Journal of the House - 9th Day - Thursday, January 26, 2017

A quorum was present.

Anselmo, Bly, Cornish, Flanagan, Slocum and Wills were excused.

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.

Journal of the House - 9th Day - Thursday, January 26, 2017 - Top of Page 190

REPORTS OF STANDING COMMITTEES AND DIVISIONS

Knoblach from the Committee on Ways and Means to which was referred:

H. F. No. 3, A bill for an act relating to transportation; authorizing and governing implementation of requirements of the federal REAL ID Act; amending certain requirements governing driver's licenses and Minnesota identification cards; amending imposition of certain fees; requiring legislative reporting; appropriating money; amending Minnesota Statutes 2016, sections 171.01, by adding subdivisions; 171.017; 171.04, by adding a subdivision; 171.06, subdivisions 1, 2, 3, by adding a subdivision; 171.07, subdivisions 1, 3, 4, 9a; 171.071, subdivision 3; 171.072; 171.12, by adding subdivisions; 171.27; proposing coding for new law in Minnesota Statutes, chapter 171; repealing Laws 2009, chapter 92, section 1, as amended.

Reported the same back with the following amendments:

Page 22, delete section 23

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 5, delete "appropriating money;"

With the recommendation that when so amended the bill be placed on the General Register.

The report was adopted.

O'Driscoll from the Committee on Government Operations and Elections Policy to which was referred:

H. F. No. 6, A bill for an act relating to elections; providing for Public Utilities Commission members to be elected at the state general election; amending Minnesota Statutes 2016, sections 10A.01, subdivision 10; 10A.09, subdivision 6a; 10A.27, subdivision 1; 204B.06, subdivision 4a; 204B.11, subdivision 1; 204B.32, subdivision 2; 204D.02, subdivision 1; 204D.08, subdivision 6; 204D.27, by adding a subdivision; 209.02, subdivision 1; 211B.01, subdivision 3; 216A.03, subdivision 3, by adding subdivisions; 290.06, subdivision 23; proposing coding for new law in Minnesota Statutes, chapter 204D; repealing Minnesota Statutes 2016, section 216A.03, subdivisions 1, 1a.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2016, section 216A.03, subdivision 1, is amended to read:

Subdivision 1. Members. The Public Utilities Commission shall consist of ~~five~~ nine members, eight of whom shall each represent one of the state's congressional districts, and one member appointed at large. At the time of appointment, each member, except for the at-large appointee, must reside in the congressional district the member is to represent. The terms of members shall be six years and until their successors have been appointed and qualified. Each commissioner shall be appointed by the governor by and with the advice and consent of the senate. Not more than ~~three~~ five commissioners shall belong to the same political party. ~~At least one commissioner must have been domiciled at the time of appointment outside the seven-county metropolitan area. If the membership of the~~

~~Journal of the House - 9th Day - Thursday, January 26, 2017 - Top of Page 191~~

commission after July 31, 1986, does not consist of at least one member domiciled at the time of appointment outside the seven-county metropolitan area, the membership shall conform to this requirement following normal attrition of the present commissioners. The governor when selecting commissioners shall give consideration to persons learned in the law or persons who have engaged in the profession of engineering, public accounting, property and utility valuation, finance, physical or natural sciences, production agriculture, or natural resources as well as being representative of the general public.

~~For purposes of this subdivision, "seven-county metropolitan area" means Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington Counties.~~

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

Sec. 2. Minnesota Statutes 2016, section 216A.03, is amended by adding a subdivision to read:

Subd. 2a. Transition. (a) Until the governor has appointed commissioners from each congressional district and one at-large commissioner, this subdivision governs membership of the commission.

(b) Members of the commission as of July 1, 2017, shall continue to serve until the expiration of their terms.

(c) No later than October 1, 2017, the governor shall appoint commissioners from the first, second, seventh, and eighth congressional districts for terms to begin January 2, 2018.

(d) No later than October 1, 2018, the governor shall appoint a commissioner from the third congressional district for a term to begin January 8, 2019.

(e) No later than October 1, 2019, the governor shall appoint a commissioner from the fourth congressional district for a term to begin January 7, 2020.

(f) No later than October 1, 2020, the governor shall appoint a commissioner from the fifth congressional district for a term to begin January 5, 2021.

(g) No later than October 1, 2021, the governor shall appoint a commissioner from the sixth congressional district for a term to begin January 4, 2022.

(h) No later than October 1, 2022, the governor shall appoint a commissioner to serve at large for a term to begin January 4, 2023.

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

Delete the title and insert:

"A bill for an act relating to utilities; modifying membership on the Public Utilities Commission; amending Minnesota Statutes 2016, section 216A.03, subdivision 1, by adding a subdivision."

With the recommendation that when so amended the bill be re-referred to the Committee on Job Growth and Energy Affordability Policy and Finance.

The report was adopted.

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Hamilton from the Committee on Agriculture Finance to which was referred:

H. F. No. 14, A bill for an act relating to capital investment; appropriating money for the Rural Finance Authority; authorizing the sale and issuance of state bonds.

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

The report was adopted.

Anderson, P., from the Committee on Agriculture Policy to which was referred:

H. F. No. 40, A bill for an act relating to taxation; property; allowing property to qualify for agricultural homestead classification under certain conditions; amending Minnesota Statutes 2016, section 273.124, subdivision 14.

Reported the same back with the recommendation that the bill be re-referred to the Property Tax and Local Government Finance Division.

The report was adopted.

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

H. F. No. 46, A bill for an act relating to real property; making miscellaneous changes to the filing of certificates of value, recording, registration, and other provisions affecting real estate; amending Minnesota Statutes 2016, sections 272.115, subdivision 1, by adding a subdivision; 507.0943; 508.06; 508.25; 508.29; 508.421, subdivision 1a; 508.47, subdivision 7; 508.671; 508.71, subdivision 3; 508.81; 508.82, subdivision 1; 508A.06; 508A.25; 508A.29; 508A.421, subdivision 1a; 508A.47, subdivision 7; 508A.71, subdivision 3; 508A.82, subdivision 1; 559.23.

Reported the same back with the following amendments:

Page 2, line 25, after "page" insert "and the consideration paid for the real estate described in the contract for deed"

Page 4, line 9, strike ";" and insert "and"

Page 7, line 9, after "lands" insert "and the legal description of the adjoining lands"

Page 7, line 11, strike "filed for record" and insert "recorded" and after "with the" insert "registrar of titles and entered as a memorial on the petitioner's certificate of title, if applicable, and on the certificates of title for any affected adjoining registered lands, and recorded with the" and after "county recorder" insert "if the petitioner's land or any affected parcels are unregistered lands, and entered in the tract index for the affected lands" and strike "If any of the"

Page 7, strike line 12

Page 7, line 13, strike everything before "When"

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Page 7, line 30, after the period, insert "The final order shall refer to the affected registered lands by certificate of title number, and shall refer to the affected abstract lands by legal description."

Page 19, line 4, strike "or in the office of registrar of titles or both, if necessary"

With the recommendation that when so amended the bill be placed on the General Register.

The report was adopted.

Dettmer from the Veterans Affairs Division to which was referred:

H. F. No. 119, A bill for an act relating to taxation; homestead valuation exclusion for disabled veterans; modifying benefit eligibility for a deceased veteran's spouse; amending Minnesota Statutes 2016, section 273.13, subdivision 34.

Reported the same back with the following amendments:

Page 3, line 4, after "veteran" insert "dying after December 31, 2011,"

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

The report was adopted.

Anderson, S., from the Committee on State Government Finance to which was referred:

H. F. No. 148, A bill for an act relating to capital investment; appropriating money for improvements at Historic Fort Snelling; authorizing the sale and issuance of state bonds.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Capital Investment without further recommendation.

The report was adopted.

Dettmer from the Veterans Affairs Division to which was referred:

H. F. No. 232, A bill for an act relating to arts and cultural heritage; appropriating money for improving facilities at Veterans Rest Camp and Camp Legionville.

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

The report was adopted.

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Knoblach from the Committee on Ways and Means to which was referred:

H. F. No. 234, A bill for an act relating to energy; amending Public Utilities Commission regulation of municipal electric utilities and rural electric cooperatives; amending Minnesota Statutes 2016, section 216B.164, subdivisions 5, 9, by adding a subdivision.

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

The report was adopted.

Knoblach from the Committee on Ways and Means to which was referred:

H. F. No. 235, A bill for an act relating to energy; renaming and repurposing the renewable development account; terminating certain solar energy incentives; appropriating money; amending Minnesota Statutes 2016, sections 16B.323; 116C.779, subdivision 1; 116C.7792; 216C.41, subdivisions 2, 5a; proposing coding for new law in Minnesota Statutes, chapter 216C; repealing Minnesota Statutes 2016, sections 116C.779, subdivision 3; 174.187; 216C.411; 216C.412; 216C.413; 216C.414; 216C.415; 216C.416; Laws 2013, chapter 85, article 6, section 11.

Reported the same back with the following amendments:

Page 7, delete subdivision 2 and insert:

"Subd. 2. Appropriation. (a) Unspent money remaining in the account established under Minnesota Statutes 2016, section 216C.412, on July 1, 2017, must be transferred to the energy fund account in the special revenue fund established under section 116C.779, subdivision 1.

(b) There is annually appropriated from the energy fund account in the special revenue fund established in section 116C.779 to the commissioner of commerce money sufficient to make the incentive payments required under Minnesota Statutes 2016, section 216C.415.

(c) Notwithstanding Minnesota Statutes 2016, section 216C.412, subdivision 1, none of this appropriation may be used for administrative costs."

Page 8, after line 12, insert:

"Sec. 8. APPROPRIATION.

$100,000 in fiscal year 2018 and $100,000 in fiscal year 2019 are appropriated from the energy fund account in the special revenue fund established in Minnesota Statutes, section 116C.779, subdivision 1, to the commissioner of commerce to administer the "Made in Minnesota" solar energy production incentive program in Minnesota Statutes, section 216C.417. Any remaining unspent funds cancel back to the energy fund account at the end of the biennium.

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

Page 8, after line 17, insert:

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

Renumber the sections in sequence

With the recommendation that when so amended the bill be placed on the General Register.

The report was adopted.

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Davids from the Committee on Taxes to which was referred:

H. F. No. 244, A bill for an act relating to taxation; property; providing a waiver for certain local board of appeals and equalization trainings.

Reported the same back with the following amendments:

Amend the title as follows:

Page 1, line 2, delete "taxation; property" and insert "property tax administration"

With the recommendation that when so amended the bill be placed on the General Register.

The report was adopted.

Scott from the Committee on Civil Law and Data Practices Policy to which was referred:

H. F. No. 251, A bill for an act relating to public safety; modifying admissibility of seat belt use for evidentiary purposes; repealing Minnesota Statutes 2016, section 169.685, subdivision 4.

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

The report was adopted.

Anderson, P., from the Committee on Agriculture Policy to which was referred:

H. F. No. 259, A bill for an act relating to agriculture; eliminating the cost-share requirement for schools that receive a tractor rollover protection grant; amending Minnesota Statutes 2016, section 17.119, subdivision 1.

Reported the same back with the following amendments:

Page 1, line 19, delete everything after "effective" and insert "retroactively from July 1, 2016."

Amend the title as follows:

Page 1, line 3, after the semicolon, insert "providing a retroactive effective date;"

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

The report was adopted.

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Dettmer from the Veterans Affairs Division to which was referred:

H. F. No. 261, A bill for an act relating to veterans; appropriating money to public safety for a grant for training community safety personnel about the use of de-escalation techniques.

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

The report was adopted.

Hamilton from the Committee on Agriculture Finance to which was referred:

H. F. No. 284, A bill for an act relating to capital investment; appropriating money for equipment and instruments for the agriculture laboratory.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Ways and Means.

The report was adopted.

Scott from the Committee on Civil Law and Data Practices Policy to which was referred:

H. F. No. 291, A bill for an act relating to data practices; clarifying the classification of convention center data; amending Minnesota Statutes 2016, section 13.55, subdivision 2.

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

The report was adopted.

Dettmer from the Veterans Affairs Division to which was referred:

H. F. No. 321, A bill for an act relating to transportation; providing certain exemptions from taxes and fees for eligible veterans with a disability, including certain registration taxes, license plates fees, title fees, driver's license and identification card fees, and motor vehicle sales taxes; amending Minnesota Statutes 2016, sections 163.051, subdivision 1; 168.012, by adding a subdivision; 168A.29, by adding a subdivision; 171.01, by adding a subdivision; 171.06, by adding a subdivision; 297B.03.

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

The report was adopted.

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Scott from the Committee on Civil Law and Data Practices Policy to which was referred:

H. F. No. 322, A bill for an act relating to public safety; authorizing governmental units to sue to recover for the public safety response costs related to unlawful assemblies and public nuisances; proposing coding for new law in Minnesota Statutes, chapter 609.

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

The report was adopted.

Hamilton from the Committee on Agriculture Finance to which was referred:

H. F. No. 378, A bill for an act relating to capital investment; appropriating money for the Agricultural Utilization Research Institute upgrades.

Reported the same back with the recommendation that the bill be re-referred to the Committee on Ways and Means.

The report was adopted.

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

H. F. No. 386, A bill for an act relating to taxation; income; providing a credit for donations to fund K-12 scholarships; extending the K-12 education credit to tuition; amending Minnesota Statutes 2016, sections 290.0131, by adding a subdivision; 290.0133, by adding a subdivision; 290.0674, subdivision 1, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 290.

Reported the same back with the following amendments:

Page 1, line 12, delete "290.0682" and insert "290.0693"

Page 1, line 19, delete "290.0682" and insert "290.0693"

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

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 3, 46, 234, 235 and 244 were read for the second time.

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INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Peterson and Davids introduced:

H. F. No. 484, A bill for an act relating to taxation; property; freezing the state general levy at the 2017 level; amending Minnesota Statutes 2016, section 275.025, subdivision 1.

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

Anderson, P.; Poppe; Hamilton and Marquart introduced:

H. F. No. 485, A bill for an act relating to education finance; establishing an agricultural educator grant program; appropriating money.

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

Garofalo, Lien and Albright introduced:

H. F. No. 486, A bill for an act relating to health; allowing a subtraction from state business tax for medical cannabis manufacturers; amending Minnesota Statutes 2016, sections 290.0132, by adding a subdivision; 290.0134, by adding a subdivision.

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

Gunther introduced:

H. F. No. 487, A bill for an act relating to taxation; sales and use; providing exemptions for nonprofit animal shelters; amending Minnesota Statutes 2016, section 297A.70, by adding a subdivision.

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

Bly; Murphy, E.; Applebaum; Lesch; Johnson, S.; Kunesh-Podein; Thissen; Metsa and Murphy, M., introduced:

H. F. No. 488, A bill for an act relating to health; guaranteeing that health care is available and affordable for every Minnesotan; establishing the Minnesota Health Plan, Minnesota Health Board, Minnesota Health Fund, Office of Health Quality and Planning, ombudsman for patient advocacy, and auditor general for the Minnesota Health Plan; requesting a 1332 waiver; authorizing rulemaking; appropriating money; amending Minnesota Statutes 2016, sections 13.3806, by adding a subdivision; 14.03, subdivisions 2, 3; 15A.0815, subdivision 2; proposing coding for new law as Minnesota Statutes, chapter 62W.

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

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Fenton, Erickson, Peterson, Loon, Davnie, Ward, Slocum, Bennett and Heintzeman introduced:

H. F. No. 489, A bill for an act relating to education finance; providing a grant to the Minnesota Principals Academy; appropriating money.

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

Lien introduced:

H. F. No. 490, 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 2016, section 256R.53, subdivision 2.

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

Clark, Schultz, Moran and Mahoney introduced:

H. F. No. 491, A bill for an act relating to health; amending the Lead Poisoning Prevention Act; amending landlord requirements for renting residential property; creating the Dustin Luke Shields Act; amending radon and lead disclosure requirements; providing a property tax benefit for lead hazard reductions; providing a civil cause of action; appropriating money for lead and healthy homes grants; amending Minnesota Statutes 2016, sections 144.9501, subdivision 2; 504B.001, subdivision 14; 504B.161, subdivision 1; 513.57; 513.61; proposing coding for new law in Minnesota Statutes, chapters 144; 290.

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

Lueck introduced:

H. F. No. 492, A bill for an act relating to capital improvements; appropriating money for an ATV trail connection; 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.

Sundin, Lueck, Sandstede, Ecklund, Considine, Rarick and Hausman introduced:

H. F. No. 493, A bill for an act relating to transportation; capital investment; appropriating money for marked Trunk Highway 73 realignment; authorizing the sale and issuance of state bonds.

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

Wills introduced:

H. F. No. 494, A bill for an act relating to education; special education teacher licensing; proposing coding for new law in Minnesota Statutes, chapter 122A.

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

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Sundin introduced:

H. F. No. 495, A bill for an act relating to capital investment; appropriating money for public infrastructure for the Big Lake Area Sanitary District; 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.

Schultz, Bly and Sandstede introduced:

H. F. No. 496, A bill for an act relating to health insurance; seeking federal waiver to allow individual consumers the opportunity to obtain coverage through the state employees group insurance plan (SEGIP).

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

Sundin, Slocum, Sandstede, Considine and Ecklund introduced:

H. F. No. 497, A bill for an act relating to taxation; authorizing the Cromwell Wright Area Fire District as a special taxing district; amending Minnesota Statutes 2016, section 275.066.

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

Quam introduced:

H. F. No. 498, A bill for an act relating to motor vehicles; imposing an alternative fuel vehicle tax; proposing coding for new law in Minnesota Statutes, chapter 296A.

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

Quam introduced:

H. F. No. 499, A bill for an act relating to public safety; establishing an urban bicycle lane use permit and a bicycle safety education program; imposing a fee; appropriating money; amending Minnesota Statutes 2016, section 169.222, subdivision 4, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 171.

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

Schomacker introduced:

H. F. No. 500, A bill for an act relating to human services; making policy and technical changes to the nursing facility payment system; requiring a report; amending Minnesota Statutes 2016, sections 144.0724, subdivision 6; 256B.431, subdivision 30, by adding a subdivision; 256B.434, subdivision 4; 256R.02, subdivisions 4, 17, 18, 19, 22, 42, 52, by adding subdivisions; 256R.07, subdivision 1, by adding a subdivision; 256R.10, by adding a

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subdivision; 256R.13, subdivision 4; 256R.37; 256R.40, subdivisions 1, 5; 256R.41; 256R.47; 256R.49; proposing coding for new law in Minnesota Statutes, chapter 256R; repealing Minnesota Statutes 2016, sections 256R.06, subdivision 7; 256R.54, subdivisions 5, 6, 7, 8, 9.

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

Fenton, Slocum, Schomacker, Kiel, Backer, Maye Quade, Peterson and Jurgens introduced:

H. F. No. 501, A bill for an act relating to human services; appropriating money to voice response suicide prevention and mental health crisis response program and to expand statewide text message suicide prevention and mental health crisis response program.

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

Lueck introduced:

H. F. No. 502, A bill for an act relating to taxation; sales and use; allocating the estimated revenue from the sale of motor vehicle tires to the highway user tax distribution fund; amending Minnesota Statutes 2016, section 297A.94.

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

Hansen, Lillie, Lien, Halverson, Gunther and Franke introduced:

H. F. No. 503, A bill for an act relating to taxation; individual income; allowing a subtraction for Central Intelligence Agency retirees; amending Minnesota Statutes 2016, section 290.0132, by adding a subdivision.

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

Gunther introduced:

H. F. No. 504, A bill for an act relating to taxation; sales and use; providing a retroactive exemption and refund for construction materials and supplies purchased by certain nonprofit economic development corporations; appropriating money.

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

Dettmer; Mahoney; Maye Quade; Lesch; Hilstrom; Lee; Hoppe; Zerwas; Heintzeman; Cornish; Kresha; Howe; Franson; Lueck; Hansen; Bly; Johnson, S.; Metsa; Flanagan; O'Driscoll; Poston; Daniels; Jurgens and Bliss introduced:

H. F. No. 505, A bill for an act relating to military veterans; appropriating money for a grant to the veterans defense project.

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

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Gunther introduced:

H. F. No. 506, A bill for an act relating to capital investment; appropriating money for the Green Giant Museum in Blue Earth; 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.

Gunther introduced:

H. F. No. 507, A bill for an act relating to capital investment; appropriating money for phase I of the city of Jackson's Memorial Park redevelopment; 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.

Gruenhagen, Loonan, Drazkowski and Hertaus introduced:

H. F. No. 508, A bill for an act relating to wages; modifying certain prevailing wage provisions; authorizing rulemaking; amending Minnesota Statutes 2016, sections 13.79, by adding a subdivision; 116J.871, subdivision 1, by adding a subdivision; 177.43, subdivision 7; 177.44, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 177.

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

Gunther introduced:

H. F. No. 509, A bill for an act relating to capital investment; appropriating money for the city of Winnebago's northwest area utility improvements; 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.

Gunther introduced:

H. F. No. 510, A bill for an act relating to capital investment; appropriating money for public infrastructure for an industrial park in the city of Blue Earth; 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.

Fenton introduced:

H. F. No. 511, A bill for an act relating to arts and cultural heritage; appropriating money from the arts and cultural heritage fund for restoration and programming for the Miller Barn in Woodbury.

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

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Rarick introduced:

H. F. No. 512, A bill for an act relating to capital investment; appropriating money for water infrastructure projects in Pine City; 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.

Swedzinski, Ecklund, Allen, Urdahl, West and Davids introduced:

H. F. No. 513, A bill for an act relating to taxation; individual income; modifying the working family credit for American Indians living on reservations; amending Minnesota Statutes 2016, section 290.0671, subdivision 1.

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

Sundin, Rarick and Davids introduced:

H. F. No. 514, A bill for an act relating to taxation; property; exempting certain Indian-owned property from taxation; amending Minnesota Statutes 2016, section 272.02, by adding a subdivision.

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

Wills introduced:

H. F. No. 515, A bill for an act relating to contracts; regulating automatic renewal clauses in consumer contracts; proposing coding for new law in Minnesota Statutes, chapter 325G.

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

Loeffler; Carlson, L.; Schultz; Marquart; Slocum; Metsa; Maye Quade; Lee; Halverson; Bernardy; Hortman; Youakim; Dehn, R.; Clark; Allen; Sandstede and Omar introduced:

H. F. No. 516, A bill for an act relating to taxation; individual income; modifying the working family credit; amending Minnesota Statutes 2016, section 290.0671, subdivisions 1, 7.

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

Albright; Hertaus; Uglem; Dehn, R., and Carlson, L., introduced:

H. F. No. 517, A bill for an act relating to capital investment; appropriating money for a regional medical examiner's facility; authorizing the sale and issuance of state bonds.

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

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Zerwas; Murphy, E.; Dean, M.; Hamilton; Schomacker; Liebling; Albright; Backer; Halverson; Flanagan; McDonald; Lohmer and Considine introduced:

H. F. No. 518, A bill for an act relating to human services; establishing a complex pediatric home care nursing category for home care nursing services; increasing the payment rate for home care nursing services; amending Minnesota Statutes 2016, section 256B.0654, subdivision 1, by adding a subdivision.

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

Franson and Metsa introduced:

H. F. No. 519, A bill for an act relating to health; extending paid leave benefits to living organ donors; amending Minnesota Statutes 2016, section 181.945, subdivisions 2, 4; repealing Minnesota Statutes 2016, section 181.9456.

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

Wills introduced:

H. F. No. 520, A bill for an act relating to taxation; individual income; establishing a subtraction and credit for contributions to a Minnesota college savings plan; amending Minnesota Statutes 2016, section 290.0132, by adding a subdivision; 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 and Career Readiness Policy and Finance.

Wills introduced:

H. F. No. 521, A bill for an act relating to taxation; income; allowing a subtraction and establishing a refundable credit for certain contributions for higher education expenses; appropriating money; amending Minnesota Statutes 2016, section 290.0132, by adding a subdivision; 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 and Career Readiness Policy and Finance.

Omar, Hornstein, Clark, Davnie, Lee, Allen, Ward and Loeffler introduced:

H. F. No. 522, A bill for an act relating to taxation; sales and use; providing an exemption for car sharing services from the motor vehicle rental tax and fee; amending Minnesota Statutes 2016, section 297A.64, subdivisions 2, 4.

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

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Bly, Hausman and Hornstein introduced:

H. F. No. 523, A bill for an act relating to transportation; appropriating money for certain intercity passenger rail projects.

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

Garofalo introduced:

H. F. No. 524, A bill for an act relating to transportation; appropriating money to conduct a highway mapping study.

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

Garofalo introduced:

H. F. No. 525, A bill for an act relating to public safety; traffic regulations; establishing speed limit on marked Interstate Highway 35E in St. Paul at 55 miles per hour; amending Minnesota Statutes 2016, section 169.14, by adding a subdivision.

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

Zerwas; Albright; Hamilton; Murphy, E., and Halverson introduced:

H. F. No. 526, A bill for an act relating to health occupations; creating a state Board of Occupational Therapy Practice; amending Minnesota Statutes 2016, sections 148.6402, subdivision 4; 148.6405; 148.6408, subdivision 2; 148.6410, subdivision 2; 148.6412, subdivision 2; 148.6415; 148.6418, subdivisions 1, 2, 4, 5; 148.6420, subdivisions 1, 3, 5; 148.6423; 148.6425, subdivisions 2, 3; 148.6428; 148.6443, subdivisions 5, 6, 7, 8; 148.6445, subdivisions 1, 10; 148.6448; 214.01, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 148; repealing Minnesota Statutes 2016, sections 148.6402, subdivision 2; 148.6450.

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

Hamilton, Marquart, McDonald, Petersburg and Applebaum introduced:

H. F. No. 527, A bill for an act relating to taxation; property; modifying the wind energy production tax; amending Minnesota Statutes 2016, section 272.029, subdivision 2.

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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Kresha introduced:

H. F. No. 528, A bill for an act relating to capital investment; appropriating money for rehabilitation of the Soo Line Trail bridge in Morrison County; 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.

Zerwas, Considine, Gunther, Loonan, Hausman and Johnson, C., introduced:

H. F. No. 529, A bill for an act relating to human services; allowing interactive video for targeted case management; amending Minnesota Statutes 2016, sections 256B.0621, subdivision 10; 256B.0625, subdivision 20, by adding a subdivision; 256B.0924, by adding a subdivision.

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

Hertaus introduced:

H. F. No. 530, A bill for an act relating to the city of Wayzata; tax increment financing; extending the five-year rule for Tax Increment Financing District 3.

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

Thissen, Garofalo, Knoblach, Theis and Dehn, R., introduced:

H. F. No. 531, A bill for an act relating to capital investment; appropriating money for the Minneapolis People's Center.

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

Anderson, P., introduced:

H. F. No. 532, A bill for an act relating to taxation; providing a sales tax exemption for certain construction materials; appropriating money; amending Minnesota Statutes 2016, sections 297A.71, by adding a subdivision; 297A.75, subdivisions 1, 2, 3.

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

Lueck introduced:

H. F. No. 533, A bill for an act relating to taxation; authorizing the Garrison, Kathio, West Mille Lacs Lake Sanitary District to impose a local sales and use tax.

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

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Nelson introduced:

H. F. No. 534, A bill for an act relating to counties; authorizing the appointment of specified county offices; amending Minnesota Statutes 2016, sections 375.08; 375A.10, subdivision 5; 375A.12, subdivision 2; 382.01; 382.02; proposing coding for new law in Minnesota Statutes, chapter 375A.

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

Baker and Urdahl introduced:

H. F. No. 535, A bill for an act relating to education finance; qualifying specific on-site education programs located at a care and treatment facility as learning year programs; appropriating money.

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

Baker introduced:

H. F. No. 536, A bill for an act relating to taxation; authorizing the city of New London to impose a local sales and use tax and issue bonds for specified projects.

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

Baker introduced:

H. F. No. 537, A bill for an act relating to taxation; authorizing the city of Spicer to impose a local sales and use tax for specified projects.

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

Christensen introduced:

H. F. No. 538, A bill for an act relating to education; requiring a personal learning plan for third grade students who do not read at grade level; requiring that a student who does not meet high school standards be informed that admission to a public school is free until age 21; amending Minnesota Statutes 2016, sections 120B.12, subdivision 3; 120B.125.

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

Fischer introduced:

H. F. No. 539, A bill for an act relating to capital investment; appropriating money for the Rush Line Corridor Transitway; authorizing the sale and issuance of state bonds.

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

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Albright; Poston; Jurgens; Bahr, C., and Swedzinski introduced:

H. F. No. 540, A bill for an act relating to motor vehicles; providing for transfer-on-death of title to motor vehicles; exempting transfer from motor vehicle sales tax; amending Minnesota Statutes 2016, sections 256B.15, subdivision 1a; 297B.01, subdivision 16; proposing coding for new law in Minnesota Statutes, chapter 168A.

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

Clark; Mariani; Hamilton; Baker; Hornstein; Allen; Loeffler; Omar; Ward; Moran; Mahoney; Johnson, S.; Lee; Dehn, R.; Maye Quade; Youakim; Fischer; Carlson, L.; Bernardy; Lillie; Masin; Kunesh-Podein; Hausman; Hansen; Metsa; Freiberg; Olson; Rosenthal; Carlson, A.; Pinto; Murphy, E.; Bly and Davnie introduced:

H. F. No. 541, A bill for an act relating to transportation; amending requirements governing driver's licenses and Minnesota identification cards; amending Minnesota Statutes 2016, section 171.06, subdivision 3, by adding a subdivision; repealing Minnesota Rules, part 7410.0410, subparts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14.

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

Lesch introduced:

H. F. No. 542, A bill for an act relating to public safety; codifying case law interpretation of terroristic threats; amending Minnesota Statutes 2016, section 609.713, by adding a subdivision.

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

Lesch introduced:

H. F. No. 543, A bill for an act relating to consumer protection; regulating consumer fraud; modifying remedies; amending Minnesota Statutes 2016, section 325F.69, by adding a subdivision.

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

Mahoney and Johnson, S., introduced:

H. F. No. 544, A bill for an act relating to capital investment; appropriating money for the East Side Freedom Library; 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.

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Gruenhagen introduced:

H. F. No. 545, A bill for an act relating to campaign finance; prohibiting use of public funds to promote or defeat a ballot question; proposing coding for new law in Minnesota Statutes, chapters 5; 10A.

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

Gruenhagen introduced:

H. F. No. 546, A bill for an act relating to capital investment; appropriating money for replacement of the Lake Titlow Dam; 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.

Fenton, Loon, Theis, Peterson, Kresha and Jurgens introduced:

H. F. No. 547, A bill for an act relating to education; administration of the federal Child and Adult Care Food Program; amending Minnesota Statutes 2016, section 124D.111, subdivision 2a.

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

Kresha introduced:

H. F. No. 548, A bill for an act relating to capital investment; appropriating money for extending the Camp Ripley/Veterans State Trail; authorizing the 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.

Swedzinski introduced:

H. F. No. 549, A bill for an act relating to capital investment; appropriating money for AURI facilities improvement; authorizing the sale and issuance of state bonds.

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

Koegel, Hortman, Hilstrom, Uglem and Halverson introduced:

H. F. No. 550, A bill for an act relating to education finance; authorizing a grant for a fabrication lab for the Anoka-Hennepin school district's Secondary Technical Education Program; appropriating money.

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

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Green, Poston, Whelan and Erickson introduced:

H. F. No. 551, A bill for an act relating to environment; eliminating rulemaking authority of Pollution Control Agency and Department of Natural Resources; providing for sunset or enactment of existing rules.

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

Green; Newberger; Whelan; Grossell; Johnson, B.; Daniels; Schomacker; Backer; Nash; Swedzinski; Bliss; Anderson, P.; Lucero; O'Neill; Heintzeman; Erickson; Poston and Miller introduced:

H. F. No. 552, A bill for an act relating to administrative rulemaking; requiring a specific grant of authority in law for adoption of rules; reducing the threshold for conducting a public hearing on expedited rules; amending Minnesota Statutes 2016, sections 14.05, subdivision 1; 14.389, subdivision 5.

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

Dettmer introduced:

H. F. No. 553, A bill for an act relating to education; regulating disposition of schoolhouses and sites following schoolhouse closings; amending Minnesota Statutes 2016, section 123B.51, subdivision 1, by adding a subdivision.

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

Nornes introduced:

H. F. No. 554, A bill for an act relating to taxation; sales and use; authorizing the city of Fergus Falls to impose a local sales and use tax.

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

Dettmer and Drazkowski introduced:

H. F. No. 555, A bill for an act relating to taxation; property; providing a reduced class rate for congressionally chartered veterans organizations; amending Minnesota Statutes 2016, section 273.13, subdivision 25.

The bill was read for the first time and referred to the Veterans Affairs Division.

Davids introduced:

H. F. No. 556, A bill for an act relating to tax increment financing; making various technical and minor policy changes; amending Minnesota Statutes 2016, sections 469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7.

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

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Kresha introduced:

H. F. No. 557, A bill for an act relating to transportation; providing for certain recreational vehicle sales on Sundays; making technical changes; amending Minnesota Statutes 2016, section 168.275.

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

Erickson introduced:

H. F. No. 558, A bill for an act relating to education; providing for innovative delivery of career and technical education programs and sharing of district resources; amending Laws 2012, chapter 263, section 1, as amended.

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

Franson, Albright, Schomacker, Swedzinski and Johnson, C., introduced:

H. F. No. 559, A bill for an act relating to health; authorizing a governmental entity to invest funds of a hospital owned or operated by the governmental entity; amending Minnesota Statutes 2016, section 144.581, subdivision 1.

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

Kiel, Green, Backer, Marquart, Fabian, Nornes and Grossell introduced:

H. F. No. 560, A bill for an act relating to waters; appropriating money for River Watch program.

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

Poppe; Johnson, C.; Bly; Marquart; Ecklund and Mahoney introduced:

H. F. No. 561, A bill for an act relating to agriculture; appropriating money for the farm advocates program.

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

Hansen, Thissen and Bly introduced:

H. F. No. 562, A bill for an act relating to natural resources; establishing the Department of Parks and Trails; transferring authority; requiring a report; authorizing rulemaking; amending Minnesota Statutes 2016, sections 15.01; 15.06, subdivision 1; 84.027, subdivision 2; 84.029, subdivision 2; 84.03; 84.8031; 84.83, subdivision 4a; 85.045, subdivision 1; 85.053, subdivision 1; 85.46, subdivisions 1, 6; 85.535, subdivision 1; 85.536, subdivisions 1, 5, 10; 86A.05, subdivisions 2, 3, 4, 9, 11, 13, 15; proposing coding for new law in Minnesota Statutes, chapter 85.

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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Garofalo introduced:

H. F. No. 563, A bill for an act relating to labor relations; appropriating money for the Public Employment Relations Board.

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. 564, A bill for an act relating to state government; classifying certain data of the Public Employment Relations Board; exempting the Public Employment Relations Board from the open meetings law in certain cases; amending Minnesota Statutes 2016, sections 13.43, subdivision 6; 13D.01, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 13.

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

O'Driscoll introduced:

H. F. No. 565, A bill for an act relating to retirement; making administrative changes to the Minnesota State Retirement System, Teachers Retirement Association, Public Employees Retirement Association, and St. Paul Teachers Retirement Fund Association; clarifying refund repayment procedures; modifying executive director credentials; clarifying service requirements; revising appeal procedures; modifying service credit purchase procedures; establishing new procedures for disability applications due to private disability insurance requirements; clarifying disability benefit payment provisions; modifying annual benefit limitations for federal tax code compliance; authorizing use of IRS correction procedures; clarifying benefit offsets for certain refund payments; clarifying police and fire plan coverage for certain Hennepin Healthcare System supervisors; modifying various economic actuarial assumptions; adopting recommendations of the Volunteer Firefighter Relief Association Working Group; increasing relief association lump-sum service pension maximums; lowering certain vesting requirements for Eden Prairie Volunteer Firefighters Relief Association; adopting definition of the Hometown Heroes Act related to public safety officer death benefits; allowing service credit purchase and Rule of 90-eligibility for certain Minnesota Department of Transportation employees; authorizing MnSCU employees to elect retroactive and prospective TRA coverage; authorizing MnSCU employee to transfer past service from IRAP to PERA; increasing maximum employer contribution to a supplemental laborers pension fund; authorizing certain additional sources of retirement plan funding; making technical and conforming changes; amending Minnesota Statutes 2016, sections 3A.03, subdivisions 2, 3; 16A.14, subdivision 2a; 352.03, subdivisions 5, 6; 352.113, subdivision 2; 352.23; 352B.11, subdivision 4; 352D.05, subdivision 4; 353.01, subdivisions 16, 43; 353.012; 353.0162; 353.32, subdivisions 1, 4; 353.34, subdivision 2; 353.64, subdivision 10; 353G.02, subdivision 6; 354.05, by adding a subdivision; 354.06, subdivisions 2, 2a; 354.095; 354.44, subdivision 9; 354.46, subdivision 6; 354.48, subdivision 1; 354.52, subdivision 4; 354A.011, subdivision 29; 354A.093, subdivisions 4, 6; 354A.095; 354A.096; 354A.35, subdivision 2; 354A.38; 356.215, subdivision 8; 356.24, subdivision 1; 356.50, subdivision 2; 356.551, subdivision 2; 356.635, subdivision 10, by adding subdivisions; 356.96, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 423A.02, subdivision 3; 424A.01, by adding subdivisions; 424A.015, by adding a subdivision; 424A.02, subdivision 3; 424B.20, subdivision 4; 490.124, subdivision 12; proposing coding for new law in Minnesota Statutes, chapters 356; 424A; repealing Minnesota Statutes 2016, sections 352.04, subdivision 11; 353.0161; 353.34, subdivision 6; 354A.12, subdivisions 2c, 3c; 354A.31, subdivision 3; 356.47, subdivision 1; 356.611, subdivisions 3, 3a, 4, 5; 356.96, subdivisions 14, 15; 424A.02, subdivision 13.

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

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Haley, Pelowski, Olson, Hausman, Gunther and Poppe introduced:

H. F. No. 566, A bill for an act relating to capital investment; appropriating money for the port development assistance program; authorizing the sale and issuance of state bonds.

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

Backer introduced:

H. F. No. 567, A bill for an act relating to state lands; authorizing public sale of certain tax-forfeited land that borders public water.

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

Howe introduced:

H. F. No. 568, A bill for an act relating to capital investment; appropriating money for water infrastructure in the city of Cold Spring; 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.

Urdahl introduced:

H. F. No. 569, A bill for an act relating to arts and culture; appropriating money to commission music for State Capitol grand opening.

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

Urdahl introduced:

H. F. No. 570, A bill for an act relating to arts and culture; appropriating money to Wheel and Cog Children's Museum.

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

Swedzinski; Schomacker; Anderson, P.; Hamilton; Poppe; Johnson, C.; Lien and Kiel introduced:

H. F. No. 571, A bill for an act relating to agriculture; appropriating money to implement the noxious weed grant program.

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

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Lillie, Fischer and Ward introduced:

H. F. No. 572, A bill for an act relating to education; appropriating money for grants to support student transitions between middle school and high school.

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

Lillie; Fischer; Dean, M., and Ward introduced:

H. F. No. 573, A bill for an act relating to capital investment; appropriating money for the Applied Technology Center at Century College; authorizing the sale and issuance of state bonds.

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

Urdahl and Erickson introduced:

H. F. No. 574, A bill for an act relating to taxation; individual income; providing a refundable credit for attaining a master's degree in teacher's licensure field; proposing coding for new law in Minnesota Statutes, chapter 290.

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

Urdahl introduced:

H. F. No. 575, A bill for an act relating to capital investment; exempting the Lanesboro dam project from a nonstate contribution; amending Laws 2012, chapter 293, section 7, subdivision 3.

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

Urdahl introduced:

H. F. No. 576, A bill for an act relating to capital investment; appropriating money for higher education asset preservation and replacement (HEAPR) at the University of Minnesota and Minnesota State Colleges and Universities; authorizing the sale and issuance of state bonds.

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

Moran introduced:

H. F. No. 577, A bill for an act relating to education; creating a pilot grant program to encourage and support underrepresented and disadvantaged girls in exploring and pursuing STEM careers; appropriating money; requiring a report.

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

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Johnson, C.; Considine and Cornish introduced:

H. F. No. 578, A bill for an act relating to capital investment; appropriating money for the second phase of the improvements and expansion of the Minnesota Security Hospital in St. Peter; authorizing the sale and issuance of state bonds.

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

Davids introduced:

H. F. No. 579, A bill for an act relating to taxation; sales and use; clarifying sales of specified digital products or other digital products to end users; amending Minnesota Statutes 2016, section 297A.61, subdivision 4.

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

Fabian introduced:

H. F. No. 580, A bill for an act relating to capital investment; appropriating money for flood hazard mitigation grants; 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.

Backer and Nornes introduced:

H. F. No. 581, A bill for an act relating to capital investment; appropriating money for flood hazard mitigation grants; 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.

Schomacker, Kiel, Backer and Sandstede introduced:

H. F. No. 582, A bill for an act relating to health; modifying the types of health professionals who may be employed by supplemental nursing services agencies overseen by the commissioner of health; amending Minnesota Statutes 2016, section 144A.70, subdivision 6, by adding a subdivision.

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

Layman introduced:

H. F. No. 583, A bill for an act relating to capital investment; appropriating money for the Grand Rapids Mississippi Riverfront Pedestrian Bridge; authorizing the sale and issuance of state bonds.

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

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Considine and Howe introduced:

H. F. No. 584, A bill for an act relating to motor vehicles; authorizing issuance of disability plate to owner of motorized bicycle under certain circumstances; amending Minnesota Statutes 2016, sections 168.021, subdivisions 1, 2, 2a; 169.345, subdivisions 1, 3.

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

Liebling, Drazkowski and Scott introduced:

H. F. No. 585, A bill for an act relating to public safety; correction of erroneous criminal records; amending Minnesota Statutes 2016, section 13.87, subdivision 1.

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

Drazkowski introduced:

H. F. No. 586, A bill for an act relating to state lands; establishing funds to make annual payments for certain state-purchased land using dedicated revenues; modifying payment in lieu of taxes requirements; appropriating money; amending Minnesota Statutes 2016, sections 97A.056, subdivision 1a, by adding subdivisions; 116P.02, subdivision 1, by adding subdivisions; 477A.10; 477A.11, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapters 11A; 116P; 477A.

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

Barr, R.; Fenton; Halverson; Anderson, S.; Jessup and Christensen introduced:

H. F. No. 587, A bill for an act relating to commerce; modifying unclaimed property requirements; requiring reports; appropriating money; amending Minnesota Statutes 2016, section 345.42, subdivision 1, by adding a subdivision.

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

Johnson, C.; Torkelson and Considine introduced:

H. F. No. 588, A bill for an act relating to capital investment; appropriating money for reconstruction of marked U.S. Highway 14 between the cities of New Ulm and Nicollet; authorizing the sale and issuance of trunk highway bonds.

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

Drazkowski; Poston; Miller; Hertaus; Scott; Pugh; McDonald; Dean, M., and Bahr, C., introduced:

H. F. No. 589, A bill for an act relating to campaign finance; repealing the political contribution refund; repealing the public subsidy program; providing for voluntary pledges to abide by expenditure limits and certain other sections; amending Minnesota Statutes 2016, sections 10A.01, subdivision 26; 10A.105, subdivision 1; 10A.15, subdivision 1; 10A.245, subdivision 2; 10A.25, subdivisions 1, 10; 10A.257, subdivision 1; 10A.27, subdivision 10; 10A.322, subdivision 1; 10A.38; 270A.03, subdivision 7; 289A.50, subdivision 1; 290.01,

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subdivision 6; repealing Minnesota Statutes 2016, sections 10A.30; 10A.31, subdivisions 1, 3, 3a, 4, 5, 5a, 6, 6a, 7, 7a, 10, 10a, 10b, 11; 10A.315; 10A.321; 10A.322, subdivisions 2, 4; 10A.323; 10A.324, subdivisions 1, 3; 13.4967, subdivision 2; 290.06, subdivision 23; Minnesota Rules, parts 4503.1400, subparts 2, 3, 4, 5, 6, 7, 8, 9; 4503.1450.

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

Koegel; Bernardy; Slocum; Hilstrom; Murphy, M.; Nelson; Ecklund; Hornstein; Hausman and Hortman introduced:

H. F. No. 590, A bill for an act relating to capital investment; appropriating money for the Foley Boulevard Northstar commuter rail station; authorizing the sale and issuance of state bonds.

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

Rosenthal, Dettmer, Lee, Ecklund and Davids introduced:

H. F. No. 591, A bill for an act relating to higher education; providing educational assistance to translators who assisted United States troops; amending Minnesota Statutes 2016, section 197.791, subdivisions 4, 5a.

The bill was read for the first time and referred to the Veterans Affairs Division.

Drazkowski introduced:

H. F. No. 592, A bill for an act relating to human services; eliminating the Alcohol and Other Drug Abuse Advisory Council; repealing Minnesota Statutes 2016, section 254A.04.

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

O'Driscoll introduced:

H. F. No. 593, A bill for an act relating to real estate appraisers; changing requirements relating to investigations, background checks, and disciplinary actions; amending Minnesota Statutes 2016, sections 13.411, by adding a subdivision; 82B.07; 82B.08, subdivision 2a; 82B.20, by adding a subdivision; 82B.24, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 82B.

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

Poppe and Bennett introduced:

H. F. No. 594, A bill for an act relating to capital investment; appropriating money for the Cedar River Watershed District; 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.

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Poppe introduced:

H. F. No. 595, A bill for an act relating to capital investment; appropriating money for waterways restoration in the city of Austin; 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.

Poppe introduced:

H. F. No. 596, A bill for an act relating to capital investment; appropriating money for site improvements at the Ramsey Mill Pond in Austin; 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.

Dean, M.; Flanagan; Zerwas; Franson; Kresha and Bliss introduced:

H. F. No. 597, A bill for an act relating to human services; appropriating money for the White Earth Band of Ojibwe child welfare services.

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

Gruenhagen introduced:

H. F. No. 598, A bill for an act relating to capital investment; appropriating money for road improvements in McLeod County; authorizing the sale and issuance of state bonds.

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

MESSAGES FROM THE SENATE

The following message was received from the Senate:

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

S. F. No. 1.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to the House.

Cal R. Ludeman, Secretary of the Senate

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CONFERENCE COMMITTEE REPORT ON S. F. No. 1

A bill for an act relating to health care coverage; providing a temporary program to help pay for health insurance premiums; modifying requirements for health maintenance organizations; modifying provisions governing health insurance; requiring reports; establishing a state reinsurance program through the Minnesota Comprehensive Health Association; authorizing agricultural cooperative health plans; appropriating money; amending Minnesota Statutes 2016, sections 60A.08, subdivision 15; 60A.235, subdivision 3; 60A.236; 62D.02, subdivision 4; 62D.03, subdivision 1; 62D.05, subdivision 1; 62D.06, subdivision 1; 62D.19; 62E.02, subdivision 3; 62L.12, subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 62E; 62H; repealing Minnesota Statutes 2016, section 62D.12, subdivision 9; Laws 2007, chapter 147, article 12, section 14, as amended.

January 25, 2017

The Honorable Michelle L. Fischbach

President of the Senate

The Honorable Kurt L. Daudt

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 1 report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendments and that S. F. No. 1 be further amended as follows:

Delete everything after the enacting clause and insert:

"ARTICLE 1

PREMIUM SUBSIDY PROGRAM

Section 1. DEFINITIONS.

Subdivision 1. Scope. For purposes of sections 1 to 6, the following terms have the meanings given.

Subd. 2. Commissioner. "Commissioner" means the commissioner of Minnesota Management and Budget.

Subd. 3. Eligible individual. "Eligible individual" means a Minnesota resident who:

(1) is not receiving a premium tax credit under Code of Federal Regulations, title 26, section 1.36B-2, as of the date their coverage is effectuated;

(2) is not enrolled in public program coverage under Minnesota Statutes, section 256B.055, or 256L.04; and

(3) purchased an individual health plan from a health carrier in the individual market.

Subd. 4. Gross premium. "Gross premium" means the amount billed for a health plan purchased by an eligible individual prior to a premium subsidy in a calendar year.

Subd. 5. Health carrier. "Health carrier" has the meaning given in Minnesota Statutes, section 62A.011, subdivision 2.

Subd. 6. Individual health plan. "Individual health plan" has the meaning given in Minnesota Statutes, section 62A.011, subdivision 4.

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Subd. 7. Individual market. "Individual market" has the meaning given in Minnesota Statutes, section 62A.011, subdivision 5.

Subd. 8. Net premium. "Net premium" means the gross premium less the premium subsidy.

Subd. 9. Premium subsidy. "Premium subsidy":

(1) is a payment made on behalf of eligible individuals for the promotion of general welfare, and is not compensation for any services;

(2) is equal to 25 percent of the monthly gross premium otherwise paid by or on behalf of the eligible individual for coverage purchased in the individual market, that covers the eligible individual and the eligible individual's spouse and dependents, or the percentage established by the commissioner under section 2, subdivision 3, paragraph (c); and

(3) is excluded from any calculation used to determine eligibility within any of the Department of Human Services programs.

Sec. 2. PAYMENT TO HEALTH CARRIERS ON BEHALF OF ELIGIBLE INDIVIDUALS.

Subdivision 1. Program established. The commissioner of Minnesota Management and Budget, in consultation with the commissioner of commerce and the commissioner of human services, shall establish and administer the premium subsidy program authorized by this act, to help eligible individuals pay for coverage in the individual market in 2017.

Subd. 2. Premium subsidy provided. As soon as practicable, but no later than April 30, 2017, health carriers shall begin paying a premium subsidy to each eligible individual who purchases a health plan in the individual market, for all the months for which the net premium is paid. An eligible individual shall pay the net premium amount to the health carrier.

Subd. 3. Payments to health carriers. (a) The commissioner shall make payments to health carriers on behalf of eligible individuals effectuating coverage for calendar year 2017, for the months in that year for which the individual has paid the net premium amount to the health carrier. Payments to health carriers shall be based on the premium subsidy available to eligible individuals in the individual market, regardless of the cost of coverage purchased. The commissioner shall not withhold payments because a health carrier cannot prove an enrollee is an eligible individual.

(b) Health carriers seeking reimbursement from the commissioner must submit an invoice and supporting information to the commissioner, using a form developed by the commissioner, in order to be eligible for payment. The commissioner shall finalize the form by March 1, 2017.

(c) Total state payments to health carriers must be made within the limits of the available appropriation. The commissioner shall reimburse health carriers at the full requested amount up to the level of the appropriation. The commissioner, by July 15, 2017, shall determine whether the available appropriation will be sufficient to provide premium subsidies equal to 25 percent of the gross premium for the period September 1, 2017, through December 31, 2017. If the commissioner determines that the available appropriation is not sufficient, the commissioner shall reduce the premium subsidy percentage, beginning September 1, 2017, through the remainder of the calendar year, by an amount sufficient to ensure that the total amount of premium subsidies provided for the calendar year does not exceed the available appropriation. The commissioner shall notify health carriers of any reduced premium subsidy percentage within five days of making a determination. Health carriers shall provide enrollees with at least 30 days' notice of any reduction in the premium subsidy percentage.

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(d) The commissioner shall consider health carriers as vendors under Minnesota Statutes, section 16A.124, subdivision 3, and each monthly invoice shall represent the completed delivery of the service.

Subd. 4. Data practices. (a) The definitions in Minnesota Statutes, section 13.02, apply to this subdivision.

(b) Government data on an enrollee or health carrier under this section are private data on individuals or nonpublic data, except that the total reimbursement requested by a health carrier and the total state payment to the health carrier are public data.

(c) Notwithstanding Minnesota Statutes, section 138.17, government data on an enrollee or health carrier under this section must be destroyed by June 30, 2018, or upon completion by the legislative auditor of the audits required by section 3, whichever is later.

Sec. 3. AUDITS.

(a) The legislative auditor shall conduct audits of the health carriers' supporting data, as prescribed by the commissioner, to determine whether payments align with criteria established in sections 1 and 2. The commissioner of human services shall provide data as necessary to the legislative auditor to complete the audit. The commissioner shall withhold or charge back payments to the health carriers to the extent they do not align with the criteria established in sections 1 and 2, as determined by the audit.

(b) The legislative auditor shall audit the extent to which health carriers provided premium subsidies to persons meeting the residency and other eligibility requirements specified in section 1, subdivision 3. The legislative auditor shall report to the commissioner the amount of premium subsidies provided by each health carrier to persons not eligible for a premium subsidy. The commissioner, in consultation with the commissioners of commerce and health, shall develop and implement a process to recover from health carriers the amount of premium subsidies received for enrollees determined to be ineligible for premium subsidies by the legislative auditor. The legislative auditor, when conducting the required audit, and the commissioner, when determining the amount of premium subsidy to be recovered, may take into account the extent to which a health carrier makes use of the Minnesota eligibility system, as defined in Minnesota Statutes, section 62V.055, subdivision 1.

Sec. 4. APPLICABILITY OF GROSS PREMIUM.

Notwithstanding premium subsidies provided under section 2, the premium base for calculating the amount of any applicable premium taxes under Minnesota Statutes, chapter 297I, shall be the gross premium for health plans purchased by eligible individuals in the individual market.

Sec. 5. SUNSET.

This article sunsets June 30, 2018.

Sec. 6. TRANSFER.

$326,945,000 in fiscal year 2017 is transferred from the budget reserve account in Minnesota Statutes, section 16A.152, subdivision 1a, to the general fund.

Sec. 7. APPROPRIATIONS.

(a) $311,788,000 in fiscal year 2017 is appropriated from the general fund to the commissioner of management and budget for premium assistance under section 2. This appropriation is onetime and is available through June 30, 2018.

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(b) $157,000 in fiscal year 2017 is appropriated from the general fund to the legislative auditor for purposes of section 3. This appropriation is onetime.

(c) Any unexpended amount from the appropriation in paragraph (a) after June 30, 2018, shall be transferred on July 1, 2018, from the general fund to the budget reserve account under Minnesota Statutes, section 16A.152, subdivision 1a.

Sec. 8. EFFECTIVE DATE.

Sections 1 to 7 are effective the day following final enactment.

ARTICLE 2

INSURANCE MARKET REFORMS

Section 1. Minnesota Statutes 2016, section 60A.08, subdivision 15, is amended to read:

Subd. 15. Classification of insurance filings data. (a) All forms, rates, and related information filed with the commissioner under section 61A.02 shall be nonpublic data until the filing becomes effective.

(b) All forms, rates, and related information filed with the commissioner under section 62A.02 shall be nonpublic data until the filing becomes effective.

(c) All forms, rates, and related information filed with the commissioner under section 62C.14, subdivision 10, shall be nonpublic data until the filing becomes effective.

(d) All forms, rates, and related information filed with the commissioner under section 70A.06 shall be nonpublic data until the filing becomes effective.

(e) All forms, rates, and related information filed with the commissioner under section 79.56 shall be nonpublic data until the filing becomes effective.

(f) Notwithstanding paragraphs (b) and (c), for all rate increases subject to review under section 2794 of the Public Health Services Act and any amendments to, or regulations, or guidance issued under the act that are filed with the commissioner on or after September 1, 2011, the commissioner:

(1) may acknowledge receipt of the information;

(2) may acknowledge that the corresponding rate filing is pending review;

(3) must provide public access from the Department of Commerce's Web site to parts I and II of the Preliminary Justifications of the rate increases subject to review; and

(4) must provide notice to the public on the Department of Commerce's Web site of the review of the proposed rate, which must include a statement that the public has 30 calendar days to submit written comments to the commissioner on the rate filing subject to review.

(g) Notwithstanding paragraphs (b) and (c), for all proposed premium rates filed with the commissioner for individual health plans, as defined in section 62A.011, subdivision 4, and small group health plans, as defined in section 62K.03, subdivision 12, the commissioner must provide public access on the Department of Commerce's

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Web site to compiled data of the proposed changes to rates, separated by health plan and geographic rating area, within ten business days after the deadline by which health carriers, as defined in section 62A.011, subdivision 2, must submit proposed rates to the commissioner for approval.

EFFECTIVE DATE. This section is effective 30 days following final enactment.

Sec. 2. Minnesota Statutes 2016, section 60A.235, subdivision 3, is amended to read:

Subd. 3. Health plan policies issued as stop loss coverage. (a) An insurance company or health carrier issuing or renewing an insurance policy or other evidence of coverage, that provides coverage to an employer for health care expenses incurred under an employer-sponsored plan provided to the employer's employees, retired employees, or their dependents, shall issue the policy or evidence of coverage as a health plan if the policy or evidence of coverage:

(1) has a specific attachment point for claims incurred per individual that is lower than $20,000; or

~~(2) has an aggregate attachment point, for groups of 50 or fewer, that is lower than the greater of:~~

~~(i) $4,000 times the number of group members;~~

~~(ii) 120 percent of expected claims; or~~

~~(iii) $20,000; or~~

~~(3)~~ (2) has an aggregate attachment point ~~for groups of 51 or more~~ that is lower than 110 percent of expected claims.

(b) An insurer shall determine the number of persons in a group, for the purposes of this section, on a consistent basis, at least annually. Where the insurance policy or evidence of coverage applies to a contract period of more than one year, the dollar amounts set forth in paragraph (a), ~~clauses~~ clause (1) ~~and (2)~~, must be multiplied by the length of the contract period expressed in years.

(c) The commissioner may adjust the constant dollar amounts provided in paragraph (a), clauses (1), (2), and (3), on January 1 of any year, based upon changes in the medical component of the Consumer Price Index (CPI). Adjustments must be in increments of $100 and must not be made unless at least that amount of adjustment is required. The commissioner shall publish any change in these dollar amounts at least six months before their effective date.

~~(d)~~ (c) A policy or evidence of coverage issued by an insurance company or health carrier that provides direct coverage of health care expenses of an individual including a policy or evidence of coverage administered on a group basis is a health plan regardless of whether the policy or evidence of coverage is denominated as stop loss coverage.

EFFECTIVE DATE. This section is effective June 1, 2017, and applies to policies or evidence of coverage offered, issued, or renewed to an employer on or after that date.

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Sec. 3. Minnesota Statutes 2016, section 60A.236, is amended to read:

60A.236 STOP LOSS REGULATION; SMALL EMPLOYER COVERAGE.

A contract providing stop loss coverage, issued or renewed to a small employer, as defined in section 62L.02, subdivision 26, or to a plan sponsored by a small employer, must include a claim settlement period no less favorable to the small employer or plan than ~~coverage of all~~ the following:

(1) claims incurred during the contract period ~~regardless of when the claims are~~; and

(2) paid by the plan during the contract period or within three months after expiration of the contract period.

EFFECTIVE DATE. This section is effective June 1, 2017, and applies to policies or evidence of coverage offered, issued, or renewed to an employer on or after that date.

Sec. 4. Minnesota Statutes 2016, section 62D.02, subdivision 4, is amended to read:

Subd. 4. Health maintenance organization. ~~(a)~~ "Health maintenance organization" means a ~~nonprofit~~ foreign or domestic corporation ~~organized under chapter 317A~~, or a local governmental unit as defined in subdivision 11, controlled and operated as provided in sections 62D.01 to 62D.30, which provides, either directly or through arrangements with providers or other persons, comprehensive health maintenance services, or arranges for the provision of these services, to enrollees on the basis of a fixed prepaid sum without regard to the frequency or extent of services furnished to any particular enrollee.

~~(b) [Expired]~~

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

Sec. 5. Minnesota Statutes 2016, section 62D.03, subdivision 1, is amended to read:

Subdivision 1. Certificate of authority required. Notwithstanding any law of this state to the contrary, any ~~nonprofit~~ foreign or domestic corporation organized to do so or a local governmental unit may apply to the commissioner of health for a certificate of authority to establish and operate a health maintenance organization in compliance with sections 62D.01 to 62D.30. No person shall establish or operate a health maintenance organization in this state, nor sell or offer to sell, or solicit offers to purchase or receive advance or periodic consideration in conjunction with a health maintenance organization or health maintenance contract unless the organization has a certificate of authority under sections 62D.01 to 62D.30.

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

Sec. 6. Minnesota Statutes 2016, section 62D.05, subdivision 1, is amended to read:

Subdivision 1. Authority granted. Any ~~nonprofit~~ corporation or local governmental unit may, upon obtaining a certificate of authority as required in sections 62D.01 to 62D.30, operate as a health maintenance organization.

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

Sec. 7. Minnesota Statutes 2016, section 62D.06, subdivision 1, is amended to read:

Subdivision 1. Governing body composition; enrollee advisory body. The governing body of any health maintenance organization which is a ~~nonprofit~~ corporation may include enrollees, providers, or other individuals; provided, however, that after a health maintenance organization which is a ~~nonprofit~~ corporation has been

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authorized under sections 62D.01 to 62D.30 for one year, at least 40 percent of the governing body shall be composed of enrollees and members elected by the enrollees and members from among the enrollees and members. For purposes of this section, "member" means a consumer who receives health care services through a self-insured contract that is administered by the health maintenance organization or its related third-party administrator. The number of members elected to the governing body shall not exceed the number of enrollees elected to the governing body. An enrollee or member elected to the governing board may not be a person:

(1) whose occupation involves, or before retirement involved, the administration of health activities or the provision of health services;

(2) who is or was employed by a health care facility as a licensed health professional; or

(3) who has or had a direct substantial financial or managerial interest in the rendering of a health service, other than the payment of a reasonable expense reimbursement or compensation as a member of the board of a health maintenance organization.

After a health maintenance organization which is a local governmental unit has been authorized under sections 62D.01 to 62D.30 for one year, an enrollee advisory body shall be established. The enrollees who make up this advisory body shall be elected by the enrollees from among the enrollees.

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

Sec. 8. Minnesota Statutes 2016, section 62D.19, is amended to read:

62D.19 UNREASONABLE EXPENSES.

No health maintenance organization shall incur or pay for any expense of any nature which is unreasonably high in relation to the value of the service or goods provided. The commissioner of health shall implement and enforce this section by rules adopted under this section.

In an effort to achieve the stated purposes of sections 62D.01 to 62D.30~~; in order to safeguard the underlying nonprofit status of health maintenance organizations;~~ and to ensure that the payment of health maintenance organization money to major participating entities results in a corresponding benefit to the health maintenance organization and its enrollees, when determining whether an organization has incurred an unreasonable expense in relation to a major participating entity, due consideration shall be given to, in addition to any other appropriate factors, whether the officers and trustees of the health maintenance organization have acted with good faith and in the best interests of the health maintenance organization in entering into, and performing under, a contract under which the health maintenance organization has incurred an expense. The commissioner has standing to sue, on behalf of a health maintenance organization, officers or trustees of the health maintenance organization who have breached their fiduciary duty in entering into and performing such contracts.

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

Sec. 9. Minnesota Statutes 2016, section 62E.02, subdivision 3, is amended to read:

Subd. 3. Health maintenance organization. "Health maintenance organization" means a ~~nonprofit~~ corporation licensed and operated as provided in chapter 62D.

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

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Sec. 10. [62H.18] AGRICULTURAL COOPERATIVE HEALTH PLAN.

Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.

(b) "Agricultural cooperative" means a cooperative organized under chapter 308A or 308B that meets the requirements of subdivision 2.

(d) "Employee Retirement Income Security Act" means the Employee Retirement Income Security Act of 1974, United States Code, title 29, sections 1001, et seq.

(e) "Enrollee" means a natural person covered by a joint self-insurance plan operating under this section.

(f) "Insurance agent" has the meaning given to insurance agent in section 60A.02, subdivision 7.

(g) "Joint self-insurance plan" or "plan" means a plan or any other arrangement established for the benefit of two or more entities authorized to transact business in the state, in order to jointly self-insure through a single employee welfare benefit plan funded through a trust, to provide health, dental, or other benefits as permitted under the Employee Retirement Income Security Act.

(h) "Service plan administrator" means a vendor of risk management services licensed under section 60A.23.

(i) "Trust" means a trust established to accept and hold assets of the joint self-insurance plan in trust and use and disperse funds in accordance with the terms of the written trust document and joint self-insurance plan for the sole purposes of providing benefits and defraying reasonable administrative costs of providing the benefits.

Subd. 2. Exemption. A joint self-insurance plan, its service plan administrator, stop loss carrier, and any broker assisting the agricultural cooperative are exempt from sections 62H.01 to 62H.17, and are governed by the requirements of this section, if the joint self-insurance plan is administrated through a trust established by an agricultural cooperative that:

(1) has members who (i) actively work in production agriculture in Minnesota and file either Form 1065 or Schedule F with the member's income tax return; or (ii) provide direct services to production agriculture in Minnesota;

(2) specifies criteria for membership in the agricultural cooperative in their articles of organization or bylaws, however criteria cannot be based on health status factors of the individuals to be covered through the joint self‑insurance plan; and

(3) grants at least 51 percent of the aggregate voting power on matters for which all members may vote to members who satisfy clause (1) and any additional criteria in the agricultural cooperative's articles of organization and bylaws.

Subd. 3. Plan requirements. A joint self-insurance plan operating under this section must:

(1) offer health coverage to members of the agricultural cooperative that establishes the plan and their dependents, to employees of members of the agricultural cooperative that establishes the plan and their dependents, or to employees of the agricultural cooperative that establishes the plan and their dependents. Health coverage may be offered only to those individuals who meet certain criteria described in the joint self-insurance plan governing documents, however the criteria cannot be based on health status factors of the individuals to be covered through the joint self-insurance plan;

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(2) include stop-loss coverage with an individual attachment point not lower than $20,000 and an aggregate attachment point not lower than 110 percent of expected claims, issued by an insurance company licensed in Minnesota;

(3) establish a reserve fund, certified by an actuary to be sufficient to cover unpaid claim liability for incurred but not reported liabilities in the event of plan termination. Certification from the actuary must include all maximum funding requirements for plan fixed cost requirements and current claims liability requirements, and must include a calculation of the reserve levels needed to fund all incurred but not reported liabilities in the event of member or plan termination. These reserve funds must be held in a trust;

(4) be governed by a board elected by agricultural cooperative members that participate in the plan;

(5) contract for services with a service plan administrator; and

(6) satisfy the requirements of the Employee Retirement Income Security Act that apply to employee welfare benefit plans.

Subd. 4. Submission of documents to commissioner of commerce. A joint self-insurance plan operating under this section must submit to the commissioner of commerce copies of all filings and reports that are submitted to the United States Department of Labor according to the Employee Retirement Income Security Act. Members participating in the joint self-insurance plan may designate an agricultural cooperative that establishes the plan as the entity responsible for satisfying the reporting requirements of the Employee Retirement Income Security Act and for providing copies of these filings and reports to the commissioner of commerce.

Subd. 5. Participation; termination of participation. If a member chooses to participate in a joint self‑insurance plan under this section, the member must participate in the plan for at least three consecutive years. If a member terminates participation in the plan before the end of the three-year period, a financial penalty may be assessed under the plan, not to exceed the amount contributed by the member to the plan reserves.

Subd. 6. Single risk pool. The enrollees of a joint self-insurance plan operating under this section shall be members of a single risk pool. The plan shall provide benefits as a single, self-insured plan with the size of the plan based on the total enrollees in the risk pool.

Subd. 7. Promotion, marketing, sale of coverage. (a) Coverage in a joint self-insurance plan operating under this section may be promoted, marketed, and sold by insurance agents and brokers to members of the agricultural cooperative sponsoring the plan and their dependents, employees of members of the agricultural cooperative sponsoring the plan and their dependents, and employees of the agricultural cooperative sponsoring the plan and their dependents.

(b) Coverage in a joint self-insurance plan operating under this section may be promoted and marketed by a cooperative organized under chapter 308A or 308B to persons who may be eligible to participate in the joint self‑insurance plan.

Subd. 8. Taxation. Joint self-insurance plans are exempt from the taxation imposed under section 297I.05, subdivision 12.

Subd. 9. Compliance with other laws. A joint self-insurance plan operating under this section:

(1) is exempt from providing the mandated health benefits in chapters 62A and 62Q, if the plan otherwise provides the benefits required under the Employee Retirement Income Security Act;

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(2) is exempt from the continuation requirements in sections 62A.146, 62A.16, 62A.17, 62A.20, and 62A.21, if the plan complies with the continuation requirements under the Employee Retirement Income Security Act; and

(3) must comply with all requirements of the Affordable Care Act, as defined in section 62A.011, subdivision 1a, to the extent that they apply to such plans.

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

Sec. 11. Minnesota Statutes 2016, section 62K.10, is amended by adding a subdivision to read:

Subd. 5a. Appeal of waiver of network adequacy requirements. (a) If a health carrier receives a waiver under subdivision 5 applicable to a health plan's provider network, a provider who is in the service area served by the health plan and who is aggrieved by the issuance of the waiver may appeal the commissioner's decision using the contested case procedures in sections 14.57 to 14.62. A contested case proceeding must be initiated within 60 days after the date on which the commissioner grants a waiver, except that a proceeding regarding a waiver in effect as of January 1, 2017, must be initiated within 60 days after the effective date of this subdivision. The commissioner must provide timely notice of an appeal under this subdivision to the health carrier that received the waiver that is subject to the appeal. After considering the appeal, the administrative law judge must either uphold or nullify the waiver of network adequacy requirements. The prevailing party in the contested case proceeding may seek an award of expenses and fees from the nonprevailing party by applying to the administrative law judge using the procedure in section 15.472, paragraph (b). The administrative law judge shall award fees and expenses to the prevailing party if the administrative law judge finds that the position of the nonprevailing party was not substantially justified. For purposes of this paragraph, "substantially justified" has the meaning given in section 15.471, subdivision 8.

(b) The decision of the administrative law judge constitutes the final decision regarding the waiver. A party aggrieved by the administrative law judge's decision may seek judicial review of the decision as provided in chapter 14. If the waiver is nullified and no judicial review is sought, the health carrier must comply with the network adequacy requirements in subdivisions 2, 3, and 4, within 30 days after the deadline for seeking judicial review in section 14.63.

EFFECTIVE DATE. This section is effective the day following final enactment, and applies to network adequacy waivers in effect on or after January 1, 2017.

Sec. 12. Minnesota Statutes 2016, section 62L.12, subdivision 2, is amended to read:

Subd. 2. Exceptions. (a) A health carrier may renew individual conversion policies to eligible employees otherwise eligible for conversion coverage under section 62D.104 as a result of leaving a health maintenance organization's service area.

(b) A health carrier may renew individual conversion policies to eligible employees otherwise eligible for conversion coverage as a result of the expiration of any continuation of group coverage required under sections 62A.146, 62A.17, 62A.21, 62C.142, 62D.101, and 62D.105.

(d) A health carrier may sell, issue, or renew individual continuation policies to eligible employees as required.

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(e) A health carrier may sell, issue, or renew individual health plans if the coverage is appropriate due to an unexpired preexisting condition limitation or exclusion applicable to the person under the employer's group health plan or due to the person's need for health care services not covered under the employer's group health plan.

(f) A health carrier may sell, issue, or renew an individual health plan, if the individual has elected to buy the individual health plan not as part of a general plan to substitute individual health plans for a group health plan nor as a result of any violation of subdivision 3 or 4.

(g) A health carrier may sell, issue, or renew an individual health plan if coverage provided by the employer is determined to be unaffordable under the provisions of the Affordable Care Act as defined in section 62A.011, subdivision 1a.

(h) Nothing in this subdivision relieves a health carrier of any obligation to provide continuation or conversion coverage otherwise required under federal or state law.

(i) Nothing in this chapter restricts the offer, sale, issuance, or renewal of coverage issued as a supplement to Medicare under sections 62A.3099 to 62A.44, or policies or contracts that supplement Medicare issued by health maintenance organizations, or those contracts governed by sections 1833, 1851 to 1859, 1860D, or 1876 of the federal Social Security Act, United States Code, title 42, section 1395 et seq., as amended.

(j) Nothing in this chapter restricts the offer, sale, issuance, or renewal of individual health plans necessary to comply with a court order.

(k) A health carrier may offer, issue, sell, or renew an individual health plan to persons eligible for an employer group health plan, if the individual health plan is a high deductible health plan for use in connection with an existing health savings account, in compliance with the Internal Revenue Code, section 223. In that situation, the same or a different health carrier may offer, issue, sell, or renew a group health plan to cover the other eligible employees in the group.

(l) A health carrier may offer, sell, issue, or renew an individual health plan to one or more employees of a small employer if the individual health plan is marketed directly to all employees of the small employer and the small employer does not contribute directly or indirectly to the premiums or facilitate the administration of the individual health plan. The requirement to market an individual health plan to all employees does not require the health carrier to offer or issue an individual health plan to any employee. For purposes of this paragraph, an employer is not contributing to the premiums or facilitating the administration of the individual health plan if the employer does not contribute to the premium and merely collects the premiums from an employee's wages or salary through payroll deductions and submits payment for the premiums of one or more employees in a lump sum to the health carrier. Except for coverage under section 62A.65, subdivision 5, paragraph (b), at the request of an employee, the health carrier may bill the employer for the premiums payable by the employee, provided that the employer is not liable for payment except from payroll deductions for that purpose. If an employer is submitting payments under this paragraph, the health carrier shall provide a cancellation notice directly to the primary insured at least ten days prior to termination of coverage for nonpayment of premium. Individual coverage under this paragraph may be offered only if the small employer has not provided coverage under section 62L.03 to the employees within the past 12 months.

(m) A health carrier may offer, sell, issue, or renew an individual health plan to one or more employees of a small employer if the small employer, eligible employee, and individual health plan are in compliance with the 21st Century Cures Act, Public Law 114-255, section 18001.

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

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Sec. 13. [62Q.556] UNAUTHORIZED PROVIDER SERVICES.

Subdivision 1. Unauthorized provider services. (a) Except as provided in paragraph (c), unauthorized provider services occur when an enrollee receives services:

(1) from a nonparticipating provider at a participating hospital or ambulatory surgical center, when the services are rendered:

(i) due to the unavailability of a participating provider;

(ii) by a nonparticipating provider without the enrollee's knowledge; or

(iii) due to the need for unforeseen services arising at the time the services are being rendered; or

(2) from a participating provider that sends a specimen taken from the enrollee in the participating provider's practice setting to a nonparticipating laboratory, pathologist, or other medical testing facility.

(b) Unauthorized provider services do not include emergency services as defined in section 62Q.55, subdivision 3.

(c) The services described in paragraph (a), clause (2), are not unauthorized provider services if the enrollee gives advance written consent to the provider acknowledging that the use of a provider, or the services to be rendered, may result in costs not covered by the health plan.

Subd. 2. Prohibition. (a) An enrollee's financial responsibility for the unauthorized provider services shall be the same cost-sharing requirements, including co-payments, deductibles, coinsurance, coverage restrictions, and coverage limitations, as those applicable to services received by the enrollee from a participating provider. A health plan company must apply any enrollee cost sharing requirements, including co-payments, deductibles, and coinsurance, for unauthorized provider services to the enrollee's annual out-of-pocket limit to the same extent payments to a participating provider would be applied.

(b) A health plan company must attempt to negotiate the reimbursement, less any applicable enrollee cost sharing under paragraph (a), for the unauthorized provider services with the nonparticipating provider. If a health plan company's and nonparticipating provider's attempts to negotiate reimbursement for the health care services do not result in a resolution, the health plan company or provider may elect to refer the matter for binding arbitration, chosen in accordance with paragraph (c). A nondisclosure agreement must be executed by both parties prior to engaging an arbitrator in accordance with this section. The cost of arbitration must be shared equally between the parties.

(c) The commissioner of health, in consultation with the commissioner of the Bureau of Mediation Services, must develop a list of professionals qualified in arbitration, for the purpose of resolving disputes between a health plan company and nonparticipating provider arising from the payment for unauthorized provider services. The commissioner of health shall publish the list on the department of health's Web Site, and update the list as appropriate.

(d) The arbitrator must consider relevant information, including the health plan company's payments to other nonparticipating providers for the same services, the circumstances and complexity of the particular case, and the usual and customary rate for the service based on information available in a database in a national, independent, not‑for-profit corporation, and similar fees received by the provider for the same services from other health plans in which the provider is nonparticipating, in reaching a decision.

EFFECTIVE DATE. This section is effective 90 days following final enactment and applies to provider services provided on or after that date.

Journal of the House - 9th Day - Thursday, January 26, 2017 - Top of Page 231

Sec. 14. Minnesota Statutes 2016, section 297I.05, subdivision 12, is amended to read:

Subd. 12. Other entities. (a) A tax is imposed equal to two percent of:

(1) gross premiums less return premiums written for risks resident or located in Minnesota by a risk retention group;

(2) gross premiums less return premiums received by an attorney in fact acting in accordance with chapter 71A;

(3) gross premiums less return premiums received pursuant to assigned risk policies and contracts of coverage under chapter 79; and

(4) the direct funded premium received by the reinsurance association under section 79.34 from self-insurers approved under section 176.181 and political subdivisions that self-insure.

(b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The rate of tax is equal to two percent of the total amount of claims paid during the fund year, with no deduction for claims wholly or partially reimbursed through stop-loss insurance.

(c) A tax is imposed on a joint self-insurance plan operating under chapter 62H, except as provided in section 62H.18, subdivision 8. The rate of tax is equal to two percent of the total amount of claims paid during the fund's fiscal year, with no deduction for claims wholly or partially reimbursed through stop-loss insurance.

(d) A tax is imposed equal to the tax imposed under section 297I.05, subdivision 5, on the gross premiums less return premiums on all coverages received by an accountable provider network or agents of an accountable provider network in Minnesota, in cash or otherwise, during the year.

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

Sec. 15. TRANSITION OF CARE COVERAGE FOR CALENDAR YEAR 2017; INVOLUNTARY TERMINATION OF COVERAGE.

Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given.

(b) "Enrollee" has the meaning given in Minnesota Statutes, section 62Q.01, subdivision 2b.

(d) "Health plan company" has the meaning given in Minnesota Statutes, section 62Q.01, subdivision 4.

(e) "Individual market" has the meaning given in Minnesota Statutes, section 62A.011, subdivision 5.

(f) "Involuntary termination of coverage" means the termination of a health plan due to a health plan company's refusal to renew the health plan in the individual market because the health plan company elects to cease offering individual market health plans in all or some geographic rating areas of the state.

Subd. 2. Application. This section applies to an enrollee who is subject to a change in health plans in the individual market due to an involuntary termination of coverage from a health plan in the individual market after October 31, 2016, and before January 1, 2017, and who enrolls in a new health plan in the individual market for all or a portion of calendar year 2017 that goes into effect after December 31, 2016, and before March 2, 2017.

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Subd. 3. Change in health plans; transition of care coverage. (a) If an enrollee satisfies the criteria in subdivision 2, the enrollee's new health plan company must provide, upon request of the enrollee or the enrollee's health care provider, authorization to receive services that are otherwise covered under the terms of the enrollee's calendar year 2017 health plan from a provider who provided care on an in-network basis to the enrollee during calendar year 2016 but who is out of network in the enrollee's calendar year 2017 health plan:

(1) for up to 120 days if the enrollee has, within 45 days before an involuntary termination of coverage, received a diagnosis of, or is engaged in a current course of treatment for, one or more of the following conditions:

(i) an acute condition;

(ii) a life-threatening mental or physical illness;

(iii) pregnancy beyond the first trimester of pregnancy;

(iv) a physical or mental disability defined as an inability to engage in one or more major life activities, provided the disability has lasted or can be expected to last for at least one year or can be expected to result in death; or

(v) a disabling or chronic condition that is in an acute phase; or

(2) for the rest of the enrollee's life if a physician certifies that the enrollee has an expected lifetime of 180 days or less.

(b) For all requests for authorization under this subdivision, the health plan company must grant the request for authorization unless the enrollee does not meet the criteria in paragraph (a) or subdivision 2.

Subd. 4. Limitations. (a) Subdivision 3 applies only if the enrollee's health care provider agrees to:

(1) accept as payment in full the lesser of:

(i) the health plan company's reimbursement rate for in-network providers for the same or similar service; or

(ii) the provider's regular fee for that service;

(2) request authorization for services in the form and manner specified by the enrollee's new health plan company; and

(3) provide the enrollee's new health plan company with all necessary medical information related to the care provided to the enrollee.

(b) Nothing in this section requires a health plan company to provide coverage for a health care service or treatment that is not covered under the enrollee's health plan.

Subd. 5. Request for authorization. The enrollee's health plan company may require medical records and other supporting documentation to be submitted with a request for authorization under subdivision 3 to the extent that the records and other documentation are relevant to a determination regarding the existence of a condition under subdivision 3, paragraph (a). If authorization is denied, the health plan company must explain the criteria used to make its decision on the request for authorization and must explain the enrollee's right to appeal the decision. If an enrollee chooses to appeal a denial, the enrollee must appeal the denial within five business days of the date on which the enrollee receives the denial. If authorization is granted, the health plan company must provide the enrollee, within five business days of granting the authorization, with an explanation of how transition of care will be provided.

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Subd. 6. Reimbursement. (a) The commissioner of management and budget must reimburse the enrollee's new health plan company for the cost of claims that the health plan company certifies as eligible for reimbursement under this subdivision. The cost eligible for reimbursement under this subdivision is the difference between the in‑network level of benefits under the enrollee's health plan and the out-of-network level of benefits under the enrollee's health plan. The health plan company must seek reimbursement for the cost of claims from the commissioner in a form and manner mutually agreed upon by the commissioner and the affected health plan companies. Total state reimbursements to health plan companies under this subdivision are subject to the limits of the available appropriation and the commissioner may prorate equally across all claims paid as necessary. In the event that funding for reimbursements to health plan companies is not sufficient to fully reimburse health plan companies for the costs of claims for reimbursement for services authorized under this section, health plan companies must continue to cover services authorized under this section.

(b) For any service provided under this section, the enrollee shall not owe the provider more than the cost‑sharing amount the enrollee would be required to pay if the services were performed by an in-network provider under the enrollee's new health plan.

EFFECTIVE DATE. This section is effective for health plans issued after December 31, 2016, and before March 2, 2017, and that are in effect for all or a portion of calendar year 2017. This section expires June 30, 2018.

Sec. 16. COSTS RELATED TO IMPLEMENTATION OF THIS ACT.

A state agency that incurs administrative costs to implement any provision in this act and does not receive an appropriation for administrative costs in this act, must implement the act within the limits of existing appropriations.

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

Sec. 17. INSURANCE MARKET OPTIONS.

The commissioner of commerce shall report by March 1, 2017, to the standing committees of the legislature having jurisdiction over insurance and health on the past and future use of Minnesota Statutes 2005, section 62L.056, and Minnesota Statutes, section 62Q.188, including:

(1) rate and form filings received, approved, or withdrawn;

(2) barriers to current utilization, including federal and state laws; and

(3) recommendations for allowing or increasing the offering of health plans compliant with Minnesota Statutes, section 62Q.188.

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

Sec. 18. APPROPRIATION.

$15,000,000 in fiscal year 2017 is appropriated from the general fund to the commissioner of management and budget to reimburse health plan companies for costs of claims eligible for reimbursement for coverage of transition of care services. Of this amount, $272,400 is available to the commissioner for purposes of administering reimbursement for coverage of transition of care services and administering the premium subsidy program in article 1. This is a onetime appropriation and is available until June 30, 2018. Any funds remaining from this appropriation after June 30, 2018, shall be transferred on July 1, 2018, from the general fund to the budget reserve account in Minnesota Statutes, section 16A.152, subdivision 1a.

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

Journal of the House - 9th Day - Thursday, January 26, 2017 - Top of Page 234

Sec. 19. REPEALER.

(a) Minnesota Statutes 2016, section 62D.12, subdivision 9, is repealed effective the day following final enactment.

(b) Laws 2007, chapter 147, article 12, section 14, as amended by Laws 2010, chapter 344, section 4, Laws 2010, chapter 384, section 99, Laws 2013, chapter 135, article 1, section 9; Laws 2010, chapter 384, section 99; and Laws 2013, chapter 135, article 1, section 9, are repealed effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to health care coverage; providing a temporary program to help pay for health insurance premiums; requiring audits by the legislative auditor; modifying requirements for health maintenance organizations; modifying provisions governing health insurance; authorizing agricultural cooperative health plans; modifying a tax provision; authorizing transition of care coverage for 2017; requiring reports; transferring funds; appropriating money; amending Minnesota Statutes 2016, sections 60A.08, subdivision 15; 60A.235, subdivision 3; 60A.236; 62D.02, subdivision 4; 62D.03, subdivision 1; 62D.05, subdivision 1; 62D.06, subdivision 1; 62D.19; 62E.02, subdivision 3; 62K.10, by adding a subdivision; 62L.12, subdivision 2; 297I.05, subdivision 12; proposing coding for new law in Minnesota Statutes, chapters 62H; 62Q; repealing Minnesota Statutes 2016, section 62D.12, subdivision 9; Laws 2007, chapter 147, article 12, section 14, as amended; Laws 2010, chapter 384, section 99; Laws 2013, chapter 135, article 1, section 9."

We request the adoption of this report and repassage of the bill.

Senate Conferees: Michelle R. Benson, Jim Abeler, Gary H. Dahms, Scott M. Jensen and Melisa Franzen.

House Conferees: Joe Hoppe, Greg Davids, Matt Dean, Dan Fabian and Laurie Halverson.

Hoppe moved that the report of the Conference Committee on S. F. No. 1 be adopted and that the bill be repassed as amended by the Conference Committee.

Schultz moved that the House refuse to adopt the report of the Conference Committee on S. F. No. 1 and that the bill be returned to the Conference Committee.

A roll call was requested and properly seconded.

The question was taken on the Schultz motion and the roll was called. There were 44 yeas and 83 nays as follows:

Those who voted in the affirmative were: