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2012 Legislative Summary

2012 LEGISLATIVE SUMMARY

TAXES/CREDITS/AIDS/BUDGET

• Budget: A $1.1 billion dollar deficit is projected for the next biennium.
• Corporate tax cuts: Vetoed—a measure that permanently froze the state business property tax levy and provided other business tax cuts, partially paid for by drawing down the budget reserve and increasing the projected deficit in the next biennium by $145 million. The proposal provided no significant tax relief to homeowners, renters, farmers, seniors or others. A second, similar but scaled back proposal that added $73 million to the deficit projected for the next biennium was also vetoed.
• Permanent homeowner property tax relief: Not enacted. No restoration of the Homestead Market Value Credit (MVC), which was eliminated last year. The MVC was one way the state helped provide homeowners property tax relief.
• Targeted property tax relief program: For taxes payable in 2012 only, the state will refund 90 percent of the amount that any homeowner's tax increased by more than 12 percent over the previous year’s amount, provided that the increase was more than $100. Current law provides for a refund of 60 percent of that amount.
• LGA: Froze pay 2013 city LGA payments at: (1) 100% of pay 2012 amounts for larger cities; and (2) at the greater of 2012 aid or 2013 aid under current law for smaller cities with a population under 5,000.

K-12 EDUCATION
• Delayed payments to schools I: Vetoed—a draw-down of 66% of the state’s budget reserve for a one-time partial pay back of money that was borrowed from school districts last year to balance the state budget. The proposal left $2 billion in debt to our schools unaccounted for with no mechanism for repayment spelled out, and ran the risk of potentially forcing the state into more short term borrowing.
• Delayed payments to schools II: A proposal to phase-in a full pay back of the $2.4 in state “IOU’s” to Minnesota schools without draining the reserve fund by closing tax loopholes that allow corporations to shelter profits overseas was not enacted.
• School counselors: School districts are strongly encouraged to have an adequate student-to-counselor ratio for their students.
• Teacher licensure: Required teacher candidates to pass the basic skills exam before being granted an initial teaching license. However, a one-year exception was provided to teachers who have a one-year license to teach and taught during the 2011-12 school year.
• Teacher layoff practices: Vetoed—a requirement that the discharge or demotion of teachers be based on performance evaluations instead of seniority.
• High school to college or work transition: School districts are strongly encouraged, but not mandated, to assist all students by no later than grade 9 to explore their college and career interests, and develop a plan for a smooth and successful transition to postsecondary education or employment.
• Homeless students: A pupil who has been enrolled in a district, who is identified as homeless, and whose parent or legal guardian moves to another district, may continue to enroll in the nonresident district.
• Principal evaluation: Required 35% of a principal’s job performance evaluation to be based on student academic growth.
• School trust fund lands: Created a new oversight process for the management of “School Trust Lands.” School trust lands are supposed to be managed in a prudent and profitable manner with the monetary proceeds from those management decisions (timber sales, lease revenue, etc.) used for the benefit of Minnesota’s public schools. Currently, the DNR manages those lands. The DNR has been criticized over the years for mismanaging trust lands. Consequently, a new oversight process was established.
• Mayoral control of schools: A proposal to grant the mayors of Minneapolis and St. Paul greater authority over their respective school districts by authorizing them to appoint the school board members was not enacted into law.
• School bus crossing control arm: All school buses manufactured for use in Minnesota after January 1, 2013, must be equipped with a crossing control arm mounted at the right front corner of the front bumper.
• CPR and external defibrillator instruction: School districts directed to provide onetime CPR and automatic external defibrillator instruction as part of their grade 7 to 12 curriculum.


EARLY CHILDHOOD EDUCATION/CHILD CARE/CHILDREN/FAMILIES
• Early childhood development screening notice: Required school districts to expand upon the early childhood development screening notice that they already provide to a parent or guardian that spells out their right to decline to answer questions or provide information about family circumstances that might affect development and identification of risk factors that may influence learning.
Early childhood education scholarships: A proposal to authorize the use of low-income early childhood scholarships at any public or private early childhood preschool program was not enacted. These funds can be restricted to use at a “quality-rated” program.
• Parent-child home program: Allocated $250,000 of the early childhood scholarship program funding specifically to the parent-child home program, which is a program in which educators visit low-income families at home to assist parents in the promotion of language development, literacy and school readiness in preschool age children.
• Child care providers: Vetoed—a prohibition on union dues or fair share fees being deducted from a child care provider’s assistance payments, even if a provider wishes to spend these funds, which they have earned and is part of their income, in that fashion.
• Crib safety: Expanded the existing crib safety requirements applicable to child care provider to include children’s residential facilities, chemical dependency treatment programs with children in care, and residential habilitation programs serving children with developmental disabilities.
• Child support judgments: Eliminated the provision providing for a 20-year survival of child support judgments. The judgment will now survive for ten years after its entry, which is similar to other judgments.
• Joint custody: A proposal to grant both parents involved in a custody case a rebuttable presumption of joint legal and joint physical custody of their children was not enacted. In addition, a measure to increase the minimum parenting time that is rebuttably presumed to be awarded to a parent from 25 percent to 35 percent was “pocket” vetoed.

HIGHER EDUCATION
• Textbook costs: Directed MnSCU to establish a work group to study methods to lower textbook costs for students, including the expanded use of e-books, and other technology-based innovative practices.
• Public Safety Officer Survivor Educational Grant: Expanded the permitted uses of this grant to include graduate education. These grants are available to children and spouses of public safety officers killed in the line of duty and are used to offset higher education expenses.
• Government shutdown-MNSCU: Established a mechanism to keep MNSCU operating in the event of a government shutdown. The measure permits certain types of income, such as student tuition and fees, all federal receipts, aids, contributions, and reimbursements, to be used by the MNSCU system to continue operations in the event of a lack of agreement on the state budget.
• Regent selection: The Legislature elected Thomas Devine to serve on the University of Minnesota’s Board of Regents, replacing former legislator Steve Sviggum who resigned.
• Regent selection—former legislators: A proposal to prohibit former members of the legislature from serving as a member of the University of Minnesota’s Board of Regents for a period of two years after leaving legislative office was not enacted.
• Regent selection—students: A proposal to increase from one to two the number of members of the Board of Regents of the University of Minnesota who must be students was not enacted.
• Alcohol sales at TCF Bank Stadium: Authorized the sale of alcohol at TCF Bank Stadium for Gophers and Vikings football games. For Gophers games the sales must be “at a location in the stadium that is convenient to the general public…” and must be available at that location to the general public at least through half-time. Sales in premium seating areas also permitted. Alcohol can also be sold in the premium seats at hockey and basketball games, but its sale is not required in the general seating areas.

TRANSPORTATION
• Speeding violations: Expanded the “Dimler” law to keep speeding violations off of a person’s driving record for going up to (and including) 10 mph over the speed limit in either a 55 mph zone or a 60 mph zone. Currently, the 10 mph exemption applies only in a 55 mph zone; a 5 mph exemption applies in a 60 mph zone. No exemption applies in 65 mph or 70 mph zones.
• Use of shoulders by buses: Modified the law governing the authority for buses to operate on the shoulder of freeways (divided highways with full control of access) and expressways (divided highways with partial access control), so that counties, cities, and towns having jurisdiction over the road can authorize such use.
• Child passenger restraints in school buses: Eliminated an exception for certain lighter school buses from mandatory use of child restraints. Expanded eligibility for the Minnesota child passenger restraint and education fund, which is used to pay for child passenger restraint systems for families in financial need, to include school districts and child care providers that provide for the transportation of pupils to and from school using type III vehicles or school buses with a gross vehicle weight rating of 10,000 pounds or less.
• Electric-assisted bikes: Modified the regulations for electric-assisted bicycles ("e-bikes"), to classify them as regular pedal-operated bicycles (instead of a subset of motorized bicycles, mopeds, or motorcycles) with respect to traffic regulations, riding rules, equipment requirements, registration, etc. Authorized the use of electric-assisted bikes on all pathways, trails, dedicated roadway lanes, shoulders, etc., on which bicycle use is permitted, including state trails managed by the Department of Natural Resources and paths created by local units of government like cities and park boards, unless it is determined that operation of the electric-assisted bike is not consistent with the safety or general welfare of trail users.
• Safe routes to school: Established, but did not fund, a “safe routes to school” program for capital investments for safe non-motorized transportation to and from school. Should the program be funded in the future, it will provide financial assistance for such things as installation of sidewalks and trails that would make walking or riding a bike to school more appealing or practical.
• Southwest corridor LRT: No. $25 million had been sought.
• Transit fare increase: No.

HEALTH & HUMAN SERVICES
• Health insurance exchange: No action.
• Personal Care Attendants: Delayed until July 1, 2013 the 20 percent rate cut for PCAs who are caring for relatives.
• Emergency medical assistance: Expanded coverage to include dialysis services in a hospital or free standing dialysis facility; and surgery and the administration of chemotherapy, radiation, and related services necessary to treat cancer until June 30, 2013.
• Autism—foster care: Directed the commissioner of human services to work with counties to develop licensed foster homes for people with autism.
• Reporting potential fraudulent use of welfare EBT cards: Local law enforcement must report to the commissioner of human services the name of every person arrested who possesses more than one welfare EBT card. The commissioner of human services who will then verify whether the suspect is authorized to possess any of the electronic benefit cards.
• EBT public assistance cards—tobacco & alcohol: Any person found guilty of purchasing tobacco products or alcoholic beverages with their EBT debit card will be disqualified from MFIP, the diversionary work program, the work participation cash benefit program, the general assistance program, and the Minnesota supplemental aid program for one year after the first offense, two years after the second offense, and permanently after a third offense.
• Contraceptive insurance coverage: A proposal to require health plans to provide coverage for contraceptive methods, and not impose any co-pay on that coverage, was not adopted. Health plans sponsored by religious employers would have been exempt from the requirement.
• Positive alternative grants: Modified the eligibility requirements for positive alternatives grants by permitting an agency or organization in existence for at least one year as of July 1, 2011, rather than 2005, to be eligible for funding.
• Abortion—facility licensure: Vetoed—a requirement that facilities that perform ten or more abortions each month be licensed by the Department of Health.
• Abortion-inducing drugs: Vetoed—a requirement that RU-486, or any other drug used to induce an abortion, be administered in the same room and in the physical presence of the prescribing physician. The measure would have also required the physician, or person acting for the physician, to make reasonable efforts to ensure the patient returns for a follow-up visit 12 to 18 days following administration of the drug.
• Nurse licensure compact: Not enacted.
• Health care compact: Vetoed—legislation entering Minnesota into a health care compact, which would create an alliance with other states to ask Congress to “return the authority to regulate health care to the member states…” Approval by Congress would give the legislature the authority to suspend any federal laws related to health care, which could include opting out of programs such as Medicare and Medical Assistance.
• Financial audit of HMOs: Required an independent third-party financial audit of managed care and county-based purchasing plans that provide care for enrollees in state public health care programs to ensure cost-effectiveness and program integrity.

CAPITAL INVESTMENT/JOBS/EMPLOYMENT LAW
• Bonding: A $496 million bonding package was adopted to improve Minnesota’s public infrastructure. Investments were made in: MNSCU; the U of M; wastewater treatment infrastructure; flood hazard mitigation; dam repair & removal; RIM; the development of Lake Vermillion State Park; parks & trails; local roads & bridges; Greater MN transit; rail and port improvements; libraries, the Minnesota Zoo, and the State Capitol, among other entities.
• Asset preservation: As with previous “bonding” bills, a focus of this year’s capital investment bill was the maintenance of the state’s infrastructure (i.e. “asset preservation”). Asset preservation investments were made all across Minnesota in a variety of areas including, higher education, military & veterans’ affairs, corrections, human services, historical society, and other state agencies.
• Greater MN Business Development Public Infrastructure Grant Program: $6 million allocated to assist counties or cities in Greater Minnesota with the capital costs of public infrastructure (sewers, utility extensions, water supply systems, wastewater treatment systems, etc.) that are necessary for economic development projects.
• Business Development Through Capital Project Grant Program: $47.5 million allocated for a new competitive grant program for local units of government.
• Capitol restoration: $44 million allocated to begin the process of repairing and restoring the State Capitol.
• Vikings stadium: Yes. The legislature authorized a $975 million stadium in downtown Minneapolis that would be used by the Minnesota Vikings. The new stadium would be located adjacent to and overlapping the site of the current Metrodome.
• Housing: $35.5 million for supportive and public housing needs, and the acquisition and remediation of foreclosed properties that will be used for affordable rental housing
• Restoration of Peace Officers’ Memorial on the Capitol Grounds: Yes.
• Lutsen Ski Resort-water draw: Established a Lake Superior-Popular River Water District.
• Prevailing wage: The formula for computing the “prevailing wage” payable on projects that are funded, in whole or in part, with state funds was not modified.
• Right to work: A proposal to amend the constitution to “guarantee all citizens the individual freedom to decide, without having it affect their employment status, to join or not join a labor union” was not enacted.
• Small business advocate: Established a small business advocate office within the Business Assistance Center to provide one-stop access for small businesses in need of information or assistance in obtaining or renewing licenses, meeting state regulatory requirements, or resolving disputes with state agencies.
• Jobs Now Tax Credit: Governor Dayton’s proposal to provide a $3,000 tax credit for each unemployed Minnesotan, veteran or recent graduate hired in 2012, and a $1,500 credit for each new hire though June 2013 was not enacted.
• “Bridges to Work” pilot program: Not established. It provided for up to 5,000 unemployed workers to receive up to eight weeks of paid job training with an employer without losing their unemployment insurance benefits.

PUBLIC SAFETY
• Disaster relief: $235,000 allocated to provide a match for FEMA disaster assistance to state agencies and local units of government as a result of the 2010 spring flooding.
• Safe Place for Newborns: Expanded the locations where a parent or other person, with the mother’s permission, may anonymously drop off a newborn shortly after birth without fear of criminal prosecution for abandoning the child.
• Fire Safety Account: $4.5 million appropriated from the fire safety account.
• Civilly committed sex offenders—community notification: Established a process for notifying community members when a sex offender is released from the Minnesota Sex Offender Program (MSOP) into a residential facility.
• Vulnerable adults—new felony level sanction for neglect: Created a new felony-level sanction for a caregiver to intentionally deprive a vulnerable adult of necessary food, clothing, shelter, health care, or supervision, when the person is reasonably able to make the necessary provisions.
• Restraint of a child: Modified the crime of “unreasonable restraint of a child” by reducing the resulting level of harm required for a felony offense to be applicable.
• Domestic abuse enhanced penalties: Expanded the list of “qualified domestic violence-related offenses” to include female genital mutilation (FGM).
• Open juvenile court hearings: No change in the standard governing the opening of juvenile delinquency hearings to the public.
• Firearms—deadly force: Vetoed—an expansion of the authorized use of deadly-force as a means of self-defense; and the recognition of all “permits to carry” issued by other states or other non-Minnesota governmental jurisdictions regardless of the eligibility criteria of those states or jurisdictions.
• Firearms—county attorneys: Authorized a county attorney, or an assistant county attorney to carry a firearm while on duty provided they lawfully possess a permit to carry a pistol issued under Minnesota’s “conceal carry” statute.
• Jacob’s Law: Granted each party to a custody order the right of access to police reports about the parties' minor children, and the right to be notified by the other parent if a child is the victim of an alleged crime. That right includes the right to the name of the investigating law enforcement officer or agency.
• Violations of restraining orders: Made it easier to prosecute violations of restraining orders that occur in multiple counties.
• Gas drive offs: Modified the criminal theft statute to assist in the prosecution of gas drive offs.
• Synthetic drugs/cannnabinoids: Strengthened Minnesota’s drug laws to better combat the problem presented by synthetic drugs. For example, increased the penalty for the sale of synthetic cannabinoids from a gross misdemeanor to a felony.
• Soft body armor: $472,000 appropriated to reimburse law enforcement officers and local units of government who purchase bullet-resistant vests.

ENVIRONMENT & NATURAL RESOURCES
• Environmental permitting efficiency: Modified the permitting goals established last year, to ensure that PCA and DNR environmental permits are issued more efficiently.
• Minnesota Business First Stop--environmental permits: “Minnesota Business First Stop,” a multi-state agency collaboration, will help ensure the coordination, implementation and administration of state permits. A person proposing a project may apply to the Minnesota Business First Stop for assistance in obtaining the necessary state permits and other approvals.
• Outdoors, arts & cultural heritage constitutional amendment: In the 2008 general election voters approved a constitutional amendment to increase the state sales tax 3/8 of 1% to fund various priorities, including outdoor initiatives, clean water programs, parks and trails, and arts & cultural heritage. This year the Legislature appropriated $99.9 million for outdoor heritage projects; $6 million for clean water; and $1.6 million for the arts and cultural heritage. No new funding for parks and trails provided this year.
• Lessard-Sams Outdoor Heritage Council: The "Lessard-Sams Outdoor Heritage Council" (LSOHC) advises the Legislature on how best to utilize the outdoor heritage funding that results from passage of the constitutional amendment (see above). The council is made up of private citizens and legislators. This year the council made $99.9 million in recommendations, which were adopted by the Legislature almost in full.
• Reinvest in Minnesota (RIM): $13.8 million appropriated to acquire permanent conservation easements and restore wetlands and associated upland habitat in cooperation with the United States Department of Agriculture Wetlands Reserve Program.
• Aquatic invasive species control—research & barriers: $3.8 million appropriated from the environmental trust fund and the clean water fund for research on aquatic invasive species that threaten our state’s lakes, rivers, streams, wetlands, and other aquatic habitat. Also appropriated $7.5 million to construct and evaluate structural deterrents, such as electric fish barriers, to protect against Asian carp.
• Invasive species control—sanctions: Doubled the civil fines for a first violation of failing to comply with the laws governing the transporting or introduction of invasive species into Minnesota’s waters, such as failing to remove drain plugs, open valves, or drain water from water—related equipment when leaving waters of the state or when transporting the equipment.
• Wolf season: Authorized the taking of wolves by firearms; bow and arrow; and trapping. The open season to take wolves by firearms will begin on the same day as the opening of the firearms deer hunting season.
• Game and Fish license fees: Increased. Increased various DNR license fees in order to financially shore up the Department of Natural Resources’ Game and Fish Fund which is used to support game and fish initiatives. For example, increased resident fishing licenses from $17 to $22; married couple fishing license from $25 to $35; and individual resident deer hunting licenses from $26 to $30.

ENERGY
• Water conservation rate structures: Eliminated a requirement that public water suppliers serving more than 1,000 people adopt conservation rate structures. Conservation rate structures are rate structures that encourage conservation, such as excess usage rates, etc. Suppliers must, however, encourage water conservation.
• PUC commissioner confirmation: Senate rejected the confirmation of Governor Mark Dayton’s appointment of former State Senator Ellen Anderson to the PUC.

AGRICULTURE
• Minimum ethanol content: Extended from August 30, 2013 to August 30, 2015 the date by which nearly all gasoline sold in Minnesota must contain 20 percent ethanol (commonly referred to as "E20," or a blend of 80 percent gasoline and 20 percent ethanol). Currently, state law requires a ten percent ethanol blend (i.e., E10) for most gasoline sold in the state. With few exceptions, if you fuel up in Minnesota you are purchasing E10.
• Next generation biofuel blends: The NextGen Energy Board directed to provide the legislature an analysis of the next generation of biofuels that can be blended with gasoline or other energy sources. The board will provide policy recommendations for updating Minnesota's biofuels mandates.
• Raw milk: A proposal to permit dairy farmers to sell raw milk directly to consumers at farmer's markets, farm stands, private buying clubs, community fairs, a consumer's residence, etc. was not enacted. Current law requires consumers to purchase raw milk directly at the farm where the milk is produced.
• Food safety: Granted the Department of Agriculture new civil and administrative penalty authority for food safety violations.

VETERANS SERVICES/MILITARY AFFAIRS
• MN Veterans Homes: $4.36 million for improvements at the Minneapolis Vets Home, including a new skilled nursing building.
• County Veteran Service Officers: $200,000 allocated for community outreach to all eligible veterans regarding the availability of benefits they have earned and especially those relating to posttraumatic stress disorder.
• Minnesota Assistance Council for Veterans: Increased funding $100,000 to the Council to provide assistance to veterans and their families who are homeless or in danger of homelessness, including housing, utility, employment, and legal assistance.
• GI Bill expansion: Directed the Commissioner of Veterans Affairs to develop and implement an apprenticeship and on-the-job training program within the confines of the Minnesota GI Bill.
• Honor Guards I: Under current law the Commissioner of Veterans’ Affairs is authorized to pay up to $50 to a local unit of a congressionally chartered veterans organization as compensation for providing honor guards at the funerals of veterans.
• Honor Guards II: $100,000 appropriated for honor guards at the funerals of vets.
• Honor Guards, Color Guards, Marching Bands: Increased from $35 to $50 the per diem stipend lawful gambling organizations are authorized to pay to each member of a military marching band, color guard, or honor guard unit for each performance by the unit in Minnesota or its contiguous states.
• Public employment veterans’ preference credit: Increased from five to ten points the credit awarded to nondisabled veterans on the competitive open examination rating; and from ten to 15 points the credit awarded to disabled veterans.
• County veterans preference: County boards authorized to establish a veterans preference program to provide up to a six percent bid preference for awarding contracts to designated veteran-owned small businesses for the procurement of technical and nontechnical goods and services including, but not limited to, printing and construction projects.
• Veterans preference-noncompetitive hiring: Authorized the hiring of a disabled veteran to a vacant position in classified service of state government on a noncompetitive basis, provided that the veteran has a service-connected disability of 30 percent or more; and is qualified for the position.

GOVERNMENT OPERATIONS
• The MAGIC Act: The Minnesota Accountable Government Innovation and Collaboration Act (MAGIC) was not adopted. Under the proposal counties would have been authorized to request a waiver to bypass state regulations, mandates, and statutory restrictions and come up with their own solutions to various problems on a pilot project basis.
• Government shutdown—lights on: A comprehensive proposal to prevent a future government shutdown by continuing all state funding in the event of a lack of agreement on the state budget was not enacted.
• Public employee definition: Vetoed—a modification to the definition of what constitutes a “public employee.” The Public Employment Labor Relations Act (PELRA) defines the "public employees" who are covered by the PELRA law. Only those persons defined as "public employees" are included in bargaining units established under the act.
• E-Verify: Vetoed—a requirement that all employers in the legislative, executive, and judicial branches to use the federal E-Verify program for all newly hired employees.

ELECTIONS
• Photo ID to vote: At the 2012 general election voters will be asked the following question: “Shall the Minnesota Constitution be amended to require all voters to present valid photo identification to vote and to require the state to provide free identification to eligible voters, effective July 1, 2013?”
• Redistricting: Legislation to redraw the state’s congressional and legislative boundaries was not enacted. Consequently, a specially appointed judicial panel issued an order establishing new boundaries.
• Guardianship—right to vote restricted: A proposal to prohibit individuals placed under guardianship from voting was not enacted.
• State primary date: No change. An effort was not successful to move up the date of the state primary from August to June.

CONSUMER AFFAIRS
• Home foreclosure/home sales: A series of initiatives to address problems related to home sales and foreclosures were not enacted, including a requirement that lenders either accept, deny, or accept subject to certain conditions a short sale request within 30 days after receiving the request; and a prohibition on foreclosure if the lender has not acted on a pending loan modification request.
• Toxic free products: A proposal to improve the monitoring of “priority chemicals” that could pose a risk to children was not enacted.
• Pawn shops: A proposal to permit certain pawnshops to operate as a type of bank (industrial loan and thrift) in order to charge higher fees for pawn loans was not enacted. By operating under banking law, the shops also would have been able to avoid various consumer protection laws such as: municipal licensing requirements; and law enforcement regulations governing the tracking of stolen goods.
• Liquor sales on Sunday: Not authorized.
• Torts: Vetoed—several proposals to modify litigation practices including: (1) changes to the process for appealing the certification of a class-action lawsuit; (2) a reduction from six to four years in the general statute of limitation period for bringing certain legal actions. The proposal would not have impacted other statutes of limitation that are expressly delineated in law, such as those governing medical malpractice or sexual abuse; (3) limitations on the awarding of attorney fees; and (4) a reduction in the pre-judgment interest that can be levied in civil litigation cases.
• Asbestos-related successor corporation liability: Vetoed—a limitation on an “innocent” corporation’s liability for asbestos-related claims that arise out of the “innocent” corporation having merged with a “guilty” corporation that held such liability.
• Fireworks expansion: Vetoed.