's office to the total of the population of all the cities that applied in January and received an allocation under section 474A.061, subdivision 2a, in the same calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers agreement is located within a county that has also chosen to issue bonds on its own behalf or through a joint powers agreement, the city's population will be deducted from the county's population in calculating the amount of allocations under this paragraph.
The Minnesota Housing Finance Agency shall notify each city choosing to issue bonds on its own behalf or pursuant to a joint powers agreement of the amount of its allocation by October 15. Upon determining the amount of the allocation of each choosing to issue bonds on its own behalf or through a joint powers agreement, the agency shall forward a list specifying the amounts allotted to each city.
A city that chooses to issue bonds on its own behalf or through a joint powers agreement may request an allocation from the commissioner by forwarding an application with an application fee pursuant to section 474A.03, subdivision 4, and an application deposit equal to two percent of the requested amount to the commissioner no later than 4:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that choose to issue bonds on their own behalf shall be awarded by the commissioner on the first Monday after October 15 through the last Monday in November. No city may receive an allocation from the commissioner after the last Monday in November. The commissioner shall allocate the requested amount to the city or cities subject to the limitations under this subdivision.
If a city issues mortgage bonds from an allocation received under this paragraph, the issuer must provide for the recycling of funds into new loans. If the issuer is not able to provide for recycling, the issuer must notify the commissioner in writing of the reason that recycling was not possible and the reason the issuer elected not to have the Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money generated from the repayment and prepayment of loans for further eligible loans or for the redemption of bonds and the issuance of current refunding bonds.
(d) No entitlement city or county or city in an entitlement county may apply for or be allocated authority to issue mortgage bonds or use mortgage credit certificates from the unified pool.
(e) An allocation awarded to the agency for
mortgage bonds under this section may be carried forward by the agency into
the next succeeding calendar year subject to notice requirements under
section 474A.131 and is available until the last business day in December of
that succeeding calendar year.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies to any bonding
authority allocated in 2012 and subsequent years.
Sec. 15. Minnesota Statutes 2012, section 475.521, subdivision 1, is amended to read:
Subdivision 1. Definitions. For purposes of this section, the following terms have the meanings given.
(a) "Bonds" mean an obligation defined under section 475.51.
(b) "Capital improvement" means
acquisition or betterment of public lands, buildings or other improvements for
the purpose of a city hall, town hall, library, public safety facility, and
public works facility. An improvement
must have an expected useful life of five years or more to qualify. Capital improvement does not include light
rail transit or any activity related to it, or a park, road, bridge,
administrative building other than a city or town hall, or land for any of
those facilities. For purposes of this
section, "capital improvement" includes expenditures for purposes
described in this paragraph that have been incurred by a municipality before
approval of a capital improvement plan, if such expenditures are included in a
capital improvement plan approved on or before the date of the public hearing
under subdivision 2 regarding issuance of bonds for such expenditures.
(c) "Municipality" means a home rule charter or statutory city or a town described in section 368.01, subdivision 1 or 1a.
Sec. 16. Minnesota Statutes 2012, section 475.521, subdivision 2, is amended to read:
Subd. 2. Election requirement. (a) Bonds issued by a municipality to finance capital improvements under an approved capital improvements plan are not subject to the election requirements of section 475.58. The bonds must be approved by an affirmative vote of three-fifths of the members of a five-member governing body. In the case of a governing body having more or less than five members, the bonds must be approved by a vote of at least two-thirds of the members of the governing body.
(b) Before the issuance of bonds qualifying under this section, the municipality must publish a notice of its intention to issue the bonds and the date and time of the hearing to obtain public comment on the matter. The notice must be published in the official newspaper of the municipality or in a newspaper of general circulation in the municipality. Additionally, the notice may be posted on the official Web site, if any, of the municipality. The notice must be published at least 14 but not more than 28 days before the date of the hearing.
(c) A municipality may issue the bonds only
after obtaining the approval of a majority of the voters voting on the question
of issuing the obligations, if a petition requesting a vote on the issuance is
signed by voters equal to five percent of the votes cast in the municipality in
the last municipal general election and is filed with the clerk within
30 days after the public hearing. The
commissioner of revenue shall prepare a suggested form of the question to be
presented at the election. If the
municipality elects not to submit the question to the voters, the municipality
shall not propose the issuance of bonds under this section for the same purpose
and in the same amount for a period of 365 days from the date of receipt of the
petition. If the question of issuing the
bonds is submitted and not approved by the voters, the provisions of section
475.58, subdivision 1a, shall apply.
Sec. 17. Minnesota Statutes 2012, section 475.58, subdivision 3b, is amended to read:
Subd. 3b. Street reconstruction and bituminous overlays. (a) A municipality may, without regard to the election requirement under subdivision 1, issue and sell obligations for street reconstruction or bituminous overlays, if the following conditions are met:
(1) the streets are reconstructed or overlaid under a street reconstruction or overlay plan that describes the street reconstruction or overlay to be financed, the estimated costs, and any planned reconstruction or overlay of other streets in the municipality over the next five years, and the plan and issuance of the obligations has been approved by a vote of all of the members of the governing body present at the meeting following a public hearing for which notice has been published in the official newspaper at least ten days but not more than 28 days prior to the hearing; and
(2) if a petition requesting a vote on the
issuance is signed by voters equal to five percent of the votes cast in the
last municipal general election and is filed with the municipal clerk within 30
days of the public hearing, the municipality may issue the bonds only after
obtaining the approval of a majority of the voters voting on the question of
the issuance of the obligations. If
the municipality elects not to submit the question to the voters, the municipality
shall not propose the issuance of bonds under this section for the same purpose
and in the same amount for a period of 365 days from the date of receipt of the
petition. If the question of issuing the
bonds is submitted and not approved by the voters, the provisions of section
475.58, subdivision 1a, shall apply.
(b) Obligations issued under this subdivision are subject to the debt limit of the municipality and are not excluded from net debt under section 475.51, subdivision 4.
(c) For purposes of this subdivision, street reconstruction and bituminous overlays includes utility replacement and relocation and other activities incidental to the street reconstruction, turn lanes and other improvements having a
substantial public safety
function, realignments, other modifications to intersect with state and county
roads, and the local share of state and county road projects. For purposes of this subdivision,
"street reconstruction" includes expenditures for street
reconstruction that have been incurred by a municipality before approval of a
street reconstruction plan, if such expenditures are included in a street
reconstruction plan approved on or before the date of the public hearing under
paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
(d) Except in the case of turn lanes, safety improvements, realignments, intersection modifications, and the local share of state and county road projects, street reconstruction and bituminous overlays does not include the portion of project cost allocable to widening a street or adding curbs and gutters where none previously existed.
Sec. 18. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974, chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788, section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws 1988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998, chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to read:
Subd. 2. For each of the years 2003 to 2013 to
2024, the city of St. Paul is authorized to issue bonds in the
aggregate principal amount of $20,000,000 for each year.
EFFECTIVE
DATE. This section is
effective the day after compliance by the governing body of the city of St. Paul
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Sec. 19. CARRYFORWARD
OF BONDING AUTHORITY FOR 2011; NO DEDUCTION FROM ENTITLEMENT ALLOCATION.
Notwithstanding Minnesota Statutes,
section 474A.04, subdivision 1a, bonding authority that was allocated to an
entitlement issuer in 2011 and that was carried forward under federal tax law,
but for which the entitlement issuer did not provide a notice of issue to the
commissioner of management and budget before 4:30 p.m. on the last business day of December 2012 must not be deducted
from the entitlement allocation for that entitlement issuer in 2013.
EFFECTIVE
DATE. This section is
effective the day following final enactment and applies retroactively to
rescind any reallocation by the commissioner of management and budget under
Minnesota Statues, section 474A.04, subdivision 1a, of any amounts so deducted.
Sec. 20. LOCAL
MATCH; INDEPENDENT SCHOOL DISTRICT NO. 435; WAUBUN-OGEMA-WHITE EARTH.
(a) Independent School District No. 435,
Waubun-Ogema-White Earth, may expand classroom space at its Ogema Elementary
site using a grant of $551,532 that was awarded to the district by the
Department of Human Services on August 12, 2012, pursuant to a grant agreement
as provided by Minnesota Statutes, section 16A.695, subdivision 9. Notwithstanding Minnesota Statutes, section
16A.695, subdivision 6, to satisfy the match requirements of the grant
agreement, the district may use a lease-purchase agreement. Notwithstanding Minnesota Statutes, section
465.71, the lease-purchase agreement must provide that the title to the
lease-purchased property must be held by the district.
(b) Notwithstanding Minnesota Statutes,
section 126C.13, subdivision 4, if the school district enters a lease-purchase
agreement to satisfy the local match under paragraph (a), but fails to make a
lease-purchase payment, the commissioner of education shall reduce its general
education aid under Minnesota Statutes, section 126C.13, subdivision 4, by the
amount of the lease-purchase payment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 21. LEGISLATIVE
OFFICE FACILITIES.
(a) The commissioner of administration
may enter into a long-term lease-purchase agreement for a term of up to 25
years, to predesign, design, construct, and equip offices, hearing rooms, and
parking facilities for legislative and other functions. The facility must be located on the block
bounded by Sherburne Avenue on the north, Park Street on the west, University
Avenue on the south, and North Capitol Boulevard on the east. The legislative office facility must provide
office accommodations for all senators and senate staff who do not have offices
in the Capitol building and on-site parking facilities for all members and
staff and disabled visitors to senate offices.
A parking structure may also be built on the state-owned land located in
the block bounded by Sherburne Avenue on the north, Park Street on the east,
University Avenue on the south, and Rice Street on the west. The commissioner of management and budget may
issue lease revenue bonds or certificates of participation associated with the
lease-purchase agreement. The lease-purchase
agreements must not be terminated, except for nonappropriation of money. The lease-purchase agreements must provide
the state with a unilateral right to purchase the leased premises at specified
times for specified amounts. The
lease-purchase agreements are exempt from Minnesota Statutes, section 16B.24,
subdivisions 6 and 6a.
(b) The facilities under the
lease-purchase agreement are exempt from the design competition requirement
under Minnesota Statutes, section 15B.10.
Notwithstanding anything to the contrary under Minnesota Statutes,
sections 16C.32 and 16C.33, if the commissioner of administration elects to use
a design-build delivery method to design and construct one or more facilities
under this appropriation, the Capitol Area Architectural and Planning Board, in
cooperation with the commissioner, shall create a selection committee to act as
the board under Minnesota Statutes, sections 16C.32 and 16C.33, for the design
and construction of the facilities. Notwithstanding
Minnesota Statutes, section 16B.33, if the commissioner elects to contract with
a primary designer to design one or more facilities under this appropriation,
the Capitol Area Architectural and Planning Board, in cooperation with the
commissioner, shall create a selection committee to conduct the selection
process in accordance with standards under Minnesota Statutes, chapters 15B,
16B, and 16C. A selection committee
created under this section must contain no more than seven members, including
at least three representatives designated by the senate Committee on Rules and
Administration and three representatives designated by the speaker of the
house.
(c) Notwithstanding any provision to
the contrary in Minnesota Statutes, sections 16C.32 and 16C.33, if the
commissioner of administration elects to use a design-build delivery method to
design, construct, and equip one or more facilities and associated
infrastructure to provide audio and video broadcast services for the Capitol
building, State Office Building, and a new legislative office building, if
applicable, the commissioner shall create a selection committee to act as the
board under Minnesota Statutes, sections 16C.32 and 16C.33, to design, build,
and equip the facilities. The selected
design-builder may self-perform trade work or name an audio and video
subcontractor as a member of the design-builder's team. If an audio and video subcontractor is named
as a member of the design-builder's team, the design-builder is not required to
competitively bid the trade work. Notwithstanding
Minnesota Statutes, section 16C.33, subdivision 5, paragraph (b), after
obtaining and evaluating qualifications from each design-builder, in accordance
with the weighted criteria and subcriteria and procedures provided in the
request for qualifications, the selection committee shall select a short list
of up to five proposals. If the
commissioner does not receive any proposals, the commissioner may either:
(1) solicit new proposals;
(2) revise the request for
qualifications and thereafter solicit new proposals using the revised request
for qualifications; or
(3) request selection of a primary
designer under Minnesota Statutes, section 16B.33, 16C.08, or 16C.095, and
proceed with competitive bidding pursuant to Minnesota Statutes, sections
16C.25 to 16C.29.
(d) The commissioner of
administration may enter into a ground lease for state-owned property in the
capitol area in conjunction with the execution of a lease-purchase agreement
entered into under this section for any improvements constructed on that site. Notwithstanding the requirements of Minnesota
Statutes, section 16A.695, subdivision 2, paragraph (b), the ground lease must
be for a term equal to the term of the lease-purchase agreement, and must
include an option to purchase the land at its then fair market value, if the
improvements are not purchased by the state at the end of the term of the
lease-purchase agreement, or at any earlier time that the lease-purchase
agreement is terminated.
(e) The commissioner of administration
must not prepare final plans and specifications for any construction authorized
under this section until the program plan and cost estimates for all elements
necessary to complete the project have been approved by the senate Committee on
Rules and Administration.
(f) $3,000,000 is appropriated in
fiscal year 2014 from the general fund to the commissioner of administration
for predesign and design of facilities authorized under paragraph (a). This appropriation is available for
expenditure the day following final enactment and until June 30, 2015.
(g) The commissioner of administration
may reserve a portion of money from appropriations for office space costs of
the legislature to fund future repairs for facilities constructed under the
authority provided in this section. Money
reserved under this paragraph must be credited to a segregated account for each
building in the special revenue fund and is appropriated to the commissioner to
make the repairs. When the state
acquires title to a building with an account established under this paragraph,
the account for that building must be abolished and the balance remaining in
the account must be transferred to the appropriate asset preservation and
replacement account.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 22. APPROPRIATION;
RELOCATION EXPENSES.
$1,860,000 is appropriated from the
general fund to the commissioner of administration for rent loss and relocation
expenses related to the Capitol renovation project for fiscal year 2014. Notwithstanding Minnesota Statutes, section
16A.642, this appropriation is available until June 30, 2015. The base for this appropriation is $1,380,000
in fiscal year 2016, $960,000 in fiscal year 2017, and $0 after that.
ARTICLE 13
MISCELLANEOUS PROVISIONS
Section 1. Minnesota Statutes 2012, section 16A.727, is amended to read:
16A.727
BACKUP REVENUES; FOOTBALL STADIUM FUNDING.
(a) If the commissioner of management and
budget determines that the amount of revenues under section 297E.021,
subdivision 2, for the next fiscal year, plus $20,000,000, will be less
than the amounts specified in section 297E.021, subdivision 3, paragraph
(a), clause (1), items (i) to (iii), for that fiscal year, the commissioner
may implement the revenue options authorized in Laws 2012, chapter 299, article
6; provided that this section does not constitute a pledge of tax revenues as
security for the payment of principal and interest on appropriation bonds
issued under section 16A.695. If the commissioner
determines to exercise the authority under this section for a fiscal year, the
commissioner must implement the revenue options, as necessary, in the following
order:
(1) a sports-themed lottery game under section 349A.20; and
(2) a tax on suites as provided under section 473J.14.
(b) Revenue raised under the authority granted by this section must be deposited in the general fund.
(c) If the commissioner determines to implement one or more of the revenue options authorized by this section, each subsequent year the commissioner must determine if the revenue is needed and will be imposed and collected for the next fiscal year. If the commissioner determines that one or more revenue options implemented for a fiscal year are not needed for a subsequent fiscal year, the commissioner must terminate them in the reverse order they were required to be implemented by paragraph (a) with the last option implemented terminated first and so forth.
(d) Before implementing a revenue source authorized under this section, the commissioner must report the intent to do so to the Legislative Commission on Planning and Fiscal Policy. The commissioner must inform the commission of determinations to continue or discontinue each revenue source for a subsequent fiscal year.
(e) The provisions of this section no longer apply after the Minnesota Sports Facilities Authority certifies to the commissioner that it has determined that the revenues of the general fund under section 297A.994, the increased revenues under chapter 297E, and other available resources of the authority provide adequate financial security for the state and the authority.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. [116V.03]
APPROPRIATION.
$1,000,000 in fiscal year 2014 and each
year thereafter is appropriated from the general fund to the commissioner of
revenue for transfer to the agricultural project utilization account in the
special revenue fund for the Agricultural Utilization Research Institute
established under section 116V.01.
Sec. 3. Minnesota Statutes 2012, section 237.52, subdivision 3, is amended to read:
Subd. 3. Collection. Every provider of services capable of originating a TRS call, including cellular communications and other nonwire access services, in this state shall, except as provided in subdivision 3a, collect the charges established by the commission under subdivision 2 and transfer amounts collected to the commissioner of public safety in the same manner as provided in section 403.11, subdivision 1, paragraph (d). The commissioner of public safety must deposit the receipts in the fund established in subdivision 1.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 4. Minnesota Statutes 2012, section 237.52, is amended by adding a subdivision to read:
Subd. 3a. Fee
for prepaid wireless telecommunications service. The fee established in subdivision 2
does not apply to prepaid wireless telecommunications services as defined in
section 403.02, subdivision 17b, which are instead subject to the prepaid
wireless telecommunications access Minnesota fee established in section
403.161, subdivision 1, paragraph (b). Collection,
remittance, and deposit of prepaid wireless telecommunications access Minnesota
fees are governed by sections 403.161 and 403.162.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 5. Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read:
Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly stated otherwise, "Minnesota tax laws" means:
(1) the taxes, refunds, and
fees administered by or paid to the commissioner under chapters 115B, 289A
(except taxes imposed under sections 298.01, 298.015, and 298.24), 290, 290A,
291, 295, 297A, 297B, and 297H, and 403, or any similar Indian
tribal tax administered by the commissioner pursuant to any tax agreement
between the state and the Indian tribal government, and includes any laws for
the assessment, collection, and enforcement of those taxes, refunds, and fees;
and
(2) section 273.1315.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 6. Minnesota Statutes 2012, section 270B.12, subdivision 4, is amended to read:
Subd. 4. Department
of Public Safety. The commissioner may
disclose return information to the Department of Public Safety for the purpose
of and to the extent necessary to administer section sections
270C.725 and 403.16 to 403.162.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 7. Minnesota Statutes 2012, section 270C.03, subdivision 1, is amended to read:
Subdivision 1. Powers and duties. The commissioner shall have and exercise the following powers and duties:
(1) administer and enforce the assessment and collection of taxes;
(2) make determinations, corrections, and assessments with respect to taxes, including interest, additions to taxes, and assessable penalties;
(3) use statistical or other sampling techniques consistent with generally accepted auditing standards in examining returns or records and making assessments;
(4) investigate the tax laws of other states and countries, and formulate and submit to the legislature such legislation as the commissioner may deem expedient to prevent evasions of state revenue laws and to secure just and equal taxation and improvement in the system of state revenue laws;
(5) consult and confer with the governor upon the subject of taxation, the administration of the laws in regard thereto, and the progress of the work of the department, and furnish the governor, from time to time, such assistance and information as the governor may require relating to tax matters;
(6) execute and administer any agreement with the secretary of the treasury or the Bureau of Alcohol, Tobacco, Firearms and Explosives in the Department of Justice of the United States or a representative of another state regarding the exchange of information and administration of the state revenue laws;
(7) require town, city, county, and other public officers to report information as to the collection of taxes received from licenses and other sources, and such other information as may be needful in the work of the commissioner, in such form as the commissioner may prescribe;
(8) authorize the use of unmarked motor vehicles to conduct seizures or criminal investigations pursuant to the commissioner's authority;
(9) authorize the
participation in audits performed by the Multistate Tax Commission. For the purposes of chapter 270B, the
Multistate Tax Commission will be considered to be a state for the purposes of
auditing corporate sales, excise, and income tax returns.
(10) maintain toll-free telephone access for taxpayer assistance for calls from locations within the state; and
(10) (11) exercise other
powers and authority and perform other duties required of or imposed upon the
commissioner by law.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2012, section 271.06, subdivision 2a, as added by Laws 2013, chapter 36, section 1, is amended to read:
Subd. 2a. Timely
mailing treated as timely filing. (a)
If, after the period prescribed by subdivision 2, the original notice of
appeal, proof of service upon the commissioner, and filing fee are delivered by
mail in the United States mail to the Tax Court administrator or
the court administrator of district court acting as court administrator of the
Tax Court, then the date of filing is the date of the United States postmark
stamped on the envelope or other appropriate wrapper in which the notice of
appeal, proof of service upon the commissioner, and filing fee are mailed.
(b) This subdivision applies only if the postmark date falls within the period prescribed by subdivision 2 and the original notice of appeal, proof of service upon the commissioner, and filing fee are, within the time prescribed by subdivision 2, deposited in the mail in the United States in an envelope or other appropriate wrapper, postage prepaid, properly addressed to the Tax Court administrator or the court administrator of district court acting as court administrator of the Tax Court.
(c) Only the postmark of the United States Postal Service qualifies as proof of timely mailing under this subdivision. Private postage meters do not qualify as proof of timely filing under this subdivision. If the original notice of appeal, proof of service upon the commissioner, and filing fee are sent by United States registered mail, the date of registration is the postmark date. If the original notice of appeal, proof of service upon the commissioner, and filing fee are sent by United States certified mail and the sender's receipt is postmarked by the postal employee to whom the envelope containing the original notice of appeal, proof of service upon the commissioner, and filing fee is presented, the date of the United States postmark on the receipt is the postmark date.
(d) A reference in this section to mail
in the United States mail must be treated as including a reference
to any designated delivery service and a reference in this section to a
postmark by the United States Postal Service must be treated as including a
reference to any date recorded or marked by any designated delivery service in
accordance with section 7502(f) of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective for filings delivered by the United States Postal Service with a
postmark date after August 1, 2013.
Sec. 9. Minnesota Statutes 2012, section 297E.021, subdivision 3, is amended to read:
Subd. 3. Available revenues. For purposes of this section, "available revenues" equals the amount determined under subdivision 2, plus up to $20,000,000 each fiscal year from the taxes imposed under section 290.06, subdivision 1:
(1) reduced by the following amounts paid for the fiscal year under:
(i) the appropriation to principal and interest on appropriation bonds under section 16A.965, subdivision 8;
(ii) the appropriation from the general fund to make operating expense payments under section 473J.13, subdivision 2, paragraph (b);
(iii) the appropriation for contributions to the capital reserve fund under section 473J.13, subdivision 4, paragraph (c);
(iv) the appropriations under Laws 2012, chapter 299, article 4, for administration and any successor appropriation;
(v) the reduction in revenues resulting from the sales tax exemptions under section 297A.71, subdivision 43;
(vi) reimbursements authorized by section 473J.15, subdivision 2, paragraph (d);
(vii) the compulsive gambling appropriations under section 297E.02, subdivision 3, paragraph (c), and any successor appropriation; and
(viii) the appropriation for the city of St. Paul under section 16A.726, paragraph (c); and
(2) increased by the revenue deposited in the general fund under section 297A.994, subdivision 4, clauses (1) to (3), for the fiscal year.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision to read:
Subd. 17b. Prepaid
wireless telecommunications service.
"Prepaid wireless telecommunications service" means a
wireless telecommunications service that allows the caller to dial 911 to
access the 911 system, which service must be paid for in advance and is:
(1) sold in predetermined units or
dollars of which the number declines with use in a known amount; or
(2) provides unlimited use for a
predetermined time period.
The inclusion of nontelecommunications
services, including the download of digital products delivered electronically,
content, and ancillary services, with a prepaid wireless telecommunications
service does not preclude that service from being considered a prepaid wireless
telecommunications service under this chapter.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 11. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision to read:
Subd. 20a. Wireless
telecommunications service. Wireless
telecommunications service means a commercial mobile radio service, as that
term is defined in United States Code, title 47, section 332, subsection (d),
including all broadband personal communication services, wireless radio
telephone services, and geographic area specialized mobile radio licensees,
that offer real-time, two-way voice service interconnected with the public
switched telephone network.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 12. Minnesota Statutes 2012, section 403.02, subdivision 21, is amended to read:
Subd. 21. Wireless
telecommunications service provider. "Wireless
telecommunications service provider" means a provider of commercial
mobile radio services, as that term is defined in United States Code, title 47,
section 332, subsection (d), including all broadband personal communications
services, wireless radio telephone services, geographic area specialized and
enhanced specialized mobile radio services, and incumbent wide area specialized
mobile radio licensees, that offers real-time, two-way voice service
interconnected with the public switched telephone network and that is doing
business in the state of Minnesota wireless telecommunications service.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 13. Minnesota Statutes 2012, section 403.06, subdivision 1a, is amended to read:
Subd. 1a. Biennial
budget; annual financial report. The
commissioner shall prepare a biennial budget for maintaining the 911 system. By December 15 of each year, the commissioner
shall submit a report to the legislature detailing the expenditures for
maintaining the 911 system, the 911 fees collected, the balance of the 911
fund, and the 911-related administrative expenses of the commissioner,
and the most recent forecast of revenues and expenditures for the 911 emergency
telecommunications service account, including a separate projection of E911
fees from prepaid wireless customers and projections of year-end fund balances. The commissioner is authorized to expend money that has been appropriated to pay for
the maintenance, enhancements, and expansion of the 911 system.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 14. Minnesota Statutes 2012, section 403.11, subdivision 1, is amended to read:
Subdivision 1. Emergency telecommunications service fee; account. (a) Each customer of a wireless or wire-line switched or packet-based telecommunications service provider connected to the public switched telephone network that furnishes service capable of originating a 911 emergency telephone call is assessed a fee based upon the number of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing maintenance and related improvements for trunking and central office switching equipment for 911 emergency telecommunications service, to offset administrative and staffing costs of the commissioner related to managing the 911 emergency telecommunications service program, to make distributions provided for in section 403.113, and to offset the costs, including administrative and staffing costs, incurred by the State Patrol Division of the Department of Public Safety in handling 911 emergency calls made from wireless phones.
(b) Money remaining in the 911 emergency telecommunications service account after all other obligations are paid must not cancel and is carried forward to subsequent years and may be appropriated from time to time to the commissioner to provide financial assistance to counties for the improvement of local emergency telecommunications services. The improvements may include providing access to 911 service for telecommunications service subscribers currently without access and upgrading existing 911 service to include automatic number identification, local location identification, automatic location identification, and other improvements specified in revised county 911 plans approved by the commissioner.
(c) The fee may not be less than eight cents nor more than 65 cents a month until June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30, 2009, not less than eight cents nor more than 85 cents a month until June 30, 2010, and not less than eight cents nor more than 95 cents a month on or after July 1, 2010, for each customer access line or other basic access service, including trunk equivalents as designated by the Public Utilities Commission for access charge purposes and including wireless telecommunications services. With the approval of the commissioner of management and budget, the commissioner of public safety shall establish the amount of the fee within the limits specified and inform the companies and carriers of the amount to be collected. When the revenue bonds authorized under section 403.27, subdivision 1, have been fully paid or defeased, the
commissioner shall reduce the fee to reflect that debt service on the bonds is no longer needed. The commissioner shall provide companies and carriers a minimum of 45 days' notice of each fee change. The fee must be the same for all customers, except that the fee imposed under this subdivision does not apply to prepaid wireless telecommunications service, which is instead subject to the fee imposed under section 403.161, subdivision 1, paragraph (a).
(d) The fee must be collected by each wireless or wire-line telecommunications service provider subject to the fee. Fees are payable to and must be submitted to the commissioner monthly before the 25th of each month following the month of collection, except that fees may be submitted quarterly if less than $250 a month is due, or annually if less than $25 a month is due. Receipts must be deposited in the state treasury and credited to a 911 emergency telecommunications service account in the special revenue fund. The money in the account may only be used for 911 telecommunications services.
(e) This subdivision does not apply to customers of interexchange carriers.
(f) The installation and recurring charges for integrating wireless 911 calls into enhanced 911 systems are eligible for payment by the commissioner if the 911 service provider is included in the statewide design plan and the charges are made pursuant to contract.
(g) Competitive local exchanges carriers holding certificates of authority from the Public Utilities Commission are eligible to receive payment for recurring 911 services.
EFFECTIVE
DATE. This section is effective
January 1, 2014.
Sec. 15. Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision to read:
Subd. 3d. Eligible
telecommunications carrier; requirement.
No wireless communications provider may provide
telecommunications services under a designation of eligible telecommunications
carrier, as provided under Minnesota Rule 7811.1400, until and unless the
commissioner of public safety certifies to the chair of the public utilities
commission that the wireless telecommunications provider is not in arrears in
amounts owed to the 911 emergency telecommunications service account in the
special revenue fund.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision to read:
Subd. 6. Report. (a) Beginning September 1, 2013, and
continuing semiannually thereafter, each wireless telecommunications service
provider shall report to the commissioner, based on the mobile telephone
number, both the total number of prepaid wireless telecommunications
subscribers sourced to Minnesota and the total number of wireless
telecommunications subscribers sourced to Minnesota. The report must be filed on the same schedule
as Federal Communications Commission Form 477.
(b) The commissioner shall make a
standard form available to all wireless telecommunications service providers
for submitting information required to compile the report required under this
subdivision.
(c) The information provided to the
commissioner under this subdivision is considered trade secret information
under section 13.37 and may only be used for purposes of administering this
chapter.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 17. [403.16]
DEFINITIONS.
Subdivision 1. Scope. For the purposes of sections 403.16 to
403.164, the terms defined in this section have the meanings given them.
Subd. 2. Consumer. "Consumer" means a person
who purchases prepaid wireless telecommunications service in a retail
transaction.
Subd. 3. Department. "Department" means the
Department of Revenue.
Subd. 4. Prepaid
wireless E911 fee. "Prepaid
wireless E911 fee" means the fee that is required to be collected by a
seller from a consumer as established in section 403.161, subdivision 1,
paragraph (a).
Subd. 5. Prepaid
wireless telecommunications access Minnesota fee. "Prepaid wireless
telecommunications access Minnesota fee" means the fee that is required to
be collected by a seller from a consumer as established in section 403.161,
subdivision 1, paragraph (b).
Subd. 6. Provider. "Provider" means a person
that provides prepaid wireless telecommunications service under a license
issued by the Federal Communications Commission.
Subd. 7. Retail
transaction. "Retail
transaction" means the purchase of prepaid wireless telecommunications
service from a seller for any purpose other than resale.
Subd. 8. Seller. "Seller" means a person who
sells prepaid wireless telecommunications service to another person.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 18. [403.161]
PREPAID WIRELESS FEES IMPOSED; COLLECTION; REMITTANCE.
Subdivision 1. Fees
imposed. (a) A prepaid
wireless E911 fee of 80 cents per retail transaction is imposed on prepaid
wireless telecommunications service until the fee is adjusted as an amount per
retail transaction under subdivision 7.
(b) A prepaid wireless
telecommunications access Minnesota fee, in the amount of the monthly charge
provided for in section 237.52, subdivision 2, is imposed on each retail
transaction for prepaid wireless telecommunications service until the fee is
adjusted as an amount per retail transaction under subdivision 7.
Subd. 2. Exemption. The fees established under subdivision
1 are not imposed on a minimal amount of prepaid wireless telecommunications
service that is sold with a prepaid wireless device and is charged a single
nonitemized price, and a seller may not apply the fees to such a transaction. For purposes of this subdivision, a minimal
amount of service means an amount of service denominated as either ten minutes
or less or $5 or less.
Subd. 3. Fee
collected. The prepaid
wireless E911 and telecommunications access Minnesota fees must be collected by
the seller from the consumer for each retail transaction occurring in this
state. The amount of each fee must be
combined into one amount, which must be separately stated on an invoice,
receipt, or other similar document that is provided to the consumer by the seller.
Subd. 4. Sales
and use tax treatment. For
purposes of this section, a retail transaction conducted in person by a
consumer at a business location of the seller must be treated as occurring in
this state if that business location is in this state, and any other retail
transaction must be treated as occurring in this state if the retail
transaction is treated as occurring in this state for purposes of the sales and
use tax as specified in section 297A.669, subdivision 3, paragraph (c).
Subd. 5. Remittance. The prepaid wireless E911 and
telecommunications access Minnesota fees are the liability of the consumer and
not of the seller or of any provider, except that the seller is liable to remit
all fees as provided in section 403.162.
Subd. 6. Exclusion
for calculating other charges. The
combined amount of the prepaid wireless E911 and telecommunications access
Minnesota fees collected by a seller from a consumer must not be included in
the base for measuring any tax, fee, surcharge, or other charge that is imposed
by this state, any political subdivision of this state, or any
intergovernmental agency.
Subd. 7. Fee
changes. (a) The prepaid
wireless E911 and telecommunications access Minnesota fee must be
proportionately increased or reduced upon any change to the fee imposed under
section 403.11, subdivision 1, paragraph (c), after July 1, 2013, or the fee
imposed under section 237.52, subdivision 2, as applicable.
(b) The department shall post notice of
any fee changes on its Web site at least 30 days in advance of the effective
date of the fee changes. It is the
responsibility of sellers to monitor the department's Web site for notice of
fee changes.
(c) Fee changes are effective 60 days
after the first day of the first calendar month after the commissioner of
public safety or the Public Utilities Commission, as applicable, changes the
fee.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 19. [403.162]
ADMINISTRATION OF PREPAID WIRELESS E911 FEES.
Subdivision 1. Remittance. Prepaid wireless E911 and
telecommunications access Minnesota fees collected by sellers must be remitted
to the commissioner of revenue at the times and in the manner provided by
chapter 297A with respect to the general sales and use tax. The commissioner of revenue shall establish
registration and payment procedures that substantially coincide with the
registration and payment procedures that apply in chapter 297A.
Subd. 2. Seller's
fee retention. A seller may
deduct and retain three percent of prepaid wireless E911 and telecommunications
access Minnesota fees collected by the seller from consumers.
Subd. 3. Department
of Revenue provisions. The
audit, assessment, appeal, collection, refund, penalty, interest, enforcement,
and administrative provisions of chapters 270C and 289A that are applicable to
the taxes imposed by chapter 297A apply to any fee imposed under section
403.161.
Subd. 4. Procedures
for resale transactions. The
commissioner of revenue shall establish procedures by which a seller of prepaid
wireless telecommunications service may document that a sale is not a retail
transaction. These procedures must
substantially coincide with the procedures for documenting sale for resale
transactions as provided in chapter 297A.
Subd. 5. Fees
deposited. (a) The
commissioner of revenue shall, based on the relative proportion of the prepaid
wireless E911 fee and the prepaid wireless telecommunications access Minnesota
fee imposed per retail transaction, divide the fees collected in corresponding
proportions. Within 30 days of receipt
of the collected fees, the commissioner shall:
(1) deposit the proportion of the
collected fees attributable to the prepaid wireless E911 fee in the 911
emergency telecommunications service account in the special revenue fund; and
(2) deposit the proportion of collected
fees attributable to the prepaid wireless telecommunications access Minnesota
fee in the telecommunications access fund established in section 237.52,
subdivision 1.
(b) The department may deduct
and retain an amount, not to exceed two percent of collected fees, to reimburse
its direct costs of administering the collection and remittance of prepaid
wireless E911 fees and prepaid wireless telecommunications access Minnesota
fees.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 20. [403.163]
LIABILITY PROTECTION FOR SELLERS AND PROVIDERS.
(a) A provider or seller of prepaid
wireless telecommunications service is not liable for damages to any person
resulting from or incurred in connection with providing any lawful assistance
in good faith to any investigative or law
enforcement officer of the United States, this or any other state, or any
political subdivision of this or any other state.
(b) In addition to the protection from
liability provided by paragraph (a), section 403.08, subdivision 11, applies to
sellers and providers.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 21. [403.164]
EXCLUSIVITY OF PREPAID WIRELESS E911 FEE.
The prepaid wireless E911 fee imposed by
section 403.161 is the only E911 funding obligation imposed with respect to
prepaid wireless telecommunications service in this state, and no tax, fee,
surcharge, or other charge may be imposed by this state, any political
subdivision of this state, or any intergovernmental agency, for E911 funding
purposes, upon any provider, seller, or consumer with respect to the sale,
purchase, use, or provision of prepaid wireless telecommunications service.
EFFECTIVE
DATE. This section is
effective January 1, 2014.
Sec. 22. PURPOSE
STATEMENTS; TAX EXPENDITURES.
Subdivision 1. Authority. This section is intended to fulfill
the requirement under Minnesota Statutes, section 3.192, that a bill creating,
renewing, or continuing a tax expenditure provide a purpose for the tax
expenditure and a standard or goal against which its effectiveness may be measured.
Subd. 2. Federal
conformity. The provisions of
article 6 conforming Minnesota individual income tax to changes in federal law
related to bonus depreciation and section 179 expensing are intended to
simplify compliance with and administration of the individual income tax.
Subd. 3. Sales
tax exemption for certain aircraft parts and labor. The provisions of article 5 exempting
parts and labor for certain aircraft, is intended to encourage the growth of
the aviation services industry in the state.
Subd. 4. Railroad
track maintenance subtraction. The
provisions of article 6 allowing an individual income and corporate franchise
tax subtraction for the amount allowed under the federal credit for railroad
maintenance expenses, are intended to increase the combined federal and state
tax incentives available to Class II and Class III railroads for maintaining
and upgrading track in Minnesota. The
standard against which effectiveness is to be measured is the additional miles
of track maintained or upgraded following allowance of the state tax
subtraction in addition to the existing federal tax credit.
Subd. 5. Historic
structure rehabilitation credit. The
provisions of article 6 extending the sunset date of the historic structure
rehabilitation credit and modifying the effective date of the credit, are
intended to encourage the preservation of historic structures in Minnesota and
to create and retain jobs related to rehabilitation of historic structures in
the state. The standard against which
the effectiveness of the extension of the credit and modification of the
effective date is to be measured is the number of jobs created through the
rehabilitation of historic structures and the number of historic structures
rehabilitated and placed in service.
Subd. 6. Greater
Minnesota internship credit. The
provisions of article 6 providing a tax credit to employers of qualified
interns, are intended to encourage Minnesota businesses to employ and provide
valuable education and work experience to Minnesota students and foster
long-term relationships between students and greater Minnesota employers. The standard against which the effectiveness
of the extension of the credit is the number of students who participated in
the program who were subsequently employed full time by the employer.
Subd. 7. Sales
tax exemption for greater Minnesota business expansion. The provisions of article 8 are
intended to induce existing businesses in greater Minnesota to increase
investment and expand employment in greater Minnesota.
Subd. 8. Expansion
of sales tax exemption on durable medical products and prosthetics. The provisions of article 8 expanding
the definition of items included in repair and replacement parts of durable
medical equipment and prosthetics and exempting Medicare and medicaid purchases
is intended to simplify sales tax administration in this area and provide
relief for sellers who cannot collect the tax under these programs.
Subd. 9. Sales
tax exemption for established religious orders. The provisions of article 8 exempting
certain sales between a religious order and an affiliated institute of higher
education, is intended to retain an existing sales tax exemption that exists
between St. John's Abbey and St. John's University after a governing
restructure between the two entities.
Subd. 10. Sales
tax exemption for certain dental providers.
The provisions of article 8 exempting certain purchases by
qualifying critical access dental providers, is intended to assist critical
access dental providers in defraying the overall cost of the services they
provide to underserved communities.
Subd. 11. Sales
tax exemption for nursing homes and boarding care homes. The provisions of article 8 exempting
certain nursing homes and boarding care homes is intended to clarify that an
existing exemption for these facilities is not affected by a recent property
tax case related to defining nonprofit organizations engaged in charitable
activities.
Subd. 12. Construction
sales tax exemptions. The
provisions of article 8 exempting from sales tax construction materials for
various entities, are intended to increase jobs and reduce tax pyramiding by
reducing the tax on inputs used to provide taxable goods and services.
Subd. 13. Sales
tax exemption on certain public infrastructure. The provisions of article 10 exempting
construction materials used in public infrastructure projects related to the
destination medical center plan is intended to reduce city costs for those
projects.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 23. APPROPRIATIONS.
(a) $950,000 is appropriated from the
general fund to the commissioner of revenue in fiscal year 2014 for
administering this act. This
appropriation does not cancel but is available until June 30, 2015. $300,000 of this amount is added to the
annual base budget.
(b) $25,000 in fiscal year 2014 and
$25,000 in fiscal year 2015 are appropriated from the general fund to the
commissioner of employment and economic development for administering the
provisions of article 10.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 24. REPEALER.
Minnesota Statutes 2012, sections
290.171; 290.173; and 290.174, are repealed.
ARTICLE 14
MARKET VALUE DEFINITIONS
Section 1. Minnesota Statutes 2012, section 38.18, is amended to read:
38.18
COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.
Any Each town, statutory city,
or school district in this state, now or hereafter at any time
having a an estimated market value of all its taxable property,
exclusive of money and credits, of more than $105,000,000, and having a
county fair located within its corporate limits, is hereby authorized to aid
in defraying may pay part of the expense of improving any such
the fairground, by appropriating and paying over to the treasurer
of the county owning the fairground such sum of money, not exceeding
$10,000, for each of the political subdivisions, as the its
governing body of the town, statutory city, or school district may, by
resolution, determine determines to be for the best interest of
the political subdivision,.
The sums so appropriated to amounts paid to the county must
be used solely for the purpose of aiding in the improvement of to
improve the fairground in such the manner as the
county board of the county shall determine determines to be for
the best interest of the county.
Sec. 2. Minnesota Statutes 2012, section 40A.15, subdivision 2, is amended to read:
Subd. 2. Eligible
recipients. All counties within the
state, municipalities that prepare plans and official controls instead of a
county, and districts are eligible for assistance under the program. Counties and districts may apply for
assistance on behalf of other municipalities.
In order to be eligible for financial assistance a county or
municipality must agree to levy at least 0.01209 percent of taxable estimated
market value for agricultural land preservation and conservation activities or
otherwise spend the equivalent amount of local money on those activities, or
spend $15,000 of local money, whichever is less.
Sec. 3. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:
Subdivision 1. Definitions. Unless the language or context clearly indicates that a different meaning is intended, the following words and terms, for the purposes of this chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
(a) "Commissioner" means the commissioner of revenue.
(b) "Municipality" means:
(1) a home rule charter or statutory city;
(2) an organized town;
(3) a park district subject to chapter 398;
(4) the University of Minnesota;
(5) for purposes of the fire state aid program only, an American Indian tribal government entity located within a federally recognized American Indian reservation;
(6) for purposes of the police state aid program only, an American Indian tribal government with a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93;
(7) for purposes of the police state aid program only, the Metropolitan Airports Commission; and
(8) for purposes of the police state aid program only, the Department of Natural Resources and the Department of Public Safety with respect to peace officers covered under chapter 352B.
(c) "Minnesota Firetown Premium Report" means a form prescribed by the commissioner containing space for reporting by insurers of fire, lightning, sprinkler leakage and extended coverage premiums received upon risks located or to be performed in this state less return premiums and dividends.
(d) "Firetown" means the area serviced by any municipality having a qualified fire department or a qualified incorporated fire department having a subsidiary volunteer firefighters' relief association.
(e) "Estimated market value" means latest available estimated market value of all property in a taxing jurisdiction, whether the property is subject to taxation, or exempt from ad valorem taxation obtained from information which appears on abstracts filed with the commissioner of revenue or equalized by the State Board of Equalization.
(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the commissioner for reporting by each fire and casualty insurer of all premiums received upon direct business received by it in this state, or by its agents for it, in cash or otherwise, during the preceding calendar year, with reference to insurance written for insuring against the perils contained in auto insurance coverages as reported in the Minnesota business schedule of the annual financial statement which each insurer is required to file with the commissioner in accordance with the governing laws or rules less return premiums and dividends.
(g) "Peace officer" means any person:
(1) whose primary source of income derived from wages is from direct employment by a municipality or county as a law enforcement officer on a full-time basis of not less than 30 hours per week;
(2) who has been employed for a minimum of six months prior to December 31 preceding the date of the current year's certification under subdivision 2, clause (b);
(3) who is sworn to enforce the general criminal laws of the state and local ordinances;
(4) who is licensed by the Peace Officers Standards and Training Board and is authorized to arrest with a warrant; and
(5) who is a member of the State Patrol retirement plan or the public employees police and fire fund.
(h) "Full-time equivalent number of peace officers providing contract service" means the integral or fractional number of peace officers which would be necessary to provide the contract service if all peace officers providing service were employed on a full-time basis as defined by the employing unit and the municipality receiving the contract service.
(i) "Retirement benefits other than a service pension" means any disbursement authorized under section 424A.05, subdivision 3, clauses (3) and (4).
(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
(1) for the police state aid program and police relief association financial reports:
(i) the person who was elected or appointed to the specified position or, in the absence of the person, another person who is designated by the applicable governing body;
(ii) in a park district, the secretary of the board of park district commissioners;
(iii) in the case of the University of Minnesota, the official designated by the Board of Regents;
(iv) for the Metropolitan Airports Commission, the person designated by the commission;
(v) for the Department of Natural Resources or the Department of Public Safety, the respective commissioner;
(vi) for a tribal police department which exercises state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the person designated by the applicable American Indian tribal government; and
(2) for the fire state aid program and fire relief association financial reports, the person who was elected or appointed to the specified position, or, for governmental entities other than counties, if the governing body of the governmental entity designates the position to perform the function, the chief financial official of the governmental entity or the chief administrative official of the governmental entity.
(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the retirement plan established by chapter 353G.
Sec. 4. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:
Subd. 7. Apportionment of fire state aid to municipalities and relief associations. (a) The commissioner shall apportion the fire state aid relative to the premiums reported on the Minnesota Firetown Premium Reports filed under this chapter to each municipality and/or firefighters relief association.
(b) The commissioner shall calculate an initial fire state aid allocation amount for each municipality or fire department under paragraph (c) and a minimum fire state aid allocation amount for each municipality or fire department under paragraph (d). The municipality or fire department must receive the larger fire state aid amount.
(c) The initial fire state aid allocation amount is the amount available for apportionment as fire state aid under subdivision 5, without inclusion of any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, allocated one-half in proportion to the population as shown in the last official statewide federal census for each fire town and one-half in proportion to the estimated market value of each fire town, including (1) the estimated market value of tax-exempt property and (2) the estimated market value of natural resources lands receiving in lieu payments under sections 477A.11 to 477A.14, but excluding the estimated market value of minerals. In the case of incorporated or municipal fire departments furnishing fire protection to other cities, towns, or townships as evidenced by valid fire service contracts filed with the commissioner, the distribution must be adjusted proportionately to take into consideration the crossover fire protection service. Necessary adjustments must be made to subsequent apportionments. In the case of municipalities or independent fire departments qualifying for the aid, the commissioner shall calculate the state aid for the municipality or relief association on the basis of the population and the estimated market value of the area furnished fire protection service by the fire department as evidenced by duly executed and valid fire service agreements filed with the commissioner. If one or more fire departments are furnishing contracted fire service to a city, town, or township, only the population and estimated market value of the area served by each fire department may be considered in calculating the state aid and the fire departments furnishing service shall enter into an agreement apportioning among themselves the percent of the population and the estimated market value of each service area. The agreement must be in writing and must be filed with the commissioner.
(d) The minimum fire state aid allocation amount is the amount in addition to the initial fire state allocation amount that is derived from any additional funding amount to support a minimum fire state aid amount under section 423A.02, subdivision 3, and allocated to municipalities with volunteer firefighters relief associations or covered by the voluntary statewide lump-sum volunteer firefighter retirement plan based on the number of active volunteer firefighters who are members of the relief association as reported in the annual financial reporting for the calendar year 1993 to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or fire departments with volunteer firefighters relief associations receive in total at least a minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 30 firefighters. If a relief association is established after calendar year 1993 and before calendar year 2000, the number of active volunteer firefighters who are members of the relief association as reported in the annual financial reporting for calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, shall be used in this determination. If a relief association is established after calendar year 1999, the number of active volunteer firefighters who are members of the relief association as reported in the first annual financial reporting submitted to the Office of the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this determination. If a relief association is terminated as a result of providing retirement coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, the number of active volunteer firefighters of the municipality covered by the statewide plan as certified by the executive director of the Public Employees Retirement Association to the commissioner and the state auditor, but not to exceed 30 active firefighters, must be used in this determination.
(e) Unless the firefighters of the applicable fire department are members of the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must be paid to the treasurer of the municipality where the fire department is located and the treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit the aid to the relief association if the relief association has filed a financial report with the treasurer of the municipality and has met all other statutory provisions pertaining to the aid apportionment. If the firefighters of the applicable fire department are members of the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must be paid to the executive director of the Public Employees Retirement Association and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
(f) The commissioner may make rules to permit the administration of the provisions of this section.
(g) Any adjustments needed to correct prior misallocations must be made to subsequent apportionments.
Sec. 5. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:
Subd. 8. Population and estimated market value. (a) In computations relating to fire state aid requiring the use of population figures, only official statewide federal census figures are to be used. Increases or decreases in population disclosed by reason of any special census must not be taken into consideration.
(b) In calculations relating to fire state aid requiring the use of estimated market value property figures, only the latest available estimated market value property figures may be used.
Sec. 6. Minnesota Statutes 2012, section 88.51, subdivision 3, is amended to read:
Subd. 3. Determination of estimated market value. In determining the net tax capacity of property within any taxing district the value of the surface of lands within any auxiliary forest therein, as determined by the county board under the provisions of section 88.48, subdivision 3, shall, for all purposes except the levying of taxes on lands within any such forest, be deemed the estimated market value thereof.
Sec. 7. Minnesota Statutes 2012, section 103B.245, subdivision 3, is amended to read:
Subd. 3. Tax. After adoption of the ordinance under subdivision 2, a local government unit may annually levy a tax on all taxable property in the district for the purposes for which the tax district is established. The tax may not exceed 0.02418 percent of estimated market value on taxable property located in rural towns other than urban towns, unless allowed by resolution of the town electors. The proceeds of the tax shall be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve fund at the time the tax is terminated or the district is dissolved shall be transferred and irrevocably pledged to the debt service fund of the local unit to be used solely to reduce tax levies for bonded indebtedness of taxable property in the district.
Sec. 8. Minnesota Statutes 2012, section 103B.251, subdivision 8, is amended to read:
Subd. 8. Tax. (a) For the payment of principal and interest on the bonds issued under subdivision 7 and the payment required under subdivision 6, the county shall irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property located within the territory of the watershed management organization or subwatershed unit for which the bonds are issued. Each year until the reserve for payment of the bonds is sufficient to retire the bonds, the county shall levy on all taxable property in the territory of the organization or unit, without respect to any statutory or other limitation on taxes, an amount of taxes sufficient to pay principal and interest on the bonds and to restore any deficiencies in reserves required to be maintained for payment of the bonds.
(b) The tax levied on rural towns other than
urban towns may not exceed 0.02418 percent of taxable estimated
market value, unless approved by resolution of the town electors.
(c) If at any time the amounts available from the levy on property in the territory of the organization are insufficient to pay principal and interest on the bonds when due, the county shall make payment from any available funds in the county treasury.
(d) The amount of any taxes which are required to be levied outside of the territory of the watershed management organization or unit or taken from the general funds of the county to pay principal or interest on the bonds shall be reimbursed to the county from taxes levied within the territory of the watershed management organization or unit.
Sec. 9. Minnesota Statutes 2012, section 103B.635, subdivision 2, is amended to read:
Subd. 2. Municipal
funding of district. (a) The
governing body or board of supervisors of each municipality in the district
must provide the funds necessary to meet its proportion of the total cost
determined by the board, provided the total funding from all municipalities in
the district for the costs shall not exceed an amount equal to .00242 percent
of the total taxable estimated market value within the district,
unless three-fourths of the municipalities in the district pass a resolution concurring
to the additional costs.
(b) The funds must be deposited in the treasury of the district in amounts and at times as the treasurer of the district requires.
Sec. 10. Minnesota Statutes 2012, section 103B.691, subdivision 2, is amended to read:
Subd. 2. Municipal funding of district. (a) The governing body or board of supervisors of each municipality in the district shall provide the funds necessary to meet its proportion of the total cost to be borne by the municipalities as finally certified by the board.
(b) The municipality's funds
may be raised by any means within the authority of the municipality. The municipalities may each levy a tax not to
exceed .02418 percent of taxable estimated market value on the
taxable property located in the district to provide the funds. The levy shall be within all other
limitations provided by law.
(c) The funds must be deposited into the treasury of the district in amounts and at times as the treasurer of the district requires.
Sec. 11. Minnesota Statutes 2012, section 103D.905, subdivision 2, is amended to read:
Subd. 2. Organizational
expense fund. (a) An organizational
expense fund, consisting of an ad valorem tax levy, shall not exceed 0.01596
percent of taxable estimated market value, or $60,000, whichever
is less. The money in the fund shall be
used for organizational expenses and preparation of the watershed management
plan for projects.
(b) The managers may borrow from the affected counties up to 75 percent of the anticipated funds to be collected from the organizational expense fund levy and the counties affected may make the advancements.
(c) The advancement of anticipated funds shall be apportioned among affected counties in the same ratio as the net tax capacity of the area of the counties within the watershed district bears to the net tax capacity of the entire watershed district. If a watershed district is enlarged, an organizational expense fund may be levied against the area added to the watershed district in the same manner as provided in this subdivision.
(d) Unexpended funds collected for the organizational expense may be transferred to the administrative fund and used for the purposes of the administrative fund.
Sec. 12. Minnesota Statutes 2012, section 103D.905, subdivision 3, is amended to read:
Subd. 3. General
fund. A general fund, consisting of
an ad valorem tax levy, may not exceed 0.048 percent of taxable estimated
market value, or $250,000, whichever is less.
The money in the fund shall be used for general administrative expenses
and for the construction or implementation and maintenance of projects of
common benefit to the watershed district.
The managers may make an annual levy for the general fund as provided in
section 103D.911. In addition to the
annual general levy, the managers may annually levy a tax not to exceed 0.00798
percent of taxable estimated market value for a period not to
exceed 15 consecutive years to pay the cost attributable to the basic water
management features of projects initiated by petition of a political
subdivision within the watershed district or by petition of at least 50
resident owners whose property is within the watershed district.
Sec. 13. Minnesota Statutes 2012, section 103D.905, subdivision 8, is amended to read:
Subd. 8. Survey and data acquisition fund. (a) A survey and data acquisition fund is established and used only if other funds are not available to the watershed district to pay for making necessary surveys and acquiring data.
(b) The survey and data acquisition fund
consists of the proceeds of a property tax that can be levied only once every
five years. The levy may not exceed
0.02418 percent of taxable estimated market value.
(c) The balance of the survey and data acquisition fund may not exceed $50,000.
(d) In a subsequent proceeding for a project where a survey has been made, the attributable cost of the survey as determined by the managers shall be included as a part of the cost of the work and the sum shall be repaid to the survey and data acquisition fund.
Sec. 14. Minnesota Statutes 2012, section 117.025, subdivision 7, is amended to read:
Subd. 7. Structurally substandard. "Structurally substandard" means a building:
(1) that was inspected by the appropriate local government and cited for one or more enforceable housing, maintenance, or building code violations;
(2) in which the cited building code violations involve one or more of the following:
(i) a roof and roof framing element;
(ii) support walls, beams, and headers;
(iii) foundation, footings, and subgrade conditions;
(iv) light and ventilation;
(v) fire protection, including egress;
(vi) internal utilities, including electricity, gas, and water;
(vii) flooring and flooring elements; or
(viii) walls, insulation, and exterior envelope;
(3) in which the cited housing, maintenance, or building code violations have not been remedied after two notices to cure the noncompliance; and
(4) has uncured housing, maintenance, and
building code violations, satisfaction of which would cost more than 50 percent
of the assessor's taxable estimated market value for the
building, excluding land value, as determined under section 273.11 for property
taxes payable in the year in which the condemnation is commenced.
A local government is authorized to seek from a judge or magistrate an administrative warrant to gain access to inspect a specific building in a proposed development or redevelopment area upon showing of probable cause that a specific code violation has occurred and that the violation has not been cured, and that the owner has denied the local government access to the property. Items of evidence that may support a conclusion of probable cause may include recent fire or police inspections, housing inspection, exterior evidence of deterioration, or other similar reliable evidence of deterioration in the specific building.
Sec. 15. Minnesota Statutes 2012, section 127A.48, subdivision 1, is amended to read:
Subdivision 1. Computation. The Department of Revenue must annually
conduct an assessment/sales ratio study of the taxable property in each county,
city, town, and school district in accordance with the procedures in
subdivisions 2 and 3. Based upon the
results of this assessment/sales ratio study, the Department of Revenue must
determine an aggregate equalized net tax capacity for the various
classes of taxable property in each taxing district, the aggregate of
which tax capacity shall be is designated as the adjusted net tax
capacity. The adjusted net tax
capacity must be reduced by the captured tax capacity of tax increment
districts under section 469.177, subdivision 2, fiscal disparities contribution
tax capacities under sections 276A.06 and 473F.08, and the tax capacity of transmission
lines required to be subtracted from the local tax base under section 273.425;
and increased by fiscal disparities distribution tax capacities under sections
276A.06 and 473F.08. The adjusted
net tax capacities shall be determined using the net tax capacity percentages
in effect for the assessment year following the assessment year of
the study. The Department of Revenue must make whatever estimates are necessary to account for changes in the classification system. The Department of Revenue may incur the expense necessary to make the determinations. The commissioner of revenue may reimburse any county or governmental official for requested services performed in ascertaining the adjusted net tax capacity. On or before March 15 annually, the Department of Revenue shall file with the chair of the Tax Committee of the house of representatives and the chair of the Committee on Taxes and Tax laws of the senate a report of adjusted net tax capacities for school districts. On or before June 15 annually, the Department of Revenue shall file its final report on the adjusted net tax capacities for school districts established by the previous year's assessments and the current year's net tax capacity percentages with the commissioner of education and each county auditor for those school districts for which the auditor has the responsibility for determination of local tax rates. A copy of the report so filed shall be mailed to the clerk of each school district involved and to the county assessor or supervisor of assessments of the county or counties in which each school district is located.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2012, section 138.053, is amended to read:
138.053
COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.
The governing body of any home rule charter
or statutory city or town may annually appropriate from its general fund an
amount not to exceed 0.02418 percent of taxable estimated market
value, derived from ad valorem taxes on property or other revenues, to be paid
to the historical society of its respective county to be used for the promotion
of historical work and to aid in defraying the expenses of carrying on the
historical work in the county. No city
or town may appropriate any funds for the benefit of any historical society
unless the society is affiliated with and approved by the Minnesota Historical
Society.
Sec. 17. Minnesota Statutes 2012, section 144F.01, subdivision 4, is amended to read:
Subd. 4. Property
tax levy authority. The district's
board may levy a tax on the taxable real and personal property in the district. The ad valorem tax levy may not exceed 0.048
percent of the taxable estimated market value of the district or
$400,000, whichever is less. The
proceeds of the levy must be used as provided in subdivision 5. The board shall certify the levy at the times
as provided under section 275.07. The
board shall provide the county with whatever information is necessary to
identify the property that is located within the district. If the boundaries include a part of a parcel,
the entire parcel shall be included in the district. The county auditors must spread, collect, and
distribute the proceeds of the tax at the same time and in the same manner as
provided by law for all other property taxes.
Sec. 18. Minnesota Statutes 2012, section 162.07, subdivision 3, is amended to read:
Subd. 3. Computation
for rural counties. An amount equal
to a levy of 0.01596 percent on each rural county's total taxable estimated
market value for the last preceding calendar year shall be computed and shall
be subtracted from the county's total estimated construction costs. The result thereof shall be the money needs
of the county. For the purpose of this section,
"rural counties" means all counties having a population of less than
175,000.
Sec. 19. Minnesota Statutes 2012, section 162.07, subdivision 4, is amended to read:
Subd. 4. Computation
for urban counties. An amount equal
to a levy of 0.00967 percent on each urban county's total taxable estimated
market value for the last preceding calendar year shall be computed and shall
be subtracted from the county's total estimated construction costs. The result thereof shall be the money
needs of the county. For the purpose of
this section, "urban counties" means all counties having a population
of 175,000 or more.
Sec. 20. Minnesota Statutes 2012, section 163.04, subdivision 3, is amended to read:
Subd. 3. Bridges within certain cities. When the council of any statutory city or city of the third or fourth class may determine that it is necessary to build or improve any bridge or bridges, including approaches thereto, and any dam or retaining works connected therewith, upon or forming a part of streets or highways either wholly or partly within its limits, the county board shall appropriate one-half of the money as may be necessary therefor from the county road and bridge fund, not exceeding during any year one-half the amount of taxes paid into the county road and bridge fund during the preceding year, on property within the corporate limits of the city. The appropriation shall be made upon the petition of the council, which petition shall be filed by the council with the county board prior to the fixing by the board of the annual county tax levy. The county board shall determine the plans and specifications, shall let all necessary contracts, shall have charge of construction, and upon its request, warrants in payment thereof shall be issued by the county auditor, from time to time, as the construction work proceeds. Any unpaid balance may be paid or advanced by the city. On petition of the council, the appropriations of the county board, during not to exceed three successive years, may be made to apply on the construction of the same items and to repay any money advanced by the city in the construction thereof. None of the provisions of this section shall be construed to be mandatory as applied to any city whose estimated market value exceeds $2,100 per capita of its population.
Sec. 21. Minnesota Statutes 2012, section 163.06, subdivision 6, is amended to read:
Subd. 6. Expenditure
in certain counties. In any county
having not less than 95 nor more than 105 full and fractional townships, and
having a an estimated market value of not less than $12,000,000
nor more than $21,000,000, exclusive of money and credits, the county
board, by resolution, may expend the funds provided in subdivision 4 in any
organized or unorganized township town or unorganized territory
or portion thereof in such county.
Sec. 22. Minnesota Statutes 2012, section 165.10, subdivision 1, is amended to read:
Subdivision 1. Certain
counties may issue and sell. The
county board of any county having no outstanding road and bridge bonds may
issue and sell county road bonds in an amount not exceeding 0.12089 percent of
the estimated market value of the taxable property within the county exclusive
of money and credits, for the purpose of constructing, reconstructing,
improving, or maintaining any bridge or bridges on any highway under its
jurisdiction, without submitting the matter to a vote of the electors of the
county.
Sec. 23. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision to read:
Subd. 14. Estimated
market value. "Estimated
market value" means the assessor's determination of market value,
including the effects of any orders made under section 270.12 or chapter 274,
for the parcel. The provisions of
section 273.032 apply for certain uses in determining the total estimated
market value for the taxing jurisdiction.
Sec. 24. Minnesota Statutes 2012, section 272.03, is amended by adding a subdivision to read:
Subd. 15. Taxable
market value. "Taxable
market value" means estimated market value for the parcel as reduced by
market value exclusions, deferments of value, or other adjustments required by
law, that reduce market value before the application of class rates.
Sec. 25. Minnesota Statutes 2012, section 273.032, is amended to read:
273.032
MARKET VALUE DEFINITION.
(a) Unless otherwise provided, for the purpose of determining any property tax levy limitation based on market value or any limit on net debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market value, any qualification to receive state aid based on market value, or any state aid amount based on market value,
the terms "market
value," "taxable estimated market value," and
"market valuation," whether equalized or unequalized, mean the total
taxable estimated market value of taxable property within the
local unit of government before any of the following or similar
adjustments for:
(1) the market value exclusions under:
(i) section 273.11, subdivisions 14a and
14c (vacant platted land);
(ii) section 273.11, subdivision 16
(certain improvements to homestead property);
(iii) section 273.11, subdivisions 19 and
20 (certain improvements to business properties);
(iv) section 273.11, subdivision 21
(homestead property damaged by mold);
(v) section 273.11, subdivision 22
(qualifying lead hazardous reduction projects);
(vi) section 273.13, subdivision 34
(homestead of a disabled veteran or family caregiver);
(vii) section 273.13, subdivision 35
(homestead market value exclusion); or
(2) the deferment of value under:
(i) the Minnesota Agricultural Property
Tax Law, section 273.111;
(ii) the Aggregate Resource Preservation
Law, section 273.1115;
(iii) the Minnesota Open Space Property
Tax Law, section 273.112;
(iv) the rural preserves property tax
program, section 273.114; or
(v) the Metropolitan Agricultural
Preserves Act, section 473H.10; or
(3) the adjustments to tax capacity for:
(i) tax increment, financing
under sections 469.174 to 469.1794;
(ii) fiscal disparity, disparities
under chapter 276A or 473F; or
(iii) powerline credit, or wind
energy values, but after the limited market adjustments under section 273.11,
subdivision 1a, and after the market value exclusions of certain improvements
to homestead property under section 273.11, subdivision 16 under section
273.425.
(b)
Estimated market value under paragraph (a) also includes the market value of
tax-exempt property if the applicable law specifically provides that the
limitation, qualification, or aid calculation includes tax-exempt property.
(c) Unless otherwise provided,
"market value," "taxable estimated market
value," and "market valuation" for purposes of this paragraph
property tax levy limitations and calculation of state aid, refer to the
taxable estimated market value for the previous assessment year and
for purposes of limits on net debt, the issuance of bonds, certificates of
indebtedness, or capital notes refer to the estimated market value as last
finally equalized.
For the purpose of determining
any net debt limit based on market value, or any limit on the issuance of
bonds, certificates of indebtedness, or capital notes based on market value,
the terms "market value," "taxable market value," and
"market valuation," whether equalized or unequalized, mean the total
taxable market value of property within the local unit of government before any
adjustments for tax increment, fiscal disparity, powerline credit, or wind
energy values, but after the limited market value adjustments under section
273.11, subdivision 1a, and after the market value exclusions of certain
improvements to homestead property under section 273.11, subdivision 16. Unless otherwise provided, "market
value," "taxable market value," and "market valuation"
for purposes of this paragraph, mean the taxable market value as last finally
equalized.
(d) For purposes of a provision of a home
rule charter or of any special law that is not codified in the statutes and
that imposes a levy limitation based on market value or any limit on debt, the
issuance of bonds, certificates of indebtedness, or capital notes based on
market value, the terms "market value," "taxable market
value," and "market valuation," whether equalized or
unequalized, mean "estimated market value" as defined in paragraph
(a).
Sec. 26. Minnesota Statutes 2012, section 273.11, subdivision 1, is amended to read:
Subdivision 1. Generally. Except as provided in this section or
section 273.17, subdivision 1, all property shall be valued at its market value. The market value as determined pursuant to
this section shall be stated such that any amount under $100 is rounded up to
$100 and any amount exceeding $100 shall be rounded to the nearest $100. In estimating and determining such value, the
assessor shall not adopt a lower or different standard of value because the
same is to serve as a basis of taxation, nor shall the assessor adopt as a
criterion of value the price for which such property would sell at a forced
sale, or in the aggregate with all the property in the town or district; but the
assessor shall value each article or description of property by itself, and at
such sum or price as the assessor believes the same to be fairly worth in money. The assessor shall take into account the
effect on the market value of property of environmental factors in the vicinity
of the property. In assessing any tract
or lot of real property, the value of the land, exclusive of structures and
improvements, shall be determined, and also the value of all structures and
improvements thereon, and the aggregate value of the property, including all
structures and improvements, excluding the value of crops growing upon
cultivated land. In valuing real
property upon which there is a mine or quarry, it shall be valued at such price
as such property, including the mine or quarry, would sell for at a fair,
voluntary sale, for cash, if the material being mined or quarried is not
subject to taxation under section 298.015 and the mine or quarry is not exempt
from the general property tax under section 298.25. In valuing
real property which is vacant, platted property shall be assessed as provided
in subdivision 14 subdivisions 14a and 14c. All property, or the use thereof, which is
taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market
value of such property and not at the value of a leasehold estate in such
property, or at some lesser value than its market value.
Sec. 27. Minnesota Statutes 2012, section 273.124, subdivision 3a, is amended to read:
Subd. 3a. Manufactured home park cooperative. (a) When a manufactured home park is owned by a corporation or association organized under chapter 308A or 308B, and each person who owns a share or shares in the corporation or association is entitled to occupy a lot within the park, the corporation or association may claim homestead treatment for the park. Each lot must be designated by legal description or number, and each lot is limited to not more than one-half acre of land.
(b) The manufactured home park shall be entitled to homestead treatment if all of the following criteria are met:
(1) the occupant or the cooperative corporation or association is paying the ad valorem property taxes and any special assessments levied against the land and structure either directly, or indirectly through dues to the corporation or association; and
(2) the corporation or association organized under chapter 308A or 308B is wholly owned by persons having a right to occupy a lot owned by the corporation or association.
(c) A charitable corporation, organized under the laws of Minnesota with no outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) tax-exempt status, qualifies for homestead treatment with respect to a manufactured home park if its members hold residential participation warrants entitling them to occupy a lot in the manufactured home park.
(d) "Homestead treatment" under
this subdivision means the class rate provided for class 4c property classified
under section 273.13, subdivision 25, paragraph (d), clause (5), item (ii). The homestead market value credit exclusion
under section 273.1384 273.13, subdivision 35, does not apply and
the property taxes assessed against the park shall not be included in the
determination of taxes payable for rent paid under section 290A.03.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2013 and thereafter.
Sec. 28. Minnesota Statutes 2012, section 273.124, subdivision 13, is amended to read:
Subd. 13. Homestead application. (a) A person who meets the homestead requirements under subdivision 1 must file a homestead application with the county assessor to initially obtain homestead classification.
(b) The format and contents of a uniform homestead application shall be prescribed by the commissioner of revenue. The application must clearly inform the taxpayer that this application must be signed by all owners who occupy the property or by the qualifying relative and returned to the county assessor in order for the property to receive homestead treatment.
(c) Every property owner applying for homestead classification must furnish to the county assessor the Social Security number of each occupant who is listed as an owner of the property on the deed of record, the name and address of each owner who does not occupy the property, and the name and Social Security number of each owner's spouse who occupies the property. The application must be signed by each owner who occupies the property and by each owner's spouse who occupies the property, or, in the case of property that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
If a property owner occupies a homestead, the property owner's spouse may not claim another property as a homestead unless the property owner and the property owner's spouse file with the assessor an affidavit or other proof required by the assessor stating that the property qualifies as a homestead under subdivision 1, paragraph (e).
Owners or spouses occupying residences owned by their spouses and previously occupied with the other spouse, either of whom fail to include the other spouse's name and Social Security number on the homestead application or provide the affidavits or other proof requested, will be deemed to have elected to receive only partial homestead treatment of their residence. The remainder of the residence will be classified as nonhomestead residential. When an owner or spouse's name and Social Security number appear on homestead applications for two separate residences and only one application is signed, the owner or spouse will be deemed to have elected to homestead the residence for which the application was signed.
The Social Security numbers, state or federal tax returns or tax return information, including the federal income tax schedule F required by this section, or affidavits or other proofs of the property owners and spouses submitted under this or another section to support a claim for a property tax homestead classification are private data on individuals as defined by section 13.02, subdivision 12, but, notwithstanding that section, the private data may be disclosed to the commissioner of revenue, or, for purposes of proceeding under the Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
(d) If residential real estate is occupied and used for purposes of a homestead by a relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for the property to receive homestead status, a homestead application must be filed with the assessor. The Social Security number of each relative and spouse of a
relative occupying the property shall be required on the homestead application filed under this subdivision. If a different relative of the owner subsequently occupies the property, the owner of the property must notify the assessor within 30 days of the change in occupancy. The Social Security number of a relative or relative's spouse occupying the property is private data on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
(e) The homestead application shall also notify the property owners that the application filed under this section will not be mailed annually and that if the property is granted homestead status for any assessment year, that same property shall remain classified as homestead until the property is sold or transferred to another person, or the owners, the spouse of the owner, or the relatives no longer use the property as their homestead. Upon the sale or transfer of the homestead property, a certificate of value must be timely filed with the county auditor as provided under section 272.115. Failure to notify the assessor within 30 days that the property has been sold, transferred, or that the owner, the spouse of the owner, or the relative is no longer occupying the property as a homestead, shall result in the penalty provided under this subdivision and the property will lose its current homestead status.
(f) If the homestead application is not returned within 30 days, the county will send a second application to the present owners of record. The notice of proposed property taxes prepared under section 275.065, subdivision 3, shall reflect the property's classification. If a homestead application has not been filed with the county by December 15, the assessor shall classify the property as nonhomestead for the current assessment year for taxes payable in the following year, provided that the owner may be entitled to receive the homestead classification by proper application under section 375.192.
(g) At the request of the commissioner, each county must give the commissioner a list that includes the name and Social Security number of each occupant of homestead property who is the property owner, property owner's spouse, qualifying relative of a property owner, or a spouse of a qualifying relative. The commissioner shall use the information provided on the lists as appropriate under the law, including for the detection of improper claims by owners, or relatives of owners, under chapter 290A.
(h) If the commissioner finds that a
property owner may be claiming a fraudulent homestead, the commissioner shall
notify the appropriate counties. Within
90 days of the notification, the county assessor shall investigate to determine
if the homestead classification was properly claimed. If the property owner does not qualify, the
county assessor shall notify the county auditor who will determine the amount
of homestead benefits that had been improperly allowed. For the purpose of this section,
"homestead benefits" means the tax reduction resulting from the classification
as a homestead and the homestead market value exclusion under section
273.13, the taconite homestead credit under section 273.135, the residential
homestead and agricultural homestead credits credit under
section 273.1384, and the supplemental homestead credit under section 273.1391.
The county auditor shall send a notice to the person who owned the affected property at the time the homestead application related to the improper homestead was filed, demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent of the homestead benefits. The person notified may appeal the county's determination by serving copies of a petition for review with county officials as provided in section 278.01 and filing proof of service as provided in section 278.01 with the Minnesota Tax Court within 60 days of the date of the notice from the county. Procedurally, the appeal is governed by the provisions in chapter 271 which apply to the appeal of a property tax assessment or levy, but without requiring any prepayment of the amount in controversy. If the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal has been filed, the county auditor shall certify the amount of taxes and penalty to the county treasurer. The county treasurer will add interest to the unpaid homestead benefits and penalty amounts at the rate provided in section 279.03 for real property taxes becoming delinquent in the calendar year during which the amount remains unpaid. Interest may be assessed for the period beginning 60 days after demand for payment was made.
If the person notified is the current owner of the property, the treasurer may add the total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes otherwise payable on the property by including the amounts on the property tax statements under section 276.04, subdivision 3. The amounts added under this paragraph to the ad valorem taxes shall include interest accrued through December 31 of the year preceding the taxes payable year for which the amounts are first added. These amounts, when added to the property tax statement, become subject to all the laws for the enforcement of real or personal property taxes for that year, and for any subsequent year.
If the person notified is not the current owner of the property, the treasurer may collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of the powers granted in sections 277.20 and 277.21 without exclusion, to enforce payment of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent tax obligations of the person who owned the property at the time the application related to the improperly allowed homestead was filed. The treasurer may relieve a prior owner of personal liability for the homestead benefits, penalty, interest, and costs, and instead extend those amounts on the tax lists against the property as provided in this paragraph to the extent that the current owner agrees in writing. On all demands, billings, property tax statements, and related correspondence, the county must list and state separately the amounts of homestead benefits, penalty, interest and costs being demanded, billed or assessed.
(i) Any amount of homestead benefits recovered by the county from the property owner shall be distributed to the county, city or town, and school district where the property is located in the same proportion that each taxing district's levy was to the total of the three taxing districts' levy for the current year. Any amount recovered attributable to taconite homestead credit shall be transmitted to the St. Louis County auditor to be deposited in the taconite property tax relief account. Any amount recovered that is attributable to supplemental homestead credit is to be transmitted to the commissioner of revenue for deposit in the general fund of the state treasury. The total amount of penalty collected must be deposited in the county general fund.
(j) If a property owner has applied for more than one homestead and the county assessors cannot determine which property should be classified as homestead, the county assessors will refer the information to the commissioner. The commissioner shall make the determination and notify the counties within 60 days.
(k) In addition to lists of homestead properties, the commissioner may ask the counties to furnish lists of all properties and the record owners. The Social Security numbers and federal identification numbers that are maintained by a county or city assessor for property tax administration purposes, and that may appear on the lists retain their classification as private or nonpublic data; but may be viewed, accessed, and used by the county auditor or treasurer of the same county for the limited purpose of assisting the commissioner in the preparation of microdata samples under section 270C.12.
(l) On or before April 30 each year beginning in 2007, each county must provide the commissioner with the following data for each parcel of homestead property by electronic means as defined in section 289A.02, subdivision 8:
(i) the property identification number assigned to the parcel for purposes of taxes payable in the current year;
(ii) the name and Social Security number of each occupant of homestead property who is the property owner, property owner's spouse, qualifying relative of a property owner, or spouse of a qualifying relative;
(iii) the classification of the property under section 273.13 for taxes payable in the current year and in the prior year;
(iv) an indication of whether the property was classified as a homestead for taxes payable in the current year because of occupancy by a relative of the owner or by a spouse of a relative;
(v) the property taxes payable as defined in section 290A.03, subdivision 13, for the current year and the prior year;
(vi) the market value of improvements to the property first assessed for tax purposes for taxes payable in the current year;
(vii) the assessor's estimated market value assigned to the property for taxes payable in the current year and the prior year;
(viii) the taxable market value assigned to the property for taxes payable in the current year and the prior year;
(ix) whether there are delinquent property taxes owing on the homestead;
(x) the unique taxing district in which the property is located; and
(xi) such other information as the commissioner decides is necessary.
The commissioner shall use the information provided on the lists as appropriate under the law, including for the detection of improper claims by owners, or relatives of owners, under chapter 290A.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2013 and thereafter.
Sec. 29. Minnesota Statutes 2012, section 273.13, subdivision 21b, is amended to read:
Subd. 21b. Net
tax capacity. (a) Gross tax
capacity means the product of the appropriate gross class rates in this section
and market values.
(b) Net tax capacity means the product of the
appropriate net class rates in this section and taxable market values.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 30. Minnesota Statutes 2012, section 273.1398, subdivision 3, is amended to read:
Subd. 3. Disparity reduction aid. The amount of disparity aid certified for each taxing district within each unique taxing jurisdiction for taxes payable in the prior year shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for taxes payable in the year for which aid is being computed, to (2) its tax capacity using the class rates for taxes payable in the year prior to that for which aid is being computed, both based upon taxable market values for taxes payable in the year prior to that for which aid is being computed. If the commissioner determines that insufficient information is available to reasonably and timely calculate the numerator in this ratio for the first taxes payable year that a class rate change or new class rate is effective, the commissioner shall omit the effects of that class rate change or new class rate when calculating this ratio for aid payable in that taxes payable year. For aid payable in the year following a year for which such omission was made, the commissioner shall use in the denominator for the class that was changed or created, the tax capacity for taxes payable two years prior to that in which the aid is payable, based on taxable market values for taxes payable in the year prior to that for which aid is being computed.
Sec. 31. Minnesota Statutes 2012, section 273.1398, subdivision 4, is amended to read:
Subd. 4. Disparity reduction credit. (a) Beginning with taxes payable in 1989, class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property is located in a border city that has an enterprise zone, as defined in section 469.166; (2) the property is located in a city with a population greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city in another state; and (4) the adjacent city in the other state has a population of greater than 5,000 and less than 75,000 according to the 1980 decennial census.
(b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a property to 2.3 percent of the property's taxable market value and (ii) the tax on class 3a property to 2.3 percent of taxable market value.
(c) The county auditor shall annually certify the costs of the credits to the Department of Revenue. The department shall reimburse local governments for the property taxes forgone as the result of the credits in proportion to their total levies.
Sec. 32. Minnesota Statutes 2012, 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, 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.
For the purpose of determining the property
tax levy limitation for the taxes payable year 1988 2014 and
subsequent years under this subdivision, "total market valuation"
means the total estimated market valuation value of
all taxable property subject to the tax without valuation adjustments for
fiscal disparities (chapters 276A and 473F), tax increment financing (sections
469.174 to 469.179), or powerline credit (section 273.425) as provided
under section 273.032.
Sec. 33. Minnesota Statutes 2012, section 275.077, subdivision 2, is amended to read:
Subd. 2. Correction
of levy amount. The difference
between the correct levy and the erroneous levy shall be added to the township
levy for the subsequent levy year; provided that if the amount of the
difference exceeds 0.12089 percent of taxable estimated market
value, the excess shall be added to the township levy for the second and later
subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable
estimated market value in any year, until the full amount of the
difference has been levied. The funds
collected from the corrected levies shall be used to reimburse the county for
the payment required by subdivision 1.
Sec. 34. Minnesota Statutes 2012, section 275.71, subdivision 4, is amended to read:
Subd. 4. Adjusted levy limit base. For taxes levied in 2008 through 2010, the adjusted levy limit base is equal to the levy limit base computed under subdivision 2 or section 275.72, multiplied by:
(1) one plus the percentage growth in the implicit price deflator, but the percentage shall not be less than zero or exceed 3.9 percent;
(2) one plus a percentage equal to 50 percent of the percentage increase in the number of households, if any, for the most recent 12-month period for which data is available; and
(3) one plus a percentage equal to 50
percent of the percentage increase in the taxable estimated
market value of the jurisdiction due to new construction of class 3 property,
as defined in section 273.13, subdivision 4, except for state-assessed utility
and railroad property, for the most recent year for which data is available.
Sec. 35. Minnesota Statutes 2012, section 276.04, subdivision 2, is amended to read:
Subd. 2. Contents of tax statements. (a) The treasurer shall provide for the printing of the tax statements. The commissioner of revenue shall prescribe the form of the property tax statement and its contents. The tax statement must not state or imply that property tax credits are paid by the state of Minnesota. The statement must contain a tabulated statement of the dollar amount due to each taxing authority and the amount of the state tax from the parcel of real property for which a particular tax statement is prepared. The dollar amounts attributable to the county, the state tax, the voter approved school tax, the other local school tax, the township or municipality, and the total of the metropolitan special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The amounts due all other special taxing districts, if any, may be aggregated except that any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly under the appropriate county's levy. If the county levy under this paragraph includes an amount for a lake improvement district as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose must be separately stated from the remaining county levy amount. In the case of Ramsey County, if the county levy under this paragraph includes an amount for public library service under section 134.07, the amount attributable for that purpose may be separated from the remaining county levy amount. The amount of the tax on homesteads qualifying under the senior citizens' property tax deferral program under chapter 290B is the total amount of property tax before subtraction of the deferred property tax amount. The amount of the tax on contamination value imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar amount of any special assessments, may be rounded to the nearest even whole dollar. For purposes of this section whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. The amount of market value excluded under section 273.11, subdivision 16, if any, must also be listed on the tax statement.
(b) The property tax statements for manufactured homes and sectional structures taxed as personal property shall contain the same information that is required on the tax statements for real property.
(c) Real
and personal property tax statements must contain the following information in
the order given in this paragraph. The
information must contain the current year tax information in the right column
with the corresponding information for the previous year in a column on the
left:
(1) the property's estimated market value under section 273.11, subdivision 1;
(2) the property's homestead market value exclusion under section 273.13, subdivision 35;
(3) the property's taxable market value after
reductions under sections 273.11, subdivisions 1a and 16, and 273.13,
subdivision 35 section 272.03, subdivision 15;
(4) the property's gross tax, before credits;
(5) for homestead agricultural properties, the credit under section 273.1384;
(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit received under section 273.135 must be separately stated and identified as "taconite tax relief"; and
(7) the net tax payable in the manner required in paragraph (a).
(d) If the county uses envelopes for mailing property tax statements and if the county agrees, a taxing district may include a notice with the property tax statement notifying taxpayers when the taxing district will begin its budget deliberations for the current year, and encouraging taxpayers to attend the hearings. If the county allows notices to be included in the envelope containing the property tax statement, and if more than one taxing district relative to a given property decides to include a notice with the tax statement, the county treasurer or auditor must coordinate the process and may combine the information on a single announcement.
Sec. 36. Minnesota Statutes 2012, section 276A.01, subdivision 10, is amended to read:
Subd. 10. Adjusted
market value. "Adjusted
market value" of real and personal property within a municipality means
the assessor's estimated taxable market value, as defined in
section 272.03, of all real and personal property, including the value of
manufactured housing, within the municipality. For purposes of sections 276A.01 to 276A.09,
the commissioner of revenue shall annually make determinations and reports with
respect to each municipality which are comparable to those it makes for school
districts, adjusted for sales ratios in a manner similar to the
adjustments made to city and town net tax capacities under section 127A.48,
subdivisions 1 to 6, in the same manner and at the same times prescribed by
the subdivision. The commissioner of
revenue shall annually determine, for each municipality, information comparable
to that required by section 475.53, subdivision 4, for school districts, as
soon as practicable after it becomes available.
The commissioner of revenue shall then compute the equalized market
value of property within each municipality.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 37. Minnesota Statutes 2012, section 276A.01, subdivision 12, is amended to read:
Subd. 12. Fiscal
capacity. "Fiscal
capacity" of a municipality means its valuation adjusted market
value, determined as of January 2 of any year, divided by its population,
determined as of a date in the same year.
Sec. 38. Minnesota Statutes 2012, section 276A.01, subdivision 13, is amended to read:
Subd. 13. Average
fiscal capacity. "Average
fiscal capacity" of municipalities means the sum of the valuations adjusted
market values of all municipalities, determined as of January 2 of any
year, divided by the sum of their populations, determined as of a date in the
same year.
Sec. 39. Minnesota Statutes 2012, section 276A.01, subdivision 15, is amended to read:
Subd. 15. Net tax capacity. "Net tax capacity" means the taxable market value of real and personal property multiplied by its net tax capacity rates in section 273.13.
Sec. 40. Minnesota Statutes 2012, section 276A.06, subdivision 10, is amended to read:
Subd. 10. Adjustment
of values for other computations.
For the purpose of computing the amount or rate of any salary,
aid, tax, or debt authorized, required, or limited by any provision of any law
or charter, where the authorization, requirement, or limitation is related to
any value or valuation of taxable property within any governmental unit, the
value or net tax capacity fiscal capacity under section 276A.01,
subdivision 12, a municipality's taxable market value must be adjusted to
reflect the adjustments reductions to net tax capacity
effected by subdivision 2, clause
(a), provided that: (1) in
determining the taxable market value of commercial-industrial property
or any class thereof within a governmental unit for any purpose other than
section 276A.05 municipality, (a) the reduction required by
this subdivision is that amount which bears the same proportion to the amount
subtracted from the governmental unit's municipality's net tax
capacity pursuant to subdivision 2, clause (a), as the taxable market
value of commercial-industrial property, or such class thereof, located within
the governmental unit municipality bears to the net tax capacity
of commercial-industrial property, or such class thereof, located within the governmental
unit, and (b) the increase required by this subdivision is that amount which
bears the same proportion to the amount added to the governmental unit's net
tax capacity pursuant to subdivision 2, clause (b), as the market value of
commercial-industrial property, or such class thereof, located within the
governmental unit bears to the net tax capacity of commercial-industrial
property, or such class thereof, located within the governmental unit; and (2)
in determining the market value of real property within a municipality for
purposes of section 276A.05, the adjustment prescribed by clause (1)(a) must be
made and that prescribed by clause (1)(b) must not be made municipality. No adjustment shall be made to taxable market
value for the increase in net tax capacity under subdivision 2, clause (b).
Sec. 41. Minnesota Statutes 2012, section 287.08, is amended to read:
287.08
TAX, HOW PAYABLE; RECEIPTS.
(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any county in this state in which the real property or some part is located at or before the time of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from registration tax." In either case the receipt must be signed by the treasurer. In case the treasurer is unable to determine whether a claim of exemption should be allowed, the tax must be paid as in the case of a taxable mortgage. For documents submitted electronically, the endorsements and tax amount shall be affixed electronically and no signature by the treasurer will be required. The actual payment method must be arranged in advance between the submitter and the receiving county.
(b) The county treasurer may refund in whole or in part any mortgage registry tax overpayment if a written application by the taxpayer is submitted to the county treasurer within 3-1/2 years from the date of the overpayment. If the county has not issued a denial of the application, the taxpayer may bring an action in Tax Court in the county in which the tax was paid at any time after the expiration of six months from the time that the application was submitted. A denial of refund may be appealed within 60 days from the date of the denial by bringing an action in Tax Court in the county in which the tax was paid. The action is commenced by the serving of a petition for relief on the county treasurer, and by filing a copy with the court. The county attorney shall defend the action. The county treasurer shall notify the treasurer of each county that has or would receive a portion of the tax as paid.
(c) If the county treasurer determines a refund should be paid, or if a refund is ordered by the court, the county treasurer of each county that actually received a portion of the tax shall immediately pay a proportionate share of three percent of the refund using any available county funds. The county treasurer of each county that received, or would have received, a portion of the tax shall also pay their county's proportionate share of the remaining 97 percent of the court-ordered refund on or before the 20th day of the following month using solely the mortgage registry tax funds that would be paid to the commissioner of revenue on that date under section 287.12. If the funds on hand under this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in which the action was brought shall file a claim with the commissioner of revenue under section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the remaining portion upon receipt of a warrant from the state issued pursuant to the claim.
(d)
When any mortgage covers real property located in more than one county in this
state the total tax must be paid to the treasurer of the county where the
mortgage is first presented for recording, and the payment must be receipted as
provided in paragraph (a). If the
principal debt or obligation secured by such a multiple county mortgage exceeds
$10,000,000, the nonstate portion of the tax must be divided and paid over by
the county treasurer receiving it, on or before the 20th day of each month
after receipt, to the county or counties entitled in the ratio that the estimated
market value of the real property covered by the mortgage in each county bears
to the estimated market value of all the real property in this state
described in the mortgage. In making the
division and payment the county treasurer shall send a statement giving the
description of the real property described in the mortgage and the estimated
market value of the part located in each county. For this purpose, the treasurer of any county
may require the treasurer of any other county to certify to the former the estimated
market valuation value of any tract of real property in any
mortgage.
(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax collected for that purpose and the mortgagor is relieved of any further obligation to pay the tax as to the amount collected by the mortgagee for this purpose.
Sec. 42. Minnesota Statutes 2012, section 287.23, subdivision 1, is amended to read:
Subdivision 1. Real
property outside county. If any
taxable deed or instrument describes any real property located in more than one
county in this state, the total tax must be paid to the treasurer of the county
where the document is first presented for recording, and the payment must be
receipted as provided in section 287.08.
If the net consideration exceeds $700,000, the nonstate portion of the
tax must be divided and paid over by the county treasurer receiving it, on or
before the 20th day of each month after receipt, to the county or counties
entitled in the ratio which the estimated market value of the real
property covered by the document in each county bears to the estimated
market value of all the real property in this state described in the document. In making the division and payment the county
treasurer shall send a statement to the other involved counties giving the
description of the real property described in the document and the estimated
market value of the part located in each county. The treasurer of any county may require the
treasurer of any other county to certify to the former the estimated
market valuation value of any parcel of real property for this
purpose.
Sec. 43. Minnesota Statutes 2012, section 353G.08, subdivision 2, is amended to read:
Subd. 2. Cash flow funding requirement. If the executive director determines that an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has insufficient assets to meet the service pensions determined payable from the account, the executive director shall certify the amount of the potential service pension shortfall to the municipality or municipalities and the municipality or municipalities shall make an additional employer contribution to the account within ten days of the certification. If more than one municipality is associated with the account, unless the municipalities agree to a different allocation, the municipalities shall allocate the additional employer contribution one-half in proportion to the population of each municipality and one-half in proportion to the estimated market value of the property of each municipality.
Sec. 44. Minnesota Statutes 2012, section 365.025, subdivision 4, is amended to read:
Subd. 4. Major purchases: notice, petition, election. Before buying anything under subdivision 2 that costs more than 0.24177 percent of the estimated market value of the town, the town must follow this subdivision.
The town must publish in its official newspaper the board's resolution to pay for the property over time. Then a petition for an election on the contract may be filed with the clerk. The petition must be filed within ten days after the resolution is published. To require the election the petition must be signed by a number of voters equal to ten percent of the voters at the last regular town election. The contract then must be approved by a majority of those voting on the question. The question may be voted on at a regular or special election.
Sec. 45. Minnesota Statutes 2012, section 366.095, subdivision 1, is amended to read:
Subdivision 1. Certificates of indebtedness. The town board may issue certificates of indebtedness within the debt limits for a town purpose otherwise authorized by law. The certificates shall be payable in not more than ten years and be issued on the terms and in the manner as the board may determine. If the amount of the certificates to be issued exceeds 0.25 percent of the estimated market value of the town, they shall not be issued for at least ten days after publication in a newspaper of general circulation in the town of the board's resolution determining to issue them. If within that time, a petition asking for an election on the proposition signed by voters equal to ten percent of the number of voters at the last regular town election is filed with the clerk, the certificates shall not be issued until their issuance has been approved by a majority of the votes cast on the question at a regular or special election. A tax levy shall be made to pay the principal and interest on the certificates as in the case of bonds.
Sec. 46. Minnesota Statutes 2012, section 366.27, is amended to read:
366.27
FIREFIGHTERS' RELIEF; TAX LEVY.
The town board of any town in this state
having therein a platted portion on which resides 1,200 or more people, and
wherein a duly incorporated firefighters' relief association is located may
each year levy a tax not to exceed 0.00806 percent of taxable estimated
market value for the benefit of the relief association.
Sec. 47. Minnesota Statutes 2012, section 368.01, subdivision 23, is amended to read:
Subd. 23. Financing
purchase of certain equipment. The
town board may issue certificates of indebtedness within debt limits to
purchase fire or police equipment or ambulance equipment or street construction
or maintenance equipment. The
certificates shall be payable in not more than five years and be issued on
terms and in the manner as the board may determine. If the amount of the certificates to be
issued to finance a purchase exceeds 0.24177 percent of the estimated
market value of the town, excluding money and credits, they shall not be
issued for at least ten days after publication in the official newspaper of a
town board resolution determining to issue them. If before the end of that time, a petition
asking for an election on the proposition signed by voters equal to ten percent
of the number of voters at the last regular town election is filed with the
clerk, the certificates shall not be issued until the proposition of their
issuance has been approved by a majority of the votes cast on the question at a
regular or special election. A tax levy
shall be made for the payment of the principal and interest on the certificates
as in the case of bonds.
Sec. 48. Minnesota Statutes 2012, section 368.47, is amended to read:
368.47
TOWNS MAY BE DISSOLVED.
(1) When the voters residing within a town have failed to elect any town officials for more than ten years continuously;
(2) when a town has failed for a period of ten years to exercise any of the powers and functions of a town;
(3) when the estimated market value of a town drops to less than $165,000;
(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or unpaid because they are contested in proceedings for the enforcement of taxes, amounts to 12 percent of its market value; or
(5) when the state or federal government has acquired title to 50 percent of the real estate of a town,
which facts, or any of them, may be found and determined by the resolution of the county board of the county in which the town is located, according to the official records in the office of the county auditor, the county board by resolution may declare the town, naming it, dissolved and no longer entitled to exercise any of the powers or functions of a town.
In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters of the town shall express their approval or disapproval. The town clerk shall, upon a petition signed by a majority of the registered voters of the town, filed with the clerk at least 60 days before a regular or special town election, give notice at the same time and in the same manner of the election that the question of dissolution of the town will be submitted for determination at the election. At the election the question shall be voted upon by a separate ballot, the terms of which shall be either "for dissolution" or "against dissolution." The ballot shall be deposited in a separate ballot box and the result of the voting canvassed, certified, and returned in the same manner and at the same time as other facts and returns of the election. If a majority of the votes cast at the election are for dissolution, the town shall be dissolved. If a majority of the votes cast at the election are against dissolution, the town shall not be dissolved.
When a town is dissolved under sections 368.47 to 368.49 the county shall acquire title to any telephone company or other business conducted by the town. The business shall be operated by the board of county commissioners until it can be sold. The subscribers or patrons of the business shall have the first opportunity of purchase. If the town has any outstanding indebtedness chargeable to the business, the county auditor shall levy a tax against the property situated in the dissolved town to pay the indebtedness as it becomes due.
Sec. 49. Minnesota Statutes 2012, section 370.01, is amended to read:
370.01
CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.
The boundaries of counties may be changed by
taking territory from a county and attaching it to an adjoining county, and new
counties may be established out of territory of one or more existing counties. A new county shall contain at least 400
square miles and have at least 4,000 inhabitants. A proposed new county must have a total taxable
estimated market value of at least 35 percent of (i) the total taxable
estimated market value of the existing county, or (ii) the average total
taxable estimated market value of the existing counties, included
in the proposition. The determination of
the taxable estimated market value of a county must be made by
the commissioner of revenue. An existing
county shall not be reduced in area below 400 square miles, have less than
4,000 inhabitants, or have a total taxable estimated market value
of less than that required of a new county.
No change in the boundaries of any county having an area of more than 2,500 square miles, whether by the creation of a new county, or otherwise, shall detach from the existing county any territory within 12 miles of the county seat.
Sec. 50. Minnesota Statutes 2012, section 373.40, subdivision 1, is amended to read:
Subdivision 1. Definitions. For purposes of this section, the following terms have the meanings given.
(a) "Bonds" means an obligation as defined under section 475.51.
(b) "Capital improvement" means acquisition or betterment of public lands, buildings, or other improvements within the county for the purpose of a county courthouse, administrative building, health or social service facility, correctional facility, jail, law enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and bridges, and the acquisition of development rights in the form of conservation easements under chapter 84C. An improvement must have an expected useful life of five years or more to qualify. "Capital improvement" does not include a recreation or sports facility building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, swimming pool, exercise room or health spa), unless the building is part of an outdoor park facility and is incidental to the primary purpose of outdoor recreation.
(c) "Metropolitan county" means a county located in the seven-county metropolitan area as defined in section 473.121 or a county with a population of 90,000 or more.
(d) "Population" means the population established by the most recent of the following (determined as of the date the resolution authorizing the bonds was adopted):
(1) the federal decennial census,
(2) a special census conducted under contract by the United States Bureau of the Census, or
(3) a population estimate made either by the Metropolitan Council or by the state demographer under section 4A.02.
(e) "Qualified indoor ice arena" means a facility that meets the requirements of section 373.43.
(f) "Tax capacity" means total
taxable market value, but does not include captured market value.
Sec. 51. Minnesota Statutes 2012, section 373.40, subdivision 4, is amended to read:
Subd. 4.
Limitations on amount. A county may not issue bonds under this
section if the maximum amount of principal and interest to become due in any
year on all the outstanding bonds issued pursuant to this section (including
the bonds to be issued) will equal or exceed 0.12 percent of taxable the
estimated market value of property in the county. Calculation of the limit must be made using
the taxable estimated market value for the taxes payable year in
which the obligations are issued and sold.
This section does not limit the authority to issue bonds under any other
special or general law.
Sec. 52. Minnesota Statutes 2012, section 375.167, subdivision 1, is amended to read:
Subdivision 1. Appropriations. Notwithstanding any contrary law, a
county board may appropriate from the general revenue fund to any nonprofit
corporation a sum not to exceed 0.00604 percent of taxable estimated
market value to provide legal assistance to persons who are unable to afford
private legal counsel.
Sec. 53. Minnesota Statutes 2012, section 375.18, subdivision 3, is amended to read:
Subd. 3. Courthouse. Each county board may erect, furnish, and
maintain a suitable courthouse. No
indebtedness shall be created for a courthouse in excess of an amount
equal to a levy of 0.04030 percent of taxable estimated market
value without the approval of a majority of the voters of the county voting on
the question of issuing the obligation at an election.
Sec. 54. Minnesota Statutes 2012, section 375.555, is amended to read:
375.555
FUNDING.
To implement the county emergency jobs
program, the county board may expend an amount equal to what would be generated
by a levy of 0.01209 percent of taxable estimated market value. The money to be expended may be from any
available funds not otherwise earmarked.
Sec. 55. Minnesota Statutes 2012, section 383B.152, is amended to read:
383B.152
BUILDING AND MAINTENANCE FUND.
The county board may by resolution levy a tax to provide money which shall be kept in a fund known as the county reserve building and maintenance fund. Money in the fund shall be used solely for the construction, maintenance, and equipping of county buildings that are constructed or maintained by the board. The levy shall not
be subject to any limit fixed
by any other law or by any board of tax levy or other corresponding body, but
shall not exceed 0.02215 percent of taxable estimated market
value, less the amount required by chapter 475 to be levied in the year for the
payment of the principal of and interest on all bonds issued pursuant to Extra
Session Laws 1967, chapter 47, section 1.
Sec. 56. Minnesota Statutes 2012, section 383B.245, is amended to read:
383B.245
LIBRARY LEVY.
(a) The county board may levy a tax on the taxable property within the county to acquire, better, and construct county library buildings and branches and to pay principal and interest on bonds issued for that purpose.
(b) The county board may by resolution adopted by a five-sevenths vote issue and sell general obligation bonds of the county in the manner provided in sections 475.60 to 475.73. The bonds shall not be subject to the limitations of sections 475.51 to 475.59, but the maturity years and amounts and interest rates of each series of bonds shall be fixed so that the maximum amount of principal and interest to become due in any year, on the bonds of that series and of all outstanding series issued by or for the purposes of libraries, shall not exceed an amount equal to 0.01612 percent of estimated market value of all taxable property in the county as last finally equalized before the issuance of the new series. When the tax levy authorized in this section is collected it shall be appropriated and credited to a debt service fund for the bonds in amounts required each year in lieu of a countywide tax levy for the debt service fund under section 475.61.
Sec. 57. Minnesota Statutes 2012, section 383B.73, subdivision 1, is amended to read:
Subdivision 1. Levy. To provide funds for the purposes of the Three Rivers Park District as set forth in its annual budget, in lieu of the levies authorized by any other special law for such purposes, the Board of Park District Commissioners may levy taxes on all the taxable property in the county and park district at a rate not exceeding 0.03224 percent of estimated market value. Notwithstanding section 398.16, on or before October 1 of each year, after public hearing, the Board of Park District Commissioners shall adopt a budget for the ensuing year and shall determine the total amount necessary to be raised from ad valorem tax levies to meet its budget. The Board of Park District Commissioners shall submit the budget to the county board. The county board may veto or modify an item contained in the budget. If the county board determines to veto or to modify an item in the budget, it must, within 15 days after the budget was submitted by the district board, state in writing the specific reasons for its objection to the item vetoed or the reason for the modification. The Park District Board, after consideration of the county board's objections and proposed modifications, may reapprove a vetoed item or the original version of an item with respect to which a modification has been proposed, by a two-thirds majority. If the district board does not reapprove a vetoed item, the item shall be deleted from the budget. If the district board does not reapprove the original version of a modified item, the item shall be included in the budget as modified by the county board. After adoption of the final budget and no later than October 1, the superintendent of the park district shall certify to the office of the Hennepin County director of tax and public records exercising the functions of the county auditor the total amount to be raised from ad valorem tax levies to meet its budget for the ensuing year. The director of tax and public records shall add the amount of any levy certified by the district to other tax levies on the property of the county within the district for collection by the director of tax and public records with other taxes. When collected, the director shall make settlement of such taxes with the district in the same manner as other taxes are distributed to the other political subdivisions in Hennepin County.
Sec. 58. Minnesota Statutes 2012, section 383E.20, is amended to read:
383E.20
BONDING FOR COUNTY LIBRARY BUILDINGS.
The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue and sell general obligation bonds of the county in the manner provided in chapter 475 to acquire, better, and construct county library buildings. The bonds shall not be subject to the requirements of sections 475.57 to 475.59. The maturity years and amounts
and interest rates of each
series of bonds shall be fixed so that the maximum amount of principal and
interest to become due in any year, on the bonds of that series and of all
outstanding series issued by or for the purposes of libraries, shall not exceed
an amount equal to .01 percent of the taxable estimated market
value of all taxable property in the county, excluding any taxable property
taxed by any city for the support of any free public library. When the tax levy authorized in this section
is collected, it shall be appropriated and credited to a debt service fund for
the bonds. The tax levy for the debt
service fund under section 475.61 shall be reduced by the amount available or
reasonably anticipated to be available in the fund to make payments otherwise
payable from the levy pursuant to section 475.61.
Sec. 59. Minnesota Statutes 2012, section 383E.23, is amended to read:
383E.23
LIBRARY TAX.
The Anoka County Board may levy a tax of not
more than .01 percent of the taxable estimated market value of
taxable property located within the county excluding any taxable property taxed
by any city for the support of any free public library, to acquire, better, and
construct county library buildings and to pay principal and interest on bonds
issued for that purpose. The tax shall
be disregarded in the calculation of levies or limits on levies provided by
section 373.40, or other law.
Sec. 60. Minnesota Statutes 2012, section 385.31, is amended to read:
385.31
PAYMENT OF COUNTY ORDERS OR WARRANTS.
When any order or warrant drawn on the
treasurer is presented for payment, if there is money in the treasury for that
purpose, the county treasurer shall redeem the same, and write across the
entire face thereof the word "redeemed," the date of the redemption,
and the treasurer's official signature. If
there is not sufficient funds in the proper accounts to pay such orders they
shall be numbered and registered in their order of presentation, and proper
endorsement thereof shall be made on such orders and they shall be entitled to
payment in like order. Such orders shall
bear interest at not to exceed the rate of six percent per annum from such date
of presentment. The treasurer, as soon
as there is sufficient money in the treasury, shall appropriate and set apart a
sum sufficient for the payment of the orders so presented and registered, and,
if entitled to interest, issue to the original holder a notice that interest
will cease in 30 days from the date of such notice; and, if orders thus
entitled to priority of payment are not then presented, the next in order of
registry may be paid until such orders are presented. No interest shall be paid on any order, except
upon a warrant drawn by the county auditor for that purpose, giving the number
and the date of the order on account of which the interest warrant is drawn. In any county in this state now or hereafter
having a an estimated market value of all taxable property,
exclusive of money and credits, of not less than $1,033,000,000, the county
treasurer, in order to save payment of interest on county warrants drawn upon a
fund in which there shall be temporarily insufficient money in the treasury to
redeem the same, may borrow temporarily from any other fund in the county
treasury in which there is a sufficient balance to care for the needs of such
fund and allow a temporary loan or transfer to any other fund, and may pay such
warrants out of such funds. Any such
money so transferred and used in redeeming such county warrants shall be
returned to the fund from which drawn as soon as money shall come in to the
credit of such fund on which any such warrant was drawn and paid as aforesaid. Any county operating on a cash basis may use
a combined form of warrant or order and check, which, when signed by the chair
of the county board and by the auditor, is an order or warrant for the payment
of the claim, and, when countersigned by the county treasurer, is a check for
the payment of the amount thereof.
Sec. 61. Minnesota Statutes 2012, section 394.36, subdivision 1, is amended to read:
Subdivision 1. Continuation of nonconformity; limitations. Except as provided in subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land or premises existing at the time of the adoption of an official control under this chapter, may be continued, although the use or occupation does not conform to the official
control. If the nonconformity or occupancy is discontinued for a period of more than one year, or any nonconforming building or structure is destroyed by fire or other peril to the extent of 50 percent of its estimated market value, any subsequent use or occupancy of the land or premises shall be a conforming use or occupancy.
Sec. 62. Minnesota Statutes 2012, section 398A.04, subdivision 8, is amended to read:
Subd. 8. Taxation. Before deciding to exercise the power to tax, the authority shall give six weeks' published notice in all municipalities in the region. If a number of voters in the region equal to five percent of those who voted for candidates for governor at the last gubernatorial election present a petition within nine weeks of the first published notice to the secretary of state requesting that the matter be submitted to popular vote, it shall be submitted at the next general election. The question prepared shall be:
"Shall the regional rail authority have the power to impose a property tax?
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Yes …..……… |
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No ………….." |
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If a majority of those voting on the question approve or if no petition is presented within the prescribed time the authority may levy a tax at any annual rate not exceeding 0.04835 percent of estimated market value of all taxable property situated within the municipality or municipalities named in its organization resolution. Its recording officer shall file, on or before September 15, in the office of the county auditor of each county in which territory under the jurisdiction of the authority is located a certified copy of the board of commissioners' resolution levying the tax, and each county auditor shall assess and extend upon the tax rolls of each municipality named in the organization resolution the portion of the tax that bears the same ratio to the whole amount that the net tax capacity of taxable property in that municipality bears to the net tax capacity of taxable property in all municipalities named in the organization resolution. Collections of the tax shall be remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, the amount levied for light rail transit purposes under this subdivision shall not exceed 75 percent of the amount levied in 1990 for light rail transit purposes under this subdivision.
Sec. 63. Minnesota Statutes 2012, section 401.05, subdivision 3, is amended to read:
Subd. 3. Leasing. (a) A county or joint powers board of a group of counties which acquires or constructs and equips or improves facilities under this chapter may, with the approval of the board of county commissioners of each county, enter into a lease agreement with a city situated within any of the counties, or a county housing and redevelopment authority established under chapter 469 or any special law. Under the lease agreement, the city or county housing and redevelopment authority shall:
(1) construct or acquire and equip or improve a facility in accordance with plans prepared by or at the request of a county or joint powers board of the group of counties and approved by the commissioner of corrections; and
(2) finance the facility by the issuance of revenue bonds.
(b) The county or joint powers board of a group of counties may lease the facility site, improvements, and equipment for a term upon rental sufficient to produce revenue for the prompt payment of the revenue bonds and all interest accruing on them. Upon completion of payment, the lessee shall acquire title. The real and personal property acquired for the facility constitutes a project and the lease agreement constitutes a revenue agreement as provided in sections 469.152 to 469.165. All proceedings by the city or county housing and redevelopment authority and the county or joint powers board shall be as provided in sections 469.152 to 469.165, with the following adjustments:
(1) no tax may be imposed upon the property;
(2) the approval of the project by the commissioner of employment and economic development is not required;
(3) the Department of Corrections shall be furnished and shall record information concerning each project as it may prescribe, in lieu of reports required on other projects to the commissioner of employment and economic development;
(4) the rentals required to be paid under the lease agreement shall not exceed in any year one-tenth of one percent of the estimated market value of property within the county or group of counties as last equalized before the execution of the lease agreement;
(5) the county or group of counties shall provide for payment of all rentals due during the term of the lease agreement in the manner required in subdivision 4;
(6) no mortgage on the facilities shall be granted for the security of the bonds, but compliance with clause (5) may be enforced as a nondiscretionary duty of the county or group of counties; and
(7) the county or the joint powers board of the group of counties may sublease any part of the facilities for purposes consistent with their maintenance and operation.
Sec. 64. Minnesota Statutes 2012, section 410.32, is amended to read:
410.32
CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
(a) Notwithstanding any contrary provision of other law or charter, a home rule charter city may, by resolution and without public referendum, issue capital notes subject to the city debt limit to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or unbundled.
(c) The equipment or software must have an expected useful life at least as long as the term of the notes.
(d) The notes shall be payable in not more than ten years and be issued on terms and in the manner the city determines. The total principal amount of the capital notes issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of taxable property in the city for that year.
(e) A tax levy shall be made for the payment of the principal and interest on the notes, in accordance with section 475.61, as in the case of bonds.
(f) Notes issued under this section shall require an affirmative vote of two-thirds of the governing body of the city.
(g) Notwithstanding a contrary provision of other law or charter, a home rule charter city may also issue capital notes subject to its debt limit in the manner and subject to the limitations applicable to statutory cities pursuant to section 412.301.
Sec. 65. Minnesota Statutes 2012, section 412.221, subdivision 2, is amended to read:
Subd. 2. Contracts. The council shall have power to make such contracts as may be deemed necessary or desirable to make effective any power possessed by the council. The city may purchase personal property through a conditional sales contract and real property through a contract for deed under which contracts the seller is confined to the remedy of recovery of the property in case of nonpayment of all or part of the purchase price, which shall be payable over a period of not to exceed five years. When the contract price of property to be purchased by contract for deed or conditional sales contract exceeds 0.24177 percent of the estimated market value of the city, the city may not enter into such a contract for at least ten days after publication in the official newspaper of a council resolution determining to purchase property by such a contract; and, if before the end of that time a petition asking for an election on the proposition signed by voters equal to ten percent of the number of voters at the last regular city election is filed with the clerk, the city may not enter into such a contract until the proposition has been approved by a majority of the votes cast on the question at a regular or special election.
Sec. 66. Minnesota Statutes 2012, section 412.301, is amended to read:
412.301
FINANCING PURCHASE OF CERTAIN EQUIPMENT.
(a) The council may issue certificates of indebtedness or capital notes subject to the city debt limits to purchase capital equipment.
(b) For purposes of this section, "capital equipment" means:
(1) public safety equipment, ambulance and other medical equipment, road construction and maintenance equipment, and other capital equipment; and
(2) computer hardware and software, whether bundled with machinery or equipment or unbundled.
(c) The equipment or software must have an expected useful life at least as long as the terms of the certificates or notes.
(d) Such certificates or notes shall be payable in not more than ten years and shall be issued on such terms and in such manner as the council may determine.
(e) If the amount of the certificates or notes to be issued to finance any such purchase exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall not be issued for at least ten days after publication in the official newspaper of a council resolution determining to issue them; and if before the end of that time, a petition asking for an election on the proposition signed by voters equal to ten percent of the number of voters at the last regular municipal election is filed with the clerk, such certificates or notes shall not be issued until the proposition of their issuance has been approved by a majority of the votes cast on the question at a regular or special election.
(f) A tax levy shall be made for the payment of the principal and interest on such certificates or notes, in accordance with section 475.61, as in the case of bonds.
Sec. 67. Minnesota Statutes 2012, section 428A.02, subdivision 1, is amended to read:
Subdivision 1. Ordinance. The governing body of a city may adopt an ordinance establishing a special service district. Only property that is classified under section 273.13 and used for commercial, industrial, or public utility purposes, or is vacant land zoned or designated on a land use plan for commercial or industrial use and located in the special service district, may be subject to the charges imposed by the city on the special service district. Other types of property may be included within the boundaries of the special service district but are not subject to the levies or charges imposed by the city on the special service district. If 50 percent or more of the estimated market value of a
parcel of property is classified under section 273.13 as commercial, industrial, or vacant land zoned or designated on a land use plan for commercial or industrial use, or public utility for the current assessment year, then the entire taxable market value of the property is subject to a service charge based on net tax capacity for purposes of sections 428A.01 to 428A.10. The ordinance shall describe with particularity the area within the city to be included in the district and the special services to be furnished in the district. The ordinance may not be adopted until after a public hearing has been held on the question. Notice of the hearing shall include the time and place of hearing, a map showing the boundaries of the proposed district, and a statement that all persons owning property in the proposed district that would be subject to a service charge will be given opportunity to be heard at the hearing. Within 30 days after adoption of the ordinance under this subdivision, the governing body shall send a copy of the ordinance to the commissioner of revenue.
Sec. 68. Minnesota Statutes 2012, section 430.102, subdivision 2, is amended to read:
Subd. 2. Council approval; special tax levy limitation. The council shall receive and consider the estimate required in subdivision 1 and the items of cost after notice and hearing before it or its appropriate committee as it considers necessary or expedient, and shall approve the estimate, with necessary amendments. The amounts of each item of cost estimated are then appropriated to operate, maintain, and improve the pedestrian mall during the next fiscal year. The amount of the special tax to be charged under subdivision 1, clause (3), must not, however, exceed 0.12089 percent of estimated market value of taxable property in the district. The council shall make any necessary adjustment in costs of operating and maintaining the district to keep the amount of the tax within this limitation.
Sec. 69. Minnesota Statutes 2012, section 447.10, is amended to read:
447.10
TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.
The governing body of a city of the first
class owning a hospital may annually levy a tax to operate and maintain the
hospital. The tax must not exceed
0.00806 percent of taxable estimated market value.
Sec. 70. Minnesota Statutes 2012, section 450.19, is amended to read:
450.19
TOURIST CAMPING GROUNDS.
A home rule charter or statutory city or town
may establish and maintain public tourist camping grounds. The
governing body thereof may acquire by lease, purchase, or gift, suitable lands
located either within or without the corporate limits for use as public tourist
camping grounds and provide for the equipment, operation, and maintenance of
the same. The amount that may be
expended for the maintenance, improvement, or operation of tourist camping
grounds shall not exceed, in any year, a sum equal to 0.00806 percent of taxable
estimated market value.
Sec. 71. Minnesota Statutes 2012, section 450.25, is amended to read:
450.25
MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX LEVY.
After the acquisition of any museum, gallery, or school of arts or crafts, the board of park commissioners of the city in which it is located shall cause to be included in the annual tax levy upon all the taxable property of the county in which the museum, gallery, or school of arts or crafts is located, a tax of 0.00846 percent of estimated market value. The board shall certify the levy to the county auditor and it shall be added to, and collected with and as part of, the general, real, and personal property taxes, with like penalties and interest, in case of nonpayment and default, and all provisions of law in respect to the levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be paid to the city treasurer of the city in which is located the museum, gallery, or school of arts or crafts and credited to a fund to be known as the park museum fund, and shall be used only for the purposes specified in sections 450.23 to 450.25. Any part of the proceeds of the levy not expended for the purposes specified in section 450.24 may be used for the erection of new buildings for the same purposes.
Sec. 72. Minnesota Statutes 2012, section 458A.10, is amended to read:
458A.10
PROPERTY TAX.
The commission shall annually levy a tax not to exceed 0.12089 percent of estimated market value on all the taxable property in the transit area at a rate sufficient to produce an amount necessary for the purposes of sections 458A.01 to 458A.15, other than the payment of principal and interest due on any revenue bonds issued pursuant to section 458A.05. Property taxes levied under this section shall be certified by the commission to the county auditors of the transit area, extended, assessed, and collected in the manner provided by law for the property taxes levied by the governing bodies of cities. The proceeds of the taxes levied under this section shall be remitted by the respective county treasurers to the treasurer of the commission, who shall credit the same to the funds of the commission for use for the purposes of sections 458A.01 to 458A.15 subject to any applicable pledges or limitations on account of tax anticipation certificates or other specific purposes. At any time after making a tax levy under this section and certifying it to the county auditors, the commission may issue general obligation certificates of indebtedness in anticipation of the collection of the taxes as provided by section 412.261.
Sec. 73. Minnesota Statutes 2012, section 458A.31, subdivision 1, is amended to read:
Subdivision 1. Levy
limit. Notwithstanding anything to
the contrary contained in the charter of the city of Duluth, any ordinance
thereof, or any statute applicable thereto, limiting the amount levied in any
one year for general or special purposes, the city council of the city of Duluth
shall each year levy a tax in an amount not to exceed 0.07253 percent of taxable
estimated market value, by ordinance.
An ordinance fixing the levy shall take effect immediately upon its
passage and approval. The proceeds of
the levy shall be paid into the city treasury and deposited in the operating
fund provided for in section 458A.24, subdivision 3.
Sec. 74. Minnesota Statutes 2012, section 465.04, is amended to read:
465.04
ACCEPTANCE OF GIFTS.
Cities of the second, third, or fourth
class, having at any time a an estimated market value of not more
than $41,000,000, exclusive of money and credits, as officially
equalized by the commissioner of revenue, either under home rule charter or
under the laws of this state, in addition to all other powers possessed by
them, hereby are authorized and empowered to receive and accept gifts and
donations for the use and benefit of such cities and the inhabitants thereof
upon terms and conditions to be approved by the governing bodies of such
cities; and such cities are authorized to comply with and perform such terms
and conditions, which may include payment to the donor or donors of interest on
the value of the gift at not exceeding five percent per annum payable annually
or semiannually, during the remainder of the natural life or lives of such
donor or donors.
Sec. 75. Minnesota Statutes 2012, section 469.033, subdivision 6, is amended to read:
Subd. 6. Operation area as taxing district, special tax. All of the territory included within the area of operation of any authority shall constitute a taxing district for the purpose of levying and collecting special benefit taxes as provided in this subdivision. All of the taxable property, both real and personal, within that taxing district shall be deemed to be benefited by projects to the extent of the special taxes levied under this subdivision. Subject to the consent by resolution of the governing body of the city in and for which it was created, an authority may levy a tax upon all taxable property within that taxing district. The tax shall be extended, spread, and included with and as a part of the general taxes for state, county, and municipal purposes by the county auditor, to be collected and enforced therewith, together with the penalty, interest, and costs. As the tax, including any penalties, interest, and costs, is collected by the county treasurer it shall be accumulated and kept in a separate fund to be known as the "housing and redevelopment project fund." The money in the fund shall be turned over to the authority at the same time and in the same manner that the tax collections for the city are turned over to the city, and shall be expended
only for the purposes of
sections 469.001 to 469.047. It shall be
paid out upon vouchers signed by the chair of the authority or an authorized
representative. The amount of the levy
shall be an amount approved by the governing body of the city, but shall not
exceed 0.0185 percent of taxable estimated market value. The authority shall each year formulate and
file a budget in accordance with the budget procedure of the city in the same
manner as required of executive departments of the city or, if no budgets are
required to be filed, by August 1. The
amount of the tax levy for the following year shall be based on that budget.
Sec. 76. Minnesota Statutes 2012, section 469.034, subdivision 2, is amended to read:
Subd. 2. General obligation revenue bonds. (a) An authority may pledge the general obligation of the general jurisdiction governmental unit as additional security for bonds payable from income or revenues of the project or the authority. The authority must find that the pledged revenues will equal or exceed 110 percent of the principal and interest due on the bonds for each year. The proceeds of the bonds must be used for a qualified housing development project or projects. The obligations must be issued and sold in the manner and following the procedures provided by chapter 475, except the obligations are not subject to approval by the electors, and the maturities may extend to not more than 35 years for obligations sold to finance housing for the elderly and 40 years for other obligations issued under this subdivision. The authority is the municipality for purposes of chapter 475.
(b) The principal amount of the issue must be approved by the governing body of the general jurisdiction governmental unit whose general obligation is pledged. Public hearings must be held on issuance of the obligations by both the authority and the general jurisdiction governmental unit. The hearings must be held at least 15 days, but not more than 120 days, before the sale of the obligations.
(c) The maximum amount of general obligation
bonds that may be issued and outstanding under this section equals the greater
of (1) one-half of one percent of the taxable estimated market
value of the general jurisdiction governmental unit whose general obligation is
pledged, or (2) $3,000,000. In the case
of county or multicounty general obligation bonds, the outstanding general
obligation bonds of all cities in the county or counties issued under this
subdivision must be added in calculating the limit under clause (1).
(d) "General jurisdiction governmental unit" means the city in which the housing development project is located. In the case of a county or multicounty authority, the county or counties may act as the general jurisdiction governmental unit. In the case of a multicounty authority, the pledge of the general obligation is a pledge of a tax on the taxable property in each of the counties.
(e) "Qualified housing development project" means a housing development project providing housing either for the elderly or for individuals and families with incomes not greater than 80 percent of the median family income as estimated by the United States Department of Housing and Urban Development for the standard metropolitan statistical area or the nonmetropolitan county in which the project is located. The project must be owned for the term of the bonds either by the authority or by a limited partnership or other entity in which the authority or another entity under the sole control of the authority is the sole general partner and the partnership or other entity must receive (1) an allocation from the Department of Management and Budget or an entitlement issuer of tax-exempt bonding authority for the project and a preliminary determination by the Minnesota Housing Finance Agency or the applicable suballocator of tax credits that the project will qualify for four percent low-income housing tax credits or (2) a reservation of nine percent low-income housing tax credits from the Minnesota Housing Finance Agency or a suballocator of tax credits for the project. A qualified housing development project may admit nonelderly individuals and families with higher incomes if:
(1) three years have passed since initial occupancy;
(2) the authority finds the project is experiencing unanticipated vacancies resulting in insufficient revenues, because of changes in population or other unforeseen circumstances that occurred after the initial finding of adequate revenues; and
(3) the authority finds a tax levy or payment from general assets of the general jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher income individuals or families are not admitted.
(f) The authority may issue bonds to refund bonds issued under this subdivision in accordance with section 475.67. The finding of the adequacy of pledged revenues required by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the issuance of refunding bonds. This paragraph applies to refunding bonds issued on and after July 1, 1992.
Sec. 77. Minnesota Statutes 2012, section 469.053, subdivision 4, is amended to read:
Subd. 4. Mandatory
city levy. A city shall, at the
request of the port authority, levy a tax in any year for the benefit of the
port authority. The tax must not exceed
0.01813 percent of taxable estimated market value. The amount levied must be paid by the city
treasurer to the treasurer of the port authority, to be spent by the authority.
Sec. 78. Minnesota Statutes 2012, section 469.053, subdivision 4a, is amended to read:
Subd. 4a. Seaway
port authority levy. A levy made
under this subdivision shall replace the mandatory city levy under subdivision
4. A seaway port authority is a special
taxing district under section 275.066 and may levy a tax in any year for the
benefit of the seaway port authority.
The tax must not exceed 0.01813 percent of taxable estimated
market value. The county auditor shall
distribute the proceeds of the property tax levy to the seaway port authority.
Sec. 79. Minnesota Statutes 2012, section 469.053, subdivision 6, is amended to read:
Subd. 6. Discretionary
city levy. Upon request of a port
authority, the port authority's city may levy a tax to be spent by and for its
port authority. The tax must enable the
port authority to carry out efficiently and in the public interest sections
469.048 to 469.068 to create and develop industrial development districts. The levy must not be more than 0.00282
percent of taxable estimated market value. The county treasurer shall pay the proceeds
of the tax to the port authority treasurer.
The money may be spent by the authority in performance of its duties to
create and develop industrial development districts. In spending the money the authority must
judge what best serves the public interest.
The levy in this subdivision is in addition to the levy in subdivision
4.
Sec. 80. Minnesota Statutes 2012, section 469.107, subdivision 1, is amended to read:
Subdivision 1. City
tax levy. A city may, at the request
of the authority, levy a tax in any year for the benefit of the authority. The tax must be not more than 0.01813 percent
of taxable estimated market value. The amount levied must be paid by the city
treasurer to the treasurer of the authority, to be spent by the authority.
Sec. 81. Minnesota Statutes 2012, section 469.180, subdivision 2, is amended to read:
Subd. 2. Tax
levies. Notwithstanding any law, the
county board of any county may appropriate from the general revenue fund a sum
not to exceed a county levy of 0.00080 percent of taxable estimated
market value to carry out the purposes of this section.
Sec. 82. Minnesota Statutes 2012, section 469.187, is amended to read:
469.187
FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY BOARD.
Any city of the first class may
expend money for city publicity purposes.
The city may levy a tax, not exceeding 0.00080 percent of taxable
estimated market value. The
proceeds of the levy shall be expended in the manner and for the city publicity
purposes the council directs. The
council may establish and provide for a publicity board or bureau to administer
the fund, subject to the conditions and limitations the council prescribes by
ordinance.
Sec. 83. Minnesota Statutes 2012, section 469.206, is amended to read:
469.206
HAZARDOUS PROPERTY PENALTY.
A city may assess a penalty up to one percent of the estimated market value of real property, including any building located within the city that the city determines to be hazardous as defined in section 463.15, subdivision 3. The city shall send a written notice to the address to which the property tax statement is sent at least 90 days before it may assess the penalty. If the owner of the property has not paid the penalty or fixed the property within 90 days after receiving notice of the penalty, the penalty is considered delinquent and is increased by 25 percent each 60 days the penalty is not paid and the property remains hazardous. For the purposes of this section, a penalty that is delinquent is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the same manner as delinquent property taxes.
Sec. 84. Minnesota Statutes 2012, section 471.24, is amended to read:
471.24
TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF CEMETERY.
Where a statutory city or town owns and
maintains an established cemetery or burial ground, either within or without
the municipal limits, the statutory city or town may, by mutual agreement with
contiguous statutory cities and towns, each having a an estimated
market value of not less than $2,000,000, join together in the maintenance of
such public cemetery or burial ground for the use of the inhabitants of each of
such municipalities; and each such municipality is hereby authorized, by action
of its council or governing body, to levy a tax or make an appropriation for
the annual support and maintenance of such cemetery or burial ground; provided,
the amount thus appropriated by each municipality shall not exceed a total of
$10,000 in any one year.
Sec. 85. Minnesota Statutes 2012, section 471.571, subdivision 1, is amended to read:
Subdivision 1. Application. This section applies to each city in
which the net tax capacity of real and personal property consists in part of
iron ore or lands containing taconite or semitaconite and in which the total taxable
estimated market value of real and personal property exceeds $2,500,000.
Sec. 86. Minnesota Statutes 2012, section 471.571, subdivision 2, is amended to read:
Subd. 2. Creation of fund, tax levy. The governing body of the city may create a permanent improvement and replacement fund to be maintained by an annual tax levy. The governing body may levy a tax in excess of any charter limitation for the support of the permanent improvement and replacement fund, but not exceeding the following:
(a) in cities having a population of not
more than 500 inhabitants, the lesser of $20 per capita or 0.08059 percent of taxable
estimated market value;
(b) in cities having a population of more
than 500 and less than 2500 2,500, the greater of $12.50 per
capita or $10,000 but not exceeding 0.08059 percent of taxable estimated
market value;
(c) in cities having a population of more
than 2500 2,500 or more inhabitants, the greater of $10 per capita
or $31,500 but not exceeding 0.08059 percent of taxable estimated
market value.
Sec. 87. Minnesota Statutes 2012, section 471.73, is amended to read:
471.73
ACCEPTANCE OF PROVISIONS.
In the case of any city within the class
specified in section 471.72 having a an estimated market
value, as defined in section 471.72, in excess of $37,000,000; and in
the case of any statutory city within such class having a an
estimated market value, as defined in section 471.72, of less than
$5,000,000; and in the case of any statutory city within such class which is
governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in the case
of any statutory city within such class which is governed by Laws 1929, chapter
208, and has a an estimated market value of less than
$83,000,000; and in the case of any school district within such class having a
an estimated market value, as defined in section 471.72, of more
than $54,000,000; and in the case of all towns within said class; sections
471.71 to 471.83 apply only if the governing body of the city or statutory
city, the board of the school district, or the town board of the town shall
have adopted a resolution determining to issue bonds under the provisions of
sections 471.71 to 471.83 or to go upon a cash basis in accordance with the
provisions thereof.
Sec. 88. Minnesota Statutes 2012, section 473.325, subdivision 2, is amended to read:
Subd. 2. Chapter 475 applies; exceptions. The Metropolitan Council shall sell and issue the bonds in the manner provided in chapter 475, and shall have the same powers and duties as a municipality issuing bonds under that law, except that the approval of a majority of the electors shall not be required and the net debt limitations shall not apply. The terms of each series of bonds shall be fixed so that the amount of principal and interest on all outstanding and undischarged bonds, together with the bonds proposed to be issued, due in any year shall not exceed 0.01209 percent of estimated market value of all taxable property in the metropolitan area as last finally equalized prior to a proposed issue. The bonds shall be secured in accordance with section 475.61, subdivision 1, and any taxes required for their payment shall be levied by the council, shall not affect the amount or rate of taxes which may be levied by the council for other purposes, shall be spread against all taxable property in the metropolitan area and shall not be subject to limitation as to rate or amount. Any taxes certified by the council to the county auditors for collection shall be reduced by the amount received by the council from the commissioner of management and budget or the federal government for the purpose of paying the principal and interest on bonds to which the levy relates. The council shall certify the fact and amount of all money so received to the county auditors, and the auditors shall reduce the levies previously made for the bonds in the manner and to the extent provided in section 475.61, subdivision 3.
Sec. 89. Minnesota Statutes 2012, section 473.629, is amended to read:
473.629
VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL DISTRICTS.
As to any lands to be detached from
any school district under the provisions hereof section 473.625,
notwithstanding such prospective the detachment, the estimated
market value of such the detached lands and the net tax
capacity of taxable properties now located therein or thereon
shall be and on the lands on the date of the detachment constitute from
and after the date of the enactment hereof a part of the estimated
market value of properties upon the basis of which such used to
calculate the net debt limit of the school district may issue its bonds,. The value of such the lands for
such purpose to be and other taxable properties for purposes of the
school district's net debt limit are 33-1/3 percent of the estimated
market value thereof as determined and certified by said the
assessor to said the school district, and it shall be the duty
of such the assessor annually on or before the tenth day of October from
and after the passage hereof, to so of each year, shall determine
and certify that value; provided, however, that the value of such
the detached lands and such taxable properties shall never exceed
20 percent of the estimated market value of all properties constituting
and making up the basis aforesaid used to calculate the net debt limit
of the school district.
Sec. 90. Minnesota Statutes 2012, section 473.661, subdivision 3, is amended to read:
Subd. 3. Levy limit. In any budget certified by the commissioners under this section, the amount included for operation and maintenance shall not exceed an amount which, when extended against the property taxable therefor under section 473.621, subdivision 5, will require a levy at a rate of 0.00806 percent of estimated market value. Taxes levied by the corporation shall not affect the amount or rate of taxes which may be levied by any other local government unit within the metropolitan area under the provisions of any charter.
Sec. 91. Minnesota Statutes 2012, section 473.667, subdivision 9, is amended to read:
Subd. 9. Additional taxes. Nothing herein shall prevent the commission from levying a tax not to exceed 0.00121 percent of estimated market value on taxable property within its taxing jurisdiction, in addition to any levies found necessary for the debt service fund authorized by section 473.671. Nothing herein shall prevent the levy and appropriation for purposes of the commission of any other tax on property or on any income, transaction, or privilege, when and if authorized by law. All collections of any taxes so levied shall be included in the revenues appropriated for the purposes referred to in this section, unless otherwise provided in the law authorizing the levies; but no covenant as to the continuance or as to the rate and amount of any such levy shall be made with the holders of the commission's bonds unless specifically authorized by law.
Sec. 92. Minnesota Statutes 2012, section 473.671, is amended to read:
473.671
LIMIT OF TAX LEVY.
The taxes levied against the property of the
metropolitan area in any one year shall not exceed 0.00806 percent of taxable
estimated market value, exclusive of taxes levied to pay the principal
or interest on any bonds or indebtedness of the city issued under Laws 1943,
chapter 500, and exclusive of any taxes levied to pay the share of the city for
payments on bonded indebtedness of the corporation provided for in Laws 1943,
chapter 500. The levy of taxes
authorized in Laws 1943, chapter 500, shall be in addition to the maximum rate
allowed to be levied to defray the cost of government under the provisions of
the charter of any city affected by Laws 1943, chapter 500.
Sec. 93. Minnesota Statutes 2012, section 473.711, subdivision 2a, is amended to read:
Subd. 2a. Tax levy. (a) The commission may levy a tax on all taxable property in the district as defined in section 473.702 to provide funds for the purposes of sections 473.701 to 473.716. The tax shall not exceed the property tax levy limitation determined in this subdivision. A participating county may agree to levy an additional tax to be used by the commission for the purposes of sections 473.701 to 473.716 but the sum of the county's and commission's taxes may not exceed the county's proportionate share of the property tax levy limitation determined under this subdivision based on the ratio of its total net tax capacity to the total net tax capacity of the entire district as adjusted by section 270.12, subdivision 3. The auditor of each county in the district shall add the amount of the levy made by the district to other taxes of the county for collection by the county treasurer with other taxes. When collected, the county treasurer shall make settlement of the tax with the district in the same manner as other taxes are distributed to political subdivisions. No county shall levy any tax for mosquito, disease vectoring tick, and black gnat (Simuliidae) control except under this section. The levy shall be in addition to other taxes authorized by law.
(b) The property tax levied by the
Metropolitan Mosquito Control Commission shall not exceed the product of (i)
the commission's property tax levy limitation for the previous year determined
under this subdivision multiplied by (ii) an index for market valuation changes
equal to the total estimated market valuation value of all
taxable property for the current tax payable year located within the district
plus any area that has been added to the district since the previous year,
divided by the total estimated market valuation value of
all taxable property located within the district for the previous taxes payable
year.
(c) For the purpose of
determining the commission's property tax levy limitation under this
subdivision, "total market valuation" means the total market
valuation of all taxable property within the district without valuation
adjustments for fiscal disparities (chapter 473F), tax increment financing
(sections 469.174 to 469.179), and high voltage transmission lines (section
273.425).
Sec. 94. Minnesota Statutes 2012, section 473F.02, subdivision 12, is amended to read:
Subd. 12. Adjusted
market value. "Adjusted
market value" of real and personal property within a municipality means
the assessor's estimated taxable market value, as defined in
section 272.03, of all real and personal property, including the value of
manufactured housing, within the municipality, adjusted for sales ratios in
a manner similar to the adjustments made to city and town net tax capacities. For purposes of sections 473F.01 to 473F.13,
the commissioner of revenue shall annually make determinations and reports with
respect to each municipality which are comparable to those it makes for school
districts under section 127A.48, subdivisions 1 to 6, in the same manner
and at the same times as are prescribed by the subdivisions. The commissioner of revenue shall annually
determine, for each municipality, information comparable to that required by
section 475.53, subdivision 4, for school districts, as soon as practicable
after it becomes available. The
commissioner of revenue shall then compute the equalized market value of property
within each municipality using the aggregate sales ratios from the Department
of Revenue's sales ratio study.
Sec. 95. Minnesota Statutes 2012, section 473F.02, subdivision 14, is amended to read:
Subd. 14. Fiscal
capacity. "Fiscal
capacity" of a municipality means its valuation adjusted market
value, determined as of January 2 of any year, divided by its population,
determined as of a date in the same year.
Sec. 96. Minnesota Statutes 2012, section 473F.02, subdivision 15, is amended to read:
Subd. 15. Average
fiscal capacity. "Average
fiscal capacity" of municipalities means the sum of the valuations adjusted
market values of all municipalities, determined as of January 2 of any
year, divided by the sum of their populations, determined as of a date in the
same year.
Sec. 97. Minnesota Statutes 2012, section 473F.02, subdivision 23, is amended to read:
Subd. 23. Net tax capacity. "Net tax capacity" means the taxable market value of real and personal property multiplied by its net tax capacity rates in section 273.13.
Sec. 98. Minnesota Statutes 2012, section 473F.08, subdivision 10, is amended to read:
Subd. 10. Adjustment
of value or net tax capacity. For
the purpose of computing the amount or rate of any salary, aid, tax, or debt
authorized, required, or limited by any provision of any law or charter, where
such authorization, requirement, or limitation is related in any manner to any
value or valuation of taxable property within any governmental unit, such value
or net tax capacity fiscal capacity under section 473F.02, subdivision
14, a municipality's taxable market value shall be adjusted to reflect the adjustments
reductions to net tax capacity effected by subdivision 2, clause (a),
provided that: (1) in determining
the taxable market value of commercial-industrial property or any class
thereof within a governmental unit for any purpose other than section
473F.07 municipality, (a) the reduction required by this
subdivision shall be that amount which bears the same proportion to the amount
subtracted from the governmental unit's municipality's net tax
capacity pursuant to subdivision 2, clause (a), as the taxable market
value of commercial-industrial property, or such class thereof, located within
the governmental unit municipality bears to the net tax capacity
of commercial-industrial property, or such class thereof, located within the governmental
unit, and (b) the increase required by this subdivision shall be that amount
which bears the same proportion to the amount added to the governmental unit's
net tax capacity pursuant to subdivision 2, clause (b), as the market value of
commercial-industrial property, or such class thereof, located within the
governmental unit bears to the
net tax capacity of commercial-industrial property, or such class thereof,
located within the governmental unit; and (2) in determining the market value
of real property within a municipality for purposes of section 473F.07, the
adjustment prescribed by clause (1)(a) hereof shall be made and that prescribed
by clause (1)(b) hereof shall not be made municipality. No adjustment shall be made to taxable
market value for the increase in net tax capacity under subdivision 2, clause
(b).
Sec. 99. Minnesota Statutes 2012, section 475.521, subdivision 4, is amended to read:
Subd. 4. Limitations
on amount. A municipality may not
issue bonds under this section if the maximum amount of principal and interest
to become due in any year on all the outstanding bonds issued under this
section, including the bonds to be issued, will equal or exceed 0.16 percent of
the taxable estimated market value of property in the
municipality. Calculation of the limit
must be made using the taxable estimated market value for the
taxes payable year in which the obligations are issued and sold. In the case of a municipality with a
population of 2,500 or more, the bonds are subject to the net debt limits under
section 475.53. In the case of a shared
facility in which more than one municipality participates, upon compliance by
each participating municipality with the requirements of subdivision 2, the
limitations in this subdivision and the net debt represented by the bonds shall
be allocated to each participating municipality in proportion to its required
financial contribution to the financing of the shared facility, as set forth in
the joint powers agreement relating to the shared facility. This section does not limit the authority to
issue bonds under any other special or general law.
Sec. 100. Minnesota Statutes 2012, section 475.53, subdivision 1, is amended to read:
Subdivision 1. Generally. Except as otherwise provided in sections 475.51 to 475.74, no municipality, except a school district or a city of the first class, shall incur or be subject to a net debt in excess of three percent of the estimated market value of taxable property in the municipality.
Sec. 101. Minnesota Statutes 2012, section 475.53, subdivision 3, is amended to read:
Subd. 3. Cities first class. Unless its charter permits a greater net debt a city of the first class may not incur a net debt in excess of two percent of the estimated market value of all taxable property therein. If the charter of the city permits a net debt of the city in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3 percent of the estimated market value of the taxable property therein.
The county auditor, at the time of preparing the tax list of the city, shall compile a statement setting forth the total net tax capacity and the total estimated market value of each class of taxable property in such city for such year.
Sec. 102. Minnesota Statutes 2012, section 475.53, subdivision 4, is amended to read:
Subd. 4. School
districts. Except as otherwise
provided by law, no school district shall be subject to a net debt in excess of
15 percent of the actual estimated market value of all taxable
property situated within its corporate limits, as computed in accordance with
this subdivision. The county auditor of
each county containing taxable real or personal property situated within any
school district shall certify to the district upon request the estimated
market value of all such property. Whenever
the commissioner of revenue, in accordance with section 127A.48, subdivisions 1
to 6, has determined that the net tax capacity of any district furnished by
county auditors is not based upon the adjusted market value of
taxable property in the district exceeds the estimated market value of
property within the district, the commissioner of revenue shall certify to
the district upon request the ratio most recently ascertained to exist between such
the estimated market value and the actual adjusted market
value of property within the district., and the actual market
value of property within a district, on which its debt limit under this
subdivision is will be based, is (a) the value certified by
the county auditors, or (b) this on the estimated market value
divided by the ratio certified by the commissioner of revenue, whichever
results in a higher value.
Sec. 103. Minnesota Statutes 2012, section 475.58, subdivision 2, is amended to read:
Subd. 2. Funding, refunding. Any county, city, town, or school district whose outstanding gross debt, including all items referred to in section 475.51, subdivision 4, exceed in amount 1.62 percent of its estimated market value may issue bonds under this subdivision for the purpose of funding or refunding such indebtedness or any part thereof. A list of the items of indebtedness to be funded or refunded shall be made by the recording officer and treasurer and filed in the office of the recording officer. The initial resolution of the governing body shall refer to this subdivision as authority for the issue, state the amount of bonds to be issued and refer to the list of indebtedness to be funded or refunded. This resolution shall be published once each week for two successive weeks in a legal newspaper published in the municipality or if there be no such newspaper, in a legal newspaper published in the county seat. Such bonds may be issued without the submission of the question of their issue to the electors unless within ten days after the second publication of the resolution a petition requesting such election signed by ten or more voters who are taxpayers of the municipality, shall be filed with the recording officer. In event such petition is filed, no bonds shall be issued hereunder unless authorized by a majority of the electors voting on the question.
Sec. 104. Minnesota Statutes 2012, section 475.73, subdivision 1, is amended to read:
Subdivision 1. May purchase these bonds; conditions. Obligations sold under the provisions of section 475.60 may be purchased by the State Board of Investment if the obligations meet the requirements of section 11A.24, subdivision 2, upon the approval of the attorney general as to form and execution of the application therefor, and under rules as the board may specify, and the state board shall have authority to purchase the same to an amount not exceeding 3.63 percent of the estimated market value of the taxable property of the municipality, according to the last preceding assessment. The obligations shall not run for a shorter period than one year, nor for a longer period than 30 years and shall bear interest at a rate to be fixed by the state board but not less than two percent per annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by virtue thereof, the commissioner of management and budget shall certify to the respective auditors of the various counties wherein are situated the municipalities issuing the same, the number, denomination, amount, rate of interest and date of maturity of each obligation.
Sec. 105. Minnesota Statutes 2012, section 477A.011, subdivision 20, is amended to read:
Subd. 20. City
net tax capacity. "City net tax
capacity" means (1) the net tax capacity computed using the net tax
capacity rates in section 273.13 for taxes payable in the year of the aid
distribution, and the market values, after the exclusion in section 273.13,
subdivision 35, for taxes payable in the year prior to the aid distribution
plus (2) a city's fiscal disparities distribution tax capacity under section
276A.06, subdivision 2, paragraph (b), or 473F.08, subdivision 2, paragraph
(b), for taxes payable in the year prior to that for which aids are being
calculated. The market value utilized in
computing city net tax capacity shall be reduced by the sum of (1) a city's
market value of commercial industrial property as defined in section 276A.01,
subdivision 3, or 473F.02, subdivision 3, multiplied by the ratio determined
pursuant to section 276A.06, subdivision 2, paragraph (a), or 473F.08,
subdivision 2, paragraph (a), (2) the market value of the captured value of tax
increment financing districts as defined in section 469.177, subdivision 2, and
(3) the market value of transmission lines deducted from a city's total net tax
capacity under section 273.425. The city
net tax capacity will be computed using equalized market values the
city's adjusted net tax capacity under section 273.1325.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 106. Minnesota Statutes 2012, section 477A.0124, subdivision 2, is amended to read:
Subd. 2. Definitions. (a) For the purposes of this section, the following terms have the meanings given them.
(b) "County program aid" means the sum of "county need aid," "county tax base equalization aid," and "county transition aid."
(c) "Age-adjusted population" means a county's population multiplied by the county age index.
(d) "County age index" means the percentage of the population over age 65 within the county divided by the percentage of the population over age 65 within the state, except that the age index for any county may not be greater than 1.8 nor less than 0.8.
(e) "Population over age 65" means the population over age 65 established as of July 15 in an aid calculation year by the most recent federal census, by a special census conducted under contract with the United States Bureau of the Census, by a population estimate made by the Metropolitan Council, or by a population estimate of the state demographer made pursuant to section 4A.02, whichever is the most recent as to the stated date of the count or estimate for the preceding calendar year and which has been certified to the commissioner of revenue on or before July 15 of the aid calculation year. A revision to an estimate or count is effective for these purposes only if certified to the commissioner on or before July 15 of the aid calculation year. Clerical errors in the certification or use of estimates and counts established as of July 15 in the aid calculation year are subject to correction within the time periods allowed under section 477A.014.
(f) "Part I crimes" means the three-year average annual number of Part I crimes reported for each county by the Department of Public Safety for the most recent years available. By July 1 of each year, the commissioner of public safety shall certify to the commissioner of revenue the number of Part I crimes reported for each county for the three most recent calendar years available.
(g) "Households receiving food stamps" means the average monthly number of households receiving food stamps for the three most recent years for which data is available. By July 1 of each year, the commissioner of human services must certify to the commissioner of revenue the average monthly number of households in the state and in each county that receive food stamps, for the three most recent calendar years available.
(h) "County net tax capacity"
means the net tax capacity of the county, computed analogously to city net
tax capacity under section 477A.011, subdivision 20 county's adjusted
net tax capacity under section 273.1325.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 107. Minnesota Statutes 2012, section 641.23, is amended to read:
641.23
FUNDS; HOW PROVIDED.
Before any contract is made for the erection of a county jail, sheriff's residence, or both, the county board shall either levy a sufficient tax to provide the necessary funds, or issue county bonds therefor in accordance with the provisions of chapter 475, provided that no election is required if the amount of all bonds issued for this purpose and interest on them which are due and payable in any year does not exceed an amount equal to 0.09671 percent of estimated market value of taxable property within the county, as last determined before the bonds are issued.
Sec. 108. Minnesota Statutes 2012, section 641.24, is amended to read:
641.24
LEASING.
The county may, by resolution of the county board, enter into a lease agreement with any statutory or home rule charter city situated within the county, or a county housing and redevelopment authority established pursuant to chapter 469 or any special law whereby the city or county housing and redevelopment authority will construct a jail or other law enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the sheriff and other law enforcement agencies, in accordance with plans prepared by or at the request of the county board and, when required, approved by the commissioner of corrections and will finance it by the issuance of revenue bonds,
and the county may lease the site and improvements for a term and upon rentals sufficient to produce revenue for the prompt payment of the bonds and all interest accruing thereon and, upon completion of payment, will acquire title thereto. The real and personal property acquired for the jail shall constitute a project and the lease agreement shall constitute a revenue agreement as contemplated in chapter 469, and all proceedings shall be taken by the city or county housing and redevelopment authority and the county in the manner and with the force and effect provided in chapter 469; provided that:
(1) no tax shall be imposed upon or in lieu of a tax upon the property;
(2) the approval of the project by the commissioner of commerce shall not be required;
(3) the Department of Corrections shall be furnished and shall record such information concerning each project as it may prescribe;
(4) the rentals required to be paid under the lease agreement shall not exceed in any year one-tenth of one percent of the estimated market value of property within the county, as last finally equalized before the execution of the agreement;
(5) the county board shall provide for the payment of all rentals due during the term of the lease, in the manner required in section 641.264, subdivision 2;
(6) no mortgage on the property shall be granted for the security of the bonds, but compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the county board; and
(7) the county board may sublease any part of the jail property for purposes consistent with the maintenance and operation of a county jail or other law enforcement facility.
Sec. 109. Minnesota Statutes 2012, section 645.44, is amended by adding a subdivision to read:
Subd. 20. Estimated
market value. When used in
determining or calculating a limit on taxation, spending, state aid amounts, or
debt, bond, certificate of indebtedness, or capital note issuance by or for a
local government unit, "estimated market value" has the meaning given
in section 273.032.
Sec. 110. REVISOR'S
INSTRUCTION.
The revisor of statutes shall recodify
Minnesota Statutes, section 127A.48, subdivisions 1 to 6, as section 273.1325,
subdivisions 1 to 6, and change all cross-references to the affected
subdivisions accordingly.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 111. REPEALER.
Minnesota
Statutes 2012, sections 276A.01, subdivision 11; 473F.02, subdivision 13; and
477A.011, subdivision 21, are repealed.
Sec. 112. EFFECTIVE
DATE.
Unless otherwise specifically provided,
this article is effective the day following final enactment for purposes of
limits on net debt, the issuance of bonds, certificates of indebtedness, and
capital notes and is effective beginning for taxes payable in 2014 for all
other purposes.
ARTICLE 15
DEPARTMENT POLICY AND TECHNICAL: INCOME AND
FRANCHISE TAXES; ESTATE TAXES
Section 1. Minnesota Statutes 2012, section 289A.10, is amended by adding a subdivision to read:
Subd. 1a. Recapture tax return required. If a disposition or cessation as
provided by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as defined
under section 291.03, subdivision 8, paragraph (c), or personal representative
of the decedent's estate must submit a recapture tax return to the
commissioner.
EFFECTIVE
DATE. This section is
effective for estates of decedents dying after June 30, 2011.
Sec. 2. Minnesota Statutes 2012, section 289A.12, subdivision 14, is amended to read:
Subd. 14. Regulated investment companies; reporting exempt-interest dividends. (a) A regulated investment company paying $10 or more in exempt-interest dividends to an individual who is a resident of Minnesota must make a return indicating the amount of the exempt-interest dividends, the name, address, and Social Security number of the recipient, and any other information that the commissioner specifies. The return must be provided to the shareholder by February 15 of the year following the year of the payment. The return provided to the shareholder must include a clear statement, in the form prescribed by the commissioner, that the exempt-interest dividends must be included in the computation of Minnesota taxable income. By June 1 of each year, the regulated investment company must file a copy of the return with the commissioner.
(b) This subdivision applies to regulated
investment companies required to register under chapter 80A.
(c) (b) For purposes of this
subdivision, the following definitions apply.
(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest dividends that are not required to be added to federal taxable income under section 290.01, subdivision 19a, clause (1)(ii).
(2) "Regulated investment company" means regulated investment company as defined in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company as defined in section 851(g) of the Internal Revenue Code.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2012, section 289A.12, is amended by adding a subdivision to read:
Subd. 18. Returns by qualified heirs. A qualified heir, as defined in
section 291.03, subdivision 8, paragraph (c), must file two
returns with the commissioner attesting that no disposition or cessation as
provided by section 291.03, subdivision 11, paragraph (a), occurred. The first return must be filed no earlier
than 24 months and no later than 26 months after the decedent's death. The second return must be filed no earlier
than 36 months and no later than 39 months after the decedent's death.
EFFECTIVE
DATE. This section is
effective for returns required to be filed after December 31, 2013.
Sec. 4. Minnesota Statutes 2012, section 289A.18, is amended by adding a subdivision to read:
Subd. 3a. Recapture
tax return. A recapture tax
return must be filed with the commissioner within six months after the date of
the disposition or cessation as provided by section 291.03, subdivision 11,
paragraph (a).
EFFECTIVE
DATE. This section is
effective for estates of decedents dying after June 30, 2011.
Sec. 5. Minnesota Statutes 2012, section 289A.20, subdivision 3, is amended to read:
Subd. 3. Estate
tax. Taxes imposed by chapter 291
section 291.03, subdivision 1, take effect at and upon the death of the
person whose estate is subject to taxation and are due and payable on or before
the expiration of nine months from that death.
EFFECTIVE
DATE. This section is
effective for estates of decedents dying after June 30, 2011.
Sec. 6. Minnesota Statutes 2012, section 289A.20, is amended by adding a subdivision to read:
Subd. 3a. Recapture
tax. The additional estate
tax imposed by section 291.03, subdivision 11, paragraph (b), is due and
payable on or before the expiration of the date provided by section 291.03,
subdivision 11, paragraph (c).
EFFECTIVE
DATE. This section is
effective for estates of decedents dying after June 30, 2011.
Sec. 7. Minnesota Statutes 2012, section 289A.26, subdivision 3, is amended to read:
Subd. 3. Short taxable year. (a) A corporation or an entity with a short taxable year of less than 12 months, but at least four months, must pay estimated tax in equal installments on or before the 15th day of the third, sixth, ninth, and final month of the short taxable year, to the extent applicable based on the number of months in the short taxable year.
(b) A corporation or an entity is not required to make estimated tax payments for a short taxable year unless its tax liability before the first day of the last month of the taxable year can reasonably be expected to exceed $500.
(c) No payment is required for a short taxable year of less than four months.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2012, section 289A.26, subdivision 4, is amended to read:
Subd. 4. Underpayment of estimated tax. If there is an underpayment of estimated tax by a corporation or an entity, there shall be added to the tax for the taxable year an amount determined at the rate in section 270C.40 on the amount of the underpayment, determined under subdivision 5, for the period of the underpayment determined under subdivision 6. This subdivision does not apply in the first taxable year that a corporation is subject to the tax imposed under section 290.02 or an entity is subject to the tax imposed under section 290.05, subdivision 3.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2012, section 289A.26, subdivision 7, is amended to read:
Subd. 7. Required installments. (a) Except as otherwise provided in this subdivision, the amount of a required installment is 25 percent of the required annual payment.
(b) Except as otherwise provided in this subdivision, the term "required annual payment" means the lesser of:
(1) 100 percent of the tax shown on the return for the taxable year, or, if no return is filed, 100 percent of the tax for that year; or
(2) 100 percent of the tax shown on the return of the corporation or entity for the preceding taxable year provided the return was for a full 12-month period, showed a liability, and was filed by the corporation or entity.
(c) Except for determining the first required installment for any taxable year, paragraph (b), clause (2), does not apply in the case of a large corporation. The term "large corporation" means a corporation or any predecessor corporation that had taxable net income of $1,000,000 or more for any taxable year during the testing period. The term "testing period" means the three taxable years immediately preceding the taxable year involved. A reduction allowed to a large corporation for the first installment that is allowed by applying paragraph (b), clause (2), must be recaptured by increasing the next required installment by the amount of the reduction.
(d) In the case of a required installment, if the corporation or entity establishes that the annualized income installment is less than the amount determined in paragraph (a), the amount of the required installment is the annualized income installment and the recapture of previous quarters' reductions allowed by this paragraph must be recovered by increasing later required installments to the extent the reductions have not previously been recovered.
(e) The "annualized income installment" is the excess, if any, of:
(1) an amount equal to the applicable percentage of the tax for the taxable year computed by placing on an annualized basis the taxable income:
(i) for the first two months of the taxable year, in the case of the first required installment;
(ii) for the first two months or for the first five months of the taxable year, in the case of the second required installment;
(iii) for the first six months or for the first eight months of the taxable year, in the case of the third required installment; and
(iv) for the first nine months or for the first 11 months of the taxable year, in the case of the fourth required installment, over
(2) the aggregate amount of any prior required installments for the taxable year.
(3) For the purpose of this paragraph, the annualized income shall be computed by placing on an annualized basis the taxable income for the year up to the end of the month preceding the due date for the quarterly payment multiplied by 12 and dividing the resulting amount by the number of months in the taxable year (2, 5, 6, 8, 9, or 11 as the case may be) referred to in clause (1).
(4) The "applicable percentage" used in clause (1) is:
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For the following required installments: |
The applicable percentage is: |
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1st |
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25 |
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2nd |
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50 |
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3rd |
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75 |
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4th |
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100 |
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(f)(1) If this paragraph applies, the amount determined for any installment must be determined in the following manner:
(i) take the taxable income for the months during the taxable year preceding the filing month;
(ii)
divide that amount by the base period percentage for the months during the
taxable year preceding the filing month;
(iii) determine the tax on the amount determined under item (ii); and
(iv) multiply the tax computed under item (iii) by the base period percentage for the filing month and the months during the taxable year preceding the filing month.
(2) For purposes of this paragraph:
(i) the "base period percentage" for a period of months is the average percent that the taxable income for the corresponding months in each of the three preceding taxable years bears to the taxable income for the three preceding taxable years;
(ii) the term "filing month" means the month in which the installment is required to be paid;
(iii) this paragraph only applies if the base period percentage for any six consecutive months of the taxable year equals or exceeds 70 percent; and
(iv) the commissioner may provide by rule for the determination of the base period percentage in the case of reorganizations, new corporations or entities, and other similar circumstances.
(3) In the case of a required installment determined under this paragraph, if the corporation or entity determines that the installment is less than the amount determined in paragraph (a), the amount of the required installment is the amount determined under this paragraph and the recapture of previous quarters' reductions allowed by this paragraph must be recovered by increasing later required installments to the extent the reductions have not previously been recovered.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 10. Minnesota Statutes 2012, section 289A.26, subdivision 9, is amended to read:
Subd. 9. Failure to file an estimate. In the case of a corporation or an entity that fails to file an estimated tax for a taxable year when one is required, the period of the underpayment runs from the four installment dates in subdivision 2 or 3, whichever applies, to the earlier of the periods in subdivision 6, clauses (1) and (2).
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2012, section 290.9705, subdivision 1, is amended to read:
Subdivision 1. Withholding of payments to out-of-state contractors. (a) In this section, "person" means a person, corporation, or cooperative, the state of Minnesota and its political subdivisions, and a city, county, and school district in Minnesota.
(b) A person who in the regular course of
business is hiring, contracting, or having a contract with a nonresident person
or foreign corporation, as defined in Minnesota Statutes 1986, section
290.01, subdivision 5, to perform construction work in Minnesota, shall
deduct and withhold eight percent of cumulative calendar year payments made
to the contractor which exceed if the value of the contract exceeds
$50,000.
EFFECTIVE
DATE. This section is
effective for payments made to contractors after December 31, 2013.
ARTICLE 16
DEPARTMENT POLICY AND TECHNICAL: SALES AND USE
TAXES; SPECIAL TAXES
Section 1. Minnesota Statutes 2012, section 287.20, is amended by adding a subdivision to read:
Subd. 11. Partition. "Partition" means the
division by conveyance of real property that is held jointly or in common by
two or more persons into individually owned interests. If one of the co-owners gives consideration
for all or a part of the individually owned interest conveyed to
them, that portion of the conveyance is not a part of the partition.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read:
Subd. 4. Sales
and use tax. (a) The taxes imposed
by chapter 297A are due and payable to the commissioner monthly on or before
the 20th day of the month following the month in which the taxable event
occurred, or following another reporting period as the commissioner prescribes
or as allowed under section 289A.18, subdivision 4, paragraph (f) or (g),
except that:
(1) use taxes due on an annual use
tax return as provided under section 289A.11, subdivision 1, are payable by
April 15 following the close of the calendar year; and.
(2) except as provided in paragraph
(f), for a vendor having a liability of $120,000 or more during a fiscal year
ending June 30, 2009, and fiscal years thereafter, the taxes imposed by chapter
297A, except as provided in paragraph (b), are due and payable to the
commissioner monthly in the following manner:
(i) On or before the 14th day of the
month following the month in which the taxable event occurred, the vendor must remit to the commissioner 90 percent of the
estimated liability for the month in which the taxable event occurred.
(ii) On or before the 20th day of the
month in which the taxable event occurs, the vendor must remit to the
commissioner a prepayment for the month in which the taxable event occurs equal
to 67 percent of the liability for the previous month.
(iii) On or before the 20th day of the
month following the month in which the taxable event occurred, the vendor must
pay any additional amount of tax not previously remitted under either item (i)
or (ii) or, if the payment made under item (i) or (ii) was greater than the
vendor's liability for the month in which the taxable event occurred, the
vendor may take a credit against the next month's liability in a manner
prescribed by the commissioner.
(iv) Once the vendor first pays under
either item (i) or (ii), the vendor is required to continue to make payments in
the same manner, as long as the vendor continues having a liability of $120,000
or more during the most recent fiscal year ending June 30.
(v) Notwithstanding items (i), (ii),
and (iv), if a vendor fails to make the required payment in the first month
that the vendor is required to make a payment under either item (i) or (ii),
then the vendor is deemed to have elected to pay under item (ii) and must make
subsequent monthly payments in the manner provided in item (ii).
(vi) For vendors making an accelerated
payment under item (ii), for the first month that the vendor is required to
make the accelerated payment, on the 20th of that month, the vendor will pay
100 percent of the liability for the previous month and a prepayment for the
first month equal to 67 percent of the liability for the previous month.
(b) Notwithstanding
paragraph (a), A vendor having a liability of $120,000 or more during a
fiscal year ending June 30 must remit the June liability for the next year in
the following manner:
(1) Two business days before June 30 of the year, the vendor must remit 90 percent of the estimated June liability to the commissioner.
(2) On or before August 20 of the year, the vendor must pay any additional amount of tax not remitted in June.
(c) A vendor having a liability of:
(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, 2009, and fiscal years thereafter, must remit by electronic means all liabilities on returns due for periods beginning in the subsequent calendar year on or before the 20th day of the month following the month in which the taxable event occurred, or on or before the 20th day of the month following the month in which the sale is reported under section 289A.18, subdivision 4; or
(2) $120,000 or more, during a fiscal year
ending June 30, 2009, and fiscal years thereafter, must remit by electronic
means all liabilities in the manner provided in paragraph (a), clause (2),
on returns due for periods beginning in the subsequent calendar year, except
for 90 percent of the estimated June liability, which is due two business days
before June 30. The remaining amount of
the June liability is due on August 20.
(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's religious beliefs from paying electronically shall be allowed to remit the payment by mail. The filer must notify the commissioner of revenue of the intent to pay by mail before doing so on a form prescribed by the commissioner. No extra fee may be charged to a person making payment by mail under this paragraph. The payment must be postmarked at least two business days before the due date for making the payment in order to be considered paid on a timely basis.
(e) Whenever the liability is $120,000
or more separately for: (1) the tax
imposed under chapter 297A; (2) a fee that is to be reported on the same return
as and paid with the chapter 297A taxes; or (3) any other tax that is to be
reported on the same return as and paid with the chapter 297A taxes, then the
payment of all the liabilities on the return must be accelerated as provided in
this subdivision.
(f) At the start of the first calendar
quarter at least 90 days after the cash flow account established in section
16A.152, subdivision 1, and the budget reserve account established in section
16A.152, subdivision 1a, reach the amounts listed in section 16A.152,
subdivision 2, paragraph (a), the remittance of the accelerated payments
required under paragraph (a), clause (2), must be suspended. The commissioner of management and budget
shall notify the commissioner of revenue when the accounts have reached the
required amounts. Beginning with the
suspension of paragraph (a), clause (2), for a vendor with a liability of
$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years
thereafter, the taxes imposed by chapter 297A are due and payable to the
commissioner on the 20th day of the month following the month in which the taxable
event occurred. Payments of tax
liabilities for taxable events occurring in June under paragraph (b) are not
changed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2012, section 297A.665, is amended to read:
297A.665
PRESUMPTION OF TAX; BURDEN OF PROOF.
(a) For the purpose of the proper administration of this chapter and to prevent evasion of the tax, until the contrary is established, it is presumed that:
(1) all gross receipts are subject to the tax; and
(2) all retail sales for delivery in Minnesota are for storage, use, or other consumption in Minnesota.
(b) The burden of proving that a sale is not a taxable retail sale is on the seller. However, a seller is relieved of liability if:
(1) the seller obtains a fully completed exemption certificate or all the relevant information required by section 297A.72, subdivision 2, at the time of the sale or within 90 days after the date of the sale; or
(2) if the seller has not obtained a fully completed exemption certificate or all the relevant information required by section 297A.72, subdivision 2, within the time provided in clause (1), within 120 days after a request for substantiation by the commissioner, the seller either:
(i) obtains in good faith from the
purchaser a fully completed exemption certificate or all the relevant
information required by section 297A.72, subdivision 2, from the purchaser
taken in good faith which means that the exemption certificate claims an exemption
that (A) was statutorily available on the date of the transaction, (B) could be
applicable to the item for which the exemption is claimed, and (C) is
reasonable for the purchaser's type of business; or
(ii) proves by other means that the transaction was not subject to tax.
(c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:
(1) fraudulently fails to collect the tax; or
(2) solicits purchasers to participate in the unlawful claim of an exemption.
(d) Notwithstanding paragraph (b),
relief from liability does not apply to a seller who has obtained information
under paragraph (b), clause (2), if through the audit process the commissioner
finds the following:
(1) that at the time the information
was provided the seller had knowledge or had reason to know that the
information relating to the exemption was materially false; or
(2) that the seller knowingly
participated in activity intended to purposefully evade the sales tax due on
the transaction.
(d) (e) A certified service
provider, as defined in section 297A.995, subdivision 2, is relieved of
liability under this section to the extent a seller who is its client is
relieved of liability.
(e) (f) A purchaser of
tangible personal property or any items listed in section 297A.63 that are
shipped or brought to Minnesota by the purchaser has the burden of proving that
the property was not purchased from a retailer for storage, use, or consumption
in Minnesota.
(f) (g) If a seller claims
that certain sales are exempt and does not provide the certificate,
information, or proof required by paragraph (b), clause (2), within 120 days
after the date of the commissioner's request for substantiation, then the
exemptions claimed by the seller that required substantiation are disallowed.
EFFECTIVE
DATE. This section is
effective retroactively from January 1, 2013.
Sec. 4. Minnesota Statutes 2012, section 297F.01, subdivision 23, is amended to read:
Subd. 23. Wholesale
sales price. "Wholesale sales
price" means the price stated on the price list in effect at the time
of sale for which a manufacturer or person sells a tobacco product to a
distributor, exclusive of any discount, promotional offer, or other reduction. For purposes of this subdivision, "price
list" means the manufacturer's price at which tobacco products are made
available for sale to all distributors on an ongoing basis at which a
distributor purchases a tobacco product.
Wholesale sales price includes the applicable federal excise tax,
freight charges, or packaging costs, regardless of whether they were included
in the purchase price.
EFFECTIVE
DATE. This section is
effective for purchases made after December 31, 2013.
Sec. 5. Minnesota Statutes 2012, section 297G.04, subdivision 2, is amended to read:
Subd. 2. Tax credit. A qualified brewer producing fermented malt beverages is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year beginning July 1, regardless of the alcohol content of the product. Qualified brewers may take the credit on the 18th day of each month, but the total credit allowed may not exceed in any fiscal year the lesser of:
(1) the liability for tax; or
(2) $115,000.
For purposes of this subdivision, a
"qualified brewer" means a brewer, whether or not located in this
state, manufacturing less than 100,000 barrels of fermented malt beverages in
the calendar year immediately preceding the calendar fiscal year
for which the credit under this subdivision is claimed. In determining the number of barrels, all
brands or labels of a brewer must be combined.
All facilities for the manufacture of fermented malt beverages owned or
controlled by the same person, corporation, or other entity must be treated as
a single brewer.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 6. Minnesota Statutes 2012, section 297I.05, subdivision 7, is amended to read:
Subd. 7. Nonadmitted insurance premium tax. (a) A tax is imposed on surplus lines brokers. The rate of tax is equal to three percent of the gross premiums less return premiums paid by an insured whose home state is Minnesota.
(b) A tax is imposed on persons, firms,
or corporations a person, firm, corporation, or purchasing group as
defined in section 60E.02, or any member of a purchasing group, that procure
procures insurance directly from a nonadmitted insurer. The rate of tax is equal to two percent of
the gross premiums less return premiums paid by an insured whose home state is
Minnesota.
(c) No state other than the home state of an insured may require any premium tax payment for nonadmitted insurance. When Minnesota is the home state of the insured, as provided under section 297I.01, 100 percent of the gross premiums are taxable in Minnesota with no allocation of the tax to other states.
EFFECTIVE
DATE. This section is
effective for premiums received after December 31, 2013.
Sec. 7. Minnesota Statutes 2012, section 297I.05, subdivision 11, is amended to read:
Subd. 11. Retaliatory provisions. (a) If any other state or country imposes any taxes, fines, deposits, penalties, licenses, or fees upon any insurance companies of this state and their agents doing business in another state or country that are in addition to or in excess of those imposed by the laws of this state upon foreign insurance
companies and their agents doing business in this state, the same taxes, fines, deposits, penalties, licenses, and fees are imposed upon every similar insurance company of that state or country and their agents doing or applying to do business in this state.
(b) If any conditions precedent to the right to do business in any other state or country are imposed by the laws of that state or country, beyond those imposed upon foreign companies by the laws of this state, the same conditions precedent are imposed upon every similar insurance company of that state or country and their agents doing or applying to do business in that state.
(c) For purposes of this subdivision, "taxes, fines, deposits, penalties, licenses, or fees" means an amount of money that is deposited in the general revenue fund of the state or other similar fund in another state or country and is not dedicated to a special purpose or use or money deposited in the general revenue fund of the state or other similar fund in another state or country and appropriated to the commissioner of commerce or insurance for the operation of the Department of Commerce or other similar agency with jurisdiction over insurance. Taxes, fines, deposits, penalties, licenses, or fees do not include:
(1) special purpose obligations or assessments imposed in connection with particular kinds of insurance, including but not limited to assessments imposed in connection with residual market mechanisms; or
(2) assessments made by the insurance guaranty association, life and health guarantee association, or similar association.
(d) This subdivision applies to taxes
imposed under subdivisions 1,; 3,; 4, 6, and;
12, paragraph (a), clauses (1) and (2); and 14.
(e) This subdivision does not apply to insurance companies organized or domiciled in a state or country, the laws of which do not impose retaliatory taxes, fines, deposits, penalties, licenses, or fees or which grant, on a reciprocal basis, exemptions from retaliatory taxes, fines, deposits, penalties, licenses, or fees to insurance companies domiciled in this state.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2012, section 297I.05, subdivision 12, is amended to read:
Subd. 12. Other entities. (a) A tax is imposed equal to two percent of:
(1) gross premiums less return premiums written for risks resident or located in Minnesota by a risk retention group;
(2) gross premiums less return premiums received by an attorney in fact acting in accordance with chapter 71A;
(3) gross premiums less return premiums
received pursuant to assigned risk policies and contracts of coverage under
chapter 79; and
(4) the direct funded premium received by
the reinsurance association under section 79.34 from self-insurers approved
under section 176.181 and political subdivisions that self-insure; and.
(5) gross premiums less return premiums
paid to an insurer other than a licensed insurance company or a surplus lines
broker for coverage of risks resident or located in Minnesota by a purchasing
group or any members of the purchasing group to a broker or agent for the
purchasing group.
(b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The rate of tax is equal to two percent of the total amount of claims paid during the fund year, with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
(c) A tax is imposed on a joint self-insurance plan operating under chapter 62H. The rate of tax is equal to two percent of the total amount of claims paid during the fund's fiscal year, with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
(d) A tax is imposed equal to the tax imposed under section 297I.05, subdivision 5, on the gross premiums less return premiums on all coverages received by an accountable provider network or agents of an accountable provider network in Minnesota, in cash or otherwise, during the year.
EFFECTIVE
DATE. This section is
effective for premiums received after December 31, 2013.
Sec. 9. Minnesota Statutes 2012, section 297I.30, subdivision 1, is amended to read:
Subdivision 1. General
rule. On or before March 1, every
taxpayer subject to taxation under section 297I.05, subdivisions 1 to 5,;
7, paragraph (b),; 12, paragraphs (a), clauses (1) to (4),
(b), (c), and (d),; and 14, shall file an annual return for the
preceding calendar year in the form prescribed by the commissioner.
EFFECTIVE
DATE. This section is effective
for premiums received after December 31, 2013.
Sec. 10. Minnesota Statutes 2012, section 297I.30, subdivision 2, is amended to read:
Subd. 2. Surplus
lines brokers and purchasing groups.
On or before February 15 and August 15 of each year, every surplus
lines broker subject to taxation under section 297I.05, subdivision 7,
paragraph (a), and every purchasing group or member of a purchasing group
subject to tax under section 297I.05, subdivision 12, paragraph (a), clause
(5), shall file a return with the commissioner for the preceding six-month
period ending December 31, or June 30, in the form prescribed by the
commissioner.
EFFECTIVE
DATE. This section is
effective for premiums received after December 31, 2013.
Sec. 11. REPEALER.
Minnesota Statutes 2012, section
289A.60, subdivision 31, is repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 17
DEPARTMENT POLICY AND TECHNICAL: MINERALS
TAXES; PROPERTY TAX
Section 1. Minnesota Statutes 2012, section 123A.455, subdivision 1, is amended to read:
Subdivision 1. Definitions. "Split residential property parcel" means a parcel of real estate that is located within the boundaries of more than one school district and that is classified as residential property under:
(1) section 273.13, subdivision 22, paragraph (a) or (b);
(2) section 273.13, subdivision 25, paragraph (b), clause (1); or
(3) section 273.13, subdivision
25, paragraph (c), clause (1).
EFFECTIVE
DATE. This section is effective
for taxes payable in 2014 and thereafter.
Sec. 2. Minnesota Statutes 2012, section 270.077, is amended to read:
270.077
TAXES CREDITED TO STATE AIRPORTS FUND.
All taxes levied under sections 270.071 to 270.079 must be collected by the commissioner and credited to the state airports fund created in section 360.017.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2012, section 270.41, subdivision 5, is amended to read:
Subd. 5. Prohibited activity. A licensed assessor or other person employed by an assessment jurisdiction or contracting with an assessment jurisdiction for the purpose of valuing or classifying property for property tax purposes is prohibited from making appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report as defined in section 82B.021, subdivisions 2, 4, 6, and 7, on any property within the assessment jurisdiction where the individual is employed or performing the duties of the assessor under contract. Violation of this prohibition shall result in immediate revocation of the individual's license to assess property for property tax purposes. This prohibition must not be construed to prohibit an individual from carrying out any duties required for the proper assessment of property for property tax purposes or performing duties enumerated in section 273.061, subdivision 7 or 8. If a formal resolution has been adopted by the governing body of a governmental unit, which specifies the purposes for which such work will be done, this prohibition does not apply to appraisal activities undertaken on behalf of and at the request of the governmental unit that has employed or contracted with the individual. The resolution may only allow appraisal activities which are related to condemnations, right-of-way acquisitions, land exchanges, or special assessments.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2012, section 270C.34, subdivision 1, is amended to read:
Subdivision 1. Authority. (a) The commissioner may abate, reduce, or refund any penalty or interest that is imposed by a law administered by the commissioner, or imposed by section 270.0725, subdivision 1 or 2, or 270.075, subdivision 2, as a result of the late payment of tax or late filing of a return, or any part of an additional tax charge under section 289A.25, subdivision 2, or 289A.26, subdivision 4, if the failure to timely pay the tax or failure to timely file the return is due to reasonable cause, or if the taxpayer is located in a presidentially declared disaster or in a presidentially declared state of emergency area or in an area declared to be in a state of emergency by the governor under section 12.31.
(b) The commissioner shall abate any part of a penalty or additional tax charge under section 289A.25, subdivision 2, or 289A.26, subdivision 4, attributable to erroneous advice given to the taxpayer in writing by an employee of the department acting in an official capacity, if the advice:
(1) was reasonably relied on and was in response to a specific written request of the taxpayer; and
(2) was not the result of failure by the taxpayer to provide adequate or accurate information.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2012, section 272.01, subdivision 2, is amended to read:
Subd. 2. Exempt property used by private entity for profit. (a) When any real or personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased, loaned, or otherwise made available and used by a private individual, association, or corporation in connection with a business conducted for profit, there shall be imposed a tax, for the privilege of so using or possessing such real or personal property, in the same amount and to the same extent as though the lessee or user was the owner of such property.
(b) The tax imposed by this subdivision shall not apply to:
(1) property leased or used as a concession in or relative to the use in whole or part of a public park, market, fairgrounds, port authority, economic development authority established under chapter 469, municipal auditorium, municipal parking facility, municipal museum, or municipal stadium;
(2) property of an airport owned by a city, town, county, or group thereof which is:
(i) leased to or used by any person or entity including a fixed base operator; and
(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods, services, or facilities to the airport or general public;
the exception from taxation provided in this clause does not apply to:
(i) property located at an airport owned or operated by the Metropolitan Airports Commission or by a city of over 50,000 population according to the most recent federal census or such a city's airport authority; or
(ii) hangars leased by a private individual, association, or corporation in connection with a business conducted for profit other than an aviation-related business;
(3) property constituting or used as a public pedestrian ramp or concourse in connection with a public airport;
(4) property constituting or used as a passenger check-in area or ticket sale counter, boarding area, or luggage claim area in connection with a public airport but not the airports owned or operated by the Metropolitan Airports Commission or cities of over 50,000 population or an airport authority therein. Real estate owned by a municipality in connection with the operation of a public airport and leased or used for agricultural purposes is not exempt;
(5) property leased, loaned, or otherwise made available to a private individual, corporation, or association under a cooperative farming agreement made pursuant to section 97A.135; or
(6) property leased, loaned, or otherwise made available to a private individual, corporation, or association under section 272.68, subdivision 4.
(c) Taxes imposed by this subdivision are payable as in the case of personal property taxes and shall be assessed to the lessees or users of real or personal property in the same manner as taxes assessed to owners of real or personal property, except that such taxes shall not become a lien against the property. When due, the taxes shall constitute a debt due from the lessee or user to the state, township, city, county, and school district for which the taxes were assessed and shall be collected in the same manner as personal property taxes. If property subject to the tax imposed by this subdivision is leased or used jointly by two or more persons, each lessee or user shall be jointly and severally liable for payment of the tax.
(d) The tax on real property of
the federal government, the state or any of its political subdivisions
that is leased by, loaned, or otherwise made available to a
private individual, association, or corporation and becomes taxable under this
subdivision or other provision of law must be assessed and collected as a
personal property assessment. The taxes
do not become a lien against the real property.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2012, section 272.02, subdivision 97, is amended to read:
Subd. 97. Property used in business of mining subject to net proceeds tax. The following property used in the business of mining that is subject to the net proceeds tax under section 298.015 is exempt:
(1) deposits of ores, metals, and minerals and the lands in which they are contained;
(2) all real and personal property used in mining, quarrying, producing, or refining ores, minerals, or metals, including lands occupied by or used in connection with the mining, quarrying, production, or ore refining facilities; and
(3) concentrate or direct reduced ore.
This exemption applies for each year that a person subject to tax under section 298.015 uses the property for mining, quarrying, producing, or refining ores, metals, or minerals.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2012, section 272.03, subdivision 9, is amended to read:
Subd. 9. Person. "Person" includes means
an individual, association, estate, trust, partnership, firm, company, or
corporation.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2012, section 273.114, subdivision 6, is amended to read:
Subd. 6. Additional taxes. (a) When real property which is being, or has been valued and assessed under this section is sold, transferred, or no longer qualifies under subdivision 2, the portion sold, transferred, or no longer qualifying shall be subject to additional taxes in the amount equal to the difference between the taxes determined in accordance with subdivision 3 and the amount determined under subdivision 4, provided that the amount determined under subdivision 4 shall not be greater than it would have been had the actual bona fide sale price of the real property at an arm's-length transaction been used in lieu of the market value determined under subdivision 4. The additional taxes shall be extended against the property on the tax list for taxes payable in the current year, provided that no interest or penalties shall be levied on the additional taxes if timely paid and provided that the additional taxes shall only be levied with respect to the current year plus two prior years that the property has been valued and assessed under this section.
(b) In the case of a sale or transfer,
the additional taxes under paragraph (a) shall not be extended against the
property if the new owner submits a successful application under this section
by the later of May 1 of the current year or 30 days after the sale or
transfer.
(c) For the purposes of this section, the
following events do not constitute a sale or transfer for property that
qualified under subdivision 2 prior to the event:
(1) death of a property owner
when the surviving owners retain ownership of the property;
(2) divorce of a married couple when one
of the spouses retains ownership of the property;
(3) marriage of a single property owner
when that owner retains ownership of the property in whole or in part;
(4) the organization or reorganization of
a farm ownership entity that is not prohibited from owning agricultural land in
this state under section 500.24, if all owners maintain the same beneficial
interest both before and after the organization or reorganization; and
(5)
transfer of the property to a trust or trustee, provided that the individual
owners of the property are the grantors of the trust and they maintain the same
beneficial interest both before and after placement of the property in trust.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2012, section 273.13, subdivision 23, is amended to read:
Subd. 23. Class 2. (a) An agricultural homestead consists of class 2a agricultural land that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class 2a land under the same ownership. The market value of the house and garage and immediately surrounding one acre of land has the same class rates as class 1a or 1b property under subdivision 22. The value of the remaining land including improvements up to the first tier valuation limit of agricultural homestead property has a net class rate of 0.5 percent of market value. The remaining property over the first tier has a class rate of one percent of market value. For purposes of this subdivision, the "first tier valuation limit of agricultural homestead property" and "first tier" means the limit certified under section 273.11, subdivision 23.
(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that are agricultural land and buildings. Class 2a property has a net class rate of one percent of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a property must also include any property that would otherwise be classified as 2b, but is interspersed with class 2a property, including but not limited to sloughs, wooded wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, and other similar land that is impractical for the assessor to value separately from the rest of the property or that is unlikely to be able to be sold separately from the rest of the property.
An assessor may classify the part of a parcel described in this subdivision that is used for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that are unplatted real estate, rural in character and not used for agricultural purposes, including land used for growing trees for timber, lumber, and wood and wood products, that is not improved with a structure. The presence of a minor, ancillary nonresidential structure as defined by the commissioner of revenue does not disqualify the property from classification under this paragraph. Any parcel of 20 acres or more improved with a structure that is not a minor, ancillary nonresidential structure must be split-classified, and ten acres must be assigned to the split parcel containing the structure. Class 2b property has a net class rate of one percent of market value unless it is part of an agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 acres statewide per taxpayer that is being managed under a forest management plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource management incentive program. It has a class rate of .65 percent, provided that the owner of the property must apply to the assessor in order for the property to initially qualify for the reduced rate and provide the information required by the assessor to verify that the property qualifies for the reduced
rate. If the assessor receives the application and information before May 1 in an assessment year, the property qualifies beginning with that assessment year. If the assessor receives the application and information after April 30 in an assessment year, the property may not qualify until the next assessment year. The commissioner of natural resources must concur that the land is qualified. The commissioner of natural resources shall annually provide county assessors verification information on a timely basis. The presence of a minor, ancillary nonresidential structure as defined by the commissioner of revenue does not disqualify the property from classification under this paragraph.
(e) Agricultural land as used in this
section means:
(1) contiguous acreage of ten acres
or more, used during the preceding year for agricultural purposes.;
or
(2)
contiguous acreage used during the preceding year for an intensive livestock or
poultry confinement operation, provided that land used only for
pasturing or grazing does not qualify under this clause.
"Agricultural
purposes" as used in this section means the raising, cultivation, drying,
or storage of agricultural products for sale, or the storage of machinery or
equipment used in support of agricultural production by the same farm entity. For a property to be classified as
agricultural based only on the drying or storage of agricultural products, the
products being dried or stored must have been produced by the same farm entity
as the entity operating the drying or storage facility. "Agricultural purposes" also
includes enrollment in the Reinvest in Minnesota program under sections
103F.501 to 103F.535 or the federal Conservation Reserve Program as contained
in Public Law 99-198 or a similar state or federal conservation program if the
property was classified as agricultural (i) under this subdivision for the
assessment year 2002 taxes payable in 2003 because of its enrollment in
a qualifying program and the land remains enrolled or (ii) in the year
prior to its enrollment. Agricultural
classification shall not be based upon the market value of any residential
structures on the parcel or contiguous parcels under the same ownership.
"Contiguous acreage," for
purposes of this paragraph, means all of, or a contiguous portion of, a tax
parcel as described in section 272.193, or all of, or a contiguous portion of,
a set of contiguous tax parcels under that section that are owned by the same
person.
(f) Real estate of Agricultural
land under this section also includes:
(1) contiguous acreage that is less
than ten acres, which is in size and exclusively or
intensively used in the preceding year for raising or cultivating
agricultural products, shall be considered as agricultural land. To qualify under this paragraph, property
that includes a residential structure must be used intensively for one of the
following purposes:; or
(2) contiguous acreage that contains a
residence and is less than 11 acres in size, if the contiguous acreage
exclusive of the house, garage, and surrounding one acre of land was used in
the preceding year for one or more of the following three uses:
(i) for an intensive grain drying or
storage of grain operation, or for intensive machinery or
equipment storage of machinery or equipment activities used
to support agricultural activities on other parcels of property operated by the
same farming entity;
(ii) as a nursery, provided that only those
acres used intensively to produce nursery stock are considered
agricultural land; or
(iii) for livestock or poultry
confinement, provided that land that is used only for pasturing and grazing
does not qualify; or
(iv) (iii) for intensive market farming; for purposes of this paragraph, "market farming" means the cultivation of one or more fruits or vegetables or production of animal or other agricultural products for sale to local markets by the farmer or an organization with which the farmer is affiliated.
"Contiguous acreage," for
purposes of this paragraph, means all of a tax parcel as described in section
272.193, or all of a set of contiguous tax parcels under that section that are
owned by the same person.
(g) Land shall be classified as agricultural even if all or a portion of the agricultural use of that property is the leasing to, or use by another person for agricultural purposes.
Classification under this subdivision is not determinative for qualifying under section 273.111.
(h) The property classification under this section supersedes, for property tax purposes only, any locally administered agricultural policies or land use restrictions that define minimum or maximum farm acreage.
(i) The term "agricultural products" as used in this subdivision includes production for sale of:
(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, and apiary products by the owner;
(2) fish bred for sale and consumption if the fish breeding occurs on land zoned for agricultural use;
(3) the commercial boarding of horses, which may include related horse training and riding instruction, if the boarding is done on property that is also used for raising pasture to graze horses or raising or cultivating other agricultural products as defined in clause (1);
(4) property which is owned and operated by nonprofit organizations used for equestrian activities, excluding racing;
(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section 97A.105, provided that the annual licensing report to the Department of Natural Resources, which must be submitted annually by March 30 to the assessor, indicates that at least 500 birds were raised or used for breeding stock on the property during the preceding year and that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a shooting preserve licensed under section 97A.115;
(6) insects primarily bred to be used as food for animals;
(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold for timber, lumber, wood, or wood products; and
(8) maple syrup taken from trees grown by a person licensed by the Minnesota Department of Agriculture under chapter 28A as a food processor.
(j) If a parcel used for agricultural purposes is also used for commercial or industrial purposes, including but not limited to:
(1) wholesale and retail sales;
(2) processing of raw agricultural products or other goods;
(3) warehousing or storage of processed goods; and
(4) office facilities for the support of the activities enumerated in clauses (1), (2), and (3),
the assessor shall classify the part of the parcel used for agricultural purposes as class 1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. The grading, sorting, and packaging of raw agricultural products for first sale is considered an agricultural purpose. A greenhouse or other building where horticultural or nursery products are grown that is also used for the conduct of retail sales must be classified as agricultural if it is primarily used for the growing of horticultural or nursery products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. Use of a greenhouse or building only for the display of already grown horticultural or nursery products does not qualify as an agricultural purpose.
(k) The assessor shall determine and list separately on the records the market value of the homestead dwelling and the one acre of land on which that dwelling is located. If any farm buildings or structures are located on this homesteaded acre of land, their market value shall not be included in this separate determination.
(l) Class 2d airport landing area consists of a landing area or public access area of a privately owned public use airport. It has a class rate of one percent of market value. To qualify for classification under this paragraph, a privately owned public use airport must be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing area" means that part of a privately owned public use airport properly cleared, regularly maintained, and made available to the public for use by aircraft and includes runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing area also includes land underlying both the primary surface and the approach surfaces that comply with all of the following:
(i) the land is properly cleared and regularly maintained for the primary purposes of the landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
(ii) the land is part of the airport property; and
(iii) the land is not used for commercial or residential purposes.
The land contained in a landing area under this paragraph must be described and certified by the commissioner of transportation. The certification is effective until it is modified, or until the airport or landing area no longer meets the requirements of this paragraph. For purposes of this paragraph, "public access area" means property used as an aircraft parking ramp, apron, or storage hangar, or an arrival and departure building in connection with the airport.
(m) Class 2e consists of land with a commercial aggregate deposit that is not actively being mined and is not otherwise classified as class 2a or 2b, provided that the land is not located in a county that has elected to opt-out of the aggregate preservation program as provided in section 273.1115, subdivision 6. It has a class rate of one percent of market value. To qualify for classification under this paragraph, the property must be at least ten contiguous acres in size and the owner of the property must record with the county recorder of the county in which the property is located an affidavit containing:
(1) a legal description of the property;
(2) a disclosure that the property contains a commercial aggregate deposit that is not actively being mined but is present on the entire parcel enrolled;
(3) documentation that the conditional use under the county or local zoning ordinance of this property is for mining; and
(4) documentation that a permit has been issued by the local unit of government or the mining activity is allowed under local ordinance. The disclosure must include a statement from a registered professional geologist, engineer, or soil scientist delineating the deposit and certifying that it is a commercial aggregate deposit.
For purposes of this section and section 273.1115, "commercial aggregate deposit" means a deposit that will yield crushed stone or sand and gravel that is suitable for use as a construction aggregate; and "actively mined" means the removal of top soil and overburden in preparation for excavation or excavation of a commercial deposit.
(n) When any portion of the property under this subdivision or subdivision 22 begins to be actively mined, the owner must file a supplemental affidavit within 60 days from the day any aggregate is removed stating the number of acres of the property that is actively being mined. The acres actively being mined must be (1) valued and classified under subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate resource preservation property tax program under section 273.1115, if the land was enrolled in that program. Copies of the original affidavit and all supplemental affidavits must be filed with the county assessor, the local zoning administrator, and the Department of Natural Resources, Division of Land and Minerals. A supplemental affidavit must be filed each time a subsequent portion of the property is actively mined, provided that the minimum acreage change is five acres, even if the actual mining activity constitutes less than five acres.
(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do not apply.
EFFECTIVE
DATE. This section is
effective for taxes payable in 2014 and thereafter.
Sec. 10. Minnesota Statutes 2012, section 273.19, subdivision 1, is amended to read:
Subdivision 1. Tax-exempt property; lease. Except as provided in subdivision 3 or 4, tax-exempt property held under a lease for a term of at least one year, and not taxable under section 272.01, subdivision 2, or under a contract for the purchase thereof, shall be considered, for all purposes of taxation, as the property of the person holding it. In this subdivision, "tax-exempt property" means property owned by the United States, the state or any of its political subdivisions, a school, or any religious, scientific, or benevolent society or institution, incorporated or unincorporated, or any corporation whose property is not taxed in the same manner as other property. This subdivision does not apply to property exempt from taxation under section 272.01, subdivision 2, paragraph (b), clauses (2), (3), and (4), or to property exempt from taxation under section 272.0213.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2012, section 273.372, subdivision 4, is amended to read:
Subd. 4. Administrative
appeals. (a) Companies that submit
the reports under section 270.82 or 273.371 by the date specified in that
section, or by the date specified by the commissioner in an extension, may
appeal administratively to the commissioner prior to bringing an action in
court by submitting.
(b) Companies that must submit reports
under section 270.82 must submit a written request with to
the commissioner for a conference within ten days after the date of the
commissioner's valuation certification or notice to the company, or by May
June 15, whichever is earlier.
(c) Companies that submit reports under
section 273.371 must submit a written request to the commissioner for a
conference within ten days after the date of the commissioner's valuation
certification or notice to the company, or by July 1, whichever is earlier.
(d) The commissioner shall conduct the conference upon the commissioner's entire files and records and such further information as may be offered. The conference must be held no later than 20 days after the date of the commissioner's valuation certification or notice to the company, or by the date specified by the commissioner in an extension. Within 60 days after the conference the commissioner shall make a final determination of the matter and shall notify the company promptly of the determination. The conference is not a contested case hearing.
(b) (e) In addition to the
opportunity for a conference under paragraph (a), the commissioner shall also
provide the railroad and utility companies the opportunity to discuss any
questions or concerns relating to the values established by the commissioner
through certification or notice in a less formal manner. This does not change or modify the deadline
for requesting a conference under paragraph (a), the deadline in section 271.06
for appealing an order of the commissioner, or the deadline in section 278.01
for appealing property taxes in court.
EFFECTIVE
DATE. This section is
effective beginning with assessment year 2014.
Sec. 12. Minnesota Statutes 2012, section 273.39, is amended to read:
273.39
RURAL AREA.
As used in sections 273.39 to 273.41, the
term "rural area" shall be deemed to mean any area of the state not
included within the boundaries of any incorporated statutory city or
home rule charter city, and such term shall be deemed to include both farm
and nonfarm population thereof.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. Minnesota Statutes 2012, section 279.06, subdivision 1, is amended to read:
Subdivision 1. List and notice. Within five days after the filing of such list, the court administrator shall return a copy thereof to the county auditor, with a notice prepared and signed by the court administrator, and attached thereto, which may be substantially in the following form:
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State of Minnesota |
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County of ……………. |
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District Court |
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……………………Judicial District. |
The state of Minnesota, to all persons, companies, or corporations who have or claim any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of land described in the list hereto attached:
The list of taxes and penalties on real
property for the county of ............................... remaining delinquent on the first Monday in
January, ......., has been filed in the office of the court administrator of
the district court of said county, of which that hereto attached is a copy. Therefore, you, and each of you, are hereby
required to file in the office of said court administrator, on or before the
20th day after the publication of this notice and list, your answer, in
writing, setting forth any objection or defense you may have to the taxes, or
any part thereof, upon any parcel of land described in the list, in, to, or on
which you have or claim any estate, right, title, interest, claim, or lien,
and, in default thereof, judgment will be entered against such parcel of land
for the taxes on such list appearing against it, and for all penalties, interest,
and costs. Based upon said judgment, the land shall be sold to the state of
Minnesota on the second Monday in May, .......
The period of redemption for all lands sold to the state at a tax
judgment sale shall be three years from the date of sale to the state of
Minnesota if the land is within an incorporated area unless it is:
(a) nonagricultural homesteaded land as
defined in section 273.13, subdivision 22;
(b) homesteaded agricultural
land as defined in section 273.13, subdivision 23, paragraph (a);
(c) seasonal residential recreational
land as defined in section 273.13, subdivisions 22, paragraph (c), and 25,
paragraph (d), clause (1), in which event the period of redemption is five
years from the date of sale to the state of Minnesota;
(d) abandoned property and pursuant to
section 281.173 a court order has been entered shortening the redemption period
to five weeks; or
(e) vacant property as described under
section 281.174, subdivision 2, and for which a court order is entered
shortening the redemption period under section 281.174.
The period of redemption for all other
lands sold to the state at a tax judgment sale shall be five years from the
date of sale.
Inquiries as to the proceedings set forth above can be made to the county auditor of..... county whose address is ......
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(Signed), Court Administrator of the District Court of the County of ………..……………………………………………………………… |
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(Here insert list.) |
The notice must contain a narrative
description of the various periods to redeem specified in sections 281.17,
281.173, and 281.174, in the manner prescribed by the commissioner of revenue
under subdivision 2.
The list referred to in the notice shall be substantially in the following form:
List of real property for the county of ......................., on which taxes remain delinquent on the first Monday in January, .......
Town of (Fairfield),
Township (40), Range (20),
As to platted property, the form of heading shall conform to circumstances and be substantially in the following form:
City of (Smithtown)
Brown's Addition, or Subdivision
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Names (and Current Filed Addresses) for the Taxpayers and Fee Owners and in Addition Those Parties Who Have Filed Their Addresses Pursuant to section 276.041 |
Lot |
Block |
Tax Parcel Number |
Total Tax and Penalty |
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$ cts. |
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John Jones (825 Fremont Fairfield, MN 55000) |
15 |
9 |
58243 |
2.20 |
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Bruce Smith (2059 Hand Fairfield, MN 55000) and Fairfield State Bank (100 Main Street Fairfield, MN 55000) |
16 |
9 |
58244 |
3.15 |
The names, descriptions, and figures employed in parentheses in the above forms are merely for purposes of illustration.
The name of the town, township, range or city, and addition or subdivision, as the case may be, shall be repeated at the head of each column of the printed lists as brought forward from the preceding column.
Errors in the list shall not be deemed to be a material defect to affect the validity of the judgment and sale.
EFFECTIVE
DATE. This section is
effective for lists and notices required after December 31, 2013.
Sec. 14. Minnesota Statutes 2012, section 290B.04, subdivision 2, is amended to read:
Subd. 2. Approval; recording. The commissioner shall approve all initial applications that qualify under this chapter and shall notify qualifying homeowners on or before December 1. The commissioner may investigate the facts or require confirmation in regard to an application. The commissioner shall record or file a notice of qualification for deferral, including the names of the qualifying homeowners and a legal description of the property, in the office of the county recorder, or registrar of titles, whichever is applicable, in the county where the qualifying
property is located. The notice must state that it serves as a notice of lien and that it includes deferrals under this section for future years. The commissioner shall prescribe the form of the notice. Execution of the notice by the original or facsimile signature of the commissioner or a delegate entitles them to be recorded, and no other attestation, certification, or acknowledgment is necessary. The homeowner shall pay the recording or filing fees for the notice, which, notwithstanding section 357.18, shall be paid by the homeowner at the time of satisfaction of the lien.
EFFECTIVE DATE. This section is effective for notices that are
both executed and recorded after June 30, 2013.
Sec. 15. Minnesota Statutes 2012, section 298.01, subdivision 3, is amended to read:
Subd. 3. Occupation tax; other ores. Every person engaged in the business of mining, refining, or producing ores, metals, or minerals in this state, except iron ore or taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided in this subdivision. For purposes of this subdivision, mining includes the application of hydrometallurgical processes. Hydrometallurgical processes are processes that extract the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and recover the ore, metal, or mineral. The tax is determined in the same manner as the tax imposed by section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply, and the occupation tax must be computed by applying to taxable income the rate of 2.45 percent. A person subject to occupation tax under this section shall apportion its net income on the basis of the percentage obtained by taking the sum of:
(1) 75 percent of the percentage which the sales made within this state in connection with the trade or business during the tax period are of the total sales wherever made in connection with the trade or business during the tax period;
(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer in this state in connection with the trade or business during the tax period is of the total tangible property, wherever located, used by the taxpayer in connection with the trade or business during the tax period; and
(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred in this state or paid in respect to labor performed in this state in connection with the trade or business during the tax period are of the taxpayer's total payrolls paid or incurred in connection with the trade or business during the tax period.
The tax is in addition to all other taxes.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2012, section 298.018, is amended to read:
298.018
DISTRIBUTION OF PROCEEDS.
Subdivision 1. Within
taconite assistance area. The
proceeds of the tax paid under sections 298.015 and 298.016 on ores, metals,
or minerals and energy resources mined or extracted within the
taconite assistance area defined in section 273.1341, shall be allocated as
follows:
(1) five percent to the city or town within which the minerals or energy resources are mined or extracted;
(2) ten percent to the taconite municipal aid account to be distributed as provided in section 298.282;
(3) ten percent to the school district within which the minerals or energy resources are mined or extracted;
(4) 20 percent to a group of school districts comprised of those school districts wherein the mineral or energy resource was mined or extracted or in which there is a qualifying municipality as defined by section 273.134, paragraph (b), in direct proportion to school district indexes as follows: for each school district, its pupil units
determined under section 126C.05 for the prior school year shall be multiplied by the ratio of the average adjusted net tax capacity per pupil unit for school districts receiving aid under this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. Each district shall receive that portion of the distribution which its index bears to the sum of the indices for all school districts that receive the distributions;
(5) 20 percent to the county within which the minerals or energy resources are mined or extracted;
(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed as provided in sections 273.134 to 273.136;
(7) five percent to the Iron Range Resources and Rehabilitation Board for the purposes of section 298.22;
(8) five percent to the Douglas J. Johnson economic protection trust fund; and
(9) five percent to the taconite environmental protection fund.
The proceeds of the tax shall be distributed on July 15 each year.
Subd. 2. Outside
taconite assistance area. The
proceeds of the tax paid under sections 298.015 and 298.016 on ores, metals,
or minerals and energy resources mined or extracted outside of the
taconite assistance area defined in section 273.1341, shall be deposited in the
general fund.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 17. Minnesota Statutes 2012, section 373.01, subdivision 1, is amended to read:
Subdivision 1. Public corporation; listed powers. (a) Each county is a body politic and corporate and may:
(1) Sue and be sued.
(2) Acquire and hold real and personal property for the use of the county, and lands sold for taxes as provided by law.
(3) Purchase and hold for the benefit of the county real estate sold by virtue of judicial proceedings, to which the county is a party.
(4) Sell, lease, and convey real or personal estate owned by the county, and give contracts or options to sell, lease, or convey it, and make orders respecting it as deemed conducive to the interests of the county's inhabitants.
(5) Make all contracts and do all other acts in relation to the property and concerns of the county necessary to the exercise of its corporate powers.
(b) No sale, lease, or conveyance of real estate owned by the county, except the lease of a residence acquired for the furtherance of an approved capital improvement project, nor any contract or option for it, shall be valid, without first advertising for bids or proposals in the official newspaper of the county for three consecutive weeks and once in a newspaper of general circulation in the area where the property is located. The notice shall state the time and place of considering the proposals, contain a legal description of any real estate, and a brief description of any personal property. Leases that do not exceed $15,000 for any one year may be negotiated and are not subject to the competitive bid procedures of this section. All proposals estimated to exceed $15,000 in any one year shall be considered at the time set for the bid opening, and the one most favorable to the county accepted, but the county board may, in the interest of the county, reject any or all proposals.
(c) Sales of personal property the value of which is estimated to be $15,000 or more shall be made only after advertising for bids or proposals in the county's official newspaper, on the county's Web site, or in a recognized industry trade journal. At the same time it posts on its Web site or publishes in a trade journal, the county must publish in the official newspaper, either as part of the minutes of a regular meeting of the county board or in a separate notice, a summary of all requests for bids or proposals that the county advertises on its Web site or in a trade journal. After publication in the official newspaper, on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by the electronic selling process authorized in section 471.345, subdivision 17. Sales of personal property the value of which is estimated to be less than $15,000 may be made either on competitive bids or in the open market, in the discretion of the county board. "Web site" means a specific, addressable location provided on a server connected to the Internet and hosting World Wide Web pages and other files that are generally accessible on the Internet all or most of a day.
(d) Notwithstanding anything to the contrary herein, the county may, when acquiring real property for county highway right-of-way, exchange parcels of real property of substantially similar or equal value without advertising for bids. The estimated values for these parcels shall be determined by the county assessor.
(e) Notwithstanding anything in this section to the contrary, the county may, when acquiring real property for purposes other than county highway right-of-way, exchange parcels of real property of substantially similar or equal value without advertising for bids. The estimated values for these parcels must be determined by the county assessor or a private appraisal performed by a licensed Minnesota real estate appraiser. For the purpose of determining for the county the estimated values of parcels proposed to be exchanged, the county assessor need not be licensed under chapter 82B. Before giving final approval to any exchange of land, the county board shall hold a public hearing on the exchange. At least two weeks before the hearing, the county auditor shall post a notice in the auditor's office and the official newspaper of the county of the hearing that contains a description of the lands affected.
(f) If real estate or personal property remains unsold after advertising for and consideration of bids or proposals the county may employ a broker to sell the property. The broker may sell the property for not less than 90 percent of its appraised market value as determined by the county. The broker's fee shall be set by agreement with the county but may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.
(g) A county or its agent may rent a county-owned residence acquired for the furtherance of an approved capital improvement project subject to the conditions set by the county board and not subject to the conditions for lease otherwise provided by paragraph (a), clause (4), and paragraphs (b), (c), (d), (f), and (h).
(h) In no case shall lands be disposed of without there being reserved to the county all iron ore and other valuable minerals in and upon the lands, with right to explore for, mine and remove the iron ore and other valuable minerals, nor shall the minerals and mineral rights be disposed of, either before or after disposition of the surface rights, otherwise than by mining lease, in similar general form to that provided by section 93.20 for mining leases affecting state lands. The lease shall be for a term not exceeding 50 years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of 2,240 pounds, and fix a minimum amount of royalty payable during each year, whether mineral is removed or not. Prospecting options for mining leases may be granted for periods not exceeding one year. The options shall require, among other things, periodical showings to the county board of the results of exploration work done.
(i) Notwithstanding anything in this subdivision to the contrary, the county may, when selling real property owned in fee simple that cannot be improved because of noncompliance with local ordinances regarding minimum area, shape, frontage, or access, proceed to sell the nonconforming parcel without advertising for bid. At the county's discretion, the real property may be restricted to sale to adjoining landowners or may be sold to any other
interested party. The property shall be sold to the highest bidder, but in no case shall the property be sold for less than 90 percent of its fair market value as determined by the county assessor. All owners of land adjoining the land to be sold shall be given a written notice at least 30 days before the sale. This paragraph shall be liberally construed to encourage the sale of nonconforming real property and promote its return to the tax roles.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. REPEALER.
Minnesota Statutes 2012, sections
272.69; and 273.11, subdivisions 1a and 22, are repealed.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
ARTICLE 18
DEPARTMENT POLICY AND TECHNICAL:
MISCELLANEOUS PROVISIONS
Section 1. Minnesota Statutes 2012, section 16A.46, is amended to read:
16A.46
LOST OR DESTROYED WARRANT DUPLICATE; INDEMNITY.
Subdivision 1. Duplicate
warrant. The commissioner may
issue a duplicate of an unpaid warrant to an owner if the owner certifies that
the original was lost or destroyed. The
commissioner may require certification be documented by affidavit. The commissioner may refuse to issue a
duplicate of an unpaid state warrant. If
the commissioner acts in good faith, the commissioner is not liable, whether
the application is granted or denied.
Subd. 2. Original
warrant is void. When the
duplicate is issued, the original is void.
The commissioner may require an indemnity bond from the applicant to the
state for double the amount of the warrant for anyone damaged by the issuance
of the duplicate. The commissioner may
refuse to issue a duplicate of an unpaid state warrant. If the commissioner acts in good faith the
commissioner is not liable, whether the application is granted or denied is
not liable to any holder who took the void original warrant for value, whether
or not the commissioner required an indemnity bond from the applicant.
Subd. 3. Unpaid refund or rebate. For an unpaid refund or rebate issued under a tax law administered by the commissioner of revenue that has been lost or destroyed, an affidavit is not required for the commissioner to issue a duplicate if the duplicate is issued to the same name and Social Security number as the original warrant and that information is verified on a tax return filed by the recipient.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 2. Minnesota Statutes 2012, section 270C.38, subdivision 1, is amended to read:
Subdivision 1. Sufficient notice. (a) If no method of notification of a written determination or action of the commissioner is otherwise specifically provided for by law, notice of the determination or action sent postage prepaid by United States mail to the taxpayer or other person affected by the determination or action at the taxpayer's or person's last known address, is sufficient. If the taxpayer or person being notified is deceased or is under a legal disability, or, in the case of a corporation being notified that has terminated its existence, notice to the last known address of the taxpayer, person, or corporation is sufficient, unless the department has been provided with a new address by a party authorized to receive notices from the commissioner.
(b) If a taxpayer or other
person agrees to accept notification by electronic means, notice of a
determination or action of the commissioner sent by electronic mail to the
taxpayer's or person's last known electronic mailing address as provided for in
section 325L.08 is sufficient.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 3. Minnesota Statutes 2012, section 270C.42, subdivision 2, is amended to read:
Subd. 2. Penalty
for failure to pay electronically. In
addition to other applicable penalties imposed by law, after notification from
the commissioner to the taxpayer that payments for a tax payable to the
commissioner are required to be made by electronic means, and the payments are
remitted by some other means, there is a penalty in the amount of five percent
of each payment that should have been remitted electronically. After the commissioner's initial notification
to the taxpayer that payments are required to be made by electronic means, the
commissioner is not required to notify the taxpayer in subsequent periods if
the initial notification specified the amount of tax liability at which a
taxpayer is required to remit payments by electronic means. The penalty can be abated under the abatement
procedures prescribed in section 270C.34 if the failure to remit the payment
electronically is due to reasonable cause.
The penalty bears interest at the rate specified in section 270C.40 from
the due date of the payment of the tax provided in section
270C.40, subdivision 3, to the date of payment of the penalty.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 4. Minnesota Statutes 2012, section 287.385, subdivision 7, is amended to read:
Subd. 7. Interest
on penalties. A penalty imposed
under this chapter bears interest from the date payment was required to be
paid, including any extensions, provided in section 270C.40, subdivision
3, to the date of payment of the penalty.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 5. Minnesota Statutes 2012, section 289A.55, subdivision 9, is amended to read:
Subd. 9. Interest
on penalties. (a) A penalty imposed
under section 289A.60, subdivision 1, 2, 2a, 4, 5, 6, or 21 bears
interest from the date the return or payment was required to be filed or
paid, including any extensions provided in section 270C.40, subdivision
3, to the date of payment of the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within 60 days from the date of notice. In that case interest is imposed from the date of notice to the date of payment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 6. Minnesota Statutes 2012, section 289A.60, subdivision 4, is amended to read:
Subd. 4. Substantial understatement of liability; penalty. (a) The commissioner of revenue shall impose a penalty for substantial understatement of any tax payable to the commissioner, except a tax imposed under chapter 297A.
(b) There must be added to the tax an amount equal to 20 percent of the amount of any underpayment attributable to the understatement. There is a substantial understatement of tax for the period if the amount of the understatement for the period exceeds the greater of:
(1) ten percent of the tax required to be shown on the return for the period; or
(2)(i) $10,000 in the case of a mining company or a corporation, other than an S corporation as defined in section 290.9725, when the tax is imposed by chapter 290 or section 298.01 or 298.015, or
(ii) $5,000 in the case of any other taxpayer, and in the case of a mining company or a corporation any tax not imposed by chapter 290 or section 298.01 or 298.015.
(c) For a corporation, other than an S corporation, there is also a substantial understatement of tax for any taxable year if the amount of the understatement for the taxable year exceeds the lesser of:
(1) ten percent of the tax required to be shown on the return for the taxable year (or, if greater, $10,000); or
(2) $10,000,000.
(d) The term "understatement" means the excess of the amount of the tax required to be shown on the return for the period, over the amount of the tax imposed that is shown on the return. The excess must be determined without regard to items to which subdivision 27 applies. The amount of the understatement shall be reduced by that part of the understatement that is attributable to the tax treatment of any item by the taxpayer if (1) there is or was substantial authority for the treatment, or (2)(i) any item with respect to which the relevant facts affecting the item's tax treatment are adequately disclosed in the return or in a statement attached to the return and (ii) there is a reasonable basis for the tax treatment of the item. The exception for substantial authority under clause (1) does not apply to positions listed by the Secretary of the Treasury under section 6662(d)(3) of the Internal Revenue Code. A corporation does not have a reasonable basis for its tax treatment of an item attributable to a multiple-party financing transaction if the treatment does not clearly reflect the income of the corporation within the meaning of section 6662(d)(2)(B) of the Internal Revenue Code. The special rules in cases involving tax shelters provided in section 6662(d)(2)(C) of the Internal Revenue Code shall apply and shall apply to a tax shelter the principal purpose of which is the avoidance or evasion of state taxes.
(e) The commissioner may abate all or any
part of the addition to the tax provided by this section on a showing by the
taxpayer that there was reasonable cause for the understatement, or part of it,
and that the taxpayer acted in good faith.
The additional tax and penalty shall bear interest at the rate as
specified in section 270C.40 from the time the tax should have been paid
until paid.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 7. Minnesota Statutes 2012, section 296A.01, subdivision 7, is amended to read:
Subd. 7. Aviation
gasoline. "Aviation
gasoline" means any gasoline that is capable of use for the purpose of
producing or generating power for propelling internal combustion engine
aircraft, that meets the specifications in ASTM specification D910-07a D910-11,
and that either:
(1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a distributor or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, as "aviation gasoline"; or
(2) whether or not invoiced and billed as provided in clause (1), is received, sold, stored, or withdrawn from storage by any person, to be used for the purpose of producing or generating power for propelling internal combustion engine aircraft.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 8. Minnesota Statutes 2012, section 296A.01, subdivision 8, is amended to read:
Subd. 8. Aviation
turbine fuel and jet fuel. "Aviation
turbine fuel" and "jet fuel" mean blends of hydrocarbons derived
from crude petroleum, natural gasoline, and synthetic hydrocarbons, intended
for use in aviation turbine engines, and that meet the specifications in ASTM
specification D1655-08a D1655-12.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 9. Minnesota Statutes 2012, section 296A.01, is amended by adding a subdivision to read:
Subd. 8b. Biobutanol. "Biobutanol" means isobutyl
alcohol produced by fermenting agriculturally generated organic material that
is to be blended with gasoline and meets either:
(1) the initial ASTM Standard
Specification for Butanol for Blending with Gasoline for use as an Automotive
Spark-Ignition Engine Fuel once it has been released by ASTM for general
distribution; or
(2) in the absence of an ASTM Standard
Specification, the following list of requirements:
(i) visually free of sediment and
suspended matter;
(ii)
clear and bright at the ambient temperature of 21 degrees Celsius or the
ambient temperature whichever is higher;
(iii) free of any adulterant or
contaminant that can render it unacceptable for its commonly used applications;
(iv) contains not less than 96 volume
percent isobutyl alcohol;
(v) contains not more than 0.4 volume
percent methanol;
(vi)
contains not more than 1.0 volume percent water as determined by ASTM standard
test method E203 or E1064;
(vii)
acidity (as acetic acid) of not more than 0.007 mass percent as determined by
ASTM standard test method D1613;
(viii) solvent washed gum content of not
more than 5.0 milligrams per 100 milliliters as determined by ASTM standard
test method D381;
(ix) sulfur content of not more than 30
parts per million as determined by ASTM standard test method D2622 or D5453;
and
(x) contains not more than 4 parts per
million total inorganic sulfate.
Sec. 10. Minnesota Statutes 2012, section 296A.01, subdivision 14, is amended to read:
Subd. 14. Diesel
fuel oil. "Diesel fuel
oil" means a petroleum distillate or blend of petroleum distillate and
residual fuels that is intended for use as a motor fuel in internal combustion
diesel engines and that meets ASTM specification D975-07b D975-11b.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 11. Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read:
Subd. 19. E85. "E85" means a petroleum product
that is a blend of agriculturally derived denatured ethanol and gasoline or
natural gasoline that typically contains not more than 85 percent
ethanol by volume, but at a minimum must contain 60 greater than 50
percent ethanol by volume. For the
purposes of this chapter, the energy content of E85 will be considered to be
82,000 BTUs per gallon. E85 produced for
use as a motor fuel in alternative fuel vehicles as defined in subdivision 5
must comply with ASTM specification D5798-07 D5798-11.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 12. Minnesota Statutes 2012, section 296A.01, subdivision 20, is amended to read:
Subd. 20. Ethanol,
denatured. "Ethanol,
denatured" means ethanol that is to be blended with gasoline, has been
agriculturally derived, and complies with ASTM specification D4806-08 D4806-11a. This includes the requirement that ethanol may be denatured only as specified in Code of
Federal Regulations, title 27, parts 20 and 21.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 13. Minnesota Statutes 2012, section 296A.01, subdivision 23, is amended to read:
Subd. 23. Gasoline. (a) "Gasoline" means:
(1) all products commonly or commercially known or sold as gasoline regardless of their classification or uses, except casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural gasoline that under the requirements of section 239.761, subdivision 3, must not be blended with gasoline that has been sold, transferred, or otherwise removed from a refinery or terminal; and
(2) any liquid prepared, advertised, offered
for sale or sold for use as, or commonly and commercially used as, a fuel in
spark-ignition, internal combustion engines, and that when tested by the
Weights and Measures Division meets the specifications in ASTM specification D4814-08b
D4814-11b.
(b) Gasoline that is not blended with ethanol
must not be contaminated with water or other impurities and must comply with
both ASTM specification D4814-08b D4814-11b and the volatility
requirements in Code of Federal Regulations, title 40, part 80.
(c) After gasoline is sold, transferred, or otherwise removed from a refinery or terminal, a person responsible for the product:
(1) may blend the gasoline with agriculturally derived ethanol, as provided in subdivision 24;
(2) must not blend the gasoline with any oxygenate other than denatured, agriculturally derived ethanol;
(3) must not blend the gasoline with other petroleum products that are not gasoline or denatured, agriculturally derived ethanol;
(4) must not blend the gasoline with products commonly and commercially known as casinghead gasoline, absorption gasoline, condensation gasoline, drip gasoline, or natural gasoline; and
(5) may blend the gasoline with a detergent additive, an antiknock additive, or an additive designed to replace tetra-ethyl lead, that is registered by the EPA.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 14. Minnesota Statutes 2012, section 296A.01, subdivision 24, is amended to read:
Subd. 24. Gasoline
blended with nonethanol oxygenate. "Gasoline
blended with nonethanol oxygenate" means gasoline blended with ETBE, MTBE,
or other alcohol or ether, except denatured ethanol, that is approved as an
oxygenate by the EPA, and that complies with ASTM specification D4814-08b
D4814-11b. Oxygenates, other than
denatured ethanol, must not be blended into gasoline after the gasoline has
been sold, transferred, or otherwise removed from a refinery or terminal.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 15. Minnesota Statutes 2012, section 296A.01, subdivision 26, is amended to read:
Subd. 26. Heating
fuel oil. "Heating fuel
oil" means a petroleum distillate, blend of petroleum distillates and residuals, or petroleum residual heating fuel
that meets the specifications in ASTM specification D396-08b D396-12.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 16. Minnesota Statutes 2012, section 296A.22, subdivision 1, is amended to read:
Subdivision 1. Penalty for failure to pay tax, general rule. Upon the failure of any person to pay any tax or fee when due, a penalty of one percent per day for the first ten days of delinquency shall accrue, and thereafter the tax, fees, and penalty shall bear interest at the rate specified in section 270C.40 until paid.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 17. Minnesota Statutes 2012, section 296A.22, subdivision 3, is amended to read:
Subd. 3. Operating
without license. If any person
operates as a distributor, special fuel dealer, bulk purchaser, or motor
carrier without first securing the license required under this chapter, any tax
or fee imposed by this chapter shall become immediately due and payable. A penalty of 25 percent is imposed upon the
tax and fee due. The tax, and
fees, and penalty shall bear interest at the rate specified in section
270C.40. The penalty imposed in this
subdivision shall bear interest from the date provided in section 270C.40,
subdivision 3, to the date of payment of the penalty.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 18. Minnesota Statutes 2012, section 297B.11, is amended to read:
297B.11
REGISTRAR AS AGENT OF COMMISSIONER OF REVENUE; POWERS.
The state commissioner of revenue is charged with the administration of the sales tax on motor vehicles. The commissioner may prescribe all rules not inconsistent with the provisions of this chapter, necessary and advisable for the proper and efficient administration of the law. The collection of this sales tax on motor vehicles shall be carried out by the motor vehicle registrar who shall act as the agent of the commissioner and who shall be subject to all rules not inconsistent with the provisions of this chapter, that may be prescribed by the commissioner.
The provisions of chapters 270C, 289A, and 297A relating to the commissioner's authority to audit, assess, and collect the tax, and to issue refunds and to hear appeals, are applicable to the sales tax on motor vehicles. The commissioner may impose civil penalties as provided in chapters 289A and 297A, and the additional tax and penalties are subject to interest at the rate provided in section 270C.40 from the date provided in section 270C.40, subdivision 3, until paid.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 19. Minnesota Statutes 2012, section 297E.14, subdivision 7, is amended to read:
Subd. 7. Interest
on penalties. (a) A penalty imposed
under section 297E.12, subdivision 1, 2, 3, 4, or 5, bears interest from the
date the return or payment was required to be filed or paid, including any
extensions provided in section 270C.40, subdivision 3, to the date
of payment of the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within ten days from the date of notice. In that case interest is imposed from the date of notice to the date of payment.
EFFECTIVE
DATE. This section is effective
the day following final enactment.
Sec. 20. Minnesota Statutes 2012, section 297F.09, subdivision 9, is amended to read:
Subd. 9. Interest. The amount of tax not timely paid,
together with any penalty imposed in this section, bears interest at the
rate specified in section 270C.40 from the time such tax should have been paid
until paid. The penalty imposed in
this section bears interest at the rate specified in section 270C.40 from the
date provided in section 270C.40, subdivision 3, to the date of payment of the
penalty. Any interest and penalty is
added to the tax and collected as a part of it.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 21. Minnesota Statutes 2012, section 297F.18, subdivision 7, is amended to read:
Subd. 7. Interest
on penalties. (a) A penalty imposed
under section 297F.19, subdivisions 2 to 7, bears interest from the date the
return or payment was required to be filed or paid, including any extensions
provided in section 270C.40, subdivision 3, to the date of payment of
the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within ten days from the date of the notice. In that case interest is imposed from the date of notice to the date of payment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 22. Minnesota Statutes 2012, section 297G.09, subdivision 8, is amended to read:
Subd. 8. Interest. The amount of tax not timely paid,
together with any penalty imposed by this chapter, bears interest at the
rate specified in section 270C.40 from the time the tax should have been paid
until paid. Any penalty imposed by
this chapter bears interest from the date provided in section 270C.40,
subdivision 3, to the date of payment of the penalty. Any interest and penalty is added to the tax
and collected as a part of it.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 23. Minnesota Statutes 2012, section 297G.17, subdivision 7, is amended to read:
Subd. 7. Interest
on penalties. (a) A penalty imposed
under section 297G.18, subdivisions 2 to 7, bears interest from the date the
return or payment was required to be filed or paid, including any extensions
provided in section 270C.40, subdivision 3, to the date of payment of
the penalty.
(b) A penalty not included in paragraph (a) bears interest only if it is not paid within ten days from the date of the notice. In that case interest is imposed from the date of notice to the date of payment.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 24. Minnesota Statutes 2012, section 297I.80, subdivision 1, is amended to read:
Subdivision 1. Payable to commissioner. (a) When interest is required under this section, interest is computed at the rate specified in section 270C.40.
(b) If a tax or surcharge is not paid within the time named by law for payment, the unpaid tax or surcharge bears interest from the date the tax or surcharge should have been paid until the date the tax or surcharge is paid.
(c) Whenever a taxpayer is liable for additional tax or surcharge because of a redetermination by the commissioner or other reason, the additional tax or surcharge bears interest from the time the tax or surcharge should have been paid until the date the tax or surcharge is paid.
(d) A penalty bears interest from the date
the return or payment was required to be filed or paid provided in
section 270C.40, subdivision 3, to the date of payment of the penalty.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 25. Minnesota Statutes 2012, section 469.319, subdivision 4, is amended to read:
Subd. 4. Repayment procedures. (a) For the repayment of taxes imposed under chapter 290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an amended return with the commissioner of revenue and pay any taxes required to be repaid within 30 days after becoming subject to repayment under this section. The amount required to be repaid is determined by calculating the tax for the period or periods for which repayment is required without regard to the exemptions and credits allowed under section 469.315.
(b) For the repayment of taxes imposed under chapter 297B, a business must pay any taxes required to be repaid to the motor vehicle registrar, as agent for the commissioner of revenue, within 30 days after becoming subject to repayment under this section.
(c) For the repayment of property taxes, the county auditor shall prepare a tax statement for the business, applying the applicable tax extension rates for each payable year and provide a copy to the business and to the taxpayer of record. The business must pay the taxes to the county treasurer within 30 days after receipt of the tax statement. The business or the taxpayer of record may appeal the valuation and determination of the property tax to the Tax Court within 30 days after receipt of the tax statement.
(d) The provisions of chapters 270C and 289A
relating to the commissioner's authority to audit, assess, and collect the tax
and to hear appeals are applicable to the repayment required under paragraphs
(a) and (b). The commissioner may impose
civil penalties as provided in chapter 289A, and the additional tax and
penalties are subject to interest at the rate provided in section 270C.40,. The additional tax shall bear interest
from 30 days after becoming subject to repayment under this section until the
date the tax is paid. Any penalty
imposed pursuant to this section shall bear interest from the date provided in
section 270C.40, subdivision 3, to the date of payment of the penalty.
(e) If a property tax is not repaid under paragraph (c), the county treasurer shall add the amount required to be repaid to the property taxes assessed against the property for payment in the year following the year in which the auditor provided the statement under paragraph (c).
(f) For determining the tax required to be repaid, a reduction of a state or local sales or use tax is deemed to have been received on the date that the good or service was purchased or first put to a taxable use. In the case of an income tax or franchise tax, including the credit payable under section 469.318, a reduction of tax is deemed to have been received for the two most recent tax years that have ended prior to the date that the business became subject to
repayment under this section. In the case of a property tax, a reduction of tax is deemed to have been received for the taxes payable in the year that the business became subject to repayment under this section and for the taxes payable in the prior year.
(g) The commissioner may assess the repayment of taxes under paragraph (d) any time within two years after the business becomes subject to repayment under subdivision 1, or within any period of limitations for the assessment of tax under section 289A.38, whichever period is later. The county auditor may send the statement under paragraph (c) any time within three years after the business becomes subject to repayment under subdivision 1.
(h) A business is not entitled to any income tax or franchise tax benefits, including refundable credits, for any part of the year in which the business becomes subject to repayment under this section nor for any year thereafter. Property is not exempt from tax under section 272.02, subdivision 64, for any taxes payable in the year following the year in which the property became subject to repayment under this section nor for any year thereafter. A business is not eligible for any sales tax benefits beginning with goods or services purchased or first put to a taxable use on the day that the business becomes subject to repayment under this section.
EFFECTIVE
DATE. This section is
effective the day following final enactment.
Sec. 26. Minnesota Statutes 2012, section 469.340, subdivision 4, is amended to read:
Subd. 4. Repayment procedures. (a) For the repayment of taxes imposed under chapter 290 or 297A or local taxes collected pursuant to section 297A.99, a business must file an amended return with the commissioner of revenue and pay any taxes required to be repaid within 30 days after ceasing to do business in the zone. The amount required to be repaid is determined by calculating the tax for the period or periods for which repayment is required without regard to the exemptions and credits allowed under section 469.336.
(b) For the repayment of property taxes, the county auditor shall prepare a tax statement for the business, applying the applicable tax extension rates for each payable year and provide a copy to the business. The business must pay the taxes to the county treasurer within 30 days after receipt of the tax statement. The taxpayer may appeal the valuation and determination of the property tax to the Tax Court within 30 days after receipt of the tax statement.
(c) The provisions of chapters 270C and
289A relating to the commissioner's authority to audit, assess, and collect the
tax and to hear appeals are applicable to the repayment required under
paragraph (a). The commissioner may
impose civil penalties as provided in chapter 289A, and the additional tax and
penalties are subject to interest at the rate provided in section 270C.40,. The additional tax shall bear interest
from 30 days after ceasing to do business in the biotechnology and health
sciences industry zone until the date the tax is paid. Any penalty imposed pursuant to this
section shall bear interest from the date provided in section 270C.40,
subdivision 3, to the date of payment of the penalty.
(d) If a property tax is not repaid under paragraph (b), the county treasurer shall add the amount required to be repaid to the property taxes assessed against the property for payment in the year following the year in which the treasurer discovers that the business ceased to operate in the biotechnology and health sciences industry zone.
(e) For determining the tax required to be repaid, a tax reduction is deemed to have been received on the date that the tax would have been due if the taxpayer had not been entitled to the exemption, or on the date a refund was issued for a refundable credit.
(f) The commissioner may assess the repayment of taxes under paragraph (c) any time within two years after the business ceases to operate in the biotechnology and health sciences industry zone, or within any period of limitations for the assessment of tax under section 289A.38, whichever period is later.
EFFECTIVE DATE. This section is effective the day following final enactment."
Delete the title and insert:
"A bill for an act relating to financing and operation of state and local government; making changes to individual income, corporate franchise, property, sales and use, estate, mineral, tobacco, alcohol, special, local, and other taxes and tax-related provisions modifying the property tax refund; changing property tax aids and credits; modifying the Sustainable Forest Incentive Act; modifying education aids and levies; providing additional pension funding; modifying definitions and distributions for property taxes; providing for property tax exemptions; modifying the payment in lieu of tax provisions; modifying education aids and levies; modifying tobacco tax provisions; making changes to additions and subtractions from federal taxable income; providing for federal conformity; changing income tax rates for individuals, estates, and trusts; providing income tax credits; modifying estate tax provisions; providing for a state gift tax; expanding the sales tax base; modifying the duty to collect and remit sales taxes for certain sellers; imposing the sales tax on digital products and selected services; modifying the definition of sale and purchase; modifying provisions for the rental motor vehicle tax rate; providing for multiple points of use certificates; modifying sales tax exemptions; authorizing local sales taxes; authorizing economic development powers; modifying tax increment financing rules; providing authority, organization, powers, duties, and requiring a prevailing wage for development of a Destination Medical Center; authorizing state infrastructure aid; modifying the distribution of taconite production taxes; authorizing taconite production tax bonds for grants to school districts; modifying and providing provisions for public finance; providing funding for legislative office facilities; modifying the definition of market value for tax, debt, and other purposes; making conforming, policy, and technical changes to tax provisions; requiring studies and reports; appropriating money; amending Minnesota Statutes 2012, sections 13.792; 16A.46; 16A.727; 38.18; 40A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, 8; 88.51, subdivision 3; 103B.102, subdivision 3; 103B.245, subdivision 3; 103B.251, subdivision 8; 103B.335; 103B.3369, subdivision 5; 103B.635, subdivision 2; 103B.691, subdivision 2; 103C.501, subdivision 4; 103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1; 116J.8737, subdivisions 1, 2, 8; 117.025, subdivision 7; 118A.04, subdivision 3; 118A.05, subdivision 5; 123A.455, subdivision 1; 126C.10, subdivision 1, by adding a subdivision; 126C.13, subdivision 4; 126C.17; 126C.48, subdivision 8; 127A.48, subdivision 1; 138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, subdivision 3; 163.06, subdivision 6; 165.10, subdivision 1; 168.012, subdivision 9, by adding a subdivision; 216C.436, subdivision 7; 237.52, subdivision 3, by adding a subdivision; 270.077; 270.41, subdivisions 3, 5, by adding a subdivision; 270.45; 270B.01, subdivision 8; 270B.03, subdivision 1; 270B.12, subdivision 4; 270C.03, subdivision 1; 270C.34, subdivision 1; 270C.38, subdivision 1; 270C.42, subdivision 2; 270C.56, subdivision 1; 271.06, subdivision 2a, as added; 272.01, subdivision 2; 272.02, subdivisions 39, 97, by adding subdivisions; 272.03, subdivision 9, by adding subdivisions; 273.032; 273.061, subdivision 2; 273.0645; 273.11, subdivision 1; 273.114, subdivision 6; 273.117; 273.124, subdivisions 3a, 13; 273.13, subdivisions 21b, 23, 25; 273.1398, subdivisions 3, 4; 273.19, subdivision 1; 273.372, subdivision 4; 273.39; 275.011, subdivision 1; 275.077, subdivision 2; 275.71, subdivision 4; 276.04, subdivision 2; 276A.01, subdivisions 10, 12, 13, 15; 276A.06, subdivision 10; 279.01, subdivision 1, by adding a subdivision; 279.02; 279.06, subdivision 1; 279.37, subdivisions 1a, 2; 281.14; 281.17; 287.05, by adding a subdivision; 287.08; 287.20, by adding a subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.08, subdivision 3; 289A.10, subdivision 1, by adding a subdivision; 289A.12, subdivision 14, by adding a subdivision; 289A.18, by adding a subdivision; 289A.20, subdivisions 3, 4, by adding a subdivision; 289A.26, subdivisions 3, 4, 7, 9; 289A.55, subdivision 9; 289A.60, subdivision 4; 290.01, subdivisions 19, as amended, 19b, 19c, 19d; 290.06, subdivisions 2c, 2d, by adding a subdivision; 290.0677, subdivision 2; 290.068, subdivisions 3, 6a; 290.0681, subdivisions 1, 3, 4, 5, 10; 290.091, subdivisions 1, 2, 6; 290.0921, subdivision 3; 290.0922, subdivision 1; 290.095, subdivision 2; 290.10, subdivision 1; 290.17, subdivision 4; 290.191, subdivision 5; 290.21, subdivision 4; 290.9705, subdivision 1; 290A.03, subdivision 3; 290A.04, subdivisions 2, 2a, 4; 290B.04, subdivision 2; 290C.02, subdivision 6; 290C.03; 290C.055; 290C.07; 291.005, subdivision 1; 291.03, subdivisions 1, 8, 9, 10, 11, by adding a subdivision; 296A.01, subdivisions 7, 8, 14, 19, 20, 23, 24, 26, by adding a subdivision; 296A.09, subdivision 2; 296A.17, subdivision 3; 296A.22, subdivisions 1, 3; 297A.61, subdivisions 3, 4, 10, 25, 38, 45, by adding subdivisions; 297A.64, subdivision 1; 297A.66, subdivision 3, by adding a subdivision; 297A.665; 297A.668, by adding a subdivision; 297A.67, subdivisions 7, 13, by adding a subdivision; 297A.68, subdivisions 2, 5, 42, by adding a subdivision; 297A.70, subdivisions 2, 4, 5, 7, 13, 14, by adding subdivisions; 297A.71, by adding subdivisions; 297A.75,
subdivisions 1, 2, 3; 297A.82, subdivision 4, by adding a subdivision; 297A.99, subdivision 1; 297B.11; 297E.021, subdivision 3; 297E.14, subdivision 7; 297F.01, subdivisions 3, 19, 23, by adding subdivisions; 297F.05, subdivisions 1, 3, 4, by adding subdivisions; 297F.09, subdivision 9; 297F.18, subdivision 7; 297F.24, subdivision 1; 297F.25, subdivision 1; 297G.04, subdivision 2; 297G.09, subdivision 8; 297G.17, subdivision 7; 297I.05, subdivisions 7, 11, 12; 297I.30, subdivisions 1, 2; 297I.80, subdivision 1; 298.01, subdivisions 3, 3b; 298.018; 298.17; 298.227, as amended; 298.24, subdivision 1; 298.28, subdivisions 4, 6, 9c, 10; 325D.32, subdivision 2; 325F.781, subdivision 1; 349.166, subdivision 1; 353G.08, subdivision 2; 360.531; 360.66; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01, subdivision 23; 368.47; 370.01; 373.01, subdivisions 1, 3; 373.40, subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18, subdivision 3; 375.555; 383A.80, subdivision 4; 383B.152; 383B.245; 383B.73, subdivision 1; 383B.80, subdivision 4; 383D.41, by adding a subdivision; 383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05, subdivision 3; 403.02, subdivision 21, by adding subdivisions; 403.06, subdivision 1a; 403.11, subdivision 1, by adding subdivisions; 410.32; 412.221, subdivision 2; 412.301; 428A.02, subdivision 1; 428A.101; 428A.21; 430.102, subdivision 2; 447.10; 450.19; 450.25; 458A.10; 458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034, subdivision 2; 469.053, subdivisions 4, 4a, 6; 469.071, subdivision 5; 469.107, subdivision 1; 469.169, by adding a subdivision; 469.176, subdivisions 4c, 4g, 6; 469.177, subdivisions 1a, 9, by adding subdivisions; 469.180, subdivision 2; 469.187; 469.206; 469.319, subdivision 4; 469.340, subdivision 4; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325, subdivision 2; 473.39, by adding a subdivision; 473.606, subdivision 3; 473.629; 473.661, subdivision 3; 473.667, subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, 14, 15, 23; 473F.08, subdivisions 3a, 10, by adding a subdivision; 474A.04, subdivision 1a; 474A.062; 474A.091, subdivision 3a; 475.521, subdivisions 1, 2, 4; 475.53, subdivisions 1, 3, 4; 475.58, subdivisions 2, 3b; 475.73, subdivision 1; 477A.011, subdivisions 20, 30, 34, 42, by adding subdivisions; 477A.0124, subdivision 2; 477A.013, subdivisions 1, 8, 9, by adding a subdivision; 477A.015; 477A.03, subdivisions 2a, 2b, by adding a subdivision; 477A.11, subdivisions 3, 4, by adding subdivisions; 477A.12, subdivisions 1, 2, 3; 477A.14, subdivision 1, by adding a subdivision; 641.23; 641.24; 645.44, by adding a subdivision; Laws 1971, chapter 773, section 1, subdivision 2, as amended; Laws 1988, chapter 645, section 3, as amended; Laws 1993, chapter 375, article 9, section 46, subdivisions 2, as amended, 5, as amended; Laws 1998, chapter 389, article 8, section 43, subdivisions 1, 3, as amended, 5, as amended; Laws 1999, chapter 243, article 6, section 11; Laws 2002, chapter 377, article 3, section 25, as amended; Laws 2005, First Special Session chapter 3, article 5, section 37, subdivisions 2, 4; Laws 2006, chapter 259, article 11, section 3, as amended; Laws 2008, chapter 366, article 5, sections 26; 33; 34, as amended; article 7, section 19, subdivision 3, as amended; Laws 2009, chapter 88, article 2, section 46, subdivisions 1, 3; Laws 2010, chapter 216, sections 11; 55; Laws 2010, chapter 389, article 1, section 12; article 5, section 6, subdivision 6; proposing coding for new law in Minnesota Statutes, chapters 116J; 116V; 124D; 136A; 270C; 287; 290A; 292; 403; 423A; 469; 477A; repealing Minnesota Statutes 2012, sections 16A.725; 97A.061; 256.9658; 272.69; 273.11, subdivisions 1a, 22; 276A.01, subdivision 11; 289A.60, subdivision 31; 290.01, subdivision 6b; 290.06, subdivision 22a; 290.0921, subdivision 7; 290.171; 290.173; 290.174; 297A.61, subdivision 27; 297A.68, subdivision 35; 473F.02, subdivision 13; 477A.011, subdivisions 2a, 19, 21, 29, 31, 32, 33, 36, 39, 40, 41; 477A.013, subdivisions 11, 12; 477A.0133; 477A.0134; Laws 1973, chapter 567, section 7, as amended; Laws 2009, chapter 88, article 4, section 23, as amended."
We request the adoption of this report and repassage of the bill.
House Conferees: Ann Lenczewski, Jim Davnie, Tom Anzelc, John Benson and Kim Norton.
Senate Conferees: Rod Skoe, Ann H. Rest, Kari Dziedzic, Lyle Koenen and David H. Senjem.
Lenczewski moved that the report of the
Conference Committee on H. F. No. 677 be adopted and that the
bill be repassed as amended by the Conference Committee.
A roll call was requested and properly
seconded.
The question was taken on the Lenczewski motion and the
roll was called. There were 69 yeas and
65 nays as follows:
Those who voted in the affirmative were:
Allen
Anzelc
Atkins
Benson, J.
Bernardy
Bly
Brynaert
Carlson
Clark
Davnie
Dehn, R.
Dill
Dorholt
Erickson, R.
Falk
Faust
Fischer
Freiberg
Fritz
Hansen
Hausman
Hilstrom
Hornstein
Hortman
Huntley
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
McNamar
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Paymar
Pelowski
Persell
Poppe
Radinovich
Savick
Sawatzky
Schoen
Simon
Simonson
Slocum
Sundin
Wagenius
Ward, J.A.
Ward, J.E.
Winkler
Yarusso
Spk. Thissen
Those who voted in the negative were:
Abeler
Albright
Anderson, M.
Anderson, P.
Anderson, S.
Barrett
Beard
Benson, M.
Cornish
Daudt
Davids
Dean, M.
Dettmer
Drazkowski
Erhardt
Erickson, S.
Fabian
FitzSimmons
Franson
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hertaus
Holberg
Hoppe
Howe
Johnson, B.
Kelly
Kieffer
Kiel
Kresha
Leidiger
Lohmer
Loon
Mack
McDonald
McNamara
Myhra
Newberger
Nornes
O'Driscoll
O'Neill
Peppin
Petersburg
Pugh
Quam
Rosenthal
Runbeck
Sanders
Schomacker
Scott
Selcer
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Wills
Woodard
Zellers
Zerwas
The
motion prevailed.
Pursuant to rule 1.50, Murphy, E., moved
that the House be allowed to continue in session after 12:00 midnight.
A roll call was requested and properly
seconded.
The question was taken on the Murphy, E.,
motion and the roll was called. There
were 101 yeas and 31 nays as follows:
Those who voted in the affirmative were:
Albright
Allen
Anderson, P.
Anderson, S.
Anzelc
Atkins
Benson, J.
Benson, M.
Bernardy
Bly
Brynaert
Carlson
Clark
Daudt
Davnie
Dean, M.
Dehn, R.
Dettmer
Dorholt
Drazkowski
Erickson, R.
Erickson, S.
Fabian
Falk
Faust
Fischer
Franson
Freiberg
Fritz
Garofalo
Green
Halverson
Hansen
Hausman
Hilstrom
Holberg
Hornstein
Hortman
Howe
Huntley
Isaacson
Johnson, C.
Johnson, S.
Kahn
Kelly
Kieffer
Laine
Leidiger
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Mack
Mahoney
Mariani
Marquart
Masin
McNamar
McNamara
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Myhra
Nelson
Newberger
Newton
Norton
Paymar
Pelowski
Persell
Poppe
Pugh
Quam
Radinovich
Rosenthal
Runbeck
Sanders
Savick
Sawatzky
Schoen
Selcer
Simon
Simonson
Slocum
Sundin
Theis
Wagenius
Ward, J.E.
Wills
Winkler
Woodard
Yarusso
Zellers
Zerwas
Spk. Thissen
Those who voted in the negative were:
Abeler
Anderson, M.
Barrett
Beard
Davids
Dill
Erhardt
FitzSimmons
Gruenhagen
Gunther
Hackbarth
Hamilton
Hertaus
Hoppe
Johnson, B.
Kiel
Kresha
Lohmer
Loon
McDonald
Nornes
O'Driscoll
O'Neill
Peppin
Petersburg
Schomacker
Scott
Swedzinski
Torkelson
Uglem
Urdahl
The
motion prevailed.
H. F. No. 677, A bill for an act relating to financing of state and local government; making changes to individual income, corporate franchise, property, sales and use, estate, mineral, liquor, tobacco, aggregate materials, local, and other taxes and tax-related provisions; restoring the school district current year aid payment shift percentage to 90; conforming to federal section 179 expensing allowances; imposing an income surcharge; allowing an up-front exemption for capital equipment; modifying the definition of income for the property tax refund; decreasing the threshold percentage for the homestead credit refund for homeowners and the property tax refund for renters; increasing the maximum refunds for renters; changing property tax aids and credits; imposing an insurance surcharge; modifying pension aids; providing pension funding; changing provisions of the Sustainable Forest Incentive Act; modifying definitions for property taxes; providing exemptions; creating joint entertainment facilities coordination; imposing a sports memorabilia gross receipts tax; changing tax rates on tobacco and liquor; providing reimbursement for certain property tax abatement; modifying the small business investment tax credit; expanding the definition of domestic corporation to include foreign corporations incorporated in or doing business in tax havens; making changes to additions and subtractions from federal taxable income; changing rates for individuals, estates, and trusts; providing for charitable contributions and veterans jobs tax credits; modifying estate tax exclusions for qualifying small business and farm property; imposing a gift tax; expanding the sales tax to include suite and box seat rentals; modifying the definition of sales and purchase; changing the tax rate and modifying provisions for the rental motor vehicle tax; modifying nexus provisions; providing for multiple points of use certificates; modifying exemptions; authorizing local sales taxes; authorizing economic development powers; providing authority, organization, powers, and duties for development of a Destination Medical Center; authorizing state infrastructure aid; imposing a tax on extraction and processing of fracturing sand; providing a taconite production tax grant for water supply improvements; authorizing taconite production tax bonds for grants to school districts; modifying and providing provisions for public finance; modifying the definition of market value for tax, debt, and other purposes; requiring labor peace agreements on certain qualifying projects; making conforming, policy, and technical changes to tax provisions; requiring studies and reports; appropriating money; amending Minnesota Statutes 2012, sections 16A.152, subdivision 2; 16A.46; 38.18; 40A.15, subdivision 2; 69.011, subdivision 1; 69.021, subdivisions 7, 8, by adding a subdivision; 88.51, subdivision 3; 103B.102, subdivision 3; 103B.245, subdivision 3; 103B.251, subdivision 8; 103B.335; 103B.3369, subdivision 5; 103B.635, subdivision 2; 103B.691, subdivision 2; 103C.501, subdivision 4; 103D.905, subdivisions 2, 3, 8; 103F.405, subdivision 1; 116J.8737, subdivisions 1, 2, 8; 117.025, subdivision 7; 118A.04, subdivision 3; 118A.05, subdivision 5; 123A.455, subdivision 1; 123B.75, subdivision 5; 126C.48, subdivision 8; 127A.45, subdivision 2; 127A.48, subdivision 1; 138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, subdivision 3; 163.051; 163.06, subdivision 6; 165.10, subdivision 1; 168.012, subdivision 9, by adding a subdivision; 216C.436, subdivision 7; 237.52, subdivision 3, by adding a subdivision; 270.077; 270.41, subdivision 5; 270B.01, subdivision 8; 270B.12,
subdivision 4; 270C.34, subdivision 1; 270C.38, subdivision 1; 270C.42, subdivision 2; 270C.56, subdivision 1; 271.06, by adding a subdivision; 272.01, subdivision 2; 272.02, subdivisions 39, 97, by adding subdivisions; 272.03, subdivision 9, by adding subdivisions; 273.032; 273.11, subdivision 1, by adding a subdivision; 273.114, subdivision 6; 273.124, subdivisions 3a, 13; 273.13, subdivisions 21b, 23, 25; 273.1398, subdivisions 3, 4; 273.19, subdivision 1; 273.372, subdivision 4; 273.39; 275.011, subdivision 1; 275.077, subdivision 2; 275.71, subdivision 4; 276.04, subdivision 2; 276A.01, subdivisions 10, 12, 13, 15; 276A.06, subdivision 10; 279.01, subdivision 1, by adding a subdivision; 279.02; 279.06, subdivision 1; 287.05, by adding a subdivision; 287.08; 287.20, by adding a subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.02, subdivision 7; 289A.08, subdivisions 1, 3, 7; 289A.10, subdivision 1, by adding a subdivision; 289A.12, subdivision 14, by adding a subdivision; 289A.18, by adding a subdivision; 289A.20, subdivisions 3, 4, by adding a subdivision; 289A.26, subdivisions 3, 4, 7, 9; 289A.55, subdivision 9; 289A.60, subdivision 4; 290.01, subdivisions 5, 19, as amended, 19a, 19b, 19c, 19d, 31, as amended, by adding subdivisions; 290.06, subdivisions 2c, 2d, by adding subdivisions; 290.067, subdivisions 1, 2a; 290.0671, subdivision 1; 290.0675, subdivision 1; 290.0677, subdivision 2; 290.068, subdivisions 3, 6a; 290.0681, subdivisions 1, 3, 4, 5; 290.091, subdivision 2; 290.0921, subdivision 3; 290.0922, subdivision 1; 290.17, subdivision 4; 290.21, subdivision 4; 290.9705, subdivision 1; 290A.03, subdivisions 3, 15, as amended; 290A.04, subdivisions 2, 2a, 4; 290B.04, subdivision 2; 290C.02, subdivision 6; 290C.05; 290C.07; 291.005, subdivision 1; 291.03, subdivisions 1, 8, 9, 10, 11, by adding a subdivision; 296A.01, subdivision 19, by adding a subdivision; 296A.22, subdivisions 1, 3; 297A.61, subdivisions 3, 4, by adding a subdivision; 297A.64, subdivisions 1, 2; 297A.66, by adding a subdivision; 297A.665; 297A.668, by adding a subdivision; 297A.67, subdivision 7; 297A.68, subdivision 5; 297A.70, subdivisions 4, 8, by adding subdivisions; 297A.71, by adding subdivisions; 297A.75, subdivisions 1, 2, 3; 297A.815, subdivision 3; 297A.993, subdivisions 1, 2; 297B.11; 297E.021, subdivision 2; 297E.14, subdivision 7; 297F.01, subdivisions 3, 19, 23, by adding a subdivision; 297F.05, subdivisions 1, 3, 4, by adding a subdivision; 297F.09, subdivision 9; 297F.18, subdivision 7; 297F.24, subdivision 1; 297F.25, subdivision 1; 297G.03, subdivision 1, by adding a subdivision; 297G.04; 297G.09, subdivision 8; 297G.17, subdivision 7; 297I.05, subdivisions 7, 11, 12; 297I.30, subdivisions 1, 2; 297I.80, subdivision 1; 298.01, subdivisions 3, 3b, 4; 298.018; 298.227, as amended; 298.24, subdivision 1; 298.28, subdivisions 4, 6, 10; 298.75, subdivision 2; 325D.32, subdivision 2; 353G.08, subdivision 2; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01, subdivision 23; 368.47; 370.01; 373.01, subdivisions 1, 3; 373.40, subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18, subdivision 3; 375.555; 383B.152; 383B.245; 383B.73, subdivision 1; 383D.41, by adding a subdivision; 383E.20; 383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05, subdivision 3; 403.02, subdivision 21, by adding subdivisions; 403.06, subdivision 1a; 403.11, subdivision 1, by adding a subdivision; 410.32; 412.221, subdivision 2; 412.301; 428A.02, subdivision 1; 430.102, subdivision 2; 447.10; 450.19; 450.25; 458A.10; 458A.31, subdivision 1; 465.04; 469.033, subdivision 6; 469.034, subdivision 2; 469.053, subdivisions 4, 4a, 6; 469.071, subdivision 5; 469.107, subdivision 1; 469.169, by adding a subdivision; 469.176, subdivisions 4c, 4g, 6; 469.177, by adding a subdivision; 469.180, subdivision 2; 469.187; 469.190, subdivision 7, by adding a subdivision; 469.206; 469.319, subdivision 4; 469.340, subdivision 4; 471.24; 471.571, subdivisions 1, 2; 471.73; 473.325, subdivision 2; 473.39, by adding a subdivision; 473.629; 473.661, subdivision 3; 473.667, subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, 14, 15, 23; 473F.08, subdivision 10, by adding a subdivision; 474A.04, subdivision 1a; 474A.062; 474A.091, subdivision 3a; 475.521, subdivisions 1, 2, 4; 475.53, subdivisions 1, 3, 4; 475.58, subdivisions 2, 3b; 475.73, subdivision 1; 477A.011, subdivisions 20, 30, 32, 34, 42, by adding subdivisions; 477A.0124, subdivision 2; 477A.013, subdivisions 8, 9, by adding a subdivision; 477A.015; 477A.03, subdivisions 2a, 2b, by adding a subdivision; 641.23; 641.24; 645.44, by adding a subdivision; Laws 1971, chapter 773, section 1, subdivision 2, as amended; Laws 1988, chapter 645, section 3, as amended; Laws 1993, chapter 375, article 9, section 46, subdivisions 2, as amended, 5, as amended; Laws 1998, chapter 389, article 8, section 43, subdivisions 1, 3, as amended, 5, as amended; Laws 1999, chapter 243, article 6, section 11; Laws 2002, chapter 377, article 3, section 25, as amended; Laws 2005, First Special Session chapter 3, article 5, section 37, subdivisions 2, 4; Laws 2008, chapter 366, article 5, sections 26; 33; 34, as amended; article 7, section 19, subdivision 3, as amended; Laws 2010, chapter 216, section 55; Laws 2010, chapter 389, article 1, section 12; article 5, section 6, subdivisions 4, 6; Laws 2010, First Special Session chapter 1, article 13, section 4, subdivision 1, as amended; proposing coding for new law in Minnesota Statutes, chapters 116C; 287; 290; 290A; 292; 295; 297I; 403; 435; 469; proposing coding for new law as Minnesota Statutes, chapter 297J; repealing Minnesota Statutes 2012, sections 16A.725; 256.9658; 272.69; 273.11, subdivisions 1a, 22; 276A.01, subdivision 11; 289A.60, subdivision 31; 290.01, subdivision 6b; 290.06, subdivision 22a; 290.0672; 290.0921, subdivision 7; 383A.80, subdivision 4; 383B.80,
subdivision 4; 428A.101; 428A.21; 473F.02, subdivision 13; 477A.011, subdivisions 2a, 19, 21, 29, 31, 32, 33, 36, 39, 40, 41, 42; 477A.013, subdivisions 11, 12; 477A.0133; 477A.0134; Laws 2006, chapter 259, article 11, section 3, as amended; Laws 2009, chapter 88, article 4, section 23, as amended.
The bill was read for the third time, as
amended by Conference, and placed upon its repassage.
The question was taken on the repassage of
the bill and the roll was called. There
were 69 yeas and 65 nays as follows:
Those who voted in the affirmative were:
Allen
Anzelc
Atkins
Benson, J.
Bernardy
Bly
Brynaert
Carlson
Clark
Davnie
Dehn, R.
Dill
Dorholt
Erickson, R.
Falk
Faust
Fischer
Freiberg
Fritz
Hansen
Hausman
Hilstrom
Hornstein
Hortman
Huntley
Isaacson
Johnson, C.
Johnson, S.
Kahn
Laine
Lenczewski
Lesch
Liebling
Lien
Lillie
Loeffler
Mahoney
Mariani
Marquart
Masin
McNamar
Melin
Metsa
Moran
Morgan
Mullery
Murphy, E.
Murphy, M.
Nelson
Newton
Norton
Paymar
Pelowski
Persell
Poppe
Radinovich
Savick
Sawatzky
Schoen
Simon
Simonson
Slocum
Sundin
Wagenius
Ward, J.A.
Ward, J.E.
Winkler
Yarusso
Spk. Thissen
Those who voted in the negative were:
Abeler
Albright
Anderson, M.
Anderson, P.
Anderson, S.
Barrett
Beard
Benson, M.
Cornish
Daudt
Davids
Dean, M.
Dettmer
Drazkowski
Erhardt
Erickson, S.
Fabian
FitzSimmons
Franson
Garofalo
Green
Gruenhagen
Gunther
Hackbarth
Halverson
Hamilton
Hertaus
Holberg
Hoppe
Howe
Johnson, B.
Kelly
Kieffer
Kiel
Kresha
Leidiger
Lohmer
Loon
Mack
McDonald
McNamara
Myhra
Newberger
Nornes
O'Driscoll
O'Neill
Peppin
Petersburg
Pugh
Quam
Rosenthal
Runbeck
Sanders
Schomacker
Scott
Selcer
Swedzinski
Theis
Torkelson
Uglem
Urdahl
Wills
Woodard
Zellers
Zerwas
The bill was repassed, as amended by
Conference, and its title agreed to.
The
Speaker resumed the Chair.
Murphy, E., moved that the House recess
subject to the call of the Chair. The
motion prevailed.
RECESS
RECONVENED
The House reconvened and was called to
order by the Speaker.
MOTIONS AND RESOLUTIONS
Lesch moved that the name of Loeffler be
added as an author on H. F. No. 1853. The motion prevailed.
ADJOURNMENT
Murphy, E., moved that when the House
adjourns today it adjourn until 11:00 a.m., Monday, May 20, 2013. The motion prevailed.
Murphy, E., moved that the House
adjourn. The motion prevailed, and the
Speaker declared the House stands adjourned until 11:00 a.m., Monday, May 20,
2013.
Albin
A. Mathiowetz,
Chief Clerk, House of Representatives