2013 Law Summaries (pdf) - League of Minnesota Cities

LEAGUE OF MINNESOTA CITIES
2013
Law
Summaries
Final Legislative Action
MINNESOTA SESSION LAWS 2013

Contents
Session 2013.....................................................................................1
LMC 2013 Law Summaries..............................................................3
BONDING......................................................................................4
Omnibus bonding bill...................................................................4
CIVIL AND CRIMINAL LAW.....................................................4
Redefining “service animal” under the Minnesota
Human Rights Act.....................................................................4
Modifications to the False Claims Act............................................4
Criminal conduct related to emergency calls modified...................4
Contribution actions related to construction lawsuits limited.........5
Crime victim provisions modified.................................................5
Domestic abuse provisions modified..............................................6
Service of process in contested case review....................................7
Money used to facilitate prostitution or sex trafficking
forfeiture provided.....................................................................7
Restrictions on indemnification agreements in
construction contracts................................................................7
Expanding the limitations period for civil actions
involving sexual abuse................................................................7
Prohibiting exclusion from jury service.........................................7
Restrictions on enforceability of liability waivers...........................8
Underage possession or consumption immunity provided
for a person seeking assistance for another..................................8
Transit operator assault criminal penalties prescribed......................8
Increased penalties for wildfire arson provided...............................8
COMMERCE.................................................................................8
Department of Commerce technical bill........................................8
Bullion coin dealers regulated........................................................8
Scrap metal processing regulations modifications
and criminal penalties establishment...........................................9
DATA PRACTICES.....................................................................13
Safe At Home Program...............................................................13
Omnibus data practices bill..........................................................13
ECONOMIC DEVELOPMENT................................................14
Additional security for development authority loans authorized....14
Jobs, economic development, housing, commerce
and energy omnibus budget bill...............................................14
ELECTIONS.................................................................................16
Omnibus elections policy bill......................................................16
EMERGENCY MEDICAL SERVICES.....................................19
Emergency medical responders requirements modified................19
Continuing education requirements for community
paramedics modified................................................................19
EMPLOYMENT...........................................................................19
Workers’ Compensation Reinsurance Association
requirements modified.............................................................19
Prompt payment of wages modified.............................................19
Limits on reliance on criminal history for employment
purposes expanded...................................................................20
Workers’ compensation modifications provided...........................20
Gender-neutral marriage authorized............................................22
State labor contracts ratified.........................................................22
Employee sick leave benefit use expanded...................................23
UNEMPLOYMENT INSURANCE...........................................23
2013 Law Summaries
Unemployment insurance provisions in the omnibus
jobs and economic development bill.........................................23
ENVIRONMENT........................................................................23
Technical and consensus drainage law changes made....................23
Metro water group sunset extended.............................................24
180-day process for adopting organized collection
replaced with 60-day negotiation period .................................24
Environment trust fund projects..................................................24
Omnibus lands bill......................................................................24
Wastewater and stormwater funding program
restrictions reduced .................................................................25
Omnibus environmental budget bill............................................25
Legacy spending bill gets controversial, earns first veto of session.... 27
GENERAL GOVERNMENT.....................................................29
Alternative publication of bids for projects funded
by special assessment................................................................29
Met council cost allocation deferred payments permitted ............29
Omnibus state government finance and veterans affairs bill..........29
HEALTH.......................................................................................30
Updating terminology related to persons with disabilities............30
Minnesota Insurance Marketplace Act (MNsure).........................30
HOUSING....................................................................................31
Concentration limits of community-based homes (group homes)... 31
Contract for deed provision in the omnibus economic
development budget bill...........................................................31
Dual tracking in foreclosure prohibited........................................31
Housing funding and policy provisions in the omnibus
economic development budget bill...........................................31
Housing Improvement Areas extension........................................32
Housing infrastructure bonds provisions in the omnibus
economic development budget bill...........................................32
Mortgage foreclosure consultant and originator clarifications .....32
Partial release of mortgage lien....................................................32
Rental eviction appeal timeline and rent escrow changes.............32
LAND USE AND GROWTH MANAGEMENT....................33
Land use provisions in the omnibus jobs bill................................33
LIQUOR.......................................................................................33
Omnibus liquor bill.....................................................................33
LOCAL LAWS..............................................................................34
Officer Tom Decker Memorial Highway Designated...................34
Authority to negotiate certain agreements expanded
to Hennepin County...............................................................34
Local power line planning requirements .....................................34
Local law provisions in the omnibus economic development budget
bill.....................................................................................34
Local provisions in omnibus transportation policy act..................35
Special freight distribution authorized for
west central Minnesota.............................................................35
Disaster aid provided to southwest Minnesota..............................36
MISCELLANEOUS...................................................................36
Campaign finance modifications..................................................36
Determining legislator salary.......................................................36
Geospatial data sharing with government entities.........................36
Hospital reports required.............................................................36

Contents
Lawful gambling modifications....................................................37
Metropolitan Council redistricting..............................................37
MN.IT Services..........................................................................37
Motor vehicle fuel payment........................................................38
PENSIONS AND RETIREMENT.........................................38
Pension plan officers required to report certain unlawful acts.......38
Omnibus pensions act.................................................................38
Fire and police department aid threshold for financial
reports and audits modified......................................................40
PUBLIC SAFETY.....................................................................41
Omnibus public safety finance act...............................................41
Hazardous substance release report required to local
911 emergency dispatch center.................................................44
Public safety provisions in the omnibus transportation
finance act...............................................................................45
ATV use statutes related to ditches and rights-of-way revised.......46
Statewide Radio Board...............................................................46
TAXES.......................................................................................47
Omnibus tax bill ........................................................................47
TELECOMMUNICATIONS....................................................67
Broadband provisions included in omnibus jobs, economic
development, housing, commerce, and energy law....................67
TRANSPORTATION...............................................................68
I-35W bridge remnant steel disposition provided for...................68
Omnibus transportation finance act.............................................68
Special freight distribution authorized for
west central Minnesota.............................................................72
Omnibus transportation policy act...............................................72
UTILTIES..................................................................................74
Energy provisions in omnibus jobs act.........................................74
BILLS VETOED BY THE GOVERNOR...............................................76
VETOED: ENVIRONMENT.....................................................76
Legacy spending bill....................................................................76
BILLS THAT DID NOT BECOME LAW (DNBL)................................76
DNBL-AID TO CITIES..............................................................76
Governor’s proposed changes to local government aid program.....76
DNBL-BONDING.......................................................................76
House bonding bill.....................................................................76
“Buy American” steel..................................................................76
DNBL-BUILDLING CODES.....................................................76
Residential sprinklers..................................................................76
DNBL-DATA PRACTICES........................................................76
Classification of license plate reader data......................................76
Unauthorized data access security policies and penalties...............77
Creating an exception to the Open Meeting Law
for social media........................................................................77
DNBL-ECONOMIC DEVELOPMENT...................................77
Jobs bill extension.......................................................................77
DNBL-ELECTIONS....................................................................77
Early voting................................................................................77
Ranked-choice voting.................................................................77
Felon voting .............................................................................77
June primary...............................................................................77
DNBL-EMPLOYMENT LAW....................................................78
Statewide teacher health insurance pool.......................................78
Minimum wage...........................................................................78
Pregnancy leave...........................................................................78
Prompt payment of wages...........................................................78
Overtime hour threshold.............................................................78
DNBL-ENVIRONMENT............................................................78
Water appropriation fee increase..................................................78
Silica sand mining.......................................................................79
Silica sand mining.......................................................................79
State shoreland rules....................................................................79
Legislative water commission.......................................................79
DNBL-LAND USE AND GROWTH MANAGEMENT.........79
Annexation.................................................................................79
Partial discharge of easements......................................................79
DNBL-PENSIONS AND RETIREMENT................................80
Increase in police and fire pension aid.........................................80
DNBL-PUBLIC FINANCE........................................................80
Municipal bond interest exemption repeal...................................80
DNBL-PUBLIC SAFETY...........................................................80
Photo-cop...................................................................................80
DNBL-TAXES.............................................................................80
Nonprofits exempted from city fees and service charges...............80
Levy authority to Southeast Minnesota Multicounty
Housing and Redevelopment Authority ..................................80
Labor peace agreement................................................................80
Sales tax base broadening to clothing...........................................81
Homeowner property tax refund.................................................81
Gov. Dayton’s tax recommendations............................................81
Tax hearing and notification law changes....................................81
Tax hearing and notification law changes....................................81
Local Sales Tax Bills.....................................................................81
DNBL-TELECOMMUNICATIONS..........................................81
Telecommunications regulation changes......................................81
DNBL-TRANSPORTATION.....................................................82
Municipal street improvement district authority..........................82
Gas tax increase...........................................................................82
Sales tax on gasoline....................................................................82
Mini-trucks.................................................................................82
Appendix A: How to Estimate Your City’s 2014 Levy Limit.......83
Appendix B: City 2014 LGA Estimates.........................................85
League of Minnesota Cities Intergovernmental Relations
Department..................................................................................95
League of Minnesota Cities

Session 2013
Fiscal Outlook Improves for State, Cities
The 88 th session of the Minnesota Legislature began on
Tuesday, Jan. 8 with new House and Senate majorities, 20
first-term senators, 36 first-term representatives, and the
task of crafting a biennial state budget and addressing a
projected $1.1 billion deficit for the FY 2014-15 biennium
based on the November 2012 state budget forecast.
With the House, Senate, and governor’s office controlled
by the Democrats, some speculated that the budgetsetting
task would be simplified and streamlined. The task
was made a bit easier when Minnesota Management and
Budget released the semi-annual state budget forecast in
late February, which reported a smaller state budget deficit
of $627 million. In early May as the Legislature approached
the final weeks, the budget remained far from complete as
leaders in the House and Senate tussled with Gov. Dayton
on the final details of the state budget.
In the last days of the session, the House, Senate, and
governor reached agreement on the details of the budget
and the last bill was passed at midnight on May 20, the day
prescribed in the state Constitution for adjournment.
Legislative agenda
One indication of the priorities of the Legislature is the
content of the first bill introductions. This year, the first
introductions included bills to restore the school district
aid payment shift, modify and increase the property tax
refund system, appropriate funds for the Minnesota investment
fund, modify the Minnesota Trade Office, establish
the Minnesota Insurance Marketplace, fund all-day kindergarten,
and increase the minimum wage.
In addition, the League was working with legislators
to introduce legislation reflecting city policies. Among
the League initiatives was a bill that would allow cities
to implement street improvement districts. Another
would authorize cities to impose organized solid waste
collection policies. A third would designate as nonpublic
citizen email addresses collected for the purpose of
providing alerts and other information to residents. These
are just a few examples of bills proposed by the League
on behalf of cities.
Governor’s budget
On Jan. 22, Gov. Dayton released his budget recommendations,
which, as expected, included a fourth-tier income tax.
But perhaps the biggest surprise was the governor’s proposed
expansion of the sales tax to a broad array of services.
The sales tax expansion took many city officials by
surprise. Due to the fact that cities are significant consum-
ers of many professional services, such as legal, accounting,
and engineering services, and due to the fact that cities are
required under law to pay the state sales tax on purchases
of those services, the governor’s sales tax base expansion
would have had a large impact on city budgets.
In addition to the sales tax base expansion, Gov.
Dayton proposed a new local government aid (LGA)
formula and a restoration of $80 million of the funding
reductions that have occurred over the past decade. The
governor’s proposal was guided by a group of 15 mayors
from across the state, including co-chairs R.T. Rybak,
City of Minneapolis, and Dave Kleis, City of St. Cloud.
The governor’s LGA reform panel also included mayors
Bruce Ahlgren, Cloquet; Dave Bartholomay, Circle Pines;
Beth Baumann, South St. Paul; ReNae Bowman, Crystal;
Ardell Brede, Rochester; Chris Coleman, St. Paul; Debbie
Goettel, Richfield; Don Ness, Duluth; Joyce Nyhus,
Buffalo Lake; Alan Oberloh, Worthington; Marlene
Pospeck, Hoyt Lakes; Mary Rossing, Northfield; and Dave
Smiglewski, Granite Falls.
Although many legislators supported the governor’s
recommended LGA appropriation increase and acknowledged
the need to update and reform the one-year-old
LGA formula, his LGA proposal did not immediately catch
fire. Rep. Jim Davnie (DFL-Minneapolis), who was the
new chair of the House Property and Local Tax Division,
realized that the governor’s proposal was an important first
step but the plan needed refinements to gain broader support.
Davnie convened a group of tax committee legislators
and city representatives to discuss whether common
ground on LGA reform could be found.
After roughly six weeks of regular early morning
meetings, the Davnie group, which included representatives
of Metro Cities, the Coalition of Greater Minnesota Cities,
and the League of Minnesota Cities focused in on an
LGA system proposal that used updated data and recomputed
statistics to allocate LGA funds. The proposal was
drafted into legislation and introduced by Rep. Ben Lien
(DFL-Moorhead) and Sen. Roger Reinert (DFL-Duluth).
That bill was largely included in the final omnibus tax bill
which is now Chapter 143.
As legislative hearings on the governor’s budget plan
began to occur, the League approached several legislators
who were former local government officials and asked if
they would introduce legislation to exempt cities from the
sales tax. During the first month of the session, Reps. Peter
Fischer (DFL-Maplewood), Nick Zerwas (R-Elk River),
and Paul Anderson (R-Starbuck) along with Sens. Chuck
2013 Law Summaries Page 1

Wiger (DFL-Maplewood), Dave Senjem (R-Rochester),
and Ann Rest (DFL-New Hope) all introduced bills.
Although the House did not include the exemption in
its version of the omnibus tax bill, the Senate Tax Reform
Division, chaired by Sen. Ann Rest, chose to include the
provision in its division report, which was subsequently
included in the Senate version of the omnibus tax bill.
During the conference committee negotiations, Sens. Rest
and Skoe pushed to include the exemption in the final
conference committee report. On May 23, the exemption
was signed into law by the governor as a part of the omnibus
tax bill, Chapter 143.
Many of the Legislature’s priorities would eventually
find their way to the governor’s desk. In all, the Legislature
would send the governor 144 chapters of new law, including
nine omnibus bills that would form the backbone of
the state’s biennial budget.
Neither a comprehensive transportation funding package,
nor a substantial capital investment bill is among the
144 chapters. Despite efforts on the part of transportation
committee chairs and advocates that stretched into
the final days of session, the Legislature and governor
failed to agree on a comprehensive transportation funding
increase; and, although the counties secured passage of
expanded wheelage tax authority and local option sales tax
for transportation authority, the Legislature did not pass the
League’s street improvement district initiative. The Legislature
and governor also ended the session without passing a
substantial bonding bill, which may result in demands for
a larger than normal bonding bill in 2014. The slim capital
investment bill that passed authorizes approximately
$176 million in capital projects, $109 million of which will
be used to help restore the state Capitol building. (Note:
Additional initiatives that did not become law are summarized
in the Did Not Become Law section of the 2013
Law Summaries.)
Other outcomes
In addition to the budget bills, dozens of smaller but significant
bills also made it to the finish line. The following is
a sampling of bills the governor has signed into law:
• Authority for cities to impose organized solid waste
policies.
• A pension bill that will attempt to stabilize the Public
Employees Retirement Association Police and Fire Plan.
• Classification of citizen emails collected by cities as
“non-public.”
• Expansion of sick leave and workers’ compensation benefits
for employees.
The future
With the conclusion of the 2013 session, the biennial
budget for the state is set until the next odd-year session.
The 2014 session will convene Tuesday, Feb. 25, 2014.
Bills introduced in 2013 that have not been acted upon
remain alive for consideration. The even year session typically
yields a small supplemental budget to compensate
for discrepancies between the budget forecast and actual
revenues, and for unexpected expenses. It also is likely to
produce a bonding bill which, in 2014, may be larger than
in recent even year sessions due to the fact the 2013 bonding
bill did not contain a number of popular projects. Gov.
Dayton and all members of the House of Representatives
will conclude their current terms in 2014, so those seeking
re-election will be eager to finish the session on time and
with victories in hand.
Page 2
League of Minnesota Cities

LMC 2013 Law Summaries
The League of Minnesota Cities (LMC) annually prepares this summary of new laws that impact
city operations. This document is intended to highlight relevant new laws, but is not intended to be
comprehensive legal advice. Each law summary includes a reference to the session chapter and bill numbers.
The number of the bill that was approved by the Legislature and sent to the governor is denoted with
an asterisk. The chapter number can be used to locate the actual text of new laws on the state Revisor of
Statutes website: www.revisor.leg.state.mn.us/laws.
We have also attempted to provide effective dates for each new law; however, occasionally the legislation
may not specify an effective date. If no effective date is provided, Minn. Stat. § 645.02 specifies that each act
(except one making appropriations) enacted finally at any session of the Legislature takes effect on Aug. 1,
unless a different date is specified in the act. An act making appropriations enacted finally at any session of the
Legislature takes effect on July 1, unless a different date is specified in the act. Each act takes effect at 12:01
a.m. on the day it becomes effective, unless a different time is specified in the act.
Special laws affecting individual cities must generally be approved by the city. The law then becomes
effective the day after the certificate of approval is filed with the secretary of state (as specified by Minn.
Stat. § 645.021), unless a different date is specified in the act. When approval of such a special law is required
by two or more local government units, the law becomes effective the day after the last of the required
certificates is filed, unless a different date is specified in the act. If you have questions about a new law,
an effective date, or the legislative process, contact a member of the LMC Intergovernmental Relations
Department. Contact information for each staff member is provided here.
The initials of League staff who
work on legislative issues are
printed following each summary.
For more information, please refer
to the list on the right for contact
information.
An asterisk (*) next to a bill
number denotes the version of
the bill that was approved by
the Legislature and sent to the
governor.
GC=Gary Carlson, Intergovernmental Relations Director
(651) 281-1255 or gcarlson@lmc.org
HC=Heather Cederholm, Intergovernmental Relations Liaison
(651) 281-1256 or hcederholm@lmc.org
AF=Anne Finn, Assistant Intergovernmental Relations Director
(651) 281-1263 or afinn@lmc.org
PH=Patrick Hynes, Intergovernmental Relations Representative
(651) 281-1260 or phynes@lmc.org
CJ=Craig Johnson, Intergovernmental Relations Representative
(651) 281-1259 or cjohnson@lmc.org
AL=Ann Lindstrom, Intergovernmental Relations Representative
(651) 281-1261 or alindstrom@lmc.org
LZ=Laura Ziegler, Intergovernmental Relations Liaison
(651) 281-1267 or lziegler@lmc.org
2013 Law Summaries Page 3

Page 4
BONDING
Omnibus bonding bill
Chapter 136 (HF 1070*/SF 960) is the omnibus bonding
bill, which authorizes approximately $176 million in
capital improvement projects. The scope of the bonding
bill was agreed upon in the waning hours of the legislative
session and there are only five projects and programs
funded—the most notable being the Capitol renovation
and restoration. Below is a list of the projects funded:
• $109 million for the Capitol renovation and restoration
project.
• $22.6 million for the construction of a Capitol complex
parking facility.
• $20 million to the Department of Natural Resources
for the state share of flood hazard mitigation grants to
identified cities, counties, and townships for approved
projects.
• $18.9 million for the Minneapolis Veterans Home restoration
and repair.
• $8 million to the Public Facilities Authority to match
$40 million in federal clean water and drinking water
revolving loan fund.
The bonding bill also reauthorized previously authorized
bonds and expanded the allowable use of previously
authorized bonds. Below is a list of notable projects:
• Fergus Falls Regional Treatment Center. Section
11 expands the use of a previously authorized bond
for the treatment center to include hazardous materials
abatement and improvements to basic infrastructure, and
extends the availability of the bonds through 2016.
• Old Cedar Avenue Bridge, Bloomington. Section
12 expands the use of a $300,000 grant to the City of
Bloomington to include the renovation, restoration, or
replacement of the Old Cedar Avenue Bridge for bicycle
and recreational users. The section also extends the availability
of the previously issued bonds through 2017.
Effective May 25, 2013. (PH)
CIVIL AND CRIMINAL LAW
Redefining “service animal” under the Minnesota
Human Rights Act
Chapter 14 (HF 1181/SF 1086*) amends Minn. Stat. §
363A.19 by redefining “service animal” in the Minnesota
Human Rights Act. The definition will now be the same as
the term defined by the federal Americans with Disabilities
Act, as amended. Effective Aug. 1, 2013. (PH)
Modifications to the False Claims Act
Chapter 16 (HF290*/SF 281) makes changes to the Minnesota
False Claims Act (Minn. Stat. Ch. 15C), as directed
by the federal government, to make the Minnesota law
conform to the federal False Claims Act. Currently, Minnesota
and the federal government evenly split the proceeds
of recoveries under federal or state false claim
actions. Conformity with the federal act entitles Minnesota
to recover an additional 10 percent of any future recovery.
• Definitions modified. Section 1 expands the definition
of “claim,” and adds the defined terms of “material”
and “obligation” to the Minn. Stat. § 15C.01. Section 1
also redefines the term “original source” to match federal
law.
• Liability for certain actions. Section 2 removes the
current requirement that the alleged false claim be presented
to the state or subdivision; expands the definition
of intent to match federal law; and deletes a limitation
on employer’s liability for certain acts of non-managerial
employees.
• Private remedies. Section 3 amends Minn. Stat. §
15C.05 to: remove the provision stating that private
remedies must be limited to money, property, or services;
state that actions cannot be maintained if based upon
information known to the government when the action
was brought; and require dismissal of an action (with an
opportunity for objection by the prosecuting attorney) if
based on allegations that were publicly disclosed, unless
brought by the original source of information or the
prosecuting attorney.
• Intervention by prosecuting attorney. Section 4
amends Minn. Stat. § 15C.08 to allow an intervening
prosecuting attorney to amend or replace a complaint
brought by a private party and to add additional
claims. Any such pleading relates back to the filing of the
private-party complaint for purposes of the statute of
limitations.
• Attorney fees and expenses. Sections 5 and 6 make
the award of attorney fees and expenses mandatory if
the person bringing the claim prevails, and clarifies how
awards are distributed to whistleblowers if a prosecuting
attorney intervenes in a claim.
• Whistleblower protection. Section 7 and 8 repeals
the whistleblower provision in Minn. Stat. § 15C.14 and
replaces it with Minn. Stat. § 15C.145, providing protection
from retaliatory action, including reinstatement
at same seniority, double back pay, interest, and special
damages, including attorney fees and court costs. Section
7 establishes a three-year statute of limitations for such
claims.
Effective Aug. 1, 2013. (PH)
Criminal conduct related to emergency calls modified
Chapter 20 (HF 1043/*SF 1168) amends Minn. Stat. §
609.78 by expanding the list of acts that constitute criminal
conduct related to emergency telephone calls. It also
League of Minnesota Cities

creates new misdemeanor, gross misdemeanor, and felony
level offenses under the statute and redefines a term.
• Misdemeanor offense provided. Minn. Stat. §
609.78, subd. 1 is amended to make it a misdemeanor
to make or initiate an emergency call, knowing that no
emergency exists, and with the intent to disrupt, interfere
with, or reduce the provision of emergency services
or the emergency call center’s resources, remain silent, or
make abusive or harassing statements to the call recipient.
• Gross misdemeanor offense provided. Minn. Stat.
§ 609.78, subd. 2 is amended to make it a gross misdemeanor
offense to: unlawfully place an emergency call
and report a fictitious emergency with the intent of
prompting an emergency response; and to violate the
new offense established in subdivision 1 for a second
time.
• Felony offense provided. Minn. Stat. § 609.78, subd.
2a is amended to make it a felony offense to report a fictitious
emergency that results in serious injury. A person
who violates the prohibition on fictitious calls established
in subdivision 2 and the call triggers an emergency
response that results in someone suffering great
bodily harm or death is guilty of a 10-year felony.
• Other felony offense provided. Minn. Stat. § 609.78,
subd. 2b is amended to make it a five-year offense to
violate subdivision 1 for a third or subsequent time, and
to block, interfere with, overload, or otherwise prevent
the emergency call center’s system from functioning
properly, and these actions make the system unavailable
to someone needing assistance.
• “Emergency call” definition expanded. Minn.
Stat. § 609.78, subd. 3 defines “emergency call.” It is
expanded to include the use of any method of communication
including, but not limited to: telephones,
facsimiles, voice-over-Internet protocols, email messages,
text messages, and electronic transmissions of an image
or video.
Effective Aug. 1, 2013. (AF)
Contribution actions related to construction lawsuits
limited
Chapter 21 (HF 450*/SF 392) amends the statute of
limitations for lawsuits based on improvements to real
property (Minn. Stat. § 541.051). The new law imposes
a 14-year statute of repose on contribution and indemnity
claims, which currently must be brought no later
than two years after the contribution or indemnity action
accrued. In some circumstances, under the current statute
of limitations and repose, a construction defect claim
can be brought nearly 12 years after substantial completion
of a project, and a contribution and indemnity claim
can potentially accrue after trial or appeal, leaving open
questions of liability for many years. The change was made
at the request of engineers and architects, who are often
subject to contribution and indemnity claims on construction
projects. Effective Aug. 1, 2013, and applies to actions commenced
on or after that date. (PH)
Crime victim provisions modified
Chapter 34 (HF 1501/SF 769*) amends various crime victim
provisions. It classifies as private data identifying information
of a victim or other person requesting notification
regarding a defendant’s release from custody. It expands
protections for crime victims against employer retaliation.
Finally, it updates terminology and creates a working group
to study restitution.
• Release of arrested, detained or confined person
notice modified. Section 1 creates Minn. Stat. §
13.854. It provides that for requests for notification of
change in custody status of an arrested, detained, or confined
person from the Department of Corrections or
other custodial authority made through an automated
electronic notification system, all identifying information
regarding the person requesting notification, and that the
notice was requested and provided to that person by the
automated system is classified as private data on individuals
as defined in section 13.02, subd. 12, and is accessible
only to that person.
• Victim data classified. Section 2 adds a provision to
Minn. Stat. § 13.871, subd. 5. It provides that data on
victims requesting a notice of release of an arrested or
detained person are classified under Minn. Stat. § 629.72
(pertaining to bail, domestic abuse, harassment, violation
of order for protection or no contact order) and Minn.
Stat. § 629.73 (pertaining to notice to crime victims,
release of arrested or detained person).
• “Violent crime” definition modified to include
stalking. Section 3 amends Minn. Stat. § 611A.0315 by
replacing the word “harassment” with the word “stalking”
in the definition of “violent crime.”
• Stalking victims attendance at criminal proceedings
protected. Section 4 amends Minn. Stat. §
611A.036, subd. 7, by adding the crime of stalking to the
definition of “violent crime” for purposes of prohibiting
employer retaliation when an employee takes time off
work to attend criminal proceedings.
• “Stalking” replaces “harassment.” Sections 5, 6, 7
and 9 amend various provisions in Minn. Stat. § 629.72
by replacing the word “harassment” with the word
“stalking.” This section pertains to bail, domestic abuse,
harassment, violation of order for protection, and no
contact orders.
• Victim data private. Section 8 adds a provision to
Minn. Stat. § 629.72, subd. 6. It provides that data on the
victim and the notice provided by the custodial authority
are private data on individuals as defined in Minn.
Stat. § 13.02, subd. 12, and are accessible only to the victim.
2013 Law Summaries Page 5

• Technical changes and victim data classification
provided. Section 10 amends Minn. Stat. § 629.73
updates obsolete references to the Department of Corrections
and replaces them with the Office of Justice
programs in the Department of Public Safety. It also classifies
as private data on individuals all identifying information
regarding a victim, including, but not limited
to, the notice provided custodial authority regarding an
arrested person’s release.
• Working group established. Section 11 is a 2013 Session
Law that requires the Department of Public Safety
to convene a working group by Aug. 1, 2013, to study
how restitution is currently being requested, ordered,
and collected in Minnesota, to include the Department
of Corrections, city and county prosecuting agencies,
statewide crime victim coalitions, the Minnesota Judicial
Branch, county probation departments, the Minnesota
Association of Community Corrections Act counties,
and the Minnesota Board of Public Defenders. It
requires the commissioner of the Department of Public
Safety to file the report with the Legislature by an
unspecified date in January 2015.
Effective Aug. 1, 2013. (AF)
Domestic abuse provisions modified
Chapter 47 amends (HF 1400*/SF 1423) makes several
changes to violations related to orders for protection,
qualified domestic violence-related offenses, harassment
restraining orders, and domestic abuse no contact orders.
• “Knowingly” stricken from enhanced orders
for protection (OFPs) violation penalty.
Section 1 amends Minn. Stat. § 518B.01, subd. 14, by
striking the term “knowingly” from the provisions
regarding enhanced penalties for violations of OFPs.
Current law provides that a violation by a person
who knows of the order is guilty of a misdemeanor.
A misdemeanor violation is enhanced to a gross
misdemeanor or felony if it’s a repeat violation or
other circumstances apply. The enhanced penalties
require that the person know of the OFP and commit
the violation “knowingly.” These sections strike the
latter, additional requirement for enhanced penalties;
accordingly, all the penalty levels would have the same
knowledge requirement.
• Venues for OFP violations expanded. Section 2
adds a section to Minn. Stat. § 518B.01. It provides that
a person may be prosecuted under the jurisdiction of the
place where any call is made or received or, in the case
of wireless or electronic communication or any communication
made through any available technologies, where
the actor or victim resides, or in the jurisdiction of the
victim’s designated address if the victim participates in
the address confidentiality program established under
Chapter 5B.
Page 6
• “Family or household member” requirement
eliminated. Section 3 amends Minn. Stat. § 609.2242,
subd. 2. It eliminates the requirement that a misdemeanor
domestic assault may only be enhanced to a
gross misdemeanor if a previous qualified domestic
violence-related offense (QDVRO) was “against a family
or household member.” The definition of QDVRO
is in Minn. Stat. S 609.02, subd. 16, and contains crimes
that are not required to be committed against a family or
household member (e.g., murder, assault, criminal sexual
conduct crimes).
• “Knowingly” stricken from enhanced harassment
restraining orders (HROs) violation penalty. Section
4 amends Minn. Stat. § 609.748, subd. 6, by striking
the term “knowingly” from the provisions regarding
enhanced penalties for violations of HROs. Current
law provides that a violation by a person who knows of
the order is guilty of a misdemeanor. A misdemeanor
violation is enhanced to a gross misdemeanor or felony
if it’s a repeat violation or other circumstances apply.
The enhanced penalties require that the person know
of the order and commit the violation “knowingly.”
These sections strike the latter, additional requirement
for enhanced penalties; accordingly, all the penalty levels
would have the same knowledge requirement.
• “Knowingly” stricken from enhanced domestic
abuse no contact orders (DANCOs) violation
penalty. Section 5 amends Minn. Stat. § 629.75, subd,
2, by striking the term “knowingly” from the provisions
regarding enhanced penalties for violations of DANCOs.
Current law provides that a violation by a person who
knows of the order is guilty of a misdemeanor. A misdemeanor
violation is enhanced to a gross misdemeanor
or felony if it’s a repeat violation or other circumstances
apply. The enhanced penalties require that the person
know of the order and commit the violation “knowingly.”
These sections strike the latter, additional requirement
for enhanced penalties; accordingly, all the penalty
levels would have the same knowledge requirement.
• Venues for DANCO violations expanded. Section
6 adds a subdivision to Minn. Stat. § 629.75. It provides
that a person may be prosecuted at the place where any
call is made or received, or, in the case of wireless or
electronic communication or any communication made
through any available technologies, where the actor or
victim resides, or in the jurisdiction of the victim’s designated
address if the victim participates in the address
confidentiality program established under chapter 5B.
• Evidence of conduct modified. Section 7 amends
Minn. Stat. § 634.20. It strikes the term “similar” and
replaces it with “domestic.” Currently, this section provides
that evidence of “similar conduct” by the accused
against a victim of domestic abuse is admissible. Changing
the terminology would provide that conduct does
not have to be “similar” to domestic abuse—which
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involves a physical assault or threat. Instead, the term is
changed to “domestic conduct,” which is defined as evidence
of domestic abuse, violation of an OFP or HRO,
stalking, or harassing phone calls.
Effective Aug. 1, 2013. (AF)
Service of process in contested case review
Chapter 56 (HF 1120*/SF 516) amends the Administrative
Procedures Act, Minn. Stat. § 14.63. The act will now
require a party petitioning for judicial review of a contested
case to serve the petition on the Court, the state
agency, and all parties to the contested case. Effective Aug. 1,
2013, and applies to an appeal of a final decision in a contested
case rendered on or after that date. (PH)
Money used to facilitate prostitution or sex trafficking
forfeiture provided
Chapter 80 (HF 411/SF 346*) amends Minn. Stat. §
609.5312 pertaining to forfeiture of property associated
with designated offenses. In particular, it authorizes forfeiture
of money used or intended to be used to facilitate the
commission of a prostitution or sex trafficking offense.
• Money subject to forfeiture. Section 1 amends Minn.
Stat. 609.5312, subd. 1, pertaining to property forfeiture.
It adds a provision that says money used or intended to
be used to facilitate the commission of a violation of
Minn. Stat. § 609.322 or Minn. Stat. § 609.324 or a violation
of a local ordinance substantially similar, is subject
to forfeiture.
• Disposition of money provided. Sections 2, 3 and 4
amend Minn. Stat. § 609.5315 by adding a new subdivision.
It provides that money forfeited as part of a prostitution
or sex trafficking offense must be distributed as
follows:
• 40 percent must be forwarded to the appropriate agency
for deposit as a supplement to the agency’s operating
fund or similar fund for use in law enforcement;
• 20 percent must be forwarded to the prosecuting
authority that handled the forfeiture for deposit as a
supplement to its operating fund or similar fund for
prosecutorial purposes; and,
• The remaining 40 percent must be forwarded to the
commissioner of public safety to be deposited in the
safe harbor for youth account in the special revenue
fund, and are appropriated to the commissioner for
distribution to crime victims services organizations
that provide services to sexually exploited youth, as
defined in section 260C.007, subdivision 31.
Effective Aug. 1, 2013. (AF)
Restrictions on indemnification agreements in construction
contracts
Chapter 88 (HF 644/SF 561*) amends Minn. Stat. §
337.05 to prohibit provisions in construction contracts
that require a party to provide insurance coverage to one
or more parties for the negligence or intentional acts or
omissions of the other parties, including third parties. This
changes the long-standing practice in construction contracts
whereby a subcontractor indemnifies a general contractor
for the negligence of the general contractor, and
general contractors indemnify owners for the negligence
of the owner. These provisions were allowed under law
only to the extent the contract required the indemnitor
to obtain insurance. The new law contains exceptions to
allow project-specific insurance policies like Builder’s Risk
to remain enforceable. The law also allows an indemnitor
to obtain insurance coverage for the indemnitee’s vicarious
or warranty liability. Effective Aug. 1, 2013, and applies to
agreements signed or accepted on or after that date. (PH)
Expanding the limitations period for civil actions
involving sexual abuse
Chapter 89 (HF 681*/SF 534), the “Child Victims Act,”
amends Minn. Stat. § 541.073 to eliminate the statute
of limitations for certain sexual abuse claims. For claims
against the perpetrator, the following limitations periods
apply:
• If the victim was 18 years or older: six years.
• If the victim was younger than 18 years old, there is no
statute of limitations.
• If the victim was a minor and the accused perpetrator
was younger than 14 years old, then the claim must be
brought before the plaintiff is 24 years old.
Claims for vicarious liability or respondeat superior
must be commenced within six years of the alleged abuse,
or if the plaintiff was a minor, than before the plaintiff is 24
years old.
In the case of alleged sexual abuse of a minor, an otherwise
time-barred claim may be commenced against a
person, corporation, or other entity no later than three
years following the enactment date and applies to claims
pending or commenced on or after that date. The lookback
provision does not apply to claims for vicarious
liability or respondeat superior. Effective May 25, 2013, and
applies to claims that were not time-barred before the effective date,
except for claims brought under the look-back provision. (PH)
Prohibiting exclusion from jury service
Chapter 90 (HF 335*/SF 41) amends Minn. Stat. §
593.32, subd. 1 and prohibits a citizen from being excluding
from jury service on the basis of marital status and
sexual orientation. The current statute prohibits exclusion
from jury service on account of race, color, religion, sex,
national origin, economic status, or a physical or sensory
disability. Rule 809 of the Minnesota General Rules of
Practice for the District Courts already prohibits exclusion
from jury service based on marital status. Effective
Aug. 1, 2013. (PH)
2013 Law Summaries Page 7

Restrictions on enforceability of liability waivers
Chapter 118 (HF 792*/SF 768) makes unenforceable an
agreement that purports to release, limit, or waive liability
for damage, injuries, or death resulting from conduct that
constitutes greater than ordinary negligence. An unenforceable
portion of an agreement is severable from an
agreement that waives liability for damages resulting from
conduct constituting ordinary negligence or inherent risks.
The new law, Minn. Stat. § 604.055, does not apply to
claims against the municipalities or the state. The original
bill made unenforceable any liability waiver for damage
arising out of the negligent operation, maintenance, or
design of a party’s premises, and included municipal waivers.
The new law is a compromise that attempts to codify
Minnesota case law on the enforceability of indemnity
agreements. Effective Aug. 1, 2013, and applies to agreements
signed or accepted on or after that date. (PH)
Underage possession or consumption immunity
provided for a person seeking assistance for another
Chapter 112 (HF 946*/SF 744) adds a subdivision to
Minn. Stat. § 340A.503, the law pertaining to underage
possession and consumption of alcohol. It provides that if
a person contacts a 911 operator to report that the person
or another person is in need of medical assistance for an
immediate health or safety concern, the person is not subject
to prosecution under this law. The immunity applies
if the person is the first person who initiates contact. The
person must also provide a name and contact information,
remain on the scene until assistance arrives, and cooperate
with the authorities at the scene. The person who receives
medical assistance is also immune from prosecution. The
law also applies to one or two persons acting in concert
with the person initiating contact provided that all the
same requirements are met. Effective Aug. 1, 2013. (AF)
Transit operator assault criminal penalties prescribed
Chapter 133 (HF 590*/SF 1068) adds a subdivision to
Minn. Stat § 609.2231. It provides that a person is guilty of
a gross misdemeanor if the person assaults a transit operator,
or intentionally throws or otherwise transfers bodily
fluids onto a transit operator; and the transit operator is
acting in the course of the operator’s duties and is operating
a transit vehicle, aboard a transit vehicle. A person convicted
of this offense may be sentenced to imprisonment
for not more than one year or to payment of a fine of not
more than $3,000, or both. Effective Aug. 1, 2013. (AF)
Increased penalties for wildfire arson provided
Chapter 139 (HF 228*/SF 614) creates increased penalties
for wildfire arson that damages multiple buildings or dwellings,
acreage, or crops, or causes someone to suffer demonstrable
harm. In addition, it adds restitution provisions.
Page 8
• Maximum sentences provided. Section 2 adds a subdivision
to Minn. Stat. § 609.5641. It creates increased
felony penalties for wildfire arson based on certain damages.
Imposes a maximum sentence as follows:
• Where fire causes another person to suffer demonstrable
bodily harm, ten years imprisonment and/or
$15,000 fine;
• Where the fire threatens to damage or damages in
excess of five buildings or dwellings, burns 500 or
more acres, or results in over $100,000 in crop damage,
ten years imprisonment and/or $15,000 fine; and,
• Where the fire threatens to damage or damages in
excess of 100 buildings or dwellings, burns 1,500 or
more acres, or results in over $250,000 in crop damage,
20 years imprisonment and/or $25,000.
• It provides that a building or dwelling “is threatened”
when there is a probability of damage to the dwelling
requiring evacuation for safety of life.
• Restitution provided. Section 3 amends Minn. Stat. §
609.5641, subd. 3 by providing that, in addition to the
sentence otherwise authorized, the court may order a
person who is convicted of violating this section to pay
fire suppression costs and damages to the owner of the
damaged land, costs associated with injuries sustained by
a member of a municipal or volunteer fire department in
the performance of the member’s duties, and any other
restitution costs allowed under Minn. Stat. § 611A.04.
Effective Aug. 1, 2013. (AF)
COMMERCE
Department of Commerce technical bill
Chapter 135 (HF 1221*/SF 626) is the Department of
Commerce technical and housekeeping bill. While the
majority of provisions do not impact cities, the following
items may be of interest.
• Electronic service of Public Utilities Commission
(PUC) documents. Article 3, sections 18-20 amend
Minn. Stat. §§ 216.17-.18 and require that regulated
utilities provide the PUC with an electronic address
for electronic service purposes, and agree to accept
electronic service as official service. This applies to all
notices, orders, and documents sent by the PUC, as well
as documents required to be served by parties, participants,
or other interested persons.
Effective Aug. 1, 2013. (PH)
Bullion coin dealers regulated
Chapter 120 (HF 157*/SF 382) provides for regulation of
“bullion coin dealers” and “coin dealer representatives” by
the Department of Commerce. “Bullion coins” are coins
that contain more than 1 percent by weight of a precious
metal such as gold; they are sold as an investment.
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• Bullion terms defined. Section 1 creates. Minn. Stat. §
80G.01. It defines the terms “bullion coin,” “bullion coin
dealer,” “coin dealer representative,” “commissioner,”
“owner,” “person,” and “precious metal content.” A “coin
dealer representative” is an individual who represents a
bullion coin dealer in transactions with consumers.
• Registration required. Section 2 creates Minn. Stat.
§ 80G.02. It requires that bullion coin dealers and coin
dealer representatives be registered annually with the
Department of Commerce before doing business in this
state. It provides that registration starts July 1, 2014, if a
dealer has engaged annually in transactions that exceed
$5,000 in the aggregate, or once the dealer’s transactions
reach $5,000, and requires continued registration regardless
of future transaction amounts.
• Registration denial provided. Section 3 creates
Minn. Stat. § 80G.03. It provides that the Department of
Commerce may by order, suspend, revoke, or refuse to
issue or renew a registration for misrepresentation, fraud,
and other violations of the law specified in the chapter.
It permits the commissioner to take action against a bullion
coin dealer for a violation by its coin dealer representative
or directly against the representative, provided
that the coin dealer representative was acting on behalf
of the bullion coin dealer. It allows the institution of a
revocation proceeding and imposition of civil penalties
within two years after registration was last effective, and
prohibits new applications for two years after the effective
date of the revocation.
• Denial required for criminal convictions. Section
4 creates Minn. Stat. § 80G.04. It requires denial of an
application for registration if the applicant has within the
last 10 years, been convicted of a financial crime or of
any crime involving fraud or theft.
• Screening process required. Section 5 creates Minn.
Stat. § 80G.05. It requires the following:
• A bullion coin dealer must screen each of its owners,
officers, and coin dealer representatives before submitting
an initial application and at each renewal.
• The results of the screenings must be provided to the
Department of Commerce at initial registration and
each renewal, if requested by the department.
• A national criminal history record search, court judgment
search, and county criminal history search for all
counties in which the applicant has lived within the
preceding 10 years must be included.
• The bullion coin dealer must use a reputable vendor
that is authorized to do business in Minnesota and that
specializes in conducting background screenings.
• Surety bond requirement provided. Section 6 creates
Minn. Stat. § 80G.06. It requires that a bullion coin
dealer maintain a surety bond in an amount equal at least
to the total purchase and sale transactions with consumers
at retail in the preceding 12 months, but the bond
amount need not exceed $200,000. It provides that
aggrieved consumers and the Department of Commerce
or attorney general may file a claim with the surety on
the bond and may sue the surety if the claim is denied.
• Certain conduct prohibited. Section 7 creates Minn.
Stat. § 80G.07, which lists 15 things that bullion coin
dealers and coin dealer representatives are prohibited
from doing. From Aug. 1, 2013, to June 30, 2014, it only
applies to dealers with annual transactions exceeding
$5,000. On or after July 1, 2014 it applies to any dealer
required to be registered under the chapter.
• Misdemeanor crime provided. Section 8 creates
Minn. Stat. § 80G.08. It provides that it is a misdemeanor
for a bullion coin dealer or coin dealer representative to:
• Fail to register and maintain registration with the
commissioner under this act;
• Fail to deliver purchased bullion coins to a consumer
within 30 days or at the agreed-upon time; or
• Fail to pay a consumer for bullion coins sold and
delivered to a dealer or representative within 30 days
or at the agreed-upon time.
• Local authority provided. Section 9 creates Minn.
Stat. § 80G.09. It provides that nothing in this ch. 80G
prevents a lawsuit for securities fraud under ch. 80A or
preempts local authority under Minn. Stat. § 325F.742
(regulation of precious metal dealers).
• Investigations and civil enforcement provided.
Section 10 creates Minn. Stat. § 80G.10. It provides the
Department of Commerce with enforcement authority
provided in this section and Minn. Stat. § 45.027, including
imposition of civil penalties.
Effective Aug. 1, 2013. (AF)
Scrap metal processing regulations modifications
and criminal penalties establishment
Chapter 126 (HF 1214*/SF 934) amends and expands
licensing and regulatory provisions in chapters 168, 168A,
and 325E relating to scrap metal and vehicle purchases.
• “Hulk” exception eliminated. Section 1 amends
Minn. Stat. § 168.27, subd. 1a. It eliminates the “hulk”
exception for scrap metal processor licensing. This has
the effect of requiring a license for businesses engaged
in buying hulks for scrap. (A “hulk” is a vehicle that is
incapable of moving under its own power and has had
valuable used parts removed. Its sole value is its metallic
content.) Effective Aug. 1, 2013.
• Injunctive relief and civil penalties provided. Section
2 amends Minn. Stat. § 168.27, subd. 19a. It authorizes
injunctive relief and civil penalties for violations
of licensing and regulatory provisions relating to scrap
metal dealers, scrap metal processors, and salvage pools.
Effective Aug. 1, 2013.
• County and city attorney prosecuting authority
provided. Section 3 amends Minn. Stat. § 168.27, subd.
2013 Law Summaries Page 9

23. It provides that the city or county attorney is the
agency responsible for prosecuting violations relating to
licensing and regulation of vehicle dealers or scrap metal
dealers. Previous law made the Department of Motor
Vehicles responsible for filing charges. Effective Aug. 13,
2013.
• Certificate of title maintenance required. Section
4 amends Minn. Stat. § 168A.15, subd. 3 to require
a dealer who purchases a vehicle for scrap to maintain
the certificate of title for three years before destroying it.
Effective Aug. 13, 2013.
• Scrap metal processing regulated. Section 5 creates
Minn. Stat. § 168A.1501, which provides scrap metal
processing regulations.
• Definitions provided. Section 5, subd 1. provides
that “law enforcement agency” or “agency” means a
duly authorized municipal, county, state, or federal law
enforcement agency. “Scrap vehicle” means a motor
vehicle purchased primarily as scrap, for its reuse or
recycling value as raw metal, or for dismantling for
parts. “Scrap vehicle operator” or “operator” means the
following persons who engage in a transaction involving
the purchase or acquisition of a scrap vehicle: scrap
metal processors licensed under Minn. Stat. § 168.27,
subd. 1a(c); used vehicle parts dealers licensed under
Minn. Stat. § 168.27, subd. 1a(d); scrap metal dealers
under Minn. Stat. § 325E.21; and junk yards under
Minn. Stat. § 471.925. “Interchange file specification
format” means the most recent version of the Minneapolis
automated property system interchange file
specification format. Effective Aug. 1, 2013.
• Purchase or acquisition record required. Section
5, subd. 2 provides that every scrap vehicle operator
must create a permanent record written in English,
at the time of each purchase or acquisition of a scrap
vehicle. The section outlines the information required
to be kept as part of the record, which must at all reasonable
times be open to the inspection of any properly
identified law enforcement officer.
··
Exceptions. No record is required for property
purchased from manufacturers, salvage pools,
merchants operating under a contract with a scrap
vehicle operator, insurance companies, rental car
companies, financial institutions, charities, dealers
licensed under Minn. Stat. § 168.27, or wholesale
dealers. Law enforcement agencies may conduct
regular and routine inspections to ensure compliance,
refer violations to the city or county attorney
for criminal prosecution, and notify the registrar of
motor vehicles.
··
Personal information protected. An operator
may not disclose personal information concerning a
customer without the customer’s consent unless the
disclosure is required by law or made in response to
Page 10
a request from a law enforcement agency. An operator
must implement reasonable safeguards to protect
the security of the personal information, defined as
any individually identifiable information gathered in
connection with a record. Effective Aug. 1, 2013.
• Retention required. Section 5, subd. 3 requires
records to be retained by the scrap vehicle operator for
a period of three years. Effective Aug. 1, 2013.
• Payment by check or electronic transfer
required. Section 5, subd. 4. requires a scrap vehicle
operator or the operator’s agent, employee, or representative
to pay for all scrap vehicle purchases only by
check or electronic transfer. Effective Aug. 1, 2013.
• Automated property system reporting required.
Section 5, subd. 5 provides that a scrap vehicle operator
must completely and accurately provide all the
record information required by transferring it from the
operator’s computer to the automated property system,
by the close of business each day, using the interchange
file specification format. An operator who does not
have an electronic point-of-sale program may request
to be provided software by the automated property
system to record the required information. If the operator
uses a commercially available electronic pointof-sale
program to record the information required in
this section, it must submit the information using the
interchange file specification format. Any record submitted
by an operator that does not conform to the
interchange file specification format must be corrected
and resubmitted the next business day. An operator
must display a sign of sufficient size, in a conspicuous
place in the premises, which informs all patrons
that transactions are reported to law enforcement daily.
Every local law enforcement agency must participate
in the automated property system as an individual
agency or in conjunction with another agency or
agencies to provide the service. Effective Jan. 1, 2015.
• Additional reporting required. Section 5, subd. 6
provides that, in addition to the requirements under
subd. 5, an operator who is not licensed under Minn.
Stat. § 168.27 and an operator who purchases a scrap
vehicle under subd. 9 must submit information on
the purchase or acquisition of a scrap vehicle to the
National Motor Vehicle Title Information System by
the close of business the following day. Effective Aug. 1,
2013.
• Vehicle with proof of ownership; title or bill of
sale required. Section 5, subd. 7 provides that no
person shall purchase a scrap vehicle unless the seller:
(1) provides the vehicle title and lien releases, if the
vehicle is subject to any liens, or an official bill of sale
issued by a public impound lot, each listing the vehicle
identification number; (2) provides proof of identification;
and (3) signs a statement, under penalty of perjury
attesting that the motor vehicle is not stolen and
League of Minnesota Cities

is free of any liens or encumbrances and that the seller
has the right to sell the motor vehicle. Effective Aug. 1,
2013.
• Vehicle without proof of ownership; certain
older vehicles. Section 5, subd. 8. Provides a process
to allow the purchase of a scrap vehicle without proof
of ownership under certain circumstances. Effective Aug.
1, 2013.
• Vehicle without proof of ownership; vehicles for
dismantling. Section 5, subd. 9 provides a process
to allow the dismantling of vehicle without proof of
ownership under certain circumstances. Effective Aug. 1,
2013.
• Exempt purchases. Section 5, subd. 10 provides that
subd. 7, 8, and 9 do not apply when a scrap vehicle is:
(1) purchased from a manufacturer, salvage pool, merchant
operating under a contract with a scrap vehicle
operator, insurance company, rental car company,
financial institution, charity, dealer licensed under
Minn. Stat. § 168.27, or wholesale dealers, having an
established place of business, or of any goods purchased
at open sale from any bankrupt stock; or (2) an
inoperable motor vehicle with a manufacturer’s designated
model year equal to or less than the 20th year
immediately preceding the current calendar year. Effective
Aug. 1, 2013.
• Criminal penalty provided. Section 5, subd. 11
provides that a scrap vehicle operator, or the agent,
employee, or representative of the operator, who
intentionally violates a provision of this section, is
guilty of a misdemeanor. Effective Aug. 1, 2013.
• Investigative holds; scrap vehicle or parts. Section
5, subd. 12 provides that whenever a law enforcement
official from any agency has probable cause to
believe that a scrap vehicle or motor vehicle parts in
the possession of a scrap vehicle operator are stolen
or evidence of a crime and notifies the operator not
to sell the item, the scrap vehicle operator must not:
(1) process or sell the item; or (2) remove or allow
its removal from the premises. This investigative hold
must be confirmed in writing by the originating
agency within 72 hours and will remain in effect for
30 days from the date of initial notification, or until
the investigative hold is canceled or renewed, or until a
law enforcement notification to confiscate or directive
to release is issued, whichever comes first. If a scrap
vehicle or motor vehicle parts are identified as stolen
or evidence in a criminal case, a law enforcement official
may: (1) physically confiscate and remove the item
from the scrap vehicle operator, pursuant to a written
notification; (2) place the item on hold or extend
the hold and leave it on the premises; or (3) direct its
release to a registered owner or owner’s agent. The
section also provides for a release of the hold, a process
for the operator to request the seized property be
returned, and a process for the operator to seek restitution
against the person who delivered the item. Effective
Aug. 1, 2013.
• Video security cameras required. Section 5,
subd. 13 extends existing provisions in Minn. Stat.
§ 325E.21, subd. 9 requiring that scrap metal dealers
must install and maintain security cameras to scrap
vehicle operators. Each operator must install and
maintain at each location video surveillance cameras,
still digital cameras, or similar devices positioned to
record or photograph a frontal view showing a clear
and readily identifiable image of the face of each seller
of a scrap vehicle who enters the location. The scrap
vehicle operator must also photograph the seller’s
vehicle, including license plate, either by video camera
or still digital camera, so that an accurate and complete
description of it may be obtained from the recordings
made by the cameras. Photographs and recordings
must be clearly and accurately associated with their
respective records. The camera must be kept in operating
condition, be turned on when the location is
open or when a vehicle is being purchased, and must
record and display the accurate date and time. Recordings
and images must be retained by the scrap vehicle
operator for a minimum period of 60 days and must
at all reasonable times be open to the inspection of
any properly identified law enforcement officer. If the
scrap vehicle operator does not purchase some or any
scrap vehicles at a specific business location, the operator
need not comply with this subdivision with respect
to those purchases. This subdivision does not apply to
the purchase of a scrap vehicle by a used vehicle parts
dealer licensed under Minn. Stat. § 168.27, for dismantling
the vehicle for its parts. Effective Jan. 1, 2014.
• Preemption of local ordinances provided. Section
5, subd. 14 provides that the provisions in this
section preempt and supersede any local ordinance or
rule concerning the same subject matter. Effective Aug.
1, 2013.
• Reporting period shortened. Section 6 amends
Minn. Stat. § 168A.153, subd. 1 by shortening from 30
days to 10 days the time by which a dealer who buys a
vehicle to be dismantled or destroyed must report the
vehicle’s license plate number and identification number,
and the seller’s name and driver’s license number. Effective
Aug. 1, 2013.
• Notification requirement provided. Section 7
amends Minn. Stat. § 168A.153, subd. 3 by providing
that the notification required under subd. 1 must be
made electronically as prescribed by the registrar. Effective
Aug. 1, 2013.
• Definitions added to scrap metal dealer
regulations. Section 8 amends Minn. Stat. § 325E.21,
subd. 1 by adding definitions. “Interchange file
2013 Law Summaries Page 11

specification format” means the most recent version
of the Minneapolis automated property system
interchange file specification format. “Seller” means any
seller, prospective seller, or agent of the seller. “Proof
of identification” means a driver’s license, Minnesota
identification card number, or other identification
document issued for identification purposes by any state,
federal, or foreign government if the document includes
the person’s photograph, full name, birth date, and
signature. Effective Aug. 1, 2013.
• Scrap metal dealer required to obtain signed
statement. Section 9 amends Minn. Stat. § 325E.21,
subd. 1a by requiring a statement signed by the seller,
under penalty of perjury attesting that the scrap metal is
not stolen and is free of any liens or encumbrances and
the seller has the right to sell it. Effective Aug. 1, 2013 and
expires Jan. 1, 2015.
• Purchase or acquisition record required. Section
10 adds a section to Minn. Stat. § 325E.21. It provides
that every scrap metal dealer, including an agent,
employee, or representative of the dealer, shall create a
permanent record written in English, using an electronic
record program at the time of each purchase or acquisition
of scrap metal. The section outlines the information
required to be kept as part of the record, which must
at all reasonable times be open to the inspection of any
properly identified law enforcement officer.
• Exceptions. No record is required for property purchased
from merchants, manufacturers, salvage pools,
insurance companies, rental car companies, financial
institutions, charities, dealers licensed under Minn.
Stat. § 168.27, or wholesale dealers, having an established
place of business, or of any goods purchased at
open sale from any bankrupt stock, but a receipt must
be obtained and kept by the person, which must be
shown upon demand to any properly identified law
enforcement officer.
• Personal information protected. A dealer may not
disclose personal information concerning a customer
without the customer’s consent unless the disclosure
is required by law or made in response to a request
from a law enforcement agency. A dealer must implement
reasonable safeguards to protect the security of
the personal information, defined as any individually
identifiable information gathered in connection with a
record. Effective Jan. 1, 2015.
• Automated property system requirements provided.
Section 11 adds a section to Minn. Stat. §
325E.21. It requires dealers to completely and accurately
provide all the required information by transferring it
from their computer to the automated property system,
by the close of business each day, using the interchange
file specification format. A dealer who does not
have an electronic point-of-sale program may request to
be provided software by the automated property system
to record the required information. If the dealer uses a
commercially available electronic point-of-sale program
to record the information required in this section, it
must submit the information using the interchange file
specification format. Any record submitted by a dealer
that does not conform to the interchange file specification
format must be corrected and resubmitted the next
business day. No fees may be charged to a dealer for use
of the automated property system until such time as the
Legislature enacts a fee schedule. A dealer must display
a sign of sufficient size, in a conspicuous place in
the premises, which informs all patrons that transactions
are reported to law enforcement daily. Every local law
enforcement agency must participate in the automated
property system as an individual agency or in conjunction
with another agency or agencies to provide the service.
Effective Jan. 1, 2015.
• Registration requirement sunset provided. Section
12 amends Minn. Stat. § 325E.21, subd. 4, which
requires every scrap metal dealer to register with and
participate in the criminal alert network described in
Minn. Stat. § 299A.61. It provides that the requirement
sunsets on Jan. 1, 2015, when new requirements go into
effect. Effective Jan. 1, 2015.
• Investigative holds for scrap metal purchases
modified. Section 13 amends Minn. Stat. § 325E.21,
subd. 8. It authorizes an initial 72-hour hold upon notification
from law enforcement that the scrap metal
dealer shall not sell or remove an item. It requires the
agency to confirm the hold in writing, and it then
remains in effect for 30 days from date of initial notification.
It provides that the agency may confiscate the
stolen item or evidence and remove it, place the item
on hold and leave it in the premises, or direct its release
to an owner. Finally, it provides that if law enforcement
does not timely issue a notification to confiscate or issues
the notification but fails to remove the item within 15
days, the dealer may process the item. Effective Aug. 1,
2013.
• Video security cameras required. Section 14 amends
Minn. Stat. § 325E.21, subd. 9, so that it matches the
video camera requirements in for scrap vehicle operators
under 168A.1501 (See, Section 5, subd. 13 above). Effective
Jan. 1, 2014.
• Preemption of local ordinances provided. Section
15 adds a subdivision to Minn. Stat. § 325E.21. It
provides that the provisions in this section preempt and
supersede any local ordinance or rule concerning the
same subject matter. Effective Aug. 1, 2013.
• Automated Property System standards required.
Section 16 is a 2013 Session Law. It requires the Minneapolis
Police Department, in consultation with law
enforcement, prosecutors, the commissioner of the
Page 12
League of Minnesota Cities

Department of Public Safety, legislators, and representatives
from each regulated industry, to develop standards
for the Automated Property System as it pertains to
scrap metal. Proposed standards are to be submitted to
the Legislature by Jan. 15, 2014. Final standards are to be
completed by July 1, 2014, and provided to scrap metal
dealers by July 15, 2014. Effective May 25, 2013.
(AF)
DATA PRACTICES
Safe At Home Program
Chapter 76 (HF 580*/SF 509) clarifies the duties and
responsibilities related to the Safe At Home Program
administered by the Secretary of State. The program, created
in 2006, provides an alternative mailing address to
individuals, such as victims of domestic violence, who need
to keep their location private for their personal safety. The
bill creates a new section of the Minnesota Government
Data Practices Act (MGDPA), Minn. Stat. § 13.045, that
classifies identity and location data of participants as private
data. The data may not be shared with other government
entities or disseminated to any person unless the participant
expressly consents in writing, the sharing is mandated
by court order, or is required for certain law enforcement
purposes. The bill requires that a participant must inform a
governmental entity in writing that he or she is a certified
participant. A government entity must accept the alternative
address maintained by the Secretary of State. Finally,
the bill states that the program does not create any affirmative
duty on a governmental entity to independently
determine whether it maintains data on a program participant.
Effective July 1, 2013. (PH)
Omnibus data practices bill
Chapter 82 (HF 695/SF 745*) is the omnibus data practices
bill. The following provisions are relevant to cities:
• Citizen contact information classified as private
data. Section 1 is an initiative sponsored by the
League of Minnesota Cities that classifies as private data
the email addresses and phone numbers of citizens who
submit their contact information to cities for “notification
purposes or as part of a subscription list for an
entity’s electronic periodic publications.” Notifications
and electronic periodic publications include items such
as snow emergency notices, newsletters, monthly crime
reports, and other general information sent by cities to
residents. The names of people on the lists and the content
of any communications remain public data. Effective
May 24, 2013, and applies to data collected, maintained, or
received before, on, or after that date.
• Security information definition expanded. Section
2 amends Minn. Stat. § 13.37, subd. 1, to expand the
definition of security information. Current law makes
certain contact information of volunteers participating in
community crime prevention programs private data. The
bill expands the definition to include email addresses,
internet account information, and GPS locations. Effective
Aug. 1, 2013.
• Settlement agreements and investigative data. Section
4 amends Minn. Stat. § 13.43, subd. 2 in order to
clarify two provisions of law adopted in 2012. The 2012
law (Chapter 280) made additional data related to settlement
agreements involving certain public officials public
data. Since passage in 2012, two settlement agreements
involving public officials were classified as private data,
and a number of legislators felt they should have been
classified as public under the new law.
• The 2012 law expanded the definition of public official
to include (1) the chief administrative officer of
all political subdivisions, (2) the three highest-paid
employees in a city with a population of over 15,000,
and (3) in a city with a population over 7,500, “individuals
in a management capacity reporting directly to
the chief administrative officer.” The third classification
is changed, and now applies to: “managers; chiefs;
heads or directors of departments, divisions, bureaus,
or boards; and any equivalent position.”
• The 2012 law also made public data related to a
complaint or charge against a covered public official
if potential legal claims were released as part of a
settlement agreement with another person. Section
4 deletes “with another person,” and makes public a
complaint involving a covered public official if potential
legal claims arising out of the conduct that is the
subject of the complaint or charge are released as part
of a settlement agreement. This change was made so
that the data are public when a settlement agreement
involves the subject of the complaint. Effective May 24,
2013.
• Criminal justice data communications network.
Section 29 amends Minn. Stat. § 299C.46, subd. 3. It
modifies the list of permitted uses of the criminal justice
data communications network and allows access
by political subdivisions where authorized by state or
federal law. It establishes standards that agencies must
meet in order to establish secure network connections to
the database, including the performance of background
checks on employees who may access the database.
Effective Aug. 1, 2013.
• Criminal history checks authorized. Sections 30-31
authorizes the performance of criminal history checks, as
defined in Minn. Stat. § 299C.72, on applicants for city
or county employment, persons applying to volunteer
in the city or county, or an individual seeking a city or
county license not otherwise subject to a state or federal
background check. The criminal history check under this
2013 Law Summaries Page 13

section cannot be used in place of a statutorily-mandated
or authorized background check. Effective Aug. 1, 2013.
• Background check required for fire department
applicants. Section 32 amends Minn. Stat. § 299F.035
to require background checks on applicants to fire
departments in Minnesota, and to allow background
checks on current employees. The section also requires
that the fire chief perform criminal history record
checks. Effective Aug. 1, 2013.
• Miscellaneous background check requirements.
Sections 33-35 establish background check requirements
on individuals applying for an explosives license
(Minn. Stat. § 299F.73), wholesale liquor license (Minn.
Stat. § 340A.301), or retail liquor license (Minn. Stat. §
340A.402). Effective Aug. 1, 2013.
(PH)
Page 14
ECONOMIC DEVELOPMENT
Additional security for development authority loans
authorized
Chapter 64 (HF 368/SF 340*) amends Minn. Stat. §
116J.5764, subd. 1, the statute authorizing the Department
of Employment and Economic Development (DEED) to
administer demolition redevelopment loans to development
authorities. The law expands the acceptable means by
which an authority may secure a loan to pay for demolition
costs from solely a general obligation of the authority
payable primarily from a dedicated revenue source to
include other security subject to review and approval by
DEED, such as TIF or land sale proceeds. Effective Aug. 1,
2013. (PH)
Jobs, economic development, housing, commerce
and energy omnibus budget bill
Chapter 85 (HF 729*/SF 1057) is the omnibus jobs,
economic development, housing, commerce, and energy
bill. It appropriates biennial funding for the Department
of Employment and Economic Development (DEED),
Housing Finance Agency (HFA), Department of Labor &
Industry (DLI), Department of Commerce, Public Utilities
Commission (PUC), and various boards. The provisions
relating to the jobs and economic development
portion of the bills of interest to cities are summarized
below. (Note: See corresponding issue areas for summaries
of other projects.)
Article 1: Appropriations
Employment and economic development
• Minnesota Investment Fund (MIF). Section 3,
subd. 2(a) appropriates $15 million in FY 2014 and
2015 for the MIF program. MIF funds are available
to local units of government to provide loans to assist
expanding businesses.
··
Baxter Pharmaceuticals plant in Brooklyn
Park. $3 million of the MIF funding is available
in FY 2014 for a forgivable loan to facilitate
the purchase and operation of a biopharmaceutical
manufacturing facility in Brooklyn Park (Baxter
Pharmaceuticals). If the project meets performance
goals the initial loan will be forgiven, and an additional
$2 million made available for subsequent
investment. The facility is also eligible for funding
through the newly-created Minnesota Job Creation
Fund (see Article 3, sec. 8 below).
• Minnesota Job Creation Fund. Section 3, subd.
2(b) appropriates $12 million in FY 2014 and 2015
for the newly created Minnesota Job Creation Fund in
Minn. Stat. § 116J.8748 (see Article 3, sec. 8 below).
• Contaminated site cleanup. Section 3, subds. 2(c)
and (d) appropriate approximately $2 million in FY
2014 and 2015 for the contaminated site clean-up and
development grant program.
• Business development grants. Section 3, subd. 2(e)
appropriates $1.425 million in FY 2014 and 2015 for
business development competitive grants.
• Jobs Skills Partnership. Section 3, subd. 2(f) appropriates
$4.195 million in FY 2014 and 2015 for the
Jobs Skills Partnership in Minn. Stat. § 116L.01.
• Redevelopment program. Section 3, subd. 2(g)
appropriates $6 million in FY 2014 and 2015 for the
Redevelopment program under Minn. Stat. § 116J.
571. The program provides communities with grants
to pay up to 50 percent of the costs or redeveloping
blighted industrial, residential, or commercial sites.
• Host Community Economic Development program.
Section 3, subd. 2(r) appropriates $875,000 in
FY 2014 and 2015 for the Host Community Economic
Development program created in Minn. Stat. §
116J.548 (see Article 3, sec. 3 below).
• Workforce development
• Section 3, subd. 3 appropriates $16.3 million in FY
2014 and $14.8 million in FY 2015 for workforce
development programs.
• Minnesota Trade Office
• Section 3, subd. 5 appropriates $2.3 million in FY
2014 and $2.3 million in FY 2015 for the Minnesota
Trade Office operations.
··
STEP Grants. Of the Trade Office appropriation,
$330,000 in FY 2014 and $300,000 in FY 2015
are for the newly created STEP grant program (see
Article 3, sec. 11 below).
··
Minnesota Marketing. Of the Trade Office appropriation,
$180,000 in FY 2014 and 2015 are for the
newly created Minnesota Marketing Initiative (see
Article 3, sec. 12 below).
··
Trade Policy Advisory Group. Of the Trade
Office appropriation, $50,000 in FY 2014 and 2015
League of Minnesota Cities

are for the newly created Trade Policy Advisory
Group (see Article 3, sec. 9 below).
• Competitive grant limitation
• Section 8 (technical corrections bill, Laws 2013, Ch.
144, Sec. 3) states that no entity receiving a direct
appropriation under Article 3, may apply for a competitive
grant under this section during the fiscal years
in which the direct appropriations are received.
Appropriations are effective July 1, 2013.
Article 2: Department of Labor & Industry (DLI) policy
provisions
• Misrepresentation subject to compliance order.
Section 2 amends Minn. Stat. § 177.27, subd. 4 by
adding the statute prohibiting the misrepresentation of
employment relationship (i.e., independent contractor vs.
employee) to the list of laws for which DLI may issue a
compliance order. Effective July 1, 2013.
• Violation of consent orders. Section 5 amends
Minn. Stat. § 326B.081, subd. 3 to allow the commissioner
to deny, suspend, limit, or place conditions on a
permit or license if the licensee has violated a consent
order or final order of the commissioner.
Effective July 1, 2013.
• Payment of examination fees. Section 6 amends
Minn. Stat. § 326B.093, subd. 4 and extends the time
that an applicant for a license has to pay the license fee
from 90 to 180 days after notification of passing the
examination. Effective July 1, 2013.
• Scope of State Building Code. Sections 7 & 9 amend
Minn. Stat. §§ 326B.101 and 326B.121 to clarify that
the State Building Code governs the use of buildings, in
addition to their construction, reconstruction, alteration,
and repair. Effective July 1, 2013.
• Definition of “public building.” Section 8 amends
Minn. Stat. § 326B.103, subd. 1 to include a charter
school building project in excess of $100,000 in the definition
of a public building. Effective July 1, 2013.
• Elevator constructor license created. Sections 10-30
establish the requirements for the licensing and registration
of elevator constructors and contractors. Effective
July 1, 2013.
• Specification review agreements with municipalities.
Section 32 amends Minn. Stat. § 326B.43, subd. 2
to update statutory cross references defining which public
buildings require state review of plumbing plans and
specifications. Effective July 1, 2013.
• Accelerated plan review eliminated. Section 33
deletes a clause from Minn. Stat. § 326B.49, subd. 2 that
provides for an accelerated plumbing plan review at
twice the regular fee. Effective Jan. 1, 2014.
• Plumbing fees restructured. Section 34 restructures
the plumbing review fees in Minn. Stat. § 326B.49, subd.
3. Effective Jan. 1, 2014.
• Contractor Recovery Fund. Section 35 amends
Minn. Stat. § 326B.89, subd. 1, and restricts the definition
of owner for purposes of the Contractor Recovery
Fund to exclude an owner who intends to use
the property for a business purpose and not as owneroccupied
real estate. An excluded owner would not be
eligible to receive compensation from the fund. Effective
July 1, 2013.
• Manufactured home dealer license changes. Section
36 amends Minn. Stat. § 327B.04, subd. 4 and
exempts certain owners of manufactured home parks
from meeting the two-year prior experience requirement
necessary for obtaining a dealer license. Effective
July 1, 2013.
Article 3: Department of Employment and Economic
Development (DEED) policy provisions
• Cost of living study. Section 1 adds a new statute,
Minn. Stat. § 116J.013, which requires DEED to conduct
an annual cost of living study in Minnesota. The
study must include an analysis of statewide and county
cost-of-living data, employment data, and job vacancy
data. Effective July 1, 2013.
• Labor market data. Section 2 adds a new statute,
Minn. Stat. § 116J.4011, which requires DEED, in consultation
with the Office of Higher Education and local
workforce councils, to produce and publish a labor market
analysis describing the alignment between employer
requirements and workforce qualifications. The information
must be easily accessible and readable, and
prominently presented on the websites of DEED and
workforce centers. Effective July 1, 2013.
• Host community economic development grants.
Section 3 creates a new program in Minn. Stat. §
116J.548 that will provide grants for the acquisition and
betterment of public owned capital improvements to
communities in the seven-county metro area that host
waste disposal facilities. There is no local match required.
Effective July 1, 2013.
• Small cities development block grant changes.
Section 4 modifies Minn. Stat. § 116J.8731, subd. 2 to
allow DEED to provide a forgivable loan from the Small
Cities Development Block Grant Program directly to a
private enterprise without requiring an application from
the local community, other than a resolution of support.
Eligible applicants include development authorities, provided
they have municipal approval. Effective July 1, 2013.
• Minnesota Investment Fund loans authorized.
Section 5 amends Minn. Stat. § 116J.8731, subd. 3 and
authorizes the Minnesota Investment Fund (MIF) to
fund loans (in addition to grants) for infrastructure. Effective
July 1, 2013.
• Minnesota Job Creation Fund. Section 8 creates
the Minnesota Job Creation Fund, an initiative of Gov.
2013 Law Summaries Page 15

Dayton designed to replace the expiring JOB-Z program.
Unlike JOB-Z, the Job Creation Fund is available
statewide. The fund will provide up to $1 million
to businesses that meet job creation and private investment
requirements. To qualify, a business must create at
least 10 jobs and make $500,000 in private investment.
A qualifying business must be engaged in manufacturing,
warehousing, distribution, information technology,
finance, insurance, or professional/technical services.
“Professional services” does not include work performed
primarily by attorneys, accountants, business consultants,
physicians, or health care consultants.
Local government approval required. In order to
qualify, a business must submit an application to the local
government where the facility will be located, and the
local government must submit the application and other
required materials to DEED. Effective July 1, 2013.
• Trade Policy Advisory Council established. Section
9 creates a new 15-member trade policy advisory council
to advise the governor and Legislature regarding U.S.
trade agreements. The council will consist of two senators;
two representatives; the commissioners of DEED,
Agriculture, and Administration; and eight persons
appointed by the governor. Effective July 1, 2013.
• Minnesota trade offices established. Section 10
creates a new statute, Minn. Stat. § 116J.978, directing
DEED to establish three trade offices in foreign markets
selected for their potential to increase Minnesota exports
and attract foreign investment. Effective July 1, 2013.
• STEP Grants created. Section 11 creates a new statute,
Minn. Stat. § 116J.979, directing DEED to establish
a new STEP (State Trade and Export Promotion) grant
program to provide assistance to Minnesota companies
with an interest in exporting products or services to foreign
markets. The maximum grant is $7,500. Effective July
1, 2013.
• Invest Minnesota marketing initiative. Section 12
creates a new statute, Minn. Stat. § 116J.9801, directing
DEED to establish an initiative to brand the state’s economic
development initiatives and promote Minnesota
business opportunities. Effective July 1, 2013.
• Dakota County CDA granted MIF authority. Section
22 creates a new statute, Minn. Stat. § 383D.412,
granting the Dakota County Community Development
Agency the authority to apply for and receive state
money from the Minnesota Investment Fund. Currently,
only general purpose local governments are eligible
recipients. The Dakota County Board must pass a resolution
approving such treatment, and the members of the
County Board must be the same as the members of the
CDA. Effective July 1, 2013.
Page 16
Article 5: Miscellaneous provisions
• Use of paper made in Minnesota. Section 1 amends
Minn. Stat. § 16B.122 to require public entities, including
cities, to purchase paper which has been made on a
paper machine located in Minnesota, whenever practicable.
This is in addition to existing requirements related to
the purchase and use of paper by public entities. Effective
July 1, 2013.
• Municipal regulation of barber shops. Section 17
clarifies Minn. Stat. § 154.26. Current law states that a
municipality may regulate the operating hours of a barber
shop within its municipal limits, and the new language
clarifies that this power is in addition to all other
applicable local regulations. Effective July 1, 2013.
• Office of Collaboration and Dispute Resolution
created. Sections 31 & 32 create an Office of Collaboration
and Dispute Resolution within the Bureau of
Mediation Services to promote the use of community
mediation and to assist state agencies and local governments
to improve collaboration and dispute resolution.
The Bureau is authorized to issue grants to nonprofit
community mediation entities that assist in resolution of
disputes. Effective July 1, 2013.
(PH)
ELECTIONS
Omnibus elections policy bill
Chapter 131 (HF 894*/SF 677) is the omnibus elections
bill. Some of the most notable changes to elections administration
include: permitting no excuse absentee voting;
reducing the number of voters who can be vouched for
from 15 to eight; reducing the number of elections judges
from four to three except in statewide elections; establishing
pilot sites for the use of electronic rosters and a task
force; and specifying the conditions under which a vacancy
in nomination exists for a partisan and non-partisan office.
Article 1: Absentee voting modifications
• No excuse absentee voting. Section 2 amends Minn.
Stat. § 203B.02, subd. 1 establishing no excuse absentee
voting. Sections 3 and 4 amend Minn. Stat. § 203B.04 to
make conforming changes.
• Processing absentee ballots seven days before
Election Day. Section 8 amends Minn. Stat. §
203B.121, to increase the time to process absentee ballots
from four days prior to Election Day to seven. Sections 6
and 7 amend Minn. Stat. § 203B.121 making conforming
changes.
Effective Jan. 1, 2014, and applies to voting at elections conducted
on the date of the state primary in 2014 and thereafter.
Article 2: Elections administration including redistricting,
vouching and public funded recounts
Several sections eliminate obsolete reference in law that
assign and title ballots in a particular color, based on the
League of Minnesota Cities

offices or questions to be presented on the ballot. Modifications
for ballot questions are made in several sections.
• Sections 1 and 2 modify the boundaries of senate districts
39 (Stillwater City/Stillwater Township) and 49
(Edina) and their house districts (39A and B/49A and B,
respectively) to correct redistricting errors as ordered by
a Special Redistricting Panel on Feb. 21, 2012. Effective
for the state primary and state general elections conducted in
2014 for terms of office beginning on the first Monday in January
2015, and for all elections held thereafter.
• Section 7 amends Minn. Stat. § 201.061, subd. 3 to
reduce the number of persons a voter may vouch of in
the polling place on election day from 15 to eight. An
existing exemption from this limitation for employees of
defined residential facilities is unchanged.
• Section 9 amends Minn. Stat. § 201.091, subd. 8 to eliminate
the requirement of at least one telecommunications
device for the deaf for voter registration information in
every city of the first, second and third class.
• Section 14 amends Minn. Stat. § 203B.05, subd. 1 to
require that the municipal clerk who has been designated
to administer absentee ballots must also be responsible
for the administration of a ballot board as provided
in section 203B.121. A clerk of a city that is located in
more than one county may only administer absentee
ballots and the absentee ballot board if the clerk has been
designated by each of the county auditors or provided
notice to them that the city will administer absentee
voting.
• Section 15 amends Minn. Stat. § 203B.08, subd. 3
instructing that absentee ballots received on Election Day
either after 3 p.m. or after the last mail delivery be marked
as received late and not delivered to the ballot board.
• Section 17 amends Minn. Stat. § 203B.121, subd. 1 to
allow ballot boards to include deputy city clerks who
have received training in the processing and counting of
absentee ballots.
• Section 21 amends Minn. Stat. § 203B.04 by creating a
fourth subdivision prohibiting a candidate who files an
affidavit of candidacy for one office to subsequently file
another affidavit of candidacy for a different office to be
elected at the same general election, unless the candidate
withdraws the first affidavit of candidacy.
• Section 23 amends Minn. Stat. § 204B.22, subd. 1 reducing
the required number of elections judges from four
to three in a precinct for elections other than the state
a general election except for precincts with fewer than
500 registered voters. Those precincts may use the minimum
number of three elections judges for the state general
election.
• Section 33 amends Minn. Stat. § 204C.15, subd. 1 eliminates
an allowance for election judges to select two individuals
of different major political parties to assist a voter
in marking the voter’s ballot. A voter may select a person
to assist.
• Section 39 amends Minn. Stat. § 204C.36, subd. 1
modifies the vote different thresholds for publicly
funded recounts at the expense of the city. If there are
50,000 or more votes cast, a recount may be requests if
the difference between the apparent winner and loser is
0.25 percent. If the number of votes cast is more than
400, but less than 50,000, the difference must be less
than 0.5 percent.
• Section 52 amends Minn. Stat. § 204D.19, subd. 2 prohibiting
a special election when the Legislature is in
session , when the Legislature will be in session for the
elected person to be seated, from occurring during the
four days before or after a state holiday as defined in
Minn. Stat. § 645.44, subd. 5.
• Section 54 amends Minn. Stat. § 205.10, subd. 3 amends
the time period in which cities may conduct a special
election prohibiting cities from holding a special election
as defined in subd. 1 from 40 to 56 days after the state
general election.
• Section 55 amends Minn. Stat. § 205.13, subd. 1a adding
the requirement that municipal clerks’ offices accept
candidate filings from 1 p.m. to 5 p.m. on the last day of
the filing period for municipal offices.
• Section 56 amends Minn. Stat. § 205.16, subd. 4 increasing
the number of days before a municipal election that
the municipal clerk must provide notice of the election
to the county auditor from 67 to 74 days. Section 57
amends Minn. Stat. § 205.16, subd. 5 for notice to the
Secretary of State.
• Sections 58 and 59 amend Minn. Stat. § 205.13 to standardize
ballot formatting requirements across all cities
and towns for municipal primary elections.
• Section 67 amends Minn. Stat. § 206.57, adding subdivision
8 exempting precincts using a precinct count voting
system from a requirement that ballot boxes contain two
separate compartments. The requirement is currently
contained in administrative rule 8230.4355. Effective May
24, 2013.
• Section 69 Minn. Stat. § 206.89, subd. 2 requiring that
the postelection review must not begin before the 11 th
day after the state general election and must be completed
no later than the 18 th day after the state general
election. This section also allows for the counting of
absentee ballots with all other ballots from the individual
precinct if the precinct is selected for review.
• Section 70 amends Minn. Stat. § 206.89 adding a new
subdivision providing that a postelection review is not
required for an office that may be subject to a publicly
funded recount.
• Section 71 amends Minn. Stat. § 206.90, subd. 6 modifying
standards for titling ballots in precincts using an optical
scan voting system. In state elections, a single ballot
title must be used, as provided in sections 204D.08, subdivision
6, and 204D.11, subdivision 1. In odd-numbered
2013 Law Summaries Page 17

years when both municipal and school district offices or
questions appear on the ballot, the single ballot title “City
(or Town) and School District Ballot” must be used.
• Section 78 amends Minn. Stat. § 340A.62 to standardize
the form of a referendum ballot question related to the
operation of a municipal liquor store to “Shall the city of
(name) discontinue operating the municipal liquor store
on (Month xx, 2xxx)?”
• Section 84 appropriates $60,000 to the Office of the
Secretary of State to develop functionality within the
statewide voter registration system to facilitate the processing
and tracking of mail ballots.
Effective July 1, 2013 unless otherwise noted.
Article 3: Loss and restoration of voting rights
This article streamlines data sharing of those convicted of a
felony whose voting rights have not been restored between
the Department of Corrections and the Office of the Secretary
of State. Of most relevance to cities is section 4,
subd. 3, which amends Minn. Stat. § 203B.06, subd. 3. If a
municipal clerk receives application for an absentee ballot
with an address of an adult correctional facility, they must
promptly transmit a copy of the application to the county
attorney for investigation. Effective June 15, 2013.
Article 4: Electronic rosters
This language is 2013 session law and establishes electronic
roster pilot sites and a task force.
• Electronic roster pilot project. The jurisdictions
that may participate as pilot sites for the 2013 municipal
elections are Dilworth, Minnetonka, Moorhead, Saint
Anthony, and Saint Paul. Each city that chooses to participate
will identify certain precincts that will use the
rosters for election day registration, and then upload the
data to the statewide voter registration system (SVRS).
• Electronic roster task force. The task force will consist
of 15 members and research various issues related to
the use of the rosters, including the ability to use photographs
within the rosters. The League of Minnesota
Cities will appoint one member to the task force and
the first meeting will be convened by July 1, 2013 by the
Office of the Secretary of State. A report summarizing
the group’s findings on the data security, reliability, and
transferability to the SVRS must be completed and submitted
to the appropriate legislative committees by Jan.
31, 2014.
Effective May 24, 2013.
Article 5: Vacancies in nomination
This article modifies existing language regarding death or
withdrawal for partisan offices and establishes a new section
of law for vacancies in nomination for non-partisan
office.
• Vacancy in nomination for partisan office. Sections
1-7 amend Minn. Stat. § 204B.13 establishing the
conditions under which a vacancy in nomination exists
for a partisan office. A vacancy exists when a candidate:
dies; withdraws during the withdrawal period of two
days after the filing period for the office closes; or withdraws
by filing an affidavit of withdrawal, at least one day
prior to the general election, due to a catastrophic illness
that will permanently and continuously incapacitate
and prevent the candidate from performing the duties of
the office sought. An affidavit under this clause must be
accompanied by a certificate verifying the illness, signed
by at least two licensed physicians. If the vacancy in
nomination occurs 79 or more days before the general
election (the 79 th day prior to a general election falls in
mid-late August), the candidate’s political party may file a
certificate nominating a new candidate, no later than 71
days before the general election, and that newly-named
candidate must appear on the general election ballot. The
party is permitted to provide its own internal rules for
selecting a new nominee. If the vacancy in nomination
occurs within 79 days of the general election, the general
election ballot would remain unchanged (the name
of the candidate that died or withdrew would remain
on the ballot), but the results of that election would not
be counted. Instead, the office would move to a special
election. If a special election is required, all other candidates
appearing on the ballot for that office automatically
are forwarded to the special election ballot; no new
candidate filings are permitted. The major political party
of the candidate that died or withdrew would be permitted
to nominate a new candidate, no later than seven
days after the general election. Voters voting in a polling
place on the date of the general election must be notified
of the procedure for conducting the special election
for the affected office.
• Vacancy in nomination for non-partisan office.
Sections 8-11 recodify existing law into Minn. Stat. §
204B.13 related to vacancies in nomination when a
candidate formally withdraws and adds a new provision
providing that a vacancy in nomination also exists if
a candidate for a non-partisan office—except a judicial
office—for which only one or two candidates filed or
who was nominated at a primary dies more than 79 days
prior to the date of the general election. If a vacancy in
nomination occurs under one of the situations specified
in this section, the candidate filing period for the office
would be re-opened, allowing new candidates to file for
the office. In the event of a death of a non-partisan candidate
79 or fewer days prior to the date of the election,
or the death of a judicial candidate regardless of the date
of death, the deceased candidate’s name would continue
to appear on the ballot. If the deceased candidate is
elected, the office would be declared vacant at the start
Page 18
League of Minnesota Cities

of the new term and filled following procedures contained
in existing law.
Effective May 24, 2013, and applies to vacancies in nomination
on or after that date. (AL)
EMERGENCY MEDICAL SERVICES
Emergency medical responders requirements modified
Chapter 13 (HF 201/SF 166*) modifies provisions to
include advanced emergency medical technicians (AEMT)
in the staffing requirements for advanced life support
responses. It also updates inspections provisions and provides
requirements for emergency medical responder registration.
• Advanced life support staffing requirements modified.
Section 1 amends Minn. Stat. § 144E.101, subd.
7, to include “advanced emergency medical technician”
(AEMT) in the requirements for minimum staffing for
an advanced life-support ambulance.
• Inspections of electronic files authorized. Section 2
amends Minn. Stat. § 144E.18 to specify that the Emergency
Medical Services Regulatory Board (EMSRB)
may review electronic files when inspecting ambulance
services.
• Education programs conforming changes provided.
Section 3 amends Minn. Stat. § 144E.27, subd. 1,
to make conforming changes with section 4 below.
• Education programs approval required. Section 4
amends Minn. Stat. § 144E.27, by adding a subdivision.
It requires that all education programs for emergency
medical responders must be approved by the EMSRB.
The section also sets out criteria for board approval.
• AEMT and paramedic requirements specified.
Section 5 amends Minn. Stat. § 144E.285, subd. 2. It
adds AEMT to provisions related to education requirements
for paramedics.
• Reapproval programs requirements modified. Section
6 amends Minn. Stat. § 144E.285, subd. 4. It modifies
reapproval requirements for education programs for
EMTs, AEMTs and paramedics by adding that for reapproval,
programs must maintain the minimum average
yearly pass rate set by the EMSRB.
Effective Aug. 1, 2013. (AF)
Continuing education requirements for community
paramedics modified
Chapter 18 (HF 75*/SF 39) amends Minn. Stat. §
144E.28, subd. 9. It requires that, in addition to existing
paramedic continuing education requirements, an individual
certified as a community paramedic must complete 12
hours of continuing education in clinical topics approved
by the ambulance service medical director. Effective Aug. 1,
2013. (AF)
EMPLOYMENT
Workers’ Compensation Reinsurance Association
requirements modified
Chapter 15 (HF 504*/SF 372) amends Minn. Stat. § 79.35,
which relates to the Workers’ Compensation Reinsurance
Association (WCRA), a nonprofit reinsurance pool
to which state law requires workers’ compensation insurance
companies, and employers that self-insure for workers’
compensation, to be members. The chapter eliminates one
component of the premium required for the reinsurance
coverage, namely the cost of the claims that exceed the
prefunded limit. It also eliminates from the law any references
to the prefunded limit. Effective Jan. 1, 2015. (AF)
Prompt payment of wages modified
Chapter 27 (HF 748*/SF 602) amends two sections of law
relating to payment of wages upon discharge and payment
of wages upon quitting or resignation. Similar changes are
made to each section of law.
• Penalty for failure to make payment of wages
promptly modified. Section 1 amends Minn. Stat.
§ 181.13, a law regulating an employer’s payment of
wages upon the discharge of an employee. It requires
the payment of wages at a rate in excess of the regular
rate if the higher rate is set by law, regulation, rule,
ordinance, government resolution or policy, contract,
or other legal authority. An employee may recover an
additional amount equal to the unpaid wages as compensatory
damages. An employee’s demand for payment
under this section must be in writing, but need not state
the precise amount of unpaid wages or commissions. An
employee may directly seek and recover payment from
an employer under this section even if the employee is
not a party to a contract that requires the employer to
pay the employee at the rate of pay demanded by the
employee, so long as the contract or any applicable statute,
regulation, rule, ordinance, government resolution,
or policy, or other legal authority requires payment to
the employee at the particular rate of pay. The employee
shall be able to directly seek payment at the highest rate
of pay provided in the contract or applicable law, and any
other related remedies as provided in the section.
• Prompt payment to employees who quit or resign
modified. Section 2 amends Minn. Stat. § 181.14,
a law relating to payment to employees who quit or
resign. It provides that wages are earned and unpaid if
the employee was not paid for all time worked at the
regular rate of pay or the rate required by law, regulation,
rule, ordinance, resolution, policy, contract, or
other legal authority, whichever is greater. An employee’s
demand for payment under this section must be in
writing but need not state the precise amount of unpaid
2013 Law Summaries Page 19

wages or commissions. An employee may directly seek
and recover payment from an employer under this section
even if the employee is not a party to a contract that
requires the employer to pay the employee at the rate of
pay demanded by the employee, so long as the contract
or any applicable statute, regulation, rule, ordinance, government
resolution or policy, or other legal authority
requires payment to the employee at the particular rate
of pay. The employee shall be able to directly seek payment
at the highest rate of pay provided in the contract
or applicable law, and any other remedies related thereto
as provided in this section.
• Prompt payment requirement waived under certain
circumstances. Section 2 also removes language
eliminating coverage of the law to any employee after a
quit or discharge, who, upon audit, is found to have not
properly accounted for or paid to the employer funds or
property for which they were responsible. It prohibits
any deductions from wages due or earned unless specifically
authorized.
Effective April 30, 2013. (AF)
Limits on reliance on criminal history for employment
purposes expanded
Chapter 61 (HF 690/SF 523*) amends the “Ban the
Box” law. It clarifies the existing law that applies to public
employers, and expands the limits on reliance on criminal
history to include private employers. It also applies criminal
offender rehabilitation requirements to private employers.
• Conditions precident to employment not
required. Section 1 amends Minn. Stat. § 181.53 by
clarifying that nothing in this section precludes an
employer from requesting or considering an applicant’s
criminal history pursuant to Minn. Stat. § 364.021,
which exempts the Department of Corrections and
other public employers that have a statutory duty to
conduct a criminal history background check or otherwise
take into consideration a potential employee’s
criminal history during the hiring process or other
applicable law.
• Limitation on admissibility of criminal history
provided. Section 2 amends Minn. Stat. § 181.981,
subd. 1, by providing that information regarding a criminal
history record of an employee or former employee
may not be introduced as evidence in a civil action
against a private employer or its employees or agents
that is based on the conduct of the employee or former
employee, if the action is based solely upon the employer’s
compliance with section 364.021, which exempts the
Department of Corrections and other public employers
who have a statutory duty to conduct a criminal history
background check or otherwise take into consideration
a potential employee’s criminal history during the hiring
process or other applicable law.
Page 20
• Private employers added to “Ban the Box” law.
Section 3 amends Minn. Stat. § 364.021 by adding private
employers to those who cannot inquire into or
consider the criminal history of a job applicant until the
applicant has been selected for an interview. Existing law
currently applies only to public employers.
• Private employers investigation and remedies
provided. Section 4 adds a subdivision to Minn. Stat.
§ 364.06. It provides for investigation and the imposition
of fines by the commissioner of the Department of
Human Rights for private sector violations of the “Ban
the Box” law.
• Exception provided. Section 5 amends Minn. Stat. §
364.09. It states that the law does not supersede other
statutorily-required criminal history background checks
or records required for particular employment.
• Violation of civil rights clarified to include public
employer violations. Section 6 amends Minn.
Stat. § 364.10 by clarifying that a violation of the rights
established in Minn. Stat. § 364.01 to 364.10 by a public
employer constitutes a violation of a person’s civil rights.
Effective Jan, 1, 2014. (AF)
Workers’ compensation modifications provided
Chapter 70 (HF 1359/SF 1234*) makes policy and housekeeping
changes made to worker’s compensation, adopts
recommendations of the Workers’ Compensation Advisory
Council and requires a report.
Article 1: Dept. of Labor and Industry (DLI) provisions
modified
Article 1 contains provisions pertaining to DLI.
• Complaint investigation requirement modified.
Section 1 amends Minn. Stat. § 176.102, subd. 3a, by
giving the commissioner of DLI the discretion over
whether to investigate a complaint filed against a qualified
rehabilitation consultant (QRC) or rehabilitation
vendor. Existing law provides that the commissioner
must investigate. Effective May 17, 2013.
• $7,500 cap pertaining to administrative conferences
modified. Section 2 amends Minn. Stat §
176.106, subd. 1. Currently, DLI may hold administrative
conferences and issue decisions involving medical disputes
where the amount involved is $7,500 or less. This
section removes the $7,500 cap when the issue being
disputed is whether the provider’s charge for a service or
product is excessive. Effective May 17, 2013, and applies to
medical disputes filed on or after that date.
• Special compensation fund reports modified. Section
3 amends Minn. Stat. § 176.129, subd. 13. It clarifies
that an insolvent insurer is not entitled to reimbursement
of supplementary or second injury benefits from the
special compensation fund, except for those who filed
for reimbursement prior to June 1, 2013. Effective May
League of Minnesota Cities

17, 2013, and applies to claims for reimbursement filed with
the special compensation fund on or after that date.
• Workers’ compensation medical data use for
genetic information prohibited. Section 4 amends
Minn. Stat. § 176.138. It provides that medical data
collected, stored, used, or disseminated by or filed
with the DLI in connection with a claim for workers’
compensation benefits does not constitute genetic
information for the purposes of Minn. Stat. § 13.386.
Effective May 17, 2013.
• Notice by DLI, rights of parties modified. Section
5 amends Minn. Stat. § 176.183, subd. 4. It requires the
special compensation fund to provide notice to employers
of a proposed settlement together with a copy of the
settlement agreement. The notice must state that if the
employer does not object to the settlement within 15
days, it will be deemed to have waived any defenses it
may have to a subsequent claim for reimbursement by
the fund. Effective May 17, 2013.
• Receipts for payment of compensation and filing
modified. Section 6 amends Minn. Stat. § 176.245. It
allows DLI to use any type of sampling methodology to
perform the evaluation of whether insurers and employers
are providing the department evidence of payment of
compensation. Current law requires the department to
use Six Sigma methodology. Effective May 17, 2013.
• Settlement of claims provision modified. Section 7
amends Minn. Stat. § 176.521. It provides that if a workers’
compensation case is settled at the time it is pending
before the Workers’ Compensation Court of Appeals, the
proposed settlement must be approved by an administrative
law judge (rather than the Workers’ Compensation
Court of Appeals). Effective for settlement agreements submitted
for approval on or after July 1, 2013.
Article 2: Workers’ Compensation Advisory Council
(WCAC) recommendations adopted
Article 2 contains provisions recommended by the WCAC.
• Definition of “occupational disease” expanded
to include mental impairments. Section 1 amends
Minn. Stat. § 176.011, subd. 15. It modifies the definition
of “occupational disease” to mean mental impairments
or physical diseases arising out of and in the
course of employment to provide coverage for post-traumatic
stress disorder (PTSD). Mental impairment means
a diagnosis of PTSD by a licensed psychiatrist or psychologist.
Mental impairment is not considered a disease
if it results from a disciplinary action, work evaluation,
job transfer, layoff, demotion, promotion, termination,
retirement, or similar action taken in good faith by the
employer. Effective Oct. 1, 2013, and applies to injuries
occurring after that date.
• Definition of “personal injury” expanded to
include mental impairments. Section 2 amends
Minn. Stat. § 176.011, subd. 16. It modifies the definition
of “personal injury” to mean mental impairments
or physical diseases arising out of and in the course of
employment to provide coverage for PTSD. Effective Oct.
1, 2013, and applies to injuries occurring after that date.
• Limitation of fees modified. Section 3 amends Minn.
Stat. § 176.081, subd. 1. It increases the cap on legal services
fees to $26,000. The current cap is $13,000. Effective
Oct. 1, 2013, and applies to injuries occurring after that date.
• Additional award authorization clarified. Section
4 amends Minn. Stat. § 176.081, subd. 7. It clarifies that
the subdivision applies only to contingent fees payable
from the employee’s compensation benefits, and not to
other fees paid by the employer and insurer, including
but not limited to those fees payable for resolution of a
medical dispute or rehabilitation dispute, or pursuant to
Minn. Stat. § 176.191. Effective Oct. 1, 2013, and applies to
injuries occurring after that date.
• Temporary total disability benefit level increased.
Section 5 amends Minn. Stat. § 176.101, subd. 1. It
increases the maximum weekly benefit amount from the
current law level of $850 per week to 102 percent of the
statewide average weekly wage for the period ending
Dec. 31 of the preceding year. Effective Oct. 1, 2013, and
applies to injuries occurring after that date.
• Job development services limitations provided. Section
6 adds a provision to Minn. Stat. § 176.102, subd. 5.
It provides that “job development” means systematic contact
with prospective employers resulting in opportunities
for interviews and employment that might not otherwise
have existed, and includes identification of job leads and
arranging for job interviews. Job development facilitates
a prospective employer’s consideration of a qualified
employee for employment. Job development services
provided by a qualified rehabilitation consultant firm or a
registered rehabilitation vendor must not exceed 20 hours
per month or 26 consecutive or intermittent weeks. When
13 consecutive or intermittent weeks of job development
services have been provided, the qualified rehabilitation
consultant must consult with the parties and either file a
plan amendment reflecting an agreement by the parties to
extend job development services for up to an additional
13 consecutive or intermittent weeks, or file a request for
a rehabilitation conference under Minn. Stat. § 176.106.
The commissioner of DLI or a compensation judge may
issue an order modifying the rehabilitation plan or make
other determinations about the employee’s rehabilitation,
but must not order more than 26 total consecutive or
intermittent weeks of job development services. Effective
Oct. 1, 2013, and applies to injuries occurring after that date.
• Rehabilitation consultants and vendors limits provided.
Section 7 amends Minn. Stat. § 176.102, subd.
10. It provides that an individual qualified rehabilitation
consultant registered by DLI must not provide any
medical, rehabilitation, or disability case management
services related to an injury that is compensable under
2013 Law Summaries Page 21

this chapter when these services are part of the same
claim, unless the case management services are part of an
approved rehabilitation plan. Effective Oct. 1, 2013.
• Administrative conference 60 day requirement
modified. Section 8 amends Minn. Stat. § 176.106,
subd. 3. It directs that administrative conferences on
rehabilitation issues must be held within 21 days after
a conference is requested, unless the issue involves only
fees for rehab services that were already provided, or
there is good cause for holding the hearing later than 21
days. Effective Oct. 1, 2013.
• Liability limit technical change provided. Section 9
amends Minn. Stat. § 176.136, subd. 1b. It specifies that
a prevailing charge for treatment, services, and supplies,
and the liability of the employer, is limited. It must be
based on no more than two years of billing data immediately
preceding the service. Effective on Oct. 1, 2013, and
must be used to establish prevailing charges on or after that date.
• Adjustment of benefits modified. Section 10
amends Minn. Stat. § 176.645. It provides that, for injuries
occurring on and after Oct. 1, 2013, no adjustment
increase shall exceed 3 percent a year. If the adjustment
under the formula of this section would exceed 3
percent, the increase shall be 3 percent. No adjustment
under this section shall be less than 0 percent. Effective
Oct. 1, 2013, and applies to injuries occurring on and after
that date.
• Treatment standards for medical services clarified.
Section 11 amends Minn. Stat. § 176.83, subd. 5. It clarifies
the DLI commissioner’s current rulemaking authority
to specifically address criteria for use of opioids or other
narcotic medications. Effective Oct. 1, 2013, and applies to
employees with all dates of injury who receive treatment after the
rules are adopted.
• Patient advocate pilot program established. Section
12 is a 2013 Session Law directing the commissioner
of DLI to implement a two-year patient advocate program
for employees with back injuries who are considering
back fusion surgery. The purpose of the program
is to ensure that injured workers understand their treatment
options and receive treatment for their work injuries
according to accepted medical standards. The services
provided by the patient advocate will be paid for from the
special compensation fund. Effective Oct. 1, 2013.
• Reimbursement cost study required. Section 12 is
a 2013 Session Law directing the commissioner of DLI
to study the effectiveness and costs of potential reforms
and barriers within the workers’ compensation carrier
and health care provider reimbursement system,
including, but not limited to, carrier administrative costs,
prompt payment, uniform claim components, and the
effect on provider reimbursements and injured worker
co-payments of implementing the subjects studied. The
commissioner must consult with interested stakeholders
including health care providers, workers’ compensation
Page 22
insurance carriers, and representatives of business and
labor to provide relevant data promptly to the department
to complete the study. The commissioner must
report findings and recommendations to the Workers’
Compensation Advisory Council by Dec. 31, 2013.
Effective May 17, 2013.
(AF)
Gender-neutral marriage authorized
Chapter 74 (HF 1054*/SF 925) amends Minn. Stat. Ch.
517. It changes the legal definition of marriage from
“between a man and a woman” to “between two persons,”
and removes a conforming requirement that a legal
marriage may only be between persons of the opposite
sex. It authorizes the marriage and divorce of two persons,
regardless of gender, and recognizes for purposes of
Minnesota law marriages performed in other jurisdictions,
regardless of the gender of the persons in the marriage. It
also contains provisions which permit churches and religious
associations to choose who can be married in their
faith and to whom they will provide services, without
the risk of liability. Finally, it provides that, wherever the
term “marriage,” “marital,” “marry,” or “married” is used
in Minnesota Statute in reference to the rights, obligations,
or privileges of a couple under law, the term includes
civil marriage, or individuals subject to civil marriage, as
established by this chapter. A term subject to this definition
must also be interpreted in reference to the context
in which it appears, but may not be interpreted to limit or
exclude any individual who has entered into a valid civil
marriage contract under this chapter. (Note: This section is
summarized in the 2013 Law Summaries to alert cities that
the new law requires employers to treat married couples the same,
regardless of the gender of the persons in the marriage, for purposes
of providing employee benefits.) Effective Aug. 1, 2013. (AF)
State labor contracts ratified
Chapter 77 (HF 1069*/SF 1185) is a 2013 Session Law
ratifying collective bargaining agreements between the
State of Minnesota and employees belonging to collective
bargaining units. The agreements were approved by the
Legislative Coordinating Commission Subcommittee on
Employee Relations on March 11, 2013.
• Collective bargaining agreements ratified. Section
1 provides that the agreements reached between the following
labor groups and the State of Minnesota are ratified:
• American Federation of State, County and Municipal
Employees
• Inter Faculty Organization
• Minnesota Nurses Association
• Office of Higher Education (unrepresented employees
of the Office of Higher Education)
• Minnesota Government Engineering Council
League of Minnesota Cities

• Minnesota State University Association of Administrative
and Service Faculty
• Minnesota State College Faculty
• Minnesota State Colleges and Universities (MnSCU)
Administrators
• Minnesota Insurance Marketplace
• Minnesota Law Enforcement Association retroactive
contract funding provided. Section 2 provides
that if a collective bargaining agreement between
the commissioner of the Department of Management
and Budget (MMB) and the Minnesota Law Enforcement
Association for the period from July 1, 2011, to
June 30, 2013, is not implemented before June 30, 2013,
the commissioner of MMB may allow the employing
agencies to carry forward unexpended and unencumbered
non-grant operating balances from fiscal year 2013
to provide funding for any retroactive salary increase
included in the final collective bargaining agreement for
the period from July 1, 2011 to June 30, 2013.
Effective May 21, 2013. (AF)
Employee sick leave benefit use expanded
Chapter 87 (HF 568/SF 840*) amends Minn. Stat. §
181.9413, which requires employers that have 21 or more
employees at a work location to allow employees to use
accrued personal sick leave to care for a sick child. This
chapter expands existing requirement so that an employee
can use up to 160 hours of accrued personal sick leave
per year to care for an adult child, spouse, sibling, parent,
grandparent, or stepparent. The chapter also provides that
by Aug. 1, 2014, the commissioner of Minnesota Management
and Budget must analyze and report to the standing
committees of the House of Representatives and Senate
with jurisdiction over labor and workplace issues on
the impact on the usage of sick leave by employees of
the executive branch of the state as a result of the expansion.
The law does not prevent an employer from providing
greater sick leave benefits than are provided for under
the law. It also does not require employers to increase the
amount of sick leave provided to employees, nor does it
interfere with existing employer policies related to maximum
sick leave accruals. Effective Aug. 1, 2013, and applies to
sick leave used on or after that date. (AF)
UNEMPLOYMENT INSURANCE
Unemployment insurance provisions in the omnibus
jobs and economic development bill
Chapter 85 (HF 729*/SF 1057) is the omnibus jobs, economic
development, housing, commerce, and energy bill.
Article 4 of the bill contains unemployment insurance provisions,
many of which are technical changes. The following
is a summary of items that may be of interest to cities.
• Converting layoffs into Minnesota business program.
Section 2 amends Minn. Stat. § 116L.17 to create
the Minnesota CLIMB program, which is designed to
assist dislocated workers in starting or growing a business.
Section 9 amends Minn. Stat. § 268.133 to make
CLIMB participants eligible for benefits. Participants will
be considered to be in reemployment assistance training,
but certain earning and working hour limitations under
Minn. Stat. § 268.085 may be waived for up to 500 program
applicants. Effective July 1, 2013.
• Shared work agreement modifications. Sections
10-15 amend the shared work agreement statute, Minn.
Stat. § 268.136. The agreements will now be referred
to as shared work plans. The amendments add a notice
requirement to employees, clarify the commissioner
approval process, and allow for the modification of existing
shared work plans subject to approval by the commissioner.
Effective July 1, 2013.
• Additional benefits for locked-out employees. Sections
5-8 amend Minn. Stat. § 268.125 to create additional
benefits for employees who stop work as a result
of a lock-out. The additional benefits are not available
for professional athletes locked out by a professional
sports team. Effective May 25, 2013.
• Employer tax reduction. Section 18 establishes a
temporary reduction in the unemployment insurance
employer tax, based upon the balance of the Minnesota
Unemployment Trust Fund. (Only cities that have
elected to be taxpaying employers pay the unemployment
insurance employer tax.) If on Sept. 30, 2013, the
fund balance is $800 million, the base tax rate for calendar
year 2014 is 0.1 percent and there will be no additional
assessment assigned. If on Sept. 30, 2014, the fund
balance is more than $900 million, the base tax rate for
calendar year 2015 will be 0.1 percent and there will be
no additional assessment assigned. This section expires on
Dec. 31, 2015. Effective July 1, 2013.
(PH)
ENVIRONMENT
Technical and consensus drainage law changes made
Chapter 4 (*HF66/SF113) includes changes recommended
by the Drainage Work Group to the state’s drainage
law. The Drainage Work Group is a group of drainage
stakeholders facilitated by the Board of Water and Soil
Resources (BWSR). The changes primarily update definitions,
terminology, and procedures to current drainage
management practices, including watershed districts
as being eligible drainage authorities, and streamlining
record-keeping and record replacement procedures for
county and joint-powers drainage authorities. Effective Aug.
1, 2013. (CJ)
2013 Law Summaries Page 23

Metro water group sunset extended
Chapter 19 (*HF834/SF515) allows the Metropolitan
Council to continue to operate the Metropolitan
Area Water Supply Advisory Committee through 2016,
as described in MN Stat § 473.1565, subdivision 2. This
applies only to the seven-county metro area. Effective retroactively
from Dec. 31, 2012. (CJ)
180-day process for adopting organized collection
replaced with 60-day negotiation period
Chapter 45 (*SF510/HF128) eliminates the cumbersome
180-day process for adopting organized collection, and
replaces it with a 60-day negotiation period between a city
and its licensed collectors. The new process is designed to
give the current collectors the first chance to develop a
proposal for organized collection. If the 60-day negotiation
period ends without an agreement, a city can continue the
process by adopting a resolution to form a committee to
study organized collection and make recommendations.
Cities that have already organized collection are exempt
from the new law. Their current organized collection
methods continue to govern.
The steps for adopting organized solid waste collection
under the new law are as follows:
• Notice to public and licensed collectors. Before
forming a committee to study organized collection, a
city with more than one licensed collector must notify
the public and its licensed collectors that it is considering
organizing collection. The new law does not specify
how notice should be provided. The League recommends
providing both published notice and individual
mailed notice to each licensed collector.
• Sixty-day negotiation period. After a city provides
notice of its intent to consider organizing collection, it
must provide a 60-day negotiation period that is exclusive
between the city and its licensed collectors. A city is not
required to reach an agreement during this period.
• The purpose of the negotiation period is to allow
licensed collectors to develop a proposal in which they,
as members of an organization of collectors, collect
solid waste from designated sections of the city. The
proposal must addresses specific issues set out in the
new law.
• If an agreement is reached with a city’s licensed collectors,
it must be effective for three to seven years.
The city must provide public notice and hold at least
one public hearing before implementing the agreement.
Organized collection cannot begin until at least
six months after the effective date of the city’s decision
to implement organized collection.
• Committee formation. If a city does not reach
an agreement with its licensed collectors during the
negotiation period, it can form—by resolution—an
“organized collection options committee” to study
Page 24
various methods of organizing collection and issue
a report. The city council appoints the committee
members, and the committee is subject to the Open
Meeting Law. The committee must examine different
methods of organizing collection (two of which are
specified in the law); establish a list of criteria for
evaluating the different methods of collection; collect
information from other cities and towns with organized
collection; and seek input at a minimum from the city
council, the local official responsible for solid waste
issues, licensed solid waste and recycling collectors, and
city residents.
• Public notice, public hearing, and implementation.
A city must provide public notice and hold at
least one public hearing before deciding to implement
organized collection. Organized collection cannot begin
until at least six months after the effective date of the
city’s decision to implement organized collection.
Effective May 8, 2013. (CJ)
Environment trust fund projects
Chapter 52 (*HF1113/SF987) is the annual package
of projects funded from the environment and natural
resources trust fund, which is funded through lottery proceeds.
The Legislative Citizens Commission on Minnesota
Resources (LCCMR) develops the recommendation for a
wide range of research and projects related to the environment.
Several of this year’s approved projects are of interest
to cities.
• County geologic atlases. Subd. 3(b) provides $1.2
million to the University of Minnesota to continue to
accelerate completion of county geologic atlases.
• Specified county geologic atlases. Subd. 3(c) provides
$1.2 million to the University of Minnesota for
additional work on the county geologic atlases of Houston
and Winona Counties.
• Wetland inventory. Subd. 3(d) provides $1 million to
the Department of Natural Resources for continued
work on a statewide wetland inventory.
• Hydrogen generation from wastewater. Subd. 5(g)
provides $240,000 to the University of Minnesota to
research uses of selected bacteria and polymer membranes
being used to generate hydrogen from wastewater.
• Emerald ash borer. Subd. 6(c) provides $600,000 to
the University of Minnesota and the Department of
Agriculture to evaluate and implement detection options
for emerald ash borer.
Effective July 1, 2013. (CJ)
Omnibus lands bill
Chapter 73 (*HF740/SF886) is the omnibus lands bill.
Legislative approval is needed to authorize the sale of taxforfeited
parcels bordering public waters. The bill also contains
some policy changes related to the acquisition and
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transfer of lands for the purposes of serving as school forests
in sections 1-5. Sections 1-5 are effective May 21, 2013.
The remainder of the sections are effective Aug. 1, 2013. (CJ)
Wastewater and stormwater funding program
restrictions reduced
Chapter 105 (*HF819/SF613) changes language related
to wastewater and stormwater grant and loan programs
administered through the Public facilities Authority (PFA).
• Section 1 expands eligibility of the Total Maximum
Daily Load grant program to include phosphorus and
nitrogen reduction projects meeting certain criteria.
• Sections 2 and 3 fix other criteria in the TMDL grant
program to allow that broadened eligibility.
• Section 4 increases maximum grant amount for technical
assistance grants under the small community wastewater
treatment program from $10,000 to $20,000 plus $1,000
(up from $500) for each household up to a maximum of
$60,000 (up from $40,000).
• Section 5 allows land-based disposal systems to be
funded through the small community wastewater treatment
program and matches grant eligibility criteria with
the need criteria of the Wastewater Infrastructure Fund
grant program.
• Section 6 sets a new maximum on project funding at $2
million (up from $500,000) under the small community
wastewater treatment program.
• Section 7 allows loans under the small community
wastewater treatment program to be amortized over 20
years.
• Section 8 allows loans or portions of loans under
the wastewater infrastructure funding program to be
changed to grants if the community is deemed to have
been eligible for a grant under normal eligibility criteria
at the time the loan was made.
• Section 9 and 10 clean up existing statute by changing
the name of the TMDL grants program to the point
source implementation grants program, removing references
to deleted programs, and repealing the phosphorus
reduction grants program and previous language limiting
grant amounts.
Effective Aug. 1, 2013. (CJ)
Omnibus environmental budget bill
Chapter 114 (*HF 976/ SF 1170) is the budget bill for
state environment, natural resources, and agriculture. It
allocates approximately $312 million of general fund revenue,
plus funds from dedicated fees and special revenue
accounts.
Article 2: Agricultural policy changes
Article 2 contains policy provisions related to agriculture.
• Ag water quality certification. Sections 1, 2, and
5-16 are all related to the new agricultural water certification
program, a joint state and federal effort to
improve agricultural land owner participation in existing
voluntary conservation programs.
• Noxious weeds. Sections 17-27 are all related to noxious
weed statutes. The changes made are mostly minor
or technical, except that section 21 contains a number of
definitions of new classes of noxious weeds.
• Pesticides. Section 30 prohibits filling pesticide application
equipment with water directly from public waters.
It is already prohibited from public water supplies. Language
is also added to prohibit cross connections to supplies
used for filling pesticide application equipment.
None of this applies to aquatic pesticide application.
Effective July 1, 2013.
Article 3: Environmental agency budgets
Article 3 includes funding for the Pollution Control
Agency (MPCA), Department of Natural Resources
(DNR), and Board of Water and Soil Resources (BWSR),
with funds also going to the Met Council, the Zoo, and
the Minnesota Conservation Corps.
• Pollution Control Agency. Section 3 appropriates
funds to the PCA. It includes specific money related to
SSTS (septic system) programs, air quality monitoring
and emission reduction efforts to help the state avoid
non-attainment with federal limits for ozone and fine
particulate matter, SCORE recycling funds, funding for
the Environmental Quality Board (EQB), and funding
for the technical team formed as part of the solution to
new regulation of silica sand mining.
• Department of Natural Resources. Section 4 appropriates
funds to the DNR. It includes $7.6 million to
the ecological and water resources division for increased
work on groundwater quality, quantity, and sustainability.
This work was initially funded by increases to water
appropriation fees, significantly weighted on city utility
customers. It was instead funded out of the general fund.
There is also significant funding for continues work to
deal with aquatic invasive species.
• Board of Water and Soil resources. Section 5 appropriates
funds to BWSR. The funds are mostly passed
through as cost-share grants to local units of government
for work related to water quality and erosion control.
• Met Council. Section 6 appropriates $17 million to the
Metropolitan Council for metro parks.
Effective July 1, 2013.
Article 4: Environment policy changes
Article 4 contains numerous changes to state laws related
to the environment and natural resources. Effective July 1,
2013, unless otherwise noted.
• Motorized mobility devices. Section 2 addresses
ADA requirements by allowing the DNR commissioner
to establish by written order state policies for the use and
2013 Law Summaries Page 25

operation of motorized mobility devices on state administered
lands and facilities.
• Utility crossing fee waiver. Section 3 waives permit
fees for utility crossing over state land or water if the
crossing is within an existing road right-of-way.
• ATV operation. Sections 10 and 11 deal with operation
of ATVs in ditches and rights-of-way. The same
changes were made in the game and fish omnibus policy
bill (Chapter 121). Those changes are summarized in the
Public Safety section.
• Silica sand mining and processing. Numerous sections
of this article pertain to regulations of silica sand
operations in southeast Minnesota.
• Section 66. Within the boundaries of the DNR
Paleozoic Plateau Ecological Section, no excavation or
mining of silica sand, including but not limited to digging,
excavating, mining, drilling, blasting, tunneling,
dredging, stripping, or shafting, may occur within one
mile of a designated trout stream unless a silica sand
mining trout stream setback permit has been issue by
DNR. Effective May 24, 2013, applies to new silica sand
mining projects and projects for which environmental review
documents have been noticed for public comments after April
30, 2013.
• Section 91, subd. 1-2. The EQB, in consultation
with LGUs, is instructed to develop model standards
and criteria for mining, processing, and transporting
silica sand. The standards may be used by LGUs as they
develop their local ordinances. Effective May 24, 2013.
• Section 91, subd. 3-4. The EQB is instructed to
assemble a silica sand technical assistance team to provide
LGUs, at their request, with assistance with ordinance
development, zoning, environmental review
and permitting, monitoring, or other issues relating
to silica sand. When an LGU requests recommendations
from the technical assistance team the LGU must
consider the findings or recommendations of the team
in its approval or denial of a silica sand project. If the
LGU does not agree with the team’s findings and recommendations,
the detailed reasons for the disagreement
must be part of the LGU record of decision.
Effective May 24, 2013.
• Section 92. Until two years after July 1, 2013, an
Environmental Assessment Worksheet (EAW) must
be prepared for any silica sand project that meets or
exceeds any of a very specific list of thresholds, which
are laid out, below. Effective July 1, 2013, and no permit
for a silica sand project subject to this section may be
approved after that date unless the required environmental
review has been completed.
··
Excavates 20 or more acres of land to a mean depth
of 10 feet or more during its existence. The local
government is the responsible governmental unit; or
··
Is designed to store or is capable of storing more
than 7,500 tons of silica sand or has an annual
throughput of more than 200,000 tons of silica sand
and is not required to receive a permit from the
Pollution Control Agency. The Pollution Control
Agency is the responsible governmental unit.
··
In addition to the contents required under statute
and rule, an environmental assessment worksheet
completed according to this section must include
several specific items:
››
A hydrogeologic investigation assessing potential
groundwater and surface water effects and geologic
conditions that could create an increased risk
of potentially significant effects on groundwater
and surface water;
››
For a project with the potential to require a
groundwater appropriation permit from the commissioner
of natural resources, an assessment of the
water resources available for appropriation;
››
An air quality impact assessment that includes an
assessment of the potential effects from airborne
particulates and dust;
››
A traffic impact analysis, including documentation
of existing transportation systems, analysis of the
potential effects of the project on transportation,
and mitigation measures to eliminate or minimize
adverse impacts;
››
An assessment of compatibility of the project with
other existing uses; and
››
Mitigation measures that could eliminate or minimize
any adverse environmental effects for the
project.
• Section 93. The EQB is instructed to create and
maintain a library of LGU ordinances and LGU permits
that have been approved for regulation of silica
sand projects.
• Section 105. Authorizes the expedited adoption of
rules by a number of state agencies related to aspects
of silica sand mining, storage, and processing. Effective
May 24, 2013.
• Section 106. An LGU may extend an interim ordinance
or renew an expired ordinance prohibiting new
or expanded silica sand projects for one year. Effective
retroactively from March 1, 2013.
• Groundwater policies. Numerous sections of this article
amend existing statutes related to groundwater use
and regulations.
• Legislative approval. Sections 67 and 68 repeal
existing legislative approval requirements for large
water diversions or appropriations.
• Preliminary well approval. Section 71 instructs the
DNR to evaluate the likelihood that a water appropriation
permit applicant will meet sustainability
requirements prior to construction and to give written
preliminary approval if the project is likely to meet
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those requirements. It is linked closely to section 74,
which adds new requirements to the information that
must be provided to the DNR before a well can be
constructed under MN Stat § 103I.205, subdivision 1,
paragraph (f), including location, aquifer serving as the
water source, maximum daily/annual/seasonal pumping
rates and volumes, and any other information
needed by the agency to make its preliminary determination
of sustainability.
• Permits in groundwater management areas. Section
72 allows the DNR to require wells drawing less
than 10,000 gallons per day or 1 million gallons per
year to need a water appropriation permit if an area
is designated as a groundwater management area. The
DNR can choose to waive flow metering and reporting
requirements under MN Stat §103G.281 and cannot
collect a permit application fee for these smaller
permits.
• DNR Report. Section 102 requires the DNR to
report to the Legislature by Jan. 15, 2014, with any
recommendations or draft legislation they identify as
needed to carry out department responsibilities related
to groundwater sustainability.
• Wastewater lab certification. Section 76 includes
new language related to the criteria for certifying labs
that provide data to the state regarding whether NPDES
and SDS permit holder are meeting permit requirements.
It exempts for-profit, drinking water, and remediation
analysis labs.
• Architectural paint. Sections 78-79 direct producers
of architectural paint, individually or through a stewardship
organization, to implement and finance a statewide
product stewardship program that manages the
architectural paint by reducing the paint’s waste generation,
promoting its reuse and recycling, and providing
for negotiation and execution of agreements to collect,
transport, and process the architectural paint for end-oflife
recycling and reuse. LGUs are not mandated to participate
in this program, but can choose to enter into a
contract with a producer or stewardship organization.
• Corrective actions under petrofund. Sections 83-85
and 87 are language that was worked out between cities,
state agencies, and petroleum marketers on how
to tighten up state ability to assure that environmental
covenants travel with real property titles after corrective
actions under the state petrofund program.
• Hennepin County SWCD discontinued. Section 96
ends a longstanding battle by discontinuing the Hennepin
County Soil and Water District and transferring its
responsibilities to the county. The county has been functioning
in that capacity for a number of years already
and had ceased funding the SWCD.
• Priority funding for wastewater re-use. Section 100
requires the MPCA to award bonus priority points to a
project will result in an agency-approved beneficial use
of treated wastewater that results in reducing or replacing
the use of groundwater, surface water, or potable
water, provided that the project component resulting in
the beneficial use of wastewater accounts for at least 20
percent of the total eligible cost of the project. Projects
receiving points for land discharge beneficial use will not
receive the additional 30 points. Effective Aug. 1, 2013.
Article 5: Sanitary district formation
This article transfers the process for establishing a sanitary
district to address water quality and public health concerns
from the MPCA to the Office of Administrative Hearings
(OAH). The process often involves annexation law disputes,
with which the MPCA has no comfort or experience. The
article also updates existing law to use current procedures,
statutory references, and legal definitions.
Effective Aug. 1, 2013, except for sections 5 and 12, which transfer
authority to OAH and require petitioners to pay the costs for
the preparation and submission of petitions, that are effective May
24, 2013. (CJ)
Legacy spending bill gets controversial, earns first
veto of session
Chapter 137 (*HF 1183/ SF 1051) allocates the money
from constitutionally dedicated sales tax funds targeted to
environmental and cultural programs. Gov. Dayton eventually
line-item vetoed two appropriations from the outdoor
heritage fund that went against the recommendations
of the Lessard-Sams Outdoor Heritage Council. The two
vetoed line items were $6.3 million to metropolitan parks
in Subd. 5(i) and $3 million for aquatic invasive species
control in Subd. 5(j).
Article 1: Outdoor Heritage Fund
Article 1 appropriates $100 million in the next fiscal
year from the Outdoor Heritage Fund. The funds in this
account go to improve fish and wildlife habitat and to
improve access to hunting and fishing. Most of the funds
are spent in rural areas, but several allocations could allow
land within cities to be eligible for either purchase in title
or for purchase of permanent conservation easements.
Those provisions include funding for aquatic management
land purchases (Subd. 5(a)), for conservation projects, easements,
and land purchases in Dakota County (Subd. 5(b)),
for conservation projects, easements, and land purchases
related to the Minnesota, Mississippi, and St. Croix Rivers
in the metropolitan area (Subd. 5(d)), and for matching
grants to local partner conservation organizations for
projects, easements, and land purchases that will be open to
public hunting and fishing (Subd. 5(j)).
Article 2: Clean Water Fund
Article 2 appropriates approximately $97.5 million for each
fiscal year of the biennium. The clean water fund provides
resources for the state to make progress on meeting federal
2013 Law Summaries Page 27

Clean Water Act requirements for identifying and cleaning
up impaired lakes, rivers, and streams. It also funds other
work to restore, enhance, and protect surface water quality
and drinking water sources. It also contains environmental
policy provisions.
• Section 3 is funding for the Department of Agriculture
and includes $2.5 million per year for research into
nitrate contamination of groundwater and $1.5 million
per year to fund the agricultural water quality certification
program, a state/federal partnership to improve
landowner participation in existing voluntary conservation
programs.
• Section 4 is funding to the Public Facilities Authority for
wastewater and stormwater infrastructure projects that
address water quality impairments and under-sewered
communities. $9 million each year goes to the Point
Source Implementation grants program and $2 million
each year goes to the small community wastewater treatment
program.
• Section 5 funds impaired water programs at the MPCA.
It includes funds to continue to assess water quality
on a watershed basis, develop TMDL reports on water
impairments identified, complete implementation plans
to address those impairments, and to monitor progress.
It also includes $275,000 each year for research into
stormwater best management practices, $900,000 each
year for wastewater and stormwater NPDES permit
TMDL implementation efforts, and $375,000 per year to
support research into wastewater treatment technology
and for an ongoing University of Minnesota-led technical
group to provide technical support to wastewater
system design teams and to promote new technologies
to address existing and emerging wastewater treatment
challenges.
• Section 6 goes to the Department of Natural Resources.
It includes $2 million per year for enhanced monitoring
to determine the relationship between groundwater levels
and stream flow, $615,000 per year to enhance work
on county geologic atlases to provide data on groundwater
supply and recharge, $3 million in the first year
of the biennium to develop and designate groundwater
management areas, and $500,000 per year in grants funds
available to local governments that adopt shoreland land
use protection standards that meet a list of criteria well
beyond state shoreland rule requirements.
• Section 7 provides funds to the Board of Water and Soil
Resources. Most of their programs provide cost-share
grants to local government partners.
• Local government units organized for the management
of water get access to $5 million in the first year
and $7 million in the second year in grants for significantly
reducing water pollution in targeted watersheds.
• $9.7 million in the first year and $10.7 million in the
second goes to a broad list of efforts that protect and
restore lakes, rivers, streams, and drinking water in
Page 28
ways consistent with approved TMDL reports, including
by keeping water on the land and through septic
system programs.
• $3.5 million in the first year and $4.5 million in the
second go for targeted local resource protection and
enhancement grants for projects and practices that
supplement or exceed current state standards for protection,
enhancement, and restoration of water quality
in lakes, rivers, and streams or that protect groundwater
from degradation, including compliance.
• $1.3 million each year is available for permanent
conservation easement purchase in wellhead
protection areas.
• $1.5 million each year goes for grants to local
government related to reducing stormwater pollution
impacts and on proven methods of retaining water for
infiltration.
• Section 8 funds programs at the Department of Health
related to drinking water and groundwater protection.
It includes funds to look at contaminants being found
in drinking water that have no current health risk values
determined, looking at the frequency of private well
contamination, and developing a virus monitoring plan
for groundwater supplies.
• Section 9 provides funds to the Metropolitan Council.
$500,000 each year goes to support inflow and infiltration
mitigation in the metro area, $537,000 is provided
to research groundwater and surface water connections
in White Bear Lake, and $1 million each year goes for
continues groundwater planning efforts.
• Section 10 provides an additional $615,000 each year to
the University of Minnesota to speed the completion of
county geologic atlases.
• Section 17 bans the sale and use of coal-tar based asphalt
sealants statewide as of Jan. 1, 2014.
• Sections 18-22 relate to Mississippi River Critical Corridor
land use rule development. The provisions included
reauthorization for the DNR to develop rules, but
change the statutes that define what those rules must
include to better protect existing uses and to remove
specific requirements of definitions related to bluffs,
slopes, and mapping.
Article 3: Parks and Trails Fund
Article 3 allocates $42.5 million each year to park and
trail projects in the state. Despite early contention over the
split of metropolitan and rural funding, the split will keep
the balance of 40 percent for metropolitan area parks and
trails, 40 percent for state parks and trails, and 20 percent
for non-metro areas. Projects are specified for the metro
and non-metro park and trail funds. A Greater Minnesota
Regional Parks and Trails Commission is established
to determine which parks should be classified as being of
state or regional significance outside the metropolitan area
and to make recommendations to the Legislature on future
League of Minnesota Cities

expenditures of funds to non-metro regional park projects,
which was authorized to be formed as of May 24, 2013.
Article 4: Arts and Cultural Heritage Fund
Article 4 allocates approximately $58 million each year to
enhance access to the arts and cultural heritage. The funds
are divided between a wide range of interests including
public radio and television, zoos, cultural groups, the state
historical society, and the state arts board. It includes $3
million each year in support of regional library systems. It
also included a policy provision that allows Minnesota-produced
beer and wine to be served in the Rathkeller Cafe in
the State Capitol, pending approval of the City of St. Paul.
Article 5: General provisions
Article 5 contains a policy requirement that no solar photovoltaic
module may be funded in whole or in part by
legacy funds unless they are made in Minnesota.
All sections mentioned are effective July 1, 2013, unless otherwise
noted. (CJ)
GENERAL GOVERNMENT
Alternative publication of bids for projects funded
by special assessment
Chapter 46 (HF 1196/SF 843*) adds a definition of
“recognized industry trade journal” to Minn. Stat. §
331A.01, so that websites and other digital publications
qualify for alternative publication purposes for certain
projects. The bill amends Minn. Stat. § 429.041, subd. 1 to
allow cities to publish advertisements for bids for projects
funded by special assessment in recognized industry trade
journals. Because of the shift from printed to electronic
media, there are no longer publications that met the old
definition of trade journal, which forced cities to publish
advertisements in a paper published in a city of the first
class in addition to the web-based publication. The new
definition will eliminate the duplicative publication
requirement. Effective Aug. 1, 2013. (PH)
Met council cost allocation deferred payments permitted
Chapter 101 (*HF 738/SF 551) makes minor and technical
changes to the statutes related to the Met Council. Section
3 allows a city to request that a cost allocated to them
by the Met Council be deferred, in part or in total, to be
paid on a schedule and with interest added as agreed to by
the council. Effective May 25, 2013. (CJ)
Omnibus state government finance and veterans
affairs bill
Chapter 142 (HF 1184/SF 1589*) is the omnibus state
government finance and veterans affairs bill. Article 1
appropriates funding to state agencies, departments, councils
and commissions. Articles 2-5 make several policy
changes, some of which may be of interest to cities.
Article 2: Minnesota sunset act
• Sections 2-10 repeal the Minnesota Sunset Act and make
conforming changes. Section 1 amends Minn. Stat. §
3.885 permitting the Legislative Commission on Planning
and Fiscal Policy to review executive branch advisory
groups on criteria similar to those applied by the
Sunset Commission. Effective May 24, 2013.
Article 3: State government operations
• Office of the Secretary of State to accept funds.
Section 8 is new language, Minn. Stat. § 5.38, authorizing
the Secretary of State (SOS) to solicit and accept
funds from local governments to be used for technology
projects and to enhance the state’s election system.
The SOS and the local governmental unit shall agree to
the amount of consideration to be paid under the agreement.
This section also allows the SOS to accept federal
funds for election purposes and specifies that a certain
state statute that governs the disbursement of federal
funds will or will not apply, depending on whether
the terms of the grant require the state to maintain its
efforts. Funds accepted under this section are deposited
into a special revenue fund and are appropriated to
the SOS. The SOS is required to report by Jan. 15 each
year to the chair and ranking minority members of the
finance committees of the house and senate. The report
must include the total amounts received in the preceding
year, the source of those funds, and the uses of the funds.
Section 9 is new language, Minn. Stat. § 5B.1, authorizing
the SOS to solicit and accept funds from individuals
and apply for grants from charitable organizations to be
used for the confidentiality program, Safe at Home, that
provides data protection for victims of violence.
• City and Town Accounting System (CTAS) software.
Section 10 adds new language, Minn. Stat. §
6.475, permitting the state auditor to charge a onetime
user fee to cities, towns and other government entities
for the development, maintenance, and distribution of
the small city and town accounting system software. The
State Auditor shall consult with the Minnesota Association
of Townships, the League of Minnesota Cities, and
the Minnesota Association of Small Cities to set the
amount of the fee. If the CTAS software ceases to be
offered by the State Auditor, any amount remaining in
the CTAS account shall be equitably refunded to users
and the account shall be closed.
• State auditor enterprise fund. Section 13 creates
Minn. Stat. § 6.581, the state auditor enterprise fund in
the state treasury. The law requires that amounts received
for the costs of the auditor’s examinations to be deposited
into the fund.
2013 Law Summaries Page 29

• Business as vendor. Section 14 amends Minn. Stat. §
13.591, subd. 3 changing when data submitted by a business
to a government entity in response to a request for
bids and proposals cease to be private or nonpublic. Under
current law, the data is private or nonpublic until the bids
or responses are opened; this section makes the data public
at the time and date specified in the solicitation that
bids or proposals are due. The law also changes what data
remain private or nonpublic when all responses for bids
or proposals are rejected prior to completion of the selection
process. Under current law, all data except that made
public at the bid or response opening remain private or
nonpublic; as changed by this section, all data, other than
the name of the bidder and the dollar amount specified in
the bid or response, remain private and nonpublic.
• E-Government Advisory Council. Section 25 establishes
the E-Government Advisory Council to improve
online government information services to citizens and
businesses. The membership will include appointees
knowledgeable in public access to government data. The
council will convene its first meeting by Nov. 1, 2013, and
sunset on the first Monday in January 2016, after making
recommendations to the Office of Enterprise Technology.
Effective May 24, 2013
Article 4: Military and veterans provisions
• State and municipal officers and employees
authorized leave. Section 1 amends Minn. Stat. §
192.26, subd. 1 permitting employees to choose when
during a calendar year to take their paid 15-day military
leave and allows employees to take it all at one time or
to divide it at their discretion. Authorized leave may be
taken without loss of pay, seniority status, efficiency rating,
vacation, sick leave, or other benefits when engaged
in training or active service.
• Section 9 amends Minn. Stat. § 364.03, subd. 3 by
broadening the means for showing competent evidence
of rehabilitation to include the person’s having earned an
honorable discharge from the military subsequent to the
person’s adjudication for the crime.
• Section 10 creates new language, amends Minn. Stat. §
471.3457 authorizing cities and towns to give contract
preferences to veteran-owned small business. The language
is permissive.
Effective May 24, 2013.
Article 5: Revenue department
• Automobile theft prevention surcharge. Section 10
recodifies existing language into Minn. Stat. § 12971.1]
to move the automobile theft prevention surcharge
account, collection and administration to the Department
of Revenue from the Department of Public Safety.
Effective for premiums collected after June 30, 2013.
(AL)
Page 30
HEALTH
Updating terminology related to persons with disabilities
Chapter 62 (HF 760*/SF 655) replaces outdated terminology
related to persons with disabilities in various Minnesota
Statutes and Rules, including some that regulate
municipalities. However, the bill makes no policy or substantive
changes to statutes or rules. Effective Aug. 1, 2013.
(PH)
Minnesota Insurance Marketplace Act (MNsure)
Chapter 9 (HF 5*/SF 1) is the Minnesota Insurance Marketplace
legislation which was enacted in response to the
federal Affordable Care Act (ACA), Public Law 111-148.
Under federal health care reform, states have the option
of creating their own health insurance exchange as long as
it meets certain federal requirements or optionally, a state
can use a health insurance exchange supported in whole or
in part by the federal Department of Health and Human
Services. With the passage of this bill, Minnesota will now
have a state system called MNsure, for individuals to shop
for and purchase health insurance coverage to comply with
the federal health insurance mandate. The new law is codified
in a new statute, Minn. Stat. § 62V.
Chapter 9 primarily establishes the infrastructure for
the Minnesota Insurance Marketplace. The legislation creates
a board of directors serving four-year staggered terms
consisting of seven members in the executive branch of
state government, one of whom is the state Commissioner
of Human Services, to oversee the health insurance
exchange. The new law also establishes term limits for the
board members and clarifies that the board will be subject
to the Open Meeting Law and other state laws dealing
with review and audit by the legislative auditor, conflicts of
interest and receipt of gifts.
The legislation does not prohibit “qualified
individuals” or “qualified employers” from selecting a
health plan offered outside of the Marketplace. The ACA
defines a “qualified individual” as an individual who seeks
to enroll in a qualified health plan through an exchange,
resides in the State and is not incarcerated. A “qualified
employer” is defined under Section 1312 of the ACA as
generally meaning a “small employer” who elects to make
all full time employees eligible for one or more qualified
health plans available in the small group marketplace
offered through the health insurance exchange. The
Affordable Care Act defines a “small employer,” for the
purposes of health coverage, as an employer with at least
one but not more than 100 employees but each State has
the option to limit small employers to having no more
than 50 employees until 2016. The Minnesota system
will initially apply to employers with no more than 50
employees. The Minnesota health insurance exchange
League of Minnesota Cities

could be expanded to large employers in the future by
legislative action.
All employers will be required to provide a written
notice to each employee informing them of the existence
of the State’s exchange and how to get in contact with
the exchange, among other items. The notice was originally
scheduled to be distributed by March 1, 2013, but the
requirement has been delayed until Oct. 1, 2013, which
will coordinate with the first open enrollment period for
the Exchange.
Effective March 21, 2013. Any actions taken by any state agencies
in furtherance of the design, development, and implementation
of the Minnesota Insurance Marketplace prior to the effective
date shall be considered actions taken by the Minnesota Insurance
Marketplace and shall be governed by the provisions of this chapter
and state law. Health plan and dental plan coverage through
the Minnesota Insurance Marketplace is effective Jan. 1, 2014.
(Note: The MNsure exchange can be accessed at: http://
mn.gov/hix/. Further guidance on health care reform
is available on the League’s website at: www.lmc.org/
page/1/health-care-reform.jsp.)
(AF)
HOUSING
Concentration limits of community-based homes
(group homes)
Chapter 108 (HF 1233*/SF 1034), Article 7, section 53 of
the omnibus Health and Human Services Act establishes
a study by the commissioner of human services to develop
recommendations on concentration limits on home and
community-based settings, as consistent with Minnesota
Olmstead Plan. The report must be submitted to legislators
by Feb. 1, 2014. Effective July 1, 2013 (HC)
Contract for deed provision in the omnibus economic
development budget bill
Chapter 85 (HF 729*/SF 1057), the omnibus jobs, economic
development, housing, commerce, and energy bill,
contains new requirements for certain sales of residential
homes by contract for deed.
• Multiple seller definition. Section 7 contains definitions
for the new notice requirements regarding sale of
properties through contract for deed by a multiple seller.
Minn. Stat. § 559.201 defines a multiple seller as a person
that has acted as a seller in four or more contracts for deed
during the 12 months preceding the purchase agreement
was executed or the date on which the purchaser executes
a contract for deed. Effective July 1, 2013. (HC)
• Notice disclosure requirement. Section 8, subd. 1 adds
a new notice disclosure requirement for multiple sellers
called “Important Information About Contracts for Deed.”
• Subd. 2 exempts the notice requirement if the purchaser
is represented by a licensed attorney or real
estate broker, provided that the representation does not
create a dual agency.
• Subd. 3 specifies the verbatim language that must be
included in the notice. The notice includes information
on who is responsible for paying property taxes,
homeowner’s insurance, and repairs and maintenance.
The notice must also include recommendations to
the purchaser to get advice from an attorney or the
Home Ownership Center, get an appraisal and home
inspection, buy title insurance, check with the city for
inspection records or unpaid utility bills, check with
the county or title company to see if another mortgage
or lien is on the property, and to check with the
Department of Commerce to see if interest rate not
higher than the maximum rate allowed by law.
• Subd. 4 allows the prospective purchaser five business
days after actually receiving the notice to cancel
a purchase agreement without penalty. The seller must
refund all payments made by the prospective purchaser
prior to cancellation.
• Subd 5 provides for a private right of action to be filed
by the purchaser against the multiple seller if the seller
fails to deliver the timely notice. The seller is liable to
the purchaser for damages, reasonable attorney fees
and court costs.
• Subd. 6 states that a violation of the notice provision
does not invalidate the contract for deed.
Section 8 is effective Aug. 1, 2013, and applies to transactions
in which the contract for deed and the purchase agreement for the
contract for deed, if any, were both executed on or after that date.
(HC)
Dual tracking in foreclosure prohibited
Chapter 115 (HF 1377/SF 1276*) makes changes to mortgage
foreclosure laws. The following provisions may be of
interest to cities:
• Notice delivery. Section 2 requires that the foreclosure
notice be delivered up to the day of the foreclosure sale,
rather than the day of redemption; sending a notice at
least once every 60 days up to the date of the foreclosure
sale meets this requirement. Effective Aug. 1, 2013
• Dual tracking prohibition. Section 3, subd. 6 prohibits
“dual tracking” in mortgage foreclosure proceedings.
Dual tracking involves continuing the foreclosure process
while a lender is considering a request from the borrower
for a mortgage loan modification. Effective Oct. 31, 2013.
(HC)
Housing funding and policy provisions in the
omnibus economic development budget bill
Section 4 of Chapter 85 (HF 729*/SF 1057), the omnibus
jobs, economic development, housing, commerce, and
2013 Law Summaries Page 31

energy bill, contains $101.4 million in appropriations to
the Minnesota Housing Finance Agency for FY 2014-
2015. This funding includes:
• $28.4 million for the Economic Development and
Housing Challenge Program.
• $23.5 million for the Housing Trust Fund.
• $5.6 million for the rental assistance program for mentally
ill individuals.
• $15.7 for family homeless prevention and assistant programs.
• $1.6 million for the home ownership assistance program.
• $8.4 for the affordable rental investment fund.
• $5.5 million for the rehabilitation of single-family
homes.
• $1.5 million for the home homeownership, education,
and training program.
• $750,000 for nonprofit capacity building grants.
• $890,000 in grants to three housing service programs.
• $6.3 million for rental rehabilitation.
Within these appropriations, the following provisions
impact cities:
• Housing and Job Growth Initiative. Subd. 2(b)
amends Minn. Stat. § 462A.33, the economic development
and housing challenge program, to include a
one-time appropriation of $10 million targeted toward
communities and regions that have:
• Low housing vacancy rates; and
• cooperatively developed plan that identifies current
and future housing needs; and one or more of the following:
··
experienced job growth since 2005 and have at least
2,000 jobs within the commuter shed;
··
evidence of anticipated job expansion; or
··
significant portion of area employees who commute
more than 30 miles between their residence and
their employment.
• Flood damage. Subd. 13 transfers excess money from
the Challenge program’s appropriation in 2012 (estimated
to be around $3 million) to the Housing Development
Fund for the rehabilitation loan program. Until
Aug. 1, 2014, priority for the use of these funds shall be
given to assist eligible homeowners in the Duluth area
(DR-4069) that were damaged as a result of the flooding
that occurred June 14 to June 21, 2012.
• Federally assisted housing. Subd. 7(b) amends Minn.
Stat. § 462A.21, subd. 8b to require owners of federally
assisted rental property to enter into an agreement that
gives local units of government, housing and redevelopment
authorizes, and nonprofit housing organizations
the right of first refusal if the rental property is offered
for sale.
Effective May 24, 2013 (HC)
Page 32
Housing Improvement Areas extension
Chapter 143 (HF 677*/SF 552) is the omnibus tax law. It
amends Minn. Stat. § 428A.21 to extend the authority for
cities to create new Housing Improvement Areas for 15
more years to June 30, 2028. Effective May 24, 2013 (HC)
Housing infrastructure bonds provisions in the
omnibus economic development budget bill
Chapter 85 (HF 729*/SF 1057), the omnibus jobs, economic
development, housing, commerce, and energy
bill, contains a provision related to housing infrastructure
bonds. Article 5, section 42 contains a technical fix to the
definition of “housing infrastructure bonds” in Minn. Stat.
§ 462A.37, subd. 1 is a change recommended by bond
council for existing housing infrastructure bond allocations.
Effective May 24, 2013 (HC)
Mortgage foreclosure consultant and originator
clarifications
Chapter 17 (HF 129*/ SF 294) amends Minn. Stat. §
325N.01 to clarify the definition of a foreclosure consultant
and apply the regulations to mortgage originators who
are negotiating the terms of an existing residential mortgage.
This law applies provisions to mortgage originators
that were originally only applied to foreclosure consultants.
The provisions relate to definitions, rescission of foreclosure
consultant contracts, contracts, violations, waivers, and
remedies. Effective May 23, 2013. (HC)
Partial release of mortgage lien
Chapter 10 (HF 87*/SF 249) amends Minn. Stat. §
507.092 to allow for the recording of an affidavit of survivorship
to change the address where property tax statements
are sent, and amends Minn. Stat. § 507.403 to allow
for the filing of a partial release of a mortgage lien. The law
also updates filing requirements for common interest community
certificates of title. Effective Aug. 1, 2013. (PH)
Rental eviction appeal timeline and rent escrow
changes
Chapter 100 (HF 829*/SF 967) makes changes related to
landlord tenant law, specifically on the timelines for eviction
appeals and hearings when rent is held in escrow.
• Penalty to landlord. Section 1 amends Minn. Stat. §
504B.151, subd. 1 to provide a penalty of $500 if a landlord
subject to a foreclosure creates a lease longer than
allowed by statute.
• Sunset provisions. Section 2 and 3 remove sunset provisions
for foreclosure proceedings. Section 6 repeals a
section of law that would have gone into effect Jan. 1,
2015. Therefore, there will be no change in the current
foreclosure proceeding process.
• Judgment Appeal. Section 4 amends Minn. Stat. §
504B.371, subd. 2 to change the time for appealing a
judgment in an eviction action from 10 to 15 days.
League of Minnesota Cities

• Rent Escrow. Section 5 amends Minn. Stat. §
504B.385, subd. 5 allows a hearing to be scheduled in a
rent escrow case for violations in a residential building
even when the tenant files the required notice and no
rent is currently due to the landlord. This requirement
does not relieve the tenant of the obligation to deposit
rent that is due to the landlord after the filing of a hearing
notice but before the hearing with a court administrator.
Effective Aug. 1, 2013. (HC)
LAND USE AND GROWTH MANAGEMENT
Land use provisions in the omnibus jobs bill
Chapter 85 (HF 729*/SF 1057), the omnibus jobs, economic
development, housing, commerce, and energy bill,
contains the following provisions related to land use:
• Calculation of park dedication fees modified.
Article 5, section 41 amends Minn. Stat. § 462.358, subd.
2b, to clarify how a municipality must calculate a park
dedication fee charged to developers in lieu of dedicating
land for parks. Under current law, the fee must
be based on the fair market value of land, although fair
market value is not defined. The new law defines fair
market value as the value of the land as determined
by the municipality annually based on tax valuation or
other relevant data. The new law also creates a means
for resolving a dispute over the valuation. If a developer
objects, then the value shall be as negotiated by the parties
or based on the market value as determined by the
municipality based on an independent appraisal of land
in a same or similar land use category. The existing dispute
resolution provision in Minn. Stat. § 462.358, subd.
2c remains unchanged. Effective July 1, 2013.
• Minneapolis City & Park Board joint dedication
fee. Article 5, section 43 amends Laws 2008 chapter 366,
the session law relating to powers of the Minneapolis
Park and Recreation Board, to allow the Board and the
City of Minneapolis to jointly require land be dedicated
to the public, or to impose a park dedication fee, in
conjunction with a construction permit for new housing.
The law allows the cash fee to be set at a flat rate.
Effective the day after compliance by the governing body of both
entities with Minnesota Statutes, section 645.021, subdivisions
2 and 3, and applies to joint dedication fee ordinances adopted
before, on, or after that date, except that no dedication or fee can
be effective until after Dec. 31, 2013.
• St. Paul dedication fee. Article 5, section 44 authorizes
the City of St. Paul to require dedication of park
land or to impose a park dedication fee in conjunction
with a construction permit for new housing and commercial
and industrial development. The dedication or
fee must be imposed by ordinance and the ordinance
may exclude senior or affordable housing from the fee
or dedication. The cash fee may be set at a flat rate. The
law states that Minn. Stat. § 462.358, subd. 2b(b) and 2c
apply to the application and use of the dedication or fee.
Effective Jan. 1, 2014, and applies to ordinances adopted or
amended by the city before, on, or after that date.
(PH)
LIQUOR
Omnibus liquor bill
Chapter 42 (HF 746/SF 541*) is the omnibus liquor bill.
Following are provisions most relevant to cities:
• Brewer taproom license. Section 1 amends Minn.
Stat. § 340A.301, subd. 6b to allow cities with municipal
liquor stores to issue brewer taproom licenses. This
allows the sale of malt liquor produced by the brewer for
consumption on the premises or adjacent to the brewery.
Effective May 8, 2013.
• Distillery samples. Section 2 amends Minn. Stat. §
340A.301, subd. 6c which deals with microdistilleries.
A microdistillery may now provide samples of distilled
spirits on its premises. The samples may not be more
than 15 milliliters per variety per person and no person
can sample more than 45 milliliters in one day. Effective
May 8, 2013.
• Small brewer; license to distribute. Section 3 adds
subdivision 6d to Minn. Stat. § 304A.301 regarding
small brewer licensing and distribution of malt liquor.
A brewer licensed under subd. 6, clauses (c), (i), or (j)
may be issued a licensed by a municipality for off-sale of
malt liquor packaged by the brewer. Previously, a brewer
could produce no more than 3,500 barrels to make offsale
64 ounce containers commonly known as “growlers”.
This change increases that to 20,000 barrels. Section
4 makes conforming changes based on section 3. Effective
May 8, 2013.
• Interest in other business. Section 5 amends Minn.
Stat. § 340A.301, subd. 7 to decrease the amount of
product a brewer may make and self-distribute. Prior to
this change, the amount was set at 25,000 barrels and
now the cut-off is 20,000. Effective May 8, 2013.
• Malt liquor on-sale educator license and tastings.
Section 6 amends Minn. Stat. § 340A.4042 by
adding a subdivision to include malt liquor educator
on-sale licenses to wine educator licenses. The annual
cost is $250 per license and will be issued by the commissioner
of the Department of Public Safety. This will
allow malt liquor tastings and education to be conducted
the same as wine tastings. Section 7 amends Minn. Stat.
§ 340A.418 to add malt liquor to the statute regarding
wine tastings conducted by charitable, religious or other
nonprofit organizations. Effective July 1, 2013.
2013 Law Summaries Page 33

• Twin Cities in Motion temporary on-sale liquor
license. Section 8 amends session law 1999, chapter 202,
section 13 to update the liquor license for the Twin Cities
Marathon to reflect the change in name to “Twin
Cities in Motion.” Effective May 8, 2013.
• City of Winnebago craft beer festival sunset
extension. Section 9 amends a 2012 session law, chapter
235, section 8 to extend the sunset date of the city
council’s approval of the craft beer festival hosted by the
City of Winnebago to Dec. 31, 2013. Effective with local
council approval and compliance with Minn. Stat. § 645.021.
• Lowertown regional ballpark on-sale license. Section
10 amends Minn. Stat. § 340A.404 to allow for
intoxicating liquor to be sold at the St. Paul Saints ballpark.
Effective with local council approval and compliance with
Minn. Stat. § 645.021.
• Sake off-sale. Section 11 amends Minn. Stat. §
340A.301 allowing the City of Minneapolis to issue an
off-sale license for the sale of sake produced packaged
on the licensed premises. Effective with local council approval
and compliance with Minn. Stat. § 645.021.
• Valley Fair on-sale license. Section 12 amends Minn.
Stat. § 340A.404 to allow the City of Shakopee to issue
an on-sale intoxicating liquor license to Valley Fair. Effective
with local council approval and compliance with Minn.
Stat. § 645.021.
• Sixty percent requirement removed for Minneapolis
and St. Paul. Sections 13 and 14 amend Minn.
Stat. § 340A.404 to remove the 60 percent requirement
for Minneapolis and St. Paul as found in Minn. Stat. §
340A.404, subd. 5b. Effective with local council approval and
compliance with Minn. Stat. § 645.021.
• Wheeler Field on-sale license. Section 15 amends
Minn. Stat. § 340A.404 to allow the City of Duluth to
issue an on-sale intoxicating liquor license to Wheeler
Field for sale of 3.2 malt liquor at the concession stand
and approved dining area of the premises. Effective with
local council approval and compliance with Minn. Stat. §
645.021.
(AL)
Page 34
LOCAL LAWS
(Note: Local tax provisions contained in Chapter 143, the
omnibus tax bill, are summarized in the Taxes section.)
Officer Tom Decker Memorial Highway Designated
Chapter 12 (HF 146/SF 76*) adds a subdivision to Minn.
Stat. § 161.14. The new subdivision provides that Trunk
Highway 23 from the east border of the township of
Wakefield to the west border of the City of Richmond is
designated as “Officer Tom Decker Memorial Highway.” It
requires the commissioner of the Minnesota Department
of Transportation to adopt a suitable design to mark this
highway and erect appropriate signs. Effective Aug. 1, 2013.
(AF)
Authority to negotiate certain agreements
expanded to Hennepin County
Chapter 41 (HF 1195*/SF 1111) amends a special law
(Laws 1988, chapter 471, section 1, subd. 1, as amended by
Laws 1994, chapter 450, section 1, and Laws 1996, chapter
276, section 1) that currently applies to Minneapolis
and the Minneapolis Public School District. Chapter 41
expands this law to include Hennepin County. It would
allow the county to negotiate agreements concerning hiring
and terms and conditions of employment for skilled
trade and craft workers and apprentices with local labor
organizations representing the trades. Persons hired under
the agreements would then be exempt from the classified
service of Hennepin County. Effective Aug. 1, 2013. (AF)
Local power line planning requirements
Chapter 57 (*SF521/HF623) Section 2 of this act
addresses a local high-voltage power line siting controversy
in Plymouth. It requires a certificate of need determination
and adds some specific criteria that must be determined
before the siting process can continue. Effective the day following
final enactment, and applies to route permits and certificate
of need applications pending on or after that date. (CJ)
Local law provisions in the omnibus economic
development budget bill
Chapter 85 (HF 729*/SF 1057), the omnibus jobs, economic
development, housing, commerce, and energy bill,
contains the following local law provisions:
• Agricultural processing facility, City of Morris.
Article 1, section 2, subd. 2(r) makes a one-time grant of
$750,000 to the City of Morris for loans or grants to an
agricultural processing facility to make energy efficient
improvements. The grant requires a match of $1.25 million
from nonpublic sources. Effective July 1, 2013.
• Hockey Hall of Fame, City of Eveleth. Article 5,
section 24, makes permanent a temporary distribution
of the taconite tax to the City of Eveleth to support
the Hockey Hall of Fame, provided that it continues to
operate in the city. Eveleth must also secure donations
from other donors to receive the distribution. Effective
July 1, 2013.
• RiverCentre Arena, City of St. Paul. Article 5,
section 47 reduces the amount of the RiverCentre
loan repayment by $500,000 for fiscal years 2014 and
2015. The scheduled repayments for fiscal years 2016-
2021 will not be paid to the state, but, rather, must
be used to make arena improvement mutually agreed
upon by the lessee and St. Paul’s lease representative.
Effective July 1, 2013.
League of Minnesota Cities

• Whiskey Road improvements, City of Biwabik.
Article 5, section 48 states that money held by St. Louis
County for the Biwabik Whiskey Road improvement must
accrue interest at market rate and be used for improvements
to the road near Biwabik. Effective July 1, 2013.
(PH)
Local provisions in omnibus transportation policy
act
Chapter 127 (HF 1416/SF 1270*) is the omnibus transportation
policy act. Summarized below are provisions
pertaining to specific cities or regions. (Note: Other provisions
in Chapter 127 are summarized in the Transportation
section of the 2013 Law Summaries.)
• Pedestrian skyway connection required for Central
Station. Section 61 is a 2013 Session Law. It
requires the City of St. Paul to include construction or
establishment of access to a pedestrian skyway system as
part of the initial transit line construction of the Central
Station on the Central Corridor light rail transit line.
The council and city must ensure that public access to
the pedestrian skyway system is provided by an elevator
located at the site of the station. Effective May 25, 2013.
• U.S. Highway 53 relocation project authorized.
Section 65 is a 2013 Session Law requiring that in
selecting the preferred alternative for the project involving
the relocation of marked U.S. Highway 53 between
Eveleth and Virginia, the commissioner of the Minnesota
Department of Transportation (MnDOT) must:
(1) prioritize as a District 1 project, the acceleration of
the scoping, relocation, design, and construction of this
highway; (2) consider the economic and social impacts
on the cities of Virginia, Eveleth, Gilbert, and Mountain
Iron, and not select an alternative that will impose
undue negative impact on the economies of these cities;
and (3) refrain from closing the existing U.S. Highway
53 corridor until construction of the rerouted highway
is complete and the highway is open to vehicle traffic.
Effective May 25, 2013.
• Legislative Route 235 in Otter Tail County
removed. Section 66 amends Minn. Stat. repeals Minn.
Stat. § 161.115, subd. 166 one day after the commissioner
of MnDOT receives a copy of the agreement
between the commissioner and the governing body of
Otter Tail County to transfer jurisdiction of Legislative
Route No. 235 and notifies the revisor of statutes. Effective
one day after the commissioner of MnDOT receives a copy
of the agreement between the commissioner and the governing
body of Otter Tail County.
• Legislative Route 256 in Blue Earth County
removed. Section 67 repeals Minn. Stat. § 161.115, subdivision
187, is repealed effective the day after the commissioner
of MnDOT receives a copy of the agreement
between the commissioner and the governing body of
Blue Earth County to transfer jurisdiction of Legislative
Route No. 256 and notifies the revisor of statutes. Effective
one day after the commissioner of MnDOT receives a copy
of the agreement between the commissioner and the governing
body of Blue Earth County.
• Red Wing Shoes sign required. Section 68 is a
2013 Session Law. It provides that the commissioner of
MnDOT, after being assured of adequate funding from
nonstate sources, must erect a specific service sign (for
Red Wing Shoes) on the east side of marked Trunk
Highway 52, near its intersection with 37th Street NW
in Olmsted County. The sign must display the name or
business panel, or both, of a retail establishment on the
east side of marked Trunk Highway 52 that began operation
before construction of the noise wall on the east
side of marked Trunk Highway 52, and the premises of
which is blocked from view by the noise wall. Effective
when nonstate funds are available.
• Signage on Trunk Highway 47 in Anoka required.
Section 69 is a 2013 Session Law. It requires that by
Aug. 1, 2013, the commissioner of MnDOT must erect
additional signage on marked Trunk Highway 47 at the
intersection with McKinley Street in Anoka indicating
the turning and through lane requirements for the intersection.
The City of Anoka must reimburse the commissioner
for the signage. Effective May 25, 2013.
(AF)
Special freight distribution authorized for west central
Minnesota
Chapter 140 (HF 316*/SF 300) creates Minn. Stat. §
169.868. It allows annual permits for truck weights above
the restricted amount in MnDOT District 4 to haul freight
to or from a distribution facility that is constructed on or
after July 1, 2013. MnDOT District 4 serves Becker, Big
Stone, Clay, Douglas, Grant, Mahnomen, Otter Tail, Pope,
Stevens, Swift, Traverse, and Wilkin counties.
• Six-axle vehicles weight limit increase allowed
by permit. Subdivision 1 allows a road authority to
issue an annual permit for a vehicle or combination of
vehicles with a combination of six or more axles to haul
freight and to be operated with a gross vehicle weight
up to: (1) 90,000 pounds; and (2) 99,000 pounds during
the period set by the commissioner of MnDOT under
Minn. Stat. § 169.826, subd. 1. The fee for a permit
issued under this subdivision is $300.
• Seven-axle vehicles weight limit increased by permit.
Subdivision 2 allows a road authority to issue an
annual permit for a vehicle or combination of vehicles
with a combination of seven or more axles to haul
freight and to be operated with a gross vehicle weight
up to: (1) 97,000 pounds; and (2) 99,000 pounds during
the period set by the commissioner of MnDOT under
Minn. Stat. § 169.826, subd 1. The fee for a permit issued
under this subdivision is $500.
2013 Law Summaries Page 35

• Restrictions provided. Subdivision 3 provides that
vehicles issued permits under this section must comply
with all requirements and restrictions in Minn. Stat.
§ 169.865, subd. 3. A vehicle may be operated under a
permit issued under this section only to haul freight to
or from a distribution facility that is: (1) constructed on
or after July 1, 2013; and (2) located within MnDOT
District 4.
• Deposit of revenues provided. Subdivision 4 provides
that revenue from the permits issued by MnDOT
under this section must be deposited in the bridge
inspection and signing account as provided under Minn.
Stat. § 169.86, subd 5b.
Effective May 25, 2013. (AF)
Disaster aid provided to southwest Minnesota
Chapter 141 (HF 1832/SF 1656*) is a 2013 Session Law.
It provides $1.5 million from the general fund in fiscal year
2014 to the commissioner of the Department of Public
Safety for the purposes specified in Minn. Stat. § 12A.15,
subdivision 1, to match federal disaster assistance for the
severe winter storm that occurred April 9, 2013, through
April 11, 2013, in the area designated under Presidential
Declaration of a Major Disaster FEMA-4113-DR. It
also provides $250,000 from the general fund in fiscal year
2014 to the commissioner of the Department of Public
Safety for the purposes specified in Minn. Stat. § 12A.15,
subds. 2 and 2a, to remove debris and provide long-term
recovery assistance for the same area. Effective May 25,
2013. (AF)
Page 36
MISCELLANEOUS
Campaign finance modifications
Chapter 131 (SF 661*/HF 863) makes a number of
changes to the procedures and standards for campaign
finance regulation and reporting, including increasing
campaign spending and contribution limits for certain
candidates and increasing thresholds for registration and
reporting by certain types of entities. The law also expands
the Campaign Finance and Public Disclosure Board’s
enforcement authority to include certain provisions of
the Fair Campaign Practices Act. Article 2 amends Minn.
Stat. § 10A.01, subd. 35 expanding the definition of “public
official” to include: district court judge, appeals court
judge, or Supreme Court justice; and county commissioner.
City officials and employees are not included in the
definition. Effective May 25, 2013. (AL)
Determining legislator salary
Chapter 124 (HF 1823*/SF 533) proposes an amendment
to article IV, section 9 of the Minnesota constitution.
Currently, legislator salary is determined by law and
the amendment would ask voters if the constitution should
be amended to remove legislators’ ability to set their own
salaries. Alternatively, a council would be established comprised
of: one person who is not a judge from each congressional
district, appointed by the chief justice of the
Supreme Court; and one member from each congressional
district, appointed by the governor. No member of the
council can be a former or current legislator or lobbyist.
The council must prescribe salaries by March 31 of each
odd-numbered year with any changes in salary to take
effect on July 1 of that year. The amendment will be presented
to voters in the 2016 general election. (AL)
Geospatial data sharing with government entities
Chapter 96 (HF 1390*/SF 1298) amends Minn. Stat. §
16E.30 updating provisions in the Geospatial Information
Office. Of note for cities is section 4 requiring that electronic
geospatial government data must be shared at no cost
with government entities. A release of data must include
metadata or other documentation that identifies the original
authoritative data source. Government entities providing
data under this subdivision are not required to provide
data in an alternate format nor are they required to provide
the same data to the same requestor more than four times
per year. Government entities and agencies sharing and
receiving electronic geospatial data under this subdivision
are immune from civil liability arising out of the use of the
shared electronic geospatial data and this does not authorize
the release of data that are not public data. Effective May 25,
2013. (AL)
Hospital reports required
Chapter 51 (HF 588*/SF 471) is a 2013 Session Law that
requires a hospital staffing report and a study on nurse
staffing levels and patient outcomes.
• Hospital staffing report required. Section 1 provides
that the chief nursing executive or designee
of every hospital licensed under section 144.50 will
develop a core staffing plan for each care unit. Prior to
submitting the core staffing plan, hospitals must consult
with representatives of the hospital medical staff, managerial
and non-managerial care staff, and other relevant
hospital personnel about the core staffing plan and the
expected average number of patients upon which the
staffing plan is based. Any substantial changes to the core
staffing plan must be updated within 30 days. It requires
hospitals to submit a core staffing plan to the Minnesota
Hospital Association (MHA) by Jan. 1, 2014, and
requires MHA to post each hospital’s core staffing plan
on its Minnesota Hospital Quality Report website by
April 1, 2014. It also requires that on a quarterly basis,
the MHA include each hospital’s actual direct patient
care hours per patient per unit. Beginning on July 1,
2014, and quarterly thereafter, hospitals must submit
direct patient care reports to MHA.
League of Minnesota Cities

• Nursing study required. Section 2 requires the
Department of Health to convene a work group to
consult with the department as they study the correlation
between nurse staffing levels and patient outcomes.
This report must be presented to the chairs and ranking
minority members of the health and human services
committees in the House of Representatives and the
Senate by Jan. 15, 2015.
• Appropriation provided. Section 3 provides $187,000
in fiscal year 2014 and $65,000 in fiscal year 2015 from
the general fund to the commissioner of the Department
of Health for the completion of the study in section 2.
This is a one-time appropriation.
Effective July 1, 2013. (AF)
Lawful gambling modifications
Chapter 79 (SF 1006*/HF 1060) makes changes related to
lawful gambling, record keeping and other regulatory provisions.
• Increased threshold for annual financial audits.
Section 1 amends Minn. Stat. § 297E.06, subd. 4. Under
current law, licensed organizations with gross receipts
of more than $500,000 must have an annual financial
audit of lawful gambling activities and funds. This section
changes the threshold for required annual audits to
$750,000. Organizations with less than $750,000 in gross
receipts are only required to conduct a financial audit
when the Commissioner of Revenue requires it.
• Linked bingo game provider license application
attachment. Section 2 amends Minn. Stat. § 349.1632,
subd. 3 to change an amount certain to a minimum
amount for a bond required for a linked bingo game
provider to obtain a license. The bond secures payment
of all linked bingo prizes. Under current law, an applicant
for a linked bingo game provider license must provide
evidence of a bond of $100,000. As modified in this
section, the bond must be for “not less than” $100,000.
• Off-site permits increase. Section 3 amends Minn.
Stat. § 349.165, subd. 5 to increase from four to 12 the
number of events in a calendar year that a licensed organization
may conduct on a premise that is not its permitted
premise in conjunction with a county fair, the
State Fair, a church festival, or a civic celebration. The
organization must first obtain authorization as required
in Minn. Stat. § 349.213.
• Increase in time limit for deposit of gambling
receipts. Section 4 amends Minn. Stat. § 349.19, subd.
2 to increase from two to four the number of business
days in which gambling receipts from all electronic pulltab
games and all linked electronic bingo games must be
deposited into the gambling bank account.
• Pull-tab records. Section 5 amends Minn. Stat. §
349.19, subd. 10 to increase the dollar amount of a paper
pull-tab prize that requires the winner to present identification
in the form of a driver’s license, Minnesota
identification card or other identification the Gambling
Control Board deems sufficient to allow the identification
and tracking of the winner.
• Pull tab reporting requirements. Section 6 is a new
section permitting the commissioner of revenue to
require a onetime closing of all currently active electronic
pull-tab games on May 31, 2013, for the purpose
of moving to a uniform system of reporting for electronic
pull-tab game activities on a monthly basis.
Effective May 21, 2013. (AL)
Metropolitan Council redistricting
Chapter 66 (SF 1564*/HF1684) amends Minn. Stat. §,
473.123 by repealing subd. 3d, and adding a new subdivision
to adopt the MC2013-4, the metropolitan redistricting
plan. The council consists of 17 members all appointed
by the governor, subject to the advice and consent of the
Senate. Sixteen members are from districts, and the chair
is appointed from the region at large. The members all
serve at the pleasure of the governor. The Legislature must
redraw the boundaries of the council districts after each
decennial federal census so that each district has substantially
equal population. Redistricting is effective in the year
ending in the number “3.” Within 60 days after a redistricting
plan takes effect, the governor must appoint members
from the newly drawn districts. Maps illustrating the proposed
new boundaries for each council district are available
at http://bit.ly/17zEgBi. Effective May 16, 2013.
(AL)
MN.IT Services
Chapter 134 (HF1389*/SF1245) makes various changes
in the laws governing the Office of Enterprise Technology.
This agency is also known as MN.IT Services. The bill
changes all references to the “Office of Enterprise Technology”
to “Office of MN.IT Services.” The bill also makes
changes governing state finance and budget provisions
and the role of Minnesota Management and Budget
(MMB). The following provisions are relevant to cities:
• Statewide Radio Board membership. Section 27
amends Minn. Stat. § 403.36, subd. 1 by removing the
commissioner of Management and Budget as a member
on the Statewide Radio Board. (Note: See Public Safety
section for further details on changes to the Statewide Radio
Board.)
• Compilation of local impact notes. Section 6, subd
2 amends Minn. Stat. § 3.989, subd. 2 permits the commissioner
of management and budget to post a copy of
all local impact notes to the agency website.
Effective May 24, 2013. (LZ)
2013 Law Summaries Page 37

Motor vehicle fuel payment
Chapter 67 (HF 1284*/SF 1131) adds a new section of
law to Minn. Stat. § 325E.08 regarding trade practices.
Minn. Stat. § 325E.085 prohibits restriction on sale of
motor fuel in that no local unit of government can require
any particular form of payment for motor fuel sales. Effective
May 17, 2013. (AL)
Page 38
PENSIONS AND RETIREMENT
Pension plan officers required to report certain
unlawful acts
Chapter 35 (HF 441/SF 324*) amends Minn. Stat. §
609.456, subd.1, the law requiring public employees and
officers to report suspected theft, embezzlement, or unlawful
use of public property to law enforcement and the state
auditor. The chapter expands the provision to include officers
of local pension plans. Effective Aug. 1, 2013. (AF)
Omnibus pensions act
Chapter 111 (HF 629/SF 489*) is the omnibus pensions
act. It enacts the recommendations of the Legislative Commission
on Pensions and Retirement (LCPR). The chapter
contains 16 articles and over 20 stand-alone bills. Notably,
Article 11 contains the Public Employees Police and Fire
Retirement Plan (PERA-P&F) financial solvency plan,
which include an employer contribution increase of 1.8
percent of salary, phased in over two years. The PERA P&F
solvency plan and other provisions of interest to cities are
summarized below.
Article 3: PERA administrative provisions
• Student employee exclusion. Section 1 amends
Minn. Stat. § 353.01, subd. 2b and excludes from PERA
coverage student employees in a work-study program if
the position is for five years or less. Current law excludes
student employees if the position is for three years or
less. Effective May 24, 2013.
• Overtime credit during military service allowed.
Section 2 amends Minn. Stat. § 353.01, subd. 16 to
remove the prohibition against use of overtime salary
from the USERRA-compliant military service credit
purchase provision. Effective May 24, 2013.
• Average salary for survivor benefits defined. Section
3 amends Minn. Stat. § 353.01, subd. 7 to redefine
“average salary” for determining surviving spouse and
dependent child benefits. Average salary is defined as the
average of the full-time monthly base salary rate for the
last six months of allowable service. Part-time service
must be prorated based on actual hours worked. Effective
May 24, 2013.
• Designated beneficiary definition expanded. Section
4 changes the definition of “designated beneficiary”
to include trusts, estates, or persons legally authorized to
act on behalf of the member, and amends Minn. Stat. §
353.01, subd. 29 to require beneficiary designations to
be made on or before the date of death of the member
and in the form prescribed by the executive director.
Effective May 24, 2013.
• Social Security leveling option. Section 28 amends
Minn. Stat. § 356.415, subd. 1 and eliminates a Social
Security leveling option from the post-retirement adjustment
provisions. Effective Jan. 1, 2014.
Article 6: Volunteer firefighter retirement changes
• Deadline for cost analysis review. Section 3 amends
Minn. Stat. § 353G.05, subd. 2 by increasing the deadline
for a municipality to act upon a volunteer fire department
election to join the statewide volunteer firefighter
plan from 90 to 120 days from receipt of the PERA cost
analysis document. Effective July 1, 2013.
• Fiscal year defined. Section 4 defines the fiscal year as
the calendar year for volunteer firefighter relief associations,
amending Minn. Stat. § 424A.001. Effective May 24,
2013.
• Service breaks. Section 5 amends Minn. Stat. §
424A.01, subd. 6 and clarifies specific federal and state
laws that under which breaks in service are exempted
from the general law regarding service breaks. Effective
May 24, 2013.
• Service separation definition. Section 6 clarifies an
existing exception to the service separation requirement
for volunteer firefighter associations under Minn. Stat. §
424A.015, subd. 1. Effective May 24, 2013.
• Deferred service interest rate approval. Section 9
amends the deferred service pension provisions of the
volunteer firefighter relief association under Minn. Stat.
§ 424A.02, subd. 7. Any change in the interest rate paid
during a period of deferral of a lump-sum service pension
must be approved by the governing body of the
municipality or the independent nonprofit firefighting
corporation. Effective Jan. 1, 2014.
• Supplemental survivor benefit payment. Section 11
amends Minn. Stat. § 424A.10, subd. 2 to require that an
association pay a supplemental survivor benefit whenever
it pays lump-sum survivor benefit, regardless of
whether such payment is authorized by the bylaws. Effective
May 24, 2013.
• White Bear Lake payment option. Section 12 permits
the White Bear Lake Volunteer Firefighter Relief
Association to provide a $2,000 lump-sum death benefit
to the estates of firefighters with at least 20 years of service
who retired before 2009. Effective with compliance by
the City of White Bear Lake with Minn. Stat § 645.021.
Article 8: Miscellaneous provisions
• State Board of Investment information provided.
League of Minnesota Cities

Section 1 creates a new statute, Minn. Stat. § 6.496, that
requires that the State Board of Investment to annually
provide all volunteer firefighter relief associations with:
(1) basic information on enrollment options and participation
in the statewide volunteer firefighter retirement
plan: and (2) recent and historic investment performance
results of the Minnesota supplemental investment fund
and options for participation in the fund. Effective July 1,
2013.
• Development of early retirement factors. Section
3 requires the PERA Board to approve early retirement
and optional annuity factors, subject to approval by the
LCPR, and to establish an implementation schedule,
under Minn. Stat. § 353.03, subd. 3. Effective Aug. 1, 2013.
Article 10: PERA salary definitions
• Section 1 amends Minn. Stat. § 353.01, subd. 10 by
revising the definition of salary as follows:
• Expands periodic compensation to include of
employee retirement contributions designated as
“picked up” contributions under Minn. Stat. § 356.62.
• Expands periodic compensation to include employee
contributions to a supplemental plan or governmental
trust to save for postretirement health care expenses
under Minn. Stat. § 356.24, subd. 1(7).
• Expands periodic compensation to include nonwrongful-discharge
salary reductions remedied
through a grievance, settlement, or court order, including
any applicable pay increases that would have otherwise
been earned.
• Expands periodic compensation to include amounts
paid during a personal, parental, or military leave of
absence.
• Expands periodic compensation to include amounts
paid during an authorized medical leave of absence
if specified in advance to be at least one-half but no
more than equal to the earnings received during the
six months immediately preceding the leave.
• Expands periodic compensation to include the compensation
paid an employee for attaining or exceeding
performance goals, duties, or measures during a specified
period of employment.
• Excludes from periodic compensation any unused
annual leave in the form of lump-sum or periodic
payments from periodic compensation.
• Excludes from periodic compensation the payment to
another person of the value of hours donated under a
benevolent vacation, personal, or sick leave donation
program.
• Excludes from periodic compensation retirement
incentive payments.
• Excludes from periodic compensation per diem payments.
• Excludes from periodic compensation disability insurance
payments, including payments from an employer
self-insurance arrangement.
• Specifies the particular forms of fringe benefits that
are excluded from periodic compensation. Excluded
fringe benefits include, but are not limited to:
employer-paid premiums or supplemental contributions
for all types of insurance; membership dues
for fitness or recreational facilities; payments or cash
awards for a wellness program; the value of any nonmonetary
benefits; any form of payment made in
lieu of an employer-paid fringe benefit; an employerpaid
amount to a deferred compensation or tax-sheltered
annuity program; and any amount paid by the
employer as a supplement to salary that is not available
to the employee as cash.
Effective May 24, 2013.
Article 11: PERA P&F financial solvency measures
• Average salary definition. Section 1 amends Minn.
Stat. § 353.01, subd. 17a to include as part of “average
salary” the salary of an employee earned after the
employee reaches the new allowable service limit in
Minn. Stat. § 356.651, subd. 3 (See, Section 8 below).
Effective May 24, 2013.
• Duty disability definition. Section 2 amends Minn.
Stat. § 353.01, subd. 41 and redefines “duty disability.” A
duty disability must now be the direct result of an injury
arising out of inherently dangerous duties. Previous law
stated that the injury must arise out of duties specific to
protecting the property and personal safety of others and
that present inherent dangers. Effective May 24, 2013.
• 20-year vesting period for new hires. Section 3
amends Minn. Stat. § 353.01, subd. 47 by establishing a
20-year proportional vesting periods for new hires beginning
in 2014. A person who joins the plan after July 1,
2014, becomes vested at 50 percent after 10 years, and an
additional 10 percent per year until reaching 100 percent
after 20 years. Effective Aug. 1, 2013, and applies to persons
who become members of the association on or after July 1, 2014.
• Disability benefit application requirements. Section
4 amends § Minn. Stat. § 353.31, subd. 4 by requiring
that an application for disability benefits contains (1)
a “clear explanation” of any duties the individual cannot
perform, and (2) an explanation of why the employer
may or may not authorize continued employment to the
applicant in the current or other position. Effective May
24, 2013.
• Clarification of refund rights. Section 5 makes conforming
changes to Minn. Stat. § 353.35 to clarify that
the new allowable service limit in Minn. Stat. § 356.651,
subd. 3 (See, Section 8 below), does not result in forfeiture
of salary credit. Effective May 24, 2013.
• Employee contribution increase. Section 6 amends
Minn. Stat. § 353.65, subd. 2 to increase the employee
2013 Law Summaries Page 39

contribution rate from 9.6 percent of salary to 10.2 percent
of salary in calendar year 2014, and to 10.8 percent
of salary in calendar year 2015 and thereafter. Effective
May 24, 2013, and will apply to all wages paid in the first
paycheck issued after Jan. 1, 2014 ,regardless of whether the
pay period covers dates prior to 1/1/2014.
• Employer contribution increase. Section 7 amends
Minn. Stat. § 353.65, subd. 3 to increase the employer
contribution rate from 14.4 percent of salary to 15.3
percent of salary in calendar year 2014, and to 16.2 percent
of salary in calendar year 2015 and thereafter. Effective
May 24, 2013, and will apply to all wages paid in the
first paycheck issued after Jan. 1, 2014, regardless of whether
the pay period covers dates prior to 1/1/2014.
• Retirement annuity formula changes. Section 8
makes changes to the retirement annuity formula in
Minn. Stat. § 353.651, subd. 3:
• To reflect the new 20-year vesting period, the annuity
formula will be multiplied by the appropriate vesting
percentage, as opposed to per year of service.
• For members first enrolled after June 30, 2014, the
allowable service included in the annuity calculation
is capped at 33 years and the retirement annuity must
not exceed 99 percent of the average salary.
• For new members who exceed 33 years of allowable
service, a prorated share of the excess service must be
refunded to the member.
Effective May 24, 2013.
• Retirement penalty increased. Section 9 makes
changes to the early retirement provisions in Minn. Stat.
§ 353.651, subd. 4. The early retirement reduction factor
is changed from 1.2 percent per year (2.4 percent for
post-June 2007 retirements) to 5 percent per year, and is
phased in over a period of 5 years, beginning on July 1,
2014. Effective May 24, 2013.
• Maximum family benefit. Section 11 amends Minn.
Stat. § 353.657, subd.3a to specify that in the event that
family benefit cap is reached, the benefit reduction must
be made proportionately on the annuitant, surviving
spouse, and dependent children. Effective May 24, 2013.
• Postretirement adjustments for PERA General.
Section 13 makes changes to the annual postretirement
adjustments in Minn. Stat. § 356.415, subd. 1b. The
annual adjustment remains at 1 percent until the plan
reaches funding stability, which occurs when the market
value of the retirement plan meets or exceeds 90 percent
of the actuarial accrued liabilities in the two most
recent consecutive actuarial valuations. When funding
stability is reached, the annual postretirement adjustment
increases to 2.5 percent. After funding stability is
reached, the postretirement adjustment will decrease to
1 percent in subsequent years if the funding level of the
plan drops to 85 percent for two consecutive actuarial
valuations, or drops to 80 percent for the most recent
actuarial valuation.
Page 40
• Postretirement adjustments for PERA P&F. Section
14 makes changes to the annual postretirement
adjustments in Minn. Stat. § 356.415, subd. 1c. The current
1 percent annual postretirement adjustment remains
in place for current and near-term retirees, and delays
the first retirement increase paid to new retirees for three
years beginning on July 1, 2014.
• When funding stability is reached, the annual postretirement
adjustment increases to 2.5 percent. After
funding stability is reached, the postretirement adjustment
will decrease to 1 percent in subsequent years if
the funding level of the plan drops to 85 percent for
two consecutive actuarial valuations, or drops to 80
percent for the most recent actuarial valuation.
Article 15: Voluntary membership dues reduction.
• Section 1 amends Minn. Stat. § 356.91 to require that
the director of the Minnesota State Retirement System
(MSRS) or PERA, upon request of the annuitant,
must deduct from the retirement annuity an amount to
be paid as membership dues or other payments to the
labor union representing retired employees of which the
annuitant is a member. Such payments shall be made on
a monthly basis.
• Section 1 authorizes the labor union that is the exclusive
bargaining unit representing public employees or
retired public employees to conduct blind mailings
containing voluntary membership information or dues
deduction cards to annuitants of MSRS or PERA. The
organization must pay all costs associated with the mailing.
Alternatively, PERA or MSRS may transmit contact
information to a mailing center to perform a blind mailing,
pursuant an agreement stating that neither the labor
organization nor any other group may have access to the
data.
• Section 1 limits the number of mailings to two per year
and states that the mailings may not be used for the purpose
of supporting or opposing any candidate, political
party, or ballot measure.
Various effective dates. (PH)/(GC)/(AF)
Fire and police department aid threshold for financial
reports and audits modified
Chapter 123 (HF 853*/SF 746) amends Minn. Stat. §
69.051, subd. 1 by increasing the threshold at which the
board of a salaried firefighters relief association, police
relief association, and volunteer firefighters relief association
must prepare a financial report from assets of at least
$200,000 to assets of at least $500,000. Effective Aug. 1,
2013. (AF)
League of Minnesota Cities

PUBLIC SAFETY
Omnibus public safety finance act
Chapter 86 (HF 724/SF 671*) is the omnibus public safety
act. The chapter contains appropriations related to public
safety, courts, corrections, and transportation. The chapter
spends just under $1.96 billion for the FY 2014-2015
biennium. Summarized below are provisions that may be
of interest to cities.
Article 1: Appropriations for FY 2014 and 2015
Article 1 contains appropriations for the following state government
entities: Supreme Court, Court of Appeals, Trial
Courts, Guardian ad Litem Board, Tax Court, Uniform Laws
Commission, Board on Judicial Standards, Board of Public
Defense, Department of Public Safety, Peace Officers Standards
and Training Board, Private Detective Board, Department
of Human Rights, Department of Corrections, and
Sentencing Guidelines Commission.
• Supreme Court appropriation provided. Section 3
appropriates $44.548 million for FY 2014 and $45.191
million for FY 2015 to the Supreme Court. Effective July
1, 2013.
• Supreme Court operations funded. $32.282 million
in FY 2014 and $32.925 million in 2015 is for Supreme
Court operations. This represents an approximately $3
million funding increase over the previous biennium.
Effective July 1, 2013.
• Civil legal services funded. $12.266 in 2014 and
$12.266 million in 2015 is for civil legal services. This
represents a funding increase of over $1 million over the
previous biennium. Effective July 1, 2013.
• Court of Appeals appropriation provided. Section
4 provides $10.641 in 2014 and $11.035 million in
2015 to the Court of Appeals. This amount represents an
approximately $5,000 increase over the previous biennium.
Effective July 1, 2013.
• District Courts appropriation provided. Section
5 provides $247.459 million in 2014 and $256.622 in
2015 to fund district courts. This amount represents an
approximately $9 million increase over the previous
biennium. Effective July 1, 2013.
• Tax Court appropriation provided. Section 7 appropriates
$1.023 million in 2014 and $1.035 million in
2015 for Tax Court. This represents an approximately
$400,000 increase over the previous biennium. It specifies
that $161,000 each year is for two law clerks, continuing
legal education costs, and Westlaw costs; and that
$25,000 each year is for the implementation and maintenance
of a modern case management system. Effective
July 1, 2013.
• Uniform Laws Commission funded. Section 8
appropriates $147,000 in 2014 and $84,000 in 2015 to
the Uniform Laws Commission. This amount represents
an increase of approximately $140,000 over the previous
biennium. $63,000 the first year is to pay back dues
owing to the National Conference of Commissioners on
Uniform State Laws. Effective July 1, 2013.
• Board on Judicial Standards funded. Section 9
appropriates $756,000 in 2014 and $456,000 in 2015 to
the Board on Judicial Standards. This amount represents
a $10,000 increase over the previous biennium. Of this
amount, $300,000 the first year is for deficiencies occurring
in fiscal year 2013. $125,000 each year is for special
investigative and hearing costs for major disciplinary
actions undertaken by the board. Effective July 1, 2013.
• Board of Public Defense funded. Section 10 appropriates
$70.698 million in 2014 and $73.612 million
in 2015 to the Board of Public Defense. This amount
represents an approximately $12 million over the previous
biennium. From this appropriation, the board must
pay all outstanding billings as of June 30, 2013, for transcripts.
By Jan. 15, 2014, and by Jan. 15, 2015, the board
must report to the chairs and ranking minority members
of the House of Representatives and Senate committees
with jurisdiction over criminal justice and judiciary
finance on how this appropriation was spent, including
information on new attorney and staff hires, salary
and benefit increases, caseload reductions, technology
improvements, and transcript costs and billings. Effective
July 1, 2013.
• Sentencing Guidelines Commission funded. Section
11 appropriates $886,000 in 2014 and $586,000
in 2015 to the Sentencing Guidelines Commission.
$300,000 the first year is for a transfer to the Office
of Enterprise Technology for an electronic sentencing
worksheet system. Any ongoing information technology
support or costs for this application shall be incorporated
into the service-level agreement and shall be paid to the
Office of Enterprise Technology. Effective July 1, 2013.
• Department of Public Safety funded. Section 12
appropriates $157.851 million in 2014 and $161.191
million in 2015 to the Department of Public Safety
(DPS). This amount is approximately the same as the
appropriation made in the previous biennium.
• Hazmat and chemical assessment teams funded.
$604,000 each year is from the fire safety account in the
special revenue fund. These amounts must be used to
fund the hazardous materials and chemical assessment
teams. Effective July 1, 2013.
• School Safety Center reinstated. $455,000 the first
year and $405,000 the second year from the general fund
are to reinstate the School Safety Center and to provide
for school safety. The commissioner of the DPS is
directed to work collaboratively with the School Climate
Council and the School Climate Center established
under Minn. Stat. § 121A.07 and 127A.052. By Jan. 15,
2014, and by Jan. 15, 2015, the commissioner of the DPS
2013 Law Summaries Page 41

must report to the chairs and ranking minority members
of the Senate and House of Representatives committees
with jurisdiction over criminal justice and judiciary
funding on how this appropriation was spent. The report
must specify the results achieved by the school safety
center and the level of cooperation achieved between
the commissioner and the School Climate Council and
school climate center. Effective July 1, 2013.
• Bureau of Criminal Apprehension funded. $47.588
million in 2014 and $47.197 million in 2015 are appropriated
to the Bureau of Criminal Apprehension (BCA).
This amount represents an approximate $10 million
increase over the previous biennium. $1.941 million
each year is from the trunk highway fund for laboratory
analysis related to driving-while-impaired cases. $50,000
the first year and $580,000 the second year from the
general fund and $3 million the first year and $2 million
the second year from the vehicle services account in
the special revenue fund are to replace the state’s criminal
history system. $1.36 million the first year and $1.36
million the second year from the general fund are to
replace the state’s crime reporting system. $125,000 the
first year and $125,000 the second year from the general
fund and $125,000 the first year and $125,000 the
second year from the trunk highway fund are to replace
forensic laboratory equipment at the BCA. $200,000 the
first year and $200,000 the second year from the general
fund and $200,000 the first year and $200,000 the
second year from the trunk highway fund are to improve
forensic laboratory staffing at the BCA. $310,000 the
first year and $389,000 the second year from the general
fund are to maintain Livescan fingerprinting machines.
The BCA’s general fund base is reduced by $1,720,000
in fiscal year 2014 and $2,329,000 in fiscal year 2015 to
reflect one-time appropriations. Effective July 1, 2013.
• State Fire Marshal funded. $9.555 million in 2014
and $9.555 million in 2015 is appropriated to the State
Fire Marshal. This appropriation is from the Fire Safety
Account in the special revenue fund. $2.368 million
the first year and $2.368 million the second year are for
transfers to the general fund under Minn. Stat. § 297I.06,
subd. 3. (which provides that these funds are transferred
from the Fire Safety Account in the special revenue fund
to the general fund to offset the loss of revenue caused
by the repeal of the one-half of 1 percent tax on fire
insurance premiums). Effective July 1, 2013.
• Alcohol and Gambling Enforcement. $2.485 million
in 2014 and $2.485 million in 2015 are appropriated
to Alcohol and Gambling Enforcement. This
amount represents an approximately $400,000 increase
over the previous biennium. $653,000 each year is from
the alcohol enforcement account in the special revenue
fund. Of this appropriation, $500,000 each year must
be transferred to the general fund. $250,000 each year
is appropriated from the Lawful Gambling Regulation
Page 42
Account in the special revenue fund.
Effective July 1, 2013.
• Office of Justice Programs funded. $36.106 million
in 2014 and $36.106 million in 2015 are appropriated to
the Office of Justice Programs. This amount represents
an approximately $6 million increase over the previous
biennium. $1.5 million each year must be distributed
through an open and competitive grant process for
existing crime victim programs; the funds must be used
to meet the needs of underserved and unserved areas
and populations. $100,000 each year is for a grant to the
Community Offender Reentry Program for assisting
individuals to transition from incarceration to the communities
in and around Duluth, including assistance in
finding housing, employment, educational opportunities,
counseling, and other resources. $1 million each year is
for youth intervention programs; the appropriations must
be used to create new programs statewide in underserved
areas and to help existing programs serve unmet
needs in program communities. $350,000 each year is for
a grant to Ramsey County to be used by the Ramsey
County Attorney’s Office to: (1) develop a statewide
model protocol for law enforcement, prosecutors, and
others, who in their professional capacity encounter sexually
exploited and trafficked youth, on identifying and
intervening with sexually exploited and trafficked youth;
(2) conduct statewide training for law enforcement and
prosecutors on the model protocol and the Safe Harbor
Law described in Laws 2011, First Special Session chapter
1, article 4, as modified by Senate File No. 384, article
2, if enacted; and (3) develop and disseminate to law
enforcement, prosecutors, and others, who in their professional
capacity encounter sexually exploited and trafficked
youth, on investigative best practices to identify
sex trafficked victims and traffickers. By Jan. 15, 2015,
the Ramsey County Attorney’s Office shall report to the
chairs and ranking minority members of the Senate and
House of Representatives committees and divisions having
jurisdiction over criminal justice policy and funding
on how this appropriation was spent. $50,000 each
year is for a grant to the Upper Midwest Community
Policing Institute for use in training community safety
personnel about the use of de-escalation strategies for
handling returning veterans in crisis. $50,000 each year is
for a grant to the Juvenile Detention Alternative Initiative.
Effective July 1, 2013.
• Emergency communication networks funded.
$59.138 million in 2014 and $63.639 million in 2015
are appropriated for the state’s emergency communication
networks from the state government special revenue
fund for 911 emergency telecommunications services.
Effective July 1, 2013.
• Public safety answering points funded. $13.664
million each year is to be distributed to public safety
League of Minnesota Cities

answering points as provided in Minn. Stat. § 403.113,
subd. 2. Effective July 1, 2013.
• Medical Resource Communication Centers
funded. $683,000 each year is for grants to the Minnesota
Emergency Medical Services Regulatory Board
for the Metro East and Metro West Medical Resource
Communication Centers that were in operation before
Jan. 1, 2000. Effective July 1, 2013.
• Allied Radio Matrix for Emergency Management
debt payment provided. $23.261 million each year
is to the commissioner of Minnesota Management and
Budget (MMB) to pay debt service on revenue bonds
issued under Minn. Stat. § 403.275 for the Allied Radio
Matrix for Emergency Management (ARMER). Any
portion of this appropriation not needed to pay debt
service in a fiscal year may be used by the commissioner
of the DPS to pay cash for any of the capital improvements
for which bond proceeds were appropriated by
Laws 2005, chapter 136, Section 9, subd. 8; or Laws
2007, chapter 54, Section 10, subdivision 8. Effective July
1, 2013.
• ARMER State Backbone Operating Costs funded.
$9.25 million in 2014 and $9.65 million in 2015 are
to the commissioner of the Minnesota Department of
Transportation (MnDOT) for costs of maintaining and
operating the first and third phases of the ARMER
backbone. Effective July 1, 2013.
• ARMER improvements funded. $1 million each
year is to the Statewide Radio Board for costs of design,
construction, and maintenance of, and improvements to,
those elements of the statewide public safety radio and
communication system that support mutual aid communications
and emergency medical services or provide
interim enhancement of public safety communication
interoperability in those areas of the state where the
statewide public safety radio and communication system
is not yet implemented. Effective July 1, 2013.
• Peace Officer Standards and Training Board
funded. Section 13 appropriates $3.87 million in 2014
and $3.87 million in 2015 to the Peace Officer Standards
and Training (POST) Board. This appropriation is
from the Peace Officer Training Account in the special
revenue fund. Any new receipts credited to that account
in the first year in excess of $3.87 million must be transferred
and credited to the general fund. Any new receipts
credited to that account in the second year in excess of
3.87 million must be transferred and credited to the general
fund. $2.734 million each year is for reimbursements
to local governments for peace officer training costs. This
amount represents an approximately $200,000 increase
over the previous biennium. Of the reimbursement
amount $100,000 the first year is for reimbursements to
local governments for peace officer training costs on sexually
exploited and trafficked youth, including effectively
identifying sex trafficked victims and traffickers, investigation
techniques, and assisting sexually-exploited youth.
Reimbursement will be provided on a flat fee basis of
$100 per diem per officer. Effective July 1, 2013.
• Private Detective Board funded. Section 14 provides
$120,000 in each year of the biennium for the Private
Detective Board. This is the same appropriation provided
in the previous biennium. Effective July 1, 2013.
• Department of Human Rights funded. Section 15
provides $3.297 million in each year of the biennium to
the Dept. of Human Rights. This amount represents an
approximately $200,000 increase over the previous biennium.
$129,000 each year is for two additional contract
compliance officers. Effective July 1, 2013.
• Department of Corrections funded. Section 16 provides
$481.47 million in 2014 and $487.304 million in
2015 to the Dept. of Corrections. This amount represents
an approximately $55 million increase over the previous
biennium. Effective July 1, 2013.
Article 2: Guardians and conservators
Article 2 contains provisions related to guardians and conservators.
This article is not directly relevant to city operations.
Article 3: Criminal justice
Article 3 makes policy reforms related to corrections, public
safety, the human rights department, and the courts.
• Conditional release of nonviolent drug offenders
provided. Section 3 creates Minn. Stat. § 244.0551. It
authorizes the commissioner of the Dept. of Corrections
to grant conditional release to nonviolent controlled
substance offenders if the offenders serve a minimum
portion of their sentences and complete substance abuse
treatment while incarcerated. Effective July 1, 2013.
• Grant allocation formula modified. Section 5
amends Minn. Stat. § 299A.73, subd. 3, by increasing
from 1 percent to 5 percent, the percentage of the
appropriation that may be used by the Minnesota Youth
Intervention Programs Association for providing training
and technical assistance to grantees. It also expands the
allowable expenditures to include program and professional
development and tracking, analyzing, and reporting
outcome data and exempts the association from the
match obligation. Effective July 1, 2013.
• Court technology fee imposed. Section 6 adds a
subdivision to Minn. Stat. § 357.021. It imposes a court
technology fee of $2 on court filings made under section
357.021, subdivision 2, clauses (1) to (13). (Examples of
these filings include the initial civil filing fees, motion
fees, issuance of a subpoena, docketing fees, and others.)
The court technology fee is deposited in a special
revenue fund to be appropriated to the Supreme Court
for distribution to the state courts and their justice partners
for technology purposes. The section also authorizes
2013 Law Summaries Page 43

the Judicial Council to establish a board consisting of
members from the judicial branch, prosecutors, public
defenders, and civil legal services to distribute the funds.
It provides that applications may be accepted from the
judicial branch, county and city attorneys’ offices, the
Board of Public Defense, civil legal services organizations,
corrections agencies, and part-time public defender
offices. It directs the Judicial Council to submit two
reports to the Legislature that provides an accounting
and explanation of the distribution of funds. The subdivision
sunsets on June 30, 2018. Effective July 1, 2013.
Article 4. Data integration project
Article 4 requires improved collection and reporting of
information relevant to eligibility to possess and purchase
firearms.
• Dept. of Corrections fingerprints requirement
modified. Section 1 amends Minn. Stat. § 241.301. It
directs the commissioner of corrections to transfer fingerprint
records of offenders transferred to the custody
of the commissioner from another state to the BCA or
National Instant Criminal Background Check System
(NICS) by electronic entry within 24 hours of receiving
the fingerprints. If the BCA receives data under this
section in nonelectronic format, the commissioner must
convert that record into electronic format for entry into
the searchable database within three business days of
receiving the record. Effective July 1, 2013.
• Transmittal of data to National Instant Criminal
Background Check System required. Section 2
amends Minn. Stat. § 253B.24. It directs a court to submit
a mental health adjudication to NICS within three
business days of issuing the ruling if it affects a mentally
ill person’s right to possess firearms. Effective July 1, 2013.
• Local agencies fingerprints requirements modified.
Section 3 amends Minn. Stat. § 299C.10, subd. 1. It
requires local law enforcement agencies to submit electronic
fingerprint records to state searchable databases
within 24 hours of taking the fingerprints. Effective July
1, 2013.
• BCA fingerprints requirements modified. Section
4 amends Minn. Stat. § 299C.10, subd. 3. It directs the
BCA to convert paper records of fingerprints, thumbprints,
and other identification data into electronic format
within three business days of receiving the data.
Effective July 1, 2013.
• Identification data other than DNA requirements
modified. Section 5 amends Minn. Stat. § 299C.11,
subd. 1. It directs the BCA to enter alias data for persons
listed in the BCA’s offender database within three business
days of the BCA becoming aware of the new identifying
data. Effective July 1, 2013.
• Information on released prisoner required. Section
6 amends Minn. Stat. § 299C.14. It directs sheriffs and
the commissioner of corrections to enter specified data
Page 44
about soon-to-be-released offenders into a bureau-managed
offender database. This transfer must occur within
24 hours of the offender’s release. Effective July 1, 2013.
• Report by court administrator requirement
authorized. Section 7 amends Minn. Stat. §299C.17. It
authorizes the superintendent of the BCA to require the
court administrator to provide the BCA with the sentence
for each felony, gross misdemeanor, and targeted
misdemeanor case within 24 hours of disposition of the
case. Effective July 1, 2013.
• Notice of firearms disqualification required. Section
8 amends Minn. Stat. § 624.713, subd. 3. It requires
courts to provide notice to a person of their mental
health civil commitment firearms disqualification. Effective
Aug. 1, 2013.
• Provision of firearms background check information.
Section 9 adds a new subdivision to Minn. Stat.
§ 624.713. It directs the courts to notify NICS whenever
the court places a person (adult or juvenile), who
is charged with committing a crime of violence, into a
pretrial diversion program before disposition. The court
must notify NICS of both the person’s placement and
the ordered expiration date of the program, and when
the person completes the program the prosecuting attorney
must notify NICS of that fact in a timely manner.
Minn. Stat. § 624.713 prohibits such a person from possessing
firearms until successfully completing the pretrial
diversion program. Effective Aug. 13, 2013.
• Prior civil commitments and felony convictions.
Section 10 is a 2013 Session Law that establishes a July
1, 2014 deadline for courts and criminal justice agencies
to enter data on civil commitments from Jan. 1, 1994,
to Sept. 28, 2010, and felony convictions from 2008 to
2012, if those records have not already been submitted
to the appropriate searchable databases. Effective July 1,
2013.
• Criminal and juvenile justice information policy
group report required. Section 11 is a 2013 Session
Law that directs the Criminal and Juvenile Justice
Information Policy Group to submit a report to the
Legislature recommending how to improve the search
capabilities of BCA-managed databases. The group must
report on the progress of reducing the number of files in
suspense. The group must also consult with the revisor
on other statutory changes needed to implement this bill
and the group’s legislative recommendations. Effective July
1, 2013.
(AF)
Hazardous substance release report required to
local 911 emergency dispatch center
Chapter 92 (HF 814*/SF 1033) adds a provision to Minn.
Stat. § 609.671, subd. 10. It requires the state emergency
response center to direct a caller to notify a local 911
League of Minnesota Cities

emergency dispatch center of the release of a hazardous
substance if the situation requires an immediate response
or the area is unknown to the center. In all other cases, the
state emergency response center must notify a local firefighting
or law enforcement organization of the situation
within 24 hours of receiving the notification. Effective Jan.
1, 2014. (AF)
Public safety provisions in the omnibus transportation
finance act
Chapter 117 (HF 1444*/SF 1173) is the 2013 omnibus
transportation finance act. The chapter spends $2.394
billion in FY 2014 and $2.346 in FY 2015. It sets the
budget for the Minnesota Department of Transportation
(MnDOT) and part of the Minnesota Department of
Public Safety (DPS), as well as funding for the Metropolitan
Council, for the upcoming biennium. It makes various
changes in base appropriation levels largely reflecting the
governor’s budget proposal, including increased appropriations
for state roads, Driver and Vehicle Services, and
capitol security. It authorizes $300 million in trunk highway
bonds, available in fiscal year 2015, for the Corridors
of Commerce program being established. Summarized are
transportation provisions that may be of interest to cities.
(Note: Transportation provisions in Chapter 117 are summarized
in the Transportation section of the 2013 Law
Summaries.)
Article 1: Appropriations for FY 2014 and 2015
Article 1 provides a summary of all appropriations by fund.
• Department of Public Safety funding provided.
Section 5 provides $156.441 million in 2014 and
$157.375 in million in 2015 to the DPS. Effective July 1,
2013.
• Public safety officer survivor benefit funded.
$380,000 in each year is from the general fund for payment
of public safety officer survivor benefits under
Minn. Stat. § 299A.44. Effective July 1, 2013.
• Continued health insurance benefit reimbursement
funded. $1.367 million in each year is from the
general fund to be deposited in the Public Safety Officer’s
Benefit Account. This money is available for reimbursements
under Minn. Stat. § 299A.465. Effective July
1, 2013.
• Soft body armor reimbursement funded. $600,000
in each year is from the general fund and $100,000 in
each year is from the Trunk Highway Fund for soft body
armor reimbursements under Minn. Stat. § 299A.38.
Effective July 1, 2013.
• Capitol Security recommendations funded.
$1,250,000 in each year is to implement the recommendations
of the advisory committee on Capitol Area
Security under Minn. Stat. § 299E.04, including the creation
of an emergency manager position under Minn.
Stat. § 299E.01, subdivision 2, and an increase in the
number of State Patrol troopers and other security officers
assigned to the Capitol complex. The commissioner
may not: (1) spend any money from the Trunk Highway
fund for capitol security; or (2) permanently transfer any
state trooper from the patrolling highways activity to
capitol security. The commissioner may not transfer any
money appropriated to the commissioner under this section:
(1) to capitol security; or (2) from capitol security.
Effective July 1, 2013.
Article 3: Funding policy provisions
Article 3 contains policy provisions related to transportation
and public safety funding. (Note: The transportation
provisions can be found in the Transportation section of
the 2013 Law Summaries.) Following are transportation
provisions that may be of interest to cities:
• Ignition interlock exception provided. Section 7
amends Minn. Stat. § 169A.37, subd. 1. It Narrows the
prohibition on driving a vehicle during plate impoundment,
to allow a person to drive an employer-owned
vehicle that is not required to be equipped with an ignition
interlock. Effective May 24, 2013.
• Implied consent advisory requirement exception
provided. Section 8 amends Minn. Stat. § 169A.51,
subd. 2. It creates an exception to the implied consent
advisory requirement. It provides that a peace officer
who is not pursuing an implied consent license revocation
is not required to give an advisory to a person who
is believed to have committed an alcohol or drug-related
criminal vehicular operation (CVO) offense. Effective July
1, 2014.
• License reinstatement eligibility modified. Section
9 adds a subdivision to Minn. Stat. § 169A.55. It provides
that a person who has committed an alcohol-related
CVO offense that resulted in injury but not death is eligible
for license reinstatement once the person has submitted
verification of the use of ignition interlock for
the applicable time period. Effective July 1, 2014.
• Driving permit allowed after 15 hours of instruction.
Section 10 amends Minn. Stat. 171.05, subd. 2. It
allows a person to get a driving instruction permit when
taking classroom and behind-the-wheel concurrently,
following at least 15 hours of classroom instruction (and
when other requirements are met). It directs the department
to adopt administrative rules and permits use of
the exempted rulemaking process. Under current law, a
person must first complete the classroom portion and be
enrolled in behind-the-wheel in order to obtain a permit.
Effective Jan. 1, 2014.
• Driver’s license renewal fee increased. Section 11
amends Minn. Stat. §171.061, subd. 4. It increases, from
$5 to $8, the filing fee charged for a new or renewal
driver’s licenses and Minnesota identification cards. The
same fee amount is imposed by agents authorized by
Driver and Vehicle Services (DVS) to administer driver
2013 Law Summaries Page 45

licensing offices, and by DVS at its locations. (Filing fees
collected by agents are retained by them, and fees collected
by DVS are deposited in an operating account in
the special revenue fund for DVS program administration.)
Effective Jan. 1, 2014.
• Criminal vehicular operation; revocation periods.
Section 12 adds a subdivision to Minn. Stat. § 171.17. It
places DWI-related criminal vehicular operation revocation
periods in statute (see section 41, paragraph (b)
of this article—repealing related rules). Specifies the
revocation period (ranging from two to 10 years) based
on the resulting harm and/or number of qualified prior
impaired driving incidents. Effective July 1, 2014.
• Suspension; criminal vehicular operation and
manslaughter. Section 13 creates Minn. Stat. §
171.187. It requires the Department of Public Safety
to suspend a person’s driver’s license if: (1) the peace
officer certifies that there is probable cause to believe
the person committed a DWI-related CVO offense; or
(2) the person has been formally charged with manslaughter
or CVO, resulting from operation of a vehicle.
It continues a suspension until the completion of
the criminal case or by order of the commissioner. It
provides that, if a person is convicted, the commissioner
must credit the time accrued under the suspension
towards the revocation period. It authorizes the
aggrieved person to request an administrative review of
the suspension. Effective July 1, 2014.
• Conditions of issuance provided. Section 14 amends
Minn. Stat. § 171.30, subd. 1 It allows issuance of a limited
license to a person whose license was suspended
under the new suspension provision created in section
13. Effective July 1, 2014.
• Non-alcohol related criminal vehicular operation
license issuance. Section 15 amends Minn. Stat. §
171.30, subd. 2a. It prevents issuance of a limited license
for one year to a person convicted of a non-alcohol
related criminal vehicular operation offense, or an alcohol-related
criminal vehicular homicide offense. Effective
July 1, 2014.
• Alcohol related criminal vehicular operation
offender limited license prohibited. Section 16 adds
a provision to Minn. Stat. § 171.30. It prohibits issuance
of a limited license to a person convicted of an alcoholrelated
criminal vehicular operation offense involving
injury but not death. Effective July 1, 2014.
• Ignition interlock “program participant” definition
modified. Section 17 amends Minn. Stat. §
171.306, subd. 1. It amends the definition of an ignition
interlock “program participant” to include a person
whose license was suspended or revoked for an alcoholrelated
criminal vehicular operation offense involving
injury but not death. Effective July 1, 2014.
• Ignition interlock program participation authorized.
Section 18 amends Minn. Stat. § 171.306, subd. 4.
Page 46
It allows participation in the ignition interlock program
by someone whose license was suspended or revoked for
an alcohol-related criminal vehicular operation offense
involving injury but not death. Effective July 1, 2014.
• Capitol emergency manager position created. Section
30 amends Minn. Stat. § 299E.01, subd. 2. It creates
the position of emergency manager in the Capitol Complex
Security Division permanent staff and assigns duties
to the position. Effective July 1, 2013.
• Public Safety commissioner authority provided.
Section 31 amends Minn. Stat. § 299E.01, subd. 3.
Assigns the commissioner of the Department of Public
Safety as the final authority over public safety and
security in the Capitol complex. The commissioner of
the Department of Administration is responsible for the
Capitol complex as provided under Minn. Stat., chapter
16B, which assigns general management responsibilities.
Effective July 1, 2013.
• Probable cause certification required. Section 35
creates Minn. Stat. § 629.344. It provides that an officer
must certify to the Department of Public Safety a determination
that probable cause exists to believe a person
committed a DWI-related criminal vehicular operation
offenses. Effective July 1, 2014.
(AF)
ATV use statutes related to ditches and rights-ofway
revised
Chapter 121 (*SF 796/HF 742) is the omnibus game and
fish policy bill and contains two sections related to the
operation of all-terrain vehicles (ATV):
• Section 4 relates to youthful operators and states that a
person 12 years of age but less than 16 years of age may
operate an ATV on the bank, slope, or ditch of a public
road right-of-way as permitted under MN Stat § 84.928
if they both possess a valid all-terrain vehicle safety certificate
issued by the commissioner and are accompanied
by a parent or legal guardian on a separate ATV.
• Section 6 amends MN Stat § 84.928, subd. 1 to allow
the operation of a class 2 ATV on the bank, slope, or
ditch of a public road right-of-way of a trunk, county
state-aid, or county highway, but only to access businesses
or make trail connections. Left turns may be made
from any part of the road if it is safe to do so under the
prevailing conditions, unless prohibited under paragraph
(d) or (f) of that section of law.
Effective Aug. 1, 2013. (CJ)
Statewide Radio Board
Chapter 32 (HF 669*/SF 803) makes changes to allow
the Statewide Radio Board to restructure as the Statewide
Emergency Communications Board to integrate interoperable
emergency communication technologies—the Allied
Radio Matrix for Emergency Response (ARMER) sys-
League of Minnesota Cities

tem, 911 service, wireless broadband—and allow a federally
recognized tribal government to be integrated into a
Regional Radio Board structure.
• General. Section 4 amends Minn. Stat. § 403.37 subd 1.
It gives the Statewide Radio Board the powers need to
oversee planning, implementation, and maintenance of
the ARMER system.
• Statewide emergency communication board. Section
6 creates a new statute, Minn. Stat. § 403.382. It
permits the Statewide Radio Board to elect to become
the Statewide Emergency Communication Board, which
would be responsible for statewide coordination of 911
service as well as the ARMER system. The new provision
requires the board to plan and coordinate a statewide
public safety broadband network and other wireless
communication technologies for public safety emergency
communication networks.
• Regional radio boards. Section 7 amends Minn. Stat.
§ 403.39. It authorizes a regional radio board to include
a federally recognized Indian tribe. It also permits a
regional radio board to administer grants on behalf of
one or more public safety entities operating in the jurisdiction.
Furthermore, it permits a regional radio board
to expand the scope of its joint powers agreement to
other public safety purposes.
• Regional emergency communication boards. Section
8 creates a new statute, Minn. Stat. § 403.392. It
authorizes a regional radio board to elect to become a
regional emergency communication board and include
911 services.
• Topical advisory committee. Section 9, amends
Minn. Stat. § 403.40, subd. 2. It permits the statewide
radio board to establish advisory groups to assist with the
interoperable public safety communication system.
• Repealer. Section 12 repeals Minn. Stat. § 403.33,
which contained language for local planning. The statute
was repealed to integrate statewide coordination and
give comprehensive authority to the board to address all
emergency communications.
Effective Aug. 1, 2013. (LZ)
TAXES
Omnibus tax bill
Chapter 143 (*HF 677/SF 552) is the 2013 omnibus tax
bill. The bill raises roughly $2.1 billion in additional revenues
to balance the state’s estimated $627 million deficit
and to fund new spending priorities of the 2013 Legislature
for the FY2014-2015 biennium. Chapter 143
includes $411 million in spending for programs such as an
expanded homestead credit refund, Local Government Aid,
and County Program Aid. The bill also includes a general
sales tax exemption for purchases by cities and counties.
Article 1: Homestead credit refund and renter property tax
refund
Article 1 amends various sections of Minn. Stat. § 290A to
modify and expand the homeowner and renter property
tax refund programs.
• Homeowner credit refund. The homeowner program
is renamed the “homestead credit refund,” and the
program is expanded by decreasing the income threshold
percentages used to determine eligibility and increasing
the maximum refund across all qualifying income ranges.
The renters refund program is also modified with corresponding
decreases in the income threshold percentages
and increases in the maximum refund for renters across
all income ranges. The changes in the homeowner and
renters programs also provide that most voluntary contributions
to retirement plans are not included in household
income, and all distributions from retirement plans
are included in household income.
• Notice. To increase awareness of the homestead credit
refund program, the law requires the commissioner to
match property tax data submitted by the counties with
income tax and other data collected by the Department
of Revenue, and notify those homeowners whom the
commissioner estimates may be eligible for a homestead
credit refund of at least $1,000.
Effective for homestead credit refunds based on taxes payable in
2014 and rent paid in 2013 and thereafter, and effective for
renter property tax refunds beginning with refunds based on rent
paid in 2013.
Article 2: Property tax aids and credits
• Disparity reduction credit. Section 1 amends Minn.
Stat. § 273.1398, subd. 4 to increase the disparity reduction
credit by providing that the credit will be the
amount necessary to reduce the effective tax rate on
commercial-industrial and apartment properties in the
four border cities to 1.9 percent, compared to the current
2.3 percent. Effective beginning with taxes payable in
2014.
• Sustainable Forest Incentive Program. Sections 2
through 5 and sections 34 and 35 make changes to the
Minnesota Sustainable Forest Incentive Program.
• Section 2 amends Minn. Stat. § 290C.02, subd. 6 to
exclude land exceeding 60,000 acres that is subject
to a single conservation easement and any land that
becomes subject to a conservation easement after May
30, 2013, from participation in the Sustainable Forest
Incentive Act (SFIA) program. Effective for certifications
and applications due in 2013 and thereafter.
• Section 3 amends Minn. Stat. § 290C.03 to require
that claimants enrolling more than 1,920 acres in the
program must also allow motorized access on established
and maintained roads and trails, unless the road
or trail is temporarily closed for safety, natural resource,
2013 Law Summaries Page 47

or road damage reasons. Effective for calculations made in
2013 and thereafter.
• Section 4 amends Minn. Stat. § 290C.055 to allow a
participant to terminate its covenant in the program if
future changes are made to the payment formula. Effective
for calculations made in 2013 and thereafter.
• Section 5 amends Minn. Stat. § 290C.07 to remove
the $100,000 per recipient cap on SFIA payments.
Effective for calculations made in 2013 and thereafter.
• Section 34 is an uncodified session law that releases
lands from their SFIA covenants if they are disqualified
from participating in the program as a result of
conservation easements. Effective the day following final
enactment.
• Section 35 is an uncodified session law that allow
lands that dropped out the SFIA program in response
to the 2011 changes in the law to reenroll and qualify
for 2013 SFIA payments, if they do so within 60 days
after enactment of the bill. Effective the day following
final enactment.
• Police and firefighter retirement supplemental
state aid. Section 6 creates a new section, Minn. Stat. §
423A.022, to provide for annual state payments of $15.5
million per year to support police and firefighter pension
funds. Each year, $9 million will be paid to the Public
Employees Retirement Association (PERA) as an amortization
aid for the Police and Fire Fund, $5.5 million
per year will be paid by formula to municipalities with
voluntary firefighters, and $1 million will be paid to the
Minnesota State Retirement System for deposit in the
state patrol fund.
The $5.5 million appropriation for voluntary firefighter
pensions will be allocated to each municipality,
except for municipalities with firefighter retirement
coverage provided solely through the PERA Police and
Fire Fund, in proportion to the most recent amount of
fire state aid paid to the municipality relative to the most
recent statewide total fire state aid for all non-PERA
P&F municipalities. There will be no additional filing
requirement beyond the March 15 fire state aid application
in order to receive the additional aid amount.
Although the total amount of available fire state aid is
not known at this time, the $5.5 million appropriation
would have resulted in a roughly 30 percent increase in
the fire aid amount if it had been in place for the 2012
distribution. The final 2013 increase percentage will be
based on the actual available fire state aid.
The allocated amount for fire departments participating
in the PERA voluntary statewide lump-sum volunteer
firefighter retirement plan will be paid directly to
PERA, credited to the respective account, and deposited
in the fund. For other local plans, the amount will be
paid to each municipality, and transmitted within 30 days
of receipt to the applicable volunteer firefighter relief
association for deposit in its special fund.
Page 48
The aid program under this section ends on the
Dec. 1 following the actuarial valuation date on which
the assets of the retirement plan on a market value
basis equals or exceeds 90 percent of the total actuarial
accrued liabilities of the retirement plan. Effective beginning
in the fiscal year beginning July 1, 2013.
• Local Government Aid (LGA) reform. Sections 7
through 18 (except section 13) and Section 36 amend
Minn. Stat. § 477A and include the LGA reform proposal
based on legislation introduced by Rep. Ben Lien (DFL-
Moorhead) and Sen. Roger Reinert (DFL-Duluth). A
detailed description of the new formula and a printout
with the estimated 2014 LGA amounts for each city can
be found in Appendix B at the back of this booklet.
• New LGA formula. The LGA formula will now
include a three-tier LGA need factor calculation
depending on the population of the city, with separate
“need” calculations for cities under 2,500 in population,
cities between 2,500 and 10,000 in population,
and cities over 10,000 in population. All three need
formulas were derived using revenue base (levy plus
aid) as a proxy for city need. The small city need calculation
is based on a statistical analysis of the spending
patterns of cities under 2,500 population, while
the medium and large city need calculations are based
on regression analysis of current fiscal and demographic
data similar to the techniques used in previous
LGA formulas. The new formula will reduce the
annual volatility in the LGA distribution to individual
cities by modifying the method used to allocate the
annual appropriation increase. Under the new formula,
no city will experience a reduction in LGA in 2014.
Beginning with the 2015 distribution, roughly 90 cities
would experience some reduction in their LGA
distribution. However, the new formula will limit
annual reductions to the lesser of $10 per capita or 5
percent of the city’s previous year net levy. For cities
that will gain under the new formula, those whose
current LGA distribution is furthest from their unmet
need will receive proportionally larger increases. The
new formula also significantly simplifies the LGA system
by eliminating several of the formula side pots.
• City-specific adjustments. Section 16 provides for
three city-specific aid adjustments from the formula.
• Warroad. The City of Warroad will receive an extra
$150,000 per year for the next five years to compensate
for a major commercial property devaluation. The
Warroad provision had been a permanent adjustment
under the former LGA system but the adjustment will
now sunset in five years.
• Mahnomen. The City of Mahnomen will receive an
extra annual LGA payment of $160,000 to compensate
for tax base loss due to a casino being exempted
under federal law.
League of Minnesota Cities

• Red Wing. The City of Red Wing will receive a refuge” as land owned in fee by another state agency for
one-time additional payment of $1 million for 2014 military purposes and designated as a state game refuge
only. The total LGA appropriation for 2014 was (this land is the Camp Ripley game refuge that currently
receives a payment under Chapter 97A); a new
increased to cover these additional distributions.
• Disaster areas. Section 17 allows a city that is located definition of “transportation wetland” as land administered
by the Department of Transportation in which the
in a disaster area for an event that occurred in April 2013
to get its entire 2013 LGA payment on July 20, 2013. state acquired, by purchase from a private owner, a fee
This provision covers cities in the counties of Rock, title interest in over 500 acres of land within a county to
Nobles, Jackson, Murray, and Cottonwood.
replace wetland losses from transportation projects; and
• Total appropriation. Section 18 sets the total city aid “wildlife management land” as land administered by the
appropriation at $507.6 million for aids payable in 2014, commissioner in which the state acquired, from a private
$509.1 million for aids payable in 2015, and $511.6 million
for aids payable in 2016 and thereafter.
under the authority granted in Minn. Stat. ch. 94 (lands,
owner by purchase, condemnation, or gift, a fee interest
• Repealer. Section 36 repeals a number of current law state forests) or Minn. Stat. ch. 97A (game and fish) for
provisions related to the existing LGA formula that are wildlife management purposes and actually used as a
no longer used in the new distribution formula as well wildlife management area.
several obsolete provisions related to aid reductions over Section 28 amends Minn. Stat. § 477A.12, subdivision
1 to modify PILT payments as follows:
the last several years.
Section 17 is effective for aids payable in calendar year 2013. All
• Acquired natural resources land: $5.133, multiplied
by the total number of acres or, at the county’s
other LGA sections are effective for aids payable in calendar year
2014 and thereafter.
option, three-fourths of 1 percent of the appraised
value of land in the county, whichever is greater (no
• County program aid. Section 19 amends Minn. Stat. change);
§ 477A.03 subd. 2b by increasing county program aid by • Transportation wetland: $5.133, multiplied by the
$40 million per year for aids payable in 2014 and thereafter
by increasing the appropriation for “need aid” and the county’s option, three-fourths of 1 percent of the
total number of acres of transportation wetland, or, at
“tax base equalization aid” each by $20 million. This appraised value of all acquired natural resources land
section also makes technical language changes related to in the county, whichever is greater (similar to current
payments for local impact notes. Effective for aids payable law);
in calendar year 2014 and thereafter.
• Wildlife management land: Three-fourths of 1
• New township LGA. Sections 13 and 20 create new percent of the appraised value of all wildlife management
land in the county (new provision);
sections, Minn. Stat. § 477A.013, subd. 1 and 477A.03,
subd. 2c, that establish a new township LGA system, and • Military refuge land: 50 percent of the dollar
sets the town aid appropriation for aids payable in 2014 amount as determined under clause (1), multiplied
and thereafter at $10 million. The township formula provides
aid payments to townships equal to the product of: county (same as current payment in Chapter 97A);
by the number of areas of military refuge land in the
(1) its agricultural property factor; (2) its town area factor;
(3) its population factor; and (4) 0.0045. If the sum number of acres of county-administered other natural
• County-administered: $1.50 multiplied by the
of all aids payable under this subdivision exceeds the resource land in the county (increased from $1.283/
limit, the distribution to each township is reduced proportionately.
Effective for aids payable in calendar year 2014 • Land utilization projects: $5.133 multiplied by the
acre payment in current law);
and thereafter.
total number of acres of land utilization project land in
• Minneapolis debt service aid. Section 21 creates a the county (increased from $1.23/ acre under current
new section, Minn. Stat. § 477A.085, that requires the law);
state to make annual payments to the City of Minneapolis
equal to 40 percent of the annual levy for payments the total number of acres of commissioner-admin-
• Commissioner-administered: $1.50 multiplied by
for the city’s library referendum bonds, beginning in istered other natural resources land in the county
2016. Effective July 1, 2013.
(increased from $0.642/acre under current law).
• Payment in lieu of taxes (PILT) program. Sections • Local drainage assessments: Without regard to
22 to 32 and section 36 amend various sections of Minn. acreage, $300,000 for local assessments under section
Stat. ch. 477A related to the PILT program, including: 84A.55, subdivision 9 (new provision).
the addition of a purpose statement for PILT; a variety
Sections 22 through 32 are effective for aids payable in calendar
of modifications to existing statutes to define “acquired
year 2013 and thereafter.
natural resources land” to specifically exclude “wildlife
• Section 36 repeals the additional or alternative PILT
management land;” a new definition of “military game
payments in Chapter 97A for goose crop lands, public
2013 Law Summaries Page 49

hunting lands, and Camp Ripley game refuge, as well
as a payment to Chisago County for land in St. Croix
Wild River State Park under special law. Effective July
1, 2013.
• Mahnomen County local government appropriations.
Section 33 increases the annual aid appropriations
to taxing jurisdictions in Mahnomen County from
$600,000 to $1.2 million. The payments are as follows:
$900,000 to Mahnomen County; $160,000 to the City
of Mahnomen; and $140,000 to Independent School
District No. 432, Mahnomen. Effective for aids payable in
calendar year 2013 and thereafter.
Article 3: Education provisions
Article 3 includes several modifications to Minnesota’s
education finance system that provide higher levels of
school district referendum equalization, allow $300 of referendum
levy to be approved by the school board rather
than the voters, and create a location equity revenue program
for school districts in the seven-county metro area
and outstate regional center districts. Various effective dates.
Article 4: Property taxes
• Board of Water and Soil Resources (BWSR) evaluation
and report. Section 1 amends Minn. Stat. §
103B.102, subd. 3 to extend the maximum amount of
time BWSR has to evaluate a local water management
entity’s progress in accomplishing its plan from five years
to 10 years, and allows the board to determine the frequency
based on the budget and operations of the entity.
Effective July 1, 2013.
• Comprehensive watershed management plan
tax levy authority. Section 2 amends Minn. Stat. §
103B.335 to broaden tax levy authority by allowing a
county, municipality, or township to levy for implementation
funds for a comprehensive watershed management
plan. This section also clarifies that counties may levy
for the reasonable costs to soil and water conservation
districts for administering and implementing programs
identified in the plans. Effective July 1, 2013.
• Local water resources restoration, protection and
management program financial assistance. Section
3 amends Minn. Stat. § 103B.3369, subd. 5 to
require a county that implements a water implementation
tax to raise matching funds for base grants awarded
by BWSR to levy at a rate that is sufficient to generate
a minimum amount (to be determined by BWSR). This
section also authorizes the use of funds raised by metropolitan
county conservation fees (a $5 fee on mortgage
and deed recordings/registrations) to be used as matching
funds for the base grants and to address high-priority
needs in local water management plans or comprehensive
watershed management plans. Effective July 1, 2013.
• Cost-sharing conservation contracts for erosion
control and water management. Section 4 amends
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Minn. Stat. § 103C.501, subd. 4 to eliminate cost-share
fund allocation requirements that required 70 percent of
cost-share funds to be allocated to certain areas and no
more than 20 percent to be allocated for technical and
administrative assistances. This section also requires that
funds for technical assistance be used to leverage federal
or other non-state funds or address high-priority needs
in local water management plans or comprehensive
watershed management plans. Effective July 1, 2013.
• Soil loss ordinance authority. Section 5 amends
Minn. Stat. § 103F.405, subd. 1 to allow soil loss ordinances
adopted by counties, cities, and towns to use
the soil loss tolerance for each soil type developed by
BWSR, in addition to those in the United States National
Resources Conservation Service Field Office Technical Guide,
which is currently the only approved source. Soil loss
tolerance is the maximum annual rate of soil loss by erosion
that will permit crop productivity to be sustained.
The soil loss ordinances must be consistent with a comprehensive
plan, local water management plan, or watershed
management plan. Effective July 1, 2013.
• Manufactured homes and park trailers. Section 6
amends Minn. Stat. § 168.012, subd. 9 to exempt manufactured
homes and park trailers from the motor vehicle
registration tax and the personal property tax if the unit
is held as inventory by a limited dealer. Under current
law, the inventory exemption applies only to “licensed
dealers.” Effective for taxes payable in 2014 and thereafter.
• Manufactured home as dealer inventory. Section
7 creates a new subdivision, Minn. Stat. § 168.012, that
defines a manufactured home as dealer inventory if it is
listed as inventory by a licensed or limited dealer, and is
unoccupied and not available for rent. Under these conditions,
it is considered part of dealer’s inventory even if
it is permanently connected to utilities when located in
a manufactured home park or temporarily connected to
utilities when located at a dealer’s sales center. This section
also puts a five-year limit on the time that an unoccupied
home held in inventory is exempt. Effective for
taxes payable in 2014 and thereafter.
• State Board of Assessors; assessor sanctions. Section
8 amends Minn. Stat. § 270.41, subd. 3 to provide
that the state board of assessors may censure, warn, or
fine an assessor in addition to their currently available
possible sanctions of suspending, revoking, or refusing
to grant a license. The new sanctions can also be applied
against unlicensed assessors. Effective July 1, 2013.
• Report on disciplinary actions against assessors.
Section 9 adds a new subdivision, Minn. Stat. § 270.41,
that requires the state board of assessors to make a biannual
report on the sanctions recommended by the
commissioner of revenue under section 14, and the disposition
of those recommendations by the board. Effective
July 1, 2013.
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• Disposition of assessor fines. Section 10 amends
Minn. Stat. § 270.45 to provide that fines imposed under
section 8 above must be deposited in the state’s general
fund. Effective July 1, 2013.
• Assessor accreditation. Section 11 adds a new section,
Minn. Stat. § 270C.9901, that requires that every
individual who appraises or physically inspects property
for property tax valuation or classification purposes
must become licensed as an accredited assessor by July 1,
2019, or by four years after becoming a licensed assessor,
whichever is later. Effective Jan. 1, 2014.
• Economic development holding period. Section
12 amends Minn. Stat. § 272.02, subdivision 39 to
increase the allowable tax exempt holding period for
city-owned property awaiting development from nine
years to 15 years under two conditions: (1) the property
was acquired on or after Jan. 1, 2000, and on or before
Dec. 31, 2010, regardless of geographic location, or (2)
property is located in a city with a population under
20,000 located outside the metro area. Under current
law, the allowable holding period is 15 years for cities
under 5,000 population located outside the metro area,
and nine years for all other cities. Effective for assessment
year 2013 and thereafter and for taxes payable in 2014 and
thereafter.
• Exemption for eligible property owned by Indian
tribe. Section 13 adds a new subdivision, Minn. Stat. §
272.02, subd. 98, that creates a property tax exemption
for certain property located in Minneapolis owned by
a federally recognized tribal government used for tribal
government activities or services to members of the
tribe. The exemption applies only to property used for
noncommercial and nonresidential purposes and to no
more than two contiguous parcels. The tax exemption
expires with taxes payable in 2024. Effective beginning with
taxes payable in 2014.
• Electric generation facility property tax exemption.
Section 14 amends Minn. Stat. § 272.02 to provide
a property tax exemption for the personal property of
a new electric generation facility on which construction
begins between June 1, 2013, and June 1, 2017,
that exceeds five megawatts of installed capacity, utilizes
natural gas as a primary fuel, is owned and operated by
a municipal power agency, is located within the service
territory of a municipal power agency’s utility that
serves a metropolitan county, and connects directly with
a municipality’s substation.
These facilities are planned for the cities of Anoka,
Chaska, North St. Paul, and Shakopee. Effective for assessment
year 2013, taxes payable in 2014, and thereafter.
• Commissioner review of assessment practices.
Sections 15 and 16 amend Minn. Stat. § 273.061, subd. 2
and Minn. Stat. § 273.0645 to provide that the commissioner
of revenue may conduct investigations of assessor
malfeasance, and make recommendations to the state
board of assessors for appropriate sanctions.
Effective July 1, 2013.
• Conservation property tax valuation. Section 17
amends Minn. Stat. § 273.117 to provide that the value
of real property subject to a conservation restriction
or easement shall not be reduced by the assessor if the
restriction is for a conservation purpose and the property
is being used in accordance with the restriction. This
section also clarifies that this section does not apply to
restrictions or easements covering riparian buffers along
lakes, rivers, and streams that are used for water quantity
or quality control, or to easements granted by a county
that has adopted a program by referendum to protect
farmland and natural areas since 1999. Effective for assessment
year 2013 and thereafter, and for taxes payable in 2014
and thereafter.
• Class 4d (low-income rental housing) property.
Section 18 amends Minn. Stat. § 273.13, subd. 25 to provide
for a reduced class rate of 0.25 percent for class 4d
property over $100,000 in value per housing unit. Currently
the entire 4d class is subject to a class rate of 0.75
percent. This section also provides for indexing of the
tier bracket based on the statewide average growth rate
for apartment property values and makes several technical
modifications. Effective beginning with assessment year
2014 for taxes payable in 2015.
• Federal active service late property tax payment
exception. Sections 19 and 20 amend Minn. Stat. §
279.01, subd. 1 and add a subdivision, Minn. Stat. §
279.01, subd. 5, that grant a four-month grace period for
complying with the property tax due dates for homestead
property owned by an individual who is on federal
active service. Section 20 also specifies that no late fees
or penalties may be assessed during this period and the
taxpayer must also provide proof of the dates of active
federal service at the time of payment. Effective July 1,
2013.
• Active federal service; delinquent homestead
property taxes. Section 21 amends Minn. Stat. §
279.02 to provides that property owned by an individual
who is on active federal service on the property tax
due date shall not be deemed delinquent. Effective July 1,
2013.
• Confessions of judgment for commercial, industrial,
and utility real and personal property. Section
22 amends Minn. Stat. § 279.37, subd.1a to remove
the value cap of $500,000 for class 3a property (commercial,
industrial, and utility real and personal property
) eligible for a confession of judgment, and adds an
approval requirement by the county auditor. This section
also allows assessment authorities or municipalities
to waive or abate repayment of a portion of special
assessments. The county auditor may require conditions
including, but not limited to, environmental remediation
when considering eligibility. Effective July 1, 2013.
2013 Law Summaries Page 51

• Confessions of judgment installment payments.
Section 23 amends Minn. Stat. § 279.37, subd. 2 to
adjust amount and number of payments under confessions
of judgment by allowing an initial payment of
one-fifth the amount and four equal, annual installments.
Effective July 1, 2013.
• Expiration of time for redemption. Section 24
amends Minn. Stat. § 281.14 to conform a cross-reference
for redemption periods. Effective July 1, 2013.
• Redemption period for homestead and seasonal,
residential, recreation land. Section 25 amends
Minn. Stat. § 281.17 to remove the five-year period for
redemption for homestead or seasonal residential recreational
land. This has the effect of instituting a three-year
redemption period for most properties. Effective July 1,
2013.
• Hennepin and Ramsey counties mortgage registry
tax authorization. Section 26 amends Minn.
Stat. § 287.05 to codify the authority for Hennepin and
Ramsey counties to levy an additional mortgage registry
tax in the statute governing mortgage registry taxes.
Effective for deeds and mortgages acknowledged on or after July
1, 2013.
• Hennepin and Ramsey counties deed tax authorization.
Section 27 adds a new section, Minn. Stat.
287.40, that codifies the authority for Hennepin and
Ramsey counties to levy an additional deed tax. Effective
for deeds and mortgages acknowledged on or after July 1, 2013.
• Ramsey County mortgage registry and deed tax
expiration. Section 28 amends Minn. Stat.§ 383A.80,
subdivision 4 to extend the Ramsey County authority
to levy additional mortgage registry and deed taxes by
15 years to Jan. 1, 2028. Effective for all deeds and mortgages
acknowledged on or after July 1, 2013.
• Hennepin County mortgage registry and deed tax
expiration. Section 29 amends Minn. Stat. § 383B.80,
subdivision 4 to extend the Hennepin County authority
to levy additional mortgage registry and deed taxes by
15 years to Jan. 1, 2028. Effective for all deeds and mortgages
acknowledged on or after July 1, 2013.
• Special service district authorization extended.
Section 30 amends Minn. Stat. § 428A.101 to extend
city authority to establish new special service districts
without special authorization by 15 years to June 30,
2028. Effective May 24, 2013.
• Housing improvement district authorization
extended. Section 31 amends Minn. Stat § 428A.21 to
extend city authority to establish new housing improvement
districts without special authorization by 15 years
to June 30, 2028. Effective May 24, 2013.
• Bloomington fiscal disparities repayment computation.
Section 32 amends Minn. Stat § 473F.08,
subdivision 3a to relieve Bloomington of its obligation
to repay a loan it received from the metropolitan fiscal
disparities pool for infrastructure improvements related
Page 52
to the Mall of America in the late 1980s and 1990s. This
provision relieves the City of the last four years of repayment,
2015-2018. The state will make the extra payments
to the pool for those four years. Effective beginning
with taxes payable in 2015.
• Cook-Orr Hospital District. Section 33 amends Laws
1988, chapter 645, section 3, as amended most recently by
Laws 2008, chapter 154, article 2, section 30, to allow the
Cook-Orr Hospital District levy to be used to purchase
equipment, parts, and replacement parts for ambulances,
in addition to the existing authority to purchase ambulances.
The proceeds of the levy must be divided equally
between the Cook and Orr ambulance services. Effective
July 1, 2013.
• Northwest Minnesota Housing and Redevelopment
Authority levy authority. Section 35 amends
Laws 2008, chapter 366, article 5, section 33, (the effective
date) to extend the authority of the Northwest
Minnesota Multicounty Housing and Redevelopment
Authority to levy up to 25 percent of its total levy
authority on its own by five years, through taxes payable
in 2018. Effective beginning with taxes payable in 2014.
• Cloquet area fire and ambulance taxing district
agreement. Section 36 amends Laws 2009, chapter 88,
article 2, section 46, subdivision 1 to allow municipalities
that are non-contiguous to current member-municipalities
to join the district. Effective July 1, 2013.
• Cloquet area fire and ambulance taxing district
tax. Section 37 amends Laws 2009, chapter 88, article 2,
section 46, subdivision 3 to require the district board to
determine the amount of the levy attributable to fire and
ambulance services. Costs of ambulance services shall be
levied at a rate not to exceed 0.019 percent of estimated
market value and for municipalities that receive both fire
and ambulance services the levy shall be at a rate not to
exceed 0.2835 percent. Effective July 1, 2013.
• Marshall County farm homesteads. Section 38
amends Laws 2010, chapter 389, article 1, section 12,
(the effective date) to allow farmers in Marshall County
who were forced to move away from their farms due
to flooding in 2009 to continue to receive agricultural
homestead classification on the farmland indefinitely,
provided they continue to reside in Minnesota within 50
miles of the land. This provision was originally adopted
in 2010 on a temporary (two-year) basis. Effective for
assessment year 2012 and thereafter.
• Entertainment facilities coordination study. Section
39 is an uncodified session law that requires the
cities of Minneapolis and St. Paul to report to the Legislature
by Feb. 1, 2014, their study of providing a joint
governing structure for the arenas in the two cities. This
section also requires the commissioner of administration
to contract with a consultant to conduct all or a portion
of the study, requires the two cities to each pay onehalf
of the cost of the study, and provides a general fund
League of Minnesota Cities

appropriation of $50,000 to the commissioner of administration
to pay up to one-half of the cost of the consultant
contract. Effective May 24, 2013.
• Reimbursement for tax abatements. Section 40
amends Laws 2011, First Special Session chapter 7, article
5, section 13 to require the commissioner of revenue
to reimburse taxing jurisdictions for property tax abatements
granted because of a tornado that damaged parts
of Minneapolis and other parts of the northern metro
area in 2011. The state authorized these abatements
including state reimbursements in the 2011 tax bill, but
Hennepin County’s request for reimbursements was submitted
after the deadline in the legislation. Effective May
24, 2013.
• St. Paul Saints stadium property tax exemption.
Section 41 is an uncodified session law that grants a
property tax exemption for a city-owned baseball stadium
primarily used by a minor league team. The stadium
remains subject to special assessments. Effective the
day after compliance by the governing body of the City of St.
Paul with Minnesota Statutes, section 645.021, subdivisions
2 and 3.
• Target Center property tax exemption. Section
42 is an uncodified session law that provides a property
tax exemption for the Target Center. The exemption
does not apply to any portion of the facility leased
for business purposes unrelated to the operation of the
arena, including a restaurant open more than 200 days a
year. Effective the day after compliance by the governing body
of the City of Minneapolis with Minnesota Statutes, section
645.021, subds 2 and 3.
• Public entertainment facility; construction manager
at risk. Section 43 is an uncodified session law
that allows the City of Minneapolis to contract with
persons, firms, or corporations to perform projects to
renovate, refurbish and remodel the Target Center under
either the traditional design-bid-build or construction
manager at risk, or a combination thereof. Effective the
day after compliance by the governing body of the City of Minneapolis
with Minnesota Statutes, section 645.021, subds 2
and 3.
• Extension of property tax due date for resorts.
Section 44 is an uncodified session law that extends the
time resort owners and other seasonal business owners
have to pay their first half property taxes by two weeks,
from May 31 to June 14, for taxes payable in 2013 only.
Effective May 24, 2013.
• Report on tier structure for 4d class (low-income
rental housing). Section 45 is an uncodified session
law that requires the commissioners of revenue and the
housing finance agency to report to the Legislature by
Jan. 31, 2015, on the effect of the changes to the class 4d
(low-income rental housing) tier structure found in section
18 above. Effective July 1, 2013.
• Study and report on production property; moratorium
on assessment changes. Section 46 is an
uncodified session law that requires the commissioner
of revenue to study the assessment of property used in
the production of biofuels and other industries that use
similar types of equipment, and report the findings of
the study to the Legislature by Feb. 1, 2014. This section
also prohibits assessors from changing current assessment
practices with regard to the taxable status of property
used in the production of biofuels and other industries
that use similar types of equipment, for taxes payable in
2014 and 2015 only. Effective July 1, 2013.
• Property tax savings report. Section 47 is an uncodified
session law that requires all counties and each city
with a population over 500 to include along with its
certification of its proposed levy, the amount of sales and
use tax paid or estimated to have been paid in 2012. This
section also requires the proposed tax notice to include
a separate statement providing a list of sales and use taxes
certified by the county and cities. At the fall public tax
hearing, the county or the city must discuss the savings
as a result of the sales tax exemption for cities and counties
provided in Article 8 of Chapter 143. Effective for
notices for taxes payable in 2014 only. Effective May 24,
2013, for taxes levied in 2013 and payable in 2014.
• Levy limits for taxes levied in 2013. Section 48 is
an uncodified session law that establishes a levy limit for
taxes payable in 2014 only for all counties over 5,000
population and all cities over 2,500 population. The
levy limit base is the certified levy minus allowable special
levies (generally for debt service, natural disasters
and abatements) plus the certified LGA for taxes payable
in 2012 or 2013, whichever is greater, increased by
3 percent. The levy limit is the levy limit base minus the
certified LGA for 2014. In no case may the levy limit be
less than the certified levy for taxes payable in 2012 or
2013, whichever is greater. In addition to the allowable
levy limit, cities can additionally levy for allowable special
levies (generally for debt service, natural disasters and
abatements and levies approved by voters that are applied
to referendum market value). For more information on
the levy limit, please see Appendix A. (Note: The allowable
special levies were amended in the corrections bill,
Chapter 144, section 18.) Effective for taxes levied in 2013,
payable in 2014, only.
• City of Moose Lake state facility grant. Section 49
is an uncodified session law that appropriates $2 million
in FY 2014 for a grant to the City of Moose Lake
for reimbursement for payments related to connection of
state facilities to a sewer line. Effective July 1, 2013.
Article 5: Special taxes
This article makes changes in various special taxes including.
Article 5 modifies and increases to tobacco taxes;
repeals the health impact fee and fund and replaces it with
2013 Law Summaries Page 53

an increase in the regular tobacco excise tax; makes changes
to the taxes imposed on jet fuels as well as aircraft in lieu
taxes; and directs that some of the revenues raised under the
jet fuel provisions are deposited into the state airports fund.
• Revenues from aircraft sales deposited in state
airports fund. Section 5 amends Minn. Stat. § 297A.82
to require that any tax collected from the sale or purchase
of an aircraft taxable under chapter 297A is to be
deposited in the state airports fund established in Minn.
Stat. § 360.017. These funds, estimated to be $2.9 million
per year, were previously deposited in the state general
fund. Effective on July 1, 2014 and applied to sales and purchases
made on or after that date.
• Lawful gambling-raffle drawings without
registering. Section 21 amends Minn. Stat. § 349.166,
subd. 1 to expand the ability for organizations to
conduct raffle drawings without registering with the
Minnesota Gambling Control Board. Under current
law, an organization does not need to register if the
organization does not annually award more than $1,500
in prizes. Under this section, the registration exclusion is
expanded to allow a 501(c)(3) organization to conduct
a raffle without registering if the organization does not
award more than $5,000 at an event in the calendar year.
Effective July 1, 2013.
Article 6: Individual income and corporate franchise taxes
• Greater Minnesota internship program. Sections 4
adds a new section, Minn. Stat. § 136A.129, and Section
12 amends Minn. Stat. § 290.06, to establish an
internship program for students at Minnesota public,
post-secondary institutions, or a baccalaureate degree
granting nonprofit Minnesota institution, to be administered
by the Office of Higher Education. The goal of
the program is to connect students with non-metro area
Minnesota employers for permanent employment in
Greater Minnesota. The internship must be at a place of
employment in Greater Minnesota (outside of the counties
of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti,
Ramsey, Scott, Sherburne, Washington, and Wright).
Employers are eligible for an income tax credit. Effective
for taxable years beginning after Dec. 31, 2013.
• Historic structure rehabilitation credit. Sections 17
through 20 and Section 32 extend the historic structure
rehabilitation credit sunset and makes various changes to
the program:
• Section 16 amends Minn. Stat § 290.0681, subd.1,
defining “federal credit” as the federal historic structure
rehabilitation credit, and the terms “placed in
service” and “qualified rehabilitation expenditures,”
to have the meanings given in the Internal Revenue
Code for the federal credit. Effective the day following
final enactment.
• Section 17 amends Minn. Stat. § 290.0681, subd. 3
to authorize the State Historic Preservation Office
Page 54
(SHPO) of the Minnesota Historical Society to
collect up to 0.5 percent of estimated qualified
rehabilitation expenditures, up to a maximum of
$40,000, as an application fee for a project. Prior
to this change, the law limited the application fee,
which is used to offset the costs of administering the
credit and preparing reports, to $5,000. This section
also requires the SHPO to notify the developer in
writing if a project is eligible for a credit. This section
allows determinations of the SHPO regarding project
eligibility for the historic credit to be appealed
through a contested case procedure under Minn. Stat.
ch. 14, within 45 days of the written notification.
Effective the day following final enactment, except the fee
increase applies to applications first received on or after the
day following final enactment.
• Section 18 amends Minn. Stat. § 290.0681, subd. 4
to allow grant agreements to provide for grants to
be issued to an individual or entity other than the
developer. This section also requires entities that are
assigned a credit certificate to notify the commissioner
within 30 days of being assigned a credit, in a
form and manner prescribed by the commissioner, and
clarifies that the pass-through of credits to owners of a
pass-through entity are not considered credit assignments.
Effective May 24, 2013.
• Section 19 amends Minn. Stat. § 290.0681, subd. 5
to allow entities with multiple owners to allocate the
credit among owners based on an “executed agreement.”
Current law allows allocation of the credit
either based on the ownership of the entity’s assets, or
as specified in the entity’s organizational documents.
Effective May 24, 2013.
• Section 20 amends Minn. Stat. § 290.0681, subd. 10 to
extend the availability of the historic structure rehabilitation
credit from June 30, 2015 to June 30, 2021.
Effective May 24, 2013.
• Section 32 amends Laws 2010, chapter 216, section
11 (the effective date), to make the credit effective for
rehabilitation expenditures first paid by the developer
or taxpayer after May 1, 2010, and for rehabilitation
that occurs after May 1, 2010, provided that the
application submitted for credit eligibility is submitted
before the project is placed in service. Effective May 24,
2013, and applies retroactively for certified historic structures
placed in service after May 1, 2010, but no credit certificates
allowed under the change to this effective date clarification
may be issued until July 1, 2013.
Article 8: Sales and use tax; local sales taxes
• Sales tax exemption for qualified Greater Minnesota
business expansions. Section 1 adds a new
section, Minn. Stat. § 116J.3738, and Section 28 adds a
new subdivision, Minn. Stat. § 297A.68, Subd. 49, that
together provide for a sales tax exemption for qualify-
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ing Greater Minnesota businesses. A qualified business is
defines as a business that:
• Has operated in Greater Minnesota for at least one
year before applying for certification;
• Pays or agrees to pay its employees compensation of at
least 120 percent of the federal poverty line for a family
four not including benefits mandated by law;
• Plans and agrees to expand its employment in Greater
Minnesota by a minimum number of employees; and
• Receives qualification from the commissioner of
Department of Employment and Economic Development
(DEED) as a qualified business.
Public utilities and retail employers that are primarily
engaged in selling to purchasers physically present at
the business’s location are ineligible.
The business must apply to the commissioner of
DEED for certification as a qualified business. A copy of
the application must also be filed with the chief clerical
officer of the city, or the county auditor if located
outside a city. DEED must determine that the business
would not expand its operations in Greater Minnesota
without the sales tax exemption and the business must
enter into a business subsidy agreement with DEED that
will satisfy minimum expansion requirements within
three years of execution of the agreement. The city or
county in which a business or agricultural processing
facility proposes to expand may file support or opposition
to the certification with DEED. Certification is
valid for 12 years beginning the first day of the calendar
month following execution of the business subsidy
agreement. The minimum expansion requirements, based
on the number of employees in Greater Minnesota at
the time of execution of the agreement, are:
• 50 or fewer FTEs: must increase by five or more FTEs.
• 51-199 FTEs: must increase FTEs by at least 10 percent.
• 200 or more FTEs: must increase by at least 21 FTEs.
The certified businesses must meet the minimum
expansion requirements within three years of entering
the business subsidy agreement and continue to satisfy
the requirements for the duration of the certification
period. A business would cease to be a qualified business
at the end of its certification period or the date the commissioner
finds that the business failed to meet its minimum
expansion requirements. The commissioner may
waive a breach of the certification agreement after consulting
with the commissioner of revenue if the breach is
the result of natural disaster, unforeseen industry trends,
an overall decline in the statewide or Greater Minnesota
economy, or the loss of a major supplier or customer.
Section 28 provides an upfront sales tax exemption
for purchases of tangible personal property and taxable
services purchased by a qualified business if the exemption
is provided for in the business subsidy agreement
under Section 1 above. The property or services must
be primarily used or consumed in Greater Minnesota
and the purchase must have been made, and delivery
received, during the certification period.
Purchase and use of construction materials used or
consumed in, and equipment incorporated into, the construction
of improvements to real property in Greater
Minnesota are exempt if the improvements are used
in the conduct of the trade or business of the qualified
business. The exemption applies for state and local sales
and use taxes. The allocations to all qualifying businesses
may not exceed $7 million in a fiscal year, but any qualifying
claims not paid in one year are available in subsequent
years. Unused amounts may be carried forward
and used for refunds in future years. Section 1 is effective
May 24, 2013, and Section 28 is effective for sales and purchases
made after June 30, 2014.
• Definition of retail sale. Section 3 amends Minn.
Stat § 297A.61, subd. 4 to clarify that payments made
to electric utilities and cooperatives as a contribution in
aid of construction is a contract for improvement to real
property and not a taxable sale. Effective for sales, purchases,
and leases entered after June 30, 2013.
• Sales tax collection responsibility for retailer not
maintaining place of business in Minnesota. Section
18 amends Minn. Stat. § 297A.66, subd. 3 to clarify
that a remote seller must collect and remit the state sales
tax in accordance with any federal remote seller law. If
the Main Street Fairness Act now before Congress is
enacted into law, this change will allow Minnesota to
impose the duty to collect the sales tax on remote sellers.
Effective May 24, 2013.
• Solicitor nexus. Section 19 adds a subdivision to
Minn. Stat. § 297A.66, subd. 4a, that provides a definition
of “solicitor,” which includes residents in the state
who directly or indirectly refer potential customers to a
seller through website or similar link for a commission
or other consideration.
The presumption is that a retailer without a physical
presence in Minnesota has nexus if the total receipts
of sales to Minnesota customers generated by Internet
referrals made through websites operated by Minnesota
residents exceed $10,000 in the last 12-month period. A
rebuttal process to this presumption is provided. Effective
for sales and purchases made after June 30, 2013.
• Capital equipment up-front exemption. Section
26 amends Minn. Stat. § 297A.68, subd. 5 to eliminate
the requirement that the sales tax on capital equipment
purchases be paid at the time of purchase and refunded
as provided in statute. Effective for sales and purchases made
after Aug. 31, 2014.
• Qualified data centers. Section 27 amends Minn. Stat.
§ 297A.68, subd. 42 to modify the sales tax exemption
for data centers by adding “refurbished data centers” and
modifying the qualifications as follows:
• Reduces the investment requirement from $50 million in
24-month period to $30 million in a 48-month period.
2013 Law Summaries Page 55

• Reduces the minimum square footage requirement of
the building housing the data center from 30,000 to
25,000 square feet.
• Reduces the amount of space that must be “substantially
refurbished” for building the data center from
30,000 square feet to 25,000 square feet.
• Defines “substantially refurbished” to retain the
requirement of $50 million in investment within 24
months.
• Specifies that “computer software” included in calculating
investment includes the maintenance, licensing,
and customization of the software.
Effective for sales and purchases made after June 30, 2013.
• City and county exemption from the state sales
tax. Section 29 amends Minn. Stat. § 297A.70, subd. 2
to add cities and counties to the list of purchasers eligible
for a sales tax exemption on qualifying purchases.
Purchases by cities, counties, and townships were subjected
to the state sales tax beginning in 1992. Townships
were exempted under a change enacted in 2011. This
provision does not exempt purchases of goods or services
used as inputs to goods and services generally provided
by a private business, such as those provided by liquor
stores, utilities, golf courses, marinas, health and fitness
centers, campgrounds, cafes, and laundromats. Goods
and services generally provided by a private business do
not include housing services, sewer and water services,
wastewater treatment, ambulance and other public safety
services, correctional services, core or homemaking services
provided to elderly or disabled individuals, or road
and street maintenance or lighting. Effective for sales and
purchases made after Dec. 31, 2013.
• Nursing homes and boarding care homes. Section
36 amends Minn. Stat. § 297A.70 to provide a sales tax
exemption for most purchases by a nursing home or a
boarding care facility. To qualify:
• The nursing home must be licensed by the state, and
the boarding care home must be certified as a nursing
facility under federal law.
• Be an exempt 501(c)(3) entity.
• Either be certified to participate in the medical assistance
program, or certify to the commissioner of revenue
that it does not discharge residents due to inability
to pay.
The exemption does not apply to certain construction
materials, lodging, prepared food and drink, and
leased vehicles not used to transport residents and property
to the facility. Effective for sales made after June 30,
2013.
• Biopharmaceutical manufacturing facility sales
tax exemption. Section 37 adds a subdivision to Minn.
Stat. § 297A.71, subd. 45 to provide a sales tax exemption
for materials, supplies, and capital equipment incorporated
into construction, improvement, or expansion of
Page 56
a biopharmaceutical manufacturing facility if the facility
meets the following conditions:
• It manufactures biologics.
• It makes a total capital investment of at least $50 million.
• The facility creates and maintains 190 new FTE
employees in the state.
• The Department of Employment and Economic
Development determines that the project meets
these requirement in each year in which a refund is
requested.
The known qualifying project is related to a business
location in the City of Brooklyn Park. The exemption
also applies to materials used in privately owned infrastructure
needed to support the facility. The tax is owed
at the time of purchase, and the owner of the facility
may apply for a refund. The refund is metered out so that
25 percent of the total allowable refund to date is paid
annually. Effective retroactively to investments entered into and
jobs created after Dec. 31, 2012, and before July 1, 2019.
• Research and development facility sales tax
exemption. Section 38 adds a subdivision to Minn. Stat.
§ 297A.71, subd 46 to exempt materials and supplies
used or consumed in, and equipment incorporated into,
the construction or improvement of a qualifying research
and development facility. The facility must have laboratory
space of at least 400,000 square feet, utilize high
and low-intensity laboratories, and have a total construction
cost of at least $140 million in a 24-month period.
The known qualifying project is related to a business in
Maplewood. Effective for sales and purchases made after June
30, 2013 and before Sept. 1, 2015.
• Industrial measurement manufacturing and controls
facility. Section 39 adds a subdivision to Minn.
Stat. § 297A.71, subd 47 to provide a sales tax exemption
for materials, supplies, capital equipment, and fixtures in
construction, improvement, or expansion of an industrial
measurement manufacturing and controls facility if the
facility meets the following conditions:
• Total capital investment of at least $60 million.
• Employs 250 new FTE employees in the state.
• The Department of Employment and Economic
Development determines that the project has a significant
impact on the state economy.
The exemption also applies to materials used in
privately owned infrastructure needed to support the
facility. The tax is owed at the time of purchase and the
owner of the facility may apply for a refund. The known
qualifying project is related to a business in Shakopee.
Effective for sales and purchases after June 30, 2013.
• Tax collected and refunds for specific projects.
Sections 40 and 41 amend Minn. Stat. § 297A.75, subd. 1
and Minn. Stat.§ 297A.75, subdivision 2 to provide that
the purchasers of construction materials and equipment
granted an exemption under sections 37 to 39 above
may pay the tax and apply for a refund of sales taxes paid.
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Section 40 is effective for sales and purchases made after June • Removes the requirement that the tax in subdivision
30, 2013. Section 41 is effective May 24, 2013.
1a expires when the proceeds are sufficient to pay the
• Application for refund for specific projects. Section
42 amends Minn. Stat. § 297A.75, subd. 3 to pro-
choose to repeal the tax any time after that time.
bonds in subdivision 2a; however, it allows the city to
vide that subcontractors and contractors must provide Effective the day after the governing body of the City of Rochester
and its chief fiscal officer comply with Minn. Stat.§
information to the facility owner on taxes paid on
construction materials exempt under Sections 37 to 39 645.021, subdivisions 2 and 3.
above to allow the owners to apply for a refund. The
• Central Minnesota cities; use of sales tax revenues
owner of the biopharmaceutical manufacturing facility
and termination of tax. Section 47 amends Laws
under section 37 may not apply for a refund until after
2005, First Special Session chapter 3, article 5, section 37,
June 30, 2016, and may only file one refund application
per year. Also updates a cross reference related to
subdivision 2 to modify one of the existing allowed uses
of the sales tax in the City of St. Cloud to limit funding
to regional community and aquatic centers. Section
the repeal of the capital equipment sales tax collection
requirement. Effective May 24, 2013.
48 amends Laws 2005, First Special Session chapter 3,
• Local sales tax referenda; authorized expenditures.
Section 43 amends Minn. Stat. § 297A.99, subd.
article 5, section 37, subdivision 4 to allow each city (St.
Joseph, Sartell, Waite Park, Sauk Rapids, and St. Augusta)
1 to authorize political subdivisions to expend funds
to extend the tax in its community from 2018 to 2038,
to disseminate information included in a city council
provided the extension is approved by the voters no later
resolution adopting the imposition of a local sales tax;
than Nov. 7, 2017, at either a general election or a special
provide notice of and conduct forums for expression of
election held on the first Tuesday after the First Monday
public opinion on the referendum; and provide facts and
of a November. The vote must still list the projects to be
data on the impact of a proposed sales tax and on the
funded from the tax extension but the tax does not have
programs and projects that are proposed to be funded
to expire for one year before being re-imposed. Both
with the local sales tax. Effective May 24, 2013.
sections are effective for the city that approves them the day
• St. Paul use of sales tax revenues. Section 44 amends
after compliance by the governing body of each city with Minn.
Laws 1993, ch. 375, art. 9, sec. 46, subd. 2, (as amended
Stat.§ 645.021, subdivisions 2 and 3.
most recently by Laws 2009, ch. 88, art. 4, sec. 15) to
• Clearwater; use of sales tax revenues. Section 49
allow the City of St. Paul to deposit into an economic
amends Laws 2008, chapter 366, article 7, section 19,
development fund any portion of the 40 percent of its
subdivision 3, as amended by Laws 2011, First Special
sales tax revenue dedicated to the St. Paul Civic Center
Session chapter 7, article 4, section 8 to provide a specific
list of park and trail improvements that the City
Complex not needed for meeting civic center obligations.
Effective the day after compliance by the governing body
of Clearwater may fund with its local sales tax. The $12
of the City of St. Paul with Minn. Stat.§ 645.021, subds 2
million total amount of revenue that the city was permitted
to raise from the sales tax remains the same as it
and 3.
• St. Paul extension of expiration of tax authority.
Section 45 amends Laws 1993, ch. 375, art. 9, sec. 46,
was in the original 2008 authorizing legislation. Effective
the day after compliance by the governing body of the City of
subd. 5, as amended by Laws 1998, ch. 389, art. 8, sec. 32
Clearwater with Minn. Stat.§ 645.021, subdivisions 2 and 3.
to extend the authority for the St. Paul local sales tax to
• Marshall; use of food and beverage tax and validation
of prior act. Section 50 amends Laws 2010, chap-
Dec. 31, 2042. The tax is currently set to expire on Dec.
31, 2030. Effective the day after compliance by the governing
body of the City of St. Paul with Minn. Stat.§ 645.021,
ter 389, article 5, section 6, subdivision 6 to allow the
City of Marshall to use proceeds of this tax for construction
of the Minnesota Emergency Response and Train-
subds 2 and 3.
• Rochester lodging tax. Section 46 Laws 2002, ch.
ing Center and the Southwest Amateur Sports Center,
377, art. 3, sec. 25, as amended by Laws 2009, ch. 88, art.
as well as for their ongoing maintenance costs. Section
4, sec. 19, and Laws 2010, ch. 389, art. 5, sec. 3 modifies
51 gives the City of Marshall until July 1, 2013, to file
the Rochester lodging tax as follows:
its approval of the special laws authorizing the food and
• Increases the allowed rate of the lodging tax imposed
beverage and lodging taxes originally enacted in 2010.
to fund construction, renovation, improvement, and
Both sections are effective May 24, 2013.
expansion of the Mayo Civic Center Complex from 1
• City of Proctor; validation of prior act. Section 52
percent to 3 percent.
allows the City of Proctor to approve the extended uses
• Adds design costs to the allowed uses for the lodging
and additional bond authority authorized under 2008
tax proceeds.
and 2010 special law by passing a resolution and filing the
• Increases the authority to issue bonds for this project
approval with the secretary of state by Jan. 1, 2014. The
from $43.5 million to $50 million.
additional bonding authority in the 2010 law was already
approved by the city voters. Effective May 24, 2013.
2013 Law Summaries Page 57

Article 9: Economic development
• Bloomington Port Authority public bidding
requirement. Section 1 amends Minn. Stat. § 469.071,
subd. 5 to modify the Bloomington Port Authority’s
special law exception to the general competitive bidding
requirements. Under present law, this exception is
limited to structured parking constructed above, below,
or adjacent to the development. The section expands
the exemption to apply regardless of the source of port
authority funds used (present law is limited to TIF
and revenue bonds) and to extend it to other public
improvements in addition to structured parking. Effective
upon compliance of the governing body of the City of
Bloomington with the requirements of Minn. Stat.§ 645.021,
subdivisions 2 and 3.
• Border city funding. Section 2 amends Minn. Stat. §
469.169 to allocate $1.5 million for border city enterprise
zone and border city development zone tax reductions.
This allocation is divided equally between the
two programs, but the city can reallocate the amounts
between the two programs. The allocation is divided
among the qualifying border cities on a per capita basis.
The five cities that qualify are Moorhead, Dilworth, East
Grand Forks, Breckenridge, and Ortonville. Effective July
1, 2013.
• TIF economic development districts. Section 3
amends Minn. Stat. § 469.176, subd. 4c to eliminate
obsolete language related to qualified border retail facilities
as well as the temporary 2010 jobs bill exemptions.
(Note: Although the Senate tax bill extended the 2010
jobs flexibilities for two additional years, the final bill did
not include the extension.) Effective for districts for which
the request for certification was made after June 30, 2012.
• TIF general government use. Section 4 amends
Minn. Stat. § 469.176, subdivision 4g to eliminate the
prohibition on using tax increments for improvements
and equipment that either primarily serve a decorative
or aesthetic purpose or have costs twice as high because
of the selection of the types of materials or designs
compared with more commonly used improvements or
equipment. Effective May 24, 2013, for all tax increment
financing districts, regardless of when the request for certification
was made, but applies only to amounts spent after final enactment.
• TIF four-year rule. Section 5 amends Minn. Stat. §
469.176, subd. 6 to extend through Dec. 31, 2016, the
temporary two-year extension of the four-year rule that
applies to TIF districts certified between Jan. 1, 2005,
and April 20, 2009. Effective May 24, 2013, and applies to
districts certified on or after Jan. 1, 2005, and before April 20,
2009.
• TIF original local tax rate; general education levy.
Section 6 amends Minn. Stat. § 469.177, subd. 1a to
exclude the tax rate attributable to the reinstated general
education levy from the certified original TIF tax
Page 58
rate. This change will prevent the general education tax,
authorized under Session Laws 2013, Chapter 116, from
applying to the captured tax capacity and from generating
tax increment. Effective for districts for which the request
for certification is made after April 15, 2013.
• TIF Adjustment to original net tax capacity. Sections
7 adds a subdivision to Minn. Stat. § 469.177, subd.
1d, to authorize development authorities to elect to
reduce the original net tax capacity of a qualifying TIF
district to adjust for the effects the homestead market
value exclusion (HMVE). The HMVE had the effect
of reducing the amount of increment in districts with
qualifying homestead property. Under this new law, the
development authority can elect to reduce a qualifying
district’s original tax capacity which will have the effect
of increasing captured tax capacity and the amount of
tax increment for the district.
The election must be approved by the municipality,
which is typically the city in which the TIF district
is located. The election is limited to districts that have
a large loss in captured tax capacity as a result of enactment
of the HMVE. To qualify for the election, a district
must satisfy three criteria:
(1) The district received a homestead market value
credit of $10,000 or more for taxes payable in
2011 (the last year before the credit was replaced
by the HMVE).
(2) The captured net tax capacity of the district must
have dropped by at least 1.75 percent as a result
of the HMVE for taxes payable in 2013 (the most
recently available year).
(3) Either the district’s five-year rule must still be
open (i.e., the increments are still permitted to be
spent) or the district must not have enough increment
to pay its outstanding bonds.
For a qualifying district, the subtraction will equal
the reduction in net tax capacity of the TIF district
that results from the HMVE for taxes payable in 2013.
The subtraction cannot reduce original net tax capacity
below zero. An election must be made before July 1,
2014. For an election to apply for taxes payable in 2014,
it must be made by July 1, 2013. Effective May 24, 2013,
and applies to all tax increment financing districts regardless of
when the request for certification was made.
• Adjustment to original TIF net tax capacity;
qualifying 4d class (low-income rental housing)
districts. Section 8 adds a subdivision to Minn. Stat. §
469.177, Subd. 1e, to provide for a reduction in original
net tax capacity for qualifying TIF districts of up
to $20,000. Reductions in original tax capacity under
this provision have the effect of increasing captured tax
capacity and the amount of tax increment for the district.
To qualify for the reduction, the district must have
been certified in calendar year 2011 and have 75 percent
of its value in class 4d apartment property apartment
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property and have a per unit market value of at least creating a redevelopment TIF district) requires that 70
$115,000. The adjustment expires for property taxes payable
in 2021. Effective beginning for taxes payable in 2014. ings or other qualifying structures and that 50 percent
percent of the parcels in an area be occupied by build-
• Distributions of general education levy taxes. Section
9 amends Minn. Stat. § 469.177, subdivision 9 to as being occupied by a substandard building if the par-
of the buildings be substandard. A parcel can be treated
provide that the taxes paid by captured tax capacity of cel was occupied by a substandard building that was
TIF districts that are attributable to the new general demolished within three years of certification of the
education levy authorized under Laws 2013, Chapter
143, Article 3, will be paid to the school district that vides special rules for meeting this four-part test:
district and if a four-part test is satisfied. The bill pro-
imposed the levy. Effective for districts for which the request ··
The three-year time limit between demolition of
for certification is made after April 15, 2013.
the building and the certification of the district does
• Mall of America (MOA) fiscal disparities calculations.
Section 10 adds a new subdivision to Minn. Stat. ··
The requirement that private demolition (if done
not apply.
§ 473F.08, Subd 3c, to provide that commercial-industrial
tax capacity in the MOA TIF districts is exempt
authority) be done under a development agreement
by the property owner rather than the development
from contributing to the area-wide pool and that tax
does not apply.
increments in the MOA TIF districts include the tax that The adjustment to original net tax capacity (increasing
it for any reduction in tax capacity resulting from
would normally be paid to the area-wide pool. Effective
for taxes payable in 2014, after Bloomington certifies to the demolition of the building) does not apply. This is consistent
with the original special law, which allowed the
Hennepin County auditor that the city has entered a binding,
written agreement to rehabilitate or replace the Old Cedar Avenue
bridge, and approves the provisions of section 23 requiring Effective upon compliance by the governing body of the City
city to set the original tax capacity at the land value.
the city to transfer increments from these districts to pay for the of Oakdale with the requirements of Minn. Stat. § 645.021,
Old Cedar Avenue bridge.
subd. 3, except that the provisions of paragraph (c) are effective
• Bloomington Central Station (BCS) TIF. Section 11 only upon compliance with Minn. Stat. § 469.1782, subd. 2,
amends Laws 2008, chapter 366, article 5, section 26 to by the county and school district.
make three changes in Bloomington’s BCS TIF district:
• Oakdale TIF; extension and expanded spending
(a) Extends the five-year rule (previously extended to
authority. Section 13 amends Laws 2010, chapter 216,
ten years under 2008 special legislation) to 15 years.
sec. 55 to extend the duration of the Bergen Plaza TIF
(b) Allows the city to extend the duration of the district
through 2039 (an eight-year extension).
district in Oakdale by 16 years. In 2010, the Legislature
granted this district a 10-year extension, so the combined
extensions would equal 26 years. This section also
(c) Unfreezes the original tax capacity rate, allowing
the district’s increment to be calculated using
repeals the restrictions the 2010 special legislation placed
the current tax rate, not the rate that was in effect
on the extension. The 2010 legislation prohibited pooling
of increments from the district during the extension,
when the district was certified.
Bullet points (a) and (c) are effective upon compliance by except to the extent that they were used for improvements
on two listed parcels. (Pooling refers to the spend-
Bloomington with the requirements of Minn. Stat. § 645.021,
subdivision 3. Bullet point (b) is effective upon compliance ing of increments from the district on activities outside
by the governing bodies of the City of Bloomington, Hennepin
County, and Independent School District No. 271 with pre-1990 district that would otherwise not have been
of the geographic area of the district. This district is a
the requirements of Minn. Stat. §§ 469.1782, subd. 2, and subject to pooling restrictions.) Under the changes made
645.021, subd. 3.
by this section, this restriction would not apply, allowing
• Oakdale TIF. Section 12 amends Laws 2008, chapter the city to use the district’s increments on activities anywhere
in the project area. Effective upon compliance by the
366, article 5, section 34 to modify the special TIF law
for the City of Oakdale, passed in 2008 and modified in governing body of the City of Oakdale with the requirements
2009, granting the city authority to deviate from general of Minn. Stat. § 645.021, subd. 3, except that the provisions
law with regard to TIF districts created in a defined area of paragraph (c) are effective only upon compliance with Minn.
of the city. This provision makes two changes in the special
law authority:
• St. Cloud TIF. Section 14 is an uncodified session law
Stat. § 469.1782, subd. 2, by the county and school district.
• The period of time that the city has to establish TIF that deems TIF District No. 2, referred to as the Norwest
districts under the special law is extended by four years District, in the City of St. Cloud, a “gap district”—a
from 2013 to 2017.
district for which the request for certification was made
• An exemption is provided to the general “blight test” on or after Aug. 1, 1979, and before July 1, 1982. This
rules. The blight test (essentially a requirement that an will clarify when the district was certified and what TIF
area contain “blighting” conditions that legally justify rules apply to it. “Gap districts” were created before the
2013 Law Summaries Page 59

1982 Legislature allowed pooling of increments for new
TIF districts. Effective upon approval by the governing body
of the City of St. Cloud and compliance with Minn. Stat. §
645.021, subd. 3.
• Glencoe TIF extension. Section 15 is an uncodified
session law that authorizes the City of Glencoe to
extend the duration of its TIF district No. 4 through
Dec. 31, 2023. This district is a redevelopment district
that is required by general law to be decertified in 2013.
The additional increment collected during the extension
would be limited to paying debt service on bonds that
were outstanding on Jan. 1, 2013, for public improvements
serving:
• The city’s TIF district No. 14 (a redevelopment district
certified in 2004);
• The city’s TIF district No. 15 (an economic development
district certified in 2007); and
• Benefited properties related to a series of special assessment
bonds issued in 2007 (or refunding bonds).
Effective upon compliance by the governing bodies of the cities
of Glencoe, McLeod County, and Independent School District
No. 2859 with the requirements of Minn. Stat. §§ 469.1782,
subd. 2, and 645.021, subd. 3.
• Ely TIF extension. Section 16 is an uncodified session
law that allows the City of Ely to extend the duration of
its TIF district No. 1 from 2017 to 2021. The city is also
permitted to transfer increments from TIF District No.
3 to pay binding obligations of the TIF District No. 1,
which has a deficit. This transfer is limited to $168,000
or the amount of the shortfall in District No. 1, whichever
is less. Effective upon approval by the governing bodies
of the cities of Ely, St. Louis County, and Independent School
District No. 696 with the requirements of Minn. Stat. §§
469.1782, subd. 2, and 645.021, subd. 3.
• Dakota County Community Development Agency
(CDA) TIF district in West St. Paul. Section 17 is an
uncodified session law that allows the Dakota County
Community Development Agency (CDA) to establish
a redevelopment TIF district in the City of West St.
Paul, consisting of the parcels of a redevelopment district
decertified in 2012. The district is treated as a redevelopment
district, but it must be decertified in 2023. Under
general law, a redevelopment district is allowed 26 years
of increment, as contrasted with the five years allowed
to this district. This district would be exempt from the
blight test (i.e., the rules that restrict areas that qualify as
redevelopment districts) and is provided exemptions for
the following limits on the spending of redevelopment
district increments:
• The requirement that increments be used for blight
correction does not apply.
• The pooling rules (percentage limits on how much
increment may be spent on activities outside of the
TIF district) do not apply.
Page 60
The district’s captured tax capacity is included for
computing state aid formulas (e.g., local government
aid, county program aid, education aid, and so forth).
Effective upon compliance by the governing body of the Dakota
County Community Development Agency with the requirements
of Minn. Stat. § 645.021, subd. 3.
• City of Apple Valley TIF authority. Section 18 is an
uncodified session law that grants special law authority
to the City of Apple Valley to create TIF districts
(until Dec. 31, 2022) under special rules in a defined
area of the city. The city must find that 70 percent of the
defined area has one or more of the following conditions:
• Peat or other geotechnical difficulties with the soil
that “impair” the ability to develop the parcel.
• Substantial fill required for commercial development.
• Landfills, dumps, or similar conditions.
• Quarries (e.g., gravel pits) or similar resource extraction
sites.
• Floodway.
• Substandard building(s), as defined under the TIF
blight test under general law, on the parcel.
A parcel is treated as wholly meeting a requirement
if 70 percent of its area meets the requirement, except
that a 30-percent test applies for the substandard building
requirement.
The following exceptions to general TIF rules
would apply to new districts created in the defined area.
Any type of TIF district, except an economic development
district or housing district, could be created in the
area and qualify for these special rules.
• A new type of TIF district—a soils deficiency district—with
special qualifying rules would be allowed.
This authority roughly mirrors a similar type of district
that existed under an old TIF law, which was
repealed by the Legislature in the 1990s. To qualify, 60
percent of the area would need to have soils or terrain
difficulties with estimated correction costs such as
grading or filling that exceed the fair market value of
the property, not counting the cost of roads and other
public improvements for which landowners could be
specially assessed. These soils deficiency districts could
collect 21 years of increments and would be limited
to spending increments on land acquisition, soils
correction, public improvements, and administrative
expenses.
• The five-year rule is extended to 10 years. Under general
law, the five-year rule limits the period of time
that in-district expenditures (under the percentagepooling
rules) may be spent.
• The pooling percentage is increased from 20 percent
to 80 percent, but to qualify for the higher percentage,
the increment must be spent in the area defined by
the bill (i.e., the project area could not extend beyond
these boundaries).
League of Minnesota Cities

Effective upon approval by the governing body of the City
of Apple Valley and timely compliance with Minn. Stat. §
645.021, subd. 3.
• City of Apple Valley; TIF Authority. Section 19 is an
uncodified session law that authorizes the City of Apple
Valley to use TIF to provide improvements, loans, and
subsidies to buildings and facilities, if:
• The projects will create or retain jobs, including construction
jobs, in Minnesota.
• Construction of the project will not begin prior to
July 1, 2014 without the use of tax increment financing.
• Request for certification of the district is made no
later than June 30, 2014.
• Construction of the project begins no later than July
1, 2014.
Effective upon approval by the governing body of the City
of Apple Valley and timely compliance with Minn. Stat. §
645.021, subd. 3.
• Minneapolis value capture district for transit. Section
20 is an uncodified session law that authorizes the
City of Minneapolis to create a value capture district
to finance construction of a streetcar line and related
improvements. The city could include parcels in the
district that are located in five defined areas of the city
along the proposed line. Revenues from the district
would be calculated using the same method that applies
under the TIF law, except current tax rates would be
used, rather than a certified original tax rate. Revenues
from the district may be spent for items within an area
located within one block on either side of the streetcar
line. Permitted uses of district revenues are limited to:
• Planning and design for the streetcar line.
• Acquiring, constructing, and equipping the line.
• Acquiring, constructing, and equipping transit stations.
• Related public infrastructure improvements (sidewalks,
street improvements, etc.).
District revenues may not be used to pay for operation
of the streetcar line. The city is authorized to issue
bonds without an election under the authority. The
duration of the district is limited to 25 years or the time
needed to pay for the capital improvements, including
bonds, if that is shorter. Effective May 24, 2013.
• Maplewood TIF. Section 21 is an uncodified session
law that authorizes the City of Maplewood to establish
TIF districts within an area of the city, consisting of all
or part of the corporate campus of the 3M Company.
If the city so elects, these TIF districts will be subject
to special law rules that differ from those under general
TIF law. The city could approve TIF plans and establish
districts under this authority through Dec. 31, 2018.
The following special rules or exemptions from general
law would apply to districts certified in the defined
project area:
• Blight test exemption. Redevelopment districts
could be established without meeting the blight test.
Ninety percent of increments from the district, unlike
a general law redevelopment district, would not be
required to be spent on correction of blight.
• Pooling exemption. So long as increments are spent
within the defined project area, restrictions on pooling
increments do not apply.
• Five-year rule exemption. The five-year rule, which
requires spending to be completed within five years of
certification of the district, is extended to ten years.
• One-year knockdown rule. Parcels in a district
would be subject to a one-year knockdown rule—if
construction does not start on a parcel within one year
after its certification for inclusion in the TIF district,
the parcel would be dropped from the district and
could only be reinstated when construction actually
begins. Under general law, a four-year period applies.
Effective upon approval by the governing body of the City
of Maplewood and upon compliance with Minn. Stat. §
645.021, subd. 3.
• Mall of America (MOA) TIF district; property
transfer and extension. Section 22 is an uncodified
session law that allows the port authority and City of
Bloomington to elect to transfer several parcels between
the MOA TIF districts. This will allow these undeveloped
parcels on the northern edge of the district containing
the mall to be shifted to the district containing
the site of the former Met Center. This would have the
effect of extending by three years the ability to collect
increments from these parcels.
In addition, this section allows Bloomington to
extend the two MOA TIF districts through 2034 (an
18-year extension for the district containing the mall
and 15-year extension for the district containing the
Met Center site). During the extension, however, increment
would be limited to the special fiscal disparities
computation provided by section 10 and local tax rates
for the city, county, school, and special districts would be
computed including the captured tax capacity of the TIF
districts. The extensions would terminate for taxes payable
in 2024 if new improvements, worth at least $100
million, have not been constructed in the Met Center
District by Jan. 1, 2021.
Effective upon compliance of the governing body of the City of
Bloomington with the requirements of Minn. Stat. § 645.021,
subd. 3, but only if the city enters into a binding written agreement
with the Metropolitan Council to repair and restore, or to
replace, the old Cedar Avenue bridge for use by bicycle commuters
and recreational users. This section is effective without
approval of the county and school district under Minn. Stat. §
469.1782, subd. 2.
• City of Bloomington; Old Cedar Avenue bridge.
Section 23 is an uncodified session law that requires the
2013 Law Summaries Page 61

City of Bloomington to transfer increment from its two
MOA TIF districts equal to the amount of increment for
taxes payable in 2014 as a result of section 10 to be used
to renovate or replace the Old Cedar Avenue bridge. The
section also prohibits putting signage on or around the
bridge acknowledging contributions, sponsorships, or
sale of naming rights to the bridge. Effective upon compliance
by the City of Bloomington with the requirements of
Minn. Stat. § 645.021, subd. 3.
Article 10: Destination medical center
This article provides local bonding, taxing, and other
development financing powers to the City of Rochester to
fund public infrastructure for the Mayo Destination Medical
Center project. The city must create a nonprofit corporation
to develop the plan and help finance development.
The article provides state aid—based on the level of new
nonpublic capital investment in Mayo Clinic and other
private building projects in the city—to assist in building
public infrastructure for the development. The maximum
amount of general state aid is $327 million, with no
more than $30 million per year (the city and county are
expected to pay for $128 million to qualify for this aid). In
addition, $116 million in funding for public transit is provided
with a portion of this to be funded with local taxes.
A sales tax exemption for construction materials and supplies
is provided for public projects.
• Rochester sales and use taxes authorized. Section
11 amends Laws 1998, chapter 389, article 8, section 43,
subd. 1 to authorize the City of Rochester to impose an
additional general sales tax of up to one-quarter of 1 percent
without voter approval. This tax would be in addition
to the current one-half percent tax in Rochester.
• Rochester sales tax; use of revenues. Section 12
amends Laws 1998, chapter 389, article 8, section 43,
subdivision 3, (as amended by Laws 2005, First Special
Session chapter 3, article 5, section 28, and Laws 2011,
First Special Session chapter 7, article 4, section 5) to
require that any additional revenue resulting from either
(1) an extension of the duration of the existing local sales
tax or (2) an increase in the local sales tax rate under section
11 above, be used to fund the city share of public
infrastructure costs related to the DMC development
plan. This section repeals the requirement for the city to
share $5 million of its existing sales tax revenues with
surrounding cities. This authority is reinstated subject to
city council approval in section 14 below.
• Rochester termination of taxes. Section 13 amends
Laws 1998, chapter 389, article 8, section 43, subdivision
5, (as amended by Laws 2005, First Special Session chapter
3, article 5, section 30, and Laws 2011, First Special
Session chapter 7, article 4, section 7) to authorize the
city to extend the duration of the existing one-half of 1
percent local sales tax as late as Dec. 31, 2049, without
voter approval. This section also provides that if the sales
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tax rate is increased under section 11, the additional tax
expires at the earlier of Dec. 31, 2049, or when the city
determines that the total revenues raised by the city for
the DMC project under this and other optional taxes is
sufficient to meet the city’s obligation.
• Rochester sales tax sharing. Section 14 is a session
law that effectively reinstates the Rochester sales tax
sharing authority stricken in section 12. This section
allows the City of Rochester to share $5 million of its
local sales tax revenue collection with the surrounding
cities of Byron, Chatfield, Dodge Center, Dover, Elgin,
Eyota, Hayfield, Kasson, Mantorville, Oronoco, Pine
Island, Plainview, Spring Valley, St. Charles, Stewartville,
West Concord, and Zumbrota. The section requires the
city council to hold a hearing and approve the revenue
sharing by resolution by Sept. 1, 2013, in order to share
the money. If the city does not pass the resolution, the
$5 million is directed to paying the city share of costs
related to the DMC development plan.
Article 10 is generally effective the day after the governing body
of the City of Rochester timely complies with Minn. Stat.§
645.021, subds 2 and 3.
Article 11: Minerals taxes
The article increases the taconite production tax by five
cents per ton and makes the following changes in the distribution
of the taconite production tax revenues:
• Provides for increased payments to all school districts in
the taconite tax relief area.
• Increases the match requirement for companies receiving
distributions from the taconite economic development
fund from 50 percent to an equal match.
• Reduces the distribution to the property tax relief fund
by nine cents per ton. (This fund pays the taconite
homestead credit.)
• Modifies the one-time distributions made in 2013 Laws
Ch. 85 (the omnibus jobs bill) by decreasing a distribution
to the City of Tower and providing an additional
distribution to the City of Grand Rapids.
• Authorizes the Iron Range Resources and Rehabilitation
commissioner to issue bonds to finance school capital
projects for schools in the two taconite areas.
Article 12: Public finance
• Authority to invest in state and local securities.
Section 1 amends Minn. Stat. § 118A.04, subd. 3 to
modify the law regulating the authority to invest local
government funds in municipal securities to include:
• Revenue obligations of local governments without
taxing authority, if the obligations are rated AA or better.
Under current law, the issuing governmental unit
must have taxing power.
• Any short-term school district obligation (13
months or less) if it is either: (1) rated in the highest
League of Minnesota Cities

ating category; or (2) covered by the state credit
enhancement program.
Effective July 1, 2013.
• Guaranteed investment contracts (GICs). Section 2
amends Minn. Stat. § 118A.05, subd. 5 to authorize local
governments to invest in short-term GICs (18 months
or less), if the issuer’s or guarantor’s short-term debt is
rated in the highest rating category, even if the longterm
debt of those companies is rated below the top two
rating categories. Effective July 1, 2013.
• Special assessments for energy improvements.
Section 3 amends Minn. Stat. § 216C.436, subd. 7 to
eliminate a reference under the energy improvement
financing program (EIFP) enacted in 2010 that the
properties must be “benefited,” and allows EIFP special
assessments to be repaid in 20 equal annual installments.
Effective May 24, 2013.
• Dakota County Community Development
Agency (DCCDA) authority to establish housing
improvement areas. Section 7 adds a new subdivision
to Minn. Stat. § 383D.4, subd. 10, to authorize
the DCCDA to exercise housing improvement district
powers. The agency would be allowed to do this
by resolution, rather than ordinance, as is required for
cities exercising those powers. The community development
agency is required to send a copy of each
petition for the establishment of a housing improvement
area to the city in which the proposed housing
improvement area is located and the DCCDA may not
establish a housing improvement area if the applicable
city council opposes the establishment by resolution
adopted within 30 days after the petition is sent.
Housing improvement districts assist townhome and
condominium developments to finance rehabilitation
costs. Effective July 1, 2013.
• Home rule charter city and statutory city capital
notes. Sections 8 and 9 amend Minn. Stat. §§ 410.32
and 412.301 to expand the capital note authority for
home rule charter cities and statutory cities to allow the
purchase of application development services and training
related to the use of the computer hardware and
software. Both sections are effective July 1, 2013.
• City capital improvement program (CIP) bonds.
Section 15 amends Minn. Stat. § 475.521, subd. 1 to
authorize use of CIP bonds for expenditures incurred
before adoption of the CIP, if the expenditures are
included in the plan. Effective July 1, 2013.
• City CIP bonds; election requirement. Section 16
amends Minn. Stat. § 475.521, subd. 2 to make changes
to the city CIP reverse referendum provisions. If the
municipality elects not to submit the question to the
voters, the municipality shall not propose the issuance of
bonds under this section for the same purpose and in the
same amount for a period of 365 days from the date of
receipt of the petition. If the issue is submitted and the
voters do not approve, the issue can be resubmitted to
the voters after 180 days. Effective July 1, 2013.
• Street reconstruction bonds. Section 17 amends
Minn. Stat. § 475.58, subd. 3b to allow street reconstruction
bonds to be used for bituminous overlay projects,
which currently are not considered reconstruction.
The section makes changes in the reverse referendum
provisions that parallel the similar provisions for city
CIP bonds in section 16 above, and also provides that
expenditures incurred before adoption of the capital
improvement plan can be financed with the bonds, if
the expenditures are included in the plan. Effective July 1,
2013.
• St. Paul capital improvement plan (CIP) bonding.
Section 18 amends Laws 1971, chapter 773, section 1,
subdivision 2, (as amended most recently by Laws 2002,
chapter 390, section 23) to extend through 2014 the St.
Paul CIP bonding authority, which is set to expire at
the end of 2013. These general obligation bonds may be
issued upon a vote of five of the seven members of the
city council without voter approval—this is an exception
to the city’s home rule charter, which otherwise
would require simple majority approval by the council
and voter approval. Effective the day after compliance by
the governing body of the City of St. Paul with Minn. Stat.§
645.021, subdivisions 2 and 3.
Article 13: Miscellaneous provisions
• Purpose statements for tax expenditures. Section
22 is an uncodified session law that establishes purpose
statements for various tax expenditures added by
the omnibus tax bill, as required by Minn. Stat. § 3.192,
requires bills that create new tax expenditures or renew
existing tax expenditures to provide a purpose for the
tax expenditure and a standard or goal for use in measuring
its effectiveness. The purpose statements include:
• Federal conformity: to simplify compliance and
administration of the individual income tax.
• Income tax subtraction for federal railroad
track maintenance credit: to increase maintenance
and upgrading of railroad track in Minnesota.
• Historic structure rehabilitation credit: to create
and retain jobs related to historic rehabilitation.
• Greater Minnesota internship credit: to encourage
Minnesota businesses to provide more internships
in Greater Minnesota.
• Sales tax exemption for Greater Minnesota
businesses: to induce increased investment and
expand employment in Greater Minnesota.
• Expansion of sales tax exemption of durable
medical products to Medicare and Medicaid
purchases: to simplify sales tax administration and
provide relief for sellers unable to collect tax under
Medicare and Medicaid.
2013 Law Summaries Page 63

• Sales tax exemption for public safety radio
communications systems: to provide equal treatment
to local governments on public safety radio purchases.
• Sales tax exemption for established religious
orders: to maintain an existing exemption that is
jeopardized due to a St. John’s University governance
change.
• Sales tax exemption for certain dental providers:
to defray the costs of these providers to encourage
provision of service to underserved communities.
• Sales tax exemption for nursing homes and
boarding care homes: to maintain an existing
exemption potentially eliminated due to a property
tax court case.
• Various sales tax exemptions for construction
materials: to increase jobs and reduce tax pyramiding.
• Sales tax exemption for aircraft parts and labor:
to encourage growth of the aviation service sector in
the state.
• Sales tax exemption for public infrastructure
related to destination medical center: to reduce
city costs for projects.
Effective May 24, 2013.
Article 14: Market value definitions
Article 14 converts the computation of levy, tax, spending,
debt, and similar limits that are based on “market value” or
“taxable market value” to estimated market value. This is
done in response to the 2011 law that repealed the market
value homestead credit and established the new homestead
market value exclusion. Subsequent statutory interpretations
by the Department of Revenue had the effect of
reducing these limits by the amount of the new homestead
market value exclusion. Converting these definitions to”
estimated market value” will base these limits on the assessor’s
estimate of the properties’ fair market value, including
any board or court orders adjusting that value, but before
any exclusions, adjustments, or other changes are made to
the value for tax or legislative policy purposes. Below are
summaries of several of the more substantial sections of the
article that impact cities.
• Eminent domain blight test. Section 14 amends
Minn. Stat. § 117.025, subd. 7 to modify the definition
of “structurally substandard” under the blight test in the
eminent domain statute to refer to estimated market
value, rather than taxable market value. Effective May 24,
2013.
• Computation of adjusted net tax capacity
(ANTC) for aid distribution purposes. Section 15
amends Minn. Stat. § 127A.48, subd. 1 to require the
department of revenue to compute ANTC values for
cities, counties, and townships. ANTC is used in various
state aid formulas that are based on “equalized”
tax base amounts, including LGA, which is equalized
Page 64
or adjusted for the variations in local assessment practices
using assessment sales ratios. The existing statute,
which is codified in the school aid statutes, only refers to
the computation of ANTC for school districts but this
statute is cross-referenced by city, county and township
aid programs. This section also clarifies that the ANTC
computations use values that reflect fiscal disparities, tax
increment financing, and the power line credit. Article
14, Section 110 further directs the Revisor of Statutes
to recodify this and adjacent statutes (Minn. Stat. §
127A.48, Subds. 1 to 6) as Minn. Stat. § 273.1325, subdivisions
1 to 6. Effective May 24, 2013.
• Definition of estimated market value. Section 23
adds a new subdivision, Minn. Stat. § 272.03, Subd. 14.
to define “estimated market value” for purposes of the
property tax statutes as the assessor’s determination of
market value, including any board orders, for the parcel
of property. The definition of estimated market for a taxing
district in section 25 governs the computation of tax
levy limits, debt limits, and state aid computations. This
section contains the general definition of a parcel’s estimated
market value. Effective May 24, 2013.
• Definition of taxable market value. Section 24 adds
a new subdivision, Minnesota Statutes 2012, section
272.03, subd 15, that defines “taxable market value” for
purposes of the property tax statutes as the estimated
market value of the parcel reduced by market value
exclusions, deferments of value (e.g., green acres, rural
preserves, open space, metropolitan agricultural preserves)
and other adjustments that reduce market value
before class rates are applied. Effective May 24, 2013.
• Market value definition; computation of levy limits,
debt limits, and state aid. Section 25 amends
Minn. Stat. § 273.032 to convert the statute that provides
the general rules for computing tax levy limits,
debt limits, and state aid computations based on market
value from “taxable market value” to “estimated market
value.” Under current law, taxable market value is computed
after (1) limited market value (which has expired
and is obsolete) and (2) the “This Old House” valuation
exclusion, but includes tax-exempt wind energy values.
In addition, it provides that market value does not reflect
adjustments for TIF, fiscal disparities, and the power
line credit. In the past, the department of revenue has
applied the statute to exclude a variety of minor valuation
exclusions not explicitly referenced in the statute.
The amendments now specifically reference these minor
exclusions, while providing that estimated market value
is the value before these adjustments. By converting the
limits to estimated market value, the definition will not
reflect the reductions or shifts in value caused by the following:
• The various deferrals, such as green acres, open space,
and rural preserves. This change from current practice
will increase limits in areas with these properties.
League of Minnesota Cities

• Exclusions, including the homestead market value
exclusion enacted by the 2011 Legislature, as well as
the more minor exclusions in prior law.
• Adjustments to tax capacity, such as fiscal disparities
and TIF (current practice).
Present law requires that tax-exempt wind energy
property be added to taxable market value. The section
reverses that, confirming apparent local administrative
practices in the counties with the largest amounts
of this property. The measure of estimated market value
for tax limits is the amount for the previous assessment
year, while for debt limits it is the most recently available
amount. Limits under special law and city charters
that are based on market value are also converted to estimated
market value. Effective May 24, 2013.
• Levy limits based on mill rates; growth factor.
Section 32 amends Minn. Stat. § 275.011, subd 1 to
provide that the law converting old special law and city
charter provisions containing levy or mill rate limits will
provide increases based on the rate of growth in estimated
market value, rather than taxable market value.
Effective May 24, 2013.
• Continuance of nonconforming land uses. Section
61 amends Minn. Stat. § 394.36, subd. 1 to modify the
exception to the authority to continue nonconforming
land uses if more than 50 percent of the market value of
the building or structure is destroyed by fire or natural
disaster so that the test is based on estimated, rather than
taxable, market value. Effective May 24, 2013.
• Capital notes; home rule charter cities. Section 64
amends Minn. Stat. § 410.32 to convert the debt limit
that applies to capital notes issued without an election
by a home rule charter city from 0.03 percent of taxable
market value to estimated market value. Effective
May 24, 2013.
• Certain contracts; statutory cities. Section 65
amends Minn. Stat. § 412.221, subd. 2 to convert the
threshold that subjects conditional sale contracts and
contracts for deed purchases by statutory cities to reverse
referendum authority from 0.24177 percent of taxable
market value to the same percentage of estimated market
value. Effective May 24, 2013.
• Certificates of indebtedness; statutory cities. Section
66 amends Minn. Stat. § 412.301 to convert the threshold
that subjects statutory cities’ issuance of certificates of
indebtedness to reverse referendum authority from 0.25
percent of taxable market value to the same percentage of
estimated market value. Effective May 24, 2013.
• Special service districts; property subject to
charges. Section 67 amends Minn. Stat. § 428A.02,
subd. 1 to modify the test to determine whether a splituse
property in a special service district is subject in full
or proportionately to the charges or levies from 50 percent
of taxable market value to the same percentage of
estimated market value. Effective May 24, 2013.
• Campground levy. Section 70 amends Minn. Stat. §
450.19 to convert the authorized levy for operation and
maintenance of a city or town tourist camping grounds
from 0.0806 percent of taxable market value to the
same percentage of estimated market value. Effective May
24, 2013.
• St. Cloud Transit Commission levy. Section 72
amends Minn. Stat. § 458A.10 to convert the limits on
the St. Cloud Transit Commission property tax levy
from 0.12089 percent of taxable market value to the
same percentage of estimated market value. Effective May
24, 2013.
• Duluth Transit Commission levy. Section 73 amends
Minn. Stat. § 458A.31, subd. 1 to convert the limits on
the Duluth Transit Commission property tax levy from
0.07253 percent of taxable market value to the same percentage
of estimated market value. Effective May 24, 2013.
• Cities; acceptance of conditional gifts. Section 74
amends Minn. Stat. § 465.04, the qualifying rule allowing
cities of the second, third, and fourth class cities to
accept gifts with conditions (such as life annuity gifts
with interest not to exceed 5 percent). The $41 million
cap is now measured by estimated, not taxable, market
value. Effective May 24, 2013.
• Housing and Redevelopment Authority (HRA)
levy limit. Section 75 amends Minn. Stat. § 469.033,
subd. 6 to convert the levy limit for housing and redevelopment
authorities from 0.0185 percent of taxable
market value to the same percentage of estimated market
value. Effective May 24, 2013.
• Housing and Redevelopment Authority (HRA)
debt limit. Section 76 amends Minn. Stat. § 469.034,
subd. 2 to convert limit on the issuance of general obligation
HRA bonds from 0.5 percent of taxable market
value to the same percentage of estimated market value.
Effective May 24, 2013.
• Port authority; mandatory city levy limit. Section
77 amends Minn. Stat. § 469.053, subd. 4 to convert the
levy limit for the mandatory port authority levy (i.e.,
the levy the city must levy on behalf of the port authority)
from 0.01813 percent of taxable market value to the
same percentage of estimated market value. Effective May
24, 2013.
• Seaway Port Authority levy limit. Section 78 amends
Minn. Stat. § 469.053, subd. 4a to convert the maximum
basic levy of the Seaway Port Authority from 0.01813
percent of taxable market value to the same percentage of
estimated market value. Effective May 24, 2013.
• Port authority; discretionary city levy limit. Section
79 amends Minn. Stat. § 469.053, subd. 6 to convert
the limit for the discretionary port authority levy (i.e.,
the levy the city may levy on behalf of the port authority)
from 0.00282 percent of taxable market value to the
same percentage of estimated market value. Effective May
24, 2013.
2013 Law Summaries Page 65

• Economic Development Authority (EDA) levy
limit. Section 80 amends Minn. Stat. § 469.107, subd.
1 to convert the EDA city levy from 0.01813 percent of
taxable market value to the same percentage of estimated
market value. Effective May 24, 2013.
• First-class city publicity levy limit. Section 82
amends Minn. Stat § 469.187 to convert the authorized
first-class city publicity levy from 0.0008 percent of taxable
market value to the same percentage of estimated
market value. Effective May 24, 2013.
• Hazardous property penalty. Section 83 amends
Minn. Stat. § 469.206 to convert the limit on the penalty
a city may assess on hazardous properties from 1 percent
of taxable market value to the same percentage of estimated
market value. Effective May 24, 2013.
• Joint maintenance of cemeteries. Section 84 amends
Minn. Stat. § 471.24 to modify the law allowing contiguous
towns and statutory cities to jointly maintain public
cemeteries, if each has a minimum market value of $2
million. The minimum market value requirement is now
based on estimated market value. Effective May 24, 2013.
• Taconite cities improvement fund. Section 85 amends
Minn. Stat. § 471.571, subd 1 to modify the $2.5 million
valuation threshold basis that permits a city with real and
personal property consisting in part of iron ore or lands
containing taconite or semi-taconite to establish a permanent
improvement fund to being based on estimated,
rather than taxable, market value. Effective May 24, 2013.
• Taconite cities improvement fund levy limit. Section
86 amends Minn. Stat. § 471.571, subd. 2 to convert
calculation of the levy limits for the permanent improvement
fund for taconite cities from 0.08059 percent of
taxable market value to the same percentage of estimated
market value. Effective May 24, 2013.
• Metro area fiscal disparities; adjusted market
value. Section 94 amends Minn. Stat. § 473F.02, subd.
12 to define “adjusted market value” for the purposes of
the metropolitan area fiscal disparities law to be taxable
market value, adjusted by the assessment sales ratio. This
change confirms existing practice, which is contrary to
the statute’s use of estimated market value. Effective May
24, 2013.
• Metro area fiscal disparities; fiscal capacity. Section
95 amends Minn. Stat. § 473F.02, subd. 14 to clarify that
fiscal capacity under the metropolitan area fiscal disparities
law is based on adjusted market value. Effective May
24, 2013.
• Metro area fiscal disparities; average fiscal capacity.
Section 96 amends Minn. Stat. § 473F.02, subdivision
15 to clarify that average fiscal capacity under the metropolitan
area fiscal disparities law is based on adjusted
market value. Effective May 24, 2013.
• Metro area fiscal disparities; net tax capacity. Section
97 amends Minn. Stat. § 473F.02, subdivision 23 to
clarify that net tax capacity under the metropolitan area
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fiscal disparities law is based on taxable market value.
Effective May 24, 2013.
• Metro area fiscal disparities; adjustment of values.
Section 98 amends Minn. Stat. § 473F.08, subdivision 10
to eliminate the mandate that limits on levies, aid, taxes,
debt, or salary based on values be adjusted to reflect the
effect of the fiscal disparities law. Most of these limits
will be based on estimated market value, which does not
reflect the effects of fiscal disparities. The section also
clarifies computation of fiscal capacity that are used to
compute distributions to be consistent with administrative
practices. Effective May 24, 2013.
• City CIP bonds. Section 99 amends Minn. Stat. §
475.521, subd. 4 to convert the limit that applies under
the city capital improvement program (CIP) bond law
from 0.16 percent of taxable to estimated market value.
Effective May 24, 2013.
• General net debt limit. Section 100 amends Minn.
Stat. § 475.53, subd. 1 to convert the general net debt
limit that applies to municipalities, other than school
districts and first-class cities, from 3 percent of taxable to
estimated market value. Effective May 24, 2013.
• Net debt limit; first-class cities. Section 101 amends
Minn. Stat. § 475.53, subd. 3 to convert the net debt
limit that applies to first-class cities from 2 percent of
taxable market value to the same percentage of estimated
market value. If the city charter permits a debt limit in
excess of 2 percent, this section converts the maximum
limit of 3-2/3 percent of taxable to estimated market
value. Effective May 24, 2013.
• Referendum exemption for refunding bonds. Section
103 amends Minn. Stat. § 475.58, subd. 2 to convert
the debt threshold that allows a city, county, town,
or school to issue refunding bonds without holding an
election from 1.62 percent of taxable to estimated market
value. Effective May 24, 2013.
• Bonds qualifying for State Board of Investment
(SBI) purchase. Section 104 amends Minn. Stat.§
475.73, subd. 1 to convert the maximum limit on Minnesota
municipal bond purchases by SBI from 3.63 percent
of the taxable market value of the issuer to the same percentage
of estimated market value. Effective May 24, 2013.
• Definition of estimated market value. Section 109
adds a subdivision to Minn. Stat. § 645.44. subd. 20, that
adds a definition of “estimated market value” to the general
definition section of the statutes. This definition cross
references the amended definitions in Section 25 and
applies for purposes of levy, tax, spending, and debt limits
and calculation of aid payments. Effective May 24, 2013.
Unless otherwise provided, the sections of this article are effective
May 24, 2014, for purposes of limits on net debt, the issuance of
bonds, certificates of indebtedness, and capital notes and is effective
beginning for taxes payable in 2014 for all other purposes.
League of Minnesota Cities

Article 16: Sales and use and special taxes
• Sales and use tax accelerated remittance repeal.
Section 2 amends Minn. Stat. § 289A.20, subd. 4 to
eliminate the accelerated remittance schedules for
vendors with annual sales tax collections of at least
$120,000 for all months except for June collections.
These early remittance requirements for larger vendors
became inactive after the full statutory amounts for the
budget reserve and cash flow accounts were restored in
the February 2012 economic forecast.
Effective May 24, 2013.
Article 17: Property and minerals provisions
• Prohibited activity: assessor’s duties. Section 3
amends Minn. Stat. § 270.41, subd. 5 to modify the list
of nontax property appraisals that assessors may perform
within their jurisdictions, so that county assessors are
allowed to do appraisals related to land exchanges. Effective
May 24, 2013.
• Exempt property used by private entity. Section
5 amends Minn. Stat. § 272.01, subd. 2 to clarify that
taxes on the use of federal real property are assessed as a
personal property tax against the user and applies to real
property leased, loaned or otherwise made available to a
user. This change is consistent with the treatment of state
and political subdivision-owned property. Effective May
24, 2013.
• Definition of person for property taxes. Section
7 amends Minn. Stat. § 272.03, subd. 9 to clarify that
for property tax purposes, the term “person” includes
an individual, association, estate, trust, partnership, firm,
company, or corporation. Effective May 24, 2013.
• Tax status of leased, tax-exempt property owned
by political subdivisions. Section 10 amends Minn.
Stat. § 273.19, subd. 1 to clarify that tax-exempt property
owned by a political subdivision and held under
a lease for a term of at least one year, and not taxable
under section 272.01, subdivision 2, or under a contract
for the purchase thereof, shall be considered for all purposes
of taxation as the property of the person holding
it. This change makes the treatment of leased property
owned by local units of government consistent with
the treatment of leased property owned by the federal
government, the state of Minnesota and school districts.
Effective May 24, 2013.
• Definition of rural area; electrical cooperatives
per capita tax. Section 12 amends Minn. Stat.§ 273.39
to change the definition of rural area to refer to “statutory
cities” and “home rule charter cities.” This technical
change is necessary because the current statute refers
only to “incorporated city,” a designation that no longer
exists. Effective May 24, 2013.
• Repealer. Section 18 repeals obsolete statutory provisions
including Minn. Stat. § 273.11, subd 1a, the expired
limited market value statute, and Minn. Stat. § 273.11,
subd 22, the expired market value exclusion for property
treated for lead paint removal. Effective May 24, 2013.
(GC)
TELECOMMUNICATIONS
Broadband provisions included in omnibus jobs,
economic development, housing, commerce, and
energy law
Chapter 85 (HF 729*/SF 1057) is the omnibus jobs, economic
development, housing, commerce, and energy bill.
The bill includes a provision establishing the Office of
Broadband Development under the jurisdiction of the
Department of Employment and Economic Development
(DEED). The bill also creates a fiber collaboration database
to coordinate state broadband infrastructure and requires
the broadband development office to produce a statewide
broadband strategy report. The provisions related to broadband
in the omnibus bill are summarized below:
• Appropriation. Article 1, Section 3, subd. 2(o) appropriates
$250,000 each year in FY2014-15 from the
general fund for the Broadband Development Office.
Effective July 1, 2013.
• Office of Broadband Development established.
Article 3, Section 13 adds a new statute, Minn. Stat. §
116J.998, which creates an office of broadband development
within DEED to encourage, foster, develop, and
improve broadband within the state in order to meet
statewide broadband goals established in Minn. Stat. §
237.012. The director of the office will be a gubernatorial
appointee. Section 13 also spells out the duties of the
office, Duties of interest to cities include:
• Coordinate with state, regional, local, and private entities
to develop, to the maximum extent practicable, a
uniform statewide broadband access and usage policy;
• Provide consultation services to local units of government
or other project sponsors in connection with the
planning, acquisition, improvement, construction, or
development of any broadband deployment project;
• Encourage public-private partnerships to increase
deployment and adoption of broadband services and
applications, including recommending funding options
and possible incentives to encourage investment in
broadband expansion;
• Serve as an information clearinghouse for federal
programs providing financial assistance to institutions
located in rural areas seeking to obtain access to highspeed
broadband service, and use this information as
an outreach tool to make institutions located in rural
areas that are unserved or underserved with respect
to broadband service aware of the existence of federal
assistance;
• Provide logistical and administrative support for the
Governor’s Broadband Task Force; and,
2013 Law Summaries Page 67

• Coordinate an ongoing collaborative effort of stakeholders
to evaluate and address security, vulnerability,
and redundancy issues in order to ensure the reliability
of broadband networks.
• Coordination of broadband infrastructure development.
Article 3, Section 14 adds a new statute, Minn.
Stat. § 116J.999, directing the Office of Broadband
Development to coordinate, with the Department of
Transportation, “dig once” efforts to facilitate the costeffective
deployment of broadband infrastructure. To the
extent practicable, the office shall encourage and assist
local units of government to adopt and implement “dig
once” for construction or other improvements to county
state-aid highways, municipal state-aid roads, and any
other rights-of-way under the local unit of government’s
jurisdiction, and to other lands or buildings owned by
the local unit of government.
• Fiber collaboration database. Article 3, Section 18
adds a new statute, Minn. Stat. § 161.462, requiring
MnDOT to post upcoming construction projects on
the department’s Web site so broadband providers can
coordinate the installation of infrastructure with highway
projects.
• State broadband strategy; report. Article 3, Section
26, (see also, Article 3, section 13, subd. 5 and section
14, subd. 3 of the omnibus bill) requires the broadband
development office to produce a state broadband strategy
report. The report shall include research and recommendations
to improve and promote expansion and efficient
use of broadband throughout the state. The report is due
to the Legislature by Jan. 15, 2014.
Effective May 24, 2013, unless otherwise noted. (LZ)
Page 68
TRANSPORTATION
I-35W bridge remnant steel disposition provided for
Chapter 93 (HF 1451*/SF 1305) creates Minn. Stat. §
3.7396. It allows the commissioner of the Minnesota
Department of Transportation to distribute the remnant
steel from the I-35W bridge collapse once the special
claims process and any litigation is completed to the Minnesota
Historical Society, survivors of the collapse, federal
and state agencies responsible for transportation, colleges
and universities in the field of engineering, or other persons
or institutions directly impacted by the bridge collapse.
The commissioner must complete the process of distributing
pieces of remnant steel within a period of six months
from the effective date. After that time, the commissioner
must dispose of the remaining steel as surplus property to be
melted down and recycled. The first $22,000 of the proceeds
from the disposal of the remaining steel will be deposited in
the trunk highway fund, and any additional proceeds will be
deposited in the general fund. Effective May 25, 2013. (AF)
Omnibus transportation finance act
Chapter 117 (HF 1444*/SF 1173) is the 2013 omnibus
transportation and public safety finance act. The chapter
spends $2.394 billion in FY 2014 and $2.346 in FY
2015. It sets the budget for the Minnesota Department
of Transportation (MnDOT) and part of the Minnesota
Department of Public Safety (DPS), as well as funding
for the Metropolitan Council, for the upcoming biennium.
It makes various changes in base appropriation levels
largely reflecting the governor’s budget proposal, including
increased appropriations for state roads, Driver and Vehicle
Services, and capitol security. It authorizes $300 million in
trunk highway bonds, available in fiscal year 2015, for the
Corridors of Commerce program being established. Summarized
below are transportation provisions that may be of
interest to cities. (Note: Public safety provisions in Chapter
117 are summarized in the Public Safety section of the
2013 Law Summaries.)
Article 1. Appropriations for FY 2014 and 2015
Article 1 provides a summary of all appropriations by fund.
• Airport development and assistance funded.
$13.648 million in 2014 and $13.648 million in 2015 is
for airport development and assistance. This appropriation
is from the State Airports Fund and must be spent
according to Minn. Stat. § 360.305, subd. 4. This amount
represent an approximately $1 million reduction from
the previous biennium. The base appropriation for fiscal
years 2016 and 2017 is $14.298 million for each year.
Effective July 1, 2013.
• Aviation support and services funded. $6.386 million
in 2014 and $6.386 million in 2015 is for aviation
support and services. This amount represents an approximately
$200,000 increase over the previous biennium.
Effective July 1, 2013.
• Greater Minnesota Transit appropriation provided.
$17.226 million in 2014 and $17.245 in 2015 is
for Greater Minnesota Transit. This amount represents
an approximately $3 million increase over the previous
biennium. $100,000 in each year is from the general
fund for the administrative expenses of the Minnesota
Council on Transportation Access under Minn. Stat. §
174.285. $78,000 in each year is from the general fund
for grants to Greater Minnesota transit providers as
reimbursement for the costs of providing fixed route
public transit rides free of charge under Minn. Stat. §
174.24, subd. 7, for veterans certified as disabled. Effective
July 1, 2013.
• Passenger rail funded. $500,000 in each year of the
biennium is provided from the general fund for passenger
rail system planning, alternatives analysis, environmental
analysis, design, and preliminary engineering
under Minn. Stat. § 174.632 to 174.636. This is the same
amount appropriated for this purpose in the previous
biennium. Effective July 1, 2013.
League of Minnesota Cities

• Freight appropriation provided. $5.653 in 2014 and
$5.153 in 2015 is provided for freight purposes. This
amount is approximately $500,000 more than was appropriated
in the previous biennium. Effective July 1, 2013.
• Safe routes to school activities funded. $250,000 in
each year of the biennium is from the general fund for
non-infrastructure activities in the safe routes to school
program under Minn. Stat. § 174.40, subd. 7a. Effective
July 1, 2013.
• State roads operations and maintenance funded.
$262.395 in each year of the biennium is for operations
and maintenance of state roads. This amount is almost
$300 million less than was provided in the previous
biennium. Effective July 1, 2013.
• State roads program planning and delivery
funded. $206.795 million in 2014 and $206.720 million
in 2015 is for program planning and delivery. This
amount is approximately the same as what was appropriated
in the previous biennium. Effective July 1, 2013.
• Joint Program Office for Economic Development
and Alternative Finance created. $250,000 in
each year of the biennium is appropriated for MnDOT’s
administrative costs for creation and operation of the
Joint Program Office for Economic Development and
Alternative Finance, including costs of hiring a consultant
and preparing required reports. Effective July 1, 2013.
• Targeted group business program funded. $130,000
in each year is available for administrative costs of the targeted
group business program. Effective July 1, 2013.
• Planning grants provided. $266,000 in each year is
available for grants to metropolitan planning organizations
outside the seven-county metropolitan area. Effective
July 1, 2013.
• Research contingent account funds provided.
$75,000 in each year is available for a transportation
research contingent account to finance research projects
that are reimbursable from the federal government or
from other sources. for the other year is available for it.
Effective July 1, 2013.
• Transportation study grant funds provided.
$900,000 in each year is available for grants for transportation
studies outside the metropolitan area to identify
critical concerns, problems, and issues. These grants are
available: (1) to regional development commissions; (2)
in regions where no regional development commission
is functioning, to joint powers boards established under
agreement of two or more political subdivisions in the
region to exercise the planning functions of a regional
development commission; and (3) in regions where no
regional development commission or joint powers board
is functioning, to the department’s district office for that
region. Effective July 1, 2013.
• WorkPlace Telework program funded. $75,000 in
the first year is from the Highway User Tax Distribution
Fund for a grant to the Humphrey School of Public
Affairs at the University of Minnesota for WorkPlace
Telework program congestion relief efforts consisting of
maintenance of website tools and content. Effective July
1, 2013.
• Economic recovery completion funds provided.
$1 million in each year of the biennium is to complete
projects using funds made available to the MnDOT
under title XII of the American Recovery and Reinvestment
Act of 2009, Public Law 111-5, and implemented
under Minn. Stat. § 161.36, subd. 7. The base appropriation
is $1 million in fiscal year 2016 and $0 in fiscal year
2017. Effective July 1, 2013.
• State road construction funded. $909.4 million in
2014 and $815.6 million in 2015 are for state road construction.
This amount is approximately $300 more than
was appropriated in the previous biennium. $489.2 million
in 2014 and $482.2 million in 2015 are from the
Federal Highway Administration. $420.2 million in 2014
and $333.4 million in 2015 are from highway user taxes.
Effective July 1, 2013.
• Transportation Economic Development program
funded. $10 million in each year is for the Transportation
Economic Development (TED) program under
Minn. Stat. § 174.12. The commissioner of MnDOT
may expend up to one-half of 1 percent of the federal
appropriations under this clause as grants to opportunity
industrialization centers and other nonprofit job training
centers for job training programs related to highway
construction. Effective July 1, 2013.
• Transportation Revolving Loan Fund transfers
authorized. The commissioner of MnDOT may transfer
up to $15 million each year to the Transportation
Revolving Loan Fund. The commissioner may receive
money covering other shares of the cost of partnership
projects. Effective July 1, 2013.
• Highway debt service provided. $158.417 million
in 2014 and $189.821 million in 2015 is for debt service
on trunk highway bonds. Effective July 1, 2013.
• Electronic communications funded. $5.171 million
in each year of the biennium is for electronic communications.
Of this amount, $3,000 in each year is from
the general fund appropriation to equip and operate the
Roosevelt signal tower for Lake of the Woods weather
broadcasting. The remainder is from the Trunk Highway
Fund. Effective July 1, 2013.
• County state-aid roads funded. $594.883 million in
2014 and $607.505 million in 2015 is from the County
State-Aid Highway fund under Minn. Stat. § 161.082 to
161.085, and Chapter 162. Effective July 1, 2013.
• Municipal state-aid roads funded. $152.219 million
in 2014 and $155.060 million in 2015 is from the
Municipal State-Aid Street Fund for the purposes under
Minn. Stat. Chapter 162. Effective July 1, 2013.
• Flexible Highway Account transfers required. The
commissioner of MnDOT must transfer from the Flexi-
2013 Law Summaries Page 69

le Highway Account in the County State-Aid Highway
Fund: (1) $5.7 million in the first year to the trunk highway
fund; (2) $13 million in the first year to the Municipal
Turnback Account in the Municipal State-Aid Street
Fund; (3) $10 million in the second year to the Municipal
Turnback Account in the Municipal State-Aid Street
Fund; and (4) the remainder in each year to the County
Turnback Account in the County State-Aid Highway
Fund. The funds transferred are for highway turnback
purposes as provided under Minn. Stat. § 161.081, subd.
3. Effective July 1, 2013.
• Metropolitan Council transit operations funded.
$107.889 million in 2014 and $76.97 million in 2015
is appropriated from the general fund for transit system
operations under Minn. Stat. § 473.371 to 473.449.
The base appropriation for fiscal years 2016 and 2017
is $76,686 million in each year. $37,000,000 in the first
year is for the Southwest Corridor light rail transit line
from the Hiawatha light rail transit line in downtown
Minneapolis to Eden Prairie, to be used for environmental
studies, preliminary engineering, acquisition of real
property or interests in real property, and design. Effective
July 1, 2013.
• Trunk highway bond reauthorization provided.
$1.4146 million of the amount appropriated in Laws
2008, chapter 152, article 2, section 6, for trunk highway
bond sale expenses, which was reported to the
Legislature according to Minn. Stat. § 16A.642, subd.
1, is reauthorized and does not cancel under the terms
of that subdivision. This appropriation for the bond sale
expenses and the bond sale authorization in Laws 2008,
chapter 152, article 2, section 7, subd. 1, as amended, are
available until Dec. 31, 2019. Effective May 24, 2013.
Article 2. Corridors of Commerce bonding provided
Article 2 contains authorization and appropriation of
$300 million in trunk highway bonds for the Corridors of
Commerce program (being established in article 3, section
1). The appropriation in this section is for the construction,
reconstruction, and improvement of trunk highways,
including design-build contracts and consultant usage to
support these activities. This includes the cost of payments
to landowners for lands acquired for highway rights-ofway,
payments to lessees, interest subsidies, and relocation
expenses. The commissioner may use up to 17 percent for
program delivery. Effective July 1, 2014.
Article 3. Funding policy provisions
Article 3 contains policy provisions related to transportation
and public safety funding. (Note: The public safety
provisions can be found in the Public Safety section of the
2013 Law Summaries.) Following are transportation provisions
that may be of interest to cities.
• Corridors of Commerce Program created. Section
1 establishes Minn. Stat. § 161.088, the Corridors of
Page 70
Commerce Program. It creates classifications for candidate
trunk highway projects, consisting of capacity development
projects that add additional capacity to the trunk
highway system and freight improvements. It establishes
basic requirements for whether a project is eligible to
be included in the program, including consistency with
transportation plans, location on an interregional corridor
(for projects outside the Twin Cities metropolitan
area), fit in one of the project classifications, a time
limit for when the project would be ready to start, and a
maximum project cost. It requires MnDOT to establish
a selection process and criteria for evaluation of projects
as well as a cost participation policy for local units
of government. It provides for stakeholder recommendations
on candidate projects. It specifies some criteria that
must be included in determining which projects to fund
through the program, including return on investment,
measures of commerce impacts, efficiency of freight
movement, safety improvements, and project support. It
provides for accounting for future operating costs resulting
from a project funded under the program. It requires
an annual report to the Legislature starting in November
2014 on the program, as well as an independent program
evaluation every other year starting in 2016. Effective May
24, 2013; however, per Article 2, funds will not be available
until July 1, 2014.
• Center for Transportation Policy funding
increased. Section 3 amends Minn. Stat. § 161.53 by
increasing the cap from $1.2 million to $2 million on
how much funding MnDOT can provide to the Center
for Transportation Studies at the University of Minnesota
for transportation research. Requires research to
be undertaken on transportation policy and economic
competitiveness, which is due by June 30, 2018. Effective
July 1, 2013.
• County wheelage tax expansion provided. Section
4 amends Minn. Stat. § 163.051. It broadens the authority
for counties to impose an annual wheelage tax, to: 1)
provide the authority to all counties, expanded from the
current restriction to the seven-county Twin Cities metropolitan
area; and 2) set the tax rate at $10 (increased
from $5) to be imposed until Jan. 1, 2018, after which a
tax of up $20 can be imposed. Effective May 24, 2013 and
applies to a registration period under Minn. Stat. Chapter 168,
starting on or after Jan. 1, 2014.
• “High-value vehicle” definition amended. Section
5 amends Minn. Stat. § 168A.01, subd. 6a. It amends
the definition of “high-value vehicle” in the chapter on
motor vehicle titles, to raise the minimum value of a
vehicle prior to being damaged in a crash, from $5,000
to $9,000, in order to be considered high-value. This has
the effect of reducing the collection of vehicles considered
high-value. High-value vehicles are subject to
provisions under section 168A.151 that (1) require an
insurance company to obtain a salvage title on the vehi-
League of Minnesota Cities

cle if it was acquired as a result of paying an insurance
claim, and (2) require a salvage title on some damaged
vehicle scenarios involving an out-of-state title. Effective
July 1, 2013.
• Vehicle title fees increased. Section 6 amends Minn.
Stat. § 168A.29, subd. 1. Modifies fees for motor vehicle
titling transactions starting in January 2017, to: 1)
raise the fee for new vehicle titles by $2 (going from
$6.25 to $8.25, with no changes made to a $1 technology
surcharge and an additional $3.50 that goes into a
public safety vehicle account), with $0.90 of the increase
going to an account that funds Driver and Vehicle Services
(DVS) operations, and the other $1.10 going to the
general fund; and 2) eliminate a $5.50 title transfer fee,
which is currently distributed $2.50 to a DVS operating
account and $3 to the general fund. Effective July 1, 2013.
• Driver’s license renewal fee increased. Section 11
amends Minn. Stat. §171.061, subd. 4. It increases, from
$5 to $8, the filing fee charged for a new or renewal
driver’s licenses and Minnesota identification cards. The
same fee amount is imposed by agents authorized by
Driver and Vehicle Services (DVS) to administer driver
licensing offices, and by DVS at its locations. (Filing fees
collected by agents are retained by them, and fees collected
by DVS are deposited in an operating account in
the special revenue fund for DVS program administration.)
Effective Jan. 1, 2014.
• Transportation Economic Development Program
codified. Section 19 creates Minn. Stat. § 174.12. It
codifies authorization and requirements governing the
Transportation Economic Development (TED) Program,
a joint MnDOT/Department of Employment
and Economic Development (DEED) program for road
construction related to economic development. It directs
MnDOT and DEED to jointly establish a program for
funding transportation projects that have economic
development impacts. It establishes accounts for the
program in the Special Revenue Fund and the Trunk
Highway Fund. It directs MnDOT and DEED to make
public solicitations for projects and provide information
and technical resources to potential applicants. It requires
DEED to develop performance measures on economic
impacts to use in evaluating projects for inclusion in the
program. It specifies core criteria that must be included
in evaluating projects for inclusion in the program. It
specifies that project selection must be based on the
criteria established, and directs certifications by both
MnDOT and DEED regarding project eligibility. It limits
funds from the program to 70 percent of project costs.
It requires geographic balance throughout the state with
respect to both numbers of projects and funding levels.
Finally, it mandates a legislative report, due Feb. 1 of
every other year starting in 2015. Effective July 1, 2013.
• Solar installations made in Minnesota requirement
provided. Section 20 creates Minn. Stat. § 174.187.
It requires MnDOT to use solar photovoltaic modules
that are manufactured in Minnesota if such modules are
included in a MnDOT construction project. It prevents
the provision from applying if receipt of federal funds
requires a conflicting procurement method, or if no
modules are available that fulfill the required function.
• Safe Routes to School expenditure authorized.
Section 21 adds a subdivision to Minn. Stat. § 174.40. It
establishes allowable uses of non-bond proceeds funds in
the Safe Routes to School program, to include planning,
education, traffic enforcement, and financial assistance
activities. Effective July 1, 2013.
• Bicycle and pedestrian trail categories required.
Section 22 creates Minn. Stat. § 174.42. It requires
MnDOT to obtain the same or a greater level of funding
for certain bicycle and pedestrian trail project categories
in each year compared to the average funding over the
previous four years. Effective July 1, 2013.
• Grade Crossing Safety Account discretion provided.
Section 23 amends Minn. Stat. § 219.1651. It
gives MnDOT discretion in whether to cancel remaining
funds in the grade crossing safety account at the end
of each biennium. Effective July 1, 2013.
• Motor vehicle lease tax revenue dedication provided.
Section 24 amends Minn. Stat. § 297A.815, subd.
3. It amends the allocation of revenue from the sales tax
on leased motor vehicles, so that for 2014 and 2015 only,
$9 million is allocated to Twin Cities metropolitan-area
counties (except for Hennepin and Ramsey) for county
roads and the remainder is provided to Greater Minnesota
transit. Starting in 2016, the allocation reverts to the
previous formula of 50 percent to certain county roads
and 50 percent to Greater Minnesota transit. Effective Jan.
1, 2014.
• County sales tax for transportation authority
provided. Section 25 amends Minn. Stat. § 297A.993,
subd. 1. It eliminates a referendum requirement for a
county to impose a local option transportation sales tax
in Greater Minnesota, which may instead be imposed by
resolution following a hearing. Effective May 24, 2013.
• Use of sales tax proceeds clarified. Section 26
amends Minn. Stat. § 297A.993, subd. 2. It clarifies eligible
uses of proceeds from a local option transportation
sales tax in Greater Minnesota, to specifically include
funding transit capital and ongoing operations as well
as projects in the safe routes to school program. Effective
May 24, 2013.
• Collector vehicle fee increased. Section 29 amends
Minn. Stat. § 297B.02, subd. 3. It raises the flat fee from
$90 to $150 imposed on sales of collector vehicles—
including collector fire trucks—which applies instead of
the motor vehicle sales tax. Effective July 1, 2013.
• Metropolitan Council bonding authority increased.
Section 34 adds a subdivision to Minn. Stat. § 473.39.
It increases by $35.8 million the Metropolitan Coun-
2013 Law Summaries Page 71

cil’s authority to issue debt obligations to fund its capital
improvement plan for transit and paratransit. Proceeds may
also be used to pay issuance costs (subject to the limit).
Effective May 24 and applies in the counties of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and Washington.
• Appropriation authority extended. Section 36
amends Laws 2009, chapter 9, section 1 by extending
from 2013 to 2016 appropriations authority for
MnDOT from federal aid received under the American
Economic Recovery and Reinvestment Act of 2009
(ARRA). Effective May 24, 2013.
• Novice driver education improvement task force
created. Section 37 is a 2013 Session Law. It creates a
task force to compare Minnesota novice driver education
with national group standards and submit a report
to the Legislature, which is due by Aug. 31, 2015. The
task force expires on Sept. 1, 2015, or the day after the
report is submitted. Effective May 24, 2013.
• Transitway community engagement contract
authorized. Section 38 is a 2013 Session Law. It allows
the Metropolitan Council, when it is the lead authority
in a transitway project, to contract with communitybased
organizations to promote community engagement
activities along the corridor. It requires the Metropolitan
Council to report activities related to this provision to
the chairs of the House and Senate transportation committees.
Effective July 1, 2013.
• Transportation infrastructure hiring and recruitment
practices encouraged. Section 38 is a 2013
Session Law. It encourages the lead transportation authority
in a transportation project to make efforts to employ
women and minorities and contract with targeted group
businesses owned by women and minorities. It also
encourages MnDOT to increase participation in highway
projects of small businesses located in economically disadvantaged
areas of the state. Effective July 1, 2013.
• Financial assistance for Northstar Commuter
Rail provided. Section 40 is a 2013 Session Law. It
exempts the Greater Minnesota transit component of
the costs of Northstar Commuter Rail from a requirement
that financial assistance be provided only to
recipients outside the Twin Cities metropolitan area.
Effective July 1, 2013.
(AF)
Special freight distribution authorized for west central
Minnesota
Chapter 140 (HF 316*/SF 300) creates Minn. Stat. §
169.868. It allows annual permits for truck weights above
the restricted amount in Minnesota Department of Transportation
(MnDOT) District 4 to haul freight to or from
a distribution facility that is constructed on or after July 1,
2013. MnDOT District 4 serves Becker, Big Stone, Clay,
Douglas, Grant, Mahnomen, Otter Tail, Pope, Stevens,
Swift, Traverse, and Wilkin counties.
Page 72
• Six-axle vehicles weight limit increase allowed
by permit. Subdivision 1 allows a road authority to
issue an annual permit for a vehicle or combination of
vehicles with a combination of six or more axles to haul
freight and to be operated with a gross vehicle weight
up to: (1) 90,000 pounds; and (2) 99,000 pounds during
the period set by the commissioner of MnDOT under
Minn. Stat. § 169.826, subd. 1. The fee for a permit
issued under this subdivision is $300.
• Seven-axle vehicles weight limit increased by permit.
Subdivision 2 allows a road authority to issue an
annual permit for a vehicle or combination of vehicles
with a combination of seven or more axles to haul
freight and to be operated with a gross vehicle weight
up to: (1) 97,000 pounds; and (2) 99,000 pounds during
the period set by the commissioner of MnDOT under
Minn. Stat. § 169.826, subd 1. The fee for a permit issued
under this subdivision is $500.
• Restrictions provided. Subdivision 3 provides that
vehicles issued permits under this section must comply
with all requirements and restrictions in Minn. Stat. §
169.865, subd. 3. A vehicle may be operated under a permit
issued under this section only to haul freight to or
from a distribution facility that is: (1) constructed on or
after July 1, 2013; and (2) located within the Department
of Transportation District 4.
• Deposit of revenues provided. Subdivision 4 provides
that revenue from the permits issued by MnDOT
under this section must be deposited in the bridge
inspection and signing account as provided under Minn.
Stat. § 169.86, subd 5b.
Effective May 25, 2013. (AF)
Omnibus transportation policy act
Chapter 127 (HF 1416/SF 1270*) is the omnibus transportation
policy act. Summarized below are provisions that
may be of interest to cities.
• Snow removal authority in uncompleted subdivisions
sunset extended. Section 1 amends Minn. Stat.
§ 160.21, subd. 6. It extends, by one year (until May 2,
2014), authority for MnDOT and local units of government
to perform snow removal on roads in certain
uncompleted subdivisions that are not being maintained
by the developer. Effective Aug. 1, 2013.
• Signage authorization expanded. Section 2 amends
Minn. Stat. § 160.80, subd. 1 by expanding eligible types
of businesses to include “attractions” under MnDOT’s
logo sign program for advertising along interstates and
controlled access trunk highways. Effective Aug. 1, 2013.
• Requirements for businesses in logo sign program
modified. Section 3 amends Minn. Stat. § 160.80, subd.
1a. It makes various changes in the requirements for
businesses that advertise in the logo sign program. It sets
requirements for attractions that are authorized to advertise
under section 2 of the bill. Effective Aug. 1, 2013.
League of Minnesota Cities

• Trunk highway emergency relief account. Section
5 amends Minn. Stat. § 161.04, subd. 5. It allows funds
in the trunk highway emergency relief account to be
expended for operations and maintenance related to a
disaster. It removes a requirement that account interest
be credited to the account. Effective Aug. 1, 2013.
• Special account funds usage expanded. Section 9
amends Minn. Stat. § 161.1231, subd. 8. It expands the
permissible uses of funds from an account for parking
ramps owned by MnDOT at the terminus of I-394 in
Minneapolis. Uses would expand to include work on
MnPASS lanes and associated technology improvements
for users of the ramps. Effective Aug. 1, 2013.
• MnDOT encouraged to examine property. Section
9 adds a subdivision to Minn. Stat. § 161.44. It
encourages the commissioner of MnDOT to examine
all real property owned by the state and under the
custodial control of the department to decide whether
any real property may be suitable for sale or some other
means of disposal. The commissioner may not sell or
otherwise dispose of property under this subdivision
unless: (1) an analysis has been performed of suitability
of the property for bicycle or pedestrian facilities,
which must take into account any relevant non-motorized
transportation plans or in the absence of such
plans, demographic and development factors affecting
the region; and (2) the analysis demonstrates that
(i) the property is not reasonably suitable for bicycle or
pedestrian facilities, and (ii) there is not a likelihood of
facility development involving the property. The commissioner
must report the findings under paragraph (a)
to the House of Representatives and Senate committees
with jurisdiction over transportation policy and
finance by March 1 of each odd-numbered year. Effective
Aug. 1, 2013.
• County State Aid Highway variance request process
modified. Section 10 amends Minn. Stat. § 162.02,
subd. 3a. It modifies the process for requesting variances
from engineering standards for the county state-aid
highway system, to eliminate publication of the request
in the State Register and to only require hearings only
after request denial. Effective Aug. 1, 2013.
• Municipal State Aid Street variance request process
modified. Section 11 amends Minn. Stat. § 162.09,
subd. 3a. It modifies the process for requesting variances
from engineering standards for the municipal state-aid
street system, to eliminate publication of the request in
the State Register and to only require hearings only
after request denial. Effective Aug. 1, 2013.
• Municipal State Aid money needs formula modified.
Section 12 amends Minn. Stat. § 162.13, subd. 2.
It updates the statute by amending the calculation of
money needs to eliminate exclusion of certain county
roads with a combination designation across road jurisdictions,
which is no longer used. Money needs are used
in a formula-based allocation of municipal state-aid
street funds among cities. Effective Aug. 1, 2013.
• Driving on bicycle lane to pass prohibited. Section
28 amends Minn. Stat. § 169.18, subd. 4. It prohibits
a motor vehicle from passing on the right by driving
in a bicycle lane. (Under the traffic regulations in state
statutes, a “bicycle lane” is a portion of the roadway or
shoulder that is marked for use by bicyclists. Minn. Stat.
§ 169.011, subd. 5.) Effective Aug. 1, 2013.
• Driving on bicycle lane to park authorized. Section
29 amends Minn. Stat. § 169.18, subd. 7. It clarifies
that a motor vehicle may drive in a bicycle lane when
performing parking maneuvers. Effective Aug. 1, 2013.
• Crossing into bicycle lane authorization clarified.
Section 30 amends Minn. Stat. § 169.19, subd. 1. It
modifies driving rules for making turns that cross into
an adjacent bicycle lane, so that a driver must (1) signal
prior to making the movement, (2) yield to bicycles, (3)
obey traffic control signs and markings. Effective Aug. 1,
2013.
• Bicycle passenger limits provided. Section 31
amends Minn. Stat. § 169.222, subd. 2. It modifies
requirements on bicycle passengers, including extending
limitations on number of passenger to apply to various
types of bicycles as well as trailers. Effective Aug. 1, 2013.
• Riding bicycle at right-hand curb exception provided.
Section 32 amends Minn. Stat. § 169.222, subd.
4. It eliminates a requirement of riding a bicycle at the
right-hand curb or edge of the road, if riding in a shoulder
or a bicycle lane. Effective Aug. 1, 2013.
• Bicycle equipment requirements modified. Section
33 amends Minn. Stat. § 169.222, subd. 6. It modifies
bicycle equipment regulations, including expanding lighting
equipment that can be used to meet nighttime bicycle
lighting requirements, permitting coaster brakes, and
allowing a horn or bell on a bike. Effective Aug. 1, 2013.
• Stopping in bicycle lane prohibited. Section 35
amends Minn. Stat. § 169.34, subd 1. It prohibits stopping,
standing, or parking in a bicycle lane, unless parking
is authorized by posted signs. Effective Aug. 1, 2013.
• Disability parking alternative authorized. Section
36 adds a subdivision to Minn. Stat. § 169.346. It provides
that, in the event the designated disability parking
spaces are either occupied or unavailable, a vehicle
bearing a valid disability parking certificate issued under
Minn. Stat. § 169.345 or license plates for physically disabled
persons under Minn. Stat. § 168.021 may park at
an angle and occupy two standard parking spaces. Effective
Aug. 1, 2013.
• Disability parking signage requirement provided.
Section 37 amends Minn. Stat. § 169.346, subd.
2. It requires, in the regulations on signage for disability
parking, that the parking signs be non-moveable, which
would no longer allow a sign that is moveable by authorized
personnel. Effective Aug. 1, 2013.
2013 Law Summaries Page 73

• School bus drivers prohibited from cell phone
usage while in traffic. Section 38 amends Minn. Stat.
§ 169.443, subd. 9. It amends a prohibition on using a
cell phone for personal reasons when operating a school
bus to include times when the vehicle is part of the flow
of traffic (such as at a stop light). Effective Aug. 1, 2013.
• Transportation ombudsperson required. Section
47 adds a subdivision to Minn. Stat. § 174.02. It creates
a position of ombudsperson in MnDOT, codified in
statute. It outlines basic powers and duties of the position,
sets reporting and appointment requirements, and
restricts the person from holding other positions within
the department as well as from charging a fee for services.
Effective Aug. 1, 2013.
• Public-private partnership program authorized.
Section 50 creates Minn. Stat. § 174.45. It authorizes
the commissioner of MnDOT to establish a joint program
office to oversee and coordinate activities to
develop, evaluate, and implement public-private partnerships
involving public infrastructure investments. At
the request of the commissioner of MnDOT, the commissioner
of Minnesota Management and Budget, the
commissioner of the Department of Employment and
Economic Development, the executive director of the
Public Facilities Authority, and other state agencies shall
cooperate with and provide assistance to the commissioner
of MnDOT for activities related to public-private
partnerships involving public infrastructure investments.
Effective Aug. 1, 2013.
• Railroad crossing warning sign requirements modified.
Section 53 amends Minn. Stat. § 219.17. It amends
the types of uniform signs that can be placed at railroad
crossings, including allowing a yield sign and modifying
terminology for sign types. Effective Aug. 1, 2013.
• Railroad sign placement modified. Section 54
amends Minn. Stat. § 219.18. It decreases the maximum
distance from a railroad crossing that crossback signs
must be placed and maintained by railroads, from 75 to
50 feet. It provides that MnDOT can authorize a greater
distance. Effective Aug. 1, 2013.
• Yield signs at railroad crossings authorized. Section
55 amends Minn. Stat. § 219.20. It clarifies when
requirements apply for placing stop signs or yield signs at
railroad crossings, to exclude crossings that are equipped
with flashing lights or with lights and gates. Effective Aug.
1, 2013.
• Bus rapid transit system development authorized.
Section 59 adds a subdivision to Minn. Stat. § 398A.04
It provides that a regional rail authority may exercise
the powers conferred under this section to: plan, establish,
acquire, develop, purchase, enlarge, extend, improve,
maintain, equip, regulate, and protect; and pay costs of
construction and operation of a bus rapid transit system
located within its county on transit ways included in and
approved by the Metropolitan Council’s 2030 Transportation
Policy Plan. This subdivision applies only to the
counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington. Effective May 25, 2013.
• Diversion pilot program sunset extended. Section
60 amends Laws 2009, chapter 59, article 3, section
4, subd. 9, as amended by Laws 2010, chapter 197, section
1, and Laws 2011, chapter 87, section 1, subd. 9. It
provides that a city or county participating in a diversion
pilot program may accept an individual for diversion
into the pilot program until June 30, 2017. The authority
had been set to expire on June 30, 2013. The section also
provides that the third party administering the diversion
program may collect and disburse fees collected pursuant
to subd. 6, paragraph (a), clause (2), through Dec. 31,
2018, at which time the pilot program under this section
expires. This authority had been set to expire in 2014.
Effective May 25, 2013.
• Pedestrian skyway connection required for Central
Station. Section 61 is a 2013 Session Law. It
requires the City of St. Paul to include construction or
establishment of access to a pedestrian skyway system as
part of the initial transit line construction of the Central
Station on the Central Corridor light rail transit line.
The council and city must ensure that public access to
the pedestrian skyway system is provided by an elevator
located at the site of the station. Effective May 25, 2013.
(AF)
UTILTIES
Energy provisions in omnibus jobs act
Chapter 85 (*HF 729/SF 1057) is the omnibus jobs, economic
development, housing, commerce, and energy bill.
It contains a number of sections changing electric utility
requirements and regulations, but they apply to investorowned
utilities and not to municipal utilities. Some sections
of interest to cities include:
• Article 8 makes fixes to the Property Assessed Clean
Energy (PACE) program that allow repayment to extend
for up to 20 years (previously limited at 10 years) and
clarifies that qualified projects must have been identified
in an energy audit as being cost-effective. Effective May
24, 2013.
• Article 10 includes new policy and requirements related
to solar energy. The new state solar power generation
goal of 10 percent by 2030 is found in section 3 and is a
statewide goal, so will include municipal electric utilities
to some extent. Effective July 1, 2013.
• Article 11 prioritizes and incentivizes solar panels made
in Minnesota in terms of meeting renewable energy and
CIP requirements for investor-owned utilities. Effective
May 24, 2013.
Page 74
League of Minnesota Cities

• Article 12 includes municipal power agencies as participants
in planning groups required under sections 1 and
4. Effective July 1, 2013.
• Article 13, Section 1 increases the allowable duration
for guaranteed savings contracts done under MN State
§16C.144, subd. 2 on state buildings to 25 years (previously
15 years) to allow for deeper retrofits and more
renewable energy options. Effective July 1, 2013.
(CJ)
2013 Law Summaries Page 75

BILLS VETOED BY THE GOVERNOR
VETOED: ENVIRONMENT
Legacy spending bill
Chapter 137 (*HF 1183/ SF 1051) allocates the money
from constitutionally-dedicated sales tax funds targeted to
environmental and cultural programs. Gov. Dayton eventu-
ally line-item vetoed two appropriations from the outdoor
heritage fund that went against the recommendations
of the Lessard-Sams Outdoor Heritage Council. The two
vetoed line items were $6.3 million to metropolitan parks
in Subd. 5(i) and $3 million for aquatic invasive species
control in Subd. 5(j). (CJ)
BILLS THAT DID NOT BECOME LAW (DNBL)
DNBL-AID TO CITIES
Governor’s proposed changes to local government
aid program
In his budget recommendations released on Jan. 22, Gov.
Dayton proposed an appropriation increase and significant
reforms to the local government aid (LGA) program for
the 2014-2015 biennium. Under the governor’s proposal,
most of the current LGA formula would have been discarded.
Each city’s need would have been computed using
an entirely new formula that includes three need factors: 1)
public safety/streets need based on population; 2) percentage
of housing built before 1970; and 3) percentage of parcels
that are tax-exempt.
The per capita dollars of need for each of the three
factors would have been added together to arrive at the
city’s total per capita need. The formula then compares
total per capita need multiplied by the city’s population
to the city’s capacity. If there is a gap between need and
capacity, the city would have received LGA. If capacity
exceeds need, the city would not have received LGA. The
formula included an initial $40 per capita increase for each
city currently receiving LGA. For many cities, that initial
increase would have been phased-down over the next four
years as the formula was implemented.
(GC)
DNBL-BONDING
House bonding bill
HF 270 (Rep. Alice Hausman, DFL-St. Paul) is the omnibus
bonding bill, which contained approximately $850
million in bonding projects. The bill failed by a vote of
76-56, failing to obtain the constitutionally required threefifths
majority for passage. The proposal contained nearly
$119 million in local government projects throughout the
state including: three regional civic centers in Mankato
($14.5 million), Rochester ($30 million), and St. Cloud
($10.8 million); the Children’s Museum in St. Paul ($14
million); $2.5 million for the Park Rapids Upper Mississippi
Center; $1.5 million for a water main improvement
in Eveleth; and $250,000 for the Grand Rapids Regional
Arts Center.
Page 76
The proposal also included $30 million for supportive
housing, $10 million for public housing rehabilitation;
$4 million for wastewater inflow & infiltration abatement
grants; $1 million to Pollution Control Agency for stormwater
ponds (coal tar abatement); $8 million for clean and
drinking water match for USEPA capitalization grants; $20
million for Wastewater Infrastructure Fund (Public Facilities
Authority); and $46.6 million for transportation projects,
including the Local Bridge Replacement Program,
Local Road Improvements (includes TCAAP and Rochester),
and Greater Minnesota Transit Assistance (St. Cloud).
(GC)
“Buy American” steel
HF 548/SF 318 (Rep. Carly Melin, DFL-Hibbing and Sen.
David Tomassoni, DFL-Chisholm) would have required
American steel products to be used for any project that
received public funds, including local or state tax revenue.
(PH)
DNBL-BUILDLING CODES
Residential sprinklers
A floor amendment to the Senate omnibus environment,
agriculture, commerce, energy, jobs and economic development
bill (SF 1607) bill would have prohibited the State
Building Code, Fire Code, or local governments from
requiring the installation of fire sprinklers in new or existing
single family homes. The prohibition was not adopted
by the conference committee and did not become law.
Gov. Dayton vetoed the same provision in 2011 and 2012.
(PH)
DNBL-DATA PRACTICES
Classification of license plate reader data
SF 385/HF 474 (Sen. Scott Dibble, DFL-Minneapolis and
Rep. Mary Liz Holberg, R-Lakeville) would have classified
license plate reader (LPR) data as private data under the
Minnesota Government Data Practices Act. Minnesota law
enforcement agencies use automated cameras to photograph
license plates and compare the plate numbers to law
enforcement databases. In addition to classifying the data
League of Minnesota Cities

BILLS THAT DID NOT BECOME LAW (DNBL)
as private, the bills set limits on how long law enforcement
agencies could retain data that did not result in a “hit” in
one of the databases. The House passed a bill requiring the
immediate destruction of non-hit data. The Senate bill,
passed by the Judiciary Committee, allowed non-hit data
to be retained for 90 days. The full Senate did not take up
the bill. (Note: LPR data is currently classified as private
data pursuant to a temporary classification issued by the
Information Policy Analysis Division of the Department
of Administration). Absent legislative action, the temporary
classification expires on Aug. 1, 2015. Law enforcement
agencies currently can retain non-hit data indefinitely.
(PH)
Unauthorized data access security policies and penalties
HF 183/SF 211 (Sen. Scott Dibble, DFL-Minneapolis and
Rep. Mary Liz Holberg, R-Lakeville) would have required
municipalities to adopt additional security policies to prevent
the unauthorized access of private data by employees,
and would subject municipalities to statutory requirements
regarding the disclosure of data breaches that currently
apply to state agencies. As introduced, it also would have
instituted a new gross misdemeanor penalty for certain
data practices violations, and would have required public
entities to post the results of investigations of unauthorized
access to data on the entity’s website. The legislation was
introduced in response to reports and lawsuits regarding
unauthorized access of private data in the driver’s license
database maintained by the Department of Public Safety.
(PH)
Creating an exception to the Open Meeting Law
for social media
HF 653/SF 527 (Rep. Duane Quam, R-Byron and Sen.
Kevin Dahle, DFL-Northfield) would have created an
exception to the Open Meeting Law for certain communications
made by elected officials on social media, such as
Facebook or Twitter. The social media forums would have
to be open to the public, and the forums used by a government
entity would have to be previously identified by the
council at a public meeting and publicly posted. Participation
could not replace any required public hearing or
meeting, and could not be the sole means of deliberation
by the public body. (PH)
DNBL-ECONOMIC DEVELOPMENT
Jobs bill extension
SF 669/ HF 706 (Sen. Ann Rest, DFL-New Hope and
Rep. Mike Nelson, DFL-Brooklyn Center) would have
reinstituted a provision in the 2010 jobs bill (Minn. Stat. §
469.176, subd. 4c) that allows economic development districts
to be used for any type of project if the municipality
finds the project will create new jobs in the state, including
construction jobs, and the project otherwise would
not have begun before Jan. 1, 2014, without the assistance.
The additional authority expired on Dec. 31, 2012. The
bill would have reinstituted for 18 months the 2010 jobs
bill provision that allows the use of surplus tax increment
financing (TIF) increments to stimulate projects where
construction commences by Jan. 1, 2014 (Minn. Stat. §
469.176, subd. 4m). The authority to spend increments
would have expired on Dec. 31, 2012. (PH)
DNBL-ELECTIONS
Early voting
HF 334/SF 535 (Rep. Connie Bernardy, DFL-Fridley and
Sen. Katie Sieben, DFL-Newport), would have established
an early voting system statewide. The bill would
have defined early voting as “voting in person before election
day at the office of the county auditor or designated
municipal clerk.” The early voting option would have been
made available to any eligible voter for primary, general
and special elections for federal, state, or county offices.
(AL)
Ranked-choice voting
HF 367/SF 335 (Rep. Steve Simon, DFL-Hopkins and
Sen. Ann Rest, DFL-New Hope) would have allowed statutory
cities to adopt and implement ranked-choice voting
(RCV) if approval by the city council. Currently, charter
cities are able to adopt RCV, and Minneapolis and St. Paul
have done so by referendum. RCV allows voters to rank
their candidate choices instead of choosing a single candidate
for local, non-partisan races. (AL)
Felon voting
SF 164/HF 637 (Sen. Bobby Jo Champion, DFL-Minneapolis
and Rep. Laurie Halverson, DFL-Eagan) is the bill
containing the recommendations from the Governor’s Task
Force on Election Integrity regarding felon voting rights
and notification. Several provisions were adopted into the
omnibus elections bills and are now law (see Chapter 131).
A key provision that did not become law was the requirement
to notify the adult felon on probation of loss of voting
rights in writing and signed by the individual. (AL)
June primary
HF 687/SF 898 (Rep. Steve Simon, DFL-Hopkins and
Sen. Jim Carlson, DFL-Eagan) would have changed the
state primary date from the second Tuesday in August to
the first Tuesday after the third Monday in June. (AL)
2013 Law Summaries Page 77

BILLS THAT DID NOT BECOME LAW (DNBL)
DNBL-EMPLOYMENT LAW
Statewide teacher health insurance pool
HF 573/SF 446 (Rep. John Ward, DFL-Baxter and Sen.
Scott Dibble, DFL, Minneapolis) would have pooled
school employees into a statewide health plan. The proposal
has been a high priority for Education Minnesota,
the association that represents public school teachers. Proponents
for the legislation argued that a statewide pool
would lower health insurance premiums for all school
employees. Opponents argued that the measure, if enacted,
would raise costs for many school districts, which currently
have the option of negotiating with other districts as cooperatives.
(AF)
Minimum wage
HF 92/SF 3 (Rep. Ryan Winkler, DFL-Golden Valley and
Sen. Chris Eaton, DFL-Brooklyn Center) would have
increased the Minnesota minimum wage for large employers
(with business volume in excess of $625,000 per year)
from the current $6.15 per hour to $8.35 per hour on
Aug. 1, 2013; $9.45 per hour on Aug. 1, 2014; and $10.55
per hour on Aug. 1, 2015. Small employers (with business
volume under $625,000 per year) would see an increase
in the minimum wage from the current $5.25 per hour to
$6.50 per hour on Aug. 1, 2013; $7.75 per hour on Aug. 1,
2014; and $9 per hour on Aug. 1, 2015. Beginning on Jan.
1, 2016, the minimum wage amounts for both large and
small employers would be increased by the rate of inflation
as measured by the consumer price index for all urban
consumers. (GC)
Pregnancy leave
HF 463 (Rep. Phyllis Kahn, DFL-Minneapolis) would
have required an employer to grant an unpaid leave not to
exceed 12 weeks to a female employee disabled by pregnancy,
childbirth, or a related medical condition. The bill
would also have allowed an employee to utilize all available
accrued vacation or sick leave during the leave. The
employer may require the employee to give reasonable
notice of the leave. The bill would have also required an
employer to provide reasonable accommodations related
to pregnancy, including but not limited to seating, frequent
restroom breaks, and limits on heavy lifting. The
bill requires the employer to make accommodations
upon request of the employee and with the advice of a
health care provider. The bill also would have required an
employer to transfer a pregnant female employee to a less
strenuous or hazardous position, with the advice of a physician
and upon her request, where the transfer can be reasonably
accommodated. (GC)
Page 78
Prompt payment of wages
HF 748 (Rep. Steve Simon, DFL-St. Louis Park) would
have modified the prompt payment of wages requirements
in Minnesota Statutes, sections 181.13 and 181.14. Under
the bill, an employee who is being discharged or resigns
from employment must be paid all wages at the “regular
rate of pay or at the rate required by law, whichever rate is
greater.” This would likely come into play for cities if there
is a dispute about the “regular rate of pay” under the terms
of a union agreement or a personnel policy. “Regular rate
of pay” is not defined under the new law, but there is a
definition of “regular rate of pay” in the federal Fair Labor
Standards Act that includes nearly all forms of compensation
except benefits and expense reimbursements. The
bill would have allowed “compensatory damages” equal
to the amount of wages that were earned and unpaid. The
employee’s demand for payment would not have needed to
be in writing or state the precise amount of unpaid wages.
The bill also would have clarified that employers cannot
make deductions from wages due at time of discharge for
lost, stolen, or damaged property of the employer, unless
the deduction is voluntarily authorized by the employee in
writing after the loss has occurred. (AF)
Overtime hour threshold
HF 763 (Rep. Jason Metsa, DFL-Virginia) that would have
reduced the overtime threshold to 40 hours from the current
48 hours. In most instances, this bill would not have
impacted cities because the federal threshold of 40 hours
is already required for most positions. However, because
of federal exemptions for seasonal/recreational establishments,
there may have been some sectors of city employment
impacted by the lower limit of 40 hours. Cities that
currently take advantage of this 48-hour limit for lifeguards
at beaches and outdoor swimming pools or for golf course
employees would have been subject to the same 40-hour
limit as other city employees. (GC)
DNBL-ENVIRONMENT
Water appropriation fee increase
HF 976 (Rep. Jean Wagenius, DFL-Minneapolis) included
an increase to water appropriation fees by $6.1 million
per year. Based on 2010 water use data, the fee would
have generated an additional $2.15 million from water
appropriation fees on municipal systems and an additional
$1.45 million from summer water use surcharges. Agricultural
irrigation and golf courses would have seen their
rates increase by $725,000 and $425,000 respectively. The
remaining $1.4 million would have come from increases to
various industrial permits.
The bill would have also set residential water use fees
at $15 per million gallons. The size of the system would
League of Minnesota Cities

BILLS THAT DID NOT BECOME LAW (DNBL)
have no longer resulted in a change to the base fee. Nonagricultural
irrigation would have been charged $70 per
million gallons. Agricultural irrigation would have been
billed at $22 per million gallons, and other water uses
would have been charged $30 per million gallons. The
summer surcharge rate paid on the difference between
summer water use and January water use would have been
set at $75 per million gallons. The proposal would have
expanded the summer surcharge window to include May
and September in addition to the current June, July, and
August time period. These fees were not increased in the
final budget agreement, but the groundwater research they
were intended to finance was all funded through the general
fund.
(CJ)
Silica sand mining
SF 786/no House companion (Sen. Matt Schmit, DFL-
Red Wing) would have created an organization similar to
the Iron Range Rehabilitation and Recovery Board, but
focused on silica mining. The legislation would have also
required the completion of a statewide Generic Environmental
Impact Statement (GEIS), would have allowed the
extension of local moratoria beyond the normal statutory
limits, and would have allowed the Environmental Quality
Board (EQB) to veto government decisions on the need
for the completion of environmental impact statements
for any project. Other provisions related to silica sand that
were agreed to by local government organizations were
adopted at part of Chapter 114, the omnibus environment
and natural resources budget bill. (CJ)
Silica sand mining
HF 1336/SF 1487 (Rep. Rick Hansen, DFL-South St.
Paul/Sen. Matt Schmit, DFL-Red Wing) would have
imposed a tax of $1 per ton is imposed on the extraction
of silica sand as well as a separate tax on the processing
of silica sand, and this amount is equal to 3 percent of
the market value of the sand. Proceeds from the extraction
tax would have been appropriated to the Environmental
Quality Board. Proceeds from the production tax would
have been divided in equal parts and appropriated to the
commission of transportation for road maintenance, the
commissioner of natural resources for acquisition of certain
lands, and to the Board of Water and Soil Resources to
acquire easements preventing mining in wellhead protection
areas. (GC)
State shoreland rules
SF 1089/no House companion (Sen. Tom Saxhaug, DFL-
Grand Rapids) would grant legislative authority to the
Department of Natural Resources to restart its efforts to
revise statewide restrictions related to shoreland development.
Those rules had previously been completed in draft
form and sent to Gov. Pawlenty, who refused to allow
them to be adopted. The authority has since expired.
The language allowing that process to continue briefly
appeared as an amendment to a different Senate bill, but
was dropped due to a lack of support from the governor.
It is likely to be an issue discussed in upcoming legislative
sessions, as the rules have not been updated since the late
1980s. (CJ)
Legislative water commission
HF 1769/SF 1601 (Rep. Peter Fischer, DFL-Maplewood/
Sen. Bev Scalze, DFL-Little Canada) would recreate the
Legislative Water Commission, a joint legislative body
that was phased out in 1994. The group would meet during
legislative interim periods to discuss water policy and
funding issues. The goal is to have a group of legislators
from both bodies thoroughly knowledgeable about complex
water issues, and able to provide legislative leadership
on discussions related to those issues during legislative session
debates and discussions. The bill is likely to be discussed
next year as a potential supplemental budget item.
(CJ)
DNBL-LAND USE AND GROWTH MANAGEMENT
Annexation
HF 1425 (Rep. Andrew Falk, DFL-Murdock) would have
created a prohibition on annexation of any type occurring
of a property that is subject to an orderly annexation
agreement with any other city. The bill would have
also prohibited the use of annexation by ordinance if a
parcel has been subdivided from a parcel larger than 120
acres within the previous five years. The bill was first heard
many weeks after the policy committee deadline and was
laid aside by the chair without a vote being taken. It followed
numerous unsuccessful attempts by the same legislative
author to include specific provisions affecting or
canceling annexations occurring next to Ortonville in
other pieces of legislation. (CJ)
Partial discharge of easements
HF 752/SF 480 (Rep. Debra Hilstrom, DFL-Brooklyn
Center and Sen. Lyle Koenen, DFL-Clara City) amends
Minn. Stat. § 177.225 and would allow a property owner
to petition to have a portion of an easement taken through
condemnation discharged if a court finds that any portion
is not being used for the purpose for which it was taken.
The League, counties, and the Department of Transportation
worked to prevent passage of this bill, which could
have resulted in numerous lawsuits over easements that
have been in place for decades. (PH/CJ)
2013 Law Summaries Page 79

BILLS THAT DID NOT BECOME LAW (DNBL)
DNBL-PENSIONS AND RETIREMENT
Increase in police and fire pension aid
HF 857/SF 935 (Rep. Joe Atkins, DFL-Inver Grove
Heights and Sen. Sandy Pappas, DFL-St. Paul) would
have imposed a surcharge on various insurance premiums
to provide additional funding for the existing police and
fire pension state aid programs. Since reaching its peak of
$31.7 million in 2006, the revenues collected to fund the
fire state aid program have declined by nearly 31 percent,
or $10 million. Police state aid, which is funded by a tax
on automobile insurance premiums, reached its peak in
2009 at $63.3 million and has since declined to $59.9 million
in 2012, or a drop of 5.4 percent. Under the bill, a $5
annual surcharge would have been applied to each new or
renewed homeowner insurance policy and a $5 surcharge
would have been applied to each automobile insurance
policy. The final omnibus tax bill included a $15.5 million
annual state general fund appropriation that will fund
portions of the initiatives in this bill without using the surcharge
mechanisms. (GC/PH/AF)
DNBL-PUBLIC FINANCE
Municipal bond interest exemption repeal
HF 1493/no Senate companion (Rep. Ann Lenczewski,
DFL-Bloomington) included a provision that would have
removed the tax exempt status of municipal bonds. Without
the tax benefits, interest rates would have increased in
order to be competitive with other bonds and to attract
investors. The increase in bond payments would have
increased the cost of construction projects funded by the
bonds, and that cost would flow to local taxpayers. (GC)
DNBL-PUBLIC SAFETY
Photo-cop
HF 487/SF 377 (Rep. Alice Hausman, DFL-St. Paul and
Sen. John Pederson, R-St. Cloud) would have given local
units of government the authority to use traffic cameras
to enforce red light violations. The bill would have also
authorized a vendor to contract with a local unit of government
to capture images of red light runners, review
them, and forward them to the local law enforcement
agency. (AF)
DNBL-TAXES
Nonprofits exempted from city fees and service
charges
SF 1050/HF 781 (Sen. Chris Eaton, DFL-Brooklyn
Center and Rep. Mike Nelson, DFL-Brooklyn Center)
would have exempted institutions of public charity, such
Page 80
as defined in Minn. Stat., section 272.02, subdivision 7,
(churches, universities and colleges were not covered by
the bill) from paying fees or charges imposed by a city if
that fee or charge was for a service provided by the city,
and within the most recent five years, the service had been
paid for in whole or in part from revenue raised from the
city’s property tax levy. The definition would have likely
impacted storm sewer charges and street lighting charges
but it could have also impacted special assessments, water
and sewer charges, waste hauling charges, and other current
service charges. In addition, even if a service provided
by a city had been largely paid by fees or charges, any use
of property taxes within the past five years to fund that
service would have triggered the exemption for nonprofit
organizations. (GC)
Levy authority to Southeast Minnesota Multicounty
Housing and Redevelopment Authority
SF 896/HF 1027(Sen. LeRoy Stumpf, DFL-Plummer and
Debra Kiel, R-Crookston) would have given the Southeast
Minnesota Multicounty Housing and Redevelopment
Authority levy authority similar to the authority previously
granted to the Northwest Minnesota Multicounty
Housing and Redevelopment Authority. Effective beginning
with taxes payable in 2014 and through taxes payable
in 2019, the Southeast Minnesota Multicounty Housing
and Redevelopment Authority (HRA) would have been
allowed to levy up to 25 percent of its total levy authority
on its own and without the approval of the city or county
in which the authority operates. The remaining 75 percent
of the HRA’s permitted levy would have still required the
approval of two-thirds majority of all its members in order
to levy property taxes as permitted under Minn. Stat. §
469.033. (HC/GC)
Labor peace agreement
HF 1765/SF 1614 (Rep. Mike Nelson, DFL-Brooklyn
Park and Sen. Kari Dziedzic, DFL-Minneapolis) would
have required any public-funded project in Hennepin,
Ramsey, St. Louis, and Olmsted counties that employs hospitality
workers to enter into a “labor peace agreement” as
a condition of accepting any public funds. The bill would
have applied to construction and development of a hotel,
sports facility, convention center, or cultural facility with
catering or cafeteria facilities. The provision was also carried
in the House omnibus tax bill but was not included in
the final tax conference committee report. A labor peace
agreement is an agreement between a developer and a
labor organization seeking to represent hospitality workers
on qualifying projects. The labor organization agrees
not to picket or otherwise disrupt work on the project,
in exchange for establishing a process for determining
employee preference regarding union representation. Labor
peace agreements have been used on individual projects,
League of Minnesota Cities

BILLS THAT DID NOT BECOME LAW (DNBL)
such as the Vikings Stadium, and have been adopted as
municipal ordinances. Minneapolis has a labor peace ordinance,
although the provisions differ from those in the proposed
legislation. (GC)
Sales tax base broadening to clothing
SF 9/no House companion (Sen. Ann Rest, DFL-New
Hope) would have limited the clothing sales tax exemption
to the first $200 of any article of clothing. SF 11 (Sen. Ann
Rest, DFL-New Hope) would have eliminated the clothing
sales tax exemption entirely and replaced it with an
income tax refund system. (GC)
Homeowner property tax refund
SF 552/HF 677 (Rod Skoe, DFL-Clearbrook and Ann
Lenczewski, DFL-Bloomington) as introduced included
Gov. Dayton’s proposed new property tax rebate for all
Minnesota homesteads. The homeowner property tax
rebate would have been equal to the lesser of $500 or 100
percent of the homestead’s previous-year property tax bill.
According to the budget document, there are approximately
1.5 million homesteads in Minnesota, and an estimated
95 percent of those homesteads would receive the
maximum $500 rebate. The other 5 percent of eligible
homeowners would have 100 percent of their previous
year’s property tax bill paid via the state rebate. (GC)
Gov. Dayton’s tax recommendations
SF 552/HF 677 (Rod Skoe, DFL-Clearbrook and Ann
Lenczewski, DFL-Bloomington) as introduced were the
governor’s budget tax recommendations that included
a new fourth tier income tax bracket; modifications to
the corporate franchise tax; a sales tax rate reduction and
base expansion to services, higher-value clothing, digital
goods, and Internet commerce; and a new LGA formula
with an increased appropriation. Note that these bills were
amended to become the House and Senate omnibus tax
bills. (GC)
Tax hearing and notification law changes
HF 1570/no Senate companion (Rep. Paul Marquart,
DFL-Dilworth) would have repealed the current parcelspecific
preliminary tax notice and in its place would have
required local governments with a population over 2,500
to hold an additional public hearing prior to adopting its
proposed levy. Affected cities would have been required
to publish a “preliminary proposed budget” prior to Sept.
1, and then required to hold a public hearing after Sept.
1, but before the proposed levy is adopted, which under
current law must occur by Sept. 15. The bill would have
required that the preliminary proposed budget be published
on the city website, and the public hearing may not
start before 6 p.m., must allow for the public to testify,
must be distributed electronically via television or over the
Internet, and must allow for public input electronically via
e-mail or social media. (GC)
Tax hearing and notification law changes
HF 1724/SF 1563 (Rep. Jim Davnie, DFL-Minneapolis
and Sen. Rod Skoe, DFL-Clearbrook) would have required
that each taxing district provide the following information
at an publicly-noticed hearing prior to Sept. 1, including
the estimated proposed levy, prior final levy, and percent
change; the tax rate for the estimated proposed levy, current
tax rate, and percent change; a statement of reason for
the increase or decrease, “including the four most significant
factors resulting in the change, and an accounting
of the distribution of levy proceeds from the prior year.
Unlike the Marquart proposal above, HF 1724 would not
have repealed the parcel-specific notice required by current
law. (GC)
Local Sales Tax Bills
• Walker sales tax. SF 15/HF 39 (Senator Tom Saxhaug,
DFL-Grand Rapids and Rep. John Persell, DFL-Bemidji)
would have authorized the City of Walker to impose
up to a 1.5 percent general sales tax to fund underground
utility, street, curb, gutter and sidewalk improvements.
The bill would have also authorize the city to
issue bonds of up to $20 million to pay capital and
administrative costs related to the improvements. (GC)
• Windom sales tax. HF 1417/SF 1207 (Rep. Rod
Hamilton, R-Mountain Lake and Sen. Bill Weber,
R-Luverne) would have authorized the City of Windom
to impose up to a 0.5 percent local sales tax to fund the
costs of public facilities and the option for capitalization
of a revolving loan fund for the Windom Economic
Development Authority. (GC)
• Bemidji lodging. SF 701/HF 1037 (Sen. Tom Saxhaug,
DFL-Grand Rapids and John Persell, DFL-Bemidji)
would have authorized the City of Bemidji to impose a
local lodging tax to fund the costs of operation, maintenance,
and capital replacement costs for the Sanford
Center. (GC)
DNBL-TELECOMMUNICATIONS
Telecommunications regulation changes
SF 584/HF 985 is a modernization and update to various
sections in Minn. Stat. § 237, Minnesota’s telecommunications
statute. The bill defines “advanced services,”
“basic services,” “competitive local exchange carrier,” and
“wholesale telecommunications service.” The bill also
transfers the regulatory duties from the Department of
Commerce to the Public Utilities Commission. Furthermore,
the bill outlines the regulation of local exchange
carriers and advanced service providers to combine local
access surcharge requirements.
2013 Law Summaries Page 81

BILLS THAT DID NOT BECOME LAW (DNBL)
The bill received an informational hearing in the
House after committee deadlines and is expected to be
heard in the 2014 legislative session.
(LZ)
DNBL-TRANSPORTATION
Municipal street improvement district authority
HF 745/SF 607 (Rep. Ron Erhardt, DFL-Edina and Sen.
Jim Carlson, DFL-Eagan) would have allowed cities to collect
fees from property owners within a district to fund
municipal street maintenance, construction, reconstruction,
and facility upgrades. The street improvement district
authority legislation was modeled after Minnesota Statutes,
§ 435.44, which allows cities to establish sidewalk improvement
districts. The authority would have provide a funding
mechanism that establishes a clear relationship between
who pays fees and where projects occur, but stops short of
the benefit test that sometimes makes special assessments
vulnerable to legal challenges. As introduced, it also did not
prohibit cities from collecting fees from tax-exempt properties
within a district, and the tool could have been used
to mitigate or eliminate the need for special assessments.
A modified version of the authority was included in
the initial version of the House omnibus tax bill, but the
provision was not included in the final tax conference
committee report.
(AF)
Sales tax on gasoline
SF 1173 (Sen. Scott Dibble, DFL-Minneapolis) included
a new sales tax at the fuel distributor level—which was
suggested by transportation advocates, including the Minnesota
Transportation Alliance. Proponents of the distributor
tax argue that gas tax revenues are declining and any
increase in the per-gallon tax would not only fail to keep
up with inflation, but would decline as fuel consumption is
projected to decrease. The proposal would have decreased
the current 25-cent-per-gallon fuel tax by 6 cents per gallon,
and replace that tax with a 5.5 percent gross receipts
tax on distributors. Due to the fact that the sales tax is
a percentage of the price of gasoline, the revenue will
increase automatically as the price increases. (AF)
Mini-trucks
HF138/SF 67 (Rep. Bud Nornes, R-Fergus Falls and
Sen. Bill Ingebrigtsen, R-Alexandria) would have allowed
operation of mini-trucks on local roads as passenger automobiles.
Although the bill would have provided that a local
road authority may by ordinance prohibit the operation of
a mini-truck on streets and highways under the local road
authority’s jurisdiction, local jurisdictions would no longer
have had the authority to issue permits for mini-truck use.
(AF)
Gas tax increase
Transportation advocates hoped the Senate’s more substantive
funding package would prevail, but that hope
faded over the final weekend of the session. Transportation
advocates had held out hope that a transportation funding
package passed by the Senate on May 10 would prevail in
conference committee. It included an increase in both the
metro area sales tax for transit purposes and the state gas
tax. Instead, the conference committee report contained a
hefty bonding provision, new taxing authority for counties,
and a change in distribution of motor vehicle leased sales
tax revenue. (AF)
Page 82
League of Minnesota Cities

Appendix A: Estimate Your 2014 Levy Limit
How to Estimate Your City’s 2014 Levy Limit
Preliminary and subject to final review by the MN Department of Revenue (revised 6/12/2013)
The 2013 legislature enacted a one-year levy limit for cities over 2,500 population that will cover levies
established by cities this fall for collection in 2014. The language on levy limits is contained in the final tax bill
of the 2013 session, Chapter 143 (HF 677) and amended in Chapter 144 (SF 1664). This fact sheet is intended
to provide an initial description of the levy limit for planning purposes.
Timeline: Cities will be required to provide the Department of Revenue (MDoR) with the information
needed to calculate levy limits. The first data request will be due July 20th, and there will be other
exchanges of information needed throughout the year. The Minnesota Department of Revenue (MDoR) will
be certifying levy limits by September 1, 2013. Cities, in turn, will be required to report by Sept. 30 to MDoR
the maximum amount it plans to levy for special levies. DOR will certify the allowed special levies by
December 10.
Please note that the levy limit exemption that is provided by participation in local performance measurement
and reporting under Minn. Stat. § 6.91 does not apply under this one-year levy limit.
Calculation:
Step 1: Calculate your allowable special levies for taxes payable in 2012 and 2013. The list of special levies
available under this one-year levy limit are a subset of the special levies available under previous levy limits.
These special levies are not covered by the levy limit and include levies:
(1) to pay the costs of the principal and interest on bonded indebtedness or to reimburse for the amount of
liquor store revenues used to pay the principal and interest due on municipal liquor store bonds in the year
preceding the year for which the levy limit is calculated;
(2) to pay the costs of principal and interest on certificates of indebtedness issued for any corporate purpose
except for the following:
(i) tax anticipation or aid anticipation certificates of indebtedness;
(ii) certificates of indebtedness issued for shortages in the taconite tax distribution under Minn. Stat.
§ 298.28 and Minn. Stat. § 298.282;
(iii) certificates of indebtedness used to fund current expenses or to pay the costs of extraordinary
expenditures that result from a public emergency; or
(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an insufficiency in
other revenue sources, provided that nothing in this subdivision limits the special levy authorized
under Minn. Stat. § 475.755;
(3) to provide for the bonded indebtedness portion of payments made to another political subdivision of the
state of Minnesota;
(4) to fund payments made to the Minnesota State Armory Building Commission under Minn. Stat.
§193.145, subd. 2, to retire the principal and interest on armory construction bonds;
2013 Law Summaries Page 83

Page 2
Appendix A: Estimate Your 2014 Levy Limit
(5) to pay the expenses reasonably and necessarily incurred in preparing for or repairing the effects of
natural disaster including the occurrence or threat of widespread or severe damage, injury, or loss of life or
property resulting from natural causes, in accordance with standards formulated by the Emergency Services
Division of the state Department of Public Safety, as allowed by the commissioner of revenue under Minn.
Stat. § 275.74, subdivision 2;
(6) to pay an economic development abatement under Minn. Stat. § 469.1815;
(7) for purposes of a storm sewer improvement district under Minn. Stat. § 444.20;
Step 2: Calculate your initial levy limit base. Take the greater of: payable 2012 certified net tax capacity levy
plus certified 2012 LGA minus any payable 2012 amounts that would qualify as special levies OR payable
2013 certified net tax capacity levy plus 2013 certified LGA minus any 2013 amounts that would qualify as
special levies. (Note that for metro cities and cities on the Iron Range, the certified levy is the amount of levy
before accounting for any fiscal disparities).
Step 3: Calculate your final levy limit base. Increase your initial levy limit base from Step 2 by 3 percent
(multiply by 1.03).
Step 4: Calculate your levy limit. The levy limit equals your city’s final levy limit base plus any voterapproved
levies to exceed the levy limit under Minn. Stat. § 275.73 minus the total LGA you are certified to
receive in 2014. (Note that no city’s final levy limit can be lower than the greater of 2012 or 2013 certified
net tax capacity levies).
Step 5: In addition to the amount of the levy limit, a city can levy amounts needed in 2014 for the special
levies identified in Step 1. These are above and beyond the limited portion of the city’s levy.
A simple example of estimating a levy limit:
• 2012 certified levy ..................................................................................................................$350,000
• Plus 2012 LGA ........................................................................................................................ +$50,000
• Minus 2012 levy that would have been special levies................................................................ -$25,000
2012 Total ..............................................................................................................................$375,000
• 2013 certified levy ..................................................................................................................$375,000
• Plus 2013 LGA ........................................................................................................................+ $55,000
• Minus 2013 levy that would have been special levies................................................................- $30,000
2013 Total ..............................................................................................................................$400,000
• Initial levy limit base (greater of 2012 or 2013) .........................................................................$400,000
• Final Levy limit base (initial levy limit base X 1.03) ....................................................................$412,000
• 2014 LGA ............................................................................................................................... $75,000
• Levy limit (final levy limit base minus 2014 LGA but not less than the greater of 2012 or 2013 certified levy) ..$375,000
• 2014 tax year special levies which can be levied above the limit ................................................ $35,000
• 2014 total levy (limited portion plus special levies)……………………………………………………………………$410,000
Note: voter approved levies assessed against referendum market value can also be added as special levies.
Questions on levy limits?
Contact : Gary Carlson at (651) 281-1255 or gcarlson@lmc.org or
Rachel Walker at (651) 281-1236 or rwalker@lmc.org
Page 84
League of Minnesota Cities

Appendix B: City LGA Amounts 2013 and 2014
2014 LGA Estimates
(Based on estimates prepared by the House Research Department)
Governor Dayton signed the 2013 omnibus tax bill into
law as Chapter 143 on May 23, 2013. This chapter contains
the first significant reform to the LGA program since
2003 as well as an increase to the appropriation for city aid
payments.
For 2014, the LGA distribution will be at $507.6
million, an $80.1 million increase over the 2013 certified
level. In both 2015 and 2016, the appropriation grows
by an additional $1.5 million (to $509.1 million and to
$511.6 million respectively). Beyond 2016, the distribution
is currently set to remain at $511.6 million. For comparison,
in 2002 when LGA received the highest level of state
funding, the formula distributed $565 million to cities
across the state.
The LGA calculation will continue to utilize a comparison
of each city’s “need” as measured by a variety of
demographic factors with its “capacity” as measured by the
city’s adjusted net tax capacity multiplied by the statewide
average city tax rate. If a city is unable to fund its defined
“need” based on its defined “capacity,” the city will receive
LGA. The amount of that need-capacity gap that is filled
depends on the overall size of the pool of money to be
distributed. The share of the gap filled by LGA is the same
for all cities that receive LGA. If a city has no gap or if
capacity exceeds its need, the city will not receive LGA.
The changes to the formula made in the 2013 tax bill
focus largely on defining city need.
The LGA formula will now include three calculations
of need based on city size.
• For cities under 2,500 population: each city’s need is
simply a per capita amount starting at $410 per capita
and increasing to $630 per capita as city population size
increases.
• For cities between 2,500 and 10,000 population: three
factors will be used in the calculation of city need; 1)
the percent of the city’s housing stock built before 1940,
2) the average household size, and 3) the population
decline (percentage) from the city’s peak population of
the last forty years.
• For cities over 10,000 population: four factors will be
used in the calculation of city need; 1) the number of
jobs per capita, 2) the age of housing stock (defined as
the percent of housing built before 1940, 3) the percent
of housing built between 1940 and 1970, and 4) a sparsity
adjustment for cities with less than 150 residents per
square mile.
For 2014 only, no city can receive less LGA than it
is set to receive in 2013. Beginning with aid payments in
2015, city aid amounts can decrease if a city’s current year
LGA exceeds its calculated need. Similar to recent formulas,
there are limits to how much a city’s aid can decrease:
the lesser of 5 percent of the previous year’s levy or $10
per capita.
Columns in the spreadsheet
Column 1: City 2011 population from the state
demographer
Column 2: Certified 2013 LGA amount
Column 3: Estimate of 2014 LGA without the changes
made by the 2013 tax bill
Column 4: Estimate of 2014 LGA under Chapter 143 (the
omnibus tax bill)
Column 5: Change from 2013 certified to 2014 estimate
under Chapter 143
2013 Law Summaries Prepared by LMC with data from House Research
Page 85

Page 86 Prepared by LMC with data from House Research
League of Minnesota Cities
2011 Population 2013 LGA
2014 LGA
–old law
ADA 1,710 571,600 554,500 608,356 +36,756
ADAMS 792 208,384 200,464 242,067 +33,683
ADRIAN 1,208 362,303 350,223 402,591 +40,288
AFTON 2,887 0 0 0 +0
AITKIN 2,160 732,618 711,018 751,451 +18,833
AKELEY 430 48,881 45,050 64,597 +15,716
ALBANY 2,590 627,315 601,415 688,864 +61,549
ALBERT LEA 17,994 4,724,618 4,544,678 5,158,700 +434,082
ALBERTA 100 28,357 27,521 28,357 +0
ALBERTVILLE 7,114 0 0 79,647 +79,647
ALDEN 662 145,081 138,461 176,337 +31,256
ALDRICH 48 6,423 6,245 7,012 +589
ALEXANDRIA 12,920 1,204,947 1,075,747 1,463,774 +258,827
ALPHA 116 35,367 34,207 35,810 +443
ALTURA 492 43,918 41,855 65,612 +21,694
ALVARADO 366 55,149 54,003 72,853 +17,704
AMBOY 533 125,545 120,215 140,679 +15,134
ANDOVER 30,847 0 47,632 74,651 +74,651
ANNANDALE 3,280 260,224 227,424 392,480 +132,256
ANOKA 17,331 901,095 1,486,706 1,547,441 +646,346
APPLE VALLEY 49,801 0 0 0 +0
APPLETON 1,403 876,061 862,031 876,061 +0
ARCO 74 24,655 23,915 24,655 +0
ARDEN HILLS 9,381 0 0 0 +0
ARGYLE 643 197,165 190,735 217,106 +19,941
ARLINGTON 2,231 636,892 614,582 714,403 +77,511
ASHBY 448 102,139 97,659 114,761 +12,622
ASKOV 363 64,584 61,688 76,684 +12,100
ATWATER 1,131 237,341 254,002 289,779 +52,438
AUDUBON 522 98,560 95,402 116,671 +18,111
AURORA 1,679 605,415 588,625 634,982 +29,567
AUSTIN 24,803 7,122,450 6,874,420 7,878,815 +756,365
AVOCA 143 26,223 24,793 26,223 +0
AVON 1,403 209,935 233,012 261,866 +51,931
BABBITT 1,465 299,542 286,671 347,806 +48,264
BACKUS 246 28,410 26,619 28,661 +251
BADGER 369 100,302 96,612 108,959 +8,657
BAGLEY 1,404 384,402 382,233 435,634 +51,232
BALATON 645 198,557 192,107 218,927 +20,370
BARNESVILLE 2,588 655,766 629,886 754,097 +98,331
BARNUM 614 128,897 123,497 152,226 +23,329
BARRETT 414 57,809 59,776 73,696 +15,887
BARRY 16 2,476 2,351 2,476 +0
BATTLE LAKE 877 42,044 53,195 74,206 +32,162
BAUDETTE 1,111 289,939 278,829 297,714 +7,775
BAXTER 7,620 0 0 0 +0
BAYPORT 3,525 335,228 299,978 483,255 +148,027
BEARDSLEY 230 74,065 71,765 74,065 +0
BEAVER BAY 181 12,520 10,710 12,520 +0
BEAVER CREEK 298 40,424 39,937 48,215 +7,791
BECKER 4,581 0 0 0 +0
BEJOU 91 19,645 18,735 19,921 +276
BELGRADE 748 180,345 172,865 211,021 +30,676
BELLE PLAINE 6,621 54,473 21,799 267,356 +212,883
2014 LGA
–Ch 143 Change 2011 Population 2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
BELLECHESTER 176 17,774 16,989 21,312 +3,538
BELLINGHAM 167 61,143 59,473 61,143 +0
BELTRAMI 107 25,817 24,747 25,817 +0
BELVIEW 383 103,367 99,537 114,645 +11,278
BEMIDJI 13,528 2,906,194 2,770,914 3,211,265 +305,071
BENA 118 27,257 26,141 29,545 +2,288
BENSON 3,223 776,650 744,420 947,350 +170,700
BERTHA 498 132,871 127,891 149,117 +16,246
BETHEL 466 35,117 34,819 46,105 +10,988
BIG FALLS 235 67,827 65,477 70,673 +2,846
BIG LAKE 10,164 156,014 491,839 481,526 +325,512
BIGELOW 236 49,185 47,268 55,154 +5,969
BIGFORK 443 80,363 75,933 94,302 +13,939
BINGHAM LAKE 125 26,063 24,813 26,063 +0
BIRCHWOOD 870 0 0 0 +0
BIRD ISLAND 1,032 370,344 360,024 388,605 +18,261
BISCAY 113 12,234 12,555 16,048 +3,814
BIWABIK 987 263,385 253,515 263,385 +0
BLACKDUCK 797 205,021 197,051 238,784 +33,763
BLAINE 58,331 0 0 0 +0
BLOMKEST 158 16,533 15,307 19,001 +2,468
BLOOMING PRAIRIE 1,993 647,677 627,747 695,248 +47,571
BLOOMINGTON 83,671 0 0 403,931 +403,931
BLUE EARTH 3,348 1,535,819 1,502,339 1,772,985 +237,166
BLUFFTON 206 32,101 31,431 36,201 +4,100
BOCK 106 15,437 15,010 16,169 +732
BORUP 113 17,772 17,777 20,957 +3,185
BOVEY 801 251,002 242,992 274,750 +23,748
BOWLUS 292 36,888 37,622 48,049 +11,161
BOY RIVER 47 4,648 4,549 6,722 +2,074
BOYD 174 65,766 64,026 65,766 +0
BRAHAM 1,812 465,196 475,202 549,404 +84,208
BRAINERD 13,606 3,637,320 3,501,260 4,019,514 +382,194
BRANDON 491 86,841 82,202 99,765 +12,924
BRECKENRIDGE 3,377 1,168,004 1,134,234 1,442,079 +274,075
BREEZY POINT 2,388 0 0 0 +0
BREWSTER 470 180,836 176,478 180,836 +0
BRICELYN 368 122,801 119,121 127,624 +4,823
BROOK PARK 139 17,784 16,525 20,633 +2,849
BROOKLYN CENTER 30,204 411,378 1,317,891 1,352,393 +941,015
BROOKLYN PARK 76,238 0 1,441,081 1,022,502 +1,022,502
BROOKS 142 28,524 27,610 30,220 +1,696
BROOKSTON 141 6,665 6,626 11,105 +4,440
BROOTEN 745 138,694 136,839 170,024 +31,330
BROWERVILLE 791 206,697 198,787 237,343 +30,646
BROWNS VALLEY 583 357,430 351,600 357,430 +0
BROWNSDALE 677 168,304 162,065 199,427 +31,123
BROWNSVILLE 462 58,162 55,206 65,697 +7,535
BROWNTON 759 230,476 222,886 264,769 +34,293
BRUNO 102 17,945 16,925 18,404 +459
BUCKMAN 277 18,509 21,212 28,598 +10,089
BUFFALO 15,580 145,886 711,067 636,249 +490,363
BUFFALO LAKE 723 203,623 196,393 225,545 +21,922
BUHL 998 326,569 316,589 354,761 +28,192
Appendix B: 2014 LGA Estimates

2013 Law Summaries Prepared by LMC with data from House Research
Page 87
2011 Population 2013 LGA
2014 LGA
–old law
BURNSVILLE 60,664 0 0 85,825 +85,825
BURTRUM 144 27,162 26,124 31,076 +3,914
BUTTERFIELD 586 160,498 154,638 187,035 +26,537
BYRON 4,952 136,035 95,100 257,063 +121,028
CALEDONIA 2,851 832,011 803,501 936,661 +104,650
CALLAWAY 236 34,220 32,208 41,902 +7,682
CALUMET 366 118,691 115,031 120,051 +1,360
CAMBRIDGE 8,194 426,004 538,638 689,424 +263,420
CAMPBELL 159 58,644 57,054 58,644 +0
CANBY 1,781 664,915 647,105 702,405 +37,490
CANNON FALLS 4,082 469,740 428,920 616,263 +146,523
CANTON 346 78,420 74,960 86,599 +8,179
CARLOS 499 47,513 55,451 71,454 +23,941
CARLTON 861 226,274 217,664 251,382 +25,108
CARVER 3,831 40,299 1,989 68,063 +27,764
CASS LAKE 764 411,951 404,311 411,951 +0
CEDAR MILLS 45 5,968 5,847 6,378 +410
CENTER CITY 629 26,951 23,724 37,282 +10,331
CENTERVILLE 3,804 0 0 53,441 +53,441
CEYLON 362 127,725 124,105 133,908 +6,183
CHAMPLIN 23,223 0 392,715 237,521 +237,521
CHANDLER 267 68,662 65,992 68,662 +0
CHANHASSEN 23,247 0 0 0 +0
CHASKA 24,002 37,441 310,374 462,648 +425,207
CHATFIELD 2,784 666,960 639,120 751,019 +84,059
CHICKAMAW BEACH 110 0 0 0 +0
CHISAGO CITY 4,974 0 0 122,925 +122,925
CHISHOLM 4,997 2,711,002 2,661,032 3,063,733 +352,731
CHOKIO 392 119,050 115,130 125,027 +5,977
CIRCLE PINES 4,922 152,142 168,545 314,421 +162,279
CLARA CITY 1,349 358,536 345,046 396,078 +37,542
CLAREMONT 550 153,171 147,671 158,316 +5,145
CLARISSA 682 157,119 150,299 192,829 +35,710
CLARKFIELD 857 344,785 336,215 356,735 +11,950
CLARKS GROVE 701 165,361 159,628 194,227 +28,866
CLEAR LAKE 550 23,234 28,465 43,154 +19,920
CLEARBROOK 521 146,914 141,704 161,596 +14,682
CLEARWATER 1,749 209,623 262,846 272,862 +63,239
CLEMENTS 152 33,903 32,494 35,504 +1,601
CLEVELAND 717 124,558 119,058 153,988 +29,430
CLIMAX 267 43,962 41,292 53,856 +9,894
CLINTON 445 137,750 133,300 149,108 +11,358
CLITHERALL 111 16,870 17,721 20,075 +3,205
CLONTARF 159 22,120 21,618 23,664 +1,544
CLOQUET 12,144 1,968,020 1,846,580 2,299,108 +331,088
COATES 160 0 0 0 +0
COBDEN 36 3,505 3,381 3,505 +0
COHASSET 2,706 0 0 0 +0
COKATO 2,721 435,043 407,833 556,239 +121,196
COLD SPRING 4,040 456,875 416,475 590,142 +133,267
COLERAINE 1,977 351,624 397,364 390,663 +39,039
COLOGNE 1,531 149,495 169,273 193,122 +43,627
COLUMBIA HEIGHTS 19,619 895,180 819,007 1,404,151 +508,971
COLUMBUS 3,919 0 0 0 +0
2014 LGA
–Ch 143 Change 2011 Population 2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
COMFREY 382 99,593 95,773 105,802 +6,209
COMSTOCK 94 16,780 16,119 16,780 +0
CONGER 147 19,961 18,491 24,200 +4,239
COOK 574 156,578 150,838 160,936 +4,358
COON RAPIDS 61,766 0 497,492 934,494 +934,494
CORCORAN 5,390 0 0 10,454 +10,454
CORRELL 34 8,253 7,913 8,280 +27
COSMOS 467 128,232 123,562 141,232 +13,000
COTTAGE GROVE 34,828 0 0 59,623 +59,623
COTTONWOOD 1,212 259,768 247,648 293,138 +33,370
COURTLAND 606 61,726 59,320 75,819 +14,093
CROMWELL 238 24,038 22,976 26,305 +2,267
CROOKSTON 7,878 3,056,748 2,977,968 3,512,390 +455,642
CROSBY 2,389 756,240 732,350 814,739 +58,499
CROSSLAKE 2,158 0 0 0 +0
CRYSTAL 22,168 1,455,066 1,233,386 1,643,820 +188,754
CURRIE 231 68,556 66,246 69,999 +1,443
CUYUNA 334 2,164 1,171 7,755 +5,591
CYRUS 287 75,669 72,799 81,155 +5,486
DAKOTA 320 34,858 34,153 41,819 +6,961
DALTON 253 47,177 44,978 55,156 +7,979
DANUBE 496 133,480 128,520 147,646 +14,166
DANVERS 96 9,517 8,987 9,517 +0
DARFUR 109 38,379 37,292 38,379 +0
DARWIN 351 37,512 36,836 46,516 +9,004
DASSEL 1,473 301,387 319,469 359,721 +58,334
DAWSON 1,533 540,099 524,769 575,227 +35,128
DAYTON 4,743 0 0 30,581 +30,581
DEEPHAVEN 3,643 0 0 0 +0
DEER CREEK 323 57,092 54,497 66,317 +9,225
DEER RIVER 929 281,538 272,248 308,879 +27,341
DEERWOOD 534 2,495 3,091 10,833 +8,338
DEGRAFF 112 24,544 23,862 24,544 +0
DELANO 5,510 0 68,751 177,696 +177,696
DELAVAN 177 48,781 47,011 48,781 +0
DELHI 69 15,650 14,960 15,650 +0
DELLWOOD 1,064 0 0 0 +0
DENHAM 37 234 234 234 +0
DENNISON 212 8,798 10,630 10,617 +1,819
DENT 192 41,956 40,791 44,787 +2,831
DETROIT LAKES 8,716 690,536 603,376 782,184 +91,648
DEXTER 340 70,342 66,942 72,139 +1,797
DILWORTH 4,075 493,847 453,097 603,803 +109,956
DODGE CENTER 2,688 624,915 598,035 682,356 +57,441
DONALDSON 42 4,638 4,444 4,844 +206
DONNELLY 240 50,497 48,477 54,194 +3,697
DORAN 55 12,030 11,505 13,133 +1,103
DOVER 741 93,649 90,079 129,012 +35,363
DOVRAY 57 13,705 13,192 13,705 +0
DULUTH 86,256 27,437,478 27,137,478 29,030,564 +1,593,086
DUMONT 97 19,699 18,729 19,699 +0
DUNDAS 1,402 87,420 144,119 149,681 +62,261
DUNDEE 68 21,200 20,520 21,200 +0
DUNNELL 165 61,112 59,462 61,112 +0
Appendix B: 2014 LGA Estimates

Page 88 Prepared by LMC with data from House Research
League of Minnesota Cities
2011 Population 2013 LGA
2014 LGA
–old law
EAGAN 64,456 0 0 0 +0
EAGLE BEND 532 156,373 151,053 172,137 +15,764
EAGLE LAKE 2,482 510,589 495,634 599,948 +89,359
EAST BETHEL 11,783 0 0 23,469 +23,469
EAST GRAND FORKS 8,590 2,471,550 2,385,650 2,510,643 +39,093
EAST GULL LAKE 992 0 0 0 +0
EASTON 199 31,062 29,072 33,834 +2,772
ECHO 272 70,726 68,006 73,911 +3,185
EDEN PRAIRIE 61,151 0 0 0 +0
EDEN VALLEY 1,046 228,099 217,639 276,644 +48,545
EDGERTON 1,184 293,365 281,525 333,396 +40,031
EDINA 48,262 0 0 0 +0
EFFIE 123 9,800 10,917 13,283 +3,483
EITZEN 242 32,958 31,707 37,749 +4,791
ELBA 155 29,764 29,231 29,764 +0
ELBOW LAKE 1,167 349,082 337,412 388,697 +39,615
ELGIN 1,095 281,551 274,433 320,523 +38,972
ELIZABETH 173 29,650 28,169 34,936 +5,286
ELK RIVER 23,101 0 686,820 225,882 +225,882
ELKO NEW MARKET 4,240 164,986 122,586 206,679 +41,693
ELKTON 141 11,799 10,945 13,618 +1,819
ELLENDALE 691 124,811 119,038 160,349 +35,538
ELLSWORTH 456 161,977 157,417 168,787 +6,810
ELMDALE 116 5,281 4,994 7,947 +2,666
ELMORE 665 216,939 210,289 240,515 +23,576
ELROSA 212 24,938 24,142 29,762 +4,824
ELY 3,473 1,713,366 1,678,636 2,053,883 +340,517
ELYSIAN 657 20,524 15,377 20,524 +0
EMILY 816 0 0 0 +0
EMMONS 388 80,748 76,868 93,587 +12,839
ERHARD 148 25,909 24,946 28,668 +2,759
ERSKINE 504 95,104 99,068 119,203 +24,099
EVAN 84 14,726 14,318 15,198 +472
EVANSVILLE 609 119,255 113,165 146,956 +27,701
EVELETH 3,711 2,186,891 2,149,781 2,524,120 +337,229
EXCELSIOR 2,203 0 0 0 +0
EYOTA 1,995 422,699 409,444 494,543 +71,844
FAIRFAX 1,225 398,946 386,696 439,940 +40,994
FAIRMONT 10,631 3,722,165 3,615,855 3,740,908 +18,743
FALCON HEIGHTS 5,385 310,126 337,752 523,012 +212,886
FARIBAULT 23,409 4,772,748 4,538,658 5,290,238 +517,490
FARMINGTON 21,369 0 258,767 245,317 +245,317
FARWELL 52 14,192 13,672 14,192 +0
FEDERAL DAM 107 0 0 0 +0
FELTON 177 25,659 23,889 29,195 +3,536
FERGUS FALLS 13,103 3,563,824 3,432,794 3,622,946 +59,122
FERTILE 840 259,982 251,582 288,564 +28,582
FIFTY LAKES 390 0 0 0 +0
FINLAYSON 316 34,625 33,107 42,008 +7,383
FISHER 433 70,862 68,293 89,868 +19,006
FLENSBURG 227 20,587 20,627 27,322 +6,735
FLOODWOOD 531 133,152 127,842 151,208 +18,056
FLORENCE 39 9,193 9,976 9,602 +409
FOLEY 2,612 634,131 608,011 725,335 +91,204
2014 LGA
–Ch 143 Change 2011 Population 2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
FORADA 185 0 0 0 +0
FOREST LAKE 18,591 0 0 56,002 +56,002
FORESTON 529 68,533 69,120 92,985 +24,452
FORT RIPLEY 69 0 0 0 +0
FOSSTON 1,521 531,772 516,562 571,827 +40,055
FOUNTAIN 407 61,595 59,121 68,555 +6,960
FOXHOME 117 24,020 22,947 26,225 +2,205
FRANKLIN 503 132,445 127,415 152,057 +19,612
FRAZEE 1,363 429,375 415,745 476,533 +47,158
FREEBORN 301 58,270 57,791 69,220 +10,950
FREEPORT 643 84,947 80,164 108,214 +23,267
FRIDLEY 27,515 759,414 484,264 1,211,004 +451,590
FROST 196 49,882 47,922 52,585 +2,703
FULDA 1,308 402,389 389,309 446,007 +43,618
FUNKLEY 5 141 139 141 +0
GARFIELD 351 35,975 46,330 45,796 +9,821
GARRISON 212 0 0 0 +0
GARVIN 134 35,795 34,455 37,522 +1,727
GARY 212 49,407 47,287 51,976 +2,569
GAYLORD 2,313 768,161 745,031 838,309 +70,148
GEM LAKE 393 0 0 0 +0
GENEVA 552 64,937 62,013 93,001 +28,064
GENOLA 74 547 536 547 +0
GEORGETOWN 131 12,022 11,567 15,936 +3,914
GHENT 367 78,035 74,980 91,294 +13,259
GIBBON 773 216,241 208,511 252,828 +36,587
GILBERT 1,795 685,125 667,175 706,174 +21,049
GILMAN 227 9,574 11,833 17,177 +7,603
GLENCOE 5,621 1,063,153 1,006,943 1,290,925 +227,772
GLENVILLE 638 181,068 174,688 191,967 +10,899
GLENWOOD 2,553 634,282 608,752 665,498 +31,216
GLYNDON 1,410 272,438 286,877 346,889 +74,451
GOLDEN VALLEY 20,427 0 0 219,070 +219,070
GONVICK 285 60,511 57,661 69,371 +8,860
GOOD THUNDER 580 146,720 140,920 163,762 +17,042
GOODHUE 1,184 203,727 233,965 261,658 +57,931
GOODRIDGE 134 22,707 21,367 27,950 +5,243
GOODVIEW 4,057 138,108 141,057 250,835 +112,727
GRACEVILLE 583 186,713 180,883 202,156 +15,443
GRANADA 301 91,663 88,653 95,830 +4,167
GRAND MARAIS 1,356 96,422 82,862 96,422 +0
GRAND MEADOW 1,147 266,391 254,921 316,762 +50,371
GRAND RAPIDS 10,879 963,410 905,765 1,270,377 +306,967
GRANITE FALLS 2,879 717,911 689,121 904,460 +186,549
GRANT 4,134 0 0 0 +0
GRASSTON 158 15,678 17,028 20,552 +4,874
GREEN ISLE 560 53,119 60,731 79,967 +26,848
GREENBUSH 713 220,770 213,640 249,729 +28,959
GREENFIELD 2,786 0 0 0 +0
GREENWALD 222 27,389 26,762 33,043 +5,654
GREENWOOD 688 0 0 0 +0
GREY EAGLE 346 59,124 55,664 68,980 +9,856
GROVE CITY 635 156,743 150,393 185,271 +28,528
GRYGLA 222 42,945 40,725 48,633 +5,688
Appendix B: 2014 LGA Estimates

2013 Law Summaries Prepared by LMC with data from House Research
Page 89
2011 Population 2013 LGA
2014 LGA
–old law
GULLY 63 17,335 16,733 17,335 +0
HACKENSACK 314 0 0 0 +0
HADLEY 62 15,455 15,058 15,455 +0
HALLOCK 971 375,642 365,932 390,592 +14,950
HALMA 58 10,985 10,500 12,433 +1,448
HALSTAD 598 164,085 158,105 182,078 +17,993
HAM LAKE 15,374 0 0 0 +0
HAMBURG 514 58,777 56,324 72,948 +14,171
HAMMOND 118 42,992 41,890 42,992 +0
HAMPTON 689 88,374 87,399 107,524 +19,150
HANCOCK 762 231,189 223,569 263,794 +32,605
HANLEY FALLS 301 72,453 69,443 82,014 +9,561
HANOVER 2,947 63,203 33,733 100,492 +37,289
HANSKA 397 111,632 107,662 120,338 +8,706
HARDING 126 2,049 3,249 6,408 +4,359
HARDWICK 194 45,323 43,383 45,899 +576
HARMONY 1,017 320,299 310,129 339,818 +19,519
HARRIS 1,132 141,539 136,935 171,046 +29,507
HARTLAND 315 48,121 48,000 59,162 +11,041
HASTINGS 22,217 0 63,673 510,111 +510,111
HATFIELD 54 3,830 3,691 3,830 +0
HAWLEY 2,087 538,040 520,101 600,784 +62,744
HAYFIELD 1,342 352,569 339,149 390,126 +37,557
HAYWARD 249 28,981 26,971 34,773 +5,792
HAZEL RUN 62 13,871 13,251 13,871 +0
HECTOR 1,140 294,846 283,446 338,883 +44,037
HEIDELBERG 122 0 0 833 +833
HENDERSON 887 265,687 256,817 287,000 +21,313
HENDRICKS 708 214,826 207,746 241,773 +26,947
HENDRUM 306 57,667 54,607 66,943 +9,276
HENNING 804 251,273 243,233 278,375 +27,102
HENRIETTE 69 10,694 10,682 11,960 +1,266
HERMAN 433 107,927 103,597 116,634 +8,707
HERMANTOWN 9,545 331,873 236,423 355,570 +23,697
HERON LAKE 691 287,970 281,060 295,049 +7,079
HEWITT 265 59,776 57,134 65,974 +6,198
HIBBING 16,313 7,994,316 7,831,186 8,082,401 +88,085
HILL CITY 643 54,550 64,343 90,999 +36,449
HILLMAN 38 2,746 2,599 4,115 +1,369
HILLS 688 140,126 133,733 176,522 +36,396
HILLTOP 781 116,309 111,693 138,621 +22,312
HINCKLEY 1,805 267,164 316,933 329,583 +62,419
HITTERDAL 207 38,852 36,782 43,029 +4,177
HOFFMAN 684 139,624 132,784 176,342 +36,718
HOKAH 576 154,315 148,555 167,109 +12,794
HOLDINGFORD 710 165,544 158,444 195,215 +29,671
HOLLAND 185 46,655 44,805 47,704 +1,049
HOLLANDALE 303 38,035 43,239 50,316 +12,281
HOLLOWAY 90 9,065 8,165 9,065 +0
HOLT 88 15,629 15,060 17,890 +2,261
HOPKINS 17,701 0 50,000 289,907 +289,907
HOUSTON 988 331,011 321,131 353,617 +22,606
HOWARD LAKE 1,978 476,814 457,576 543,979 +67,165
HOYT LAKES 2,017 360,759 340,589 391,193 +30,434
2014 LGA
–Ch 143 Change 2011 Population 2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
HUGO 13,536 0 0 0 +0
HUMBOLDT 45 12,042 11,592 12,302 +260
HUTCHINSON 14,148 1,784,272 1,806,921 2,213,177 +428,905
IHLEN 61 16,654 16,044 16,654 +0
INDEPENDENCE 3,553 0 0 0 +0
INTERNATIONAL FALLS 6,394 3,710,994 3,647,054 3,968,511 +257,517
INVER GROVE HEIGHTS 33,774 0 0 0 +0
IONA 136 37,043 35,683 37,234 +191
IRON JUNCTION 85 12,230 11,847 12,315 +85
IRONTON 574 114,741 109,001 137,845 +23,104
ISANTI 5,286 313,359 416,394 545,474 +232,115
ISLE 765 25,272 21,383 36,767 +11,495
IVANHOE 551 203,179 197,669 213,187 +10,008
JACKSON 3,294 1,086,755 1,053,815 1,290,625 +203,870
JANESVILLE 2,268 724,872 702,192 775,072 +50,200
JASPER 631 182,806 176,496 206,477 +23,671
JEFFERS 368 112,493 108,813 116,128 +3,635
JENKINS 434 0 0 5,387 +5,387
JOHNSON 29 7,000 6,771 7,000 +0
JORDAN 5,694 0 65,493 237,080 +237,080
KANDIYOHI 485 97,952 93,907 114,796 +16,844
KARLSTAD 756 232,848 225,288 260,381 +27,533
KASOTA 670 143,296 138,273 168,055 +24,759
KASSON 6,010 780,209 720,109 982,338 +202,129
KEEWATIN 1,067 343,738 333,068 378,008 +34,270
KELLIHER 264 107,307 104,667 107,307 +0
KELLOGG 450 83,859 80,575 93,910 +10,051
KENNEDY 193 66,764 64,834 66,764 +0
KENNETH 68 10,330 9,650 10,536 +206
KENSINGTON 288 54,270 51,519 60,470 +6,200
KENT 80 20,567 19,767 21,171 +604
KENYON 1,818 466,643 453,930 516,684 +50,041
KERKHOVEN 752 185,283 177,763 217,166 +31,883
KERRICK 64 3,489 3,207 5,352 +1,863
KETTLE RIVER 180 22,510 20,710 27,092 +4,582
KIESTER 499 151,029 146,039 165,486 +14,457
KILKENNY 134 35,924 34,584 35,924 +0
KIMBALL 769 117,942 112,551 146,838 +28,896
KINBRAE 12 201 157 201 +0
KINGSTON 161 12,833 12,442 17,977 +5,144
KINNEY 169 59,925 58,235 59,925 +0
LACRESCENT 4,883 422,847 374,017 531,684 +108,837
LAFAYETTE 500 120,676 115,676 129,923 +9,247
LAKE BENTON 677 198,628 191,858 223,629 +25,001
LAKE BRONSON 225 71,423 69,173 74,541 +3,118
LAKE CITY 5,053 610,347 559,817 748,389 +138,042
LAKE CRYSTAL 2,540 621,727 596,327 705,898 +84,171
LAKE ELMO 8,063 0 0 0 +0
LAKE HENRY 105 6,578 7,813 10,510 +3,932
LAKE LILLIAN 239 33,155 30,765 39,931 +6,776
LAKE PARK 783 231,084 223,254 253,109 +22,025
LAKE SHORE 1,005 0 0 0 +0
LAKE ST CROIX BEACH 1,052 25,673 42,315 66,312 +40,639
LAKE WILSON 248 76,722 74,242 78,109 +1,387
Appendix B: 2014 LGA Estimates

Page 90 Prepared by LMC with data from House Research
League of Minnesota Cities
2011 Population 2013 LGA
2014 LGA
–old law
LAKEFIELD 1,690 614,261 597,361 650,486 +36,225
LAKELAND 1,796 33,574 29,407 47,157 +13,583
LAKELAND SHORES 311 0 0 0 +0
LAKEVILLE 56,534 0 0 0 +0
LAMBERTON 826 287,784 279,524 304,385 +16,601
LANCASTER 338 75,242 71,862 86,599 +11,357
LANDFALL 767 79,977 81,863 96,184 +16,207
LANESBORO 754 204,520 196,980 210,284 +5,764
LAPORTE 108 10,915 10,438 10,915 +0
LAPRAIRIE 662 66,553 63,611 79,908 +13,355
LASALLE 87 16,635 15,966 17,821 +1,186
LASTRUP 104 3,428 3,470 5,849 +2,421
LAUDERDALE 2,398 516,153 499,914 535,092 +18,939
LECENTER 2,506 719,916 694,856 785,602 +65,686
LENGBY 84 21,916 21,076 21,916 +0
LEONARD 41 4,390 4,715 5,661 +1,271
LEONIDAS 52 34,670 34,150 34,670 +0
LEROY 932 296,859 287,539 322,498 +25,639
LESTER PRAIRIE 1,720 425,969 411,871 491,615 +65,646
LESUEUR 4,045 767,922 727,472 910,371 +142,449
LEWISTON 1,613 383,755 369,354 436,421 +52,666
LEWISVILLE 250 67,068 64,568 71,850 +4,782
LEXINGTON 2,078 335,280 322,136 385,298 +50,018
LILYDALE 631 0 0 0 +0
LINDSTROM 4,464 134,663 140,667 281,197 +146,534
LINO LAKES 20,505 0 0 0 +0
LISMORE 227 65,548 63,278 66,891 +1,343
LITCHFIELD 6,721 1,588,853 1,521,643 1,832,138 +243,285
LITTLE CANADA 9,839 195,843 97,453 344,818 +148,975
LITTLE FALLS 8,331 2,089,080 2,005,770 2,435,226 +346,146
LITTLEFORK 646 214,814 208,354 233,888 +19,074
LONG BEACH 337 0 0 0 +0
LONG LAKE 1,775 26,410 18,834 26,410 +0
LONG PRAIRIE 3,445 735,532 701,082 914,704 +179,172
LONGVILLE 154 0 0 0 +0
LONSDALE 3,721 245,346 208,136 384,655 +139,309
LORETTO 652 0 5,743 23,051 +23,051
LOUISBURG 47 7,954 7,676 8,231 +277
LOWRY 296 49,088 46,128 56,203 +7,115
LUCAN 189 49,989 48,099 52,427 +2,438
LUVERNE 4,745 1,194,175 1,146,725 1,349,783 +155,608
LYLE 550 163,174 157,674 179,497 +16,323
LYND 449 55,313 52,136 70,073 +14,760
MABEL 781 223,127 215,317 255,952 +32,825
MADELIA 2,307 860,375 837,305 916,863 +56,488
MADISON 1,542 729,097 713,677 742,726 +13,629
MADISON LAKE 1,033 119,406 112,808 152,986 +33,580
MAGNOLIA 217 43,194 41,968 46,801 +3,607
MAHNOMEN 1,215 446,371 434,221 631,385 +185,014
MAHTOMEDI 7,645 0 0 0 +0
MANCHESTER 54 14,717 14,287 14,717 +0
MANHATTAN BEACH 57 0 0 0 +0
MANKATO 39,628 6,228,727 5,928,727 6,818,135 +589,408
MANTORVILLE 1,205 209,003 198,515 257,866 +48,863
2014 LGA
–Ch 143 Change 2011 Population 2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
MAPLE GROVE 62,436 0 0 0 +0
MAPLE LAKE 2,081 431,190 425,648 479,338 +48,148
MAPLE PLAIN 1,786 240,047 228,007 248,536 +8,489
MAPLETON 1,761 486,318 484,727 548,857 +62,539
MAPLEVIEW 177 50,167 48,397 51,679 +1,512
MAPLEWOOD 38,374 0 0 530,683 +530,683
MARBLE 700 221,504 214,504 241,626 +20,122
MARIETTA 162 50,577 48,957 52,083 +1,506
MARINE ON ST CROIX 688 0 0 0 +0
MARSHALL 13,767 2,110,608 1,972,938 2,451,287 +340,679
MAYER 1,756 266,365 264,551 290,420 +24,055
MAYNARD 363 121,181 117,551 121,270 +89
MAZEPPA 844 158,301 151,366 193,235 +34,934
MCGRATH 79 7,837 9,062 11,189 +3,352
MCGREGOR 390 89,434 85,534 90,174 +740
MCINTOSH 621 199,366 193,156 220,246 +20,880
MCKINLEY 128 51,142 49,862 51,142 +0
MEADOWLANDS 133 21,477 20,625 23,936 +2,459
MEDFORD 1,243 161,120 154,711 201,254 +40,134
MEDICINE LAKE 371 0 0 0 +0
MEDINA 4,916 0 0 0 +0
MEIRE GROVE 180 12,123 14,457 19,881 +7,758
MELROSE 3,622 614,850 578,630 766,363 +151,513
MENAHGA 1,300 281,960 270,881 345,641 +63,681
MENDOTA 204 25,000 24,694 25,000 +0
MENDOTA HEIGHTS 11,098 0 0 0 +0
MENTOR 153 32,824 31,923 35,008 +2,184
MIDDLE RIVER 304 78,955 76,370 85,669 +6,714
MIESVILLE 125 0 0 0 +0
MILACA 2,944 602,629 573,189 755,664 +153,035
MILAN 365 87,281 83,631 98,866 +11,585
MILLERVILLE 105 7,791 7,729 9,595 +1,804
MILLVILLE 184 18,803 17,950 23,292 +4,489
MILROY 251 57,009 54,499 61,096 +4,087
MILTONA 419 34,112 34,513 51,586 +17,474
MINNEAPOLIS 387,873 64,142,268 63,842,268 76,065,485 +11,923,217
MINNEISKA 109 5,781 5,292 5,781 +0
MINNEOTA 1,392 412,603 398,683 459,016 +46,413
MINNESOTA CITY 201 39,186 37,889 39,596 +410
MINNESOTA LAKE 688 128,750 121,870 159,449 +30,699
MINNETONKA 50,046 0 0 0 +0
MINNETONKA BEACH 544 0 0 0 +0
MINNETRISTA 6,450 0 0 0 +0
MIZPAH 56 6,496 6,278 7,984 +1,488
MONTEVIDEO 5,360 1,674,841 1,621,241 1,971,378 +296,537
MONTGOMERY 2,952 628,916 599,396 728,565 +99,649
MONTICELLO 12,840 0 0 0 +0
MONTROSE 2,923 489,481 460,251 568,481 +79,000
MOORHEAD 38,516 6,790,628 6,490,628 7,078,353 +287,725
MOOSE LAKE 2,791 588,789 634,905 767,071 +178,282
MORA 3,557 710,562 674,992 857,795 +147,233
MORGAN 896 292,157 283,197 322,374 +30,217
MORRIS 5,343 2,110,244 2,056,814 2,280,914 +170,670
MORRISTOWN 986 230,442 221,601 276,352 +45,910
Appendix B: 2014 LGA Estimates

2013 Law Summaries Prepared by LMC with data from House Research
Page 91
2011 Population 2013 LGA
2014 LGA
–old law
MORTON 406 131,431 127,371 137,148 +5,717
MOTLEY 673 131,075 125,820 155,950 +24,875
MOUND 9,084 0 0 301,146 +301,146
MOUNDS VIEW 12,136 232,078 650,216 597,006 +364,928
MOUNTAIN IRON 2,859 1,156,268 1,127,678 1,280,033 +123,765
MOUNTAIN LAKE 2,111 807,450 786,340 863,255 +55,805
MURDOCK 273 69,561 66,831 69,561 +0
MYRTLE 47 11,424 10,962 11,424 +0
NASHUA 68 0 0 0 +0
NASHWAUK 982 403,480 393,660 403,480 +0
NASSAU 72 17,638 17,070 17,638 +0
NELSON 183 23,990 23,198 27,215 +3,225
NERSTRAND 294 24,733 31,489 30,488 +5,755
NEVIS 393 41,623 38,039 53,935 +12,312
NEW AUBURN 451 106,481 102,869 121,770 +15,289
NEW BRIGHTON 21,496 0 729,166 493,111 +493,111
NEW GERMANY 374 11,743 10,792 15,815 +4,072
NEW HOPE 20,486 41,843 158,844 532,795 +490,952
NEW LONDON 1,260 274,860 262,991 308,291 +33,431
NEW MUNICH 322 69,686 67,219 72,942 +3,256
NEW PRAGUE 7,351 515,478 451,572 770,851 +255,373
NEW RICHLAND 1,214 325,599 313,459 377,596 +51,997
NEW TRIER 112 779 695 2,483 +1,704
NEW ULM 13,467 4,111,762 3,977,092 4,222,706 +110,944
NEW YORK MILLS 1,195 342,150 330,200 376,742 +34,592
NEWFOLDEN 374 75,781 72,041 88,943 +13,162
NEWPORT 3,449 588,876 554,386 631,462 +42,586
NICOLLET 1,091 179,752 172,480 225,087 +45,335
NIELSVILLE 89 21,942 21,052 23,544 +1,602
NIMROD 71 2,542 2,457 4,936 +2,394
NISSWA 1,979 0 0 0 +0
NORCROSS 70 16,497 15,797 16,497 +0
NORTH BRANCH 10,122 146,132 516,419 537,119 +390,987
NORTH MANKATO 13,426 1,358,107 1,223,847 1,558,998 +200,891
NORTH OAKS 4,539 0 0 0 +0
NORTH ST PAUL 11,485 1,863,726 1,748,876 1,863,726 +0
NORTHFIELD 20,454 2,243,397 2,143,003 2,802,295 +558,898
NORTHOME 202 65,984 63,964 65,984 +0
NORTHROP 223 45,444 43,809 51,981 +6,537
NORWOOD YOUNG AMERICA 3,558 203,574 167,994 345,508 +141,934
NOWTHEN 4,469 0 0 11,565 +11,565
OAK GROVE 8,045 0 200,000 81,551 +81,551
OAK PARK HEIGHTS 4,593 0 0 0 +0
OAKDALE 27,538 0 0 106,030 +106,030
ODESSA 136 37,973 36,613 39,155 +1,182
ODIN 106 24,822 23,835 25,565 +743
OGEMA 192 26,614 24,827 33,585 +6,971
OGILVIE 362 123,218 119,598 123,218 +0
OKABENA 189 49,544 47,654 52,256 +2,712
OKLEE 441 107,276 102,866 122,694 +15,418
OLIVIA 2,479 706,366 702,369 772,694 +66,328
ONAMIA 875 239,116 230,650 260,942 +21,826
ORMSBY 131 24,183 23,113 26,389 +2,206
ORONO 7,438 0 0 0 +0
2014 LGA
–Ch 143 Change 2011 Population 2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
ORONOCO 1,303 28,182 39,412 66,651 +38,469
ORR 268 41,927 39,247 47,502 +5,575
ORTONVILLE 1,896 703,420 684,460 734,798 +31,378
OSAKIS 1,742 380,867 363,447 434,105 +53,238
OSLO 330 74,947 71,647 82,194 +7,247
OSSEO 2,430 634,438 611,217 634,438 +0
OSTRANDER 254 52,825 50,886 55,718 +2,893
OTSEGO 13,816 0 278,035 112,705 +112,705
OTTERTAIL 576 0 0 0 +0
OWATONNA 25,572 3,153,124 3,143,795 3,935,875 +782,751
PALISADE 163 14,295 13,561 18,675 +4,380
PARK RAPIDS 3,708 314,126 316,584 459,585 +145,459
PARKERS PRAIRIE 1,011 225,671 215,561 255,925 +30,254
PAYNESVILLE 2,434 679,593 655,253 716,093 +36,500
PEASE 241 19,424 23,427 28,856 +9,432
PELICAN RAPIDS 2,476 908,614 883,854 953,189 +44,575
PEMBERTON 248 25,203 24,295 33,030 +7,827
PENNOCK 509 109,031 104,455 129,109 +20,078
PEQUOT LAKES 2,176 59,996 93,220 72,385 +12,389
PERHAM 2,995 459,137 429,187 583,097 +123,960
PERLEY 92 22,100 21,212 22,100 +0
PETERSON 197 45,675 43,995 45,675 +0
PIERZ 1,401 362,938 351,943 409,776 +46,838
PILLAGER 466 124,543 120,086 124,651 +108
PINE CITY 3,119 426,553 395,363 550,707 +124,154
PINE ISLAND 3,260 498,960 466,360 578,190 +79,230
PINE RIVER 940 247,854 238,454 273,999 +26,145
PINE SPRINGS 408 0 0 0 +0
PIPESTONE 4,308 1,535,857 1,492,777 1,905,268 +369,411
PLAINVIEW 3,348 544,648 511,168 696,828 +152,180
PLATO 319 22,094 25,071 31,643 +9,549
PLUMMER 296 49,211 46,251 56,166 +6,955
PLYMOUTH 71,263 0 0 0 +0
PORTER 180 35,295 33,495 35,295 +0
PRESTON 1,322 484,980 471,760 493,986 +9,006
PRINCETON 4,698 612,831 575,900 813,065 +200,234
PRINSBURG 496 75,659 70,699 89,666 +14,007
PRIOR LAKE 23,010 0 0 0 +0
PROCTOR 3,058 955,226 924,646 1,019,424 +64,198
QUAMBA 123 15,487 15,206 19,322 +3,835
RACINE 454 61,097 59,604 72,805 +11,708
RAMSEY 23,865 0 281,656 91,376 +91,376
RANDALL 651 125,534 128,847 162,361 +36,827
RANDOLPH 440 11,015 13,810 22,803 +11,788
RANIER 609 21,685 20,439 45,478 +23,793
RAYMOND 761 203,926 196,316 234,241 +30,315
RED LAKE FALLS 1,429 546,204 531,914 582,707 +36,503
RED WING 16,432 619,586 666,960 1,619,586 +1,000,000
REDWOOD FALLS 5,248 1,075,270 1,256,032 1,398,367 +323,097
REGAL 33 2,115 2,095 2,115 +0
REMER 367 56,366 53,084 64,811 +8,445
RENVILLE 1,272 408,605 395,885 444,169 +35,564
REVERE 95 20,990 20,040 21,441 +451
RICE 1,279 146,674 144,703 167,930 +21,256
Appendix B: 2014 LGA Estimates

Page 92 Prepared by LMC with data from House Research
League of Minnesota Cities
2011 Population 2013 LGA
2014 LGA
–old law
RICHFIELD 35,376 1,218,346 918,346 1,937,871 +719,525
RICHMOND 1,430 237,322 236,620 289,004 +51,682
RICHVILLE 95 14,049 13,742 15,480 +1,431
RIVERTON 117 5,562 5,060 6,428 +866
ROBBINSDALE 14,014 1,170,849 1,150,446 1,619,070 +448,221
ROCHESTER 107,630 5,101,571 4,801,571 6,930,284 +1,828,713
ROCK CREEK 1,624 133,506 153,806 208,584 +75,078
ROCKFORD 4,321 309,689 284,990 453,283 +143,594
ROCKVILLE 2,466 105,568 211,959 168,090 +62,522
ROGERS 11,314 0 0 97,132 +97,132
ROLLINGSTONE 657 135,555 131,078 155,259 +19,704
ROOSEVELT 150 18,964 18,561 23,806 +4,842
ROSCOE 103 21,702 20,918 21,702 +0
ROSE CREEK 395 71,101 67,293 84,231 +13,130
ROSEAU 2,622 569,076 542,856 649,522 +80,446
ROSEMOUNT 22,139 0 0 0 +0
ROSEVILLE 33,807 0 0 224,929 +224,929
ROTHSAY 490 116,916 112,016 129,550 +12,634
ROUND LAKE 374 119,605 115,865 121,131 +1,526
ROYALTON 1,241 209,265 231,349 277,371 +68,106
RUSH CITY 3,091 620,496 589,586 781,842 +161,346
RUSHFORD 1,749 559,018 541,528 584,269 +25,251
RUSHFORD VILLAGE 808 43,944 40,797 43,944 +0
RUSHMORE 340 101,319 97,919 106,296 +4,977
RUSSELL 336 81,277 77,917 87,987 +6,710
RUTHTON 239 80,121 77,731 80,121 +0
RUTLEDGE 227 3,257 3,225 10,565 +7,308
SABIN 537 73,496 70,334 95,686 +22,190
SACRED HEART 541 192,791 187,381 204,939 +12,148
SAINT ANTHONY 8,333 0 0 473,110 +473,110
SAINT BONIFACIUS 2,287 294,333 287,150 339,934 +45,601
SAINT LOUIS PARK 45,505 0 0 458,807 +458,807
SANBORN 337 121,650 118,280 121,650 +0
SANDSTONE 2,848 869,374 840,894 1,038,025 +168,651
SARGEANT 61 12,070 11,774 12,070 +0
SARTELL 15,963 3,554 85,723 110,662 +107,108
SAUK CENTRE 4,325 966,004 922,754 1,099,844 +133,840
SAUK RAPIDS 12,796 1,579,706 1,585,934 1,912,481 +332,775
SAVAGE 27,147 0 0 0 +0
SCANDIA 3,967 0 0 0 +0
SCANLON 991 175,093 165,183 203,426 +28,333
SEAFORTH 86 16,402 15,542 17,391 +989
SEBEKA 708 169,550 162,470 209,429 +39,879
SEDAN 43 7,025 6,807 7,025 +0
SHAFER 1,047 150,254 167,781 209,979 +59,725
SHAKOPEE 37,652 0 0 0 +0
SHELLY 190 65,258 63,358 65,258 +0
SHERBURN 1,131 291,361 288,633 346,993 +55,632
SHEVLIN 178 24,244 24,461 30,318 +6,074
SHOREVIEW 25,118 0 0 0 +0
SHOREWOOD 7,312 0 0 0 +0
SILVER BAY 1,869 450,020 431,330 498,608 +48,588
SILVER LAKE 835 168,619 160,269 208,207 +39,588
SKYLINE 285 4,344 4,155 10,982 +6,638
2014 LGA
–Ch 143 Change 2011 Population 2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
SLAYTON 2,147 762,656 741,186 799,335 +36,679
SLEEPY EYE 3,598 1,274,191 1,238,211 1,411,867 +137,676
SOBIESKI 197 11,997 11,838 18,511 +6,514
SOLWAY 98 4,975 6,375 9,073 +4,098
SOUTH HAVEN 189 32,626 30,908 34,495 +1,869
SOUTH ST PAUL 20,275 1,663,720 1,599,824 2,290,358 +626,638
SPICER 1,164 45,440 38,454 57,262 +11,822
SPRING GROVE 1,324 367,822 354,582 411,369 +43,547
SPRING HILL 85 2,131 3,446 5,191 +3,060
SPRING LAKE PARK 6,432 0 258,896 291,257 +291,257
SPRING PARK 1,686 0 0 0 +0
SPRING VALLEY 2,474 797,702 774,585 860,778 +63,076
SPRINGFIELD 2,144 875,030 853,590 911,482 +36,452
SQUAW LAKE 109 9,160 8,688 10,726 +1,566
ST ANTHONY 86 7,166 6,919 9,655 +2,489
ST AUGUSTA 3,358 10,963 0 55,216 +44,253
ST CHARLES 3,737 757,339 719,969 860,980 +103,641
ST CLAIR 871 182,675 176,124 231,868 +49,193
ST CLOUD 65,633 10,081,386 9,781,386 11,728,245 +1,646,859
ST FRANCIS 7,255 80,929 352,507 313,455 +232,526
ST HILAIRE 283 68,008 65,766 69,996 +1,988
ST JAMES 4,597 1,336,057 1,290,087 1,565,697 +229,640
ST JOSEPH 6,579 645,151 579,361 873,161 +228,010
ST LEO 99 16,916 16,272 19,623 +2,707
ST MARTIN 307 42,909 41,820 46,121 +3,212
ST MARY’S POINT 370 0 0 0 +0
ST MICHAEL 16,536 0 415,766 239,129 +239,129
ST PAUL 286,367 50,320,488 50,020,488 60,423,748 +10,103,260
ST PAUL PARK 5,304 143,307 205,883 459,542 +316,235
ST PETER 11,459 2,616,126 2,501,536 2,908,494 +292,368
ST ROSA 68 0 0 0 +0
ST STEPHEN 853 105,818 101,999 146,645 +40,827
ST VINCENT 61 21,076 20,466 21,076 +0
STACY 1,456 235,912 228,975 281,738 +45,826
STAPLES 2,976 957,573 927,813 1,120,083 +162,510
STARBUCK 1,297 316,109 303,139 350,548 +34,439
STEEN 179 33,495 32,594 37,680 +4,185
STEPHEN 658 193,225 186,645 219,586 +26,361
STEWART 567 131,959 126,289 153,700 +21,741
STEWARTVILLE 5,972 599,307 541,555 852,606 +253,299
STILLWATER 18,299 174,580 290,641 568,571 +393,991
STOCKTON 690 154,893 151,729 175,912 +21,019
STORDEN 216 68,812 66,652 68,812 +0
STRANDQUIST 69 17,869 17,179 18,785 +916
STRATHCONA 44 3,915 4,215 5,896 +1,981
STURGEON LAKE 437 28,838 36,654 47,793 +18,955
SUNBURG 100 25,134 24,134 25,365 +231
SUNFISH LAKE 521 0 0 0 +0
SWANVILLE 349 85,817 82,327 90,257 +4,440
TACONITE 359 92,714 89,124 92,714 +0
TAMARACK 98 15,076 14,828 16,030 +954
TAOPI 58 9,097 8,866 9,682 +585
TAUNTON 136 43,070 42,076 43,070 +0
TAYLORS FALLS 974 156,385 149,408 170,970 +14,585
Appendix B: 2014 LGA Estimates

2013 Law Summaries Prepared by LMC with data from House Research
Page 93
2011 Population 2013 LGA
2014 LGA
–old law
TENSTRIKE 205 2,960 2,893 6,041 +3,081
THIEF RIVER FALLS 8,587 2,418,906 2,333,036 2,896,081 +477,175
THOMSON 157 9,022 8,204 9,022 +0
TINTAH 63 11,846 11,264 12,469 +623
TONKA BAY 1,477 0 0 0 +0
TOWER 497 80,156 75,186 87,685 +7,529
TRACY 2,178 859,170 837,390 908,237 +49,067
TRAIL 46 2,350 2,169 2,350 +0
TRIMONT 742 218,148 210,728 247,829 +29,681
TROMMALD 98 6,968 6,425 6,968 +0
TROSKY 85 18,940 18,563 18,940 +0
TRUMAN 1,107 392,748 381,678 415,713 +22,965
TURTLE RIVER 80 0 0 0 +0
TWIN LAKES 152 26,141 24,621 29,319 +3,178
TWIN VALLEY 823 269,231 261,001 299,306 +30,075
TWO HARBORS 3,728 1,107,828 1,070,548 1,457,801 +349,973
TYLER 1,130 387,654 376,354 421,568 +33,914
ULEN 553 138,006 132,476 144,691 +6,685
UNDERWOOD 339 70,902 67,512 75,203 +4,301
UPSALA 428 64,069 60,434 77,515 +13,446
URBANK 54 6,744 6,514 7,298 +554
UTICA 290 30,803 29,888 37,985 +7,182
VADNAIS HEIGHTS 12,393 0 266,028 24,635 +24,635
VERGAS 332 30,206 28,986 33,071 +2,865
VERMILLION 420 5,649 5,346 15,185 +9,536
VERNDALE 601 130,357 124,575 161,102 +30,745
VERNON CENTER 331 66,020 63,351 67,233 +1,213
VESTA 319 82,326 79,136 89,280 +6,954
VICTORIA 7,554 0 0 0 +0
VIKING 108 18,592 17,512 21,717 +3,125
VILLARD 250 36,658 34,476 41,425 +4,767
VINING 78 9,042 8,442 9,987 +945
VIRGINIA 8,685 4,062,905 3,976,055 4,930,304 +867,399
WABASHA 2,516 584,751 559,591 594,369 +9,618
WABASSO 693 183,887 176,957 210,318 +26,431
WACONIA 10,833 0 0 76,518 +76,518
WADENA 4,014 1,191,075 1,150,935 1,486,209 +295,134
WAHKON 207 0 0 0 +0
WAITE PARK 6,714 0 0 0 +0
WALDORF 230 41,621 39,321 46,872 +5,251
WALKER 925 79,001 69,751 79,001 +0
WALNUT GROVE 871 225,413 236,404 264,715 +39,302
WALTERS 72 18,983 18,263 20,063 +1,080
WALTHAM 151 33,076 31,566 33,295 +219
WANAMINGO 1,084 182,565 183,147 227,211 +44,646
WANDA 83 22,194 21,433 22,781 +587
WARBA 178 12,403 11,849 13,524 +1,121
WARREN 1,563 561,156 545,526 603,251 +42,095
WARROAD 1,768 732,836 715,156 882,836 +150,000
WASECA 9,368 2,273,651 2,179,971 2,617,884 +344,233
WATERTOWN 4,215 173,368 131,218 299,613 +126,245
WATERVILLE 1,869 438,284 419,594 472,253 +33,969
WATKINS 957 251,433 243,184 285,955 +34,522
WATSON 203 59,458 57,428 62,711 +3,253
2014 LGA
–Ch 143 Change 2011 Population 2013 LGA
2014 LGA
–old law
2014 LGA
–Ch 143
Change
WAUBUN 403 93,242 90,187 107,486 +14,244
WAVERLY 1,371 82,979 144,470 143,685 +60,706
WAYZATA 3,720 0 0 0 +0
WELCOME 683 216,934 210,104 217,709 +775
WELLS 2,338 893,883 870,503 927,216 +33,333
WENDELL 166 34,022 32,362 35,761 +1,739
WEST CONCORD 785 261,011 253,161 283,647 +22,636
WEST ST PAUL 19,605 773,763 577,713 1,153,324 +379,561
WEST UNION 110 6,713 7,713 11,833 +5,120
WESTBROOK 739 230,048 222,658 259,730 +29,682
WESTPORT 56 5,951 5,857 7,368 +1,417
WHALAN 63 8,001 7,371 8,001 +0
WHEATON 1,425 562,909 548,659 581,818 +18,909
WHITE BEAR LAKE 23,820 1,532,448 1,294,248 1,532,448 +0
WILDER 60 16,106 15,506 16,106 +0
WILLERNIE 508 75,922 73,860 78,239 +2,317
WILLIAMS 190 41,672 39,772 43,738 +2,066
WILLMAR 19,600 4,052,790 3,856,790 4,439,703 +386,913
WILLOW RIVER 414 45,572 43,725 58,702 +13,130
WILMONT 337 86,327 82,957 92,678 +6,351
WILTON 218 7,670 7,646 14,127 +6,457
WINDOM 4,649 1,202,917 1,156,427 1,419,013 +216,096
WINGER 220 33,075 31,530 40,385 +7,310
WINNEBAGO 1,435 503,310 488,960 524,076 +20,766
WINONA 27,603 9,162,003 8,885,973 9,699,955 +537,952
WINSTED 2,348 547,848 559,915 628,517 +80,669
WINTHROP 1,400 393,587 379,587 413,497 +19,910
WINTON 170 24,869 29,743 27,875 +3,006
WOLF LAKE 59 8,042 8,006 9,654 +1,612
WOLVERTON 142 24,318 22,898 27,029 +2,711
WOOD LAKE 434 108,208 103,868 119,766 +11,558
WOODBURY 63,143 0 0 0 +0
WOODLAND 437 0 0 0 +0
WOODSTOCK 125 32,442 31,192 32,906 +464
WORTHINGTON 12,829 2,705,107 2,576,817 3,109,564 +404,457
WRENSHALL 403 42,399 39,200 49,695 +7,296
WRIGHT 130 7,938 7,494 11,153 +3,215
WYKOFF 444 118,215 113,775 126,862 +8,647
WYOMING 7,796 0 0 170,783 +170,783
ZEMPLE 93 742 682 3,552 +2,810
ZIMMERMAN 5,235 235,842 360,516 445,571 +209,729
ZUMBRO FALLS 180 34,610 33,077 35,688 +1,078
ZUMBROTA 3,267 426,975 394,305 552,668 +125,693
TOTALS 4,371,612 427,494,640 426,438,011 507,598,012 +80,103,372
Appendix B: 2014 LGA Estimates

League of Minnesota Cities Intergovernmental Relations Department
The League’s Intergovernmental Relations (IGR) staff work on legislative issues that matter to cities. Feel free to
contact our IGR staff members with any questions, concerns, or suggestions regarding legislative issues.
IGR staff members and legislative issues:
Gary Carlson
Intergovernmental Relations Director
(651) 281-1255
gcarlson@lmc.org
www.twitter.com/garyncarlson
Legislative issues:
• Aid to cities
• Civil liability
• Pensions and retirement
• Property tax system
• Public finance
Heather Cederholm
Intergovernmental Relations Liaison
(651) 281-1256
hcederholm@lmc.org
www.twitter.com/hrceder
Legislative issues:
• Housing
• Grassroots member advocacy
• Legislative appointments
• Legislative listservs
• Libraries
• Policy committees
• Policy development process
• Sustainable development
• Tax increment financing (TIF)
Anne Finn
Assistant Intergovernmental Relations Director
(651) 281-1263
afinn@lmc.org
www.twitter.com/annemfinn
Legislative issues:
• Emergency management
• Insurance
• Pensions and retirement
• Personnel
• Public safety
• State bonding
• Transportation
Patrick Hynes
Intergovernmental Relations Representative
(651) 281-1260
phynes@lmc.org
www.twitter.com/PJHynes2
Legislative issues:
• Building codes
• Civil liability
• Data practices
• Economic development
• Land use, zoning, and annexation
• Pensions and retirement
• Property tax system
• Public finance
• Tax-increment financing (TIF)
Craig Johnson
Intergovernmental Relations Representative
(651) 281-1259
cjohnson@lmc.org
www.twitter.com/cajohnson_1
Legislative issues:
• Energy
• Environment
• Land use and annexation
• Local/tribal relations
• State bonding
• Sustainable development
• Utilities billing
• Wastewater, drinking water, and
stormwater
Ann Lindstrom
Intergovernmental Relations Representative
(651) 281-1261
alindstrom@lmc.org
www.twitter.com/AnnRL
Legislative issues:
• Economic development and redevelopment
• Elections
• Government redesign
• Public safety
• Regulated services and industries
Laura Ziegler
Intergovernmental Relations Liaison
(651) 281-1267
lziegler@lmc.org
www.twitter.com/laurahziegler
Legislative issues:
• Broadband
• Elections
• Grassroots member advocacy
• Legislative appointments
• Legislative listservs
• Policy committees
• Policy development process
• Transportation
• Underground locating
2013 Law Summaries Page 95

League of Minnesota Cities
145 University Avenue West
St. Paul, MN 55103-2044
TEL: (651) 281-1200
(800) 925-1122
TDD: (651) 281-1290
FAX: (651) 281-1299
WEB: www.lmc.org