Journal of the House - 70th Day - Thursday, March 17, 2016

A quorum was present.

Atkins, Knoblach, Uglem, Wagenius and Wills were excused.

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

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REPORTS OF STANDING COMMITTEES AND DIVISIONS

Kelly from the Committee on Transportation Policy and Finance to which was referred:

H. F. No. 459, A bill for an act relating to capital investment; appropriating money for the port development assistance program; authorizing the sale and issuance of state bonds.

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

The report was adopted.

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

H. F. No. 1066, A bill for an act relating to telecommunications; providing for competitive market regulation for certain local exchange carriers; proposing coding for new law in Minnesota Statutes, chapter 237.

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

The report was adopted.

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

H. F. No. 1586, A bill for an act relating to commerce; prohibiting assertions of patent infringement in bad faith; authorizing a court to consider certain factors as evidence of whether an assertion of patent infringement in bad faith or good faith has been made; providing enforcement; defining certain terms; proposing coding for new law in Minnesota Statutes, chapter 325D.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [325D.72] BAD FAITH ASSERTIONS OF PATENT INFRINGEMENT.

Subdivision 1. Definition; end user. For purposes of this section, "end user" means a person, whether an individual, business, or financial institution, that purchases, rents, leases, or otherwise obtains a product, service, or technology in the commercial market that is not for resale and that is, or later becomes, the subject of a patent infringement assertion due to the person's use of the product, service, or technology.

Subd. 2. Bad faith claim of patent infringement prohibited. (a) A person may not send to an end user located or doing business in this state a written or electronic communication that is a bad faith claim of patent infringement.

(b) A communication is a bad faith claim of patent infringement if the communication includes a claim that the end user or a person affiliated with the end user has infringed a patent and is liable for that infringement and:

(1) the communication falsely states that the sender has filed a lawsuit in connection with the claim;

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(2) the sender or a person the sender represents does not have a current right to license the patent to or enforce the patent against the end user;

(3) the patent has been held invalid or unenforceable in a final judgment or administrative decision;

(4) the infringing activity alleged in the communication occurred after the patent expired; or

(5) the communication is likely to materially mislead a reasonable end user because the communication does not contain information sufficient to inform the end user of:

(i) the identity of the person asserting the claim;

(ii) the patent that is alleged to have been infringed; and

(iii) at least one product, service, or technology obtained by the end user that is alleged to infringe the patent or the activity of the end user that is alleged to infringe the patent.

Subd. 3. Enforcement by attorney general; injunction and civil penalty. If the attorney general believes that a person has violated or is violating this section, the attorney general may bring an action on behalf of the state to enjoin the person from violating this section. In addition to seeking an injunction, the attorney general may request and the court may order any other relief that may be in the public interest, including:

(1) the imposition of a civil penalty in an amount not to exceed $50,000 for each violation of subdivision 2;

(2) an order requiring reimbursement to this state for the reasonable value of investigating and prosecuting a violation of subdivision 2; and

(3) an order requiring restitution to a victim for legal and professional expenses related to the violation.

Subd. 4. Construction; application. (a) This section shall not be construed to limit the rights and remedies available to the state or another person under any other law or alter or restrict the attorney general's authority under other law with regard to conduct involving claims of patent infringement. This section shall not prohibit a person who owns or has a right to license or enforce a patent from notifying others of the person's ownership or right; offering the patent to others for license or sale; notifying any person of the person's infringement of the patent as provided by United States Code, title 35, section 287; or seeking compensation for past or present infringement of the patent or for a license to the patent. This section shall not be construed to apply to a person who has demonstrated good faith business practices in previous efforts to enforce the patent, or a substantially similar patent, or who has successfully enforced the patent, or a substantially similar patent, through litigation.

(b) This section shall not apply to any written or electronic communication:

(1) sent by any owner of a patent who has engaged in substantial research, commercial development, production, manufacturing, processing, or delivery of products or materials related to the patent or substantially similar patents;

(2) sent by any institution of higher education;

(3) sent by a charitable institution under section 501(c)(3) of the Internal Revenue Code, and those within its control group as defined therein;

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(4) sent by any technology transfer organization whose primary purpose is to facilitate the commercialization of technology developed by an institution of higher education or charitable institution under section 501(c)(3) of the Internal Revenue Code, and those within its control group as defined therein; or

(5) relating to a demand or assertion of patent infringement that arises under United States Code, title 35, section 271(e)(2); United States Code, title 21, section 355; or United States Code, title 42, section 262, and any civil action including such a demand or assertion.

Subd. 5. No private cause of action. This section does not create a private cause of action for a violation of subdivision 2."

Delete the title and insert:

"A bill for an act relating to commerce; prohibiting bad faith assertions of patent infringements; providing enforcement; proposing coding for new law in Minnesota Statutes, chapter 325D."

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

The report was adopted.

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

H. F. No. 2497, A bill for an act relating to local government; regulating zoning of temporary family health care dwellings; proposing coding for new law in Minnesota Statutes, chapters 394; 462.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 2014, section 144D.01, subdivision 4, is amended to read:

Subd. 4. Housing with services establishment or establishment. (a) "Housing with services establishment" or "establishment" means:

(1) an establishment providing sleeping accommodations to one or more adult residents, at least 80 percent of which are 55 years of age or older, and offering or providing, for a fee, one or more regularly scheduled health‑related services or two or more regularly scheduled supportive services, whether offered or provided directly by the establishment or by another entity arranged for by the establishment; or

(2) an establishment that registers under section 144D.025.

(b) Housing with services establishment does not include:

(1) a nursing home licensed under chapter 144A;

(2) a hospital, certified boarding care home, or supervised living facility licensed under sections 144.50 to 144.56;

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(3) a board and lodging establishment licensed under chapter 157 and Minnesota Rules, parts 9520.0500 to 9520.0670, 9525.0215 to 9525.0355, 9525.0500 to 9525.0660, or 9530.4100 to 9530.4450, or under chapter 245D;

(4) a board and lodging establishment which serves as a shelter for battered women or other similar purpose;

(5) a family adult foster care home licensed by the Department of Human Services;

(6) private homes in which the residents are related by kinship, law, or affinity with the providers of services;

(7) residential settings for persons with developmental disabilities in which the services are licensed under Minnesota Rules, parts 9525.2100 to 9525.2140, or applicable successor rules or laws;

(8) a home-sharing arrangement such as when an elderly or disabled person or single-parent family makes lodging in a private residence available to another person in exchange for services or rent, or both;

(9) a duly organized condominium, cooperative, common interest community, or owners' association of the foregoing where at least 80 percent of the units that comprise the condominium, cooperative, or common interest community are occupied by individuals who are the owners, members, or shareholders of the units; or

(10) services for persons with developmental disabilities that are provided under a license according to Minnesota Rules, parts 9525.2000 to 9525.2140 in effect until January 1, 1998, or under chapter 245D; or

(11) a temporary family health care dwelling as defined in sections 394.307 and 462.3593.

Sec. 2. [394.307] ZONING OF TEMPORARY FAMILY HEALTH CARE DWELLING.

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

(b) "Caregiver" means an individual 18 years of age or older who:

(1) provides care for a mentally or physically impaired person, and

(2) is a relative, legal guardian, or health care agent of the mentally or physically impaired person for whom the individual is caring.

(d) "Relative" means a spouse, parent, child, grandchild, sibling, uncle, aunt, nephew, or niece of the mentally or physically impaired person. Relative includes half, step, and in-law relationships.

(e) "Mentally or physically impaired person" means a person who is a resident of this state and who requires assistance with two or more instrumental activities of daily living as certified in writing by a physician licensed to practice in this state.

(f) "Temporary family health care dwelling" means a mobile residential dwelling providing an environment facilitating a caregiver's provision of care for a mentally or physically impaired person that meets the requirements of subdivision 2.

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Subd. 2. Temporary family health care dwelling requirements. (a) A temporary family health care dwelling must:

(1) be primarily assembled at a location other than its site of installation;

(2) be limited to one occupant who must be a mentally or physically impaired person;

(3) be no more than 300 gross square feet;

(4) not be placed on a permanent foundation;

(5) be universally designed and meet state-recognized accessibility standards;

(6) provide access to water, sewer, and electric utilities either by connecting to the utilities that are serving the principal dwelling on the lot or by other comparable means;

(7) have exterior materials that are compatible in composition, appearance, and durability to the exterior materials used in standard residential construction;

(8) have a minimum insulation rating of R-15;

(9) be able to be installed, removed, and transported by a one-ton pickup truck as defined in section 168.002, subdivision 21b;

(10) be built to American National Standards Institute Code 119.2; and

(11) be equipped with a backflow check valve.

Subd. 3. County requirements. (a) A county must consider a temporary family health care dwelling as a permitted accessory use in any single-family residential zoning district on lots zoned for single-family detached dwellings, if the temporary family health care dwelling is located on property where a caregiver or relative resides. A county must not require a conditional use permit or interim use permit for a temporary family health care dwelling, unless required for other accessory use structures. A temporary family health care dwelling must comply with all setback requirements that apply to the primary structure and with any maximum floor area ratio limitations that may apply to the primary structure. Only one temporary health care dwelling is allowed on a lot.

(b) Prior to installing a temporary family health care dwelling, a caregiver or relative must first obtain a permit from the county. The permit application must include, at a minimum:

(1) the name, address, and telephone number of the primary caregiver who is responsible for the care of the mentally or physically impaired person and the signature of the primary caregiver;

(2) proof of the provider network from which the mentally or physically impaired person may receive respite care, primary care, or remote patient monitoring services; and

(3) an executed contract for septic service management or other proof of adequate septic service management.

(c) Unless otherwise provided by ordinance, the county may charge a fee of up to $100 for the initial permit and a renewal fee of up to $50. The initial permit is valid for six months. The applicant may renew the permit once for a period of time negotiated between the applicant and the county. The county may not withhold an initial permit if the applicant provides proof of compliance with this section. The county may require that the applicant provide evidence of compliance with this section as long as the temporary family health care dwelling remains on the

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property. The county may inspect the temporary family health care dwelling at reasonable times convenient to the caregiver to determine if the dwelling is occupied and is meeting the requirements of this section. The county may require, by ordinance, that the applicant submit a certification from a doctor that the mentally or physically impaired person needs assistance with two or more instrumental activities of daily living.

(d) Unless otherwise provided, a temporary family health care dwelling installed under this section must comply with all applicable state law, local ordinances, and other requirements, as if the temporary family health care dwelling were permanent real property.

(e) Any temporary family health care dwelling installed pursuant to this section must be removed within 60 days after the mentally or physically impaired person is no longer receiving or is no longer in need of the assistance provided for in this section.

(f) The county may revoke the permit granted pursuant to paragraph (d) if the permit holder violates any requirement of this section. If the county revokes a permit, the permit holder must be allowed 60 days from the date of revocation to remove the temporary family health care dwelling.

(g) Temporary family health care dwellings must be taxed on proper application of chapter 168.

Sec. 3. [462.3593] ZONING OF TEMPORARY FAMILY HEALTH CARE DWELLING.