Journal of the House - 23rd Day - Thursday, March 5, 2015

A quorum was present.

Runbeck was excused.

Urdahl was excused until 7:00 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.

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REPORTS OF CHIEF CLERK

S. F. No. 578 and H. F. No. 383, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Hortman moved that S. F. No. 578 be substituted for H. F. No. 383 and that the House File be indefinitely postponed. The motion prevailed.

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Schomacker from the Committee on Aging and Long-Term Care Policy to which was referred:

H. F. No. 162, A bill for an act relating to human services; providing payment rate increases for certain nursing facilities; amending Minnesota Statutes 2014, section 256B.434, by adding a subdivision.

Reported the same back with the following amendments:

Page 1, line 9, delete "three" and insert "four"

Page 1, line 10, after the third comma, insert "one licensed for 40 beds,"

Page 1, line 13, delete the third "one" and insert "two" and delete "facility" and insert "facilities"

Page 1, line 14, after the first comma, insert "one" and after "beds" insert "and one licensed for 37 beds"

Page 2, line 1, delete "eight" and insert "ten"

With the recommendation that when so amended the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Schomacker from the Committee on Aging and Long-Term Care Policy to which was referred:

H. F. No. 173, A bill for an act relating to human services; modifying nursing facility operating payment rates for certain facilities; amending Minnesota Statutes 2014, section 256B.431, by adding a subdivision.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

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Schomacker from the Committee on Aging and Long-Term Care Policy to which was referred:

H. F. No. 190, A bill for an act relating to human services; specifying the operating rate for a certain facility; amending Minnesota Statutes 2014, section 256B.441, by adding a subdivision.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Schomacker from the Committee on Aging and Long-Term Care Policy to which was referred:

H. F. No. 232, A bill for an act relating to human services; providing a nursing facility operating payment rate increase for certain facilities; amending Minnesota Statutes 2014, section 256B.441, by adding a subdivision.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Erickson from the Committee on Education Innovation Policy to which was referred:

H. F. No. 246, A bill for an act relating to education; reaffirming the importance of teacher mentorship programs; appropriating money; amending Minnesota Statutes 2014, sections 122A.40, subdivision 8; 122A.41, subdivision 5; 122A.60, subdivision 1a; 122A.61, subdivision 1; 122A.70.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Education Finance.

The report was adopted.

Hoppe from the Committee on Commerce and Regulatory Reform to which was referred:

H. F. No. 328, A bill for an act relating to securities regulation; providing an exemption from regulation for crowdfunding transactions; proposing coding for new law in Minnesota Statutes, chapter 80A.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [80A.461] MNVEST REGISTRATION EXEMPTION.

Subdivision 1. Definitions. (a) For purposes of this section, the terms defined in paragraphs (b) through (e) have the meanings given them.

(b) "MNvest issuer" means an entity organized under the laws of Minnesota, other than a general partnership, that satisfies the requirements of Code of Federal Regulations, title 17, part 230.147, and the following requirements:

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(1) the principal office of the entity is located in Minnesota;

(2) as of the last day of the most recent semiannual fiscal period of the entity, at least 80 percent, or other threshold permitted by Code of Federal Regulations, title 17, part 230.147, of the entity's assets were located in Minnesota;

(3) except in the case of an entity whose gross revenue during the most recent period of 12 full months did not exceed $5,000, the entity derived at least 80 percent, or other threshold permitted by Code of Federal Regulations, title 17, part 230.147, of the entity's gross revenues from the operation of a business in Minnesota during (i) the previous fiscal year, if the MNvest offering begins during the first six months of the entity's fiscal year; or (ii) during the 12 months ending on the last day of the sixth month of the entity's current fiscal year, if the MNvest offering begins following the last day;

(4) the entity does not attempt to limit its liability, or the liability of any other person, for fraud or intentional misrepresentation in connection with the offering of its securities in a MNvest offering; and

(5) the entity is not:

(i) engaged in the business of investing, reinvesting, owning, holding, or trading in securities, except that the entity may hold securities of one class in an entity that is not itself engaged in the business of investing, reinvesting, owning, holding, or trading in securities; or

(ii) subject to the reporting requirements of the Securities and Exchange Act of 1934, section 13 or section 15(d), United States Code, title 15, section 78m and section 78o(d).

(c) "MNvest offering" means an offer, or an offer and sale, of securities by a MNvest issuer that: (1) is conducted exclusively through a MNvest portal and (2) satisfies the requirements of this section and other requirements the administrator imposes by rule.

(d) "MNvest portal" means an Internet Web site that is operated by a portal operator for the offer or sale of MNvest offerings under this section or registered securities under section 80A.50, paragraph (b), and satisfies the requirements of subdivision 6.

(e) "Portal operator" means an entity, including an issuer, that:

(1) is authorized to do business in Minnesota;

(2) is a broker-dealer registered under this chapter or otherwise registers with the administrator as a portal operator in accordance with subdivision 7, paragraph (a), and is therefore excluded from broker-dealer registration; and

(3) satisfies such other conditions as the administrator may determine.

Subd. 2. Generally. The offer, sale, and issuance of securities in a MNvest offering is exempt from the requirements of sections 80A.49 to 80A.54, except 80A.50, paragraph (a), clause (3), and 80A.71, if the issuer meets the qualifications under this section.

Subd. 3. MNvest offering. (a) A MNvest offering must satisfy the following requirements:

(1) the issuer must be a MNvest issuer on the date that its securities are first offered for sale in the offering and continuously through the closing of the offering;

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(2) the offering must meet the requirements of the federal exemption for intrastate offerings in section 3(a)(11) of the Securities Act of 1933, United States Code, title 15, section 77c (a)(11), and Rule 147 adopted under the Securities Act of 1933, Code of Federal Regulations, title 17, part 230.147;

(3) the sale of securities must be conducted exclusively through a MNvest portal;

(4) the MNvest issuer shall require the portal operator to provide or make available to prospective purchasers through the MNvest portal a copy of the MNvest issuer's balance sheet and income statement for the MNvest issuer's most recent fiscal year, if the issuer was in existence. For offerings beginning more than 90 days after the issuer's most recent fiscal year end, or if the MNvest issuer was not in existence the previous calendar year, the MNvest issuer must provide or make available a balance sheet as of a date not more than 90 days before the commencement of the MNvest offering for the MNvest issuer's most recently completed fiscal year, or such shorter portion the MNvest issuer was in existence during that period, and the year-to-date period, or inception-to-date period, if shorter, corresponding with the more recent balance sheet required by this clause;

(5) in any 12-month period, the MNvest issuer shall not raise more than the aggregate amounts set forth in item (i) or (ii), either in cash or other consideration, in connection with one or more MNvest offerings:

(i) $5,000,000 if the financial statements described in clause (4) have been (1) audited by a public accountant who is independent of the MNvest issuer using auditing standards issued by either the American Institute of Certified Public Accountants or the Public Company Oversight Board, or (2) reviewed by a public accountant who is independent of the MNvest issuer using the Statements on Standards for Accounting and Review Services issued by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants; or

(ii) $2,000,000 if the financial statements described in clause (4) have not been audited or reviewed as described in item (i);

(6) the MNvest issuer must use at least 80 percent of the net proceeds of the offering in connection with the operation of its business within Minnesota;

(7) no single purchaser may purchase more than $10,000 in securities of the MNvest issuer under this exemption in connection with a single MNvest offering unless the purchaser is an accredited investor;

(8) all payments for the purchase of securities must be held in escrow until the aggregate capital deposited into escrow from all purchasers is equal to or greater than the stated minimum offering amount. Purchasers will receive a return of all their subscription funds if the minimum offering amount is not raised by the stipulated expiration date required in subdivision 4, clause (2). The escrow agent must be a bank, regulated trust company, savings bank, savings association, or credit union authorized to do business in Minnesota. Prior to the execution of the escrow agreement between the issuer and the escrow agent, the escrow agent must conduct searches of the issuer, its executive officers, directors, governors, and managers against the Specially Designated Nationals list maintained by the Office of Foreign Assets Control. The escrow agent is only responsible to act at the direction of the party establishing the escrow account and does not have a duty or liability, contractual or otherwise, to an investor or other person except as set forth in the applicable escrow agreement or other contract;

(9) the MNvest issuer shall require the portal operator to make available to the prospective purchaser through the MNvest portal a disclosure document that meets the requirements set forth in subdivision 4;

(10) before selling securities to a prospective purchaser on a MNvest portal, the MNvest issuer shall require the portal operator to obtain from the prospective purchaser the certification required under subdivision 5;

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(11) not less than ten days before the beginning of an offering of securities in reliance on the exemption under this section, the MNvest issuer shall provide the following to the administrator:

(i) a notice of claim of exemption from registration, specifying that the MNvest issuer will be conducting an offering in reliance on the exemption under this section;

(ii) a copy of the disclosure document to be provided to prospective purchasers in connection with the offering, as described in subdivision 4; and

(iii) a filing fee of $300; and

(12) the MNvest issuer and the portal operator may engage in solicitation and advertising of the MNvest offering provided that:

(i) the advertisement contains disclaiming language which clearly states:

(A) the advertisement is not the offer and is for informational purposes only;

(B) the offering is being made in reliance on the exemption under this section;

(D) all offers and sales are made through a MNvest portal; and

(E) the Department of Commerce is the securities regulator in Minnesota;

(ii) along with the disclosures required under item (i), the advertisement may contain no more than the following information:

(A) the name and contact information of the MNvest issuer;

(B) a brief description of the general type of business of the MNvest issuer;

(D) a description of how the issuer will use the funds raised through the MNvest offering;

(E) the duration that the MNvest offering will remain open;

(F) the MNvest issuer's logo; and

(G) a link to the MNvest issuer's Web site and the MNvest portal in which the MNvest offering is being made;

(iii) the advertisement complies with all applicable state and federal laws.

Subd. 4. Required disclosures to prospective MNvest offering purchasers. The MNvest issuer shall require the portal operator to make available to the prospective purchaser through the MNvest portal a printable or downloadable disclosure document containing the following:

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(1) the MNvest issuer's type of entity, the address and telephone number of its principal office, its formation history for the previous five years, a summary of the material facts of its business plan and its capital structure, and its intended use of the offering proceeds, including any amounts to be paid from the proceeds of the MNvest offering, as compensation or otherwise, to an owner, executive officer, director, governor, manager, member, or other person occupying a similar status or performing similar functions on behalf of the MNvest issuer;

(2) the MNvest offering must stipulate the date on which the offering will expire, which must not be longer than 12 months from the date the MNvest offering commenced;

(3) a copy of the escrow agreement between the escrow agent, the MNvest issuer, and, if applicable, the portal operator, as described in subdivision 3, clause (8);

(4) the financial statements required under subdivision 3, clause (4);

(5) the identity of all persons owning more than ten percent of any class of equity interests in the company;

(6) the identity of the executive officers, directors, governors, managers, members, and other persons occupying a similar status or performing similar functions in the name of and on the behalf of the MNvest issuer, including their titles and their relevant experience;

(7) the terms and conditions of the securities being offered, a description of investor exit strategies, and of any outstanding securities of the MNvest issuer; the minimum and maximum amount of securities being offered; either the percentage economic ownership of the MNvest issuer represented by the offered securities, assuming the minimum and, if applicable, maximum number of securities being offered is sold, or the valuation of the MNvest issuer implied by the price of the offered securities; the price per share, unit, or interest of the securities being offered; any restrictions on transfer of the securities being offered; and a disclosure that any future issuance of securities might dilute the value of securities being offered;

(8) the identity of and consideration payable to a person who has been or will be retained by the MNvest issuer to assist the MNvest issuer in conducting the offering and sale of the securities, including a portal operator, but excluding (i) persons acting primarily as accountants or attorneys, and (ii) employees whose primary job responsibilities involve operating the business of the MNvest issuer rather than assisting the MNvest issuer in raising capital;

(9) a description of any pending material litigation, legal proceedings, or regulatory action involving the MNvest issuer or any executive officers, directors, governors, managers, members, and other persons occupying a similar status or performing similar functions in the name of and on behalf of the MNvest issuer;

(10) a statement of the material risks unique to the MNvest issuer and its business plans;

(11) a statement that the securities have not been registered under federal or state securities law and that the securities are subject to limitations on resale; and

(12) the following legend must be displayed conspicuously in the disclosure document:

"IN MAKING AN INVESTMENT DECISION, PURCHASERS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR DIVISION OR OTHER REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR

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RESOLD EXCEPT AS PERMITTED BY SUBSECTION (e) OF SEC RULE 147 (CODE OF FEDERAL REGULATIONS, TITLE 17, PART 230.147 (e)) AS PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. PURCHASERS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME."

Subd. 5. Required certification from MNvest offering purchasers. Before selling securities to a prospective purchaser through a MNvest portal, the MNvest issuer shall require the portal operator to obtain from the prospective purchaser through the applicable MNvest portal a written or electronic certification that includes, at a minimum, the following statements:

"I UNDERSTAND AND ACKNOWLEDGE THAT:

If I make an investment in an offering through this MNvest portal, it is very likely that I am investing in a high-risk, speculative business venture that could result in the complete loss of my investment, and I need to be able to afford such a loss.

This offering has not been reviewed or approved by any state or federal securities commission or division or other regulatory authority and that no such person or authority has confirmed the accuracy or determined the adequacy of any disclosure made to me relating to this offering.

If I make an investment in an offering through this MNvest portal, it is very likely that the investment will be difficult to transfer or sell and, accordingly, I may be required to hold the investment indefinitely.

By entering into this transaction with the company, I am affirmatively representing myself as being a Minnesota resident at the time that this contract is formed, and if this representation is subsequently shown to be false, the contract is void."

Subd. 6. MNvest portal. A MNvest portal must satisfy the requirements of clauses (1) through (4):

(1) the Web site does not contain the word "MNvest" in its URL address;

(2) the Web site implements steps to limit Web site access to the offer or sale of securities to only Minnesota residents when conducting MNvest offerings; and

(3) MNvest offerings may not be viewed on the MNvest portal by a prospective purchaser until:

(i) the portal operator verifies, through its exercise of reasonable steps, such as using a third-party verification service or as otherwise approved by the administrator, that the prospective purchaser is a Minnesota resident; and

(ii) the prospective purchaser makes an affirmative acknowledgment, electronically through the MNvest portal, that:

(A) I am a Minnesota resident;

(B) the securities and investment opportunities listed on this Web site involve high-risk, speculative business ventures. If I choose to invest in any securities or investment opportunity listed on this Web site, I may lose all of my investment, and I can afford such a loss;

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(C) the securities and investment opportunities listed on this Web site have not been reviewed or approved by any state or federal securities commission or division or other regulatory authority, and no such person or authority, including this Web site, has confirmed the accuracy or determined the adequacy of any disclosure made to prospective investors relating to any offering; and

(D) if I choose to invest in any securities or investment opportunity listed on this Web site, I understand that the securities I will acquire may be difficult to transfer or sell, that there is no ready market for the sale of such securities, that it may be difficult or impossible for me to sell or otherwise dispose of this investment at any price, and that, accordingly, I may be required to hold this investment indefinitely; and

(4) the Web site complies with all other rules adopted by the administrator.

Subd. 7. Portal operator. (a) An entity, other than a registered broker-dealer, wishing to become a portal operator shall file with the administrator:

(1) form ....... [to be approved by the administrator], including all applicable schedules and supplemental information;

(2) a copy of the articles of incorporation or other documents that indicate the entity's form of organization; and

(3) a filing fee of $200.

(b) A portal operator's registration expires 12 months from the date the administrator has approved the entity as a portal operator, and subsequent registration for the succeeding 12-month period shall be issued upon written application and upon payment of a renewal fee of $200, without filing of further statements or furnishing any further information, unless specifically requested by the administrator. This section is not applicable to a registered broker‑dealer functioning as a portal operator.

(1) offer investment advice or recommendations, provided that a portal operator shall not be deemed to be offering investment advice or recommendations merely because it (i) selects, or may perform due diligence with respect to, issuers or offerings to be listed, or (ii) provides general investor educational materials;

(2) provide transaction-based compensation for securities sold under this chapter to employees, agents, or other persons unless the employees, agents, or other persons are registered with the administrator and permitted to receive such compensation;

(3) charge a fee to the issuer for an offering of securities on a MNvest portal unless the fee is (i) a fixed amount for each offering, (ii) a variable amount based on the length of time that the securities are offered on the MNvest portal, or (iii) a combination of such fixed and variable amounts; or

(4) hold, manage, possess, or otherwise handle purchaser funds or securities. This restriction does not apply if the issuer is the portal operator.

(d) A portal operator shall provide the administrator with read-only access to administrative sections of the MNvest portal.

(e) A portal operator shall comply with the record-keeping requirements of this paragraph, provided that the failure of a portal operator that is not an issuer to maintain records in compliance with this paragraph shall not affect the MNvest issuer's exemption from registration afforded by this section:

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(1) a portal operator shall maintain and preserve, for a period of five years from either the date of the closing or termination of the securities offering, the following records:

(i) the name of each issuer whose securities have been listed on its MNvest portal;

(ii) the full name, residential address, Social Security number, date of birth, and copy of a state-issued identification for all owners with greater than ten percent voting equity in an issuer;

(iii) copies of all offering materials that have been displayed on its MNvest portal;

(iv) the names and other personal information of each purchaser who has registered at its MNvest portal;

(v) any agreements and contracts between the portal operator and the issuer; and

(vi) any information used to establish that a MNvest issuer, prospective MNvest purchaser, or MNvest purchaser is a Minnesota resident;

(2) a portal operator shall, upon written request of the administrator, furnish to the administrator any records required to be maintained and preserved under this subdivision;

(3) the records required to be kept and preserved under this subdivision must be maintained in a manner, including by any electronic storage media, that will permit the immediate location of any particular document so long as such records are available for immediate and complete access by representatives of the administrator. Any electronic storage system must preserve the records exclusively in a nonrewriteable, nonerasable format; verify automatically the quality and accuracy of the storage media recording process; serialize the original and, if applicable, duplicate units storage media, and time-date for the required period of retention the information placed on such electronic storage media; and be able to download indexes and records preserved on electronic storage media to an acceptable medium. In the event that a records retention system commingles records required to be kept under this subdivision with records not required to be kept, representatives of the administrator may review all commingled records; and

(4) a portal operator shall maintain such other records as the administrator shall determine by rule.

Subd. 8. Bad actor disqualification. (a) An exemption under this section is not available for a sale if securities in the MNvest issuer; any predecessor of the MNvest issuer; any affiliated issuer; any director, executive officer, other officer participating in the MNvest offering, general partner, or managing member of the MNvest issuer; any beneficial owner of 20 percent or more of the MNvest issuer's outstanding voting equity securities, calculated on the basis of voting power; any promoter connected with the MNvest issuer in any capacity at the time of the sale; any investment manager of an issuer that is a pooled investment fund; any general partner or managing member of any investment manager; or any director, executive officer, or other officer participating in the offering of any investment manager or general partner or managing member of the investment manager:

(1) has been convicted, within ten years before the offering, or five years, in the case of MNvest issuers, their predecessors, and affiliated issuers, of any felony or misdemeanor:

(i) in connection with the purchase or sale of any security;

(ii) involving the making of any false filing with the Securities and Exchange Commission or a state agency; or

(iii) arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities;

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(2) is subject to any order, judgment, or decree of any court of competent jurisdiction, entered within five years before the sale, that, at the time of the sale, restrains or enjoins the person from engaging or continuing to engage in any conduct or practice:

(i) in connection with the purchase or sale of any security;

(ii) involving the making of any false filing with the Securities and Exchange Commission; or

(iii) arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, or paid solicitor of purchasers of securities;

(3) is subject to a final order of a state securities commission or an agency or officer of a state performing like functions; a state authority that supervises or examines banks, savings associations, or credit unions; a state insurance commission or an agency or officer of a state performing like functions; an appropriate federal banking agency; the United States Commodity Futures Trading Commission; or the National Credit Union Administration that:

(i) at the time of the offering, bars the person from:

(A) association with an entity regulated by the commission, authority, agency, or officer;

(B) engaging in the business of securities, insurance, or banking; or

(ii) constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative, or deceptive conduct entered within ten years before the offering;

(4) is subject to an order of the Securities and Exchange Commission entered pursuant to section 15(b) or 15B(c) of the Securities Exchange Act of 1934, United States Code, title 15, section 78 o(b) or 78o-4(c) or section 203(e) or (f) of the Investment Advisers Act of 1940, United State Code, title 15, section 80b-3(e) or (f) that, at the time of the offering:

(i) suspends or revokes the person's registration as a broker, dealer, municipal securities dealer, or investment adviser;

(ii) places limitations on the activities, functions, or operations of the person; or

(iii) bars the person from being associated with any entity or from participating in the offering of any penny stock;

(5) is subject to any order of the Securities and Exchange Commission entered within five years before the sale that, at the time of the sale, orders the person to cease and desist from committing or causing a violation or future violation of:

(i) any scienter-based antifraud provision of the federal securities laws, including without limitation section 17(a)(1) of the Securities Act of 1933, United States Code, title 15, section 77q(a)(1), section 10(b) of the Securities Exchange Act of 1934, United States Code, title 15, section 78j(b) and Code of Federal Regulations, title 17, section 240.10b-5, section 15(c)(1) of the Securities Exchange Act of 1934, United States Code, title 15, section 78o(c)(1) and section 206(1) of the Investment Advisers Act of 1940, United States Code, title 15, section 80b-6(1), or any other rule or regulation thereunder; or

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(ii) section 5 of the Securities Act of 1933, United States Code, title 15, section 77e;

(6) is suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade;

(7) has filed as a registrant or issuer, or was or was named as an underwriter in, any registrations statement or Regulation A offering statement filed with the Securities and Exchange Commission that, within five years before the sale, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is, at the time of the sale, the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued; or

(8) is subject to a United States Postal Service false representation order entered within five years before the offering, or is, at the time of the offering, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the Unites States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations.

(b) Paragraph (a) does not apply:

(1) with respect to any conviction, order, judgment, decree, suspension, expulsion, or bar that occurred or was issued before September 23, 2013;

(2) upon a showing of good cause and without prejudice to any other action by the Securities and Exchange Commission, if the Securities and Exchange Commission determines that it is not necessary under the circumstances that an exemption be denied;

(3) if, before the relevant offering, the court of regulatory authority that entered the relevant order, judgment, or decree advises in writing, whether contained in the relevant judgment, order, or decree or separately to the Securities and Exchange Commission or its staff, that disqualification under paragraph (a) should not arise as a consequence of the order, judgment, or decree; or

(4) if the MNvest issuer establishes that it did not know and, in the exercise of reasonable care, could not have known that a disqualification existed under paragraph (a).

(c) For purposes of paragraph (a), events relating to any affiliated issuer that occurred before the affiliation arose will not be considered disqualifying if the affiliated entity is not:

(1) in control of the issuer; or

(2) under common control with the issuer by a third party that was in control of the affiliated entity at the time of the events.

EFFECTIVE DATE. This section is effective the day following final enactment."

With the recommendation that when so amended the bill be re-referred to the Committee on Government Operations and Elections Policy.

The report was adopted.

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Erickson from the Committee on Education Innovation Policy to which was referred:

H. F. No. 384, A bill for an act relating to education; making school year-long student teaching programs part of teacher preparation; amending Minnesota Statutes 2014, section 122A.09, subdivision 4.

Reported the same back with the following amendments:

Page 4, after line 17, insert:

"Sec. 2. APPROPRIATION; MNSCU.

$....... is appropriated to the Minnesota State Colleges and Universities Board of Trustees to administer grants for up to two or more universities that develop pilot programs to offer teacher candidates a full school year of student teaching experience at the undergraduate or graduate level."

Amend the title as follows:

Page 1, line 3, after "preparation" insert "; appropriating money"

With the recommendation that when so amended the bill be re-referred to the Committee on Higher Education Policy and Finance.

The report was adopted.

Cornish from the Committee on Public Safety and Crime Prevention Policy and Finance to which was referred:

H. F. No. 484, A bill for an act relating to disaster relief; authorizing state grants to eligible utility cooperatives to match federal disaster assistance; amending Minnesota Statutes 2014, section 12A.15, subdivision 1.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

The report was adopted.

Schomacker from the Committee on Aging and Long-Term Care Policy to which was referred:

H. F. No. 487, A bill for an act relating to human services; providing a nursing facility operating payment rate increase for a facility in Le Sueur County; amending Minnesota Statutes 2014, section 256B.431, by adding a subdivision.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

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Schomacker from the Committee on Aging and Long-Term Care Policy to which was referred:

H. F. No. 515, A bill for an act relating to human services; modifying exceptions for replacement nursing home beds; amending Minnesota Statutes 2014, section 144A.071, subdivision 4a.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Schomacker from the Committee on Aging and Long-Term Care Policy to which was referred:

H. F. No. 553, A bill for an act relating to human services; modifying the operating payment rate for certain nonprofit nursing facilities in border cities; amending Minnesota Statutes 2014, section 256B.431, by adding a subdivision.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Mack from the Committee on Health and Human Services Reform to which was referred:

H. F. No. 644, A bill for an act relating to health occupations; establishing registration for massage and bodywork therapy; establishing fees; proposing coding for new law in Minnesota Statutes, chapters 148; 325F.

Reported the same back with the following amendments:

Page 14, line 31, before the period, insert ", paragraph (b), clause (6)"

With the recommendation that when so amended the bill be re-referred to the Committee on Government Operations and Elections Policy.

The report was adopted.

Gunther from the Committee on Greater Minnesota Economic and Workforce Development Policy to which was referred:

H. F. No. 688, A bill for an act relating to taxation; income; establishing a new markets tax credit program; authorizing rulemaking; requiring a report; appropriating money; amending Minnesota Statutes 2014, section 297I.20, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 290; proposing coding for new law as Minnesota Statutes, chapter 116X.

Reported the same back with the following amendments:

Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 627

Page 1, delete lines 11 to 13

Page 1, line 15, delete "(m)" and insert "(l)"

Reletter the paragraphs in sequence

Page 2, line 10, delete "quality" and insert "qualified"

Page 5, line 10, delete "(g)" and insert "(f)"

Page 6, line 4, delete "fund" and insert "account"

With the recommendation that when so amended the bill be re-referred to the Committee on Government Operations and Elections Policy.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 716, A bill for an act relating to local government; modifying provisions governing the Saint Paul Port Authority; amending Minnesota Statutes 2014, sections 469.049; 469.050, subdivision 4; 469.084, subdivisions 3, 4, 8, 9, 10, 14; repealing Minnesota Statutes 2014, section 469.084, subdivisions 11, 12.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

The report was adopted.

Schomacker from the Committee on Aging and Long-Term Care Policy to which was referred:

H. F. No. 730, A bill for an act relating to human services; modifying nursing facility operating payment rates for certain facilities; amending Minnesota Statutes 2014, section 256B.431, by adding a subdivision.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Nornes from the Committee on Higher Education Policy and Finance to which was referred:

H. F. No. 742, A bill for an act relating to higher education; data practices; requiring changes to campus policies on sexual harassment and sexual violence; encouraging good faith reporting of sexual harassment and sexual violence; requiring coordination between postsecondary institutions and law enforcement; requiring postsecondary institutions to create an online reporting system; restricting access to data; requiring training of campus security officers and administrators; requiring institutions provide student health services for victims of sexual assault; amending Minnesota Statutes 2014, section 135A.15, subdivisions 1, 2, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 626.

Reported the same back with the following amendments:

Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 628

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2014, section 13.322, is amended by adding a subdivision to read:

Subd. 6. Campus sexual assault data. Data relating to allegations of sexual assault at a postsecondary institution are classified in section 135A.15.

Sec. 2. Minnesota Statutes 2014, section 135A.15, subdivision 1, is amended to read:

Subdivision 1. Policy required. The Board of Trustees of the Minnesota State Colleges and Universities shall, and the University of Minnesota is requested to, adopt a clear, understandable written policy on sexual harassment and sexual violence that informs victims of their rights under the crime victims bill of rights, including the right to assistance from the Crime Victims Reparations Board and the commissioner of public safety. The policy must apply to students and employees and must provide information about their rights and duties. The policy must apply to criminal incidents against a student or employee of a postsecondary institution occurring on property owned or leased by the postsecondary system or institution ~~in which the victim is a student or employee of that system or institution~~ or at any activity, program, organization, or event sponsored by the system or institution, including fraternities and sororities. It must include procedures for reporting incidents of sexual harassment or sexual violence and for disciplinary actions against violators. During student registration, each technical college, community college, or state university shall, and the University of Minnesota is requested to, provide each student with information regarding its policy. A copy of the policy also shall be posted at appropriate locations on campus at all times. Each private postsecondary institution that is ~~an eligible institution as defined in section 136A.155,~~ registered as a postsecondary institution under section 136A.65 must ~~adopt a policy that meets the~~ comply with the requirements of this section.

Sec. 3. Minnesota Statutes 2014, section 135A.15, subdivision 2, is amended to read:

Subd. 2. Victims' rights. (a) The policy required under subdivision 1 shall, at a minimum, require that students and employees be informed of the policy, and shall include provisions for:

(1) filing criminal charges with local law enforcement officials in sexual assault cases;

(2) the prompt assistance of campus authorities, at the request of the victim, in notifying the appropriate law enforcement officials and disciplinary authorities of a sexual assault incident;

(3) allowing sexual assault victims to decide whether to refer a case to law enforcement;

(4) requiring campus authorities to treat sexual assault victims with dignity;

(5) requiring campus authorities to offer sexual assault victims fair and respectful health care, counseling services, or referrals to such services;

(6) preventing campus authorities from suggesting a victim of sexual assault is at fault for the crimes or violations that occurred;

(7) preventing campus authorities from suggesting that a victim of sexual assault should have acted in a different manner to avoid such a crime;

(8) protecting the privacy of sexual assault victims by, unless otherwise required by law, only disclosing data collected under this section to the victim, campus officials investigating a report or conducting a disciplinary procedure related to the incident, and, at a sexual assault victim's request, police conducting a criminal investigation;

~~Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 629~~

~~(3)~~ (9) an investigation and resolution of a sexual assault complaint by campus disciplinary authorities;

~~(4)~~ (10) a sexual assault victim's participation in and the presence of the victim's attorney or other support person at any meeting with campus officials concerning a sexual assault complaint or campus disciplinary proceeding concerning a sexual assault complaint;

(11) ensuring that a sexual assault victim is not required to repeat unnecessarily a description of the incident of sexual assault;

(12) notice to a sexual assault victim of the availability of a campus or local program providing sexual assault advocacy services;

~~(5)~~ (13) notice to a sexual assault victim of the outcome of any campus disciplinary proceeding concerning a sexual assault complaint, consistent with laws relating to data practices;

~~(6)~~ (14) the complete and prompt assistance of campus authorities, at the direction of law enforcement authorities, in obtaining, securing, and maintaining evidence in connection with a sexual assault incident;

~~(7)~~ (15) the assistance of campus authorities in preserving for a sexual assault complainant or victim materials relevant to a campus disciplinary proceeding; ~~and~~

~~(8)~~ (16) during and after the process of investigating a complaint and conducting a campus disciplinary procedure, the assistance of campus personnel, in cooperation with the appropriate law enforcement authorities, at a sexual assault victim's request, in shielding the victim from unwanted contact with the alleged assailant, including transfer of the victim to alternative classes or to alternative college-owned housing, if alternative classes or housing are available and feasible;

(17) forbidding retaliation, and establishing a process for investigating complaints of retaliation, against sexual assault victims by campus authorities, the accused, organizations affiliated with the accused, other students, and other employees;

(18) allowing sexual assault victims to practice their religion and exercise their civil rights without interference by the investigative, criminal justice, or student conduct process of the institution;

(19) providing students who reported sexual assaults to the institution and subsequently choose to transfer to another postsecondary institution with information about resources for victims of sexual assault at the institution to which the victim is transferring; and

(20) providing a student who reported an incident of sexual assault with access to the campus investigatory file regarding the incident, including if that student transfers to another postsecondary institution.

(b) For the purposes of this section, "sexual assault" means forcible sex offenses as defined in Code of Federal Regulations, title 34, part 668, subpart D, appendix A, as amended.

Sec. 4. Minnesota Statutes 2014, section 135A.15, is amended by adding a subdivision to read:

Subd. 3. Uniform amnesty. The Board of Trustees of the Minnesota State Colleges and Universities shall, and the University of Minnesota is requested to, include in the system's sexual harassment and violence policy a provision that no student who reports, in good faith, an act of sexual harassment or sexual violence shall be sanctioned by the institution for admitting to a violation of the institution's student conduct policy on the use of drugs or alcohol as part of the report. Each private postsecondary institution that is registered under section 136A.65 must comply with the requirements of this subdivision.

Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 630

Sec. 5. Minnesota Statutes 2014, section 135A.15, is amended by adding a subdivision to read:

Subd. 4. Coordination with local law enforcement. (a) The Board of Trustees of the Minnesota State Colleges and Universities shall, and the University of Minnesota is requested to, direct each campus in the system to enter into a memorandum of understanding with the primary local law enforcement agencies that serve the campus. The memorandum must be entered into no later than January 1, 2017, and updated every two years thereafter. Each private postsecondary institution that is registered under section 136A.65 must comply with the requirements of this subdivision. This memorandum shall clearly delineate responsibilities and require information sharing, in accordance with applicable state and federal privacy laws, about certain crimes including, but not limited to, sexual assault. This memorandum of understanding shall provide:

(1) delineation and sharing protocols of investigative responsibilities;

(2) protocols for investigations, including standards for notification and communication and measures to promote evidence preservation; and

(3) a method of sharing information about specific crimes, when directed by the victim, and a method of sharing crime details anonymously in order to better protect overall campus safety.

(b) Prior to the start of each academic year, the Board of Trustees of the Minnesota State Colleges and Universities shall, and the University of Minnesota is requested to, distribute an electronic copy of the memorandum of understanding to all employees on the campus that are subject to the memorandum.

(c) A campus is exempt from the requirement that it develop a memorandum of understanding under this section if the campus and local or county law enforcement agencies establish a sexual assault protocol team to facilitate effective cooperation and collaboration between the institution and law enforcement.

Sec. 6. Minnesota Statutes 2014, section 135A.15, is amended by adding a subdivision to read:

Subd. 5. Online reporting system. (a) The Board of Trustees of the Minnesota State Colleges and Universities shall, and the University of Minnesota is requested to, provide an online reporting system to receive complaints of sexual harassment and sexual violence from students and employees. The system must permit anonymous reports, provided that the institution is not obligated to investigate an anonymous report, unless a formal report is submitted through the process established in the institution's sexual harassment and sexual violence policy or an investigation is otherwise required by law.

(b) The Board of Trustees of the Minnesota State Colleges and Universities shall, and the University of Minnesota is requested to, provide students making reports under this section with information about who will receive and have access to the reports filed, how the information gathered through the system will be used, and contact information for on-campus and off-campus organizations serving victims of sexual violence.

(c) Each private postsecondary institution that is registered under section 136A.65 must comply with the requirements of this subdivision.

(d) Data collected under this subdivision is classified as private data on individuals as defined by section 13.02, subdivision 12.

Sec. 7. Minnesota Statutes 2014, section 135A.15, is amended by adding a subdivision to read:

Subd. 6. Data collection and reporting. (a) The Board of Trustees of the Minnesota State Colleges and Universities and the University of Minnesota shall annually report statistics on sexual assault. Each private postsecondary institution that is registered under section 136A.65 must comply with the requirements of this

Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 631

subdivision. This report must be prepared in addition to any federally required reporting on campus security, including reports required by the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act, United States Code, title 20, section 1092(f). The report must include, but not be limited to:

(1) the number of incidents that were investigated by the institution;

(2) the number of incidents that were referred for a disciplinary proceeding at the institution;

(3) the number of incidents that the victim chose to report to local or state law enforcement;

(4) the number of alleged perpetrators that were found responsible by the disciplinary proceeding at the institution;

(5) the number of disciplinary proceedings at the institution that resulted in any action by the institution greater than a warning issued to the accused;

(6) the number of disciplinary proceedings at the institution that have closed without resolution;

(7) the number of disciplinary proceedings at the institution that were closed without resolution because the accused withdrew from the institution;

(8) the number of disciplinary proceedings at the institution that have closed without resolution because the victim chose not to participate in the procedure; and

(9) the number of reports made through the online reporting system established in subdivision 5, excluding reports submitted anonymously.

(b) The data reported as part of this subdivision shall be provided as summary data as defined by section 13.02, subdivision 19, and shall not identify alleged victims or perpetrators of crimes. The report required by this section must be submitted to the Office of Higher Education. The Office of Higher Education shall publish the data reported under this subdivision on its Web site. Each technical college, community college, or state university shall, and the University of Minnesota is requested to, publish the data reported as part of this subdivision on its Web site. This subdivision does not require disclosure of data that would violate state or federal laws governing access to student records.

Sec. 8. Minnesota Statutes 2014, section 135A.15, is amended by adding a subdivision to read:

Subd. 7. Access to data; audit trail. (a) Data on incidents of sexual assault shared with campus security officers or campus administrators responsible for investigating or adjudicating complaints of sexual assault are classified as private data on individuals as defined by section 13.02, subdivision 12.

(b) Only individuals with explicit authorization from an institution may enter, update, or access electronic data collected, created, or maintained under this section. The ability of authorized individuals to enter, update, or access data must be limited through the use of role-based access that corresponds to the official duties or training level of the individual and the institutional authorization that grants access for that purpose. All queries and responses, and all actions in which data are entered, updated, accessed, shared, or disseminated outside of the institution, must be recorded in a data audit trail. An institution shall immediately and permanently revoke the authorization of any individual determined to have willfully entered, updated, accessed, shared, or disseminated data in violation of this subdivision or any provision of chapter 13. If an individual is determined to have willfully gained access to data without explicit authorization, the matter shall be forwarded to a county attorney for prosecution.

Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 632

Sec. 9. Minnesota Statutes 2014, section 135A.15, is amended by adding a subdivision to read:

Subd. 8. Comprehensive training. (a) The Board of Trustees of the Minnesota State Colleges and Universities shall, and the University of Minnesota is requested to, provide campus security officers and campus administrators responsible for investigating or adjudicating complaints of sexual assault with comprehensive training on preventing and responding to sexual assault in collaboration with the Bureau of Criminal Apprehension or another law enforcement agency with expertise in criminal sexual conduct. The training for campus security officers shall include a presentation on the dynamics of sexual assault, neurobiological responses to trauma, and best practices for preventing, responding to, and investigating sexual assault. The training for campus administrators responsible for investigating or adjudicating complaints on sexual assault shall include presentations on preventing sexual assault, responding to incidents of sexual assault, the dynamics of sexual assault, neurobiological responses to trauma, and compliance with state and federal laws on sexual assault.

(b) The Board of Trustees of the Minnesota State Colleges and Universities shall, and the University of Minnesota is requested to, require that each incoming student complete training on sexual assault no later than ten business days after the start of a student's first semester of classes. Once a student completes such training, institutions must document the completion of such a course on the student's transcript. Students who previously completed a campus training on sexual assault that is documented on their transcript are exempt from this requirement. This training shall include information about topics including, but not limited to, sexual assault as defined in subdivision 2; consent as defined in section 609.341, subdivision 4; preventing and reducing the prevalence of sexual assault; procedures for reporting campus sexual assault; and campus resources on sexual assault, including organizations that support victims of sexual assault.

(c) The Board of Trustees of the Minnesota State Colleges and Universities shall, and the University of Minnesota is requested to, annually train individuals responsible for responding to reports of sexual assault. This training shall include information about best practices for interacting with victims of sexual assault, including how to reduce the emotional distress resulting from the reporting, investigatory, and disciplinary process.

(d) Each private postsecondary institution that is registered under section 136A.65 must comply with the requirements of this subdivision.

Sec. 10. Minnesota Statutes 2014, section 135A.15, is amended by adding a subdivision to read:

Subd. 9. Student health services. (a) The Board of Trustees of the Minnesota State Colleges and Universities shall, and the University of Minnesota is requested to, develop and implement a policy that requires student health service providers to screen students for incidents of sexual assault. Student health service providers shall offer students information on resources available to victims and survivors of sexual assault including counseling, mental health services, and procedures for reporting incidents of sexual assault to the institution.

(b) The Board of Trustees of the Minnesota State Colleges and Universities shall, and the University of Minnesota is requested to, require that each institution offering student health or counseling services designate an existing staff member or existing staff members as confidential resources for victims of sexual assault. The confidential resource must be available to meet with victims of sexual assault on a walk-in basis. The confidential resource must provide victims of sexual assault with information about locally available resources for victims of sexual assault, including, but not limited to, mental health services and legal assistance. The confidential resource must provide victims of sexual assault with information about the process for reporting an incident of sexual assault to campus authorities or local law enforcement. The victim of sexual assault shall decide whether to report an incident of sexual assault to campus authorities or local law enforcement. Confidential resources must be trained in

Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 633

all aspects of responding to incidents of sexual assault including, but not limited to, best practices for interacting with victims of trauma, preserving evidence, campus disciplinary and local legal processes, and locally available resources for victims of sexual assault. Data shared with a confidential resource is classified as sexual assault communication data as defined by section 13.822, subdivision 1.

(c) Each private postsecondary institution that is registered under section 136A.65 must comply with the requirements of this subdivision.

EFFECTIVE DATE. The policy required under this subdivision must be in place by January 1, 2017.

Sec. 11. [626.891] COOPERATION WITH POSTSECONDARY INSTITUTIONS.

Local law enforcement agencies, including law enforcement agencies operated by statutory cities, home rule charter cities, and counties, must enter into and honor the memoranda of understanding required under section 135A.15.

Sec. 12. EFFECTIVE DATE.

This act is effective August 1, 2016."

Amend the title as follows:

Page 1, line 2, delete "data practices;"

Page 1, line 6, after "data;" insert "providing data classifications;"

Correct the title numbers accordingly

With the recommendation that when so amended the bill be re-referred to the Committee on Public Safety and Crime Prevention Policy and Finance.

The report was adopted.

Gunther from the Committee on Greater Minnesota Economic and Workforce Development Policy to which was referred:

H. F. No. 751, A bill for an act relating to workforce development; providing a job training tax credit; requiring a report; appropriating money; proposing coding for new law in Minnesota Statutes, chapters 116L; 290.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

The report was adopted.

Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 634

Mack from the Committee on Health and Human Services Reform to which was referred:

H. F. No. 753, A bill for an act relating to health; adding mental health professionals and independent clinical social workers to the health professional education loan forgiveness program; appropriating money; amending Minnesota Statutes 2014, section 144.1501, subdivisions 1, 2, 3.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Greater Minnesota Economic and Workforce Development Policy.

The report was adopted.

Nornes from the Committee on Higher Education Policy and Finance to which was referred:

H. F. No. 777, A bill for an act relating to higher education; creating a grant program for spinal cord injury and traumatic brain injury research; establishing the spinal cord and traumatic brain injury advisory council; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 136A.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Government Operations and Elections Policy.

The report was adopted.

Erickson from the Committee on Education Innovation Policy to which was referred:

H. F. No. 789, A bill for an act relating to education; directing the Board of Teaching to adopt standards for a specialized license, endorsement, or credential for project-based learning; requiring a project-based learning proposal; amending Minnesota Statutes 2014, section 122A.09, by adding a subdivision.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Education Finance.

The report was adopted.

Cornish from the Committee on Public Safety and Crime Prevention Policy and Finance to which was referred:

H. F. No. 801, A bill for an act relating to public safety; establishing a new arson offense; amending Minnesota Statutes 2014, section 609.5641, subdivision 1a; proposing coding for new law in Minnesota Statutes, chapter 609.

Reported the same back with the recommendation that the bill be placed on the General Register.

The report was adopted.

Mack from the Committee on Health and Human Services Reform to which was referred:

H. F. No. 803, A bill for an act relating to health; adding mental health professionals and county social workers specializing in child protection to the health professional education loan forgiveness program; appropriating money; amending Minnesota Statutes 2014, section 144.1501, subdivisions 1, 2, 3.

Reported the same back with the following amendments:

Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 635

Page 1, line 22, delete "8" and insert "18"

With the recommendation that when so amended the bill be re-referred to the Committee on Greater Minnesota Economic and Workforce Development Policy.

The report was adopted.

Hoppe from the Committee on Commerce and Regulatory Reform to which was referred:

H. F. No. 953, A bill for an act relating to real property; clarifying the mortgage foreclosure by advertisement publication requirements; amending Minnesota Statutes 2014, section 582.25; proposing coding for new law in Minnesota Statutes, chapter 580.

Reported the same back with the following amendments:

Page 1, after line 10, insert:

"Sec. 2. Minnesota Statutes 2014, section 580.15, is amended to read:

580.15 PERPETUATING EVIDENCE OF SALE.

Any party desiring to perpetuate the evidence of any sale made in pursuance of this chapter may procure:

(1) an affidavit of the publication of the notice of sale and of any notice of postponement to be made by the printer of the newspaper in which the same was inserted or by some person in the printer's employ knowing the facts, including that the newspaper is a qualified newspaper and that its known office of issue is located in the county in which the mortgaged premises, or some part thereof, is located;

(2) an affidavit or return of service of such notice upon the occupant of the mortgaged premises to be made by the officer or person making such service or, in case the premises were vacant or unoccupied at the time the service must be made, an affidavit or return showing that fact, to be made by the officer or person attempting to make such service;

(3) an affidavit by the person foreclosing the mortgage, or that person's attorney, or someone knowing the facts, setting forth the facts relating to the military service status of the owner of the mortgaged premises at the time of sale;

(4) an affidavit by the person foreclosing the mortgage, or that person's attorney, or someone having knowledge of the facts, setting forth the fact of service of notice of sale upon the secretary of the Treasury of the United States or the secretary's delegate in accordance with the provisions of Section 7425 of the Internal Revenue Code of 1954 as amended by Section 109 of the Federal Tax Lien Act of 1966, and also setting forth the fact of service of notice of sale upon the commissioner of revenue of the state of Minnesota in accordance with the provisions of section 270C.63, subdivision 11. Any such affidavit recorded prior to May 16, 1967 shall be effective as prima facie evidence of the facts therein contained as though recorded subsequent to May 16, 1967;

(5) an affidavit by the person foreclosing the mortgage, or that person's attorney, or someone having knowledge of the facts, setting forth the names of the persons to whom a notice of sale was mailed as provided by section 580.032; and

Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 636

(6) one or more affidavits by the person foreclosing the mortgage, or that person's attorney or a person having knowledge of the facts, stating:

(i) whether section 580.021, 580.04, 580.041, 580.042, 582.039, 582.041, or 582.042 applies to the foreclosure proceedings; and

(ii) if any or all of those sections apply, that all notices required under those sections have been provided.

Such affidavits and returns shall be recorded by the county recorder and they and the records thereof, and certified copies of such records, shall be prima facie evidence of the facts therein contained.

The affidavit provided for in clause (3) hereof may be made and recorded for the purpose of complying with the provisions of the Servicemembers Civil Relief Act, and may be made and recorded at any time subsequent to the date of the mortgage foreclosure sale."

Page 5, line 27, delete "Sections 1 and 2" and insert "Sections 1 to 3"

Renumber the sections in sequence

Correct the title numbers accordingly

With the recommendation that when so amended the bill be re-referred to the Committee on Civil Law and Data Practices.

The report was adopted.

Mack from the Committee on Health and Human Services Reform to which was referred:

H. F. No. 960, A bill for an act relating to health occupations; changing licensing provisions for the Board of Social Work; amending Minnesota Statutes 2014, sections 148E.075; 148E.080, subdivisions 1, 2; 148E.180, subdivisions 2, 5; repealing Minnesota Statutes 2014, section 148E.060, subdivision 12.

Reported the same back with the following amendments:

Page 6, delete section 6 and insert:

"Sec. 6. REPEALER.

Minnesota Statutes 2014, sections 148E.060, subdivision 12; and 148E.075, subdivisions 4, 5, 6, and 7, are repealed."

Correct the title numbers accordingly

With the recommendation that when so amended the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 637

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 1003, A bill for an act relating to local government; permitting local governments to donate certain surplus equipment to nonprofit organizations; proposing coding for new law in Minnesota Statutes, chapter 471.

Reported the same back with the following amendments:

Page 1, after line 5, insert:

"Section 1. Minnesota Statutes 2014, section 466.03, is amended by adding a subdivision to read:

Subd. 25. Surplus equipment donated. Any tort claim against a municipality resulting from the use of surplus equipment donated by the municipality to a nonprofit organization under section 471.3459, unless the claim is a direct result of fraud or intentional misrepresentation."

Page 1, line 9, delete the second "or" and after "town" insert ", or joint powers entity formed by any of these local governmental units"

Page 1, line 12, after "means" insert "public safety equipment as defined in section 466.03, subdivision 24, equipment used by a local government public works department, and"

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 3, after "organizations;" insert "creating an exception to tort liability;"

Correct the title numbers accordingly

With the recommendation that when so amended the bill be re-referred to the Committee on Civil Law and Data Practices.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 1078, A bill for an act relating to state government; reimbursing state agencies for the costs of providing reasonable accommodation; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 16B.

Reported the same back with the following amendments:

Page 1, line 16, delete "executive branch"

Page 1, line 19, delete "7.5" and insert "15"

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Page 2, after line 2, insert:

"Subd. 6. Report. By January 31 of each year, the commissioner of administration must report to the chairs and ranking minority members of the house of representatives and the senate committees with jurisdiction over state government finance on the use of the central accommodation fund during the prior calendar year. The report must include:

(1) the number and type of accommodations requested;

(2) the cost of accommodations requested;

(3) the state agencies from which the requests were made;

(4) the number of requests made for employees and the number of requests for applicants for employment;

(5) the number and type of accommodations that were not provided;

(6) any remaining balance left in the fund;

(7) if the fund was depleted, the date on which funds were exhausted and the number, type, and cost of accommodations that were not reimbursed to state agencies; and

(8) a description of how the fund was promoted to state agencies.

Subd. 7. Funding. The commissioner of management and budget must determine the amount of money to be deposited in the accommodation account each fiscal year. The commissioner must require each executive agency to make payments into the account from amounts appropriated for agency operations. The commissioner must implement policies and procedures to divide this amount among executive agencies. If the commissioner determines that it is not practical for an agency to make payments into a central account due to legal restrictions on use of the agency's appropriations, the commissioner shall require the agency to set aside money within its own operating funds, to be used only for purposes of this section."

Page 2, delete section 2

Amend the title as follows:

Page 1, line 3, after the second semicolon, insert "requiring a report; providing funding for reasonable accommodations;"

With the recommendation that when so amended the bill be re-referred to the Committee on State Government Finance.

The report was adopted.

Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 639

Erickson from the Committee on Education Innovation Policy to which was referred:

H. F. No. 1163, A bill for an act relating to transportation; modifying requirements for issuance of school bus driver's license endorsement; amending Minnesota Statutes 2014, section 171.321, subdivisions 1, 3, by adding subdivisions.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Transportation Policy and Finance.

The report was adopted.

Erickson from the Committee on Education Innovation Policy to which was referred:

H. F. No. 1170, A bill for an act relating to education; postsecondary; providing a teacher shortage loan forgiveness program; authorizing rulemaking; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 136A.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [136A.1791] TEACHER SHORTAGE LOAN FORGIVENESS PROGRAM.

Subdivision 1. Definitions. (a) The terms used in this section have the meanings given them in this subdivision.

(b) "Qualified educational loan" means a government, commercial, or foundation loan for actual costs paid for tuition, reasonable education expenses, and reasonable living expenses related to a teacher's education.

(c) "School district" means an independent school district, special school district, intermediate district, education district, special education cooperative, service cooperative, a cooperative center for vocational education, or a charter school located in Minnesota.

(d) "Teacher" means an individual holding a teaching license issued by the Board of Teaching, who is employed by a school district in a nonadministrative teaching position in a teacher shortage area.

(e) "Teacher shortage area" means a subject area and licensure field designated by the commissioner of education as an area and field in which a shortage of teachers exists in Minnesota.

Subd. 2. Program established; administration. The commissioner shall establish and administer a teacher shortage loan forgiveness program. A teacher is eligible for the program if the teacher is teaching in a teacher shortage area and complies with requirements of this section.

Subd. 3. Annual designation of teacher shortage areas. The commissioner of education shall annually designate the subject areas and licensure field experiencing teacher shortages. The commissioner of education shall periodically survey school districts and approved teacher preparation programs to identify teacher shortage areas.

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Subd. 4. Application for loan forgiveness. Each applicant for loan forgiveness, according to the rules of the commissioner, shall:

(1) complete and file an application for teacher shortage loan forgiveness. The applicant must promptly submit any information required by the commissioner;

(2) annually file a new application and submit information the commissioner requires to determine the applicant's eligibility for renewing loan forgiveness; and

(3) submit to the commissioner a completed affidavit, prescribed by the commissioner, verifying that the teacher is teaching in a teacher shortage area.

Subd. 5. Amount of loan forgiveness. Within the limits of available funding, the annual amount of teacher shortage loan forgiveness for an approved recipient shall not exceed $....... or the cumulative balance of the recipient's qualified educational loans, including principal and interest, whichever amount is less. Recipients must secure their own qualified educational loans. A teacher who graduates from an approved teacher preparation program is eligible to apply for the loan forgiveness program for five consecutive years after graduation. A teacher who adds a licensure field in a teacher shortage area may also apply immediately after adding the licensure field.

Subd. 6. Penalties. A teacher who submits a false or misleading application or other information to the commissioner may have his or her teaching license suspended or revoked under section 122A.20 or may be subject to discipline by the teacher's employing school district.

Subd. 7. Fund established. A teacher shortage loan forgiveness repayment fund is created for depositing money appropriated to or received by the commissioner for this program. Money deposited in the fund shall not revert to any fund of the state at the end of any fiscal year but shall remain in the loan forgiveness repayment fund and be continuously available for loan forgiveness under this program.

Subd. 8. Annual reporting. The commissioner, annually by February 1, must report to the chairs of the K-12 and higher education committees of the legislature on the number of individuals who received loan forgiveness under this section, which teacher shortage areas teachers taught, the amount paid to each program participant, and other information identified by the commissioner as outcome indicators.

Subd. 9. Rulemaking. The commissioner shall adopt rules under chapter 14 to administer this section.

Sec. 2. APPROPRIATIONS.

$....... in fiscal year 2016 and $....... in fiscal year 2017 are appropriated from the general fund to the commissioner of the Office of Higher Education for the purposes of the teacher shortage loan forgiveness program under Minnesota Statutes, section 136A.1791, and for creating rules to administer the program."

With the recommendation that when so amended the bill be re-referred to the Committee on Government Operations and Elections Policy.

The report was adopted.

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Hackbarth from the Committee on Mining and Outdoor Recreation Policy to which was referred:

H. F. No. 1182, A bill for an act relating to game and fish; requiring applications for hunting and fishing licenses to allow applicant to be organ donor and make cash contributions for public education regarding anatomical gifts; requiring a report; amending Minnesota Statutes 2014, section 171.075, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 97A.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Environment and Natural Resources Policy and Finance.

The report was adopted.

Erickson from the Committee on Education Innovation Policy to which was referred:

H. F. No. 1209, A bill for an act relating to health; requiring suicide prevention training; requiring training for law enforcement in techniques to de-escalate mental health crises; requiring a report; appropriating money; amending Minnesota Statutes 2014, sections 122A.09, subdivision 4; 145.56, subdivisions 2, 4; 626.8452, subdivision 3; 626.8455, subdivision 1.

Reported the same back with the following amendments:

Page 4, line 14, delete "and" and insert "or best practice for"

Page 4, line 15, delete "that is approved as a best practice"

With the recommendation that when so amended the bill be re-referred to the Committee on Education Finance.

The report was adopted.

Erickson from the Committee on Education Innovation Policy to which was referred:

H. F. No. 1219, A bill for an act relating to education; reporting data on homeless and highly mobile students; amending Minnesota Statutes 2014, sections 120B.30, subdivision 3; 120B.31, subdivision 4; 120B.36, subdivision 1.

Reported the same back with the following amendments:

Page 1, line 10, after "including" insert "young children and"

With the recommendation that when so amended the bill be re-referred to the Committee on Education Finance.

The report was adopted.

Schomacker from the Committee on Aging and Long-Term Care Policy to which was referred:

H. F. No. 1221, A bill for an act relating to human services; providing nursing facility construction project rate adjustments for certain facilities; amending Minnesota Statutes 2014, section 256B.434, by adding a subdivision.

Reported the same back with the following amendments:

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Page 1, line 16, after "beds" insert ", but not more than 160 active beds,"

Page 1, line 17, delete "$12" and insert "$12.50"

With the recommendation that when so amended the bill be re-referred to the Committee on Health and Human Services Finance.

The report was adopted.

Sanders from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 1261, A bill for an act relating to state government; regulating rulemaking by state agencies; providing process requirements for rules that have substantial economic impact; amending Minnesota Statutes 2014, sections 14.02, by adding a subdivision; 14.05, subdivisions 1, 2; 14.116; 14.127; 14.131; 14.388, subdivision 2; 14.389, subdivision 2; 14.44; 14.45.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Civil Law and Data Practices.

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. No. 801 was read for the second time.

SECOND READING OF SENATE BILLS

S. F. No. 578 was read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Murphy, E., introduced:

H. F. No. 1464, A bill for an act relating to education; requiring school readiness teachers to be licensed; clarifying teacher licensure requirements for early childhood family education programs; clarifying the definition of teacher; amending Minnesota Statutes 2014, sections 122A.26, subdivision 2; 122A.60, subdivision 1; 124D.13, subdivision 11; 124D.15, subdivision 3; 179A.03, subdivision 14; proposing coding for new law in Minnesota Statutes, chapter 124D.

The bill was read for the first time and referred to the Committee on Education Innovation Policy.

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Metsa; Murphy, M., and Melin introduced:

H. F. No. 1465, A bill for an act relating to capital investment; appropriating money for capital improvements at the Northeast Regional Correctional Center (NERCC); authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Public Safety and Crime Prevention Policy and Finance.

Loonan introduced:

H. F. No. 1466, A bill for an act relating to liquor; authorizing microdistilleries to make off-sales and self‑distribute; authorizing microdistilleries to obtain temporary licenses for social events; amending Minnesota Statutes 2014, sections 340A.22, subdivision 1; 340A.404, subdivision 10.

The bill was read for the first time and referred to the Committee on Commerce and Regulatory Reform.

Anderson, S.; Freiberg; Carlson; Hornstein and Dehn, R., introduced:

H. F. No. 1467, A bill for an act relating to condemnation; limiting railroad condemnation power in Hennepin County for public safety reasons; proposing coding for new law in Minnesota Statutes, chapter 383B.

The bill was read for the first time and referred to the Committee on Transportation Policy and Finance.

Peterson, Davids, Albright and Zerwas introduced:

H. F. No. 1468, A bill for an act relating to human services; expanding exclusion from human services licensure for school-age programs; amending Minnesota Statutes 2014, section 245A.03, subdivision 2.

The bill was read for the first time and referred to the Committee on Health and Human Services Reform.

Johnson, B., introduced:

H. F. No. 1469, A bill for an act relating to transportation; capital investment; appropriating money for improvements to marked Trunk Highway 95 in the city of Cambridge; authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Transportation Policy and Finance.

Smith introduced:

H. F. No. 1470, A bill for an act relating to the secretary of state; regulating business fees and filings; amending Minnesota Statutes 2014, sections 272.484; 303.19; 304A.301, subdivisions 1, 5, 6, by adding a subdivision; 336A.09, subdivision 1.

The bill was read for the first time and referred to the Committee on Government Operations and Elections Policy.

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Metsa and Murphy, M., introduced:

H. F. No. 1471, A bill for an act relating to capital investment; appropriating money for capital improvements at the Northeast Regional Corrections Center (NERCC); authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Public Safety and Crime Prevention Policy and Finance.

O'Driscoll, Hoppe, Atkins, Vogel, Applebaum and Scott introduced:

H. F. No. 1472, A bill for an act relating to real property; mortgages; clarifying provisions relating to foreclosure sales; amending Minnesota Statutes 2014, sections 580.07, subdivision 2; 580.30, subdivision 1; 582.25.

The bill was read for the first time and referred to the Committee on Civil Law and Data Practices.

Torkelson and Swedzinski introduced:

H. F. No. 1473, A bill for an act relating to capital investment; appropriating money for the Lake Redwood reclamation and enhancement project; authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy and Finance.

Davids introduced:

H. F. No. 1474, A bill for an act relating to public finance; providing longer terms for equipment certificates for certain ice arena equipment; increasing limits for owned housing; changing voting requirements for street construction; modifying credit enhancement for school district refunding bonds; amending Minnesota Statutes 2014, sections 126C.40, subdivision 1; 126C.55, subdivision 1; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32; 412.301; 446A.086, subdivision 2, by adding a subdivision; 469.034, subdivision 2; 469.101, subdivision 1; 475.58, subdivision 3b; 475.60, subdivision 2.

The bill was read for the first time and referred to the Committee on Taxes.

Albright introduced:

H. F. No. 1475, A bill for an act relating to health insurance; requiring coverage under health plans for certain prescription eyedrops refills; proposing coding for new law in Minnesota Statutes, chapter 62A.

The bill was read for the first time and referred to the Committee on Commerce and Regulatory Reform.

Persell, Loeffler, Baker, Liebling, Schoen, Zerwas, Fischer and Simonson introduced:

H. F. No. 1476, A bill for an act relating to health; requiring reports on medications used for the treatment of opioid addiction; amending Minnesota Statutes 2014, sections 152.126, subdivisions 1, 4; 245A.192, subdivision 9.

The bill was read for the first time and referred to the Committee on Health and Human Services Reform.

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Uglem, Cornish, Hansen, Green, Hackbarth, Hornstein, Torkelson, Fenton and Poppe introduced:

H. F. No. 1477, A bill for an act relating to solid waste; amending uses of state grants to counties for solid waste reduction and recycling; amending allocation of solid waste management tax revenues; requiring a study; appropriating money; amending Minnesota Statutes 2014, sections 115A.557, subdivision 2; 297H.13, subdivision 2.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy and Finance.

Garofalo introduced:

H. F. No. 1478, A bill for an act relating to taxation; sales and use; modifying the base of the metropolitan area sales tax; amending Minnesota Statutes 2014, section 297A.992, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

Garofalo introduced:

H. F. No. 1479, A bill for an act relating to taxation; income; establishing a credit and subtraction for certain contributions for higher education expenses; amending Minnesota Statutes 2014, section 290.01, subdivision 19b; proposing coding for new law in Minnesota Statutes, chapter 290.

The bill was read for the first time and referred to the Committee on Higher Education Policy and Finance.

Erickson introduced:

H. F. No. 1480, A bill for an act relating to education; modifying certain Board of Teaching provisions; appropriating money; amending Minnesota Statutes 2014, section 122A.07, subdivisions 2, 4.

The bill was read for the first time and referred to the Committee on Education Innovation Policy.

Wagenius and Hansen introduced:

H. F. No. 1481, A bill for an act relating to natural resources; establishing no net loss of prairie provisions; proposing coding for new law in Minnesota Statutes, chapter 84.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy and Finance.

Albright, Schoen, Garofalo, Melin and Zerwas introduced:

H. F. No. 1482, A bill for an act relating to health; changing provisions in the medical cannabis program; amending Minnesota Statutes 2014, sections 144.99, subdivision 1; 152.22, subdivision 4; 152.25, subdivision 1; 152.26; 152.27, subdivisions 2, 6; 152.29, subdivisions 1, 2, 3; 152.32, subdivision 2; Laws 2014, chapter 311, section 20; proposing coding for new law in Minnesota Statutes, chapter 152.

The bill was read for the first time and referred to the Committee on Health and Human Services Reform.

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Heintzeman; Murphy, M.; Dill; Gunther; Urdahl and Gruenhagen introduced:

H. F. No. 1483, A bill for an act relating to historical societies; creating employment and contracting provisions for historic conservation corps; amending Minnesota Statutes 2014, sections 177.43, subdivision 2; 268.035, subdivision 20; 471.59, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 138.

The bill was read for the first time and referred to the Committee on Greater Minnesota Economic and Workforce Development Policy.

Slocum introduced:

H. F. No. 1484, A bill for an act relating to public safety; amending harassment restraining order provisions on definitions, jurisdiction, notice, service, and relief; amending Minnesota Statutes 2014, section 609.748.

The bill was read for the first time and referred to the Committee on Public Safety and Crime Prevention Policy and Finance.

Erickson introduced:

H. F. No. 1485, A bill for an act relating to education; allowing charter schools to give an enrollment preference to children who are eligible for a free or reduced-price lunch; amending Minnesota Statutes 2014, section 124D.10, subdivision 9.

The bill was read for the first time and referred to the Committee on Education Innovation Policy.

Slocum introduced:

H. F. No. 1486, A bill for an act relating to public safety; expanding the criminal justice data communications network; appropriating money; amending Minnesota Statutes 2014, section 299C.46, subdivision 6.

The bill was read for the first time and referred to the Committee on Public Safety and Crime Prevention Policy and Finance.

Hausman; Murphy, E.; Johnson, S.; Mariani; Mahoney; Dean, M.; Davids; Dehn, R., and Clark introduced:

H. F. No. 1487, A bill for an act relating to capital investment; appropriating money for improvements for the Minnesota Museum of American Art including an integrated education facility; authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

Schoen and Zerwas introduced:

H. F. No. 1488, A bill for an act relating to employment; appropriating money for grants to day training and habilitation providers to implement Olmstead Plan employment goals.

The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

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Hancock, Torkelson, Dill, McNamara, Hansen and Persell introduced:

H. F. No. 1489, A bill for an act relating to natural resources; modifying Wetland Conservation Act; requiring rulemaking; requiring a report; appropriating money; amending Minnesota Statutes 2014, sections 103B.101, by adding a subdivision; 103B.3355; 103F.612, subdivision 2; 103G.005, by adding a subdivision; 103G.222, subdivisions 1, 3; 103G.2242, subdivisions 1, 2, 3, 4, 12, 14; 103G.2251.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy and Finance.

Rarick; Torkelson; Johnson, C.; McNamara; Dill; Hansen; Fischer and Persell introduced:

H. F. No. 1490, A bill for an act relating to natural resources; providing for comprehensive watershed management; amending Minnesota Statutes 2014, sections 103A.206; 103B.101, by adding a subdivision; 103C.101, by adding a subdivision; 103C.401, subdivision 1; 103C.501, subdivision 5; proposing coding for new law in Minnesota Statutes, chapter 103B.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy and Finance.

Lesch and Scott introduced:

H. F. No. 1491, A bill for an act relating to public safety; regulating the use of unmanned aerial vehicles by law enforcement agencies; proposing coding for new law in Minnesota Statutes, chapter 626.

The bill was read for the first time and referred to the Committee on Public Safety and Crime Prevention Policy and Finance.

Selcer, McDonald, Masin, Hausman, Hornstein, Bernardy and Schoen introduced:

H. F. No. 1492, A bill for an act relating to accessibility; modifying traffic and parking signs, restroom signs, and digital media; removing the words "handicap" and "disability" from parking and traffic signs and state digital media; requiring modification of symbol indicating accessibility; amending Minnesota Statutes 2014, section 326B.106, subdivision 9.

The bill was read for the first time and referred to the Committee on Transportation Policy and Finance.

Loonan, Considine, Howe and Rarick introduced:

H. F. No. 1493, A bill for an act relating to insurance; prohibiting the enforcement of certain restrictive covenants against involuntarily terminated agents; proposing coding for new law in Minnesota Statutes, chapter 60A.

The bill was read for the first time and referred to the Committee on Commerce and Regulatory Reform.

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Howe; O'Driscoll; Theis; Kresha; Heintzeman; Swedzinski; Loonan; Torkelson; Urdahl; Backer; Anderson, P.; Green; Fabian; Baker; Hamilton and Pugh introduced:

H. F. No. 1494, A bill for an act relating to water; modifying groundwater appropriation permit requirements; amending Minnesota Statutes 2014, section 103G.287, subdivision 2.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy and Finance.

Green; Lohmer; Hancock; Schoen; Zerwas; Fischer; Gruenhagen; Fabian; Johnson, B.; Heintzeman and Garofalo introduced:

H. F. No. 1495, A bill for an act relating to transportation; appropriating money for State Patrol troopers.

The bill was read for the first time and referred to the Committee on Transportation Policy and Finance.

Schultz, Liebling, Loeffler and Fischer introduced:

H. F. No. 1496, A bill for an act relating to health; eliminating the MNsure Board; designating MNsure as a state agency; changing rulemaking provisions; amending Minnesota Statutes 2014, sections 15.01; 15A.0815, subdivision 2; 62V.02, subdivisions 2, 11; 62V.03; 62V.04; 62V.05; 62V.06; 62V.07; 62V.08; 62V.09; repealing Minnesota Statutes 2014, section 62V.11.

The bill was read for the first time and referred to the Committee on Health and Human Services Reform.

Urdahl; Daudt; Ward; Erickson; Miller; Pugh; Swedzinski; Howe; Franson; Cornish; Anderson, S.; Torkelson; Heintzeman; Backer; Kresha; O'Driscoll; Lesch; Lillie; Drazkowski; Dean, M.; Anderson, M., and Green introduced:

H. F. No. 1497, A bill for an act relating to education; amending state high school graduation requirements; requiring students to demonstrate their knowledge of civics as a condition of receiving a high school diploma; amending Minnesota Statutes 2014, sections 120B.02, subdivision 2, by adding a subdivision; 120B.021, subdivision 1; 120B.024, subdivision 1; 120B.36, subdivision 1.

The bill was read for the first time and referred to the Committee on Education Innovation Policy.

Runbeck, Albright, Ward, Newton and Dean, M., introduced:

H. F. No. 1498, A bill for an act relating to state grants; preventing the state from entering into a grant agreement with grantees disclosing certain information; requiring the attorney general to post federal tax information filed by charitable organizations on the attorney general's charities database Web site; amending Minnesota Statutes 2014, sections 16B.98, subdivision 5; 309.54, subdivision 1.

The bill was read for the first time and referred to the Committee on Government Operations and Elections Policy.

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Schultz; Bly; Johnson, C.; Anderson, P.; Hamilton and Allen introduced:

H. F. No. 1499, A bill for an act relating to agriculture; appropriating money for grants and to identify best practices for food hubs and alternative community-based food distribution systems; requiring a report.

The bill was read for the first time and referred to the Committee on Agriculture Finance.

Schoen, Zerwas, Lesch and Cornish introduced:

H. F. No. 1500, A bill for an act relating to public safety; appropriating money for a crime victim support grant.

The bill was read for the first time and referred to the Committee on Public Safety and Crime Prevention Policy and Finance.

Anderson, M., and Newberger introduced:

H. F. No. 1501, A bill for an act relating to public safety; traffic regulations; providing for optional community service in lieu of a monetary fine for certain violations; amending Minnesota Statutes 2014, section 169.89, subdivision 2.

The bill was read for the first time and referred to the Committee on Public Safety and Crime Prevention Policy and Finance.

Schultz, Simonson, Sundin and Metsa introduced:

H. F. No. 1502, A bill for an act relating to liquor; authorizing an intoxicating liquor license for a golf course in Duluth.

The bill was read for the first time and referred to the Committee on Commerce and Regulatory Reform.

Barrett introduced:

H. F. No. 1503, A bill for an act relating to health; making changes concerning the collection and disposal of legend drugs as pharmaceutical waste; amending Minnesota Statutes 2014, sections 151.01, by adding a subdivision; 151.37, subdivisions 2, 6, 7, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 152.

The bill was read for the first time and referred to the Committee on Health and Human Services Reform.

Simonson introduced:

H. F. No. 1504, A bill for an act relating to natural resources; providing for publicly created wetland banking credits; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 103G.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy and Finance.

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Newberger and Gruenhagen introduced:

H. F. No. 1505, A bill for an act relating to energy; amending the state greenhouse gas emissions goals; amending Minnesota Statutes 2014, sections 3.8851, subdivision 3; 116J.437, subdivision 1; 216B.2422, subdivisions 2c, 4; 216H.02, subdivision 1; 216H.021, subdivision 1; 216H.07; repealing Minnesota Statutes 2014, section 216H.02, subdivisions 2, 3, 4, 5, 6.

The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

Lucero introduced:

H. F. No. 1506, A bill for an act relating to education; modifying certain postsecondary credit provisions; appropriating money; amending Minnesota Statutes 2014, sections 120B.125; 120B.131; 123A.22, subdivision 4; 123B.31; 124D.09; 124D.091, subdivision 3; 136D.73, subdivision 4c; repealing Minnesota Statutes 2014, section 120B.14.

The bill was read for the first time and referred to the Committee on Education Innovation Policy.

Zerwas and Peppin introduced:

H. F. No. 1507, A bill for an act relating to education finance; modifying definition of equity region; amending Minnesota Statutes 2014, section 126C.10, subdivision 28.

The bill was read for the first time and referred to the Committee on Education Finance.

O'Driscoll introduced:

H. F. No. 1508, A bill for an act relating to retirement; statewide and major local public retirement plans; eliminating various outdated or obsolete allowable service credit provisions; eliminating other outdated date references in pension provisions; clarifying or eliminating other ambiguous retirement provisions; correcting various pension-related headnotes; amending Minnesota Statutes 2014, sections 352.01, subdivisions 11, 15; 352.021, subdivisions 1, 3, 4; 352.029, subdivision 2; 352.22, subdivisions 8, 10; 352.23; 352.75, subdivision 2; 352.87, subdivision 8; 352B.011, subdivision 3; 352B.07; 352B.25; 353.01, subdivisions 2b, 6, 16, 17; 353.017, subdivision 2; 353.46, subdivision 2; 353.64, subdivisions 7a, 8, 9, 10; 353D.071, subdivision 2; 354.05, subdivisions 10, 13, 25; 354.07, subdivision 5; 354.092, subdivision 4; 354.42, subdivision 1a; 354.44, subdivisions 8, 9; 354.45, subdivision 1a; 354.48, subdivision 3; 354.51, subdivisions 1, 5; 354.52, subdivision 4c; 354.55, subdivision 10; 354A.011, subdivision 6; 354A.092; 354A.12, subdivision 3c; 354A.31, subdivision 7; 354A.42; 356.215, subdivisions 1, 18; 356.245; 356.40; 356.405; 356.407, subdivision 1; 356.415, subdivisions 1, 1a, 1d, 1e, 1f; 356.431; 356.62; 356B.10, subdivisions 2, 3, 4, 5, 6, 7; 423A.02, subdivision 1b; 424A.001, subdivision 10; repealing Minnesota Statutes 2014, sections 352.271; 352.75, subdivisions 1, 3, 4, 5, 6; 352.76; 352.91, subdivisions 3a, 3b; 352B.29; 353.83; 353.84; 353.85; 354.146, subdivisions 1, 3; 354.33, subdivisions 5, 6; 354.39; 354.55, subdivisions 13, 16, 17, 18, 19; 354.58; 354A.35, subdivision 2a; 356.42; 356.49, subdivision 2; 424A.03, subdivision 3.

The bill was read for the first time and referred to the Committee on Government Operations and Elections Policy.

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Nash; Pugh; Howe; Hoppe; Bly; Simonson; Albright; Anderson, S.; Scott; Drazkowski; Fabian; Anderson, M.; Johnson, B., and Winkler introduced:

H. F. No. 1509, A bill for an act relating to liquor; allowing microdistilleries to sell bottles at off-sale; amending Minnesota Statutes 2014, section 340A.22, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Commerce and Regulatory Reform.

Uglem introduced:

H. F. No. 1510, A bill for an act relating to capital investment; appropriating money for restoration of the Champlin Mill Pond; authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy and Finance.

Johnson, C., introduced:

H. F. No. 1511, A bill for an act relating to public safety; drivers' licenses; making placement of residence addresses on drivers' licenses optional; eliminating the fee charged to change the residence address on a driver's license record; establishing a computerized records system; authorizing Internet access; specifying system access requirements; amending Minnesota Statutes 2014, sections 171.07, subdivisions 1, 3; 171.11; 171.12, by adding a subdivision; 171.121.

The bill was read for the first time and referred to the Committee on Transportation Policy and Finance.

Peppin, Lucero and Smith introduced:

H. F. No. 1512, A bill for an act relating to transportation; capital investment; appropriating money for an interchange on marked Interstate Highway 94 in Dayton; authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Transportation Policy and Finance.

McNamara and Anzelc introduced:

H. F. No. 1513, A bill for an act relating to taxation; minerals; taconite production tax distributions; amending Minnesota Statutes 2014, section 298.28, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Mining and Outdoor Recreation Policy.

Loonan and Baker introduced:

H. F. No. 1514, A bill for an act relating to lawful gambling; clarifying an exemption for certain raffles; amending Minnesota Statutes 2014, section 349.166, subdivision 2.

The bill was read for the first time and referred to the Committee on Commerce and Regulatory Reform.

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Peterson, Hamilton, Davnie, Poppe, Pierson and Johnson, C., introduced:

H. F. No. 1515, A bill for an act relating to workforce development; appropriating money for a grant to Ka Joog for a job skills and workforce development pilot program; appropriating money for grants to expand Takeoff 4-H STEAM for Somali youth.

The bill was read for the first time and referred to the Committee on Greater Minnesota Economic and Workforce Development Policy.

Metsa, Anzelc, Melin and Dill introduced:

H. F. No. 1516, A bill for an act relating to capital investment; appropriating money for an economic development center and a mental health facility; authorizing the sale and issuance of state bonds.

The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

Norton, Nornes, Christensen, Pelowski and Rosenthal introduced:

H. F. No. 1517, A bill for an act relating to higher education; requiring development of a plan to encourage students to finish their degree programs; requiring reports.

The bill was read for the first time and referred to the Committee on Higher Education Policy and Finance.

McDonald, Norton, Peterson and Zerwas introduced:

H. F. No. 1518, A bill for an act relating to human services; changing provisions governing critical access dental providers; amending Minnesota Statutes 2014, section 256B.76, subdivision 4.

The bill was read for the first time and referred to the Committee on Health and Human Services Reform.

Swedzinski, Hoppe, Anzelc, Atkins, Lillie and Sanders introduced:

H. F. No. 1519, A bill for an act relating to lawful gambling; modifying provisions relating to gambling managers; providing for certain raffles; increasing prize limits; prescribing local regulation; amending Minnesota Statutes 2014, sections 349.12, subdivision 19; 349.167, subdivisions 1, 2; 349.173; 349.181, subdivision 2; 349.211, subdivision 1; 349.213, subdivision 1.

The bill was read for the first time and referred to the Committee on Commerce and Regulatory Reform.

Hoppe introduced:

H. F. No. 1520, A bill for an act relating to state government; changing Legislative Coordinating Commission provisions; clarifying retirement plan coverage for certain part-time legislative employees; amending Minnesota Statutes 2014, sections 3.225, subdivisions 2, 3, 5; 3.303, subdivisions 3, 10; 352.01, subdivisions 2a, 2b; 352D.02, subdivision 1.

The bill was read for the first time and referred to the Committee on Government Operations and Elections Policy.

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Hoppe introduced:

H. F. No. 1521, A bill for an act relating to retirement; Minnesota State Retirement System; clarifying retirement plan coverage for certain part-time legislative employees; amending Minnesota Statutes 2014, sections 352.01, subdivisions 2a, 2b; 352D.02, subdivision 1.

The bill was read for the first time and referred to the Committee on Government Operations and Elections Policy.

O'Neill, Garofalo, Anzelc and Lueck introduced:

H. F. No. 1522, A bill for an act relating to energy; allowing public utility commission approval for rate recovery for natural gas extension projects; proposing coding for new law in Minnesota Statutes, chapter 216B.

The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

Wagenius introduced:

H. F. No. 1523, A bill for an act relating to environment; establishing Minnesota Environmental Contamination Awareness Act; amending Minnesota Statutes 2014, section 115C.06, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 115B.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources Policy and Finance.

Zerwas; Scott; Halverson; Ward; Smith; Johnson, B.; Vogel; Hoppe and Rosenthal introduced:

H. F. No. 1524, A bill for an act relating to civil actions; regulating interest on verdicts, awards, and judgments; amending Minnesota Statutes 2014, section 549.09, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 549.

The bill was read for the first time and referred to the Committee on Civil Law and Data Practices.

Loon; Masin; Nash; Halverson; Smith; Loonan; Anderson, S.; Pugh and Selcer introduced:

H. F. No. 1525, A bill for an act relating to transportation; modifying the composition of the Transportation Advisory Board of the Metropolitan Council; amending Minnesota Statutes 2014, section 473.146, subdivision 4.

The bill was read for the first time and referred to the Committee on Government Operations and Elections Policy.

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Albright; Masin; Halverson; Mack; Smith; Loon; Loonan; Anderson, S.; Pugh and Selcer introduced:

H. F. No. 1526, A bill for an act relating to transportation; appropriating funds for a suburban connections demonstration project.

The bill was read for the first time and referred to the Committee on Transportation Policy and Finance.

Bernardy, Ward, Mariani, Clark, Davnie, Yarusso, Fischer, Youakim and Hansen introduced:

H. F. No. 1527, A bill for an act relating to education; lowering the age of compulsory attendance from seven to six; amending Minnesota Statutes 2014, sections 120A.22, subdivisions 5, 11; 120A.24, subdivision 1; 121A.15, subdivisions 2, 3, 4; 121A.17, subdivision 5; 125A.02, subdivision 1a; 125A.28.

The bill was read for the first time and referred to the Committee on Education Innovation Policy.

Bernardy, Mariani, Ward, Fischer, Yarusso and Hansen introduced:

H. F. No. 1528, A bill for an act relating to education; clarifying advanced placement and international baccalaureate program requirements; appropriating money; amending Minnesota Statutes 2014, section 120B.13, subdivisions 1, 4.

The bill was read for the first time and referred to the Committee on Education Innovation Policy.

Fenton, Miller, O'Driscoll, Pugh, Lohmer, Nash, Christensen and Wills introduced:

H. F. No. 1529, A bill for an act relating to education; creating Education Savings Accounts for Students with Special Needs Act; appropriating money.

The bill was read for the first time and referred to the Committee on Education Innovation Policy.

Rosenthal, Davids, Gunther, Lien, Anzelc, Gruenhagen, Metsa, Hornstein, Simonson, Erhardt and Kiel introduced:

H. F. No. 1530, A bill for an act relating to taxation; income; providing tax credits to encourage charitable contributions; establishing an endow Minnesota program; appropriating money; amending Minnesota Statutes 2014, 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 Job Growth and Energy Affordability Policy and Finance.

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Urdahl, Franson, Marquart, Simonson, Lien and O'Neill introduced:

H. F. No. 1531, A bill for an act relating to natural resources; appropriating money for grants recommended by the Greater Minnesota Regional Parks and Trails Commission.

The bill was read for the first time and referred to the Committee on Legacy Funding Finance.

Atkins and Hausman introduced:

H. F. No. 1532, A bill for an act relating to economic development; requiring a report regarding the economic impact of noncompete agreements.

The bill was read for the first time and referred to the Committee on Commerce and Regulatory Reform.

Allen and Moran introduced:

H. F. No. 1533, A bill for an act relating to human services; expanding general assistance eligibility; amending Minnesota Statutes 2014, sections 256D.01, subdivision 1a; 256D.05, subdivision 1.

The bill was read for the first time and referred to the Committee on Health and Human Services Reform.

REQUEST PURSUANT TO RULE 4.31

Pursuant to rule 4.31, Winkler gave notice that he is requesting the return to the House of H. F. No. 43 from the Committee on Government Operations and Elections Policy.

CALENDAR FOR THE DAY

H. F. No. 2 was reported to the House.

Mariani moved to amend H. F. No. 2, the third engrossment, as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2014, section 122A.09, subdivision 4, is amended to read:

Subd. 4. License and rules. (a) The board must adopt rules to license public school teachers and interns subject to chapter 14.

(b) The board must adopt rules requiring a person to pass a college-level skills examination in reading, writing, and mathematics or attain either ~~a composite score composed of the average of the~~ essentially equivalent passing scores in English and writing, reading, and mathematics on the ACT Plus Writing recommended by the board, or ~~an equivalent composite score composed of the average of the~~ essentially equivalent passing scores in critical reading, mathematics, and writing on the SAT recommended by the board, as a requirement for initial teacher licensure, except that the board may issue up to two temporary, one-year teaching licenses to an otherwise qualified candidate

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who has not yet passed the college-level skills exam or attained ~~the requisite composite score~~ essentially equivalent passing scores on the ACT Plus Writing or SAT. Such rules must require college and universities offering a board‑approved teacher preparation program to provide remedial assistance to persons who did not achieve a qualifying score on the college-level skills examination or attain ~~the requisite composite score~~ essentially equivalent passing scores on the ACT Plus Writing or SAT, including those for whom English is a second language. The requirement to pass a reading, writing, and mathematics college-level skills examination or attain ~~the requisite composite score~~ essentially equivalent passing scores on the ACT Plus Writing or SAT does not apply to nonnative English speakers, as verified by qualified Minnesota school district personnel or Minnesota higher education faculty, who, after meeting the content and pedagogy requirements under this subdivision, apply for a teaching license to provide direct instruction in their native language or world language instruction under section 120B.022, subdivision 1. A teacher candidate's official ACT Plus Writing or SAT composite score report to the board must not be more than ten years old at the time of licensure.

(c) The board must adopt rules to approve teacher preparation programs. The board, upon the request of a postsecondary student preparing for teacher licensure or a licensed graduate of a teacher preparation program, shall assist in resolving a dispute between the person and a postsecondary institution providing a teacher preparation program when the dispute involves an institution's recommendation for licensure affecting the person or the person's credentials. At the board's discretion, assistance may include the application of chapter 14.

(d) The board must provide the leadership and adopt rules for the redesign of teacher education programs to implement a research based, results-oriented curriculum that focuses on the skills teachers need in order to be effective. The board shall implement new systems of teacher preparation program evaluation to assure program effectiveness based on proficiency of graduates in demonstrating attainment of program outcomes. Teacher preparation programs including alternative teacher preparation programs under section 122A.245, among other programs, must include a content-specific, board-approved, performance-based assessment that measures teacher candidates in three areas: planning for instruction and assessment; engaging students and supporting learning; and assessing student learning. The board's redesign rules must include creating flexible, specialized teaching licenses, credentials, and other endorsement forms to increase students' participation in language immersion programs, world language instruction, career development opportunities, work-based learning, early college courses and careers, career and technical programs, Montessori schools, and project and place-based learning, among other career and college ready learning offerings.

(e) The board must adopt rules requiring candidates for initial licenses to pass an examination of general pedagogical knowledge and examinations of licensure-specific teaching skills. The rules shall be effective by September 1, 2001. The rules under this paragraph also must require candidates for initial licenses to teach prekindergarten or elementary students to pass, as part of the examination of licensure-specific teaching skills, test items assessing the candidates' knowledge, skill, and ability in comprehensive, scientifically based reading instruction under section 122A.06, subdivision 4, and their knowledge and understanding of the foundations of reading development, the development of reading comprehension, and reading assessment and instruction, and their ability to integrate that knowledge and understanding.

(f) The board must adopt rules requiring teacher educators to work directly with elementary or secondary school teachers in elementary or secondary schools to obtain periodic exposure to the elementary or secondary teaching environment.

(g) The board must grant licenses to interns and to candidates for initial licenses based on appropriate professional competencies that are aligned with the board's licensing system and students' diverse learning needs. All teacher candidates must have preparation in English language development and content instruction for English learners in order to be able to effectively instruct the English learners in their classrooms. The board must include these licenses in a statewide differentiated licensing system that creates new leadership roles for successful experienced teachers premised on a collaborative professional culture dedicated to meeting students' diverse

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learning needs in the 21st century, recognizes the importance of cultural and linguistic competencies, including the ability to teach and communicate in culturally competent and aware ways, and formalizes mentoring and induction for newly licensed teachers provided through a teacher support framework.

(h) The board must design and implement an assessment system which requires a candidate for an initial license and first continuing license to demonstrate the abilities necessary to perform selected, representative teaching tasks at appropriate levels.

(i) The board must receive recommendations from local committees as established by the board for the renewal of teaching licenses. The board must require licensed teachers who are renewing a continuing license to include in the renewal requirements further preparation in English language development and specially designed content instruction in English for English learners.

(j) The board must grant life licenses to those who qualify according to requirements established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 214.10. The board must not establish any expiration date for application for life licenses.

(k) The board must adopt rules that require all licensed teachers who are renewing their continuing license to include in their renewal requirements further preparation in the areas of using positive behavior interventions and in accommodating, modifying, and adapting curricula, materials, and strategies to appropriately meet the needs of individual students and ensure adequate progress toward the state's graduation rule.

(l) In adopting rules to license public school teachers who provide health-related services for disabled children, the board shall adopt rules consistent with license or registration requirements of the commissioner of health and the health-related boards who license personnel who perform similar services outside of the school.

(m) The board must adopt rules that require all licensed teachers who are renewing their continuing license to include in their renewal requirements further reading preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect until they are approved by law. Teachers who do not provide direct instruction including, at least, counselors, school psychologists, school nurses, school social workers, audiovisual directors and coordinators, and recreation personnel are exempt from this section.

(n) The board must adopt rules that require all licensed teachers who are renewing their continuing license to include in their renewal requirements further preparation, first, in understanding the key warning signs of early-onset mental illness in children and adolescents and then, during subsequent licensure renewal periods, preparation may include providing a more in-depth understanding of students' mental illness trauma, accommodations for students' mental illness, parents' role in addressing students' mental illness, Fetal Alcohol Spectrum Disorders, autism, the requirements of section 125A.0942 governing restrictive procedures, and de-escalation methods, among other similar topics.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to all candidates seeking initial teacher licensure, including those holding a temporary, one-year teaching license.

Sec. 2. Minnesota Statutes 2014, section 122A.18, subdivision 2, is amended to read:

Subd. 2. Teacher and support personnel qualifications. (a) The Board of Teaching must issue licenses under its jurisdiction to persons the board finds to be qualified and competent for their respective positions.

(b) The board must require a person to pass an examination of college-level skills in reading, writing, and mathematics or attain either ~~a composite score composed of the average of~~ the passing scores in English and writing, reading, and mathematics on the ACT Plus Writing recommended by the board, or an equivalent ~~composite score~~

~~Journal of the House - 23rd Day - Thursday, March 5, 2015 - Top of Page 658~~

~~composed of the average of the~~ passing scores in critical reading, mathematics, and writing on the SAT recommended by the board, before being granted an initial teaching license to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special education programs, except that the board may issue up to two temporary, one-year teaching licenses to an otherwise qualified candidate who has not yet passed the college-level skills exam or attained ~~the requisite composite score~~ essentially equivalent passing scores on the ACT Plus Writing or SAT. The board must require colleges and universities offering a board approved teacher preparation program to make available upon request remedial assistance that includes a formal diagnostic component to persons enrolled in their institution who did not achieve a qualifying score on the college-level skills examination or attain ~~the requisite composite~~ ACT Plus Writing or SAT ~~score~~ essentially equivalent passing scores, including those for whom English is a second language. The colleges and universities must make available assistance in the specific academic areas of candidates' deficiency. School districts may make available upon request similar, appropriate, and timely remedial assistance that includes a formal diagnostic component to those persons employed by the district who completed their teacher education program, who did not achieve a qualifying score on the college-level skills examination, or attain ~~the requisite composite~~ ACT Plus Writing or SAT ~~score~~ essentially equivalent passing scores, and who received a temporary license to teach in Minnesota. The Board of Teaching shall report annually to the education committees of the legislature on the total number of teacher candidates during the most recent school year taking the college-level skills examination, the number who achieve a qualifying score on the examination, the number who do not achieve a qualifying score on the examination, the distribution of all candidates' scores, ~~the number of candidates who have taken the examination at least once before, and the number of candidates who have taken the examination at least once before and achieve a qualifying score,~~ and the candidates who have not attained ~~the requisite composite~~ ACT Plus Writing or SAT ~~score~~ essentially equivalent passing scores or have not passed a content or pedagogy exam, disaggregated by categories of race, ethnicity, and eligibility for financial aid.

(c) The Board of Teaching must grant continuing licenses only to those persons who ~~have met~~ meet board criteria for granting a continuing license, which includes passing the college-level skills examination in reading, writing, and mathematics or attaining ~~the requisite composite~~ ACT Plus Writing or SAT ~~score~~ essentially equivalent passing scores consistent with paragraph (b), and the exceptions in section 122A.09, subdivision 4, paragraph (b), that are consistent with this paragraph. The requirement to pass a reading, writing, and mathematics college-level skills examination, or attain ~~the requisite composite score~~ essentially equivalent passing scores on the ACT Plus Writing or SAT does not apply to nonnative English speakers, as verified by qualified Minnesota school district personnel or Minnesota higher education faculty, who, after meeting the content and pedagogy requirements under this subdivision, apply for a teaching license to provide direct instruction in their native language or world language instruction under section 120B.022, subdivision 1. A teacher candidate's official ACT Plus Writing or SAT ~~composite score~~ passing scores report to the board must not be more than ten years old at the time of licensure.

(d) All colleges and universities approved by the board of teaching to prepare persons for teacher licensure must include in their teacher preparation programs a common core of teaching knowledge and skills to be acquired by all persons recommended for teacher licensure. Among other requirements, teacher candidates must demonstrate the knowledge and skills needed to provide appropriate instruction to English learners to support and accelerate their academic literacy, including oral academic language, and achievement in content areas in a regular classroom setting. This common core shall meet the standards developed by the interstate new teacher assessment and support consortium in its 1992 "model standards for beginning teacher licensing and development." Amendments to standards adopted under this paragraph are covered by chapter 14. The board of teaching shall report annually to the education committees of the legislature on the performance of teacher candidates on common core assessments of knowledge and skills under this paragraph during the most recent school year.

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Sec. 3. Minnesota Statutes 2014, section 122A.20, subdivision 1, is amended to read:

Subdivision 1. Grounds for revocation, suspension, or denial. (a) The Board of Teaching or Board of School Administrators, whichever has jurisdiction over a teacher's licensure, may, on the written complaint of the school board employing a teacher, a teacher organization, or any other interested person, refuse to issue, refuse to renew, suspend, or revoke a teacher's license to teach for any of the following causes:

(1) immoral character or conduct;

(2) failure, without justifiable cause, to teach for the term of the teacher's contract;

(3) gross inefficiency or willful neglect of duty;

(4) failure to meet licensure requirements; or

(5) fraud or misrepresentation in obtaining a license.

The written complaint must specify the nature and character of the charges.

(b) The Board of Teaching or Board of School Administrators, whichever has jurisdiction over a teacher's licensure, shall refuse to issue, refuse to renew, or automatically revoke a teacher's license to teach without the right to a hearing upon receiving a certified copy of a conviction showing that the teacher has been convicted of child abuse, as defined in section 609.185, sex trafficking in the first degree under section 609.322, subdivision 1, sex trafficking in the second degree under section 609.322, subdivision 1a, engaging in hiring or agreeing to hire a minor to engage in prostitution under section 609.324, subdivision 1, sexual abuse under section 609.342, 609.343, 609.344, 609.345, 609.3451, subdivision 3, or 617.23, subdivision 3, solicitation of children to engage in sexual conduct or communication of sexually explicit materials to children under section 609.352, interference with privacy under section 609.746 or stalking under section 609.749 and the victim was a minor, using minors in a sexual performance under section 617.246, or possessing pornographic works involving a minor under section 617.247, or any other offense not listed in this paragraph that requires the person to register as a predatory offender under section 243.166, or a crime under a similar law of another state or the United States. The board shall send notice of this licensing action to the district in which the teacher is currently employed.

(c) A person whose license to teach has been revoked, not issued, or not renewed under paragraph (b), may petition the board to reconsider the licensing action if the person's conviction for child abuse or sexual abuse is reversed by a final decision of the Court of Appeals or the Supreme Court or if the person has received a pardon for the offense. The petitioner shall attach a certified copy of the appellate court's final decision or the pardon to the petition. Upon receiving the petition and its attachment, the board shall schedule and hold a disciplinary hearing on the matter under section 214.10, subdivision 2, unless the petitioner waives the right to a hearing. If the board finds that, notwithstanding the reversal of the petitioner's criminal conviction or the issuance of a pardon, the petitioner is disqualified from teaching under paragraph (a), clause (1), the board shall affirm its previous licensing action. If the board finds that the petitioner is not disqualified from teaching under paragraph (a), clause (1), it shall reverse its previous licensing action.

(d) For purposes of this subdivision, the Board of Teaching is delegated the authority to suspend or revoke coaching licenses.

Sec. 4. Minnesota Statutes 2014, section 122A.21, subdivision 2, is amended to read:

Subd. 2. Licensure via portfolio. (a) An eligible candidate may use licensure via portfolio to obtain an initial licensure or to add a licensure field, consistent with ~~the~~ applicable Board of Teaching licensure rules.

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(b) A candidate for initial licensure must submit to the Educator Licensing Division at the department one portfolio demonstrating pedagogical competence and one portfolio demonstrating content competence.

(c) A candidate seeking to add a licensure field must submit to the Educator Licensing Division at the department one portfolio demonstrating content competence.

(d) The Board of Teaching must notify a candidate who submits a portfolio under paragraph (b) or (c) within 90 calendar days after the portfolio is received whether or not the portfolio was approved. If the portfolio was not approved, the board must immediately inform the candidate how to revise the portfolio to successfully demonstrate the requisite competence. The candidate may resubmit a revised portfolio at any time and the Educator Licensing Division at the department must approve or disapprove the portfolio within 60 calendar days of receiving it.

(e) A candidate must pay to the executive secretary of the Board of Teaching a $300 fee for the first portfolio submitted for review and a $200 fee for any portfolio submitted subsequently. The fees must be paid to the executive secretary of the Board of Teaching. The revenue generated from the fee must be deposited in an education licensure portfolio account in the special revenue fund. The fees set by the Board of Teaching are nonrefundable for applicants not qualifying for a license. The Board of Teaching may waive or reduce fees for candidates based on financial need.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to all portfolios submitted to the Educator Licensing Division at the department after that date.

Sec. 5. Minnesota Statutes 2014, section 122A.23, is amended by adding a subdivision to read:

Subd. 3. Teacher licensure agreements with adjoining states. (a) Notwithstanding other law to the contrary, the Board of Teaching must enter into interstate agreements for teacher licensure to allow fully certified teachers from adjoining states to transfer their certification to Minnesota and receive a full, five-year continuing teaching license without having to complete any additional exams or other preparation requirements. The board must enter into these interstate agreements only after determining that the rigor of the teacher licensure or certification requirements in the adjoining state is commensurate with the rigor of Minnesota's teacher licensure requirements. The board may limit an interstate agreement to particular content fields or grade levels based on established priorities or identified shortages. This subdivision does not apply to out-of-state applicants holding only a provisional teaching license.

(b) The Board of Teaching is strongly encouraged to work with designated authorities in adjoining states to establish reciprocal interstate teacher licensure agreements under this section.

Sec. 6. TEACHER LICENSURE AGREEMENTS WITH ADJOINING STATES.

The Board of Teaching must prepare and submit a report to the K-12 education committees of the legislature by February 15, 2016, indicating the number, contracting states, and extent of the interstate agreements for teacher licensure under Minnesota Statutes, section 122A.23, subdivision 3, reached between August 1 and December 31, 2015.

EFFECTIVE DATE. This section is effective the day following final enactment."

Amend the title accordingly

Davnie moved to amend the Mariani amendment to H. F. No. 2, the third engrossment, as follows:

Page 8, after line 26, insert:

"Sec. 6. Minnesota Statutes 2014, section 122A.40, subdivision 13, is amended to read:

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Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph (b), a board may discharge a continuing-contract teacher, effective immediately, upon any of the following grounds:

(1) immoral conduct, insubordination, or conviction of a felony;

(2) conduct unbecoming a teacher which requires the immediate removal of the teacher from classroom or other duties;

(3) failure without justifiable cause to teach without first securing the written release of the school board;

(4) gross inefficiency which the teacher has failed to correct after reasonable written notice;

(5) willful neglect of duty; or

(6) continuing physical or mental disability subsequent to a 12 months leave of absence and inability to qualify for reinstatement in accordance with subdivision 12.

For purposes of this paragraph, conduct unbecoming a teacher includes an unfair discriminatory practice described in section 363A.13.

Prior to discharging a teacher under this paragraph, the board must notify the teacher in writing and state its ground for the proposed discharge in reasonable detail. Within ten days after receipt of this notification the teacher may make a written request for a hearing before the board and it shall be granted before final action is taken. The board may suspend a teacher with pay pending the conclusion of the hearing and determination of the issues raised in the hearing after charges have been filed which constitute ground for discharge. If a teacher has been charged with a felony and the underlying conduct that is the subject of the felony charge is a ground for a proposed immediate discharge, the suspension pending the conclusion of the hearing and determination of the issues may be without pay. If a hearing under this paragraph is held, the board must reimburse the teacher for any salary or compensation withheld if the final decision of the board or the arbitrator does not result in a penalty to or suspension, termination, or discharge of the teacher.

(b) A board must discharge a continuing-contract teacher, effective immediately, upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's license has been revoked due to a conviction for child abuse or, as defined in section 609.185; sex trafficking in the first degree under section 609.322, subdivision 1; sex trafficking in the second degree under section 609.322, subdivision 1a; engaging in hiring or agreeing to hire a minor to engage in prostitution under section 609.324, subdivision 1; sexual abuse under section 609.342, 609.343, 609.344, 609.345, 609.3451, subdivision 3, or 617.23, subdivision 3; solicitation of children to engage in sexual conduct or communication of sexually explicit materials to children under section 609.352; interference with privacy under section 609.746 or stalking under section 609.749 and the victim was a minor; using minors in a sexual performance under section 617.246; possessing pornographic works involving a minor under section 617.247; or any other offense not listed in this paragraph that requires the person to register as a predatory offender under section 243.166, or a crime under a similar law of another state or the United States.

(c) When a teacher is discharged under paragraph (b) or when the commissioner makes a final determination of child maltreatment involving a teacher under section 626.556, subdivision 11, the school principal or other person having administrative control of the school must include in the teacher's employment record the information contained in the record of the disciplinary action or the final maltreatment determination, consistent with the definition of public data under section 13.41, subdivision 5, and must provide the Board of Teaching and the licensing division at the department with the necessary and relevant information to enable the Board of Teaching and the department's licensing division to fulfill their statutory and administrative duties related to issuing, renewing, suspending, or revoking a teacher's license. Information received by the Board of Teaching or the licensing division at the department under this paragraph is governed by section 13.41 or other applicable law governing data of the receiving entity. In addition to the background check required under section 123B.03, a school board or other school hiring authority must contact the Board of Teaching and the department to determine

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whether the teacher's license has been suspended or revoked, consistent with the discharge and final maltreatment determinations identified in this paragraph. Unless restricted by federal or state data practices law or by the terms of a collective bargaining agreement, the responsible authority for a school district must disseminate to another school district private personnel data on a current or former teacher employee or contractor of the district, including the results of background investigations, if the requesting school district seeks the information because the subject of the data has applied for employment with the requesting school district.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 7. Minnesota Statutes 2014, section 122A.41, subdivision 6, is amended to read:

Subd. 6. Grounds for discharge or demotion. (a) Except as otherwise provided in paragraph (b), causes for the discharge or demotion of a teacher either during or after the probationary period must be:

(1) immoral character, conduct unbecoming a teacher, or insubordination;

(2) failure without justifiable cause to teach without first securing the written release of the school board having the care, management, or control of the school in which the teacher is employed;

(3) inefficiency in teaching or in the management of a school, consistent with subdivision 5, paragraph (b);

(4) affliction with a communicable disease must be considered as cause for removal or suspension while the teacher is suffering from such disability; or

(5) discontinuance of position or lack of pupils.

For purposes of this paragraph, conduct unbecoming a teacher includes an unfair discriminatory practice described in section 363A.13.

(b) A probationary or continuing-contract teacher must be discharged immediately upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's license has been revoked due to a conviction for child abuse or, as defined in section 609.185; sex trafficking in the first degree under section 609.322, subdivision 1; sex trafficking in the second degree under section 609.322, subdivision 1a; engaging in hiring or agreeing to hire a minor to engage in prostitution under section 609.324, subdivision 1; sexual abuse under section 609.342, 609.343, 609.344, 609.345, 609.3451, subdivision 3, or 617.23, subdivision 3; solicitation of children to engage in sexual conduct or communication of sexually explicit materials to children under section 609.352; interference with privacy under section 609.746 or stalking under section 609.749 and the victim was a minor; using minors in a sexual performance under section 617.246; possessing pornographic works involving a minor under section 617.247; or any other offense not listed in this paragraph that requires the person to register as a predatory offender under section 243.166, or a crime under a similar law of another state or the United States.

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district private personnel data on a current or former teacher employee or contractor of the district, including the results of background investigations, if the requesting school district seeks the information because the subject of the data has applied for employment with the requesting school district.

EFFECTIVE DATE. This section is effective the day following final enactment."

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 Davnie amendment to the Mariani amendment and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

The motion prevailed and the amendment to the amendment, as amended, was adopted.

Erickson moved to amend the Mariani amendment, as amended, to H. F. No. 2, the third engrossment, as follows:

Page 8, after line 26, insert:

"Sec. 6. Minnesota Statutes 2014, section 122A.40, subdivision 5, is amended to read:

Subd. 5. Probationary period. (a) The first three consecutive years of a teacher's first teaching experience in Minnesota in a single district is deemed to be a probationary period of employment, and, the probationary period in each district in which the teacher is thereafter employed shall be one year. The school board must adopt a plan for written evaluation of teachers during the probationary period that is consistent with subdivision 8. Evaluation must occur at least three times periodically throughout each school year for a teacher performing services during that school year; the first evaluation must occur within the first 90 days of teaching service. Days devoted to parent-teacher conferences, teachers' workshops, and other staff development opportunities and days on which a teacher is absent from school must not be included in determining the number of school days on which a teacher performs services. Except as otherwise provided in paragraph (b), during the probationary period any annual contract with any teacher may or may not be renewed (1) as the school board shall see fit, or (2) consistent with the negotiated unrequested leave of absence plan in effect under subdivision 10. However, the board must give any such teacher whose contract it declines to renew for the following school year written notice to that effect before July 1. If the teacher requests reasons for any nonrenewal of a teaching contract, the board must give the teacher its reason in writing, including a statement that appropriate supervision was furnished describing the nature and the extent of such supervision furnished the teacher during the employment by the board, within ten days after receiving such request. The school board may, after a hearing held upon due notice, discharge a teacher during the probationary period for cause, effective immediately, under section 122A.44.

(b) A board must discharge a probationary teacher, effective immediately, upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's license has been revoked due to a conviction for child abuse or sexual abuse.

(c) A probationary teacher whose first three years of consecutive employment are interrupted for active military service and who promptly resumes teaching consistent with federal reemployment timelines for uniformed service personnel under United States Code, title 38, section 4312(e), is considered to have a consecutive teaching experience for purposes of paragraph (a).

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(d) A probationary teacher whose first three years of consecutive employment are interrupted for maternity, paternity, or medical leave and who resumes teaching within 12 months of when the leave began is considered to have a consecutive teaching experience for purposes of paragraph (a) if the probationary teacher completes a combined total of three years of teaching service immediately before and after the leave.

(e) A probationary teacher must complete at least 120 days of teaching service each year during the probationary period. Days devoted to parent-teacher conferences, teachers' workshops, and other staff development opportunities and days on which a teacher is absent from school do not count as days of teaching service under this paragraph.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 7. Minnesota Statutes 2014, section 122A.40, subdivision 8, is amended to read:

Subd. 8. Development, evaluation, and peer coaching for continuing contract teachers. (a) To improve student learning and success, a school board and an exclusive representative of the teachers in the district, consistent with paragraph (b), may develop a teacher evaluation and peer review process for probationary and continuing contract teachers through joint agreement. If a school board and the exclusive representative of the teachers do not agree to an annual teacher evaluation and peer review process, then the school board and the exclusive representative of the teachers must implement the state teacher evaluation plan under paragraph (c). The process must include having trained observers serve as peer coaches or having teachers participate in professional learning communities, consistent with paragraph (b).

(b) To develop, improve, and support qualified teachers and effective teaching practices and improve student learning and success, the annual evaluation process for teachers:

(1) must, for probationary teachers, provide for all evaluations required under subdivision 5;

(2) must establish a three-year professional review cycle for each teacher that includes an individual growth and development plan, a peer review process, and at least one summative evaluation performed by a qualified and trained evaluator such as a school administrator. For the years when a tenured teacher is not evaluated by a qualified and trained evaluator, the teacher must be evaluated by a peer review;

(3) must be based on professional teaching standards established in rule;

(4) must coordinate staff development activities under sections 122A.60 and 122A.61 with this evaluation process and teachers' evaluation outcomes;

(5) may provide time during the school day and school year for peer coaching and teacher collaboration;

(6) may include job-embedded learning opportunities such as professional learning communities;

(7) may include mentoring and induction programs;

(8) must include an option for teachers to develop and present a portfolio demonstrating evidence of reflection and professional growth, consistent with section 122A.18, subdivision 4, paragraph (b), and include teachers' own performance assessment based on student work samples and examples of teachers' work, which may include video among other activities for the summative evaluation;

(9) must use data from valid and reliable assessments aligned to state and local academic standards and must use state and local measures of student growth and literacy that may include value-added models or student learning goals to determine 35 percent of teacher evaluation results;

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(10) must use longitudinal data on student engagement and connection, and other student outcome measures explicitly aligned with the elements of curriculum for which teachers are responsible, including academic literacy, oral academic language, and achievement of content areas of English learners;

(11) must require qualified and trained evaluators such as school administrators to perform summative evaluations and ensure school districts and charter schools provide for effective evaluator training specific to teacher development and evaluation;

(12) must give teachers not meeting professional teaching standards under clauses (3) through (11) support to improve through a teacher improvement process that includes established goals and timelines; and

(13) must discipline a teacher for not making adequate progress in the teacher improvement process under clause (12) that may include a last chance warning, termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or other discipline a school administrator determines is appropriate.

Data on individual teachers generated under this subdivision are personnel data under section 13.43. The observation and interview notes of peer coaches may only be disclosed to other school officials with the consent of the teacher being coached.

(c) The department, in consultation with parents who may represent parent organizations and teacher and administrator representatives appointed by their respective organizations, representing the Board of Teaching, the Minnesota Association of School Administrators, the Minnesota School Boards Association, the Minnesota Elementary and Secondary Principals Associations, Education Minnesota, and representatives of the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota Chamber of Commerce, and Minnesota postsecondary institutions with research expertise in teacher evaluation, must create and publish a teacher evaluation process that complies with the requirements in paragraph (b) and applies to all teachers under this section and section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher evaluation and peer review process. The teacher evaluation process created under this subdivision does not create additional due process rights for probationary teachers under subdivision 5.

(d) Consistent with the measures of teacher effectiveness under this subdivision:

(1) for students in kindergarten through grade 4, a school administrator must not place a student in consecutive school years in the classroom of a teacher with the lowest evaluation rating in the previous school year unless no other teacher at the school teaches that grade; and

(2) for students in grades 5 through 12, a school administrator must not place students in consecutive school years in the classroom of a teacher with the lowest evaluation rating in the previous school year unless no other teacher at the school teaches that subject area and grade.

EFFECTIVE DATE. This section is effective for the 2017-2018 school year and later.

Sec. 8. Minnesota Statutes 2014, section 122A.40, subdivision 10, is amended to read:

Subd. 10. Negotiated unrequested leave of absence. (a) The school board and the exclusive bargaining representative of the teachers ~~may~~ must negotiate a plan, consistent with subdivision 8, providing for unrequested leave of absence without pay or fringe benefits for as many teachers as may be necessary because of discontinuance of position, lack of pupils, financial limitations, or merger of classes caused by consolidation of districts. ~~Failing to successfully negotiate such a plan, the provisions of subdivision 11 shall apply.~~ The negotiated plan must not include provisions which would result in the exercise of seniority by a teacher holding only a provisional license,

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other than a vocational education license, ~~contrary to the provisions of subdivision 11, paragraph (c)~~ if required for the position, or the reinstatement of a teacher holding only a provisional license, other than a vocational education license~~, contrary to the provisions of subdivision 11, paragraph (e)~~ required for the position. The provisions of section 179A.16 do not apply for the purposes of this subdivision.

(b) Beginning in the 2017-2018 school year and later, and notwithstanding any law to the contrary, a school board must place teachers on unrequested leave of absence based on their subject matter licensure fields, most recent evaluation outcomes and effectiveness category or rating under subdivision 8, and other, locally determined criteria such as teacher seniority, and may include both probationary teachers and continuing contract teachers within an effectiveness category or rating. For purposes of placing a teacher on unrequested leave of absence or recalling a teacher from unrequested leave of absence, a school board is not required to reassign a teacher with more seniority to accommodate the seniority claims of a teacher who is similarly licensed and effective but with less seniority. Nothing in this paragraph permits a school board to use a teacher's remuneration as a basis for making unrequested leave of absence decisions. Any executed employment contract between the school board and the exclusive representative of the teachers must contain the negotiated unrequested leave of absence plan. The school board must publish in a readily accessible format the unrequested leave of absence plan it negotiates under this paragraph.

(c) A teacher who receives notice of being placed on unrequested leave of absence under paragraph (b) may submit to the board, within 14 days of receiving the notice, a written request for a hearing before a neutral hearing officer to establish whether the district met the following teacher evaluation requirements under subdivision 8: if the teacher is a probationary teacher, all evaluations required under subdivision 5 were provided; a three-year professional review cycle was established for the teacher; any summative evaluation of the teacher was performed by a qualified and trained evaluator; a peer review evaluation occurred in any year when the teacher was not evaluated by a qualified and trained evaluator; and if the teacher did not meet professional teaching standards, a teacher improvement process with goals and timelines was established. The school board and the exclusive representative of the teachers must agree on a panel of people and a process to select the person to hear the matter. The hearing officer must issue a decision within 14 days of the request for the hearing. Nothing in this subdivision prevents a school board and the exclusive representative of the teachers from negotiating a different process for determining whether the teacher evaluation requirements listed in this subdivision were met.

(d) For purposes of this subdivision, a provisional license is a license to teach issued by the Board of Teaching under a waiver or variance.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to negotiated plans for unrequested leave of absence agreed to on or after that date.

Sec. 9. Minnesota Statutes 2014, section 122A.40, subdivision 11, is amended to read:

Subd. 11. Unrequested leave of absence. (a) The board may place on unrequested leave of absence, without pay or fringe benefits, as many teachers as may be necessary because of discontinuance of position, lack of pupils, financial limitations, or merger of classes caused by consolidation or reorganization of districts under chapter 123A. The unrequested leave is effective at the close of the school year.

(b) In placing teachers on unrequested leave in the 2014-2015 through 2016-2017 school years only, the board is governed by the ~~following~~ provisions: in this subdivision.

~~(a)~~ (c) The board may place probationary teachers on unrequested leave first in the inverse order of their employment. A teacher who has acquired continuing contract rights must not be placed on unrequested leave of absence while probationary teachers are retained in positions for which the teacher who has acquired continuing contract rights is licensed;.

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~~(b)~~ (d) Teachers who have acquired continuing contract rights shall be placed on unrequested leave of absence in fields in which they are licensed in the inverse order in which they were employed by the school district. In the case of equal seniority, the order in which teachers who have acquired continuing contract rights shall be placed on unrequested leave of absence in fields in which they are licensed is negotiable;.

~~(c)~~ (e) Notwithstanding the provisions of paragraph ~~(b)~~ (d), a teacher is not entitled to exercise any seniority when that exercise results in that teacher being retained by the district in a field for which the teacher holds only a provisional license, as defined by the board of teaching, unless that exercise of seniority results in the placement on unrequested leave of absence of another teacher who also holds a provisional license in the same field. The provisions of this paragraph do not apply to vocational education licenses; required for the available positions.

~~(d)~~ (f) Notwithstanding paragraphs ~~(a), (b), and~~ (c), (d), and (e), if the placing of a probationary teacher on unrequested leave before a teacher who has acquired continuing rights, the placing of a teacher who has acquired continuing contract rights on unrequested leave before another teacher who has acquired continuing contract rights but who has greater seniority, or the restriction imposed by the provisions of paragraph ~~(c)~~ (e) would place the district in violation of its affirmative action program, the district may retain the probationary teacher, the teacher with less seniority, or the provisionally licensed teacher;.

~~(e)~~ (g) For purposes of placing a teacher on unrequested leave of absence or recalling a teacher from unrequested leave of absence, nothing in this subdivision requires a school board to reassign a teacher to accommodate the seniority claims of a teacher who is similarly licensed and effective but with less seniority.

(h) Teachers placed on unrequested leave of absence must be reinstated to the positions from which they have been given leaves of absence or, if not available, to other available positions in the school district in fields in which they are licensed. Reinstatement must be in the inverse order of placement on leave of absence. A teacher must not be reinstated to a position in a field in which the teacher holds only a provisional license, other than a vocational education license, while another teacher who holds a nonprovisional license in the same field remains on unrequested leave. The order of reinstatement of teachers who have equal seniority and who are placed on unrequested leave in the same school year is negotiable;.

~~(f)~~ (i) Appointment of a new teacher must not be made while there is available, on unrequested leave, a teacher who is properly licensed to fill such vacancy, unless the teacher fails to advise the school board within 30 days of the date of notification that a position is available to that teacher who may return to employment and assume the duties of the position to which appointed on a future date determined by the board;.

~~(g)~~ (j) A teacher placed on unrequested leave of absence may engage in teaching or any other occupation during the period of this leave;.

~~(h)~~ (k) The unrequested leave of absence must not impair the continuing contract rights of a teacher or result in a loss of credit for previous years of service;.

~~(i)~~ (l) Consistent with subdivision 10, the unrequested leave of absence of a teacher who is categorized as effective or better under subdivision 8, who is placed on unrequested leave of absence, and who is not reinstated shall continue for a period of five years, after which the right to reinstatement ~~shall terminate~~ terminates. The teacher's right to reinstatement ~~shall~~ also ~~terminate~~ terminates if the teacher fails to file with the board by April 1 of ~~any~~ each year a written statement requesting reinstatement;.

(m) Consistent with subdivision 10, the unrequested leave of absence of a teacher who is categorized as ineffective or less under subdivision 8, who is placed on unrequested leave of absence, and who is not reinstated continues for the following school year only, after which the teacher's right to reinstatement terminates. The teacher's right to reinstatement also terminates if the teacher fails to file with the board by April 1 in that following school year a written statement requesting reinstatement.

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~~(j)~~ (n) The same provisions applicable to terminations of probationary or continuing contracts in subdivisions 5 and 7 must apply to placement on unrequested leave of absence;.

~~(k)~~ (o) Nothing in this subdivision shall be construed to impair the rights of teachers placed on unrequested leave of absence to receive unemployment benefits if otherwise eligible.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 10. Minnesota Statutes 2014, section 122A.41, subdivision 2, is amended to read:

Subd. 2. Probationary period; discharge or demotion. (a) All teachers in the public schools in cities of the first class during the first three years of consecutive employment shall be deemed to be in a probationary period of employment during which period any annual contract with any teacher may, or may not, be renewed (1) as the school board, after consulting with the peer review committee charged with evaluating the probationary teachers under subdivision 3, shall see fit, or (2) consistent with the negotiated plan for discontinuing or terminating teachers in effect under subdivision 14. The school site management team or the school board if there is no school site management team, shall adopt a plan for a written evaluation of teachers during the probationary period according to subdivisions 3 and 5. Evaluation by the peer review committee charged with evaluating probationary teachers under subdivision 3 shall occur at least three times periodically throughout each school year for a teacher performing services during that school year; the first evaluation must occur within the first 90 days of teaching service. Days devoted to parent-teacher conferences, teachers' workshops, and other staff development opportunities and days on which a teacher is absent from school shall not be included in determining the number of school days on which a teacher performs services. The school board may, during such probationary period, discharge or demote a teacher for any of the causes as specified in this code. A written statement of the cause of such discharge or demotion shall be given to the teacher by the school board at least 30 days before such removal or demotion shall become effective, and the teacher so notified shall have no right of appeal therefrom.

(b) A probationary teacher whose first three years of consecutive employment are interrupted for active military service and who promptly resumes teaching consistent with federal reemployment timelines for uniformed service personnel under United States Code, title 38, section 4312(e), is considered to have a consecutive teaching experience for purposes of paragraph (a).

(c) A probationary teacher whose first three years of consecutive employment are interrupted for maternity, paternity, or medical leave and who resumes teaching within 12 months of when the leave began is considered to have a consecutive teaching experience for purposes of paragraph (a) if the probationary teacher completes a combined total of three years of teaching service immediately before and after the leave.

(d) A probationary teacher must complete at least 120 days of teaching service each year during the probationary period. Days devoted to parent-teacher conferences, teachers' workshops, and other staff development opportunities and days on which a teacher is absent from school do not count as days of teaching service under this paragraph.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 11. Minnesota Statutes 2014, section 122A.41, subdivision 5, is amended to read:

Subd. 5. Development, evaluation, and peer coaching for continuing contract teachers. (a) To improve student learning and success, a school board and an exclusive representative of the teachers in the district, consistent with paragraph (b), may develop an annual teacher evaluation and peer review process for probationary and nonprobationary teachers through joint agreement. If a school board and the exclusive representative of the teachers in the district do not agree to an annual teacher evaluation and peer review process, then the school board and the exclusive representative of the teachers must implement the state teacher evaluation plan developed under paragraph (c). The process must include having trained observers serve as peer coaches or having teachers participate in professional learning communities, consistent with paragraph (b).

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(b) To develop, improve, and support qualified teachers and effective teaching practices and improve student learning and success, the annual evaluation process for teachers:

(1) must, for probationary teachers, provide for all evaluations required under subdivision 2;

(3) must be based on professional teaching standards established in rule;

(4) must coordinate staff development activities under sections 122A.60 and 122A.61 with this evaluation process and teachers' evaluation outcomes;

(5) may provide time during the school day and school year for peer coaching and teacher collaboration;

(6) may include job-embedded learning opportunities such as professional learning communities;

(7) may include mentoring and induction programs;

(10) must use longitudinal data on student engagement and connection and other student outcome measures explicitly aligned with the elements of curriculum for which teachers are responsible, including academic literacy, oral academic language, and achievement of English learners;

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Elementary and Secondary Principals Associations, Education Minnesota, and representatives of the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota Chamber of Commerce, and Minnesota postsecondary institutions with research expertise in teacher evaluation, must create and publish a teacher evaluation process that complies with the requirements in paragraph (b) and applies to all teachers under this section and section 122A.40 for whom no agreement exists under paragraph (a) for an annual teacher evaluation and peer review process. The teacher evaluation process created under this subdivision does not create additional due process rights for probationary teachers under subdivision 2.

(d) Consistent with the measures of teacher effectiveness under this subdivision:

EFFECTIVE DATE. This section is effective for the 2017-2018 school year and later.

Sec. 12. Minnesota Statutes 2014, section 122A.41, subdivision 14, is amended to read:

Subd. 14. Services terminated by discontinuance or lack of pupils; preference given. (a) A teacher whose services are terminated on account of discontinuance of position or lack of pupils must receive first consideration for other positions in the district for which that teacher is qualified. In the event it becomes necessary to discontinue one or more positions in the 2014-2015 through the 2016-2017 school years, in making such discontinuance, teachers must receive first consideration for other positions in the district for which that teacher is qualified and must be discontinued ~~in any department~~ in the inverse order in which they were employed~~, unless~~.

(b) Beginning in the 2017-2018 school year and later, a board and the exclusive representative of teachers in the district must negotiate a plan ~~providing otherwise.~~, consistent with subdivision 5, for discontinuing and terminating teachers under this subdivision based on their subject matter licensure fields, most recent evaluation outcomes and effectiveness category or rating under subdivision 5, and other, locally determined criteria such as teacher seniority, and may include both probationary teachers and continuing contract teachers within an effectiveness category or rating. For purposes of discharging, demoting, or recalling a teacher whose services are discontinued or terminated under this subdivision, a school board is not required to reassign a teacher with more seniority to accommodate the seniority claims of a teacher who is similarly licensed and effective but with less seniority. Nothing in this paragraph permits a school board to use a teacher's remuneration as a basis for discontinuing or terminating a teacher. Any executed employment contract between the school board and the exclusive representative of the teachers must contain the negotiated plan for discontinuing or terminating teachers. The school board must publish in a readily accessible format any plan it negotiates for discontinuing or terminating teachers under this paragraph.

(c) A teacher who receives notice of discontinuance or termination under paragraph (b) may submit to the board, within 14 days of receiving the notice, a written request for a hearing before a neutral hearing officer to establish whether the district met the following teacher evaluation requirements under subdivision 5: if the teacher is a probationary teacher, all evaluations required under subdivision 2 were provided; a three-year professional review cycle was established for the teacher; any summative evaluation of the teacher was performed by a qualified and trained evaluator; a peer review evaluation occurred in any year when the teacher was not evaluated by a qualified and trained evaluator; and if the teacher did not meet professional teaching standards, a teacher improvement process with goals and timelines was established. The school board and the exclusive representative of the teachers must agree on a panel of people and a process to select the person to hear the matter. The hearing officer must issue

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a decision within 14 days of the request for the hearing. Nothing in this subdivision prevents a school board and the exclusive representative of the teachers from negotiating a different process for determining whether the teacher evaluation requirements listed in this subdivision were met.

~~(b)~~ (d) Notwithstanding the provisions of ~~clause~~ paragraph (a), for the 2014-2015 through 2016-2017 school years, a teacher is not entitled to exercise any seniority when that exercise results in that teacher being retained by the district in a field for which the teacher holds only a provisional license, as defined by the Board of Teaching, unless that exercise of seniority results in ~~the termination of~~ terminating the services, on account of discontinuance of position or lack of pupils, of another teacher who also holds a provisional license in the same field. The provisions of this ~~clause~~ paragraph do not apply to vocational education licenses.

~~(c)~~ (e) Notwithstanding the provisions of ~~clause~~ paragraph (a), for the 2014-2015 through 2016-2017 school years, a teacher must not be reinstated to a position in a field in which the teacher holds only a provisional license, other than a vocational education license, while another teacher who holds a nonprovisional license in the same field is available for reinstatement.

EFFECTIVE DATE. This section is effective the day following final enactment and applies to negotiated plans for discontinuing or terminating teachers agreed to on or after that date.

Sec. 13. Minnesota Statutes 2014, section 123A.75, subdivision 1, is amended to read:

Subdivision 1. Teacher assignment. (a) As of the effective date of a consolidation in which a district is divided or the dissolution of a district and its attachment to two or more existing districts, each teacher employed by an affected district shall be assigned to the newly created or enlarged district on the basis of a ratio of the pupils assigned to each district according to the new district boundaries. The district receiving the greatest number of pupils must be assigned the most effective teacher under section 122A.40, subdivision 8, with the greatest seniority, and the remaining teachers must be alternately assigned to each district from most to least effective and with most to least seniority within each category or rating of effectiveness until the district receiving the fewest pupils has received its ratio of teachers who will not be retiring before the effective date of the consolidation or dissolution.

(b) Notwithstanding paragraph (a), the board and the exclusive representative of teachers in each district involved in the consolidation or dissolution and attachment may negotiate a plan for assigning teachers to each newly created or enlarged district.

(c) Notwithstanding any other law to the contrary, the provisions of this section apply only to the extent they are consistent with section 122A.40, subdivisions 8, 10, and 11.

EFFECTIVE DATE. This section is effective the day following final enactment.

Sec. 14. Minnesota Statutes 2014, section 179A.20, is amended by adding a subdivision to read:

Subd. 4a. Unrequested leave of absence for teachers. A school board and the exclusive representative of the teachers may not execute a contract effective for the 2017-2018 school year or later unless the contract contains a plan for unrequested leave of absence under section 122A.40, subdivision 10, or a plan for discontinuing or terminating teachers under section 122A.41, subdivision 14.

EFFECTIVE DATE. This section is effective the day following final enactment."

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Page 8, after line 33, insert:

"Sec. 7. REPEALER.

Minnesota Statutes 2014, section 122A.40, subdivision 11, is repealed.

EFFECTIVE DATE. This section is effective beginning in the 2017-2018 school year and later."

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 Erickson amendment to the Mariani amendment, as amended, and the roll was called. There were 69 yeas and 62 nays as follows:

Those who voted in the affirmative were: