Journal of the House - 20th Day - Thursday, February 23, 2017

A quorum was present.

Mahoney and Metsa were excused.

Mariani and Wills were excused until 4:40 p.m.

The Chief Clerk proceeded to read the Journal of the preceding day. There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 630

PETITIONS AND COMMUNICATIONS

The following communications were received:

STATE OF MINNESOTA

OFFICE OF THE GOVERNOR

SAINT PAUL 55155

February 17, 2017

The Honorable Kurt Daudt

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Daudt:

Please be advised that I have received, approved, signed, and deposited in the Office of the Secretary of State the following House File:

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

Sincerely,

Mark Dayton

Governor

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

ST. PAUL 55155

The Honorable Kurt L. Daudt

Speaker of the House of Representatives

The Honorable Michelle L. Fischbach

President of the Senate

I have the honor to inform you that the following enrolled Act of the 2017 Session of the State Legislature has been received from the Office of the Governor and is deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

S. F.

No.

H. F.

No.

Session Laws

Chapter No.

Time and

Date Approved

2017

Date Filed

2017

14 4 10:05 a.m. February 17 February 21

Sincerely,

Steve Simon

Secretary of State

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REPORTS OF STANDING COMMITTEES AND DIVISIONS

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

H. F. No. 115, A bill for an act relating to taxation; individual income; allowing a subtraction for meal expenses of first responders; amending Minnesota Statutes 2016, section 290.0132, by adding a subdivision.

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

The report was adopted.

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

H. F. No. 124, A bill for an act relating to transportation; prohibiting road authorities from establishing certain requirements and permits that govern mowing and haying; amending Minnesota Statutes 2016, section 160.232.

Reported the same back with the following amendments:

Page 2, line 2, delete "road authority, as provided in" and insert "commissioner under"

Page 2, delete lines 7 to 12 and insert:

"(b) A landowner or occupant of land that is adjacent to a trunk highway right-of-way may mow or hay the adjacent right-of-way, or may designate another person who may mow or hay. Mowing or haying under this paragraph does not require notice to the commissioner."

Page 2, lines 24 to 28, delete the new language and strike the old language

Page 2, after line 28, insert:

"(b) The commissioner, in consultation with the commissioners of agriculture and natural resources, shall maintain vegetation in trunk highway rights-of-way that (1) is conducive to local animal agriculture and wildlife, and (2) maintains public safety."

Amend the title as follows:

Page 1, line 2, after "transportation;" insert "governing mowing authority and management practices in road rights-of-way;"

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

The report was adopted.

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

H. F. No. 140, A bill for an act relating to education; directing the commissioner of education to plan for restructuring Minnesota's teacher licensure system.

Reported the same back with the following amendments:

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Delete everything after the enacting clause and insert:

"ARTICLE 1

PROFESSIONAL EDUCATOR LICENSING AND STANDARDS BOARD

Section 1. Minnesota Statutes 2016, section 122A.06, is amended to read:

122A.06 DEFINITIONS.

Subdivision 1. Scope. For the purpose of sections 122A.05 to ~~122A.09~~ 122A.093, the terms defined in this section have the meanings given them, unless another meaning is clearly indicated.

Subd. 2. Teacher. "Teacher" means a classroom teacher or other similar professional employee required to hold a license from the Professional Educator Licensing and Standards Board ~~of Teaching~~.

Subd. 3. Board. "Board" means the Professional Educator Licensing and Standards Board ~~of Teaching~~.

Subd. 4. Comprehensive, scientifically based reading instruction. (a) "Comprehensive, scientifically based reading instruction" includes a program or collection of instructional practices that is based on valid, replicable evidence showing that when these programs or practices are used, students can be expected to achieve, at a minimum, satisfactory reading progress. The program or collection of practices must include, at a minimum, effective, balanced instruction in all five areas of reading: phonemic awareness, phonics, fluency, vocabulary development, and reading comprehension.

Comprehensive, scientifically based reading instruction also includes and integrates instructional strategies for continuously assessing, evaluating, and communicating the student's reading progress and needs in order to design and implement ongoing interventions so that students of all ages and proficiency levels can read and comprehend text, write, and apply higher level thinking skills. For English learners developing literacy skills, districts are encouraged to use strategies that teach reading and writing in the students' native language and English at the same time.

(b) "Fluency" is the ability of students to read text with speed, accuracy, and proper expression.

(c) "Phonemic awareness" is the ability of students to notice, think about, and manipulate individual sounds in spoken syllables and words.

(d) "Phonics" is the understanding that there are systematic and predictable relationships between written letters and spoken words. Phonics instruction is a way of teaching reading that stresses learning how letters correspond to sounds and how to apply this knowledge in reading and spelling.

(e) "Reading comprehension" is an active process that requires intentional thinking during which meaning is constructed through interactions between text and reader. Comprehension skills are taught explicitly by demonstrating, explaining, modeling, and implementing specific cognitive strategies to help beginning readers derive meaning through intentional, problem-solving thinking processes.

(f) "Vocabulary development" is the process of teaching vocabulary both directly and indirectly, with repetition and multiple exposures to vocabulary items. Learning in rich contexts, incidental learning, and use of computer technology enhance the acquiring of vocabulary.

(g) Nothing in this subdivision limits the authority of a school district to select a school's reading program or curriculum.

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Subd. 5. Field. A "field" or "subject area" means the content area in which a teacher may become licensed to teach.

Subd. 6. Shortage. "Shortage" means an inadequate supply of licensed personnel in a given licensure area, as identified in the most recent report submitted by the commissioner of education to the legislature under section 127A.05, subdivision 6, or the Professional Educator Licensing and Standards Board under section 122A.091, subdivision 5.

EFFECTIVE DATE. This section is effective September 1, 2017.

Sec. 2. Minnesota Statutes 2016, section 122A.07, is amended to read:

122A.07 ~~BOARD OF TEACHING~~ PROFESSIONAL EDUCATOR LICENSING AND STANDARDS BOARD MEMBERSHIP.

Subdivision 1. Appointment of members. The Professional Educator Licensing and Standards Board ~~of Teaching~~ consists of 11 members appointed by the governor, with the advice and consent of the senate. Membership terms, compensation of members, removal of members, the filling of membership vacancies, and fiscal year and reporting requirements are as provided in sections 214.07 to 214.09. No member may be reappointed for more than one additional term.

Subd. 2. Eligibility; board composition. Except for the ~~representatives~~ representative of ~~higher education and~~ the public, to be eligible for appointment to the Professional Educator Licensing and Standards Board ~~of Teaching~~, a person must ~~be a teacher currently teaching in a Minnesota school and fully licensed for the position held and~~ have at least five years of teaching experience ~~in Minnesota, including the two years immediately preceding nomination and appointment~~. Each nominee, other than a public nominee, must be selected on the basis of professional experience and knowledge of teacher education, accreditation, and licensure. The board must be composed of:

(1) six teachers who are currently teaching in a Minnesota school or who were teaching at the time of the appointment ~~and who do not qualify under clause (2) or (3), at least four of whom must be teaching in a public school~~, at least one of whom must be a teacher in a charter school, and one of whom must be licensed in either a geographic or license shortage area, and none of whom may be serving in an administrative function at a school district or school or any position with the exclusive bargaining representative of teachers as of the effective date of this section;

(2) ~~one higher education representative, who must be a faculty member preparing teachers~~ one superintendent from the seven-county metropolitan area, as defined in section 473.121, subdivision 2;

(3) one ~~school administrator~~ superintendent from outside the seven-county metropolitan area, as defined in section 473.121, subdivision 2; ~~and~~

(4) ~~three members of the public, two of whom must be present or former members of school boards~~ one elementary school principal;

(5) one secondary school principal; and

(6) one member of the public that may be a current or former school board member.

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Subd. 2a. First appointments. (a) The governor shall nominate all members to the Professional Educator Licensing and Standards Board. The terms of the initial board members must be as follows:

(1) two members must be appointed for terms that expire January 1, 2019;

(2) three members must be appointed for terms that expire January 1, 2020;

(3) three members must be appointed for terms that expire January 1, 2021; and

(4) three members must be appointed for terms that expire January 1, 2022.

(b) Members of the Board of Teaching as of January 1, 2017, are ineligible for first appointments to the Professional Educator Licensing and Standards Board for four years from the effective date of this section.

Subd. 3. Vacant position. With the exception of a teacher who retires from teaching during the course of completing a board term, the position of a member who leaves Minnesota or whose employment status changes to a category different from that from which appointed is deemed vacant.

Subd. 4. ~~Administration,~~ Terms, compensation; removal; vacancies. The ~~provision of staff, administrative services and office space; the~~ review and processing of complaints; the setting of fees; the selection and duties of an executive secretary to serve the board; and other provisions relating to board operations not provided in this chapter are as provided in chapter 214. Membership terms, compensation of members, removal of members, the filling of membership vacancies, and fiscal year and reporting requirements are as provided in sections 214.07 to 214.09.

Subd. 4a. Administration. (a) The governor must appoint an executive director of the Professional Educator Licensing and Standards Board. The executive director may be removed by the governor. The board must review the performance of the executive director and set the salary of the executive director. The salary of the executive director must not exceed the limit for a position listed in section 15A.0815, subdivision 2.

(b) The executive director of the board shall be the chief administrative officer for the board but shall not be a member of the board. The executive director shall maintain the records of the board, account for all fees received by the board, supervise and direct employees servicing the board, and perform other services as directed by the board.

(1) purchasing services;

(2) accounting services;

(3) advisory personnel services;

(4) consulting services relating to evaluation procedures and techniques;

(5) data processing;

(6) duplicating;

(7) mailing services;

(8) automated printing of license renewals; and

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(9) such other similar services of a housekeeping nature as are generally available to other agencies of state government.

(d) The Department of Education must provide suitable offices and other space to the board at no cost until January 1, 2020. Thereafter, the board may contract with either the Department of Education or the Department of Administration for the provision of suitable offices and other space, joint conference and hearing facilities, and examination rooms.

Subd. 5. District reimbursement for costs of substitute teachers. The Professional Educator Licensing and Standards Board may reimburse local school districts for the costs of substitute teachers employed when regular teachers are providing professional assistance to the state by serving on the board or on a committee or task force appointed by the board and charged to make recommendations concerning standards for teacher licensure in this state.

EFFECTIVE DATE. This section is effective September 1, 2017.

Sec. 3. Minnesota Statutes 2016, section 122A.08, is amended to read:

122A.08 MEETINGS.

Subdivision 1. Meetings. The Professional Educator Licensing and Standards Board ~~of Teaching~~ must meet regularly at the times and places as the board determines. Meetings must be called by the chair or at the written request of any eight members.

Subd. 2. Executive secretary. The Professional Educator Licensing and Standards Board ~~of Teaching~~ must have an executive secretary who is in the unclassified civil service and who is not a member of the board. The executive secretary must fulfill the duties provided in section 122A.09, subdivision 6.

EFFECTIVE DATE. This section is effective September 1, 2017.

Sec. 4. Minnesota Statutes 2016, section 122A.09, subdivision 1, is amended to read:

Subdivision 1. Code of ethics. The Professional Educator Licensing and Standards Board ~~of Teaching~~ must develop by rule a code of ethics covering standards of professional teaching practices, including areas of ethical conduct and professional performance and methods of enforcement.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 5. Minnesota Statutes 2016, section 122A.09, subdivision 2, is amended to read:

Subd. 2. Advise members of profession. The Professional Educator Licensing and Standards Board must act in an advisory capacity to members of the profession in matters of interpretation of the code of ethics.

EFFECTIVE DATE. This section is effective September 1, 2017.

Sec. 6. Minnesota Statutes 2016, section 122A.09, subdivision 3, is amended to read:

Subd. 3. Election of chair and officers. The Professional Educator Licensing and Standards Board shall elect a chair and such other officers as it may deem necessary.

EFFECTIVE DATE. This section is effective July 1, 2018.

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Sec. 7. Minnesota Statutes 2016, section 122A.09, subdivision 4, is amended to read:

Subd. 4. ~~License and rules~~ Licensing. ~~(a)~~ The Professional Educator Licensing and Standards Board must ~~adopt rules to license public school teachers and interns subject to chapter 14.~~ license teachers, as defined in section 122A.15, subdivision 1, except for supervisory personnel, as defined in section 122A.15, subdivision 2. The board must not delegate its authority to make all licensing decisions with respect to candidates for teacher licensure. The board must evaluate candidates for compliance with statutory or rule requirements for licensure and develop licensure verification requirements.

(b) The board must require all candidates for teacher licensure to demonstrate a passing score on a board‑adopted skills examination in reading, writing, and mathematics, as a requirement for an initial professional five-year teaching license, except that the board may issue up to four initial professional one-year teaching licenses to an otherwise qualified candidate who has not yet passed the board-adopted skills exam. The board must require colleges and universities offering a board-approved teacher preparation program to provide remedial assistance to persons who did not achieve a qualifying score on the board-adopted skills examination, including those for whom English is a second language. The requirement to pass a board-adopted reading, writing, and mathematics skills examination does not apply to nonnative English speakers, as verified by qualified Minnesota school district personnel or Minnesota higher education faculty, who, after meeting the content and pedagogy requirements under this subdivision, apply for a teaching license to provide direct instruction in their native language or world language instruction under section 120B.022, subdivision 1. The Board of Teaching and the entity administering the content, pedagogy, and skills examinations must allow any individual who produces documentation of a disability in the form of an evaluation, 504 plan, or individual education program (IEP) to receive the same testing accommodations on the content, pedagogy, and skills examinations that the applicant received during their secondary or postsecondary education.

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

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

(e) The board must adopt rules requiring candidates for professional five-year teaching licenses to pass an examination of general pedagogical knowledge and examinations of licensure-specific teaching skills. The rules shall be effective by September 1, 2001. The rules under this paragraph also must require candidates for initial

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licenses to teach prekindergarten or elementary students to pass, as part of the examination of licensure-specific teaching skills, test items assessing the candidates' knowledge, skill, and ability in comprehensive, scientifically based reading instruction under section 122A.06, subdivision 4, and their knowledge and understanding of the foundations of reading development, the development of reading comprehension, and reading assessment and instruction, and their ability to integrate that knowledge and understanding.

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

(g) The board must grant licenses to interns and to candidates for professional five-year teaching licenses based on appropriate professional competencies that are aligned with the board's licensing system and students' diverse learning needs. All teacher candidates must have preparation in English language development and content instruction for English learners in order to be able to effectively instruct the English learners in their classrooms. The board must include these licenses in a statewide differentiated licensing system that creates new leadership roles for successful experienced teachers premised on a collaborative professional culture dedicated to meeting students' diverse learning needs in the 21st century, recognizes the importance of cultural and linguistic competencies, including the ability to teach and communicate in culturally competent and aware ways, and formalizes mentoring and induction for newly licensed teachers provided through a teacher support framework.

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

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

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

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

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

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

(n) The board must adopt rules that require all licensed teachers who are renewing their professional five-year teaching licenses to include in their renewal requirements at least one hour of suicide prevention best practices in each licensure renewal period that are based on nationally recognized evidence-based programs and practices,

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among the continuing education credits required to renew a license under this paragraph, and further preparation, first, in understanding the key warning signs of early-onset mental illness in children and adolescents and then, during subsequent licensure renewal periods, preparation may include providing a more in-depth understanding of students' mental illness trauma, accommodations for students' mental illness, parents' role in addressing students' mental illness, Fetal Alcohol Spectrum Disorders, autism, the requirements of section 125A.0942 governing restrictive procedures, and de-escalation methods, among other similar topics.

(o) The board must adopt rules by January 1, 2016, to license applicants under sections 122A.23 and 122A.245. The rules must permit applicants to demonstrate their qualifications through the board's recognition of a teaching license from another state in a similar content field, completion of a state-approved teacher preparation program, teaching experience as the teacher of record in a similar licensure field, depth of content knowledge, depth of content methods or general pedagogy, subject-specific professional development and contribution to the field, or classroom performance as determined by documented student growth on normed assessments or documented effectiveness on evaluations. The rules must adopt criteria for determining a "similar content field" and "similar licensure area."

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 8. Minnesota Statutes 2016, section 122A.09, subdivision 4a, is amended to read:

Subd. 4a. ~~Teacher and administrator preparation and performance data; report~~ Reports. (a) The Board of Teaching and the Board of School Administrators, in cooperation with the Minnesota Association of Colleges of Teacher Education and Minnesota colleges and universities offering board-adopted teacher or administrator preparation programs, annually must collect and report summary data on teacher and administrator preparation and performance outcomes, consistent with this subdivision. The Board of Teaching and the Board of School Administrators annually by June 1 must update and post the reported summary preparation and performance data on teachers and administrators from the preceding school years on a Web site hosted jointly by the boards. The Professional Educator Licensing and Standards Board must provide reports in accordance with section 122A.091.

(b) Publicly reported summary data on teacher preparation programs must include: student entrance requirements for each Board of Teaching-approved program, including grade point average for enrolling students in the preceding year; the average board-adopted skills examination or ACT or SAT scores of students entering the program in the preceding year; summary data on faculty qualifications, including at least the content areas of faculty undergraduate and graduate degrees and their years of experience either as kindergarten through grade 12 classroom teachers or school administrators; the average time resident and nonresident program graduates in the preceding year needed to complete the program; the current number and percent of students by program who graduated, received a standard Minnesota teaching license, and were hired to teach full time in their licensure field in a Minnesota district or school in the preceding year; the number of content area credits and other credits by undergraduate program that students in the preceding school year needed to complete to graduate; students' pass rates on skills and subject matter exams required for graduation in each program and licensure area in the preceding school year; survey results measuring student and graduate satisfaction with the program in the preceding school year; a standard measure of the satisfaction of school principals or supervising teachers with the student teachers assigned to a school or supervising teacher; and information under paragraphs (d) and (e). Program reporting must be consistent with subdivision 11.

(c) Publicly reported summary data on administrator preparation programs approved by the Board of School Administrators must include: summary data on faculty qualifications, including at least the content areas of faculty undergraduate and graduate degrees and their years of experience either as kindergarten through grade 12 classroom teachers or school administrators; the average time program graduates in the preceding year needed to complete the program; the current number and percent of students who graduated, received a standard Minnesota administrator license, and were employed as an administrator in a Minnesota school district or school in the preceding year; the

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number of credits by graduate program that students in the preceding school year needed to complete to graduate; survey results measuring student, graduate, and employer satisfaction with the program in the preceding school year; and information under paragraphs (f) and (g). Program reporting must be consistent with section 122A.14, subdivision 10.

(d) School districts annually by October 1 must report to the Board of Teaching the following information for all teachers who finished the probationary period and accepted a continuing contract position with the district from September 1 of the previous year through August 31 of the current year: the effectiveness category or rating of the teacher on the summative evaluation under section 122A.40, subdivision 8, or 122A.41, subdivision 5; the licensure area in which the teacher primarily taught during the three-year evaluation cycle; and the teacher preparation program preparing the teacher in the teacher's primary areas of instruction and licensure.

(e) School districts annually by October 1 must report to the Board of Teaching the following information for all probationary teachers in the district who were released or whose contracts were not renewed from September 1 of the previous year through August 31 of the current year: the licensure areas in which the probationary teacher taught; and the teacher preparation program preparing the teacher in the teacher's primary areas of instruction and licensure.

(f) School districts annually by October 1 must report to the Board of School Administrators the following information for all school principals and assistant principals who finished the probationary period and accepted a continuing contract position with the district from September 1 of the previous year through August 31 of the current year: the effectiveness category or rating of the principal or assistant principal on the summative evaluation under section 123B.147, subdivision 3; and the principal preparation program providing instruction to the principal or assistant principal.

(g) School districts annually by October 1 must report to the Board of School Administrators all probationary school principals and assistant principals in the district who were released or whose contracts were not renewed from September 1 of the previous year through August 31 of the current year.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 9. Minnesota Statutes 2016, section 122A.09, subdivision 6, is amended to read:

Subd. 6. Register of persons licensed. The executive secretary of the Professional Educator Licensing and Standards Board ~~of Teaching shall~~ must keep a record of the proceedings of and a register of all persons licensed pursuant to the provisions of this chapter. The register must show the name, address, license number and the renewal of the license. The board must on July 1, of each year or as soon thereafter as is practicable, compile a list of such duly licensed teachers ~~and transmit a copy of the list to the board~~. A copy of the register must be available during business hours at the office of the board to any interested person.

EFFECTIVE DATE. This section is effective September 1, 2017.

Sec. 10. Minnesota Statutes 2016, section 122A.09, subdivision 7, is amended to read:

Subd. 7. ~~Commissioner's assistance;~~ Professional Educator Licensing and Standards Board money. ~~The commissioner shall provide all necessary materials and assistance for the transaction of the business of the Board of Teaching and~~ All moneys received by the Professional Educator Licensing and Standards Board ~~of Teaching~~ shall be paid into the state treasury as provided by law. The expenses of administering sections 122A.01, 122A.05 to 122A.09, 122A.15, 122A.16, 122A.17, 122A.18, 122A.181, 122A.182, 122A.183, 122A.184, 122A.185, 122A.186, 122A.187, 122A.188, 122A.20, 122A.21, 122A.22, 122A.23, 122A.245, 122A.26, 122A.30, 122A.40, 122A.41,

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122A.42, 122A.45, 122A.49, 122A.54, 122A.55, 122A.56, 122A.57, and 122A.58 which are incurred by the Professional Educator Licensing and Standards Board ~~of Teaching~~ shall be paid for from appropriations made to the Professional Educator Licensing and Standards Board ~~of Teaching~~.

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

Sec. 11. Minnesota Statutes 2016, section 122A.09, subdivision 9, is amended to read:

Subd. 9. Professional Educator Licensing and Standards Board ~~may~~ must adopt rules. (a) The Professional Educator Licensing and Standards Board ~~of Teaching may~~ must adopt rules subject to the provisions of chapter 14 to implement sections 122A.05 to 122A.09, 122A.092, 122A.16, 122A.17, 122A.18, 122A.181, 122A.182, 122A.183, 122A.184, 122A.185, 122A.186, 122A.187, 122A.188, 122A.20, 122A.21, ~~and~~ 122A.23, 122A.245, 122A.26, 122A.28, and 122A.29.

(b) The board must adopt rules relating to fields of licensure, including a process for granting permission to a licensed teacher to teach in a field that is different from the teacher's field of licensure without change to the teacher's license tier level.

(d) If a rule adopted by the board is in conflict with a session law or statute, the law or statute prevails. Terms adopted in rule must be clearly defined and must not be construed to conflict with terms adopted in statute or session law.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 12. Minnesota Statutes 2016, section 122A.09, subdivision 10, is amended to read:

Subd. 10. Permissions. (a) Notwithstanding subdivision 9 and sections 14.055 and 14.056, the Professional Educator Licensing and Standards Board ~~of Teaching~~ may grant waivers to its rules upon application by a school district or a charter school for purposes of implementing experimental programs in learning or management.

(b) To enable a school district or a charter school to meet the needs of students enrolled in an alternative education program and to enable licensed teachers instructing those students to satisfy content area licensure requirements, the Professional Educator Licensing and Standards Board ~~of Teaching~~ annually may permit a licensed teacher teaching in an alternative education program to instruct students in a content area for which the teacher is not licensed, consistent with paragraph (a).

(c) A special education license permission issued by the Professional Educator Licensing and Standards Board ~~of Teaching~~ for a primary employer's low-incidence region is valid in all low-incidence regions.

(d) The Board of Teaching may issue a one-year professional license under paragraph (a), which the board may renew two times, to allow a person holding a full credential from the American Montessori Society, a diploma from Association Montessori Internationale, or a certificate of completion from a program accredited by the Montessori Accreditation Council for Teacher Education to teach in a Montessori program operated by a school district or charter school.

(e) The Board of Teaching may grant a one-year waiver, renewable two times, to allow individuals who hold a bachelor's degree from an accredited postsecondary institution, demonstrate occupational competency based on at least three years of full-time work experience in business or industry, and enroll and make satisfactory progress in an alternative preparation program leading to certification as a career and technical education instructor to teach career and technical education courses offered by a school district or charter school. A candidate that has obtained career

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and technical education certification may apply for a Tier 1 license under section 122A.181. Consistent with this paragraph and section 136F.361, the Professional Educator Licensing and Standards Board ~~of Teaching~~ must ~~strongly encourage~~ require approved college or university-based teacher preparation programs ~~and institutions~~ throughout Minnesota to develop alternative pathways for certifying and licensing high school career and technical education instructors and teachers, allowing such candidates to meet certification and licensure standards that demonstrate their content knowledge, classroom experience, and pedagogical practices and their qualifications based on a combination of occupational testing, professional certification or licensure, and long-standing work experience.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 13. [122A.091] REPORTS.

Subdivision 1. Teacher and administrator preparation and performance data; report. (a) The Professional Educator Licensing and Standards Board and the Board of School Administrators, in cooperation with the Minnesota Association of Colleges of Teacher Education and Minnesota colleges and universities offering board‑adopted teacher or administrator preparation programs, annually must collect and report summary data on teacher and administrator preparation and performance outcomes, consistent with this subdivision. The Professional Educator Licensing and Standards Board and the Board of School Administrators annually by June 1 must update and post the reported summary preparation and performance data on teachers and administrators from the preceding school years on a Web site hosted jointly by the boards.

(b) Publicly reported summary data on teacher preparation programs must include:

(1) student entrance requirements for each Professional Educator Licensing and Standards Board-approved program, including grade point average for enrolling students in the preceding year;

(2) the average board-adopted skills examination or ACT or SAT scores of students entering the program in the preceding year;

(3) summary data on faculty qualifications, including at least the content areas of faculty undergraduate and graduate degrees and their years of experience either as kindergarten through grade 12 classroom teachers or school administrators;

(4) the average time resident and nonresident program graduates in the preceding year needed to complete the program;

(5) the current number and percent of students by program who graduated, received a standard Minnesota teaching license, and were hired to teach full time in their licensure field in a Minnesota district or school in the preceding year;

(6) the number of content area credits and other credits by undergraduate program that students in the preceding school year needed to complete to graduate;

(7) students' pass rates on skills and subject matter exams required for graduation in each program and licensure area in the preceding school year;

(8) survey results measuring student and graduate satisfaction with the program in the preceding school year;

(9) a standard measure of the satisfaction of school principals or supervising teachers with the student teachers assigned to a school or supervising teacher; and

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(10) information under subdivision 3, paragraphs (a) and (b).

Program reporting must be consistent with subdivision 2.

(c) Publicly reported summary data on administrator preparation programs approved by the Board of School Administrators must include:

(1) summary data on faculty qualifications, including at least the content areas of faculty undergraduate and graduate degrees and the years of experience either as kindergarten through grade 12 classroom teachers or school administrators;

(2) the average time program graduates in the preceding year needed to complete the program;

(3) the current number and percent of students who graduated, received a standard Minnesota administrator license, and were employed as an administrator in a Minnesota school district or school in the preceding year;

(4) the number of credits by graduate program that students in the preceding school year needed to complete to graduate;

(5) survey results measuring student, graduate, and employer satisfaction with the program in the preceding school year; and

(6) information under subdivision 3, paragraphs (c) and (d).

Program reporting must be consistent with section 122A.14, subdivision 10.

Subd. 2. Teacher preparation program reporting. By December 31, 2018, and annually thereafter, the Professional Educator Licensing and Standards Board shall report and publish on its Web site the cumulative summary results of at least three consecutive years of data reported to the board under subdivision 1, paragraph (b). Where the data are sufficient to yield statistically reliable information and the results would not reveal personally identifiable information about an individual teacher, the board shall report the data by teacher preparation program.

Subd. 3. School district reports. (a) School districts annually by October 1 must report to the Professional Educator Licensing and Standards Board the following information for all teachers who finished the probationary period and accepted a continuing contract position with the district from September 1 of the previous year through August 31 of the current year:

(1) the effectiveness category or rating of the teacher on the summative evaluation under section 122A.40, subdivision 8, or 122A.41, subdivision 5;

(2) the licensure area in which the teacher primarily taught during the three-year evaluation cycle; and

(3) the teacher preparation program preparing the teacher in the teacher's primary areas of instruction and licensure.

(b) School districts annually by October 1 must report to the Professional Educator Licensing and Standards Board the following information for all probationary teachers in the district who were released or whose contracts were not renewed from September 1 of the previous year through August 31 of the current year:

(1) the licensure areas in which the probationary teacher taught; and

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(2) the teacher preparation program preparing the teacher in the teacher's primary areas of instruction and licensure.

(c) School districts annually by October 1 must report to the Board of School Administrators the following information for all school principals and assistant principals who finished the probationary period and accepted a continuing contract position with the district from September 1 of the previous year through August 31 of the current year:

(1) the effectiveness category or rating of the principal or assistant principal on the summative evaluation under section 123B.147, subdivision 3; and

(2) the principal preparation program providing instruction to the principal or assistant principal.

(d) School districts annually by October 1 must report to the Board of School Administrators all probationary school principals and assistant principals in the district who were released or whose contracts were not renewed from September 1 of the previous year through August 31 of the current year.

Subd. 4. State reports. The Professional Educator Licensing and Standards Board must prepare reports in accordance with section 214.07.

Subd. 5. Survey of districts. (a) The Professional Educator Licensing and Standards Board must survey the state's school districts and teacher preparation programs and report to the education committees of the legislature by February 1, 2021, and each odd-numbered year thereafter on the status of teacher early retirement patterns, the access to effective and more diverse teachers who reflect the students under section 120B.35, subdivision 3, paragraph (b), clause (2), enrolled in a district or school, the teacher shortage, and the substitute teacher shortage, including patterns and shortages in licensure field areas and the economic development regions of the state.

(b) The report must also include:

(1) aggregate data on teachers' self-reported race and ethnicity;

(2) data on how districts are making progress in hiring teachers and substitutes in the areas of shortage; and

(3) a five-year projection of teacher demand for each district, taking into account the students under section 120B.35, subdivision 3, paragraph (b), clause (2), expected to enroll in the district during that five-year period.

Subd. 6. Implementation report. By January 1, 2019, the Professional Educator Licensing and Standards Board must prepare a report to the legislature on the implementation of the teacher licensure system established under sections 122A.18 to 122A.184. The report must include the number of applicants for license in each tier, the number of applications granted and denied, summary data on the reasons applications were denied, and the status of the board's rulemaking process for all licensure related rules.

EFFECTIVE DATE. This section is effective September 1, 2017.

Sec. 14. [122A.092] TEACHER PREPARATION PROGRAMS.

Subdivision 1. Rules. The board must adopt rules to approve teacher preparation programs.

Subd. 2. Requirements for board approval. Teacher preparation programs must demonstrate the following to obtain board approval:

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(1) the program has implemented a research-based, results-oriented curriculum that focuses on the skills teachers need in order to be effective;

(2) the program provides a school-year-long student teaching program that combines clinical opportunities with academic coursework and in-depth student teaching experiences to offer students ongoing mentorship, coaching, and assessment, help in preparing a professional development plan, and structured learning experiences;

(3) the program demonstrates effectiveness based on proficiency of graduates in demonstrating attainment of program outcomes;

(4) the program includes a common core of teaching knowledge and skills. This common core shall meet the standards developed by the Interstate New Teacher Assessment and Support Consortium in its 1992 "Model Standards for Beginning Teacher Licensing and Development." Amendments to standards adopted under this clause are covered by chapter 14. The Professional Educator Licensing and Standards Board shall report annually to the education committees of the legislature on the performance of teacher candidates on common core assessments of knowledge and skills under this clause during the most recent school year; and

(5) the program includes instruction on the knowledge and skills needed to provide appropriate instruction to English learners to support and accelerate their academic literacy, including oral academic language and achievement in content areas in a regular classroom setting.

Subd. 3. Specialized credentials. The board must adopt rules creating flexible, specialized teaching licenses, credentials, and other endorsement forms to increase students' participation in language immersion programs, world language instruction, career development opportunities, work-based learning, early college courses and careers, career and technical programs, Montessori schools, and project- and place-based learning, among other career and college ready learning offerings.

Subd. 4. Teacher educators. The board must adopt rules requiring teacher educators to work directly with elementary or secondary school teachers in elementary or secondary schools to obtain periodic exposure to the elementary and secondary teaching environments.

Subd. 5. Reading strategies. (a) All colleges and universities approved by the Professional Educator Licensing and Standards Board to prepare persons for classroom teacher licensure must include in their teacher preparation programs research-based best practices in reading, consistent with section 122A.06, subdivision 4, that enables the licensure candidate to teach reading in the candidate's content areas. Teacher candidates must be instructed in using students' native languages as a resource in creating effective differentiated instructional strategies for English learners developing literacy skills. These colleges and universities also must prepare early childhood and elementary teacher candidates for Tier 3 and Tier 4 teaching licenses under sections 122A.183 and 122A.184, respectively, for the portion of the examination under section 122A.185, subdivision 1, paragraph (c), covering assessment of reading instruction.

(b) Board-approved teacher preparation programs for teachers of elementary education must require instruction in applying comprehensive, scientifically based, and balanced reading instruction programs that:

(1) teach students to read using foundational knowledge, practices, and strategies consistent with section 122A.06, subdivision 4, so that all students achieve continuous progress in reading; and

(2) teach specialized instruction in reading strategies, interventions, and remediations that enable students of all ages and proficiency levels to become proficient readers.

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(c) Nothing in this section limits the authority of a school district to select a school's reading program or curriculum.

Subd. 6. Technology strategies. All colleges and universities approved by the Professional Educator Licensing and Standards Board to prepare persons for classroom teacher licensure must include in their teacher preparation programs the knowledge and skills teacher candidates need to engage students with technology and deliver digital and blended learning and curriculum.

Subd. 7. Remain in effect. The approval of teacher preparation programs approved by the Board of Teaching before the effective date of this section must remain in effect unless and until the Professional Educator Licensing and Standards Board denies approval or reapproves the program.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 15. [122A.093] FRAUD; GROSS MISDEMEANOR.

A person who claims to be a licensed teacher without a valid existing license by the board or any person who employs fraud or deception in applying for or securing a license is guilty of a gross misdemeanor.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 16. Minnesota Statutes 2016, section 122A.22, is amended to read:

122A.22 DISTRICT VERIFICATION OF TEACHER LICENSES.

No person shall be accounted a qualified teacher until the school district or charter school contracting with the person for teaching services verifies through the Minnesota education licensing system available on the ~~department~~ Professional Educator Licensing and Standards Board Web site that the person is a qualified teacher, consistent with sections 122A.16 and 122A.44, subdivision 1.

Sec. 17. Minnesota Statutes 2016, section 127A.05, subdivision 6, is amended to read:

Subd. 6. Survey of districts. The commissioner of education shall survey the state's school districts and teacher preparation programs and report to the education committees of the legislature by February 1 of each odd-numbered year until 2020 on the status of teacher early retirement patterns, the access to effective and more diverse teachers who reflect the students under section 120B.35, subdivision 3, paragraph (b), clause (2), enrolled in a district or school, the teacher shortage, and the substitute teacher shortage, including patterns and shortages in subject areas and the economic development regions of the state. The report must also include: aggregate data on teachers' self‑reported race and ethnicity; data on how districts are making progress in hiring teachers and substitutes in the areas of shortage; and a five-year projection of teacher demand for each district, taking into account the students under section 120B.35, subdivision 3, paragraph (b), clause (2), expected to enroll in the district during that five‑year period.

Sec. 18. Minnesota Statutes 2016, section 214.04, subdivision 1, is amended to read:

Subdivision 1. Services provided. The commissioner ~~of education with respect to the Board of Teaching; the commissioner~~ of public safety with respect to the Board of Private Detective and Protective Agent Services; the Board of Peace Officer Standards and Training; and the commissioner of revenue with respect to the Board of Assessors, shall provide suitable offices and other space, joint conference and hearing facilities, examination rooms, and the following administrative support services: purchasing service, accounting service, advisory personnel services, consulting services relating to evaluation procedures and techniques, data processing, duplicating, mailing

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services, automated printing of license renewals, and such other similar services of a housekeeping nature as are generally available to other agencies of state government. Investigative services shall be provided the boards by employees of the Office of Attorney General. The commissioner of health with respect to the health-related licensing boards shall provide mailing and office supply services and may provide other facilities and services listed in this subdivision at a central location upon request of the health-related licensing boards. The commissioner of commerce with respect to the remaining non-health-related licensing boards shall provide the above facilities and services at a central location for the remaining non-health-related licensing boards. The legal and investigative services for the boards shall be provided by employees of the attorney general assigned to the departments servicing the boards. Notwithstanding the foregoing, the attorney general shall not be precluded by this section from assigning other attorneys to service a board if necessary in order to insure competent and consistent legal representation. Persons providing legal and investigative services shall to the extent practicable provide the services on a regular basis to the same board or boards.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 19. Minnesota Statutes 2016, section 214.04, subdivision 3, is amended to read:

Subd. 3. Officers; staff. The executive director of each health-related board and the executive secretary of each non-health-related board shall be the chief administrative officer for the board but shall not be a member of the board. The executive director or executive secretary shall maintain the records of the board, account for all fees received by it, supervise and direct employees servicing the board, and perform other services as directed by the board. The executive directors, executive secretaries, and other employees of the following boards shall be hired by the board, and the executive directors or executive secretaries shall be in the unclassified civil service, except as provided in this subdivision:

(1) Dentistry;

(2) Medical Practice;

(3) Nursing;

(4) Pharmacy;

(5) Accountancy;

(6) Architecture, Engineering, Land Surveying, Landscape Architecture, Geoscience, and Interior Design;

(7) Barber Examiners;

(8) Cosmetologist Examiners;

~~(9) Teaching;~~

~~(10)~~ (9) Peace Officer Standards and Training;

~~(11)~~ (10) Social Work;

~~(12)~~ (11) Marriage and Family Therapy;

~~(13)~~ (12) Dietetics and Nutrition Practice;

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~~(14)~~ (13) Licensed Professional Counseling; and

~~(15)~~ (14) Combative Sports Commission.

The executive directors or executive secretaries serving the boards are hired by those boards and are in the unclassified civil service, except for part-time executive directors or executive secretaries, who are not required to be in the unclassified service. Boards not requiring full-time executive directors or executive secretaries may employ them on a part-time basis. To the extent practicable, the sharing of part-time executive directors or executive secretaries by boards being serviced by the same department is encouraged. Persons providing services to those boards not listed in this subdivision, except executive directors or executive secretaries of the boards and employees of the attorney general, are classified civil service employees of the department servicing the board. To the extent practicable, the commissioner shall ensure that staff services are shared by the boards being serviced by the department. If necessary, a board may hire part-time, temporary employees to administer and grade examinations.

EFFECTIVE DATE. This section is effective September 1, 2017.

Sec. 20. Minnesota Statutes 2016, section 214.045, is amended to read:

214.045 COORDINATION WITH PROFESSIONAL EDUCATOR LICENSING AND STANDARDS BOARD ~~OF TEACHING~~.

The commissioner of health and the health-related licensing boards must coordinate with the Professional Educator Licensing and Standards Board ~~of Teaching~~ when modifying licensure requirements for regulated persons in order to have consistent regulatory requirements for personnel who perform services in schools.

EFFECTIVE DATE. This section is effective September 1, 2017.

Sec. 21. TRANSFER OF POWERS.

(a) The creation of the Professional Educator Licensing and Standards Board shall be considered a transfer by law of the responsibilities of the Board of Teaching and the Minnesota Department of Education with respect to licensure and credentialing of teachers and school personnel to the Professional Educator Licensing and Standards Board for purposes of Minnesota Statutes, section 15.039. All classified and unclassified positions associated with the responsibilities being transferred to the Professional Educator Licensing and Standards Board are transferred with their incumbents to the new agency pursuant to Minnesota Statutes, section 15.039, subdivision 7, except as otherwise provided in Minnesota Statutes, section 122A.07.

(b) The responsibilities of the Minnesota Department of Education with respect to licensure of school administrators are transferred by law to the Board of School Administrators for purposes of section 15.039.

(c) The Professional Educator Licensing and Standards Board must review all rules adopted by the Board of Teaching and amend or repeal rules not consistent with statute. The Professional Educator Licensing and Standards Board must review all teacher preparation programs approved by the Board of Teaching to determine whether the approved programs meet the needs of schools in Minnesota.

EFFECTIVE DATE. This section is effective September 1, 2017.

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Sec. 22. APPROPRIATIONS.

$....... in fiscal year 2018 and $....... in fiscal year 2019 are appropriated from the general fund to the Professional Educator Licensing and Standards Board for teacher and support personnel licensure and credentialing activities.

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

Sec. 23. REVISOR INSTRUCTION.

In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall substitute the term "Professional Educator Licensing and Standards Board" for "Board of Teaching" wherever the term refers to the powers, duties, and responsibilities of the Board of Teaching. The revisor shall also make grammatical changes related to the change in terms.

Sec. 24. REPEALER.

Minnesota Statutes 2016, section 122A.09, subdivisions 5, 8, and 11, are repealed.

EFFECTIVE DATE. This section is effective September 1, 2017.

ARTICLE 2

LICENSURE

Section 1. Minnesota Statutes 2016, section 122A.17, is amended to read:

122A.17 VALIDITY OF CERTIFICATES OR LICENSES.

(a) A rule adopted by the Board of Teaching or the Professional Educator Licensing and Standards Board must not affect the validity of certificates or licenses to teach in effect on July 1, 1974, or the rights and privileges of the holders thereof, except that any such certificate or license may be suspended or revoked for any of the causes and by the procedures specified by law.

(b) All teacher licenses in effect on September 1, 2017, shall remain valid for one additional year after the date the license is scheduled to expire.

EFFECTIVE DATE. This section is effective September 1, 2017.

Sec. 2. Minnesota Statutes 2016, section 122A.18, subdivision 1, is amended to read:

Subdivision 1. Authority to license. (a) The Professional Educator Licensing and Standards Board ~~of Teaching~~ must ~~license teachers, as defined in section 122A.15, subdivision 1, except for supervisory personnel, as defined in section 122A.15, subdivision 2.~~ issue the following teacher licenses to candidates who meet the qualifications prescribed by this chapter:

(1) Tier 1 license under section 122A.181;

(2) Tier 2 license under section 122A.182;

(3) Tier 3 license under section 122A.183; and

(4) Tier 4 license under section 122A.184.

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(b) The Board of School Administrators must license supervisory personnel as defined in section 122A.15, subdivision 2, except for athletic coaches.

~~(c) Licenses under the jurisdiction of the Board of Teaching, the Board of School Administrators, and the commissioner of education must be issued through the licensing section of the department.~~

~~(d)~~ (c) The Professional Educator Licensing and Standards Board ~~of Teaching~~ and the Department of Education must enter into a data sharing agreement to share educational data at the E-12 level for the limited purpose of program approval and improvement for teacher education programs. The program approval process must include targeted redesign of teacher preparation programs to address identified E-12 student areas of concern.

~~(e)~~ (d) The Board of School Administrators and the Department of Education must enter into a data sharing agreement to share educational data at the E-12 level for the limited purpose of program approval and improvement for education administration programs. The program approval process must include targeted redesign of education administration preparation programs to address identified E-12 student areas of concern.

~~(f)~~ (e) For purposes of the data sharing agreements under paragraphs ~~(d)~~ (c) and ~~(e)~~ (d), the Professional Educator Licensing and Standards Board ~~of Teaching~~, Board of School Administrators, and Department of Education may share private data, as defined in section 13.02, subdivision 12, on teachers and school administrators. The data sharing agreements must not include educational data, as defined in section 13.32, subdivision 1, but may include summary data, as defined in section 13.02, subdivision 19, derived from educational data.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 3. Minnesota Statutes 2016, section 122A.18, subdivision 2, is amended to read:

Subd. 2. ~~Teacher and~~ Support personnel qualifications. ~~(a)~~ The Professional Educator Licensing and Standards Board ~~of Teaching~~ must issue licenses and credentials under its jurisdiction to persons the board finds to be qualified and competent for ~~their respective positions, including those meeting the standards adopted under section 122A.09, subdivision 4, paragraph (n)~~ support personnel positions.

(b) The board must require a candidate for teacher licensure to demonstrate a passing score on a board-adopted examination of skills in reading, writing, and mathematics, before being granted a professional five-year teaching license to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special education programs, except that the board may issue up to four temporary, one-year teaching licenses to an otherwise qualified candidate who has not yet passed a board-adopted skills exam. At the request of the employing school district or charter school, the Board of Teaching may issue an initial professional one-year teaching license to an otherwise qualified teacher not passing or demonstrating a passing score on a board-adopted skills examination in reading, writing, and mathematics. For purposes of this section, the initial professional one-year teaching license issued by the board is limited to the current subject or content matter the teacher is employed to teach and limited to the district or charter school requesting the initial professional one-year teaching license. If the board denies the request, it must provide a detailed response to the school administrator as to the reasons for the denial. The board must require colleges and universities offering a board approved teacher preparation program to make available upon request remedial assistance that includes a formal diagnostic component to persons enrolled in their institution who did not achieve a qualifying score on a board-adopted skills examination, including those for whom English is a second language. The colleges and universities must make available assistance in the specific academic areas of candidates' deficiency. School districts may make available upon request similar, appropriate, and timely remedial assistance that includes a formal diagnostic component to those persons employed by the district who completed their teacher education program, who did not achieve a qualifying score on a board-adopted skills examination, and who received an initial professional one-year teaching license to teach in Minnesota. The Board of Teaching shall report annually to the education committees of the legislature on the total number of teacher candidates during the

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most recent school year taking a board-adopted skills examination, the number who achieve a qualifying score on the examination, the number who do not achieve a qualifying score on the examination, and the candidates who have not passed a content or pedagogy exam, disaggregated by categories of race, ethnicity, and eligibility for financial aid.

(c) The Board of Teaching must grant professional five-year teaching licenses only to those persons who have met board criteria for that license, which includes passing a board-adopted skills examination in reading, writing, and mathematics, and the exceptions in section 122A.09, subdivision 4, paragraph (b), that are consistent with this paragraph. The requirement to pass a board-adopted reading, writing, and mathematics skills examination, does not apply to nonnative English speakers, as verified by qualified Minnesota school district personnel or Minnesota higher education faculty, who, after meeting the content and pedagogy requirements under this subdivision, apply for a professional five-year teaching license to provide direct instruction in their native language or world language instruction under section 120B.022, subdivision 1.

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

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 4. Minnesota Statutes 2016, section 122A.18, subdivision 2b, is amended to read:

Subd. 2b. Reading specialist. ~~Not later than July 1, 2002,~~ The Professional Educator Licensing and Standards Board ~~of Teaching~~ must adopt rules providing for reading teacher licensure.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 5. Minnesota Statutes 2016, section 122A.18, subdivision 7a, is amended to read:

Subd. 7a. Permission to substitute teach. (a) The Professional Educator Licensing and Standards Board ~~of Teaching~~ may allow a person who is enrolled in and making satisfactory progress in a board-approved teacher program and who has successfully completed student teaching to be employed as a short-call substitute teacher.

(b) The Professional Educator Licensing and Standards Board ~~of Teaching~~ may issue a lifetime qualified short‑call substitute teaching license to a person who:

(1) was a qualified teacher under section 122A.16 while holding a ~~professional five-year~~ Tier 3 or Tier 4 teaching license issued by the board, under sections 122A.183 and 122A.184, respectively, and receives a retirement annuity from the Teachers Retirement Association or the St. Paul Teachers Retirement Fund Association;

(2) holds an out-of-state teaching license and receives a retirement annuity as a result of the person's teaching experience; or

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(3) held a ~~professional five-year~~ Tier 3 or Tier 4 teaching license issued by the board, under sections 122A.183 and 122A.184, respectively, taught at least three school years in an accredited nonpublic school in Minnesota, and receives a retirement annuity as a result of the person's teaching experience.

A person holding a lifetime qualified short-call substitute teaching license is not required to complete continuing education clock hours. A person holding this license may reapply to the board for either:

(i) a ~~professional five-year~~ Tier 3 or Tier 4 teaching license under sections 122A.183 and 122A.184, respectively, and must again complete continuing education clock hours one school year after receiving the ~~professional five-year~~ Tier 3 or Tier 4 teaching license; or

(ii) a Tier 1 license under section 122A.181, provided that the candidate has a bachelor's degree or an appropriate professional credential in the content area the candidate will teach.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 6. Minnesota Statutes 2016, section 122A.18, subdivision 7c, is amended to read:

Subd. 7c. Temporary military license. The Professional Educator Licensing and Standards Board ~~of Teaching~~ shall establish a temporary license in accordance with section 197.4552 for teaching. The fee for a temporary license under this subdivision shall be $87.90 for an online application or $86.40 for a paper application. The board must provide candidates for a license under this subdivision with information regarding the tiered licensure system provided in sections 122A.18 to 122A.184.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 7. Minnesota Statutes 2016, section 122A.18, subdivision 8, is amended to read:

Subd. 8. Background checks. (a) The Professional Educator Licensing and Standards Board ~~of Teaching~~ and ~~the commissioner of education~~ the Board of School Administrators must request a criminal history background check from the superintendent of the Bureau of Criminal Apprehension on all first-time teaching applicants for licenses under their jurisdiction. Applicants must include with their licensure applications:

(1) an executed criminal history consent form, including fingerprints; and

(2) a money order or cashier's check payable to the Bureau of Criminal Apprehension for the fee for conducting the criminal history background check.

(b) The superintendent of the Bureau of Criminal Apprehension shall perform the background check required under paragraph (a) by retrieving criminal history data as defined in section 13.87 and shall also conduct a search of the national criminal records repository. The superintendent is authorized to exchange fingerprints with the Federal Bureau of Investigation for purposes of the criminal history check. The superintendent shall recover the cost to the bureau of a background check through the fee charged to the applicant under paragraph (a).

(c) The Professional Educator Licensing and Standards Board ~~of Teaching~~ or the ~~commissioner of education~~ Board of School Administrators may issue a license pending completion of a background check under this subdivision, but must notify the individual and the school district or charter school employing the individual that the individual's license may be revoked based on the result of the background check.

EFFECTIVE DATE. This section is effective July 1, 2018.

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Sec. 8. Minnesota Statutes 2016, section 122A.18, is amended by adding a subdivision to read:

Subd. 10. Licensure via portfolio. (a) The Professional Educator Licensing and Standards Board must develop a process for an eligible candidate to obtain any teacher license under subdivision 1, or to add a licensure field, via portfolio. The portfolio licensure application process must be consistent with the requirements in this subdivision.

(b) A candidate for a license must submit to the board one portfolio demonstrating pedagogical competence and one portfolio demonstrating content competence.

(c) A candidate seeking to add a licensure field must submit to the board one portfolio demonstrating content competence for each licensure field the candidate seeks to add.

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

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

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 9. Minnesota Statutes 2016, section 122A.18, is amended by adding a subdivision to read:

Subd. 11. Rules. The Professional Educator Licensing and Standards Board must adopt rules that set forth criteria for determining the following:

(1) similar appropriate credential;

(2) relevant work experience; and

(3) similar content area.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 10. [122A.181] TIER 1 LICENSE.

Subdivision 1. Requirements. The Professional Educator Licensing and Standards Board must issue a Tier 1 license to a candidate who provides information sufficient to demonstrate each of the following:

(1) a school district or charter school has requested that the candidate be issued a license to teach in a specified content area. The school district or charter school must provide the board with confirmation that a criminal background check has been completed for any candidate for whom a teaching license has been requested;

(2) the candidate has completed a bachelor's or associate's degree, or obtained a professional credential that the school district finds sufficient to teach in a specified content area; and

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(3) the candidate has completed the coursework required under subdivision 2.

Subd. 2. Coursework. (a) A candidate for a Tier 1 license must meet the coursework requirement by demonstrating completion of one of the following:

(1) three years of relevant work experience;

(2) 2,000 hours of relevant work experience within the preceding five years;

(3) at least eight upper division credits in the relevant content area;

(4) a passing score on all required licensure exams under section 122A.185;

(5) completion of human relations coursework under section 122A.186; or

(6) experience teaching in a field for which there is no license.

(b) For purposes of paragraph (a), "upper division" means classes normally taken at the junior or senior level of college which require substantial knowledge and skill in the field. Candidates must identify the upper division credits that fulfill the requirement in paragraph (a), clause (3).

Subd. 3. Term of license. The Professional Educator Licensing and Standards Board must issue an initial Tier 1 license for a term of one year. A Tier 1 license may be renewed three times. The board must issue rules setting forth the conditions for additional renewals after the initial license has been renewed three times. If the board fails to issue rules providing conditions for additional renewals, the board must renew a Tier 1 license to a candidate that meets the renewal requirements provided in statute.

Subd. 4. Application. The Professional Educator Licensing and Standards Board must accept applications for a Tier 1 teaching license beginning July 1 of the school year for which the license is requested and must issue or deny the Tier 1 teaching license within 30 days of receiving the completed application.

Subd. 5. Limitations on license. (a) A Tier 1 license is limited to the content matter indicated on the application for the initial Tier 1 license under subdivision 1, clause (1), and limited to the district or charter school that requested the initial Tier 1 license.

(b) A Tier 1 license does not bring an individual within the definition of a teacher for purposes of section 122A.40, subdivision 1, or 122A.41, subdivision 1, clause (a).

(c) A Tier 1 license does not bring an individual within the definition of a "teacher" under section 179A.03, subdivision 18.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 11. [122A.182] TIER 2 LICENSE.

Subdivision 1. Requirements. The Professional Educator Licensing and Standards Board must issue a Tier 2 license to a candidate who provides information sufficient to demonstrate each of the following:

(1) the candidate has completed a bachelor's degree, or obtained a professional credential that the school district finds sufficient to teach in a specified content area; and

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(2) the candidate has completed the coursework required under subdivision 2, or is enrolled in an approved teacher preparation program.

Subd. 2. Coursework. (a) A candidate for a Tier 2 license must meet the coursework requirement by demonstrating completion of two of the following:

(1) at least eight upper division credits in the relevant content area;

(2) field-specific methods of training, including coursework;

(3) at least two years of teaching experience in a similar content area in any state;

(4) a passing score on all required licensure exams under section 122A.185;

(5) completion of human relations coursework under section 122A.186; or

(6) completion of a state-approved teacher preparation program.

Subd. 3. Term of license. The Professional Educator Licensing and Standards Board must issue an initial Tier 2 license for a term of one year. A Tier 2 license may be renewed three times. The board must issue rules setting forth the conditions for additional renewals after the initial license has been renewed three times. If the board fails to issue rules providing conditions for additional renewals, the board must renew a Tier 2 license to a candidate that meets the renewal requirements provided in statute.

Subd. 4. Limitations on license. A Tier 2 license shall not be construed to bring an individual within the definition of a teacher for purposes of section 122A.40, subdivision 1, or 122A.41, subdivision 1, clause (a).

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 12. [122A.183] TIER 3 LICENSE.

Subdivision 1. Requirements. The Professional Educator Licensing and Standards Board must issue a Tier 3 license to a candidate who provides information sufficient to demonstrate all of the following:

(1) the candidate has completed a bachelor's degree or obtained a professional credential that the school district finds sufficient to teach in a specified content area;

(2) the candidate has obtained a passing score on all required licensure exams under section 122A.185;

(3) the candidate has completed human relations coursework under section 122A.186; and

(4) the candidate has completed the coursework required under subdivision 2.

Subd. 2. Coursework. A candidate for a Tier 3 license must meet the coursework requirement by demonstrating completion of one of the following:

(1) a Minnesota-approved teacher preparation program;

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(2) a state-approved teacher preparation program that includes field-specific student teaching equivalent to field‑specific student teaching in Minnesota-approved teacher preparation programs. The field-specific student teaching requirement does not apply to a candidate that has two years of teaching experience; or

(3) a content-specific licensure portfolio.

Subd. 3. Term of license. The Professional Educator Licensing and Standards Board must issue an initial Tier 3 license for a term of three years. A Tier 3 license may be renewed every three years without limitation.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 13. [122A.184] TIER 4 LICENSE.

Subdivision 1. Requirements. The Professional Educator Licensing and Standards Board must issue a Tier 4 license to a candidate who provides information sufficient to demonstrate all of the following:

(1) the candidate meets all requirements for a Tier 3 license under section 122A.183;

(2) the candidate has at least three years of teaching experience in Minnesota; and

(3) the candidate has received at least one summative teacher evaluation, rated effective or higher, pursuant to section 122A.40, subdivision 8, or 122A.41, subdivision 5.

Subd. 2. Term of license. The Professional Educator Licensing and Standards Board must issue an initial Tier 4 license for a term of five years. A Tier 4 license may be renewed every five years without limitation.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 14. [122A.185] TEACHER LICENSURE ASSESSMENT.

Subdivision 1. Tests. (a) The Professional Educator Licensing and Standards Board must adopt rules requiring a candidate to demonstrate a passing score on a board-adopted examination of skills in reading, writing, and mathematics before being granted a Tier 3 or Tier 4 teaching license under sections 122A.183 and 122A.184, respectively, to provide direct instruction to pupils in elementary, secondary, or special education programs. Candidates may obtain a Tier 1 or Tier 2 license to provide direct instruction to pupils in elementary, secondary, or special education programs if candidates meet the other requirements in section 122A.181 or 122A.182, respectively.

(b) The board must adopt rules requiring candidates to pass an examination of general pedagogical knowledge and examinations of licensure-specific teaching skills.

(c) Candidates for initial licenses to teach elementary students must pass test items assessing the candidates' knowledge, skill, and ability in comprehensive, scientifically based reading instruction under section 122A.06, subdivision 4, knowledge and understanding of the foundations of reading development, development of reading comprehension and reading assessment and instruction, and the ability to integrate that knowledge and understanding into instruction strategies under section 122A.06, subdivision 4.

Subd. 2. Passing scores. The board must establish passing scores in all examinations required for licensure.

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Subd. 3. Testing accommodations. The board and the entity administering the content, pedagogy, and skills examinations must allow any individual who produces documentation of a disability in the form of an evaluation, 504 plan, or individual education program (IEP) to receive the same testing accommodations on the content, pedagogy, and skills examinations that the applicant received during the applicant's secondary or postsecondary education.

Subd. 4. Remedial assistance. (a) Colleges and universities offering a board-approved teacher preparation program and alternative teacher preparation programs must make available upon request remedial assistance that includes a formal diagnostic component to persons enrolled in their institution who did not achieve a qualifying score on a board-adopted skills examination, including those for whom English is a second language. The colleges and universities must make available assistance in the specific academic areas of candidates' deficiency.

(b) School districts may make available upon request similar, appropriate, and timely remedial assistance that includes a formal diagnostic component to those persons employed by the district who completed their teacher education program, who did not achieve a qualifying score on a board-adopted skills examination, and who received a Tier 1 or Tier 2 license under sections 122A.181 and 122A.182, respectively, to teach in Minnesota.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 15. [122A.186] HUMAN RELATIONS.

The Professional Educator Licensing and Standards Board must adopt rules that provide how a candidate may meet the human relations coursework requirement. The board shall accept training programs completed through Peace Corps, VISTA, or Teacher Corps in lieu of completing the human relations component of a teacher preparation program for purposes of issuing or renewing a teaching license.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 16. [122A.187] EXPIRATION AND RENEWAL.

Subdivision 1. License form requirements. Each license issued under this chapter must bear the date of issue and the name of the state-approved teacher training provider or alternative teaching program, as applicable. Licenses must expire and be renewed according to rules adopted by the Professional Educator Licensing and Standards Board or the Board of School Administrators. Requirements for renewing a Tier 3 or Tier 4 license under sections 122A.183 and 122A.184, respectively, must include showing satisfactory evidence of successful teaching or administrative experience for at least one school year during the period covered by the license in grades or subjects for which the license is valid or completing such additional preparation as required under this section, or as the Professional Educator Licensing and Standards Board prescribes. The Board of School Administrators shall establish requirements for renewing the licenses of supervisory personnel except athletic coaches. The Professional Educator Licensing and Standards Board shall establish requirements for renewing the licenses of athletic coaches.

Subd. 2. Professional growth. (a) Applicants for license renewal for a Tier 3 or Tier 4 license under sections 122A.183 and 122A.184, respectively, who have been employed as a teacher during the renewal period of the expiring license, as a condition of license renewal, must present to the Professional Educator Licensing and Standards Board evidence of work that demonstrates professional reflection and growth in best teaching practices, including among other things, practices in meeting the varied needs of English learners, from young children to adults under section 124D.59, subdivisions 2 and 2a. A teacher may satisfy the requirements of this paragraph by submitting the teacher's most recent summative evaluation or improvement plan under section 122A.40, subdivision 8, or 122A.41, subdivision 5.

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(b) The Professional Educator Licensing and Standards Board must ensure that its teacher relicensing requirements include paragraph (a).

Subd. 3. Behavior interventions. The Professional Educator Licensing and Standards Board must adopt rules that require all licensed teachers who are renewing a Tier 3 or Tier 4 teaching license under sections 122A.183 and 122A.184, respectively, to include in the renewal requirements further preparation in the areas of using positive behavior interventions and in accommodating, modifying, and adapting curricula, materials, and strategies to appropriately meet the needs of individual students and ensure adequate progress toward the state's graduation rule.

Subd. 4. Reading preparation. The Professional Educator Licensing and Standards Board must adopt rules that require all licensed teachers who are renewing a Tier 3 or Tier 4 teaching license under sections 122A.183 and 122A.184, respectively, to include in the renewal requirements further reading preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect until they are approved by law. Teachers who do not provide direct instruction including, at least, counselors, school psychologists, school nurses, school social workers, audiovisual directors and coordinators, and recreation personnel are exempt from this section.

Subd. 5. Mental illness. The Professional Educator Licensing and Standards Board must adopt rules that require all licensed teachers renewing a Tier 3 or Tier 4 teaching license under sections 122A.183 and 122A.184, respectively, to include in the renewal requirements at least one hour of suicide prevention best practices in each licensure renewal period based on nationally recognized evidence-based programs and practices, among the continuing education credits required to renew a license under this subdivision, and further preparation, first, in understanding the key warning signs of early-onset mental illness in children and adolescents and then, during subsequent licensure renewal periods, preparation may include providing a more in-depth understanding of students' mental illness trauma, accommodations for students' mental illness, parents' roles in addressing students' mental illness, Fetal Alcohol Spectrum Disorders, autism, the requirements of section 125A.0942 governing restrictive procedures, and de-escalation methods, among other similar topics.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 17. [122A.188] LICENSURE DENIAL; APPEAL.

Subdivision 1. Denial letter. (a) The Professional Educator Licensing and Standards Board must promptly inform all candidates whether the candidate's application for an initial teaching license or renewal of license has been approved or denied. When an application is denied, the notification letter must inform the candidate of the process for seeking review of the denial and of the appeals process provided in this section, including all deadlines for seeking review of the denial decision and filing an appeal. The notification letter must identify each licensure requirement the candidate failed to meet.

(b) For purposes of this section, the term "denial" means denial of an initial license or a denial of a renewal license. Denial of an initial license includes a grant of a license that is a lower tier than the candidate applied for and denial of application for an additional field of licensure.

Subd. 2. Review of denial. A candidate whose license application is denied may seek review of the denial by submitting a letter to the Professional Educator Licensing and Standards Board within 30 calendar days of receipt of the denial letter. The candidate may include any documentation necessary to demonstrate that the candidate meets the licensure requirements. The board must review the denial within 60 calendar days of receipt of the letter seeking review. If the board affirms the denial, the board must send the candidate a letter identifying each licensure requirement the candidate failed to meet and informing the candidate of the appeal process provided under this section.

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Subd. 3. Appeal. A candidate whose application for license or license renewal has been denied under subdivisions 1 and 2 may appeal the decision by filing a written request with the Professional Educator Licensing and Standards Board within 30 days of notice that the board has affirmed the denial of license. The board must then initiate a contested case under the Administrative Procedure Act, sections 14.001 to 14.69.

Sec. 18. Minnesota Statutes 2016, section 122A.19, is amended to read:

122A.19 BILINGUAL AND ENGLISH AS A SECOND LANGUAGE TEACHERS; LICENSES.

Subdivision 1. Bilingual and English as a second language licenses. The Professional Educator Licensing and Standards Board ~~of Teaching~~, hereinafter the board, must grant teaching licenses in bilingual education and English as a second language to persons who present satisfactory evidence that they:

~~(a)~~ (1) possess competence and communicative skills in English and in another language;

~~(b)~~ (2) possess a bachelor's degree or other academic degree approved by the board, and meet such requirements as to course of study and training as the board may prescribe, consistent with subdivision 4; and

(3) meet all other requirements for a teaching license provided in sections 122A.18 to 122A.184.

Subd. 2. Persons holding general teaching licenses. The board may license a person who holds a ~~general~~ teaching license in any tier under sections 122A.181 to 122A.184, respectively, and who presents the board with satisfactory evidence of competence and communicative skills in a language other than English under this section.

Subd. 4. Teacher preparation programs. For the purpose of licensing bilingual and English as a second language teachers, the board may approve programs at colleges or universities designed for their training. These programs must provide instruction in implementing research-based practices designed specifically for English learners. The programs must focus on developing English learners' academic language proficiency in English, including oral academic language, giving English learners meaningful access to the full school curriculum, developing culturally relevant teaching practices appropriate for immigrant students, and providing more intensive instruction and resources to English learners with lower levels of academic English proficiency and varied needs, consistent with section 124D.59, subdivisions 2 and 2a.

Subd. 5. Persons eligible for employment. Any person licensed under this section is eligible for employment by a school board as a teacher in a bilingual education or English as a second language program in which the language for which the person is licensed is taught or used as a medium of instruction. A board may prescribe only those additional qualifications for teachers licensed under this section that are approved by the board ~~of teaching~~.

Subd. 6. Affirmative efforts in hiring. In hiring for all bilingual education program positions, districts must give preference to and make affirmative efforts to seek, recruit, and employ persons who (1) are native speakers of the language which is the medium of instruction in the bilingual education program or share a native language with the majority of their students, and (2) share the culture of the English learners enrolled in the program. The district shall provide procedures for involving the parent advisory committees in designing the procedures for recruiting, screening, and selecting applicants. This section must not be construed to limit the school board's authority to hire and discharge personnel.

EFFECTIVE DATE. This section is effective July 1, 2018.

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Sec. 19. Minnesota Statutes 2016, section 122A.20, is amended to read:

122A.20 SUSPENSION OR REVOCATION OF LICENSES.

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

(1) immoral character or conduct;

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

(3) gross inefficiency or willful neglect of duty;

(4) failure to meet licensure requirements; or

(5) fraud or misrepresentation in obtaining a license.

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

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

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

(d) For purposes of this subdivision, the Professional Educator Licensing and Standards Board ~~of Teaching~~ is delegated the authority to suspend or revoke coaching licenses.

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Subd. 2. Mandatory reporting. (a) A school board must report to the Professional Educator Licensing and Standards Board ~~of Teaching~~, the Board of School Administrators, or the Board of Trustees of the Minnesota State Colleges and Universities, whichever has jurisdiction over the teacher's or administrator's license, when its teacher or administrator is discharged or resigns from employment after a charge is filed with the school board under section 122A.41, subdivisions 6, clauses (1), (2), and (3), and 7, or after charges are filed that are grounds for discharge under section 122A.40, subdivision 13, paragraph (a), clauses (1) to (5), or when a teacher or administrator is suspended or resigns while an investigation is pending under section 122A.40, subdivision 13, paragraph (a) clauses (1) to (5); 122A.41, subdivisions 6, clauses (1), (2), and (3), and 7; or 626.556, or when a teacher or administrator is suspended without an investigation under section 122A.41, subdivisions 6, paragraph (a), clauses (1), (2), and (3), and 7; or 626.556. The report must be made to the appropriate licensing board within ten days after the discharge, suspension, or resignation has occurred. The licensing board to which the report is made must investigate the report for violation of subdivision 1 and the reporting board must cooperate in the investigation. Notwithstanding any provision in chapter 13 or any law to the contrary, upon written request from the licensing board having jurisdiction over the license, a board or school superintendent shall provide the licensing board with information about the teacher or administrator from the district's files, any termination or disciplinary proceeding, any settlement or compromise, or any investigative file. Upon written request from the appropriate licensing board, a board or school superintendent may, at the discretion of the board or school superintendent, solicit the written consent of a student and the student's parent to provide the licensing board with information that may aid the licensing board in its investigation and license proceedings. The licensing board's request need not identify a student or parent by name. The consent of the student and the student's parent must meet the requirements of chapter 13 and Code of Federal Regulations, title 34, section 99.30. The licensing board may provide a consent form to the district. Any data transmitted to any board under this section is private data under section 13.02, subdivision 12, notwithstanding any other classification of the data when it was in the possession of any other agency.

(b) The licensing board to which a report is made must transmit to the Attorney General's Office any record or data it receives under this subdivision for the sole purpose of having the Attorney General's Office assist that board in its investigation. When the Attorney General's Office has informed an employee of the appropriate licensing board in writing that grounds exist to suspend or revoke a teacher's license to teach, that licensing board must consider suspending or revoking or decline to suspend or revoke the teacher's or administrator's license within 45 days of receiving a stipulation executed by the teacher or administrator under investigation or a recommendation from an administrative law judge that disciplinary action be taken.

(c) The Professional Educator Licensing and Standards Board and Board of School Administrators must report to the appropriate law enforcement authorities a revocation, suspension, or agreement involving a loss of license, relating to a teacher or administrator's inappropriate sexual conduct with a minor. For purposes of this section, "law enforcement authority" means a police department, county sheriff, or tribal police department.

Subd. 3. Immunity from liability. A school board, its members in their official capacity, and employees of the district run by the board are immune from civil or criminal liability for reporting or cooperating as required under subdivision 2, if their actions required under subdivision 2 are done in good faith and with due care.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 20. Minnesota Statutes 2016, section 122A.23, subdivision 3, is amended to read:

Subd. 3. Teacher licensure agreements with adjoining states. (a) Notwithstanding any other law to the contrary, the Professional Educator Licensing and Standards Board ~~of Teaching~~ must enter into a National Association of State Directors of Teacher Education and Certification (NASDTEC) interstate agreement and other interstate agreements for teacher licensure to allow fully certified teachers from adjoining states to transfer their certification to Minnesota. The board must enter into these interstate agreements only after determining that the rigor of the teacher licensure or certification requirements in the adjoining state is commensurate with the rigor of

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Minnesota's teacher licensure requirements. The board may limit an interstate agreement to particular content fields or grade levels based on established priorities or identified shortages. This subdivision does not apply to out-of-state applicants holding only a provisional teaching license.

(b) The Professional Educator Licensing and Standards Board ~~of Teaching~~ must work with designated authorities in adjoining states to establish interstate teacher licensure agreements under this section.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 21. Minnesota Statutes 2016, section 122A.245, subdivision 1, is amended to read:

Subdivision 1. Requirements. (a) To improve academic excellence, improve ethnic and cultural diversity in the classroom, and close the academic achievement gap, the ~~Board of Teaching~~ Professional Educator Licensing and Standards Board must approve qualified teacher preparation programs under this section that are a means to acquire a ~~two-year preliminary~~ teacher license~~, which the board may renew one time for an additional one-year term, and to prepare for acquiring a professional five-year license~~. The following entities are eligible to participate and seek approval under this section:

(1) a school district,;

(2) charter school,; or

(3) nonprofit corporation organized under chapter 317A for an education-related purpose ~~that forms a partnership with a college or university that has a board-approved alternative teacher preparation program; or~~.

(2) a school district or charter school, after consulting with a college or university with a board-approved teacher preparation program, that forms a partnership with a nonprofit corporation organized under chapter 317A for an education-related purpose that has a board-approved teacher preparation program.

~~(b) Before becoming a teacher of record, a candidate must:~~

~~(1) have a bachelor's degree with a 3.0 or higher grade point average unless the board waives the grade point average requirement based on board-adopted criteria adopted by January 1, 2016;~~

~~(2) demonstrate a passing score on a board-adopted reading, writing, and mathematics skills examination under section 122A.09, subdivision 4, paragraph (b); and~~

~~(3) obtain qualifying scores on applicable board-approved rigorous content area and pedagogy examinations under section 122A.09, subdivision 4, paragraph (e).~~

~~(c)~~ (b) The ~~Board of Teaching~~ Professional Educator Licensing and Standards Board must issue a ~~two-year preliminary~~ Tier 2 teacher license to a person who enrolls in an alternative teacher preparation program.

Sec. 22. Minnesota Statutes 2016, section 122A.245, subdivision 2, is amended to read:

Subd. 2. ~~Characteristics~~ Approval criteria. An The Professional Educator Licensing and Standards Board must approve alternative teacher preparation ~~program under this section must include~~ programs that meet the following criteria:

(1) a minimum 200-hour instructional phase that provides intensive preparation and ~~student teaching~~ observed classroom experience before the teacher candidate assumes classroom responsibilities;

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(2) a research-based and results-oriented approach focused on best teaching practices to increase student proficiency and growth measured against state academic standards;

(3) strategies to combine pedagogy and best teaching practices to better inform teacher candidates' classroom instruction;

(4) assessment, supervision, and evaluation of teacher candidates to determine their specific needs throughout the program and to support their efforts to successfully complete the program;

(5) intensive, ongoing, and multiyear professional learning opportunities that accelerate teacher candidates' professional growth, support student learning, and provide a workplace orientation, professional staff development, and mentoring and peer review focused on standards of professional practice and continuous professional growth; and

(6) a requirement that teacher candidates demonstrate to the local site team under subdivision 5 satisfactory progress toward acquiring ~~professional five-year~~ Tier 3 teaching licenses from the ~~Board of Teaching~~ Professional Educator Licensing and Standards Board.

Sec. 23. Minnesota Statutes 2016, section 122A.245, subdivision 3, is amended to read:

Subd. 3. Program approval; disapproval. (a) The Board of Teaching must approve alternative teacher preparation programs under this section based on board-adopted criteria that reflect best practices for alternative teacher preparation programs, consistent with this section.

~~(b)~~ The board must permit teacher candidates to demonstrate mastery of pedagogy and content standards in school-based settings and through other nontraditional means. "Nontraditional means" must include a portfolio of previous experiences, teaching experience, educator evaluations, certifications marking the completion of education training programs, and essentially equivalent demonstrations.

~~(c)~~ (b) The board must use nontraditional criteria to determine the qualifications of program instructors.

~~(d)~~ (c) The board may permit instructors to hold a baccalaureate degree only.

~~(e)~~ (d) If the ~~Board of Teaching~~ Professional Educator Licensing and Standards Board determines that a teacher preparation program under this section does not meet the requirements of this section, it may revoke its approval of the program after it notifies the program provider of any deficiencies and gives the program provider an opportunity to remedy the deficiencies.

Sec. 24. Minnesota Statutes 2016, section 122A.245, subdivision 5, is amended to read:

Subd. 5. ~~Approval~~ Application for ~~professional five-year~~ Tier 3 license. A school board or its designee must appoint members to a local site team that includes teachers, school administrators, and postsecondary faculty under subdivision 1, paragraph (a), clause (1), or staff of a participating nonprofit corporation under subdivision 1, paragraph (a), clause (2), to evaluate the performance of the teacher candidate. The evaluation must be consistent with board-adopted performance measures, use the Minnesota state standards of effective practice and subject matter content standards for teachers established in Minnesota Rules, and include a report to the board recommending whether or not to issue the teacher candidate a professional five-year teaching license. A teacher candidate that has completed an alternative teacher preparation program may apply for a Tier 3 teaching license under section 122A.183.

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Sec. 25. Minnesota Statutes 2016, section 122A.245, subdivision 6, is amended to read:

Subd. 6. Applicants trained in other states. A person who successfully completes another state's alternative teacher preparation program~~, consistent with section 122A.23,~~ may apply to the Professional Educator Licensing and Standards Board ~~of Teaching~~ for ~~an initial professional one-year teaching license or a professional five-year~~ a Tier 2 or Tier 3 teaching license under section 122A.182 or 122A.183, respectively.

Sec. 26. Minnesota Statutes 2016, section 122A.245, subdivision 9, is amended to read:

Subd. 9. Exchange of best practices. By July 31 in an even-numbered year, approved alternative preparation program providers, ~~the Minnesota State Colleges and Universities, the University of Minnesota, the Minnesota Private College Council,~~ the Professional Educator Licensing and Standards Board, and the Department of Education must exchange information about best practices and educational innovations.

Sec. 27. Minnesota Statutes 2016, section 122A.245, subdivision 10, is amended to read:

Subd. 10. Reports. The ~~Board of Teaching~~ Professional Educator Licensing and Standards Board must submit ~~an interim~~ a biennial report on ~~the efficacy of~~ this program to the policy and finance committees of the legislature with jurisdiction over kindergarten through grade 12 education by ~~February~~ January 15~~, 2013, and a final report by February 15, 2015~~ of each odd-numbered year.

Sec. 28. Minnesota Statutes 2016, section 122A.26, subdivision 2, is amended to read:

Subd. 2. Exceptions. A person who teaches in a community education program which qualifies for aid pursuant to section 124D.52 shall continue to meet licensure requirements as a teacher. A person who teaches in an early childhood and family education program which is offered through a community education program and which qualifies for community education aid pursuant to section 124D.20 or early childhood and family education aid pursuant to section 124D.135 shall continue to meet licensure requirements as a teacher. A person who teaches in a community education course which is offered for credit for graduation to persons under 18 years of age shall continue to meet licensure requirements as a teacher. A person who teaches a driver training course which is offered through a community education program to persons under 18 years of age shall be licensed by the Professional Educator Licensing and Standards Board ~~of Teaching~~ or be subject to section 171.35. A license which is required for an instructor in a community education program pursuant to this subdivision shall not be construed to bring an individual within the definition of a teacher for purposes of section 122A.40, subdivision 1, or 122A.41, subdivision 1, clause (a).

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 29. Minnesota Statutes 2016, section 122A.28, is amended to read:

122A.28 TEACHERS OF DEAF AND HARD-OF-HEARING STUDENTS; LICENSURE REQUIREMENTS.

Subdivision 1. K-12 license to teach deaf and hard-of-hearing students; relicensure. (a) The Professional Educator Licensing and Standards Board ~~of Teaching~~ must review and determine appropriate licensure requirements for a candidate for a license or an applicant for a continuing license to teach deaf and hard-of-hearing students in prekindergarten through grade 12. In addition to other requirements, a candidate must demonstrate the minimum level of proficiency in American sign language as determined by the board.

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(b) Among other relicensure requirements, each teacher under this section must complete 30 continuing education clock hours on hearing loss topics, including American Sign Language, American Sign Language linguistics, or deaf culture, in each licensure renewal period.

Subd. 2. Licensure for teaching oral/aural deaf education programs. (a) The Professional Educator Licensing and Standards Board ~~of Teaching~~ shall adopt a separate licensure rule for a candidate for a license or an applicant for a continuing license to teach in oral/aural deaf education programs or to provide services, including itinerant oral/aural deaf education services, to deaf and hard-of-hearing students in prekindergarten through grade 12.

(b) The board shall design rule requirements for teaching oral/aural deaf education in collaboration with representatives of parents and educators of deaf and hard-of-hearing students, postsecondary programs preparing teachers of deaf and hard-of-hearing students, and the Department of Education.

(c) Rule requirements for teaching oral/aural deaf education shall reflect best practice research in oral/aural deaf education. Advanced competencies in teaching deaf and hard-of-hearing students through oral/aural modes shall be included.

(d) Licensure requirements for teachers of oral/aural deaf education must include minimum competency in American sign language, but are not subject to the guidelines established in Laws 1993, chapter 224, article 3, section 32, as amended by Laws 1998, chapter 398, article 2, section 47. The signed communication proficiency interview shall not be required for teachers licensed to teach deaf and hard-of-hearing students through oral/aural deaf education methods.

(e) Requirements for teachers or oral/aural deaf education shall include appropriate continuing education requirements for renewing this licensure.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 30. Minnesota Statutes 2016, section 122A.29, is amended to read:

122A.29 TEACHERS OF BLIND AND VISUALLY IMPAIRED STUDENTS; LICENSURE REQUIREMENTS.

Teachers licensed in the education of blind and visually impaired students must demonstrate competence in reading and writing Braille. The Professional Educator Licensing and Standards Board ~~of Teaching~~, at such time as a valid and reliable test is available, shall adopt a rule to assess these competencies that is consistent with the standards of the National Library Services for the Blind and Physically Handicapped.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 31. Minnesota Statutes 2016, section 122A.30, is amended to read:

122A.30 EXEMPTION FOR TECHNICAL EDUCATION INSTRUCTORS.

(a) Notwithstanding section 122A.15, subdivision 1, and upon approval of the local employer school board, a person who teaches in a part-time vocational or career and technical education program is exempt from a license requirement. Nothing in this section shall exclude licensed career and technical educators from the definition of "teacher" in section 122A.40, 122A.41, or 179A.03.

(b) This section expires June 30, 2020. After this section expires, persons who teach in a part-time vocational or career and technical education program may apply for a teaching license provided in sections 122A.18 to 122A.184.

EFFECTIVE DATE. This section is effective July 1, 2018.

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Sec. 32. Minnesota Statutes 2016, section 124D.13, subdivision 11, is amended to read:

Subd. 11. Teachers. A school board must employ necessary licensed teachers for its early childhood family education programs. ~~The Board of Teaching, at its discretion, may grant an applicant a variance under this subdivision, consistent with sections 122A.09, subdivision 10, and 122A.25, and Board of Teaching rules.~~

Sec. 33. Minnesota Statutes 2016, section 124D.454, subdivision 12, is amended to read:

Subd. 12. Compliance with rules. Aid must be paid under this section only for services rendered or for costs incurred in career and technical education programs approved by the commissioner and operated in accordance with rules promulgated by the commissioner. This aid shall be paid only for services rendered and for costs incurred by essential, licensed personnel who meet the requirements for licensure pursuant to the rules of the ~~Minnesota~~ Professional Educator Licensing and Standards Board ~~of Teaching~~. Licensed personnel means persons holding a valid career and technical license issued by the ~~commissioner~~ Professional Educator Licensing and Standards Board under section 122A.30. If an average of five or fewer secondary full-time equivalent students are enrolled per teacher in an approved postsecondary program at Intermediate District No. 287, 916, or 917, licensed personnel means persons holding a valid vocational license issued by the commissioner or the Board of Trustees of the Minnesota State Colleges and Universities. Notwithstanding section 127A.42, the commissioner may modify or withdraw the program or aid approval and withhold aid under this section without proceeding under section 127A.42 at any time. To do so, the commissioner must determine that the program does not comply with rules of the Department of Education or that any facts concerning the program or its budget differ from the facts in the district's approved application.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 34. Minnesota Statutes 2016, section 124D.75, subdivision 1, is amended to read:

Subdivision 1. American Indian language and culture education licenses. The Professional Educator Licensing and Standards Board ~~of Teaching~~, in consultation with the Tribal Nations Education Committee, must grant initial and continuing teaching licenses in American Indian language and culture education that bear the same duration as other initial and continuing licenses. The board must grant licenses to persons who present satisfactory evidence that they:

(1) possess competence in an American Indian language or possess unique qualifications relative to or knowledge and understanding of American Indian history and culture; or

(2) possess a bachelor's degree or other academic degree approved by the board or meet such requirements as to course of study and training as the board may prescribe, or possess such relevant experience as the board may prescribe.

This evidence may be presented by affidavits, tribal resolutions, or by such other methods as the board may prescribe. Individuals may present applications for licensure on their own behalf or these applications may be submitted by the superintendent or other authorized official of a school district, participating school, or an American Indian school.

EFFECTIVE DATE. This section is effective September 1, 2017.

Sec. 35. Minnesota Statutes 2016, section 124D.75, subdivision 6, is amended to read:

Subd. 6. Persons eligible for employment; exemptions. Any person licensed under this section shall be eligible for employment by a school board or a participating school as a teacher in an American Indian education program in which the American Indian language or culture in which the person is licensed is taught. A school

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district or participating school may prescribe only those additional qualifications for teachers licensed under this section as are approved by the Professional Educator Licensing and Standards Board ~~of Teaching~~. Any school board or participating school upon request may be exempted from the licensure requirements of this section in the hiring of one or more American Indian language and culture education teachers for any school year in which compliance would, in the opinion of the ~~commissioner~~ Professional Educator Licensing and Standards Board, create a hardship in the securing of the teachers.

EFFECTIVE DATE. This section is effective September 1, 2017.

Sec. 36. Minnesota Statutes 2016, section 125A.67, subdivision 2, is amended to read:

Subd. 2. Teacher standards. A teacher ~~or administrator at the academies~~ is subject to the licensure standards of the Professional Educator Licensure and Standards Board ~~of Teaching or the commissioner of education~~. An administrator at the academies is subject to the licensure standards of the Board of School Administrators.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 37. Minnesota Statutes 2016, section 136A.1791, subdivision 1, is amended to read:

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

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

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

(d) "Teacher" means an individual holding a teaching license issued by the ~~licensing division in the Department of Education on behalf of the Board of Teaching~~ Professional Educator Licensure and Standards Board who is employed by a school district to provide classroom instruction in a teacher shortage area.

(e) "Teacher shortage area" means the licensure fields and economic development regions reported by the commissioner of education as experiencing a teacher shortage.

(f) "Commissioner" means the commissioner of the Office of Higher Education unless indicated otherwise.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 38. LICENSES UNDER JURISDICTION OF THE BOARD OF TEACHING.

Subdivision 1. One-year license. A one-year license issued by the commissioner of education before the effective date of this section must be treated as a Tier 1 license established under Minnesota Statutes, sections 122A.18 and 122A.181.

Subd. 2. Two-year license. A two-year license issued by the commissioner of education before the effective date of this section must be treated as a Tier 2 license established under Minnesota Statutes, sections 122A.18 and 122A.182.

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Subd. 3. Three-year license. A three-year license issued by the commissioner of education before the effective date of this section must be treated as a Tier 3 license established under Minnesota Statutes, sections 122A.18 and 122A.183.

Subd. 4. Five-year license. A five-year license issued by the commissioner of education before the effective date of this section must be treated as a Tier 4 license established under Minnesota Statutes, sections 122A.18 and 122A.184.

EFFECTIVE DATE. This section is effective July 1, 2018.

Sec. 39. REPEALER.

Minnesota Statutes 2016, sections 122A.14, subdivision 5; 122A.162; 122A.163; 122A.18, subdivisions 2a, 3, 3a, 4, 4a, 6, 7, and 7b; 122A.21, subdivision 2; 122A.23, subdivisions 1 and 2; 122A.245, subdivisions 7 and 8; and 122A.25, are repealed.

ARTICLE 3

NONTEACHER CREDENTIALING

Section 1. Minnesota Statutes 2016, section 120B.363, subdivision 1, is amended to read:

Subdivision 1. Rulemaking. The Professional Educator Licensing and Standards Board ~~of Teaching~~ must adopt rules to implement a statewide credential for education paraprofessionals who assist a licensed teacher in providing student instruction. Any paraprofessional holding this credential or working in a local school district after meeting a state-approved local assessment is considered to be highly qualified under federal law. Under this subdivision, the Professional Educator Licensing and Standards Board ~~of Teaching~~, in consultation with the commissioner, must adopt qualitative criteria for approving local assessments that include an evaluation of a paraprofessional's knowledge of reading, writing, and math and the paraprofessional's ability to assist in the instruction of reading, writing, and math. The commissioner must approve or disapprove local assessments using these criteria. The commissioner must make the criteria available to the public.

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

Delete the title and insert:

"A bill for an act relating to education; restructuring Minnesota's teacher licensing system; establishing the Professional Educator Licensing and Standards Board; transferring all teacher licensing and support personnel licensing and credentialing authority to the Professional Educator Licensing and Standards Board; providing for rulemaking; requiring a report; appropriating money; amending Minnesota Statutes 2016, sections 120B.363, subdivision 1; 122A.06; 122A.07; 122A.08; 122A.09, subdivisions 1, 2, 3, 4, 4a, 6, 7, 9, 10; 122A.17; 122A.18, subdivisions 1, 2, 2b, 7a, 7c, 8, by adding subdivisions; 122A.19; 122A.20; 122A.22; 122A.23, subdivision 3; 122A.245, subdivisions 1, 2, 3, 5, 6, 9, 10; 122A.26, subdivision 2; 122A.28; 122A.29; 122A.30; 124D.13, subdivision 11; 124D.454, subdivision 12; 124D.75, subdivisions 1, 6; 125A.67, subdivision 2; 127A.05, subdivision 6; 136A.1791, subdivision 1; 214.04, subdivisions 1, 3; 214.045; proposing coding for new law in Minnesota Statutes, chapter 122A; repealing Minnesota Statutes 2016, sections 122A.09, subdivisions 5, 8, 11; 122A.14, subdivision 5; 122A.162; 122A.163; 122A.18, subdivisions 2a, 3, 3a, 4, 4a, 6, 7, 7b; 122A.21, subdivision 2; 122A.23, subdivisions 1, 2; 122A.245, subdivisions 7, 8; 122A.25."

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

The report was adopted.

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 668

Torkelson from the Committee on Transportation Finance to which was referred:

H. F. No. 231, A bill for an act relating to transportation; appropriating money for the corridors of commerce program.

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

The report was adopted.

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

H. F. No. 262, A bill for an act relating to human services; extending the Alzheimer's disease working group; proposing coding for new law in Minnesota Statutes, chapter 256.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [256.999] ALZHEIMER'S DISEASE WORKING GROUP.

Subdivision 1. Establishment; members. (a) The Minnesota Board on Aging must appoint an Alzheimer's disease working group that consists of no more than 20 members including, but not limited to:

(1) a caregiver of a person who has been diagnosed with Alzheimer's disease;

(2) a person who has been diagnosed with Alzheimer's disease;

(3) two representatives from the nursing facility or senior housing profession;

(4) a representative of the home care or adult day services profession;

(5) two representatives of the medical care provider community, one of whom serves a diverse or underserved community;

(6) a psychologist who specializes in dementia care;

(7) an Alzheimer's researcher;

(8) a representative of the Alzheimer's Association;

(9) two members from community-based organizations serving one or more diverse or underserved communities;

(10) the commissioner of human services or a designee;

(11) the commissioner of health or a designee;

(12) the ombudsman for long-term care or a designee; and

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(13) at least two public members named by the governor.

(b) The appointing authorities under this subdivision must complete their appointments no later than July 15, 2017.

(c) The membership of the working group must reflect the diversity in Minnesota, and must include representatives from rural and metropolitan areas and representatives of different ethnicities, races, genders, ages, cultural groups, and abilities.

Subd. 2. Duties; recommendations. The Alzheimer's disease working group must review and revise the 2011 report, Preparing Minnesota for Alzheimer's: the Budgetary, Social and Personal Impacts, which examined the array of needs of individuals diagnosed with Alzheimer's disease, services available to meet these needs, and the capacity of the state and current providers to meet these and future needs. The working group shall consider and make recommendations and findings on the following issues:

(1) cultural competency and responsiveness to reduce health disparities and improve access to high-quality dementia care;

(2) trends and disparities in the state's Alzheimer's population;

(3) public awareness, knowledge, and attitudes, including knowledge gaps, stigma, availability of information, and supportive community environments;

(4) risk reduction, including health education and health promotion on risk factors, safety, and potentially avoidable hospitalizations;

(5) diagnosis and treatment, including early detection, access to diagnosis, quality of dementia care, and cost of treatment;

(6) professional education and training, including geriatric education for physicians and nurses, and dementia‑specific training for direct care workers, first responders, and other professionals in communities;

(7) caregivers, including contributions, supports, family caregiver education, and unmet needs;

(8) home and community-based care versus residential care, including research efforts;

(9) home and community-based services, including cost to families, access to affordable, quality services, service planning and delivery, and workforce development;

(10) residential services, including cost to families as well as regulation and licensing gaps;

(11) financing long-term care, including Medicare, Medicaid, and long-term care insurance; and

(12) research and data collection, including public health surveillance.

Subd. 3. Meetings. (a) The board must select a designee to convene the first meeting of the working group no later than July 15, 2017. Meetings of the working group must be open to the public, and to the extent practicable, technological means, such as Web casts, shall be used to reach the greatest number of people throughout the state. The members of the working group shall select a chair from their membership at the first meeting.

(b) The working group shall meet at least once every four years.

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Subd. 4. Report. The Board on Aging must submit a report providing the findings and recommendations of the working group, including any draft legislation necessary to implement the recommendations, to the governor and chairs and ranking minority members of the legislative committees with jurisdiction over health care no later than January 15, 2018, and must provide an updated report every four years thereafter."

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

The report was adopted.

Torkelson from the Committee on Transportation Finance to which was referred:

H. F. No. 326, A bill for an act relating to transportation; designating a segment of marked Trunk Highway 23 in the city and town of Paynesville as Medal of Honor recipient Kenneth L. Olson Highway; amending Minnesota Statutes 2016, section 161.14, by adding a subdivision.

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

The report was adopted.

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

H. F. No. 345, A bill for an act relating to health; creating the Palliative Care Advisory Committee; proposing coding for new law in Minnesota Statutes, chapter 144.

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

The report was adopted.

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

H. F. No. 390, A bill for an act relating to public safety; increasing penalties for obstructing traffic access to a trunk highway or airport; amending the crime of obstructing transit; amending Minnesota Statutes 2016, sections 160.2715; 609.855, subdivision 2.

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

The report was adopted.

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

H. F. No. 397, A bill for an act relating to health; creating an exemption from the practice of dentistry for certain dental students; amending Minnesota Statutes 2016, section 150A.05, subdivision 2.

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

The report was adopted.

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 671

Torkelson from the Committee on Transportation Finance to which was referred:

H. F. No. 460, A bill for an act relating to taxation; sales and use; motor vehicles' dedicating the rental motor vehicles tax to the corridors of commerce program; amending Minnesota Statutes 2016, section 297A.94.

Reported the same back with the following amendments:

Page 3, delete line 4

Page 3, line 5, delete "transportation the" and insert "(g) The"

Page 3, line 6, delete "for use in funding" and insert "are annually appropriated from the general fund to the commissioner of transportation for"

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

The report was adopted.

Torkelson from the Committee on Transportation Finance to which was referred:

H. F. No. 479, A bill for an act relating to taxation; motor vehicle sales; expanding an exemption for certain motor vehicle purchases by local governments; making technical changes; amending Minnesota Statutes 2016, section 297B.03.

Reported the same back with the following amendments:

Page 2, line 16, before the period, insert "is exempt"

Page 2, line 18, delete "is exempt"

Page 3, line 8, delete "the special district's" and delete "are"

Page 3, line 23, delete "is exempt"

Page 3, line 28, before the period, insert "is exempt"

Page 3, line 30, delete "is exempt"

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

The report was adopted.

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

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

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

The report was adopted.

Torkelson from the Committee on Transportation Finance to which was referred:

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.

Reported the same back with the following amendments:

Page 2, lines 30, 32, and 34, after "tires" insert "and motor vehicle repair and replacement parts"

Amend the title as follows:

Page 1, line 3, after "tires" insert "and motor vehicle repair and replacement parts"

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

The report was adopted.

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

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.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2016, section 13.411, is amended by adding a subdivision to read:

Subd. 10. Real estate appraisers. Data relating to disciplinary actions involving real estate appraisers are classified under section 82B.20, subdivision 4.

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Sec. 2. [82B.072] FORMAL COMPLAINTS.

For the purposes of this chapter, an inquiry alleging noncompliance with this chapter that does not result in a disciplinary action, including any informal disposition of a case or an action pursuant to this chapter or section 45.027, does not constitute a formal complaint under this chapter or section 45.027.

Sec. 3. Minnesota Statutes 2016, section 82B.08, subdivision 2a, is amended to read:

Subd. 2a. Criminal history record check; fingerprints. (a) An applicant for a an initial license must:

(1) consent to a criminal history record check;

(2) submit a fingerprint card in a form acceptable to the commissioner; and

(3) pay the fee required to perform criminal history record checks with the Minnesota Bureau of Criminal Apprehension and the Federal Bureau of Investigation.

(b) The commissioner may contract for the collection and transmission of fingerprints required under this chapter and may order the fee for collecting and transmitting fingerprints to be payable directly to the contractor by the applicant. The commissioner may agree to a reasonable fingerprinting fee to be charged by the contractor.

(c) The commissioner shall submit the applicant's fingerprints, consent, and the required fee to the superintendent of the Bureau of Criminal Apprehension. The superintendent shall perform a check of the state criminal history repository and is authorized to exchange the applicant's fingerprints with the Federal Bureau of Investigation to obtain the national criminal history record. The superintendent shall return the results of the state and national criminal history records checks to the commissioner.

(d) ~~This subdivision applies to~~ An applicant for ~~an initial license or~~ a renewal of a license must disclose, in a form acceptable to the commissioner, any crimes involving moral turpitude or that are substantially related to the qualifications, functions, or duties of the profession of real estate appraiser that the applicant has been convicted of or pled guilty or nolo contendere to, as provided in this paragraph. An applicant renewing a license is only required to disclose events that occurred since the license was issued if this is the applicant's first license renewal or, since the license was renewed, if this is a subsequent renewal.

Sec. 4. Minnesota Statutes 2016, section 82B.20, is amended by adding a subdivision to read:

Subd. 4. Time limitations. (a) If more than five years have passed from the date on which a licensed real estate appraiser completes a disciplinary action under subdivision 1, then notwithstanding section 13.41, all investigative data concerning the disciplinary action is private data, as defined in section 13.02, subdivision 12.

(b) Paragraph (a) does not apply to disciplinary actions:

(1) that resulted in the denial, suspension, revocation, or surrender in lieu of revocation of a license;

(2) due to a violation of section 82B.20, subdivision 2, clause (4); or

(3) due to a violation of section 82B.03, subdivision 1.

(c) Nothing in paragraph (a) or (b) shall be construed to prevent the commissioner from fulfilling any requirements pursuant to title XI of the federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989, including any amendments and regulations, or the sharing of any public data under section 13.41 regarding a disciplinary action with any state appraiser certifying and licensing agency.

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Sec. 5. Minnesota Statutes 2016, section 82B.24, is amended by adding a subdivision to read:

Subd. 4. Time limitations. (a) A private right of action must be commenced the earlier of:

(1) six years from the date the appraisal services giving rise to the cause of action were performed or should have been performed;

(2) six years from the date the appraisal giving rise to the cause of action was completed or should have been completed; or

(3) the expiration of any other applicable statute of limitations.

(b) Paragraph (a), clauses (1) and (2), do not apply when the person alleges that an injury occurred due to:

(1) knowing and intentional fraud; or

(2) knowing and intentional misrepresentation during the performance of an appraisal.

Sec. 6. EFFECTIVE DATE.

Sections 1 to 5 are effective August 1, 2017, and apply to appraisals performed on or after that date."

Correct the title numbers accordingly

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

The report was adopted.

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

H. F. No. 608, A bill for an act relating to agriculture; providing an income tax credit for sales or rentals of agricultural assets to beginning farmers; providing an income tax credit for beginning farmer financial management programs; establishing duties for the Rural Finance Authority; amending Minnesota Statutes 2016, section 290.06, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 41B.

Reported the same back with the following amendments:

Page 2, delete lines 19 to 28 and insert:

"(f) "Owner of agricultural assets" means an individual, trust, or pass-through entity that is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner of agricultural assets does not mean an equipment dealer or comparable entity engaged in the business of selling agricultural assets for profit."

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

The report was adopted.

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

H. F. No. 629, A bill for an act relating to human services; modifying certain claims against estates provisions under medical assistance; amending Minnesota Statutes 2016, section 256B.15, subdivisions 1, 1a, 2.

Reported the same back with the following amendments:

Page 3, after line 2, insert:

"EFFECTIVE DATE. This section is effective the day following final enactment and applies retroactively to estate claims pending on or after July 1, 2016, and to the estates of people who died on or after July 1, 2016."

Page 4, line 22, strike "on or after January 1, 2014,"

Page 5, after line 4, insert:

Page 5, line 18, delete "this" and after "chapter" insert "256D"

Page 5, line 22, before the period, insert ", even for periods when alternative care services receive only state funding"

Page 6, after line 5, insert:

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

The report was adopted.

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

H. F. No. 630, A bill for an act relating to local government; providing aid for out-of-home placement costs of children under the Indian Child Welfare Act; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 477A.

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

The report was adopted.

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

H. F. No. 636, A bill for an act relating to taxation; property; allowing land classified as agricultural homestead and farmed by a beginning farmer to continue to qualify for homestead classification; 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.

Torkelson from the Committee on Transportation Finance to which was referred:

H. F. No. 638, A bill for an act relating to taxation; sales and use tax; allocating the estimated revenue from the sale of motor vehicle parts to the highway user tax distribution fund; amending Minnesota Statutes 2016, section 297A.94.

Reported the same back with the following amendments:

Page 2, line 12, delete "2017" and insert "2018"

Page 2, line 13, delete "$150,000,000" and insert "$300,000,000"

Page 2, line 14, delete "2016" and insert "2017"

Page 3, line 25, delete "2017" and insert "2018"

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

The report was adopted.

Dean, M., from the Committee on Health and Human Services Finance to which was referred:

H. F. No. 696, A bill for an act relating to human services; modifying certain adult foster care licensing provisions; adding individualized home supports to home and community-based services; modifying home and community-based services setting requirements and licensing requirements; modifying planning and case management requirements under certain home and community-based services waivers; modifying child foster care background studies; amending Minnesota Statutes 2016, sections 245A.11, subdivision 2a; 245C.03, subdivision 1; 245C.04, subdivision 1; 245C.05, subdivision 2a; 245C.10, subdivision 9; 245C.17, subdivisions 5, 6; 245C.21, subdivision 1a; 245C.23, subdivision 2; 245D.02, subdivision 36, by adding a subdivision; 245D.03, subdivision 1; 245D.04, subdivision 3; 245D.071, subdivision 3; 245D.09, subdivisions 4, 5a; 245D.11, subdivision 4; 245D.24, subdivision 3; 256B.0911, subdivision 3a; 256B.092, subdivision 1a; 256B.49, subdivision 13; 256B.4913, by adding a subdivision; 256B.4914, subdivisions 3, 5, 8, 16.

Reported the same back with the following amendments:

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Page 15, line 21, reinstate the stricken language and delete the new language

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

The report was adopted.

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

H. F. No. 711, A bill for an act relating to human services; providing a reimbursement option for federally qualified health centers and rural health clinics for dual eligibles; appropriating money for subsidies to federally qualified health centers; amending Minnesota Statutes 2016, section 256B.0625, subdivision 57.

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

The report was adopted.

Runbeck from the Committee on Transportation and Regional Governance Policy to which was referred:

H. F. No. 745, A bill for an act relating to transportation; designating the bridge over U.S. Highway 52 in the city of Coates as Corporal Benjamin S. Kopp Bridge; amending Minnesota Statutes 2016, section 161.14, by adding a subdivision.

Reported the same back with the following amendments:

Page 1, line 8, after "on" insert "Dakota"

Page 1, line 9, before "U.S." insert "marked"

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

The report was adopted.

Torkelson from the Committee on Transportation Finance to which was referred:

H. F. No. 901, A bill for an act relating to taxation; modifying allocation of motor vehicle lease sales tax revenue; amending Minnesota Statutes 2016, section 297A.815, subdivision 3.

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

The report was adopted.

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 678

Loon from the Committee on Education Finance to which was referred:

H. F. No. 947, A bill for an act relating to education finance; clarifying the calculation of general education aid; amending Minnesota Statutes 2016, section 126C.13, subdivision 4.

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

The report was adopted.

Torkelson from the Committee on Transportation Finance to which was referred:

H. F. No. 963, A bill for an act relating to taxation; sales and use; providing an exemption for purchases made by the Department of Transportation for road construction projects; amending Minnesota Statutes 2016, section 297A.71, by adding a subdivision.

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

The report was adopted.

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

H. F. No. 984, A bill for an act relating to commerce; weights and measures; requiring signage disclosing gasoline tax rate; proposing coding for new law in Minnesota Statutes, chapter 239.

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

The report was adopted.

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

H. F. No. 1043, A bill for an act relating to human services; appropriating money for the Commission on Deaf, DeafBlind, and Hard-of-Hearing Minnesotans.

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

The report was adopted.

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

H. F. No. 1066, A bill for an act relating to public safety; increasing penalties for obstructing a highway under certain circumstances; amending Minnesota Statutes 2016, section 609.74.

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

The report was adopted.

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 679

Runbeck from the Committee on Transportation and Regional Governance Policy to which was referred:

H. F. No. 1117, A bill for an act relating to local government; designating certain areas of the city of Oak Grove as rural residential for the purposes of the comprehensive plan update.

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

The report was adopted.

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

H. F. No. 1135, A bill for an act relating to health; requiring that additional information be provided with dispensed prescriptions; proposing coding for new law in Minnesota Statutes, chapter 263.

Reported the same back with the following amendments:

Page 1, line 5, delete "263.48" and insert "152.121"

Page 1, line 8, delete "plan" and insert "plain"

Correct the title numbers accordingly

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

The report was adopted.

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

H. F. No. 1137, A bill for an act relating to health; requiring certain uses of the Minnesota prescription monitoring program; amending Minnesota Statutes 2016, sections 152.126, subdivision 9, by adding a subdivision; 256B.0638, subdivision 5.

Reported the same back with the following amendments:

Page 1, delete section 1 and insert:

"Section 1. Minnesota Statutes 2016, section 152.126, is amended by adding a subdivision to read:

Subd. 6a. Use of prescription monitoring program. Before initially prescribing or dispensing an opioid to a patient, a prescriber or dispenser must query the prescription electronic reporting system in order to review any controlled substance prescription data reported to the system about that patient. The prescriber or dispenser must also perform periodic queries of the system if treatment with opioids continues for more than 30 days. A query must be done the first time that an opioid is prescribed or dispensed after the end of the initial 30-day period, and at least every 90 days thereafter. The initial and subsequent queries need not be performed if:

(1) the drug is prescribed and dispensed to a hospice patient or to any other patient who has been diagnosed as terminally ill;

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 680

(2) the drug is prescribed and dispensed for the treatment of cancer;

(3) the drug is prescribed and dispensed for administration to a patient who has been admitted to a hospital, provided that, within 12 hours of admission, the prescriber or dispenser queries the system and reviews any controlled substance prescription data reported to the system about that patient and a record of the review and any pertinent information is placed in the patient's medical records so that it can be accessed during the patient's stay in the facility;

(4) the drug is prescribed and dispensed to treat acute pain resulting from a surgical or other invasive procedure or a delivery, provided that if use of the drug for such purpose continues for more than 30 days beyond the date of the procedure or delivery, the periodic queries of the system required in this subdivision shall be performed;

(5) the drug is administered during an emergency or within an ambulance; or

(6) the prescription electronic reporting system cannot be accessed due to a technological issue or power failure, in which case the prescriber or dispenser must document in the patient's record the reason the system could not be accessed."

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

The report was adopted.

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

H. F. No. 1203, A bill for an act relating to health insurance; requiring coverage under health plans for certain prescription eye drops refills; proposing coding for new law in Minnesota Statutes, chapter 62A.

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

The report was adopted.

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

H. F. No. 1269, A bill for an act relating to human services; requiring the commissioner of human services to develop a process to identify and report 340B drugs; establishing an alternative payment methodology for federally qualified health centers and rural health clinics; clarifying allowable costs for change of scope of services; permitting federally qualified health centers to submit claims for payment directly to the commissioner of human services; amending Minnesota Statutes 2016, section 256B.0625, subdivisions 13, 30.

Reported the same back with the following amendments:

Page 4, delete lines 22 to 25 and insert:

"(g) Effective for services provided on or after January 1, 2019, all claims for payment of clinic services provided by FQHCs and rural health clinics shall be paid by the commissioner, according to an annual election by the FQHC or rural health clinic, under the current prospective payment system described in paragraph (f), the alternative payment methodology described in paragraph (f), or the alternative payment methodology described in paragraph (l)."

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 681

Page 7, line 5, delete "medical" and insert "health care" and delete "medical" and insert "health care"

Page 7, line 6, after "teaching" insert "and precepting"

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

The report was adopted.

Runbeck from the Committee on Transportation and Regional Governance Policy to which was referred:

H. F. No. 1358, A bill for an act relating to motor vehicles; authorizing special overweight permits for hauling construction materials; proposing coding for new law in Minnesota Statutes, chapter 169.

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

The report was adopted.

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

H. F. No. 1366, A bill for an act relating to workers' compensation; adopting recommendations of the Workers' Compensation Advisory Council; adopting department proposals; allowing a forbearance of amounts owed to the special compensation fund; modifying intervention procedures; authorizing rulemaking; amending Minnesota Statutes 2016, sections 176.275, subdivision 1; 176.285; 176.361, subdivisions 2, 3; 176.521, by adding a subdivision; 176.541, subdivisions 1, 8, by adding a subdivision; 176.611, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 176; repealing Minnesota Statutes 2016, section 176.541, subdivision 7.

Reported the same back with the following amendments:

Page 1, after line 12, insert:

"Section 1. Minnesota Statutes 2016, section 176.1362, subdivision 1, is amended to read:

Subdivision 1. Payment based on Medicare MS-DRG system. (a) Except as provided in subdivisions 2 and 3, the maximum reimbursement for inpatient hospital services, articles, and supplies is 200 percent of the amount calculated for each hospital under the federal Inpatient Prospective Payment System developed for Medicare, using the inpatient Medicare PC-Pricer program for the applicable MS-DRG as provided in ~~paragraph (b)~~ this subdivision. All adjustments included in the PC-Pricer program are included in the amount calculated, including but not limited to any outlier payments.

(b) Payment under this section is effective for services, articles, and supplies provided to patients discharged from the hospital on or after January 1, 2016. Payment for services, articles, and supplies provided to patients discharged on January 1, 2016, through December 31, 2016, must be based on the Medicare PC-Pricer program in effect on January 1, 2016.

(c) For patients discharged on or after the effective date of this section, payment for inpatient services, articles, and supplies ~~for patients discharged in each calendar year thereafter~~ must be ~~based on~~ calculated according to the PC-Pricer program ~~in effect on January 1 of the year of discharge~~ identified on Medicare's Web site as FY 2016.1, updated on January 19, 2016.

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(d) For patients discharged on or after October 1, 2017, payment for inpatient services, articles, and supplies must be calculated according to the PC-Pricer program posted on the Department of Labor and Industry's Web site as follows:

(1) No later than October 1, 2017, and October 1 of each subsequent year, the commissioner must post on the department's Web site the version of the PC-Pricer program that is most recently available on Medicare's Web site as of the preceding July 1. If no PC-Pricer program is available on the Medicare Web site on any July 1, the PC-Pricer program most recently posted on the department's Web site remains in effect.

(2) The commissioner must publish notice of the applicable PC-Pricer program in the State Register no later than October 1 of each year.

(e) The MS-DRG grouper software or program that corresponds to the applicable version of the PC-Pricer program must be used to determine payment under this subdivision.

~~(c)~~ (f) Hospitals must bill workers' compensation insurers using the same codes, formats, and details that are required for billing for hospital inpatient services by the Medicare program. The bill must be submitted to the insurer within the time period required by section 62Q.75, subdivision 3. For purposes of this section, "insurer" includes both workers' compensation insurers and self-insured employers.

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

Sec. 2. Minnesota Statutes 2016, section 176.1362, subdivision 2, is amended to read:

Subd. 2. Payment for catastrophic, high-cost injuries. (a) If the hospital's total usual and customary charges for services, articles, and supplies for a patient's hospitalization exceed a threshold of $175,000, annually adjusted as provided in paragraph (b), reimbursement must not be based on the MS-DRG system, but must instead be paid at 75 percent of the hospital's usual and customary charges. The threshold amount in effect on the date of discharge determines the applicability of this paragraph.

(b) ~~Beginning~~ On January 1, 2017, ~~and each January 1 thereafter,~~ the commissioner must adjust the previous year's threshold by the percent change in average total charges per inpatient case, using data available as of October 1 for non-Critical Access Hospitals from the Health Care Cost Information System maintained by the Department of Health pursuant to chapter 144. Beginning October 1, 2017, and each October 1 thereafter, the commissioner must adjust the previous threshold using the data available as of the preceding July 1. The commissioner must ~~annually~~ publish notice of the updated threshold in the State Register.

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

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 3, before "allowing" insert "modifying payments for inpatient services;"

Correct the title numbers accordingly

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

The report was adopted.

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 683

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

H. F. No. 1397, A bill for an act relating to life insurance; limitation on payments to beneficiaries of persons furthering terrorism; amending Minnesota Statutes 2016, section 61A.09, by adding a subdivision.

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

The report was adopted.

SECOND READING OF HOUSE BILLS

H. F. Nos. 124, 390, 397, 947, 1066, 1135 and 1397 were read for the second time.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

The following House Files were introduced:

Urdahl and Ward introduced:

H. F. No. 1602, A bill for an act relating to education; requiring a civics class for high school graduation; amending Minnesota Statutes 2016, section 120B.024, subdivision 1.

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

Pierson, Albright, Loonan, Backer, Pinto, Fischer, Loeffler, Liebling and Flanagan introduced:

H. F. No. 1603, A bill for an act relating to human services; increasing the Minnesota family investment program cash assistance payment; appropriating money; amending Minnesota Statutes 2016, section 256J.24, subdivision 5.

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

Fenton and Loon introduced:

H. F. No. 1604, A bill for an act relating to early childhood education; modifying the quality rating and improvement system; amending Minnesota Statutes 2016, section 124D.142.

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

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 684

Pinto; Considine; Becker-Finn; Sauke; Bly; Pryor; Fischer; Maye Quade; Youakim; Masin; Freiberg; Rosenthal; Carlson, A.; Hausman; Johnson, S.; Lee; Kunesh-Podein; Halverson; Davnie; Ward; Hansen; Murphy, E.; Schultz; Olson; Allen; Flanagan; Wagenius; Slocum; Sundin; Applebaum; Dehn, R.; Bernardy and Omar introduced:

H. F. No. 1605, A bill for an act relating to public safety; enabling law enforcement and family members to petition a court to prohibit people from possessing firearms if they pose a significant danger to themselves or others by possessing a firearm; amending Minnesota Statutes 2016, section 624.713, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 245.

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

Smith, Freiberg, Lesch, Scott, Lucero, O'Driscoll and Carlson, A., introduced:

H. F. No. 1606, A bill for an act relating to local government; appropriating money for data practices training and technical assistance for local units of government through the Information Policy Analysis Division of the Department of Administration.

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

Haley, Hausman, Hamilton, Gunther, Fabian, Applebaum, Sauke, Flanagan, Kunesh-Podein, Maye Quade and Schomacker introduced:

H. F. No. 1607, A bill for an act relating to housing; authorizing the creation of housing trust funds by local governments; authorizing counties and cities to impose a surcharge on document recording fees for deposit into a housing trust fund; requiring reports; appropriating money; amending Minnesota Statutes 2016, sections 357.18, by adding a subdivision; 357.182, subdivision 2; 508.82, by adding a subdivision; 508A.82, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 462C.

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

Smith, Hoppe, Pinto and Loonan introduced:

H. F. No. 1608, A bill for an act relating to commerce; regulating unclaimed property; enacting the Revised Uniform Unclaimed Property Act recommended for enactment by the states by the National Conference of Commissioners on Uniform State Laws; proposing coding for new law in Minnesota Statutes, chapter 345; proposing coding for new law as Minnesota Statutes, chapter 345A.

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

Smith, Hoppe, Pinto, Loonan and Swedzinski introduced:

H. F. No. 1609, A bill for an act relating to notaries public; enacting the Revised Uniform Law on Notarial Acts, as amended, approved by the National Conference of Commissioners on Uniform State Laws; amending Minnesota Statutes 2016, sections 5.15; 325K.23, subdivision 1; 358.116; 358.50; 359.01, subdivision 5; 507.24, subdivision 2; 508.48; 508A.48; proposing coding for new law in Minnesota Statutes, chapter 358; repealing Minnesota Statutes 2016, sections 358.41; 358.42; 358.43; 358.44; 358.45; 358.46; 358.47; 358.48; 358.49.

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

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 685

Runbeck and Garofalo introduced:

H. F. No. 1610, A bill for an act relating to natural resources; reallocating prior appropriations for metropolitan parks.

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

Howe and Newberger introduced:

H. F. No. 1611, A bill for an act relating to public safety; fire marshal; revising school inspection schedules and funding; establishing a school facility fire safety loan program; appropriating money; amending Minnesota Statutes 2016, sections 299F.012, subdivision 1; 299F.47, subdivisions 1, 4, by adding subdivisions; repealing Minnesota Statutes 2016, section 299F.47, subdivision 2.

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

Hoppe, Loonan and Ecklund introduced:

H. F. No. 1612, A bill for an act relating to education finance; fully funding pupil transportation services; appropriating money; amending Minnesota Statutes 2016, sections 124E.20, subdivision 1; 124E.23; 126C.10, subdivisions 1, 18.

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

Kiel introduced:

H. F. No. 1613, A bill for an act relating to capital investment; appropriating money for a Public Safety and Emergency Operations Center for Pennington County.

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

Hoppe introduced:

H. F. No. 1614, A bill for an act relating to commerce; enacting the National Association of Insurance Commissioners Credit for Reinsurance Model Act; amending Minnesota Statutes 2016, section 60A.092, subdivisions 6, 10, 11, by adding subdivisions.

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

Pugh introduced:

H. F. No. 1615, A bill for an act relating to health; making changes to tribal vital record keeping, cancer reporting system, and the birth defect information system; amending Minnesota Statutes 2016, sections 144.2215, subdivision 1; 144.2216, subdivision 4; 144.225, subdivisions 2, 2a, 7; 144.69; proposing coding for new law in Minnesota Statutes, chapter 144.

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

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 686

Pugh introduced:

H. F. No. 1616, A bill for an act relating to health; requiring patient consent before health care providers and health plan companies may release data to the commissioner of health for health research and data initiatives; amending Minnesota Statutes 2016, section 62J.321, subdivisions 1, 4; repealing Minnesota Statutes 2016, section 144.293, subdivision 7.

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

Torkelson introduced:

H. F. No. 1617, A bill for an act relating to capital investment; setting a cap on grant amounts in the local bridge replacement and rehabilitation program; amending Minnesota Statutes 2016, section 174.50, subdivision 7.

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

Baker and Kresha introduced:

H. F. No. 1618, A bill for an act relating to telecommunications; transferring money for broadband grants.

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

Schomacker; Zerwas; Murphy, E.; Liebling; Baker; Hamilton and Lohmer introduced:

H. F. No. 1619, A bill for an act relating to human services; establishing a contingent, alternate medical assistance payment method for children's hospitals; amending Minnesota Statutes 2016, section 256.969, subdivisions 4b, 9.

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

Garofalo introduced:

H. F. No. 1620, A bill for an act relating to economic development; temporarily modifying the restrictions on use of Minnesota investment fund local government loan repayment funds.

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

Hansen introduced:

H. F. No. 1621, A bill for an act relating to natural resources; appropriating money for forest pest response.

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

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 687

Hansen introduced:

H. F. No. 1622, A bill for an act relating to environment; renaming Minnesota Pollution Control Agency to Department of Environment; amending Minnesota Statutes 2016, sections 15.01; 116.01; 116.02, subdivision 5; 116.735; repealing Minnesota Statutes 2016, sections 116.02, subdivision 1; 116.04.

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

Gunther introduced:

H. F. No. 1623, A bill for an act relating to education; expanding definition of shared time pupils; amending Minnesota Statutes 2016, section 126C.01, subdivision 8.

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

Fenton and Ward introduced:

H. F. No. 1624, A bill for an act relating to capital investment; appropriating money for an interchange project at signed Interstate Highways 94, 494, and 694; 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.

Poston, Bliss and Layman introduced:

H. F. No. 1625, A bill for an act relating to state lands; authorizing public and private sales of certain tax‑forfeited lands.

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

Petersburg and Gunther introduced:

H. F. No. 1626, A bill for an act relating to economic development; appropriating money for the Minnesota investment fund; appropriating money for the job creation fund.

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

Howe; Heintzeman; Theis; Johnson, B., and Hornstein introduced:

H. F. No. 1627, A bill for an act relating to health; prohibiting the use of certain flame-retardant chemicals in certain products; amending Minnesota Statutes 2016, section 325F.071.

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

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 688

Kiel, Poston, Lien, Lueck, Backer and Ecklund introduced:

H. F. No. 1628, A bill for an act relating to taxation; property; requiring the state to pay the costs of property tax judgments against state-assessed property; appropriating money; amending Minnesota Statutes 2016, section 278.12.

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

Lillie; Johnson, S., and Lee introduced:

H. F. No. 1629, A bill for an act relating to arts and cultural heritage; appropriating money to construct a public takraw court.

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

Runbeck introduced:

H. F. No. 1630, A bill for an act relating to mass transit; establishing a moratorium on certain guideway projects; requiring a plan that maximizes transit service and operations; requiring planning and a legislative report; amending Minnesota Statutes 2016, sections 174.93, subdivision 1; 398A.10, subdivision 1; 473.3999; proposing coding for new law in Minnesota Statutes, chapters 174; 471.

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

Quam introduced:

H. F. No. 1631, A bill for an act relating to taxation; sales and use; providing an exemption for certain items covered by health plans and for certain durable medical equipment; amending Minnesota Statutes 2016, section 297A.67, subdivisions 7, 7a.

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

Poston, Franke, Considine, Gunther and Jessup introduced:

H. F. No. 1632, A bill for an act relating to natural resources; requiring equestrian helmets for youth on certain state land; 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.

Whelan; Knoblach; Grossell; McDonald; Heintzeman; Daniels; Drazkowski; Backer; Dean, M.; Zerwas; Lohmer; Miller; Scott; Pugh; Newberger; Green; Quam; Gunther; Gruenhagen; Franson and Bahr, C., introduced:

H. F. No. 1633, A bill for an act relating to higher education; imposing requirements for fetal tissue research at the University of Minnesota; appropriating money for a program in ethical fetal tissue research; proposing coding for new law in Minnesota Statutes, chapter 137.

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

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Baker, Hamilton, Knoblach, Thissen, Lillie, Daniels, Theis and Christensen introduced:

H. F. No. 1634, A bill for an act relating to arts and cultural heritage; appropriating money for Somali arts and cultural heritage programs.

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

Kresha and Erickson introduced:

H. F. No. 1635, A bill for an act relating to education; providing for approval of education programs at care and treatment facilities; amending Minnesota Statutes 2016, section 125A.515, subdivisions 1, 3.

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

Johnson, B., introduced:

H. F. No. 1636, A bill for an act relating to transportation; designating a segment of marked Trunk Highway 65 in Isanti County as Chip A. Imker Memorial Highway; amending Minnesota Statutes 2016, section 161.14, by adding a subdivision.

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

Pinto introduced:

H. F. No. 1637, A bill for an act relating to tax-increment financing; modifying the Ford Site Redevelopment District.

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

West, Albright, Garofalo, Rarick, Lueck, Dettmer, O'Driscoll, Franke, Cornish, O'Neill, Uglem, Jurgens and Fenton introduced:

H. F. No. 1638, A bill for an act relating to apprenticeships; appropriating money for a grant to Helmets to Hard Hats.

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

Peterson, Marquart, Daniels and Mariani introduced:

H. F. No. 1639, A bill for an act relating to education; authorizing school districts and charter schools to create innovation zones; establishing a grant program; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 124D.

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

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 690

Flanagan and Youakim introduced:

H. F. No. 1640, A bill for an act relating to local government; amending provisions relating to police and firefighters' civil service commissions and employees of police and fire departments; amending Minnesota Statutes 2016, sections 420.03; 420.04; 420.16.

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

McDonald, Davids and Marquart introduced:

H. F. No. 1641, A bill for an act relating to taxation; sales and use; county agricultural societies; providing an exemption to admissions to county fairs; amending Minnesota Statutes 2016, sections 38.27, by adding a subdivision; 297A.70, by adding a subdivision.

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

Becker-Finn; Maye Quade; Murphy, E.; Halverson; Youakim; Olson; Schultz; Koegel and Omar introduced:

H. F. No. 1642, A bill for an act relating to public safety; prohibiting persons from interfering with access to reproductive health services and facilities; establishing criminal penalties; proposing coding for new law in Minnesota Statutes, chapter 609.

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

Layman introduced:

H. F. No. 1643, A bill for an act relating to Iron Range resources and rehabilitation; modifying duties of the commissioner; creating a Legislative-Citizen Commission; amending Minnesota Statutes 2016, sections 116J.424; 298.001, subdivision 8, by adding a subdivision; 298.22, subdivisions 1, 1a, 5a, 6, 10, 11, by adding subdivisions; 298.2211, subdivisions 3, 6; 298.223; 298.227; 298.28, subdivisions 7, 7a, 9c, 9d, 11; 298.292, subdivision 2; 298.296; 298.2961; 298.297; repealing Minnesota Statutes 2016, sections 298.22, subdivision 8; 298.2213; 298.298.

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

Pryor introduced:

H. F. No. 1644, A bill for an act relating to environment; providing for labeling of certain nonwoven disposable products; proposing coding for new law in Minnesota Statutes, chapter 325E.

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

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 691

Omar introduced:

H. F. No. 1645, A bill for an act relating to arts and cultural heritage; appropriating money for Somali Museum of Minnesota.

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

Moran introduced:

H. F. No. 1646, A bill for an act relating to public safety; requiring motor vehicle registration information for permits to carry a pistol; allowing peace officers access to identify permit holders through motor vehicle registration records; amending Minnesota Statutes 2016, sections 168.0185; 168.346, subdivisions 1, 2; 624.714, subdivisions 3, 6, 7a.

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

Omar and Dehn, R., introduced:

H. F. No. 1647, A bill for an act relating to education; modifying the safe schools levy; amending Minnesota Statutes 2016, section 126C.44.

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

Olson, Schultz and Murphy, M., introduced:

H. F. No. 1648, A bill for an act relating to arts and cultural heritage; appropriating money for Lake Superior Zoo.

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

Haley introduced:

H. F. No. 1649, A bill for an act relating to human services; establishing an electronic service delivery documentation system; appropriating money.

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

Haley introduced:

H. F. No. 1650, A bill for an act relating to capital investment; appropriating money for a regional event and conference center in Wabasha, for a riverfront revitalization project in Wabasha, and for an expansion of the National Eagle Center in Wabasha; 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.

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 692

Heintzeman and Knoblach introduced:

H. F. No. 1651, A bill for an act relating to higher education; providing representation requirements for the Minnesota State Colleges and Universities search advisory committees; amending Minnesota Statutes 2016, section 136F.40, by adding a subdivision.

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

Zerwas and Bernardy introduced:

H. F. No. 1652, A bill for an act relating to higher education; requiring the Minnesota State Colleges and Universities to develop a developmental education reform proposal.

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

Davids introduced:

H. F. No. 1653, A bill for an act relating to insurance; health; requiring health plan companies to include certain providers in-network; amending Minnesota Statutes 2016, section 62K.10, subdivision 1, by adding a subdivision.

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

O'Neill; Becker-Finn; Johnson, B.; Hilstrom and Newberger introduced:

H. F. No. 1654, A bill for an act relating to family law; adding domestic assault by strangulation to list of crimes impacting custody, parenting plans, and parenting time; amending Minnesota Statutes 2016, sections 518.179, subdivision 2; 631.52, subdivision 2.

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

Swedzinski and Schomacker introduced:

H. F. No. 1655, A bill for an act relating to taxation; sales and use; creating an exemption for certain materials used in construction of certain aquaculture facilities; amending Minnesota Statutes 2016, section 297A.71, by adding a subdivision.

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

Hertaus, McDonald, Pugh, Petersburg and Applebaum introduced:

H. F. No. 1656, A bill for an act relating to transportation; appropriating money for certain highway projects in Hennepin County.

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

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 693

Hertaus, McDonald, Pugh, Petersburg and Applebaum introduced:

H. F. No. 1657, A bill for an act relating to capital investment; appropriating money for certain trunk highway projects in Hennepin 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.

Hamilton, Moran, Mariani and Murphy, E., introduced:

H. F. No. 1658, A bill for an act relating to workforce development; appropriating money for a grant to the Hmong American Partnership.

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

Anselmo; Loon; Rosenthal; Carlson, A., and Hornstein introduced:

H. F. No. 1659, A bill for an act relating to transportation; appropriating money for transportation management organizations in the Twin Cities metropolitan area; proposing coding for new law in Minnesota Statutes, chapter 174.

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

Zerwas, Hamilton, Albright, Halverson and Flanagan introduced:

H. F. No. 1660, A bill for an act relating to human services; establishing a mobile food shelf grant program; appropriating money.

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

Lee and Omar introduced:

H. F. No. 1661, A bill for an act relating to education; modifying eligibility for graduation incentives program; amending Minnesota Statutes 2016, section 124D.68, subdivision 2.

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

Wills, Maye Quade, Hansen, Hausman, Masin, Urdahl, Lillie, Peterson and Wagenius introduced:

H. F. No. 1662, A bill for an act relating to arts and cultural heritage; appropriating money for Minnesota Zoological Gardens.

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

Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 694

Erickson, Haley, Bernardy, Daniels, Bennett, Urdahl and Mariani introduced:

H. F. No. 1663, A bill for an act relating to education; modifying alternative teacher preparation and compensation programs; creating a Teacher Shortage Task Force; expanding the concurrent enrollment teacher program; requiring a report; appropriating money; amending Minnesota Statutes 2016, sections 122A.245, subdivisions 1, 2, 3, 10; 122A.414, by adding a subdivision; 122A.415; 136A.1791, subdivisions 1, 2, 9; Laws 2016, chapter 189, article 25, sections 58; 62, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 136A.

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

Drazkowski, Hertaus and Quam introduced:

H. F. No. 1664, A bill for an act relating to aids to local governments; aid reductions for sanctuary cities; proposing coding for new law in Minnesota Statutes, chapter 477A.

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

Kresha, West, Hoppe, Garofalo and Smith introduced:

H. F. No. 1665, A bill for an act relating to telecommunications; prohibiting regulation of voice-over-Internet protocol service and Internet protocol-enabled service; amending Minnesota Statutes 2016, section 237.01, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 237.

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

Swedzinski, Metsa, Fabian, Vogel, Loonan and Johnson, B., introduced:

H. F. No. 1666, A bill for an act relating to environment; eliminating rulemaking authority pertaining to particulate emissions from silica sand projects; amending Laws 2013, chapter 114, article 4, section 105.

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

Peterson and Poston introduced:

H. F. No. 1667, A bill for an act relating to early childhood; requiring contracts for mixed delivery of services in the voluntary prekindergarten program; amending Minnesota Statutes 2016, section 124D.151, subdivision 3.

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

Poston introduced:

H. F. No. 1668, A bill for an act relating to education finance; early childhood education; modifying early learning programs' eligibility to accept scholarships; amending Minnesota Statutes 2016, section 124D.165, subdivision 4.

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

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Pinto; Bly; Sauke; Considine; Becker-Finn; Lee; Ward; Omar; Youakim; Moran; Flanagan; Bernardy; Olson; Maye Quade; Loeffler; Kunesh-Podein; Freiberg; Wagenius; Schultz; Fischer; Johnson, S.; Slocum; Halverson; Mariani; Carlson, A.; Pryor and Liebling introduced:

H. F. No. 1669, A bill for an act relating to public safety; requiring criminal background checks for firearm transfers; excepting certain transfers; amending Minnesota Statutes 2016, sections 609.66, by adding a subdivision; 624.7132, subdivision 12; proposing coding for new law in Minnesota Statutes, chapter 624; repealing Minnesota Statutes 2016, sections 609.66, subdivision 1f; 624.7132, subdivision 14.

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

Zerwas and Lesch introduced:

H. F. No. 1670, A bill for an act relating to transportation; making the driver diversion program permanent; authorizing proof of insurance provided by courts; amending the uniform traffic ticket; authorizing waiver of criminal surcharge; mandating court appearance for certain driving offenses; appropriating money; amending Minnesota Statutes 2016, sections 169.791, by adding a subdivision; 169.792, subdivision 7; 169.797, by adding a subdivision; 169.89, subdivision 1; 169.99, subdivision 1c, by adding a subdivision; 171.24, by adding a subdivision; 357.021, subdivision 6; Laws 2009, chapter 59, article 3, section 4, subdivision 9, as amended; 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.

Zerwas and Lesch introduced:

H. F. No. 1671, A bill for an act relating to transportation; making the driver diversion program permanent; appropriating money; amending Laws 2009, chapter 59, article 3, section 4, subdivision 9, as amended; 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.

Murphy, M., and Thissen introduced:

H. F. No. 1672, A bill for an act relating to retirement; volunteer firefighter relief associations; implementing the recommendations of the state auditor's volunteer firefighter working group; updating audit requirements; updating corporate stock requirements; modifying the definition of municipality; providing the option to include emergency medical response volunteers in plan coverage; making various technical corrections; amending Minnesota Statutes 2016, sections 69.051, subdivision 1; 356A.06, subdivision 7; 424A.001, subdivisions 2, 3, 10, by adding a subdivision; 424A.002, subdivision 1; 424A.01, subdivisions 1, 5, 6; 424A.015, subdivision 1; 424A.016, subdivision 2; 424A.02, subdivisions 1, 3a, 7; 424A.04, subdivision 1; 424A.07; 424A.091, subdivision 3; 424A.094, subdivision 3; 424A.10, subdivision 1.

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

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Fabian introduced:

H. F. No. 1673, A bill for an act relating to natural resources; modifying off-highway motorcycle education and training program; modifying provisions of Minnesota Naturalist Corps; modifying invasive species provisions; modifying requirements for designating forest trails; modifying state water trail provisions; modifying water safety requirements; modifying grant, contract, and lease provisions; modifying provisions to take, possess, and transport wildlife; modifying commissioner's duties and authority; requiring rulemaking; amending Minnesota Statutes 2016, sections 84.01, by adding a subdivision; 84.791, subdivisions 1, 2; 84.946, subdivision 2, by adding a subdivision; 84.992, subdivisions 3, 4, 5, 6; 84D.03, subdivisions 3, 4; 84D.04, subdivision 1; 84D.05, subdivision 1; 84D.11, by adding a subdivision; 85.32, subdivision 1; 86B.105; 86B.313, subdivision 1; 86B.501, subdivision 3; 86B.511; 88.523; 89.19, subdivision 2; 89.39; 90.041, subdivision 2; 90.051; 90.14; 90.151, subdivision 1; 90.162; 90.252; 94.343, subdivision 9; 94.344, subdivision 9; 97A.015, subdivisions 39, 43, 45, 52, 53; 97A.045, subdivision 10; 97A.475, subdivision 42; 97B.655, subdivision 1; 97C.601, subdivisions 2, 5; 97C.701, by adding a subdivision; 103G.411; 160.06; proposing coding for new law in Minnesota Statutes, chapter 97A; repealing Minnesota Statutes 2016, sections 84.025, subdivision 10; 84.026, subdivision 3; 85.012, subdivision 27b; 86B.313, subdivisions 2, 3; 97C.601, subdivision 3; 97C.701, subdivisions 1a, 6; 97C.705; 97C.711; Minnesota Rules, parts 6256.0200; 6258.0100; 6258.0200; 6258.0300; 6258.0400; 6258.0500; 6258.0600; 6258.0700, subparts 1, 4, 5; 6258.0800; 6258.0900.

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

Fabian introduced:

H. F. No. 1674, A bill for an act relating to counties; providing a process for making the office of county recorder appointive in Marshall County.

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

Green, Quam and Drazkowski introduced:

H. F. No. 1675, A bill for an act relating to legacy; prohibiting payment of certain indirect costs from legacy funds; amending Minnesota Statutes 2016, sections 16A.127, subdivision 8; 85.53, by adding a subdivision; 97A.056, by adding a subdivision; 114D.50, by adding a subdivision; 129D.17, by adding a subdivision.

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

Allen, Clark, Omar, Olson, Slocum, Ward, Metsa, Lee, Mariani, Flanagan and Kunesh-Podein introduced:

H. F. No. 1676, A bill for an act relating to state government; establishing the American Indian and Indigenous Peoples Day; proposing coding for new law in Minnesota Statutes, chapter 10.

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

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Allen, Clark, Omar, Slocum, Ward, Lee, Mariani, Flanagan and Kunesh-Podein introduced:

H. F. No. 1677, A bill for an act relating to state government; changing the engraving on a statue of an historic figure.

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

Lee; Pinto; Maye Quade; Dehn, R.; Carlson, A.; Moran; Fischer; Wagenius; Omar; Ward and Hausman introduced:

H. F. No. 1678, A bill for an act relating to human services; establishing the Taylor Hayden Gun Violence Prevention Act; appropriating money.

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

Koznick introduced:

H. F. No. 1679, A bill for an act relating to metropolitan government; providing for additional financing of metropolitan-area transit and paratransit capital expenditures; authorizing the issuance of certain obligations; amending Minnesota Statutes 2016, section 473.39, by adding a subdivision.

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

Bennett, Loon, Gruenhagen, Maye Quade, Smith, Hamilton, Nash, Miller, Theis and Erickson introduced:

H. F. No. 1680, A bill for an act relating to education; modifying academic standards; establishing child sexual abuse prevention programs; requiring a report; amending Minnesota Statutes 2016, sections 120B.021, subdivision 1; 120B.22, subdivision 2; 120B.23, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 120B.

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

Slocum and Mariani introduced:

H. F. No. 1681, A bill for an act relating to education; requiring a trustee to oversee the closure of a charter school; amending Minnesota Statutes 2016, section 124E.10, by adding a subdivision.

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

Bliss introduced:

H. F. No. 1682, A bill for an act relating to state government; appropriating money for Veterans' Voices radio programming.

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

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Bliss introduced:

H. F. No. 1683, A bill for an act relating to state government; appropriating money for grants to radio stations.

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

Sandstede, Peterson, Halverson, Youakim, Nelson, Lee, Kunesh-Podein, Sauke, Olson and Liebling introduced:

H. F. No. 1684, A bill for an act relating to education finance; increasing appropriations for school readiness programs; amending Minnesota Statutes 2016, section 124D.16, subdivision 2.

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

Wills, Jurgens, Mariani, Hansen, Lillie and Haley introduced:

H. F. No. 1685, A bill for an act relating to capital investment; appropriating money for railroad crossing safety improvements for the Mississippi River Regional Trail; 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.

Heintzeman and Knoblach introduced:

H. F. No. 1686, A bill for an act relating to transportation; crediting surcharge on vehicle parking violations to highway user tax distribution fund; amending Minnesota Statutes 2016, section 357.021, subdivision 7.

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

Layman introduced:

H. F. No. 1687, A bill for an act relating to capital investment; appropriating money for sanitary and storm sewer facilities in Coleraine, Bovey, and Taconite; 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.

Zerwas, Hamilton, Lee and McDonald introduced:

H. F. No. 1688, A bill for an act relating to public safety; modifying length of probation for certain offenses; clarifying that court can grant early termination and discharge of probation; amending Minnesota Statutes 2016, section 609.135, subdivision 2.

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

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Ecklund introduced:

H. F. No. 1689, A bill for an act relating to local government; permitting city and town expenditures for city and town historical societies; amending Minnesota Statutes 2016, section 138.053.

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

Ecklund introduced:

H. F. No. 1690, A bill for an act relating to state lands; authorizing the sale of certain state lands bordering public water in Lake County.

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

Hoppe introduced:

H. F. No. 1691, A bill for an act relating to liquor; clarifying off-sale license for microdistilleries; amending Minnesota Statutes 2016, section 340A.22, subdivision 4.

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

Hilstrom; Flanagan; Hortman; Dehn, R.; Becker-Finn; Ward and Murphy, E., introduced:

H. F. No. 1692, A bill for an act relating to corrections; requiring state and local jail and prison inmates to be housed in publicly owned and operated jails and prisons; prohibiting the state and counties from contracting with private prisons; amending Minnesota Statutes 2016, section 241.01, subdivision 3a; proposing coding for new law in Minnesota Statutes, chapters 243; 641.

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

Davids introduced:

H. F. No. 1693, A bill for an act relating to commerce; authorizing the Minnesota premium security plan as a state-based reinsurance program administered by the Minnesota Comprehensive Health Association; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 62E.

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

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Anderson, S.; Davids; Applebaum; Drazkowski and Rosenthal introduced:

H. F. No. 1694, A bill for an act relating to taxation; establishing a private letter ruling program; limiting assessment authority of the commissioner of revenue; providing expanded authority to abate penalties and taxes; modifying penalties; appropriating money; amending Minnesota Statutes 2016, sections 270C.31, by adding a subdivision; 270C.33, by adding subdivisions; 270C.34, subdivision 1; 270C.35, subdivision 4; 289A.40, subdivision 1; 289A.60, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 270C.

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

Kresha introduced:

H. F. No. 1695, A bill for an act relating to education; establishing a program to promote educational stability for students in foster care; requiring a report; appropriating money.

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

O'Driscoll, Nelson and Halverson introduced:

H. F. No. 1696, A bill for an act relating to counties; authorizing the appointment of county recorders; amending Minnesota Statutes 2016, sections 375.08; 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.

O'Driscoll, Fenton, Nelson and Halverson introduced:

H. F. No. 1697, A bill for an act relating to elections; providing a voting equipment grant program; requiring reports; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 206; repealing Minnesota Statutes 2016, section 204B.48.

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

Fenton and Fischer introduced:

H. F. No. 1698, A bill for an act relating to health; requiring lead testing of water in public school buildings; proposing coding for new law in Minnesota Statutes, chapter 145.

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

Moran and Omar introduced:

H. F. No. 1699, A bill for an act relating to human services; modifying allocation and permitted uses of county child protection funds; appropriating money; amending Minnesota Statutes 2016, section 256M.41, subdivisions 2, 3.

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

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Moran and Omar introduced:

H. F. No. 1700, A bill for an act relating to human services; appropriating money for culturally competent mental health provider grants.

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

Omar and Scott introduced:

H. F. No. 1701, A bill for an act relating to data practices; modifying the definition of electronic access data to exclude government employees; amending Minnesota Statutes 2016, section 13.15, subdivision 1.

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

REPORT FROM THE COMMITTEE ON RULES

AND LEGISLATIVE ADMINISTRATION

Peppin from the Committee on Rules and Legislative Administration, pursuant to rules 1.21 and 3.33, designated the following bill to be placed on the Calendar for the Day for Monday, February 27, 2017 and established a prefiling requirement for amendments offered to the following bill:

H. F. No. 22.

Peppin moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

RECONVENED

The House reconvened and was called to order by the Speaker.

Zerwas was excused for the remainder of today's session.

CALENDAR FOR THE DAY

H. F. No. 3 was reported to the House.

Nash moved to amend H. F. No. 3, the third engrossment, as follows:

Page 19, line 11, after the semicolon, insert "or"

Page 19, line 13, delete "; or" and insert a period

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Page 19, delete line 14

Page 19, after line 20, insert:

"Sec. 21. Minnesota Statutes 2016, section 171.12, is amended by adding a subdivision to read:

Subd. 7c. Firearms data. (a) The commissioner is prohibited from sharing any data the department maintains under section 171.07, subdivision 13.

(b) The commissioner is prohibited from sharing any data pertaining to the purchase or transfer of firearms, applications for permits to carry firearms, or the purchase or transfer of firearms ammunition, collected by government entities pursuant to sections 624.712 to 624.719."

Renumber the sections in sequence and correct the internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Nash amendment and the roll was called. There were 85 yeas and 45 nays as follows:

Those who voted in the affirmative were:

The motion prevailed and the amendment was adopted.

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Mariani moved to amend H. F. No. 3, the third engrossment, as amended, as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2016, section 171.01, is amended by adding a subdivision to read:

Subd. 41a. Noncompliant license; noncompliant identification card. "Noncompliant license," "noncompliant identification card," or "noncompliant license or identification card," means a driver's license or Minnesota identification card issued under section 171.019, subdivision 2, paragraph (b).

Sec. 2. Minnesota Statutes 2016, section 171.01, is amended by adding a subdivision to read:

Subd. 45b. REAL ID Act. "REAL ID Act" means the REAL ID Act of 2005, Public Law 109-13, Division B.

Sec. 3. Minnesota Statutes 2016, section 171.01, is amended by adding a subdivision to read:

Subd. 48b. Temporary lawful status. "Temporary lawful status" has the meaning given in Code of Federal Regulations, title 6, section 37.3.

Sec. 4. Minnesota Statutes 2016, section 171.017, is amended to read:

171.017 BACKGROUND INVESTIGATIONS; ~~DEPARTMENT~~ DRIVER'S LICENSE AGENTS AND CERTAIN EMPLOYEES.

Subdivision 1. Background checks authorized. The commissioner ~~shall~~ must investigate the criminal history background of any driver's license agent and any current or prospective employees of the department or driver's license agent being considered for any position ~~with the department~~ that has or will have the ability to:

(1) ~~the ability to~~ create or modify records of applicants for identification cards and driver's licenses, including enhanced drivers' licenses ~~under section 171.01, subdivision 31a, or~~ and enhanced identification cards ~~under section 171.01, subdivision 31b~~;

(2) ~~the ability to~~ issue enhanced drivers' licenses ~~under section 171.01, subdivision 31a,~~ or enhanced identification cards ~~under section 171.01, subdivision 31b~~; or

(3) ~~the ability to~~ administer knowledge or skills tests under section 171.13 to an applicant for a commercial driver's license.

Subd. 2. Procedure. (a) The commissioner must request a criminal history background check from the superintendent of the Bureau of Criminal Apprehension on all individuals specified in subdivision 1. A request under this section must be accompanied by an executed criminal history consent form, including fingerprints, signed by the agent or the current or prospective employee being investigated.

(b) After receiving a request under paragraph (a), the superintendent of the Bureau of Criminal Apprehension shall perform the background check required under subdivision 1. The superintendent shall retrieve criminal history data as defined in section 13.87, conduct a search of the national criminal records repository, and provide wants and warrant information from federal and state repositories. The superintendent is authorized to exchange fingerprints with the Federal Bureau of Investigation for purposes of the criminal history check. The superintendent shall return the results of the background checks to the commissioner to determine whether:

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(1) the agent, employee, or applicant for employment specified in subdivision 1, clause (1) or (2), has committed a disqualifying crime under Code of Federal Regulations, title 49, section 1572.103; or

(2) the employee or applicant for employment specified in subdivision 1, clause (3), has a conviction of the type specified by Code of Federal Regulations, title 49, section 384.228(j).

(c) The superintendent shall recover the ~~cost to the bureau of a~~ bureau's background check cost for the person on whom the background check is performed through a fee charged to the commissioner or the driver's license agent who requested the background check.

Subd. 3. Notification by other criminal justice agencies. Criminal justice agencies, as defined by section 13.02, subdivision 3a, shall provide the commissioner with information they possess and that the commissioner requires for the purposes of determining the employment suitability of current or prospective employees subject to this section.

Subd. 4. Annual background checks in certain instances. Consistent with Code of Federal Regulations, title 49, section 384.228, the commissioner shall request and the superintendent shall conduct annual background checks for the department employees specified in subdivision 1, clause (3). Annual background checks under this subdivision ~~shall~~ must be performed in a manner consistent with subdivisions 2 and 3.

Sec. 5. [171.019] REAL ID ACT CONFORMITY; LIMITATIONS.

Subdivision 1. Definition. For purposes of this section, "federal change" means a modification or addition to REAL ID Act requirements, made by the federal government after the effective date of this act, with respect to: legal requirements; processes; policies and procedures; or data collection, storage, and dissemination. Federal change includes but is not limited to a modification:

(1) in what constitutes an official purpose under Code of Federal Regulations, title 6, part 37;

(2) in the machine-readable technology standards for a license or Minnesota identification card;

(3) in the information provided on the face of the license or Minnesota identification card;

(4) that relates to dissemination of state-provided data to or among federal agencies, other states, organizations operating under agreement among the states, or private entities; or

(5) that imposes an identifiable cost for the state of Minnesota.

Subd. 2. License and Minnesota identification card options. (a) The commissioner must meet the requirements of the REAL ID Act for licenses and identification cards, including but not limited to documentation requirements, administrative processes, electronic validation or verification of data, and card design and marking, as provided under this chapter.

(b) The commissioner must establish a license and Minnesota identification card that does not meet all requirements of the REAL ID Act, including but not limited to section 171.12, subdivision 7b, as provided in this chapter.

(c) The commissioner must establish an enhanced driver's license or enhanced identification card as provided in this chapter.

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Subd. 3. Limitations. Compliance under subdivision 2, paragraph (a), is limited to those requirements of the REAL ID Act in effect as of the effective date of this act. The commissioner may not take any action to implement or meet the requirements of a federal change.

Subd. 4. Legislative notification. (a) Upon identification of an impending or completed federal change, the commissioner must notify the chairs and ranking minority members of the legislative committees having jurisdiction over transportation policy and finance, public safety, and data practices, and the Legislative Commission on Data Practices and Personal Data Privacy. Notification must be submitted as required under section 3.195, except that printed copies are not required.

(b) Notification under this subdivision must include a review of the federal change, an initial analysis of data practices impacts, and any preliminary estimates of implementation costs, including the availability of additional federal funds.

Subd. 5. Statutory construction. (a) Unless specifically provided otherwise, a driver's license, instruction permit, or provisional license includes any noncompliant license. Unless specifically provided otherwise, a Minnesota identification card includes any noncompliant identification card.

(b) A noncompliant license does not include an enhanced driver's license, and a noncompliant identification card does not include an enhanced identification card.

Sec. 6. Minnesota Statutes 2016, section 171.04, is amended by adding a subdivision to read:

Subd. 5. Temporary lawful admission. The commissioner is prohibited from issuing a driver's license or Minnesota identification card to an applicant whose lawful temporary admission period, as demonstrated under section 171.06, subdivision 3, paragraph (b), expires within 30 days of the date of the application.

Sec. 7. Minnesota Statutes 2016, section 171.06, subdivision 1, is amended to read:

Subdivision 1. ~~Forms of~~ Application format and requirements. (a) Every application for a Minnesota identification card~~, for~~ including an enhanced identification card, or for a driver's license including ~~for~~ an instruction permit, ~~for~~ a provisional license, ~~for a driver's license, or for~~ and an enhanced driver's license, must be made in a format approved by the department~~, and~~. Every application must be accompanied by payment of the proper fee. All first-time applications and change-of-status applications must be signed in the presence of the person authorized to accept the application, or the signature on the application may be verified by a notary public. All applications requiring evidence of legal presence in the United States or United States citizenship

(b) All applicants must sign the application and declare, under penalty of perjury, that the information and documentation presented in the application is true and correct. The application must be signed in the presence of the person authorized to accept the application, or the signature ~~on the application~~ may be verified by a notary public.

Sec. 8. Minnesota Statutes 2016, section 171.06, subdivision 2, is amended to read:

Subd. 2. Fees. (a) The fees for a license and Minnesota identification card are as follows:

Classified Driver's License	D-$17.25	C-$21.25	B-$28.25	A-$36.25
Classified Under-21 D.L.	D-$17.25	C-$21.25	B-$28.25	A-$16.25
Enhanced Driver's License	D-$32.25	C-$36.25	B-$43.25	A-$51.25
Instruction Permit				$5.25
Enhanced Instruction Permit				$20.25
Commercial Learner's Permit				$2.50
Journal of the House - 20th Day - Thursday, February 23, 2017 - Top of Page 706 Provisional License				$8.25
Enhanced Provisional License				$23.25
Duplicate License or duplicate identification card				$6.75
Enhanced Duplicate License or enhanced duplicate identification card				$21.75
Minnesota identification card or Under-21 Minnesota identification card, other than duplicate, except as otherwise provided in section 171.07, subdivisions 3 and 3a				$11.25
Enhanced Minnesota identification card				$26.25

In addition to each fee required in this paragraph, the commissioner shall collect a surcharge of: (1) $1.75 until June 30, 2012; and (2) $1.00 from July 1, 2012, to June 30, 2016. Surcharges collected under this paragraph must be credited to the driver and vehicle services technology account in the special revenue fund under section 299A.705.

(b) Notwithstanding paragraph (a), an individual who holds a provisional license and has a driving record free of (1) convictions for a violation of section 169A.20, 169A.33, 169A.35, or sections 169A.50 to 169A.53, (2) convictions for crash-related moving violations, and (3) convictions for moving violations that are not crash related, shall have a $3.50 credit toward the fee for any classified under-21 driver's license. "Moving violation" has the meaning given it in section 171.04, subdivision 1.

(c) In addition to the driver's license fee required under paragraph (a), the commissioner shall collect an additional $4 processing fee from each new applicant or individual renewing a license with a school bus endorsement to cover the costs for processing an applicant's initial and biennial physical examination certificate. The department shall not charge these applicants any other fee to receive or renew the endorsement.

(d) In addition to the fee required under paragraph (a), a driver's license agent may charge and retain a filing fee as provided under section 171.061, subdivision 4.

(e) In addition to the fee required under paragraph (a), the commissioner shall charge a filing fee at the same amount as a driver's license agent under section 171.061, subdivision 4. Revenue collected under this paragraph must be deposited in the driver services operating account.

(f) An application for a Minnesota identification card, instruction permit, provisional license, or driver's license, including an application for renewal, must contain a provision that allows the applicant to add to the fee under paragraph (a), a $2 donation for the purposes of public information and education on anatomical gifts under section 171.075.

(g) The fees under paragraph (a) for a driver's license, instruction permit, provisional license, or Minnesota identification card are the same for a noncompliant license or identification card.

Sec. 9. Minnesota Statutes 2016, section 171.06, subdivision 3, is amended to read:

Subd. 3. Contents of application; other information. (a) An application must:

(1) state the full name, date of birth, sex, and either (i) the residence address of the applicant, or (ii) designated address under section 5B.05;

(2) as may be required by the commissioner, contain a description of the applicant and any other facts pertaining to the applicant, the applicant's driving privileges, and the applicant's ability to operate a motor vehicle with safety;

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(3) state:

(i) the applicant's Social Security number; or

(ii) if the applicant does not have a Social Security number and is applying for a Minnesota identification card, instruction permit, or class D provisional or driver's license, that the applicant certifies that the applicant ~~does not have~~ is not eligible for a Social Security number;

~~(4) in the case of an application for an enhanced driver's license or enhanced identification card, present:~~

~~(i) proof satisfactory to the commissioner of the applicant's full legal name, United States citizenship, identity, date of birth, Social Security number, and residence address; and~~

~~(ii) a photographic identity document;~~

~~(5) contain a space where the applicant may indicate a desire to make an anatomical gift according to paragraph (b);~~

~~(6)~~ (4) contain a notification to the applicant of the availability of a living will/health care directive designation on the license under section 171.07, subdivision 7; and

~~(7)~~ (5) contain ~~a space~~ spaces where the applicant may:

(i) request a veteran designation on the license under section 171.07, subdivision 15, and the driving record under section 171.12, subdivision 5a;

(ii) indicate a desire to make an anatomical gift under paragraph (d); and

(iii) as applicable, designate document retention as provided under section 171.12, subdivision 3c.

(b) Applications must be accompanied by satisfactory evidence demonstrating:

(1) identity, date of birth, and any legal name change if applicable; and

(2) for driver's licenses and Minnesota identification cards that meet all requirements of the REAL ID Act:

(i) principal residence address in Minnesota, including application for a renewal or change of address, unless the applicant provides a designated address under section 5B.05;

(ii) Social Security number, or related documentation as applicable; and

(iii) lawful status, as defined in Code of Federal Regulations, title 6, section 37.3.

(1) satisfactory evidence demonstrating the applicant's full legal name and United States citizenship; and

(2) a photographic identity document.

~~(b)~~ (d) If the applicant does not indicate a desire to make an anatomical gift when the application is made, the applicant must be offered a donor document in accordance with section 171.07, subdivision 5. The application must contain statements sufficient to comply with the requirements of the Darlene Luther Revised Uniform Anatomical

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Gift Act, chapter 525A, so that execution of the application or donor document will make the anatomical gift as provided in section 171.07, subdivision 5, for those indicating a desire to make an anatomical gift. The application must be accompanied by information describing Minnesota laws regarding anatomical gifts and the need for and benefits of anatomical gifts, and the legal implications of making an anatomical gift, including the law governing revocation of anatomical gifts. The commissioner shall distribute a notice that must accompany all applications for and renewals of a driver's license or Minnesota identification card. The notice must be prepared in conjunction with a Minnesota organ procurement organization that is certified by the federal Department of Health and Human Services and must include:

(1) a statement that provides a fair and reasonable description of the organ donation process, the care of the donor body after death, and the importance of informing family members of the donation decision; and

(2) a telephone number in a certified Minnesota organ procurement organization that may be called with respect to questions regarding anatomical gifts.

~~(c)~~ (e) The application must be accompanied also by information containing relevant facts relating to:

(1) the effect of alcohol on driving ability;

(2) the effect of mixing alcohol with drugs;

(3) the laws of Minnesota relating to operation of a motor vehicle while under the influence of alcohol or a controlled substance; and

(4) the levels of alcohol-related fatalities and accidents in Minnesota and of arrests for alcohol-related violations.

Sec. 10. Minnesota Statutes 2016, section 171.06, is amended by adding a subdivision to read:

Subd. 3b. Information for applicants. (a) The commissioner must develop summary information on identity document options and must ensure availability of the information for driver's license and Minnesota identification card applicants. Renewal notifications mailed to license and identification card holders must include a department Web site address containing the summary information.

(b) The summary information must, at a minimum, identify:

(1) each available type of driver's license and Minnesota identification card, including a noncompliant license or identification card, an enhanced driver's license, and an enhanced identification card; and

(2) the official purposes of and limitations on use for each type of driver's license and Minnesota identification card.

(c) An applicant for a noncompliant license or identification card must sign an acknowledgment that the applicant understands the limitations on use of the license or card.

Sec. 11. [171.0605] EVIDENCE OF IDENTITY AND LAWFUL PRESENCE.

Subdivision 1. Scope and application. This section applies only to driver's licenses and Minnesota identification cards that meet all requirements of the REAL ID Act. Except as otherwise provided under this section, the requirements of Minnesota Rules, chapter 7410, or successor rules, apply.

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Subd. 2. Evidence; identity; date of birth. (a) Only the following is satisfactory evidence of an applicant's identity and date of birth under section 171.06, subdivision 3, paragraph (b):

(1) a driver's license or identification card that:

(i) complies with all requirements of the REAL ID Act;

(ii) is not designated as temporary or limited term; and

(iii) is current or has been expired for five years or less;

(2) a valid, unexpired United States passport issued by the United States Department of State;

(3) a certified copy of a birth certificate issued by a government bureau of vital statistics or equivalent agency in the applicant's state of birth, which must bear the raised or authorized seal of the issuing government entity;

(4) a consular report of birth abroad, certification of report of birth, or certification of birth abroad, issued by the United States Department of State, Form FS-240, DS-1350, or FS-545;

(5) a valid, unexpired permanent resident card issued by the United States Department of Homeland Security or the former Immigration and Naturalization Service of the United States Department of Justice, Form I-551;

(6) a certificate of naturalization issued by the United States Department of Homeland Security, Form N-550 or Form N-570;

(7) a certificate of citizenship issued by the United States Department of Homeland Security, Form N-560 or Form N-56;

(8) an unexpired employment authorization document issued by the United States Department of Homeland Security, Form I-766 or Form I-688B;

(9) a valid, unexpired passport issued by a foreign country and a valid, unexpired United States visa accompanied by documentation of the applicant's most recent lawful admittance into the United States;

(10) a document as designated by the United States Department of Homeland Security under Code of Federal Regulations, title 6, part 37.11(c)(1)(x); or

(11) a document issued by a federal agency that demonstrates the applicant's lawful status.

(b) A document under paragraph (a) must be legible and unaltered.

Subd. 3. Evidence; lawful status. Only a form of documentation identified under subdivision 2 is satisfactory evidence of an applicant's lawful status under section 171.06, subdivision 3, paragraph (b).

Subd. 4. Evidence; Social Security number. The following is satisfactory evidence of an applicant's Social Security number or related documentation under section 171.06, subdivision 3, paragraph (b):

(1) a Social Security card;

(2) if a Social Security card is not available:

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(i) a federal Form W-2;

(ii) a federal Form SSA-1099 or other federal Form 1099 having the applicant's Social Security number; or

(iii) a computer-printed United States employment pay stub with the applicant's name, address, and Social Security number; or

(3) for an applicant who provides a passport under subdivision 2, paragraph (a), clause (9), documentation demonstrating nonwork authorized status.

Subd. 5. Evidence; residence in Minnesota. Submission of two forms of documentation from the following is satisfactory evidence of an applicant's principal residence address in Minnesota under section 171.06, subdivision 3, paragraph (b):

(1) a home utility services bill issued no more than 90 days before the application, provided that the commissioner must not accept a United States home utility bill if two unrelated people are listed on the bill;

(2) a home utility services hook-up work order issued no more than 90 days before the application, provided that the commissioner must not accept a home utility services hook-up work order if two unrelated people are listed on the work order;

(3) United States financial information issued no more than 90 days before the application, with account numbers redacted, including:

(i) a bank account statement;

(ii) a canceled check; or

(iii) a credit card statement;

(4) a United States high school identification card with a certified transcript from the school, if issued no more than 180 days before the application;

(5) a Minnesota college or university identification card with a certified transcript from the college or university, if issued no more than 180 days before the application;

(6) an employment pay stub issued no more than 90 days before the application that lists the employer's name, address, and telephone number;

(7) a Minnesota unemployment insurance benefit statement issued no more than 90 days before the application;

(8) an assisted living or nursing home statement issued no more than 90 days before the application;

(9) a life, health, automobile, homeowner's, or renter's insurance policy issued no more than 90 days before the application, provided that the commissioner must not accept a proof of insurance card;

(10) a federal or state income tax return or statement for the most recent tax filing year;

(11) a Minnesota property tax statement for the current year that shows the applicant's principal residential address both on the mailing portion and the portion stating what property is being taxed;

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(12) a Minnesota vehicle certificate of title, if issued no more than 12 months before the application;

(13) a filed property deed or title for current residence, if issued no more than 12 months before the application;

(14) a Supplemental Security Income award statement issued no more than 12 months before the application;

(15) mortgage documents for the applicant's principal residence;

(16) a residential lease agreement for the applicant's principal residence issued no more than 12 months before the application;

(17) a valid driver's license, including an instruction permit, issued under this chapter;

(18) a valid Minnesota identification card;

(19) an unexpired Minnesota professional license;

(20) an unexpired Selective Service card; or

(21) military orders that are still in effect at the time of application.

(b) A document under paragraph (a) must include the applicant's name and an address in Minnesota.

Subd. 6. Exceptions process. (a) The commissioner may grant a variance from the requirements of this section as provided under Minnesota Rules, part 7410.0600, or successor rules, for evidence of:

(1) identity or date of birth under subdivision 2;

(2) lawful status under subdivision 3, only for demonstration of United States citizenship;

(3) Social Security number under subdivision 4; and

(4) residence in Minnesota under subdivision 5.

(b) The commissioner must not grant a variance for an applicant having a lawful temporary admission period.

Sec. 12. Minnesota Statutes 2016, section 171.07, subdivision 1, is amended to read:

Subdivision 1. License; contents and design. (a) Upon the payment of the required fee, the department shall issue to every qualifying applicant a license designating the type or class of vehicles the applicant is authorized to drive as applied for. This license must bear: (1) a distinguishing number assigned to the licensee; (2) the licensee's full name and date of birth; (3) either ~~(1)~~ (i) the licensee's residence address, or ~~(2)~~ (ii) the designated address under section 5B.05; (4) a description of the licensee in a manner as the commissioner deems necessary; ~~and~~ (5) the usual signature of the licensee; and (6) designations and markings as provided in this section. No license is valid unless it bears the usual signature of the licensee. Every license must bear a colored photograph or an electronically produced image of the licensee.

(b) If the United States Postal Service will not deliver mail to the applicant's residence address as listed on the license, then the applicant shall provide verification from the United States Postal Service that mail will not be delivered to the applicant's residence address and that mail will be delivered to a specified alternate mailing address. When an applicant provides an alternate mailing address under this subdivision, the commissioner shall use the alternate mailing address in lieu of the applicant's residence address for all notices and mailings to the applicant.

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(c) Every license issued to an applicant under the age of 21 must be of a distinguishing color and plainly marked "Under-21."

(d) The department shall use processes in issuing a license that prohibit, as nearly as possible, the ability to alter or reproduce a license, or prohibit the ability to superimpose a photograph or electronically produced image on a license, without ready detection.

~~(e)~~ A license issued to an applicant age 65 or over must be plainly marked "senior" if requested by the applicant.

(e) Except for an enhanced driver's license or a noncompliant license, a license must bear a distinguishing indicator for compliance with requirements of the REAL ID Act.

(f) A noncompliant license must:

(1) be marked "not for federal identification" on the face and in the machine-readable portion; and

(2) have a unique design or color indicator.

(g) A license issued to a person with temporary lawful status must be marked "temporary" on the face and in the machine-readable portion.

(h) A license must display the licensee's full name or no fewer than 39 characters of the name. Any necessary truncation must begin with the last character of the middle name and proceed through the second letter of the middle name, followed by the last character of the first name and proceeding through the second letter of the first name.

Sec. 13. Minnesota Statutes 2016, section 171.07, subdivision 3, is amended to read:

Subd. 3. Identification card; content and design; fee. (a) Upon payment of the required fee, the department shall issue to every qualifying applicant a Minnesota identification card. The department may not issue a Minnesota identification card to an individual who has a driver's license, other than a limited license. The department may not issue an enhanced identification card to an individual who is under 16 years of age, not a resident of this state, or not a citizen of the United States of America. The card must bear: (1) a distinguishing number assigned to the applicant; (2) a colored photograph or an electronically produced image of the applicant; (3) the applicant's full name and date of birth; (4) either ~~(1)~~ (i) the licensee's residence address, or ~~(2)~~ (ii) the designated address under section 5B.05; (5) a description of the applicant in the manner as the commissioner deems necessary; ~~and~~ (6) the usual signature of the applicant; and (7) designations and markings provided under this section.

(b) If the United States Postal Service will not deliver mail to the applicant's residence address as listed on the Minnesota identification card, then the applicant shall provide verification from the United States Postal Service that mail will not be delivered to the applicant's residence address and that mail will be delivered to a specified alternate mailing address. When an applicant provides an alternate mailing address under this subdivision, the commissioner shall use the alternate mailing address in lieu of the applicant's residence address for all notices and mailings to the applicant.

(c) Each identification card issued to an applicant under the age of 21 must be of a distinguishing color and plainly marked "Under-21."

(d) Each Minnesota identification card must be plainly marked "Minnesota identification card - not a driver's license."

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(e) Except for an enhanced identification card or a noncompliant identification card, a Minnesota identification card must bear a distinguishing indicator for compliance with requirements of the REAL ID Act.

(f) A noncompliant identification card must:

(1) be marked "not for federal identification" on the face and in the machine-readable portion; and

(2) have a unique design or color indicator.

(g) A Minnesota identification card issued to a person with temporary lawful status must be marked "temporary" on the face and in the machine-readable portion.

(h) A Minnesota identification card must display the cardholder's full name or no fewer than 39 characters of the name. Any necessary truncation must begin with the last character of the middle name and proceed through the second letter of the middle name, followed by the last character of the first name and proceeding through the second letter of the first name.

~~(e)~~ (i) The fee for a Minnesota identification card is 50 cents when issued to a person who is developmentally disabled, as defined in section 252A.02, subdivision 2; a physically disabled person, as defined in section 169.345, subdivision 2; or, a person with mental illness, as described in section 245.462, subdivision 20, paragraph (c).

Sec. 14. Minnesota Statutes 2016, section 171.07, subdivision 4, is amended to read:

Subd. 4. Identification card expiration. (a) Except as otherwise provided in this subdivision, the expiration date of a Minnesota identification ~~cards of applicants under the age of 65 shall be~~ card is the birthday of the applicant in the fourth year following the date of issuance of the card.

(b) ~~A Minnesota identification card issued to~~ For an applicant age 65 or older ~~shall be~~:

(1) the expiration date of a Minnesota identification card is the birthday of the applicant in the eighth year following the date of issuance of the card; or

(2) a noncompliant identification card is valid for the lifetime of the applicant~~, except that~~.

(c) For the purposes of ~~this~~ paragraph (b), "Minnesota identification card" does not include an enhanced identification card issued to an applicant age 65 or older.

~~(c)~~ (d) The expiration date for an Under-21 identification card is the cardholder's 21st birthday. The commissioner shall issue an identification card to a holder of an Under-21 identification card who applies for the card, pays the required fee, and presents proof of identity and age, unless the commissioner determines that the applicant is not qualified for the identification card.

(e) Notwithstanding paragraphs (a) to (d), the expiration date for an identification card issued to a person with temporary lawful status is the last day of the person's legal stay in the United States, or one year after issuance if the last day of the person's legal stay is not identified.

Sec. 15. Minnesota Statutes 2016, section 171.07, subdivision 9a, is amended to read:

Subd. 9a. Security ~~for enhanced driver's license and identification card~~ features. ~~An enhanced~~ (a) A driver's license or ~~enhanced~~ identification card must include reasonable security measures to: prevent forgery, alteration, reproduction, and counterfeiting; facilitate detection of fraud; prohibit the ability to superimpose a

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photograph or electronically produced image; and to protect against unauthorized disclosure of personal information ~~regarding residents of this state that is~~ contained in the ~~enhanced~~ driver's license or ~~enhanced~~ identification card. The ~~enhanced~~ driver's license must include the best available anticounterfeit laminate technology.

~~The~~ (b) An enhanced driver's license or enhanced identification card may include radio frequency identification technology that is limited to a randomly assigned number, which must be encrypted if agreed to by the United States Department of Homeland Security and does not include biometric data or any information other than the citizenship status of the license holder or cardholder. The commissioner shall ensure that the radio frequency identification technology is secure from unauthorized data access. An applicant must sign an acknowledgment of understanding of the radio frequency identification technology and its use for the sole purpose of verifying United States citizenship before being issued an enhanced driver's license or an enhanced identification card.

Sec. 16. Minnesota Statutes 2016, section 171.071, subdivision 3, is amended to read:

Subd. 3. ~~Exception~~ Limitations. Subdivision 1 applies only to a noncompliant license or identification card. Subdivisions 1 and 2 do not apply to the commissioner's requirements pertaining to a photograph or electronically produced image on an enhanced driver's license or an enhanced identification card.

Sec. 17. Minnesota Statutes 2016, section 171.072, is amended to read:

171.072 TRIBAL IDENTIFICATION CARD.

(a) If a Minnesota identification card is deemed an acceptable form of identification in Minnesota Statutes or Rules, a tribal identification card is also an acceptable form of identification. A tribal identification card is a primary document for purposes of Minnesota Rules, part 7410.0400, and successor rules, when an applicant applies for a noncompliant license or identification card.

(b) For purposes of this section, "tribal identification card" means an unexpired identification card issued by a Minnesota tribal government of a tribe recognized by the Bureau of Indian Affairs, United States Department of the Interior, that contains the legal name, date of birth, signature, and picture of the enrolled tribal member.

(c) The tribal identification card must contain security features that make it as impervious to alteration as is reasonably practicable in its design and quality of material and technology. The security features must use materials that are not readily available to the general public. The tribal identification card must not be susceptible to reproduction by photocopying or simulation and must be highly resistant to data or photograph substitution and other tampering.

(d) The requirements of this section do not apply to: (1) except as provided in paragraph (a), to an application for a driver's license or Minnesota identification card under this chapter; or (2) to tribal identification cards used to prove an individual's residence for purposes of section 201.061, subdivision 3.

Sec. 18. Minnesota Statutes 2016, section 171.12, is amended by adding a subdivision to read:

Subd. 1a. Driver and vehicle services information system; security and auditing. (a) The commissioner must establish written procedures to ensure that only individuals authorized by law may enter, update, or access not public data collected, created, or maintained by the driver and vehicle services information system. An authorized individual's ability to enter, update, or access data in the system must correspond to the official duties or training level of the individual and to the statutory authorization granting access for that purpose. All queries and responses, and all actions in which data are entered, updated, accessed, shared, or disseminated, must be recorded in a data audit trail. Data contained in the audit trail are public to the extent the data are not otherwise classified by law.

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(b) The commissioner must immediately and permanently revoke the authorization of any individual who willfully entered, updated, accessed, shared, or disseminated data in violation of state or federal law. If an individual willfully gained access to data without authorization by law, the commissioner must forward the matter to the county attorney for prosecution.

(c) The commissioner must arrange for an independent biennial audit of the driver and vehicle services information system to determine whether data currently in the system are classified correctly, how the data are used, and to verify compliance with this subdivision. The results of the audit are public. No later than 30 days following completion of the audit, the commissioner must provide a report summarizing the audit results to the commissioner of administration; the chairs and ranking minority members of the committees of the house of representatives and the senate with jurisdiction over transportation policy and finance, public safety, and data practices; and the Legislative Commission on Data Practices and Personal Data Privacy. The report must be submitted as required under Minnesota Statutes, section 3.195, except that printed copies are not required.

EFFECTIVE DATE. This section is effective on the date of implementation of the driver's license portion of the Minnesota licensing and registration system. The commissioner shall notify the revisor of statutes on the date of implementation.

Sec. 19. Minnesota Statutes 2016, section 171.12, is amended by adding a subdivision to read:

Subd. 3c. Record retention; birth certificates. (a) If the procedures established by the commissioner for driver's license or Minnesota identification card records include retention of a physical copy or digital image of a birth certificate, the commissioner must:

(1) notify a driver's license or identification card applicant of the retention procedure; and

(2) allow the applicant, licensee, or identification card holder to designate that the applicant, licensee, or identification card holder's birth certificate physical copy or digital image must not be retained.

(b) The commissioner must not retain a birth certificate if directed by an applicant, licensee, or identification card holder under paragraph (a), clause (2), but must record and retain data on the birth certificate required under Code of Federal Regulations, title 6, section 37.31(c).

Sec. 20. Minnesota Statutes 2016, section 171.12, is amended by adding a subdivision to read:

Subd. 7b. Data privacy; noncompliant license or identification card. (a) The commissioner is prohibited from, with respect to noncompliant licenses or identification cards:

(1) electronically disseminating outside the state data that is not disseminated as of the effective date of this act;

(2) utilizing any electronic validation or verification system accessible from or maintained outside of the state that is not in use as of the effective date of this act; or

(3) sharing any data the department maintains under section 171.07, subdivision 13.

(b) The limitations in paragraph (a) do not apply to the extent necessary to maintain compliance with the driver's license compact under section 171.50 and applicable federal law governing commercial driver's licenses.

(c) For purposes of this subdivision, "outside the state" includes federal agencies, states other than Minnesota, organizations operating under agreement among the states, and private entities.

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Sec. 21. Minnesota Statutes 2016, section 171.27, is amended to read:

171.27 EXPIRATION OF LICENSE; MILITARY EXCEPTION.

(a) Except as otherwise provided in this section, the expiration date for each driver's license~~, other than under-21 licenses,~~ is the birthday of the driver in the fourth year following the date of issuance of the license. The birthday of the driver shall be as indicated on the application for a driver's license. A license may be renewed on or before expiration or within one year after expiration upon application, payment of the required fee, and passing the examination required of all drivers for renewal. Driving privileges shall be extended or renewed on or preceding the expiration date of an existing driver's license unless the commissioner believes that the licensee is no longer qualified as a driver.

(b) The expiration date for each under-21 license shall be the 21st birthday of the licensee. Upon the licensee attaining the age of 21 and upon the application, payment of the required fee, and passing the examination required of all drivers for renewal, a driver's license shall be issued unless the commissioner determines that the licensee is no longer qualified as a driver.

(c) The expiration date for each provisional license is two years after the date of application for the provisional license.

(d) Notwithstanding paragraphs (a) to (c), the expiration date for a license issued to a person with temporary lawful status is the last day of the person's legal stay in the United States, or one year after issuance if the last day of the person's legal stay is not identified.

~~(d)~~ (e) Any valid Minnesota driver's license issued to a person then or subsequently serving outside Minnesota in active military service, as defined in section 190.05, subdivision 5, in any branch or unit of the armed forces of the United States, or the person's spouse, shall continue in full force and effect without requirement for renewal until the date one year following the service member's separation or discharge from active military service, and until the license holder's birthday in the fourth full year following the person's most recent license renewal or, in the case of a provisional license, until the person's birthday in the third full year following the renewal.

Sec. 22. REAL ID ACT IMPLEMENTATION.

Subdivision 1. Definition. For purposes of this section, "REAL ID Act" means the REAL ID Act of 2005, Public Law 109-13, Division B.

Subd. 2. Implementation; deadline. The commissioner of public safety must begin issuing driver's licenses and Minnesota identification cards that fully comply with the REAL ID Act no later than October 1, 2018. The commissioner shall submit a notification of the specific full compliance implementation date to: the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance, public safety, and data practices; the revisor of statutes; and the Legislative Commission on Data Practices and Personal Data Privacy.

Subd. 3. Mandatory reissuance prohibition. When implementing the REAL ID Act requirements as provided in this act, the commissioner of public safety is prohibited from requiring renewal or reissuance of a driver's license or Minnesota identification card earlier than required under the regular issuance time period. Nothing in this subdivision prevents suspension, cancellation, or revocation as provided in Minnesota Statutes, chapter 171.

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Subd. 4. Optional early reissuance; fee exemption. (a) For purposes of this subdivision, "full compliance date" means the date when full compliance with the REAL ID Act is required and no extensions are in effect for federal acceptance of Minnesota-issued licenses and identification cards for official purposes, as most recently specified by the United States Department of Homeland Security under Code of Federal Regulations, title 6, part 37.

(b) The commissioner of public safety and driver's license agents are prohibited from imposing fees or surcharges, as specified in paragraph (c), to issue a REAL ID-compliant driver's license or identification card for an applicant who:

(1) holds a valid Minnesota driver's license or Minnesota identification card that:

(i) was issued prior to the date Minnesota commenced issuing REAL ID-compliant licenses and Minnesota identification cards; and

(ii) either (A) has an expiration date that is on or after the full compliance date; or (B) does not have an expiration date as provided under Minnesota Statutes, section 171.07, subdivision 4;

(2) submits the license or identification card application no later than one year following the full compliance date; and

(3) is otherwise eligible to obtain the license or identification card under Minnesota Statutes, chapter 171.

(c) For the purposes of licenses and identification cards issued under this subdivision, the commissioner of public safety and driver's license agents are prohibited from imposing the fees and surcharges under: Minnesota Statutes, sections 171.06, subdivision 2; 171.061, subdivision 4; and 171.07, subdivisions 3 and 3a. Endorsement fees and fees for optional services, including expedited service fees under Minnesota Statutes, sections 171.06, subdivisions 2, paragraph (c), and 2a; 171.07, subdivision 11; and 171.13, continue to apply for applications as appropriate.

(d) The fee exemption requirements under this subdivision do not apply to:

(1) issuance of a new driver's license or Minnesota identification card;

(2) issuance or renewal of an enhanced driver's license or enhanced identification card; and

(3) reinstatement of a canceled, suspended, or revoked license.

Sec. 23. REVISOR'S INSTRUCTION.

The revisor of statutes shall renumber Minnesota Statutes, section 171.06, subdivision 3, paragraphs (d) and (e), as Minnesota Statutes, section 171.06, subdivision 3b, paragraphs (d) and (e). The revisor shall also make any necessary cross-reference changes consistent with the renumbering.

Sec. 24. REPEALER.

Laws 2009, chapter 92, section 1, as amended by Laws 2016, chapter 83, section 1, is repealed.

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Sec. 25. EFFECTIVE DATE.

Except as specifically provided otherwise, this act is effective the day following final enactment. Sections 1 to 22 apply for application and issuance of driver's licenses and Minnesota identification cards on and after the full compliance implementation date under section 22, subdivision 2."

A roll call was requested and properly seconded.

The question was taken on the Mariani amendment and the roll was called. There were 57 yeas and 74 nays as follows:

Those who voted in the affirmative were: