minnesota inter-county association

161 st. anthony ave • suite 850 • st. paul, mn 55103 • (651)222-8737 website: www.mica.org • email: mail@mica.org

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May 27, 2015

Dear MICA Members and Other Interested Parties:

The following 2015 End of Session Report is our annual overview of legislative changes. The

report is not meant to be comprehensive but rather give a broad-brush view of the various policy

areas of concern to counties. In some instances, more comprehensive summaries have been shared

with your staffs. In other instances, we can readily provide or steer you or your staff to any more

detailed summaries you may desire.

I hope you find MICA’s 2015 End of Session Report useful. If you have any questions or need

more details about a particular item, please do not hesitate to contact our office. A supplemental

report summarizing the outcome of the pending special session will follow at a later date.

Sincerely,

Keith E. Carlson

Executive Director

Minnesota Inter-County Association

2015

END OF SESSION

REPORT

Executive Director: Keith Carlson

Phone: 612-759-9442

keithc@mica.org

Transportation and Capital

Investment Liaison:

Steve Novak

Phone: 763-458-8232

stevengnovak@gmail.com

Health and Human Services

Liaison:

Nancy Silesky

Phone: 612-747-7242

nsilesky@chestnutcambronne.com

Interim Public Safety and

Corrections Liaison:

Ryan Erdmann

Phone: 651-789-4345

Erdmann@mncounties.org

2015 Legislative Session Report

Taxes & Property

Tax Aids

No 2015 Omnibus Tax Bill. $1 Billion Left on the Bottom Line

Some for Possible Future Aid Increases

In an outcome that is unprecedented in recent memory, no Omnibus Tax Bill was passed during the 2015 Session

because the leadership of the House and Senate agreed to disagree on House Republican’s desire to enact a tax bill

with substantial tax reductions and the Senate DFL’s desire to enact a permanent transportation funding increase

through increases in transportation-related taxes. They chose to forego their respective objectives in order to reach

what they hoped would be a timely conclusion of the session. The Governor’s vetoes of the K-12 Education Aid Bill,

the Jobs Bill, and the Environment and Natural Resources Budget Bill frustrated that agreement and will require a

special session to complete the adoption of a comprehensive budget for the FY 2016/17 biennium.

Ch. 1

Clarifications for Rochester’s Destination Medical

Center

Amounts spent by the city before the development

plan has been approved may be paid with state aid, if

they are approved by the Destination Medical Center

(DMC) corporation. The definition of qualified

expenditures for a year (the amount that is used to

calculate state infrastructure aid) is the cumulative

amount of expenditures made since June 30, 2013

through the end of the preceding year, less

$200,000,000. (Present law defines these

expenditures as an annual amount.) There is also

clarification on how a carryover infrastructure aid

amounts are to be calculated in any year that the city

fails to make the required local matching contribution

and, then, makes the required local matching

contribution for that year in a later year. A similar

clarification is made for purposes of computing any

carryover aid amount for the state transit aid. It is

made clear that city payments for preparation of the

development plan also qualifies as a local match for

purposes of qualifying for state infrastructure aid.

What Didn’t Happen

-No funding increase or formula change for county program aid

-No levy limits or reverse referendum for levy increases

-No reductions in the state business and seasonal recreational residential property tax

-No changes in the property taxes on railroads

-No additional property tax relief for agricultural property

-No changes in the property tax classifications

-No increases in payments in lieu of taxes for lands acquired for natural resources purposes

-No changes in tax increment financing

2015 Legislative Session Report

Human Services

MICA Counties Were Successful on Several Initiatives

The 2015 Legislature adjourned at midnight on Monday, May 18. The Health and Human Services budget bill

was passed by both the Senate and House early in the morning of Sunday, May 17. Governor Dayton signed the

bill into law on Friday, May 22 (Chapter 71).

Because the committee was given a negative spending target of ($328 million), there were grave concerns as to

what programs would be cut. In the end, $455 million from the Health Care Access Fund was utilized, leaving a

balance of only $148 million in the fund. The final bill also includes a payment delay to the managed care

organizations, as well as efficiencies related to their administrative costs.

Under the agreement, the DHS budget will grow from $11.6 billion to $12.5 billion over two years, or 7.7%,

much of that due to the ever-rising cost of health care. Still some investments were made, including $138 million

in new funding for nursing home workers and more than $45 million in mental health, both priorities for

lawmakers on both sides of the aisle.

CH 71 – Omnibus Health and Human Services

Appropriation Bill S.F. 1458

Child Protection

Senator Kathy Sheran (DFL: Mankato) and

Representative Ron Kresha (R: Little Falls), both

members of the Governor’s Task Force on the

Protection of Children, carried the legislation

relating to child protection. The conference

committee came to an agreement on child protection

in the waning days of session. The total investment

is as follows:

$52.2 million for FY16-17; $52.1 million for

FY18-19:

o $44 million for next two biennium

for grants to counties for staffing;

o $6 million for next two biennia for

disparities grants (counties eligible);

and

o $2.2 million for FY16-17 and $2.1

million for FY18-19 for DHS

staffing.

Every county will be appropriated $75,000 to hire at

least one new employee to help carry out changes

meant to strengthen the system. The remaining

dollars will be divided among the counties based on

a formula to determine who needs it the most.

Counties will not be allowed to use the new money

to replace their current funding. The commissioner

shall allocate state funds to each county board on a

calendar year basis in an amount determined

according to the following formula:

50% must be distributed on the basis of the

child population residing in the county;

25% must be distributed on the basis of the

number of screened-in reports of child

maltreatment in the county; and

25% must be distributed on the basis of the

number of open child protection case

management cases in the county.

Calendar year allocations shall be paid to counties in

the following manner:

80% of the allocation must be paid to

counties on or before July 10 of each year;

10% of the allocation shall be withheld until

the commissioner determines that the county

has met the performance outcome threshold

of 90% based on face-to-face contact with

HUMAN SERVICES

alleged child victims. In order to receive the

performance allocation, the county child

protection workers must have a timely face-

to-face contact with at least 90% of all

alleged child victims of screened-in

maltreatment reports. The commissioner

shall make threshold determinations in

January of each year and payments to

counties meeting the performance outcome

threshold shall occur in February of each

year. Any withheld funds from this

appropriation for counties that do not meet

this requirement shall be reallocated by the

commissioner to those counties meeting the

requirement; and

10% of the allocation shall be withheld until

the commissioner determines that the county

has met the performance outcome threshold

of 90% based on face-to-face visits by the

case manager. In order to receive the

performance allocation, the total number of

visits made by caseworkers on a monthly

basis to children in foster care and children

receiving child protection services while

residing in their home must be at least 90%

of the total number of such visits that would

occur if every child were visited once per

month. The commissioner shall make such

determinations in January of each year and

payments to counties meeting the

performance outcome threshold shall occur

in February of each year. Any withheld

funds from this appropriation for counties

that do not meet this requirement shall be

reallocated by the commissioner to those

counties meeting the requirement.

The commissioner shall work with stakeholders and

the Human Services Performance Council to develop

recommendations for specific outcome measures

that counties should meet in order to receive funds

withheld and include in those recommendations a

determination as to whether the performance

measures should be modified or phased out. The

commissioner shall report the recommendations to

the legislative committees having jurisdiction over

child protection issues by January 1, 2018.

Finally, in order for counties to receive funding,

counties are required to demonstrate that they are

performing background checks for all new

employees with child protection duties, or existing

employees reassigned to child protection who had

not previously been working with that population.

Counties may use existing processes or work with

DHS to conduct background studies. Counties will

have discretion on how to use the information

obtained through these background checks. (Article

1; Article 9, sections 17 and 45; Article 14, section

2, subdivision 5(e).)

Child Protection Legislative Task Force

The bill, authored by Senator Julie Rosen (R:

Vernon Center) and Representative Joe Mullery

(DFL: Minneapolis), will review implementation of

the recommendations presented by the Governor’s

Task Force on the Protection of Children. The four

legislators serving on the Governor’s Task Force

will make up the legislative task force, with up to

eight additional legislators to be appointed as ex

officio members. The four legislators include:

Senator Julie Rosen

Senator Kathy Sheran

Representative Joe Mullery

Representative Ron Kresha

The task force is required to issue a report and

recommendations to the Legislature by February 1,

2016. It will sunset on the last day of the 2016

legislative session.

Administrative Simplification of Public

Assistance Programs

Senator Tony Lourey (DFL: Kerrick) and

Representative Tara Mack (R: Apple Valley) carried

this county priority legislation. In 2014, the

Legislature made uniform the treatment of income,

assets, and household composition for MFIP, GA,

MSA and GRH. Phase II builds on last year’s

efforts by making uniform income calculations,

reporting of income and changes to income, and

correcting overpayments and underpayments. The

final agreement included full funding for the

initiative of $278,000 for FY16-17 and $420,000 for

FY18-19. (Article 5.)

HUMAN SERVICES

Nonemergency Medical Transportation (NEMT)

($6.8 million for FY16-17; $14.6 million for

FY18-19)

The NEMT system has been bifurcated for many

years. DHS manages those who require a higher

level of need (“special” transportation), while

counties have been responsible for those who have

lower levels of need (“access” transportation). A

Task Force was directed by the Legislature to

develop a single administrative system relating to

NEMT. It has been moving in that direction – with

the recommendation that counties manage the system once paid for by the State.

Senator Kathy Sheran and Representative Kim

Norton (DFL: Rochester) introduced the NEMT

Task Force recommendations early in the session, which included funding as follows:

The repeal of the 4.5% rate reduction for

NEMT providers;

Increased base rates for NEMT providers

serving the rural and super rural areas of the

state;

A new rate structure for NEMT providers;

Up to 80% of the IRS standard mileage rate

for client self-transport (46 cents); and

Up to 200% of the IRS standard mileage rate

for volunteer transport ($1.15).

NOTE: The Task Force made the decision

to start with the above recommendations.

They did not seek funding for the web-based

system at this time.

The Legislature ended up addressing the providers’

rates and made modest investment in increased

mileage for self-transport by increasing it from 20 cents to 22 cents per mile.

Most importantly, the final agreement includes

language protecting counties, stating clearly that

responsibility is not shifted to counties until the

commissioner has developed, made available, and

funded the Web-based single administrative

structure, assessment tool, and level of need

assessment. It further states that the local agency's

financial obligation is limited to funds provided by

the state or federal government. Until then,

everything remains status quo with DHS continuing

to manage the special NEMT services and counties

continuing to manage access NEMT services.

(Article 11, section 21.)

Community Addiction Recovery Enterprise

(C.A.R.E.) Program; ($15.3 million for FY16-17;

$10.9 million for FY18-19)

The Governor’s budget recommendations included a

proposal to restructure the C.A.R.E. Program by

reducing bed-capacity from 174-beds, across six

sites, to 70 beds, across up to four sites by June 30,

2016. Two facilities would have been closed

altogether, including the Fergus Falls and Carlton

facilities. The Governor’s proposal increased rates,

for those individuals committed to DHS who present

with complex issues and who may pose a risk to

public safety, from $174 per day to $475 per day in

an effort to incent private vendors to provide

services at the facilities.

Otter Tail County was very concerned about the

closing of their facility in Fergus Falls. First and

foremost there would have been a lack of services

for those individuals receiving treatment at the

facility. Secondly, the County built the facility at

the State’s request. If the facility were to be closed,

local taxpayers would have been on the hook for

more than $4 million.

MICA worked with Otter Tail County in an effort to

modify the recommendation and, in the end was

successful. We met with local legislators, including

Senator Bill Ingebrigtsen (R: Alexandria),

Representative Bud Nornes (R: Fergus Falls) and

Representative Mary Franson (R: Alexandria) – all

of whom worked hard on behalf of Otter Tail

County. We also met with HHS Chairs Senator

Tony Lourey and Representative Matt Dean, as well

as their staffs, regarding these concerns. In the end,

the facilities will remain open – but will be

repurposed as 16-bed facilities. NOTE: a 2% rate

increase for chemical dependency providers is also

included as part of this initiative. (Article 2, sections

20-21.)

Eagle’s Healing Nest

Beginning in 2014, Stearns County has been

working with Eagle’s Healing Nest - a facility that

houses veterans and others with complex health

issues - in its efforts to qualify for group residential

housing (GRH) funding. In 2014, the Legislature

HUMAN SERVICES

did appropriate $26,000 to Stearns County to

provide administrative funding to assist the facility

in its attempts to attain GRH status. The Stearns

County Board did approve said status, but was

concerned regarding the county cost of ongoing

oversight of the facility. After putting pen to paper,

they assessed their expenses at more than $89,000

per year. MICA and Stearns County worked with

Representative Paul Anderson (R: Starbuck) and

Senator Torrey Westrom (R: Elbow Lake) to secure

a level of funding which would reflect those actual

costs. The final agreement includes funding of

$85,000 for the next four years for Stearns County

(Article 14, section 2, subdivision 5g (c).)

Fetal Alcohol Syndrome Grants ($500,000

for the next two biennia)

Olmsted County worked with the

Minnesota Organization on Fetal Alcohol Syndrome

(MOFAS) in order to secure additional funding for

prevention measures for pregnant women. At least

two such programs currently exist, including

Olmsted County’s CRAFT program and St. Louis

County’s Superior Babies program. Legislation

passed that was authored by Representative Joe

McDonald (R: Delano) and Senator Melisa Franzen

(DFL: Edina). Under the new law, grants would be

used to provide comprehensive, gender-specific

services to pregnant and parenting women suspected

of or known to use or abuse alcohol or other drugs.

The appropriation is for grants to no fewer than three

eligible recipients. The legislation requires MOFAS

to report to the commissioner of human services

annually by January 15 on the grants funded by the

appropriation. The report must include measurable

outcomes for the previous year, including the

number of pregnant women served and the number

of toxic-free babies born. (Article 14, section 2,

subdivision 5 g(o).)

Safe Harbor for Sexually-Exploited Youth

Money was appropriated from both the DHS and

MDH budgets as follows:

DHS: Safe Harbor for Sexually-Exploited

Youth Child and Economic Support Grants:

$1.6 million for each of the next two biennia

for emergency shelter and transitional and

long-term housing beds for sexually-

exploited youth and youth at risk of sexual

exploitation. Of this appropriation,

$150,000 in FY16 and $150,000 in FY17 are

for statewide youth outreach workers

connecting sexually-exploited youth and

youth at risk of sexual exploitation with

shelter and services.

MDH: Safe Harbor for Sexually Exploited

Youth Outreach: $1.4 million for each of the

next two biennia for grants to increase the

number of regional navigators; training for

professionals who engage with exploited or

at-risk youth; implementing statewide

protocols and best practices for effectively

identifying, interacting with, and referring

sexually-exploited youth to appropriate

resources; and program operating costs.

Return on Taxpayer Investment

MICA worked with Dakota County on this measure,

which has been around for a few years. The House

author was Representative Tara Mack; the Senate

author was Senator Michelle Benson (R: Anoka).

As introduced, the proposal would have provided

funding of $100,000 for FY16 and FY17 to be

appropriated to the Commissioner of Management

and Budget to develop and implement an ROTI

methodology using the “Pew-MacArthur

Results First” framework to evaluate corrections and

human services programs administered and funded

by state and county governments. In the end, both

the House and Senate included the proposal, but the

position was contained in two different budget

divisions. ROTI funding ended up being included in

the final State Government Finance bill at $121,000

for FY16 and $122,000 each year for FY17, FY18

and FY19. (Chapter 77, Article 1, section 13.)

MinnesotaCare

Going into conference committee, the Senate and

House had vastly different approaches as to how to

address the future of MinnesotaCare and MNsure.

The House called for the transitioning of people

from MinnesotaCare into MNsure. A related House

proposal would have then shifted MNsure from the

state to the federal government. The Senate would

have transitioned MNsure from a board to a state

agency. In the end, MinnesotaCare was retained.

The State will book savings of $65 million by

effectively increasing how much MinnesotaCare

enrollees pay for coverage. However, the program’s

HUMAN SERVICES

main funding source is a 2% provider tax, which

sunsets in 2019, so the Legislature will have to

address the problem soon.

Tied to MinnesotaCare was the debate on the future

of MNsure, the state’s health insurance exchange.

The Legislature agreed to take the Governor’s

position on creating a Task Force on Health Care

Financing. Its mission will be to advise the

Governor and Legislature on strategies that will

increase access to and improve the quality of health

care for Minnesotans. These strategies shall

include options for sustainable health care financing,

coverage, purchasing, and delivery for all insurance

affordability programs, including MNsure, MA,

MinnesotaCare, and individuals eligible to purchase

coverage with federal advanced premium tax

credits and cost-sharing subsidies.

Recommendations are required to be made by

January 15, 2016. The 29-person task force will be

appointed by the Senate, the House and Governor

Dayton and will include representatives from MNsure

and the Departments of Commerce, Health and Human

Services.

For now the MNsure Board retains its authority,

including the choice of its top executive. Some changes

will occur, however:

insurance rates through MNsure and outside

of the exchange are required to be publicly

released at least 30 days before open

enrollment;

the State is required to pursue a waiver to

allow qualifying small businesses to access

the federal small employer health insurance

tax credit without having to enroll their

employees in insurance through MNsure’s

small business exchange; and

the State is required to request a federal

waiver to allow anyone who qualifies for

federal subsidies to help cover the cost of a

plan to get them even if they buy coverage

off the exchange.

Telemedicine ($344,000 for FY16-17; $1.5 million

for FY18-19)

Senator Julie Rosen and Representative Tara Mack

authored legislation that would require coverage for

telemedicine benefits in the same manner as any

other benefits covered under an insurance policy,

plan or contract, as well as MA. Its intent is to

improve access to care and treatment, particularly in

Greater Minnesota where transportation and

providers are limited. (Article 9).

MICA spoke to Senator Rosen about future

legislation that could include the use of Interactive

Video (ITV) for certain county case management

services. MICA intends to work over the interim in

an effort to develop legislation to mend the

inefficient use of resources where county employees

are required to drive many miles to other counties,

where their clients have been placed, in order to

meet the required in-person contacts.

Other Agreed-Upon Highlights Related to HHS

Reduce the Basic Sliding Fee (BSF) Child

Care Waiting List: $10 million for FY16-17;

$11.6 million for FY18-19.

o BSF Underspending. State captured

savings of ($3.017 million) related to

2015 unspent dollars instead of

carrying the balance.

Family Law:

o Child Support Forms (parenting

time): $106,000 for FY16-17.

o Child Support Disregard of $100 for

Certain MFIP Families: $7.9 million

for FY16-17; $9 million for FY18-

19.

o Working Group: $12,000 for FY16.

o The $25 Child Support application

fee is eliminated at a cost of $34,000

in FY16.

Data Sharing ($10,000 for FY16): Amends

data practices requirements to allow the

release of welfare and mental health data

between programs within the welfare system

and between health care providers and

personnel of the welfare system to

coordinate services for an individual or

family.

Dental Provider Rate Increase of 5%: $3.3

million for FY16-17; $4.7 million for FY18-

19.

Increase Funding for Minnesota Food

Assistance Program: $752,000 for FY16-17;

$1.5 million for FY18-19.

Hunger Solutions Mobile Food Shelf: $2

million for FY16-17.

MA-EPD Premium Reductions: $4.8

million for FY16-17; $5.3 million for FY18-

HUMAN SERVICES

19 to restore the premium and additional fee

on unearned income to pre-2014 levels.

Decreases premiums from $65 to $35, and

reduces the percentage of the amount of

unearned income they pay from 5% to .5%.

MA Elderly & Disabled Spenddown

Eligibility to Qualify for MA: Current 100%

of poverty guidelines spenddown is reduced

to 85% on 1/1/17; 95% on 1/1/19; $3.4

million for FY16-17; $7 million for FY18-

19.

Mental Health: More than $45 million in

investments were made as follows:

o Behavioral Health Homes: $5.4

million for FY16-17; $23.8 million

for FY18-19.

o Beltrami County MH Services Grant

(Pilot Program for Jail Health,

Diversion Program): $2 million for

FY16-17.

o Suicide Prevention Grants (Text for

Life): $1 million for FY16-17; $1

million for FY18-19 to expand

statewide.

o School-Based Diversion for Students

with Co-Occurring Disorders:

$65,000 for FY16-17; $322,000 for

FY18-19.

o MA Plan for Coverage of Clubhouse

Program Services: $134,000 for

FY16-17.

o Service and Supports for First

Episode Psychosis: $260,000 for

FY16-17; $685,000 for FY18-19.

o Mental Health Crisis Services: $8.6

million for FY16-17; $9.5 million for

FY18-19.

Health plans required to

include mental health crisis

services in covered benefits;

and

Requires the funding be used

for:

(1) creating a central phone

number where calls can be

routed to appropriate crisis

services;

(2) providing 24-hour

telephone consultation to

mobile crisis teams who are

serving certain populations

who are experiencing a mental

health crisis;

(3) expansion of crisis services

in the state;

(4) establishment and

implementation of state

standards for crisis services;

and

(5) providing grants to adult

mental health initiatives,

counties, tribes, or community

mental health providers to

establish new mental health

crisis residential service

capacity.

o Expansion of Respite Care

(Children’s Mental Health):

$847,000 for FY16-17; $1 million

for FY18-19.

o Certify Behavioral Health Clinics:

$398,000 for FY16-17.

o Build Community Capacity to

Address Adverse Childhood

Experiences: $796,000 for FY18-19.

o Psychiatric Residential Treatment

Facility (PRTF) (more intensive

residential treatment beds for

children with mental illnesses). DHS

will not use contract beds in

community hospitals, but will add

beds in a current hospital program:

$6.6 million for FY16-17; $23.7

million for FY18-19.

o Funding to open 15 new beds at the

Anoka Metro Regional Treatment

Center to free up beds in the

community and to address the

problem with the 48-hour rule.

o Stabilize Mental Health Services

Payment: $5.5 million for FY16-17;

$6 million for FY18-19.

o SOS Mental Health (one new IRTS

and two new CBHHS facilities):

$6.4 million for FY16-17; $6.2

million for FY18-19.

o Housing with Supports Grants (Adult

Mental Health): $4.7 million for

FY16-17; $6.1 million for FY18-19.

o Assertive Community Treatment

Quality Improvement and Expansion

(Adult Mental Health): $1.3 million

HUMAN SERVICES

for FY16-17; $1.5 million for FY18-

19.

o NOTE: Under the agreement the

Child & Adolescent Behavioral

Health Services Program in Willmar

will NOT be closed.

Health Disparities Data Analysis: $324,000

for each of the next two biennia

Safe Place for Newborns Awareness:

$350,000 for FY16.

Dementia Grants: $1.7 million for FY16-17;

$1.6 million for FY18-19.

Deaf and Hard of Hearing Grants: $1.6

million for FY16-17.

Increased Capacity for Individuals with

Complex Conditions: $6.4 million for

FY16-17; $6.1 million for FY18-19.

Minnesota Security Hospital Conditional

Licensing Corrections: $11.2 million for

FY16-17; $11.3 million for FY18-19.

2% Chemical Dependency Provider Rate

Increase: $3.6 million for FY16-17; $4.6

million for FY18-19.

Jensen Settlement Administrative Costs:

$3.9 million for FY16-17; $3.9 million for

FY18-19.

State Quality Council (ARC Initiative): $1.2

million for FY16-17; $1.2 million for FY18-

19.

TEFRA Parental Fees/10% Reduction:

$844,000 for FY16-17; $844.000 for FY18-

19.

SOS Operating Adjustment: $6.5 million for

FY16-17; $8.7 million for FY18-19.

Civil Commitment Reviews (St. Peter).

Requires individuals to go before Special

Review Board at least once every three

years; make determination of barriers to

progress: $884,000 for FY16-17; $1.2

million for FY18-19.

MSOP Operating Adjustment: $7.8 million

for FY16-17; $8.8 million for FY18-19.

Adult Foster Care and Foster Parent Liability

Insurance: $666,000 for each of the next

two biennia.

Federal Compliance to Document Runaways

and Sex-Trafficked Youth from Foster Care:

$223,000 for FY16-17; $40,000 for FY18-

19.

Treatment of Assets for Long Term Care

Eligibility: $5.2 million for FY16-17; $15.2

million for FY18-19.

HCBS Incentive Pool (Incentives from DHS

to providers who Exhibit Innovative Service

Delivery): $1.4 million for FY16-17; $3.7

million for FY18-19.

Homeless Youth Act: $2 million for each of

the next two biennia.

Emergency Support Services for the

Homeless: $500,000 for each of the next

two biennia.

Long Term Homelessness Services and

Supports: $2 million for each of the next

two biennia.

Chemical Dependency Prevention in

Secondary Schools: $300,000 for FY16-17.

ABLE Act Accounts for the Disabled:

$105,000 for FY16-17.

Managed Care/County-Based Purchasing

Audits (Public Programs): $684,000 for

FY16-17; $652,000 for FY18-19.

Establishing the Minnesota Task Force on

Health Care Financing: $770,000 for FY16.

Health Care Workforce Scholarships: $1.3

million for FY16-17; $1.8 million for FY18-

19.

While the agreement did not include the House

proposal for a verification audit of public program

eligibility, language was included that will require

periodic data matching to identify recipients who

may not meet eligibility criteria for the public health

care program in which they are enrolled. The data

matching must occur at least once during a

recipient’s 12-month eligibility period. The

spreadsheet reflects savings to the State of ($25.8

million) for FY16-17 and ($138.3 million) for FY18-

19. Counties will be given grants in the amount of

$1.3 million for FY16-17 and $4.4 million for FY18-

19.

Cost Shifts:

Going forward, counties will be paying

100% for days not meeting hospitalization

criteria for individuals at the Anoka

Metropolitan Regional Treatment Center.

The State books savings of ($1.8 million) for

FY16-17 and ($1 million) for FY18-19.

The $25 child support application fee is

eliminated at a cost of $34,000 in FY16.

HUMAN SERVICES

The Senate proposal that would have required

counties to pay a share for the provisional discharge

of individuals from MSOP was not included in the

final agreement.

Savings were reaped from the following sources:

BSF Underspending. State captured savings

of ($3.017 million) related to 2015 unspent

dollars instead of carrying the balance.

Child Care Assistance Attendance Records

Audit Recoveries: Savings of ($206,000) for

FY16-17; ($100,000) for FY18-19.

Group Residential Housing Reform:

Changes agency-provider agreements,

reforms recipient termination and appeals

process and allows for 6-month budgeting of

income disregards for eligibility: ($868,000)

for FY16-17; ($2.7 million) for FY18-19.

MinnesotaCare Premiums and Cost Sharing

Increases (Increased Costs for Enrollees):

($65 million) for FY16-17; ($95.5 million)

for FY18-19.

Managed Care Administrative Costs

Efficiency: ($18.2 million) for FY16-17;

($31 million) for FY18-19.

o Managed Care Payment Delay:

($135 million) for FY16-17;

($135 million) for FY18-19.

Strengthening Recovery Act Contract

Effectiveness (MA Fraud Recovery):

($70,000) for FY16-17 and ($86,000) for

FY18-19 is booked in savings for MA

enforcement.

Opioid Prescribing Improvement and

Monitoring Program: $33,000 for FY16-17;

($42,000) for FY18-19.

Expansion of Minnesota Restricted

Recipient Program (Opioid): ($519,000) for

FY16-17; ($1.1 million) for FY18-19.

Repeal Never Implemented Grants to Mental

Health Specialty Services: State books

savings of ($2 million) for FY16-17.

Disability Waiver Rate Setting Changes:

Includes a requirement that counties spend

no less than 97% of their developmental

disability waiver allocation. Counties that

miss the target will have to submit a

corrective plan to DHS, but there is no

penalty authorized in statute: State books

savings of ($1.4 million) for FY18-19.

Special Session: Although there will be a special session due to the Governor’s veto of three funding bills, the

agenda will not include health and human services. It is expected that the Legislature will meet sometime in June

and will take up the following measures:

K-12 Education

Jobs and Energy

Agriculture and Environment

Bonding

Legacy

2016 Legislative Session:

Leadership announced that the 2016 legislative session will begin at noon on Tuesday, March 8. Two of the ten

weeks will be shortened due to Easter and Passover, which fall nearly a month apart next year.

What Did Not Happen

MFIP Grant Increase: Although there was a proposal to increase the MFIP Grant by $100 a month per person, it did

NOT occur. As a result, the TANF shift did NOT happen.

5% COLA for HCBS Workers: Last year’s legislation did not include the straight exemption language for county

employees relative to this increase. The language stated that these increases have to be implemented between July 1 and

August 1, which addresses state employees, whose fiscal year ends on June 30. Because counties operate on a calendar

year, this has been an administrative burden for counties. MICA worked with Representative Rod Hamilton (R:

Mountain Lake) on the issue. He agreed to accept an amendment to his proposal that reflected that we operate under a

calendar year and, therefore, has a different timeline related to the collective bargaining process. The language that was

worked out would have provided counties with the flexibility to implement the increase any time during an existing

contract period. In the end, the 5% COLA was not included in the HHS Budget bill.

Compulsory School Attendance: Representative Carlos Mariani (DFL: St. Paul) and Senator Chuck Wiger (DFL:

Maplewood) introduced legislation which would have required school attendance until age 18.

In 2013, the age of compulsory attendance was raised from 16 to 17. Opponents of increasing it to age 18 argued that

high schools have not had time to compile data regarding the effect of the 2013 changes. In the end, the language was

not included in the Omnibus Education Budget bill.

Miscellaneous Tax Provisions: Because there was no tax bill, the following provisions were not passed into law:

Representative Sarah Anderson (R: Plymouth) had language that would have required the Department of

Revenue to study the impact of additional health-related costs incurred by counties with regard to the lack of

functionality of the MNsure eligibility determination system for MA and MinnesotaCare.

Out-of-Home Placement under the Indian Child Welfare Act (ICWA): Would have provided funding for

counties for 100% of the non-Federal share of the cost of out-of-home placement of children under the ICWA.

This would have been effective beginning with aids payable in 2017. When it became clear that there would be

no tax bill, the HHS Budget Conference Committee incorporated the measure into the final HHS conference

committee report.

2015 Legislative Session Report

Public Health

MICA Counties Were Successful on Several Initiatives

The 2015 Legislature adjourned at midnight on Monday, May 18. The Health and Human Services budget bill

was passed by both the Senate and House early in the morning of Sunday, May 17. Governor Dayton signed the

bill into law on Friday, May 22 (Chapter 71).

Because the committee was given a negative spending target of ($328 million), there were grave concerns as to

what programs would be cut. In the end, $455 million from the Health Care Access Fund was utilized, leaving a

balance of only $148 million in the fund. The final bill also included a payment delay to the managed care

organizations, as well as efficiencies related to their administrative costs.

Public health did very well in 2015. SHIP was not eliminated, and investment was made on two priority items,

including the LPH Grant and Family Home Visiting.

CH 71 – Omnibus Health and Human Services

Appropriation Bill S.F. 1458

Statewide Health Improvement Program (SHIP)

The final bill maintains base funding for SHIP, but

did fund a couple of items from the SHIP fund as

follows:

Menthol Cigarette Study: ($200,000) for

FY16 for at least one grant that must be

awarded by the commissioner to implement

strategies and interventions to reduce the

disproportionately high usage of cigarettes

by African-Americans, especially the use of

menthol-flavored cigarettes, as well as the

disproportionate harm tobacco causes in that

community. The grantee shall engage

members of the African-American

community and community-based

organizations. This grant shall be awarded

as part of the SHIP grants awarded on

November 1, 2015.

Health Projected Spending & Outcome

Reports to Increase Accountability:

($371,000) for FY16-17; ($220,000) for

FY18-19. The health care access fund base

for the state health improvement program is

decreased for forecasting, cost reporting and

analysis.

The final agreement includes language to

expand the use of SHIP dollars for dementia

- a departure from its use solely for obesity

and tobacco cessation. Beginning November

1, 2015, the commissioner shall offer grant

recipients the option of using a grant to

implement health improvement strategies

that improve the health status, delay the

expression of dementia, or slow the

progression of dementia, for a targeted

population at risk for dementia and shall

award at least two of the grants awarded on

November 1, 2015, for these purposes. The

commissioner shall coordinate grant

planning activities with the commissioner of

human services, the Minnesota Board on

Aging, and community-based organizations

with a focus on dementia. Each grant must

include selected outcomes and evaluation

measures related to the incidence or

progression of dementia among the targeted

population.

Local Public Health (LPH) Grant

A top priority for Public Health was the restoration

of the LPH Grant to at least the pre-2003 funding

level. Established in 1976, the LPH Grant has not

been increased since 1997, when it rose by $5

PUBLIC HEALTH

million per year. That increase was more than

erased by a 29% reduction in the LPH Grant in

2003, when several categorical grants were

combined with the LPH Grant into a single block

grant, which was then further reduced.

The HHS Budget Conference Committee adopted

the Governor’s proposal on increasing the block

grant with an investment of $2 million for the next

two biennia, but it is limited to counties in Greater

Minnesota, as well as tribes. Although full

restoration was not made in 2015, we will continue

to work in that direction. (Article 8, section 50.)

Family Home Visiting

TANF Home Visiting funding was maintained

(approximately $7.8 million per year to be

distributed to CHBs and tribes). Additional dollars

were appropriated for Evidence-Based Home

Visiting programs that use the Nurse-Family

Partnership model:

$2.7 million for FY16-17

$75,000 in FY16 to MDH for new,

one-time funding for training new

home visitors to ensure coordination

across programs; and

$575,000 in FY16 and $2 million in

FY17 in increased funding is

appropriated for existing NFP

programs.

The $2 million for NFP is included

in the base for future years. Grants

are to be awarded to CHBs or tribal

nations in both metropolitan and

rural areas of the State.

Article 14, section 3.

Safe Harbor for Sexually-Exploited Youth

Money was appropriated from both the MDH and

DHS budgets as follows:

MDH: Safe Harbor for Sexually Exploited

Youth Outreach: $1.4 million for each of the

next two biennia for grants to increase the

number of regional navigators; training for

professionals who engage with exploited or

at-risk youth; implementing statewide

protocols and best practices for effectively

identifying, interacting with, and referring

sexually-exploited youth to appropriate

resources; and program operating costs.

DHS: Safe Harbor for Sexually-Exploited

Youth Child and Economic Support Grants:

$1.6 million for each of the next two biennia

for emergency shelter and transitional and

long-term housing beds for sexually-

exploited youth and youth at risk of sexual

exploitation. Of this appropriation,

$150,000 in FY16 and $150,000 in FY17 are

for statewide youth outreach workers

connecting sexually-exploited youth and

youth at risk of sexual exploitation with

shelter and services.

Health Professionals Education Loan Forgiveness

Loan forgiveness for health professionals, including

public health nurses; $5.3 million for each of the

next two biennia.

Home and Community-Based Services (HCBS)

Scholarship Program

$5 million for each of the next two biennia for a

HCBS scholarship program that will give money to

providers to recruit and train staff in nursing and

other health-related fields.

Other Public Health Highlights:

Family Planning Special Projects (Counties

Eligible): $2 million for each of the next

two biennia.

Positive Alternatives (Grants to Private/Non-

Profits): $2 million for each of the next two

biennia.

Advance Care Planning Grant (End of Life

Planning): $250,000 for FY16-17.

Minnesota Poison Information Center: $1.5

million for each of the next two biennia.

Minnesota Stroke System: $700,000 for

each of the next two biennia.

Federally Qualified Health Centers (Safety

Net for the Uninsured): $2 million for

FY16-17.

Health Disparities Data Analysis: $500,000

for each of the next two biennia.

PUBLIC HEALTH

Epinephrine Access (Schools; Camps;

Daycare): $12,000 for FY16-17; $8,000 for

FY18-19.

Early Dental Prevention Initiative: $312,000

for FY16-17; $280,000 for FY18-19.

Steve’s Law: Opiate Antagonist (Grants to 8

EMS programs): $290,000 for FY16-17.

Suicide Prevention: $449,000 for FY16-17;

$416,000 for FY18-19. Requires MDH to

examine data collection and determine how

it can be made available in a more timely

manner.

Health Care Grants for Uninsured

Individuals: $2.5 million for each of the

next two biennia:

Includes $437,500 for Community

Health Centers for each of the next

two biennia.

Community Mental Health Programs

Dental Provider Grants

Emergency MA Outlier Grant

Program

Vulnerable Adults and State-Owned

Facilities where Staff from Supplemental

Nursing Services Agencies (SNSAs) is

Used: $3 million for each of the next two

biennia.

Protection from Lead and Radon Hazards:

$239,000 for FY16-17; ($73,000) for FY18-

19.

Miscellaneous

Safe Routes to School (Chapter 75):

The “lights on” Transportation bill contains

$500,000 for FY16-17 and $500,000 for FY18-19

for the safe routes to school program. A statutory or

home rule charter city, county, or town is eligible to

receive funding under this section only if it has

adopted regulations that require safe routes to school

infrastructure in developments authorized on or after

June 1, 2016. (Chapter 75, Articles 1 and 2, section 32.)

Flame Retardant Chemicals (Chapter 62)

Governor Dayton has signed a bill that bans four

flame-retardant chemicals from children's products

and upholstered furniture. The ban, which will not

take effect until July 2018, was heavily supported by

firefighters, who say they were being exposed to

more cancer-causing chemicals on the job. They

pointed to scientific studies showing that, when

burned, the chemicals produce carcinogens that can

be absorbed through the skin. The newly-signed law

also orders a study to give lawmakers more

information about regulations of flame retardants in

a variety of products, including carpeting and

mattresses. Governor Dayton's signature came after

the measure received broad support in both the

Republican-led House and DFL-led Senate. (Chapter 62.)

Healthy Eating, Here at Home (Chapter 77)

$325,000 for each of the next four years. The

program is established to provide incentives for low-

income Minnesotans to use federal Supplemental

Nutrition Assistance Program (SNAP) benefits for

healthy purchases at Minnesota-based farmers'

markets. It will be administered by the Minnesota

Humanities Center, which will allocate grant funds

to nonprofit organizations that work with Minnesota-

based farmers' markets to provide up to $10

vouchers to SNAP participants who use electronic

benefits transfer (EBT) cards for healthy purchases.

Funds may also be provided for vouchers distributed

through nonprofit organizations engaged in healthy

cooking and food education outreach to eligible

households for use at farmers' markets. The measure

was included in the Omnibus State Government

Finance Bill. (Chapter 77, Article 1, section 25, and

Article 2, section 17.)

Powdered Alcohol (Chapter 9)

Included in the Omnibus Liquor bill is a provision

that prohibits the sale of the product until 2016.

Although the federal government has approved the

sale of powdered alcohol, a number of states are

looking for ways to ban it before it even hits store

shelves. Proponents of the measure cited concerns

about the potential of product misuse, including by

minors. Under the year-long ban, regulatory

measures and product safety will be studied.

(Chapter 9, Article 2; section 13.)

Avian Influenza (Chapter 12)

Due to the recent avian influenza outbreak, the

Legislature and Governor took quick action. On

May 1, 2015, the House and Senate approved

PUBLIC HEALTH

legislation to make approximately $900,000

available to both the Department of Agriculture and

the Board of Animal Health immediately:

$514,000 to the Commissioner of

Agriculture for the costs of avian influenza

emergency response activities not covered

by federal funding. This is a onetime

appropriation and is available until June 30,

2016.

$379,000 to the Board of Animal Health for

the costs of avian influenza emergency

response activities not covered by federal

funding. This is a onetime appropriation and

is available until June 30, 2016.

There was also substantial funding contained in the

Omnibus Agriculture and Environment Budget bill,

which Governor Dayton vetoed on Saturday, May

23. This issue will be part of the discussion during

the Special Session, which the Governor has yet to

call. The vetoed bill contained the following

provisions:

Study: $1 million would have been transferred to

the Board of Regents of the University of Minnesota

to study what is causing avian flu and how it is spread.

Emergency Response Funding:

$3,619,000 to the Department of Agriculture

to purchase necessary euthanasia and

composting equipment and to reimburse

costs incurred by local units of government

directly related to avian influenza emergency

response activities that are not eligible for

federal reimbursement.

$1,853,000 to the Board of Animal Health

for avian influenza emergency response

activities. Money could be used to purchase

necessary euthanasia and composting

equipment.

$103,000 to the Commissioner of Health for

avian influenza emergency response

activities.

$350,000 to the Commissioner of Natural

Resources for sampling wild animals to

detect and monitor the avian influenza virus.

The appropriation also could have been used

to conduct serology sampling, in

consultation with the Board of Animal

Health and the University of Minnesota

Pomeroy Chair in Avian Health, from birds

within a control zone and outside of a

control zone.

$544,000 to the Commissioner of Public

Safety to operate the State Emergency

Operation Center in coordination with the

statewide avian influenza response activities.

Appropriations under this paragraph could

also have been used to support a staff person

at the state's agricultural incident command

post in Willmar.

Funding would have been available the day following enactment until June 30, 2017.

Loans: $10 million would have been appropriated

from the General Fund to the Commissioner of

Agriculture for transfer to the rural finance authority

revolving loan.

Special Session: Although there will be a special session due to the Governor’s veto of three funding bills, the

agenda will not include health and human services. It is expected that the Legislature will meet sometime in June

and will take up the following measures:

K-12 Education

Jobs and Energy

Agriculture and Environment

Bonding

Legacy

2016 Legislative Session:

Leadership announced that the 2016 legislative session will begin at noon on Tuesday, March 8. Two of the ten

weeks will be shortened due to Easter and Passover, which fall nearly a month apart next year.

What Did Not Happen

Student Surveys: A provision that was discussed in the Senate Education Committee would have

required parental permission for a student to participate in school surveys and other solicitations for

personal information and opinions. There was concern that this would impede the Minnesota Student

Survey (MSS), a public health tool in assessing risky behaviors such as sexual activity, drug and

tobacco use, driving practices (seat belt use), violence and bullying. The MSS currently provides an

opt-out for parents, and its student participation is voluntary. The proposal would have required an

opt-in, which would have reduced participation. MDE staff testified that federal laws are already in

place to protect student and parent privacy and participation. The measure was not included in the

Omnibus Education Budget bill.

Miscellaneous Tax Provisions: Because there was no tax bill, the following provisions were not

passed into law:

The repeal of the annual inflation adjustment on the cigarette excise tax;

Freezing the cigarette excise tax at the current rate of $2.90 per pack; and

Establishment of a tax of 30 cents per milliliter of nicotine solution on vapor products.

2015 Legislative Session Report

Transportation And

Capital Budget

“Lights On Only” Transportation Bill, $373 Million Bonding Bill –

2015 turned out to be the year of transportation that wasn’t. Both the Republican House and the DFL Senate

agreed the problem of transportation infrastructure funding was dramatic. Both agreed the size of the challenge

was $7 billion - $10 billion over ten years. Both passed major funding bills but their respective solutions could

not have been farther apart. In the end, only a “lights on” transportation funding bill became law with some

transportation policy changes.

S.F. 1647

Transportation Finance Bill The “Lights on” bill that passed bi-partisanly included:

● $30M of general fund spending and the “base”

(current law) appropriation for counties. The

bill passed the Senate 65-0 and the House 70-

59. It included:

○ $5M Greater MN Transit

○ $5M Rail grade crossing safety

○ $3M Port development assistance

program

○ $145K Emergency railroad track repair

○ $12.5M Small city road and bridges$

○ 32K Roosevelt tower

○ $353K DPS Purchasing Power (State

Patrol, Admin, & Capitol Security)

○ $900K St. Cloud & Duluth Emergency

Response Teams

○ $858K (Trunk Hwy Fund part and

117K (GF Part) State Plane Purchase

● There was also redirection of unencumbered

funds from the 2014 FY for transit way projects

in the amounts of:

○ $2M over two years for Suburban

Transit Providers for a demonstration

project to provide service between other

than Minneapolis and St. Paul.

○ $27.8M for Met Council transit

operations

● Airports Fund--

○ $39.6 M Airports development

assistance

Transportation Policy Changes

There was no separate transportation policy omnibus

bill which passed this session but there were certain

policy changes within the transportation “lights on”

bill. The following are some of those changes:

● Roadway Design Standards: By August 15,

2016, in collaboration with city and county

engineers, the commissioner of Transportation

must establish and adopt new design standards

to apply consistently to similar roads on all

systems. The impetus for this language is to

increase maneuverability in built up-urban

environments where there is limited right-of-

way.

Traffic signal timing optimization: This will require

road authorities with principal arterials and other

roads of traffic counts over 20,000 to complete an

inventory of all the traffic signals under its

ownership and submit it to the Dept of

Transportation. The affected roadway authority

must develop and implement a traffic signal

optimization plan and annually certify compliance

with that plan to MNDOT. Re-evaluation must

occur at least every five years.

● AMC and the MN County Engineers

Association recommended a change to the

CSAH formula which was included in this bill.

This states that all transportation revenue

directed to the CSAH fund, regardless of source

(excluding the leased motor vehicle sales tax),

TRANSPORTATION

be split with 68% distributed according to the

pre-2008 apportionment sum formula and 32%

distributed using the excess sum formula

previously adopted for new revenues received

in 2008 and after.

● Mini-truck sunset repeal: This provision

eliminates the sunset on the authority for mini

trucks to be operated under a special permit

issued by local units of government. Previously,

mini trucks would no longer be permissible on

public roads starting August 1, 2015.

● MnDOT Local Cost Participation: This directs

the Commissioner of Transportation, in

consultation with local government

representatives, to adopt a policy by September

1, 2015, concerning cost participation for

cooperative construction and maintenance

projects. The policy must minimize the local

cost share, while complying with constitutional

restrictions on the use of the trunk highway

fund.

● Portable Toilet Truck Weights: This would

create an exemption from vehicle weight limits,

and associated criminal penalties, under spring

load restrictions. The exemption applies to

vehicles that exclusively service portable

toilets, are in use only for liquid waste

collection, and have a weight of up to 14,000

pounds per axle and 26,000 gross vehicle

weight.

● A elected official from a city participating in

opt-out transit service is added to the

Metropolitan Council’s Transportation

Advisory Board (TAB)

● The requirement to obtain one appraisal before

commencing an eminent domain acquisition is

limited to acquisitions of over $25,000. A

“minimum damage report” may be obtained for

an acquisition of less than $25,000. The

minimum damage report must be provided to

the owner in lieu of the appraisal. The

maximum for owner appraisal reimbursements

of up to $5,000 on properties other than one and

two family residential properties is raised from

acquisitions of $10,000 or less to acquisitions

of $25,000 or less. (Below that, the maximum

reimbursement is limited to $1,500.)

● A property owner or occupant of property

abutting a road right-of-way (other than

controlled access roadways) may apply for a

permit for temporary placement, for up to 14

days, of a pressurized flexible force main for

the transport of manure for field application.

The property owner or occupant must place the

force main within the backslope of the right-of-

way where possible; place pumping equipment

outside the right-of-way; and meet all of the

permit requirements identified by the road

authority.

● An employer contribution for health insurance

coverage is provided for the spouse and

dependents of volunteer firefighter killed in the

line of duty

● Only certification by DPS is required for over

dimensional load escort drivers

● The State Patrol vehicle escort fee for over

dimensional load shall be set by the

Commissioner of Public Safety

● MNDOT shall established local contribution

rates by June 1 annually for state or federally-

assisted airport projects

● Legislative Route 228 is turned backed to Otter

Tail County once an agreement is executed

between the county board and MNDOT

Legislative Route 275 is turned back to Lac qui

Parle County once an agreement is executed

between the county board and MNDOT

Transportation Packages That Did Not Pass

Both the House and Senate recognized the size and

scope of Minnesota’s transportation infrastructure

funding crisis. Both passed major but very different

bills to address the problem. The following are some of

the significant provisions that passed the Senate or

House but did not become law.

Senate:

● 6.5% Gross Receipts Tax - $814M

● Registration Tax increase - $181M

● ¾ cent Increase Metro Sales Tax - $600M

House:

● Sales Tax on Auto Parts - $384M

● 90% of Unreserved THF Balance - $220M

● Additional Federal Funds THF - $97M

● General Fund CSAH - $114M

● Increase Truck Weights

TRANSPORTATION

Capital Investment

Ultimately, a capital investment bill, Special Session

Ch.5, passed during the special session.

The Jobs, Economic Development and Housing bill,

Special Session Ch. 1, appropriated $1.8 million to

fund improvements to Hwy. 95 in Cambridge. No local

match is required.

The Bonding bill included the following county-related

items:

Project Title Fund

DEPARTMENT of

TRANSPORTATION

(In $00s)

Local Bridge Program GO/TF 7,410

Local Road Program GO/TF 4,290

Local Road Program - Sandstone GO/TF 850

Local Road Program - Willmar GO/TF 3,770

Minnesota Valley Regional Railroad

Authority

GO 1,000

Plymouth - Vicksburg Lane Railroad Crossing

GO 4,700

Rainy River - Railroad Grade

Crossing

GO 460

Richfield - 77th Street Underpass GO 10,000

Trunk Highway Bonding TH Bond 140,000

Local Roads Disaster Relief GO / TF 800

EMPLOYMENT AND ECONOMIC DEVELOPMENT

Transportation Economic Development

GO 2,000

Sauk Center - Eagle's Nest Veterans

Home

GF 300

DEPARTMENT OF NATURAL RESOURCES

Flood Hazard Mitigation - Otter

Tail County

GO 10,000

Flood Hazard Mitigation GO 13,549

Flood Hazard Mitigation Grants

(includes money for restoration of

the Prior Lake outlet channel)

GO 2,515

Flood Hazard Mitigation Grants -

GF

GF 500

POLLUTION CONTROL AGENCY

Capital Assistance Program (Clay, McLeod, & Dodge Co. WLSSD)

GO 1,276

Capital Assistance Program - Polk

Co. Solid Waste

GO 8,000

DEPARTMENT OF CORRECTIONS

St. Louis County - Northeast

Regional Corrections Center

GO 1,200

TRANSPORTATION

Leased Motor Vehicle Sales Tax

No Change in Current Law

Both the House and Senate spent considerable time on

this issue. Both passed provisions that would have

increased funding significantly compared to current

law. However, the proposed solutions of the House and

Senate varied greatly hinging on whether to include

Hennepin and Ramsey County. The Senate did and the

House did not. Current law consisting of a 50/50 split

after the first $32M of revenue collection remains. The

following is a chart that shows future revenue

projection for the five suburban collar counties. Greater

Minnesota Transit will receive an additional one-time

$5M appropriation in addition to its 50% share of the

leased motor vehicle sales tax in excess of $32 million

annually.

Current Law Ring County Leased Motor Vehicle Sales Tax Distribution Based on 2014 Population Estimates (in $000)

2015 2016 2017 2018 2019

Anoka 5,175 5,759 6,207 6,314 6,314

Carver 1,447 1,610 1,735 1,765 1,765

Dakota 6,194 6,893 7,429 7,557 7,557

Hennepin 0 0 0 0 0

Ramsey 0 0 0 0 0

Scott 2,075 2,309 2,489 2,532 2,532

Washington 3,760 4,184 4,510 4,587 4,587

Total 18,651 20,755 22,370 22,755 22,755

Modifications to the Responsible

Contractor Law

Last year’s Responsible Contractor Law was modified

to add motor carriers providing for-hire transportation

of materials, equipment or supplies to the law’s

requirements while excluding design professionals

licensed under MS 326.02. The definition of

“material suppliers” not subject the law was clarified

to be a business or natural person that supplies

materials, equipment, or supplies to a subcontractor or

contractor on a project, including performing delivery

or unloading services in connection with the supply of

materials, equipment, or supplies. However, a

“material supplier “does not include a natural person

or business that delivers mineral aggregate such as

sand, gravel, or stone that is incorporated into the

work under the contract by depositing the material

substantially in place, directly or through spreaders,

from the transporting vehicle. Tax increment

financing is excluded in determining whether a

construction contract exceeds $50,000 and is thus

subject to the law’s requirements. A repeated

violation of minimum wage requirements (causing

disqualification as a responsible contractor), is one

where the failure to pay the minimum occurs on two

or more separate and distinct occasions over the three

year period. Verification of compliance with the

minimum requirements of the law need not be

notarized and can be submitted electronically as part

of an electronic bid. Prior to execution of a

construction contract, the successful prime contractor

shall submit to the contracting authority a

supplemental verification under oath confirming

compliance of subcontractors and motor carriers with

the law’s minimum requirements. Annual verification

under oath that a motor carrier meets all the law’s

minimum requirements shall be procured by prime

contractors or subcontractors. The above changes

apply to all solicitation documents issued on or after

July 1, 2015

2015 Legislative Session Report

Public Safety and

Corrections

A Strong Year for Counties in Public Safety

In 2015, the new House majority realigned the committee structure to create a single committee, Public Safety

and Crime Prevention Policy and Finance, dealing with all areas of public safety, corrections and courts. This

arrangement more closely lines up with the Senate, and in fact, the Senate assigned jurisdiction over part of DPS

to their Judiciary committee, meaning the alignment was nearly identical. The outcome of that was that these

committees were very busy hearing both budget and policy bills for on a fairly broad range of issues. As is very

often the case, the public safety and judiciary portions were among the least controversial of all parts of the state

budget. In this context, counties were fared very well. On the policy side of things, there were more controversial

topics and far less consensus. For counties, this was a mixed bag. There were some changes made to how funding

is delivered for county probation services. This change will bring greater transparency and simplification to the

process, however the push that MICA along with MACCAC and AMC have been making toward a single

probation funding stream made no progress. Additional details on both funding and policy can be found below.

CH 65 – Omnibus Public Safety Finance and

Policy Bill S.F. 878 Budget Provisions

The base for this area was roughly $2 billion. The

Governor initially proposed additional spending of

$149 million, the Senate $117 million, and the

House $82 million. The final target was a little

below the Senate proposal, but the conference

committee agreed to transfer funds from a couple of

special revenue accounts to increase the available

spending.

County Funding

Counties had fared very well from the start of this

process. The Governor had proposed an additional

$1.55 million each year for CCA counties, $200,000

for CPO counties, $2 million for Intensive

Supervised Release (ISR), authority for the

Department of Public Safety (DPS) to raise the 911

fee and use $3.25 million each year for matching

grants to counties for ARMER upgrades and $11

million added to the disaster aid contingency

account. With the exception of the disaster aid

account, which saw lower levels of funding, the

House and the Senate followed the Governor’s lead

very closely as they assembled their budget

proposals. It was an excellent starting point for

counties. The final bill proved even better for county

probation and positive for other areas of county

interest. The House and Senate also included a

number of grants under the DPS Office of Justice

Programs, many of which will have positive county

impacts. The final spending is as follows:

$1.8 million each year in increased CCA

subsidy

$295,000 each year for CPO reimbursement

$1 million each year in new ISR funding

$85,000 each year to Scott County to make

for a funding shortfall that has existed since

they transitioned to CCA in 2006.

$1 million in additional funding to the

disaster aid contingency account.

Full authority for emergency

communications spending of $3.25 million

each year for ARMER grants to counties and

$4.7 million each year for next generation

911 services

Roughly $3 million in grants through the

Office of Justice Programs. Highlights for

counties include:

o $750,000 for Youth Intervention

Programs

PUBLIC SAFETY AND CORRECTIONS

o $675,000 for Victims’ Services

Programs

o $400,000 for Child Advocacy

Centers

o $250,000 in sex/human trafficking

prevention grants

o $300,000 for the Juvenile Detention

Alternatives Initiative (JDAI)

DOC Institution Funding

The DOC received their full request for operating

cost increases for the prisons totaling $24.7 million

for the biennium. They did not receive any of their

requested funds for increase in nursing coverage,

interoperable health records or costs related to the

transition to state-run food service as opposed to the

current contract model. Those requests totaled $10.8

million over the biennium.

Court Funding

The bill also included significant increases to the

courts for judge and employee salary increases and

benefit costs. These costs amount to roughly $34.5

million over the biennium. The courts’ request for an

increase totaling $7.5 million to raise the juror per

diem and mileage rates was not funded by the

legislature.

Public Defender Funding

The Board of Public Defense was given their full

request of for compensation and insurance cost

increases totaling $6.2 million over the biennium.

They were also given $6.5 million, three-quarters of

that in the second year of the biennium for caseload

reduction through the addition of attorneys. By the

end of the biennium, they are expected to have

nearly 45 more attorneys spread throughout the state

than they have currently.

Public Safety and Judiciary Finance – Policy

Provisions

The policy provisions included in omnibus public

safety and judiciary budget showed greater divisions

between the House and Senate than the finance

provisions, but was still not terribly controversial.

For the most part if a proposal was only included by

one side or the other it was left out of the bill. There

are several significant examples of how this played

out with voting rights for felons, juvenile justice

modifications, forfeiture changes, and a number of

new or expanded criminal penalties left out of the

bill. Some of those are described in more detail alter

in this report. Here are highlights of included policy

provisions of most interest to counties:

Simplification of the probation funding

model. This is not the proposed single

funding model that MICA, MACCAC and

AMC have been pushing, but it is a

simplification to the funding system by

consolidating the multiple grant funds within

each delivery system to one fund for each,

but still keeping each delivery system

separately funded. This has the added benefit

of creating transparency for counties should

they wish to consider moving from one

delivery system to another.

Changes to provide a “necessity defense” to

the implied consent (the civil, driver’s

license related) portion of a DWI

proceeding. Similar to the existing defense

available under criminal law, it would allow

someone to present a possible defense that

the alternative to driving under the influence

is more harmful than the driving violation.

Further modification to the controlled

substance schedule to help the Board of

Pharmacy and law enforcement stay ahead

of the synthetic drug manufacturers.

Guidelines related to the treatment of

incarcerated women that are pregnant as well

as guidelines related to testing incarcerated

women to see if they are pregnant.

Expanded use of ITV for portions of civil

commitment proceedings.

Probation Funding Reform

Beyond what was included in the Omnibus bill,

there was additional legislation proposed that would

more fully develop the single funding initiative. This

bill would have put together a formula to divide the

county’s state appropriation in CPO counties where

there is both a county department and DOC staff

providing services. This last step was acknowledged,

but not complete as part of the 2014 proposal and

was identified as a stumbling block to the proposal

proceeding. Despite the fact that this year’s proposal

was only to complete the formula and allow full

vetting next year, not implementation at this time,

PUBLIC SAFETY AND CORRECTIONS

the DOC was opposed and the bill did not progress

other than a Senate hearing.

Automated License Plate Readers (LPR)

Legislators of all perspectives on the issue of law

enforcement use and data collection related to LPR

were eager to get legislation passed this year. The

temporary classification of the data as private was

set to expire this summer leaving no limits on how

the devices were used, how long the data could be

kept, and all data collected would be public

information. That was a situation that neither law

enforcement not privacy advocates saw as ideal. In

the end, after a very protracted process, particularly

in the House, there was a compromise reached. Law

enforcement agencies will continue to be allowed to

use LPR. However, data collected may only be

retained for 60 days unless it is part of an active

investigation and during that time it is classified as

private data. Strict limitations were put in to place on

how that data can be used, who is allowed to access

the data, and how it can be shared with other law

enforcement agencies. In addition, a biennial audit

of these data systems and their use is required of any

agency that chooses to deploy LPR.

Juvenile Justice Issues

A broad group of advocates for juvenile justice

issues came together to propose a package of

changes to juvenile law provisions. The centerpiece

of this proposal were changes to sentencing law as

they apply to life without parole sentences for

juveniles (even those certified to stand trial as an

adult). This action was taken in light of the U.S.

Supreme Court ruling in Miller v. Alabama that

found these sentences to be unconstitutional. The

proposed solution included changes to Minnesota

sentencing statute to conform to the Court ruling and

also applied those changes retroactively to the

handful of current inmates serving life without

parole for crime committed while under18. That

retroactivity piece, in particular, was very

controversial so despite the inclusion of the language

in the Senate omnibus bill, it did not get included in

the final bill. Other juvenile justice provisions in the

bill were not without controversy of their own, but

less so than the sentencing piece. However they also

did not make it through the process. The other

provisions included:

Revisions to the purpose clause of the

juvenile code.

Expanded authority for police departments to

run juvenile diversion programs.

Requirement that policy be developed about

the use of restraints on juveniles in the

courtroom with the goal of lessen their use.

Forfeiture

Two separate bills were introduced governing

burden of proof related to judicial forfeiture as well

as requirements for reporting and limits on use of

proceeds from forfeited property. The former

provided protection to individuals that forfeited

property and were later determined to be innocent

owners. The latter bill would have been an issue for

some counties as it disallowed the use of forfeiture

proceeds as a funding mechanism for base salaries

and other routine costs of law enforcement agencies.

Both bills passed the House Civil Law committee

but received no further action in that body. Both bills

were included in the Senate omnibus public safety

and judiciary bill, but were ultimately not included

by the conference committee.

Conciliation Court Jurisdiction Modifications

This proposal sets forth a process by which counties

can file conciliation court actions for debts owed to

the county by non-residents. Previously, those

judgments would have to be sought in the debtor’s

county of residence. This bill allows the county to

file locally, easing the burden of getting these

judgments for fees owed to the county for such thing

as detox services, or any other debt that might be

owed to the county by a non-resident.

What Did Not Happen

Sex Offender Supervision: A bill authored by Sen. Kathy Sheran was introduced and was nearly identical to the

unsuccessful legislation from 2014 that would implement many of the recommendations from the DHS sex offender task

force. Other interested legislators had made it clear that they were unwilling to act on this issue so long as the current

class action lawsuit against the Minnesota Sex Offender Program (MSOP) was still pending. As such, the bill did not

even have a House companion; much less make any legislative progress.

Police Body Cameras: Much like the LPR issue, there was significant debate over the use of police body cameras and

how the data that results from their use is treated. The issues contemplated during the debate included what

circumstances dictate whether the video is public or private, now long the data is kept, what rights citizens have to ask

that a body camera be turned off, what particular situations dictate that they must be turned off and several other

technical details. The Senate did include a comprehensive proposal as part of their LPR issue. The House did not take up

the issue at all and the changes were not included in the final bill.

Law Enforcement Use of Drones: Legislation was introduced that would put parameters around the use of unmanned

aerial aircraft, or drones, by law enforcement agencies. Significant work was done to find a compromise between privacy

advocates and law enforcement and a version of the bill was included in the Senate omnibus public safety and judiciary

bill. The House did not act on their version of the bill and the provision was ultimately dropped in conference committee.

One important note, the bill did only apply to law enforcement agencies and would not have limited other county uses,

such as aerial surveying.

Traffic Diversion Programs: Bills were introduced in both bodies that would have authorized counties to operate

educational programs as a form of diversion or minor traffic violations. The bills closely resembled the bills from the

2014 session. Unlike 2014 when there was significant debate and movement on the issue, but no success, this year saw

no action taken on the bills in either house.

2015 Legislative Session Report

Human Resources &

General Governance

PERA Contribution Increase Cancelled; Veterans Preference

Law Modified

Human Resource Changes

CH 68 – Omnibus Retirement Bill

PERA Changes

By action of the Legislative Commission on

Pensions and Retirement, the previously authorized

¼% contribution rate increase for employers and

employees each, effective January 1, 2016, was

cancelled. Ch. 68 granted further flexibility to all

three statewide systems in determining whether

future contribution rate increases are needed by

allowing them to consider other factors besides

current actuarial valuations such as the market value

of asset not yet recognized in the actuarial

valuations.

The bill also lowered the interest assumption for

MSRS and PERA from 8.5% to 8%. (TRA remains

at 8.5% because of its current underfunding with the

understanding that the plan will have to implement

the 8% interest rate assumption in the future.) The

change in the interest rate assumption should not

necessitate a contribution rate increases because

under current law, the financial effects of a change

in actuarial assumptions can be amortized over 30

years. However, the change will delay when the

annual cost of living increase for retiree benefits will

increase from 1% to 2.5%.

The state subsidy for amortizing the deficiency of

the Minneapolis Employees Retirement Fund

(MERF) that was folded into PERA was reduced to

$6 million for two years and then increased to $16

million per year in 2018. The employers –

Minneapolis, Hennepin County, the Minneapolis

School District and the Metropolitan Airports

Commission – will pay the difference to bring the

total annual payment to $37 million.

The law governing the election of public employees

to be covered by social security is clarified. It

provides that those employees – such as some

members of the PERA Correctional Plan – who

elected out of social security coverage via a divided

vote can elect back into social security coverage via

written request to the director of PERA. The cost of

all future elections for social security coverage must

be borne by the employer, who is required to select

the voting method.

Ch. 77

Veterans Preference Hearings

A drafting error leaves contradictory language in the

law that at one point says that a veteran facing

discharge has a choice of a hearing before a civil

service board/merit authority or a three member

panel and immediately after that says the hearing is

held before the civil service board/merit authority, if

one exists. The law clarifies that the employer pays

the cost of hearing besides the veteran's attorney

fees if it goes before civil service board or merit

authority. The costs of the hearing besides the

veteran's attorney fees are split if it goes before a

three-member panel. In either case, the veteran’s

attorney fees are paid by employer if the veteran

prevails at the hearing and the hearing reverses all

aspects of the discharge.

Ch. 43

Workers Compensation Changes

Beginning for patients discharged on or after

January 1, 2016, payment of in-patient hospital

services, articles and supplies shall be limited to a

maximum of 200% of the Medicare diagnosis-

related groups. If the hospital's total usual and

customary charges for services, articles, and supplies

HUMAN RESOURCES AND GENERAL GOVERNANCE

for a patient's hospitalization exceed a threshold of

$175,000 (adjusted annually for the percent change

in average total charges per inpatient case),

reimbursement must instead be paid at 75 percent of

the hospital's usual and customary charges.

No later than September 1, 2015, workers'

compensation payers must provide the patient's

name and patient control number on or with all

payments made to a provider under this chapter. The

information provided on or with the payment must

be sufficient to allow providers to match the

payment to specific bills.

Each workers compensation payer must place on its

web site by January 1, 2016:

1. the name of each clearinghouse with which the

workers' compensation payer has an agreement

to exchange or transmit electronic transactions,

along with the identification number each

clearinghouse has assigned to the payer

2. information about how a health care provider

can obtain the claim number assigned by the

workers' compensation payer for an employee's

claim, and

3. the name, phone number, and e-mail address of

contact persons who can answer questions

related to electronic transactions on behalf of the

workers' compensation payer and the

clearinghouses with which the payer has

agreements.

If the worker requests, workers compensation

payments must be made by EFT beginning January

1, 2016. No later than July 1, 2016, health care

providers must electronically submit copies of

medical records or

reports that substantiate the nature of the charge and

its relationship to the work injury

Chapter 15

Right to Try (Experimental Drugs)

An individual who:

1. has a terminal illness;

2. has, in consultation with a physician, considered

all other treatment options currently approved by

the FDA;

3. has been given a prescription or recommendation

by a physician for an investigational drug,

biological product, or device; and

4. has given informed consent, in writing, for the

use of the investigational drug, biological

product, or device, or if the patient is under the

age of 18, or lacks the mental capacity to provide

informed consent, a parent or legal guardian has

given informed consent, in writing, on behalf of

the patient

may receive an investigational drug, biological

product, or device.

There is no requirement for the costs to be covered

by private health coverage, a state public health care

program, the state employee group insurance

program, or a program administered by a state or

local government agency that provides health care

services to inmates residing in a state or county

correctional facility.

Other Local Governance Changes

Ch. 70

Elections

The county attorney’s duty to prosecute violations of

the voter registration laws are to be governed by

generally applicable standards regarding the

prosecutorial functions and duties of a county

attorney, provided that the county attorney is not

required to proceed with the prosecution if the

complainant withdraws the allegation of a violation.

Willful violation of the voter registration laws by

any public employee constitutes just cause for

suspension without pay or dismissal of the public

employee.

“Individuals granted the right to vote in Minnesota

by federal law” is clarified to include those whose

parent resided in Minnesota at least 20 days

immediately prior to their departure.

The existence of a vacancy in nomination for a

nonpartisan office (that can be filled by filing an

affidavit of candidacy and paying a filing fee, or by

filing an affidavit of candidacy and filing a petition

in lieu of a filing fee) is expanded to include when

only one or two candidates have filed and one

candidate is determined to be ineligible to hold that

office. An individual may petition the court for a

candidate’s removal from the ballot as being

ineligible to hold that office. An elections to fill a

HUMAN RESOURCES AND GENERAL GOVERNANCE

vacancy in nomination for constitutional office is

added to the election days for which employees must

be granted time off to vote.

An individual domiciled either permanently or

temporarily with a candidate is ineligible to be an

election judge. High school students age 16 or over

who reside in an adjacent county can be appointed as

a trainee election judge.

The time for opening mail or absentee ballots is

changed from the fourth to the seventh day before

the election.

A publicly funded primary recount for a statewide

federal office, state constitutional office, statewide

judicial office, congressional office or district

judicial office (when the difference is less than .25%

or 10 votes or less when the total number of votes

cast are 400 or less) must be received by the filing

officer no later than 5:00 p.m. on the second day

after the canvass of the vote. For a county office,

the request for publicly funded recount must be

received by 5:00 p.m. on the fifth day after the

canvass of a primary or the seventh day after of

canvass of special or general election.

The filing fees set by ordinance for municipal offices

in charter cities may not exceed:

(1) in first class cities, $80;

(2) in second and third class cities, $40; and

(3) in fourth class cities, $15.

Fees set by charter are not subject to the above

limits.

An election emergency task force is created. The

task force must research the following issues:

(1) potential emergency scenarios that could impact

elections;

(2) current capacity and authority to address

emergency situations;

(3) potential direct and indirect costs of an

emergency that disrupts elections;

(4) maintaining ballot security in event of an

emergency; (5) continuity of operations procedures;

and

(6) communications plans and key emergency

contacts.

A “Uniform Faithful Presidential Electors Act”

provides that the Secretary of State as may reject a

presidential elector’s ballot if he or she casts a ballot

inconsistent with the elector’s now required pledge.

The secretary of state will then allow an alternate

also selected by the party of the presidential victor to

cast his or her ballot. That ballot along with the

other electors ballots are then counted and recorded

on the certificate of vote submitted to the United

States Secretary of State.

Numerous technical changes are made in the

configuration of ballots largely to update the law for

the optical scan systems now used to count ballots.

Ch. 38

Crow Wing County Auditor- Treasurer and

Recorder Appointment

Crow Wing County was granted to the authority to

appoint its auditor-treasurer and recorder, subject to

a reverse referendum.

Ch. 9

Omnibus Liquor Bill

Sunday off-sales of 64 ounces “growlers” by

licensed small brewers that do not produce more

than 20,000 barrels annually of its own brands of

malt liquor can be authorized by a municipality.

(Annual off-sales of licensed small brewers are

limited to no more than 500 barrels annually.)

Municipality can specify the hours during which

such Sunday off-sales can occur.

Minnesota micro-distilleries that produce less than

40,000 gallons per year may make off-sales of one

375 milliliter bottle per customer per day of product

manufactured on-site as long as the product is also

available for wholesale distribution.

HUMAN RESOURCES AND GENERAL GOVERNANCE

Ch. 49

Broadened Protection of Individual Interaction

with Government

Public participation that is protected from frivolous

litigation under the Free Speech; Participation in

Government law is broadened to include:

(1) seeking assistance from or reporting suspected

unlawful conduct to, law enforcement;

(2) speaking before a zoning board regarding a real

estate development project;

(3) communicating with an elected official

concerning a change in law;

(4) demonstrating peacefully for or against a

government action; and

(5) filing a complaint with a government entity

regarding safety, sexual harassment, civil rights, or

equal employment rights

Special Session Ch. 1

Jobs, Energy and Housing

Workforce Housing Grants

A city with a population exceeding 500 outside the

metropolitan area; a community that has a combined

population of 1,500 residents located within 15 miles

of a city outside the metropolitan area or the Cook

County Grand Maris Joint Economic Development

Authority is an “eligible project area” for a workforce

housing grant. Grants shall be awarded to projects

where:

(1) the average vacancy rate for rental housing located

in the eligible project area, and in any other city

located within 15 miles or less of the boundaries of the

area, has been five percent or less for at least the

prior two-year period;

(2) one or more businesses located in the eligible

project area, or within 25 miles of the area, that

employs a minimum of 20 full-time equivalent

employees in aggregate have provided a written

statement to the eligible project area indicating that

the lack of available rental housing has impeded their

ability to recruit and hire employees; and

(3) the eligible project area has certified that the

grants will be used for qualified expenditures for the

development of rental housing to serve employees of

businesses located in the eligible project area or

surrounding area. Preference for grants shall be given

to eligible project areas with less than 18,000

people.

The amount of a grant may not exceed 25 percent of

the rental housing development project cost. The

commissioner shall not award a grant without

certification by the city that the amount of the grant

shall be matched by a local unit of government,

business, or nonprofit organization with $1 for every

$2 provided in grant funds. The grant program is

funded at $2 million in each year of the biennium

Ch. 80

New Jobs Training Credit

A grant program is created for greater Minnesota

businesses or associations to fund training costs

for new jobs. An agreement with a grantee must

provides that 1) on-the-job training costs for

employees may not exceed 50 percent of the annual

gross wages and salaries of the new jobs in the first

full year after execution of the agreement up to a

maximum of $10,000 per eligible employee; 2) each

employee must be paid wages at least equal to the

median hourly wage for the county in which the job

is located, as reported in the most recently available

data from the United States Bureau of the Census,

plus benefits, by the earlier of the end of the training

period or 18 months of employment under the

project; and 3) provides that job training will be

provided and the length of time of that training. Before

awarding a grant it must be determined that the job

skills partnership grant program is not a more

suitable source of funding.

Broadband Development

$10,558,000 is appropriated to the border-to-border

broadband fund on a one-time basis.

Propane Prepurchase

$5 million in each year is appropriated for the

Commissioner of Commerce to prepurchase propane

for the low-income home energy assistance program to

prevent shortages.

C

Recovery of Natural Gas Extension Project Costs

A utility is allowed to petition outside a general rate

case to recover from all customers a revenue

deficiency resulting from the extension of natural gas

service to unserved or inadequately served areas.

Olmsted County Board Can Be the County HRA

HUMAN RESOURCES AND GENERAL GOVERNANCE

The Olmsted County Board can by resolution provide

it will be the county housing and redevelopment

authority (HRA).

Public Employee Labor Relations Board Authority

Over Public Employee Unfair Labor Practices

Delayed

The Public Employee Labor Relations Board authority

to investigate, hear and rule on unfair labor practices

under PELRA, the Public Employee Labor Relations

Act, is delayed one year until July 1, 2016. Until then

an aggrieved party or their representative may bring

an action for injunctive relief and for damages caused

by the unfair labor practice in the district court of the

county in which the practice is alleged to have

occurred.

h. 80

Study of Minnesota Paid Family and

Medical Leave Program

The Department of Employment and Economic

Development, in collaboration with the Departments of

Labor and Industry and Health and Human Services,

shall report on the most efficient and effective

mechanisms that would provide partial wage

replacement for workers taking parental, family, or

medical leave.

What Did Not Happen

- No limit on public employee bonuses or one-time merit increases

- No expansion of employee sick leave

- No change in the aggregate benefit rule

- No change or reduction in the minimum level where stop loss coverage would kick-in for

self insured employee health plans

- No change in the minimum wage or prohibition against local government adoption of a

higher minimum wage by ordinance

2015 Legislative Session Report

Environment

Environment and Natural Resources Budget Bill Passed During

Special Session, Natural Resource Projects Funded

Ch. 76

LCMR Projects

The following are appropriated for phase VIII

of the Metro Conservation Corridors

partnership:

$276,000 to conduct restoration activities

on at least 260 acres of forest and savanna

and at least 160 acres of prairie to preserve

and increase wildlife habitat in the

metropolitan area.

$400,000 to pilot and evaluate innovative

restoration techniques aimed at improving

the resilience of bur oak communities to

changing climate conditions and

enhancing prairie management to benefit

pollinators.

$750,000 to acquire in fee at least 35 acres

of high-quality priority state and local

natural areas in the metropolitan area.

$515,000 to provide coordination and

mapping for the partnership and to acquire

permanent conservation easements on at

least 120 acres of strategic ecological

landscapes to protect priority natural areas

in the metropolitan area

$500,000 to acquire in fee at least 100

acres of priority habitat for the Minnesota

Valley National Wildlife Refuge.

$400,000 to acquire in fee at least 82 acres

along the lower reaches of the Vermillion

River in Dakota County within the Gores

Pool Wildlife Management Area

$300,000 is appropriated for an agreement

with the city of Duluth to re-establish stable

and natural streambanks with riparian and

aquatic habitat restoration on at least 5,400

linear feet of Sargent Creek in Duluth

destroyed during the flood of 2012.

$190,000 is appropriated for an agreement

with the St. Croix River Association to

provide technical assistance to landowners,

local governments, realtors, and developers on

shoreland conservation and protection of the

lower St. Croix River.

$1,000,000 is appropriated to the Metropolitan

Council for grants to acquire at least 133 acres

of lands within the approved park unit

boundaries of the metropolitan regional park

system. $1,500,000 is appropriated to acquire

at least 335 acres for authorized state trails and

critical parcels within the statutory boundaries

of state parks.

$1,000,000 is appropriated for an agreement

with the St. Louis and Lake Counties Regional

Railroad Authority for the right-of-way

acquisition, design, and construction of

segments of the Mesabi Trail, totaling

approximately seven miles between Soudan

and Ely.

$896,000 is appropriated for an agreement

with the Leech Lake Area Watershed

Foundation in cooperation

with Crow Wing County Soil and Water

Conservation District and Cass County Soil

and Water Conservation District to secure

Environment

permanent conservation easements on at

least 480 acres of high-quality habitat in

Crow Wing and Cass Counties.

$300,000 is appropriated for an agreement

with the Zumbro Watershed Partnership to

develop at least six recreational and

educational sites on the Zumbro River with

water quality demonstration elements and

interpretative signage designed to encourage

adoption of water protection practices

$431,000 is appropriated for an agreement

with Benton Soil and Water Conservation

District to develop and implement a decision

support system to increase irrigation

efficiencies and provide outreach on irrigation

best management practices.

$1,000,000 is appropriated to the Board of

Water and Soil Resources for the final phase

of a pilot program to provide grants to soil and

water conservation districts and other units of

local and state government for employment of

staff to provide technical assistance to secure

enrollment and retention of private lands in

federal and state conservation programs.

Additional monies are appropriated for

various studies and acquisitions that are not

geographically specific.

Ch. 44

Agricultural Pesticide Disposal

The requirement that the Department of

Agriculture provide a site for disposal of

unused agricultural pesticides at least every

other year in every county is eliminated. The

requirement that the Department of

Agriculture provide an opportunity for

disposal of nonagricultural waste pesticides

every year in every county is also eliminated.

Instead, the department must enter into a

contract with a county or group of counties for

disposal of unused agricultural and

nonagricultural pesticides or provide a place

for the same that is available at least every

other year. The department shall ensure that

collection opportunities are provided statewide.

1st Special Session, Ch. 4

Environment &Natural Resources Budget

Industrial Hemp.

Licensing for the cultivation of industrial hemp

is authorized. The commissioner of agriculture

is authorized to grow industrial hemp on a pilot

basis. Either assumes controlled substance

registration can be acquired from the federal

DEA.

Cottage Food License and Inspection Exemption

A “cottage food exemption” from state

inspection and licensing is created for foods that

are sold:

(1) directly to the ultimate consumer;

(2) at a community event or farmers'

market;

(3) directly from the individual's home to

the consumer, to the extent allowed by

local ordinance

if the food is not a potentially hazardous food

under current rules (eligible foods includes

pickles, vegetables, or fruits having an

equilibrium pH value of 4.6 or lower that are

home processed or canned) and

(i) the prepared food is labeled to reflect

the name and address of the individual

preparing and selling the food, the date

on which the food was prepared, and

the ingredients and any possible

allergens; and

(ii) the individual displays at the point of

sale a sign stating: "These products are

homemade and not subject to state

inspection."

Advanced Biofuels

An “advanced biofuel production incentive” of

$2.1053 per million btu’s for advanced biofuel

production from cellulosic biomass, and $1.053

Environment

per million btu’s for advanced biofuel

production from sugar or starch at a specific

Minnesota location for ten years after the start

of production is created. At least, 80% of the

raw materials must be sourced from Minnesota

or from within a 100 mile radius if the facility is

located within 50 miles of the state border.

A “renewable chemical production incentive” of

$0.03 per pound of sugar-derived renewable

chemical, $0.03 per pound of cellulosic sugar,

and $0.06 per pound of cellulosic-derived

renewable chemical produced at a specific

Minnesota location for ten years after the start

of production is created. Similar sourcing rules

as for the advanced biofuel production incentive

raw materials apply.

A ”biomass thermal production incentive” of $5

per million btu’s is also created for facilities

that must have begin production at a specific

Minnesota location by June 30, 2025, and that

did not begin production before July 1, 2015.

Eligible facilities include existing companies

and facilities that are adding production

capacity, or retrofitting existing capacity, as

well as new companies and facilities. Similar

sourcing rules as for the advanced biofuel

production incentive raw materials apply.

Northeast Regional Corrections Center Meat

Cutting Training Program

The Commissioner of Agriculture is required to

coordinate a pilot program at the Northeast

Regional Corrections Center to train inmates for

careers as meat cutters.

Transfers from Landfill Funds

$58.2 million is transferred from the closed

landfill investment fund and $8.1 million from

the metropolitan landfill contingency fund to the

general fund. Both are to be repaid if general

fund revenues exceed forecast.

White Bear Lake Level Augmentation

$100,000 is appropriated to develop cost

estimates of augmenting White Bear Lake’s

water level.

Study of State Takeover of Federal Section 404

Wetlands Permitting

Money is appropriated for BWSR and the DNR

to study the feasibility and implications of the

state taking over the administration of the

Section 404 wetland permitting program that is

currently administered by the Corp of

Engineers. The report must be provided to the

2017 Legislature.

ATV Operation on City and County Roads

A county, city or town may permit ATV’s to

operate on a road or street under its jurisdiction

to access residences or businesses or to make

trail connections.

Aquatic Invasive Species Permit

The aquatic invasive species permit required for

all watercraft trailered in Minnesota is changed

to an “aquatic invasive species affirmation” that

is included with a watercraft registration or a

non-resident fishing license.

Wetland Conservation Act and Public Waters

Permit Changes

An In-Lieu Fee Option is created for

wetland replacement

In the northern area of the state with greater

than 80% of its presettlement wetland,

restoration and protection of streams and

riparian buffers that are important to the

functions and sustainability of aquatic

resources is permitted as an option to

replace impacted wetlands

BWSR is mandated to designate high

priority areas for wetland replacement and

establish wetland replacement ratios and

wetland bank service area priorities to

encourage the use of high priority areas (but

sequencing is not changed to increase the

opportunity or flexibility for replacement

outside wetland service bank area)

Culvert restoration or replacement of the

same size and elevation does not require a

public waters permit if it does not impact a

designated trout stream

The requirement that wetlands impacted by

a public transportation project in an area of

Environment

the state with less than 50% of its

presettlement wetlands be replaced in an

area of the state with less than 50% of its

presettlement wetlands is deleted as is the

requirement for public transportation

projects in the metro area that the

replacement must occur in either the same

county or the seven county metro area or

within a major watershed wholly or partly

within the metro area with at least ½ the

replacement occurring in the seven county

metro area.

The priority order for wetland replacement

by wetland banking begins with the same

county or wetland bank service area (not the

same minor watershed or same watershed)

BWSR may acquire land, easements and

purchase existing wetland replacement

credits to facilitate the wetland banking

program

BWSR may asses a fee associated with

establishing conservation easements or

other long-term protection on property used

for wetland replacement

Buffers

The deadline for creation of the 16.5-foot

perennially-vegetated buffer for public

ditches is November 1, 2018 and November

1, 2017 for the 50-foot average width, 30-

foot minimum width perennially-vegetated

buffer for public waters. Private drainage

systems are not affected nor are CRP lands,

lands used for public or private water

access or recreation, land regulated by a

storm water permit, land temporarily

unvegetated due to alfalfa or other perennial

crop seeding, roads, trails or buildings.

The onus for creating the required buffers is

on the land owner. A landowner or drainage

authority may contact the soil and water

conservation district for information on how

to apply for local, state, or federal cost-

share grants, contracts, or loans that are

available to establish buffers or other water

resource protection measures.

There is no explicit requirement for

redeterminations to create or pay for the

buffers although it is allowed either

prospectively or retroactively

The SWCD’s are the regulatory entities for

this law but the authority for imposing a

penalty for noncompliance after identifying

corrective actions for the landowner not in

compliance rests with the county or

watershed district. BWSR, the county or

watershed district are granted authority to

impose an administrative penalties of up to

$500 in the eleventh month following notice

of noncompliance.

On or before July 1, 2017, a soil and water

conservation district shall develop, adopt,

and submit to each local1water management

authority within its boundary a summary of

watercourses for inclusion in the local water

management authority's plan. A local water

management authority that receives a

summary of watercourses identified under

this subdivision must revise its

comprehensive local water management

plan or comprehensive watershed

management plan accordingly.

Pollution Control Agency (PCA) Permitting

Changes

Permitees who voluntarily report violations

within two days of first becoming aware of

the violation cannot be subject to any civil,

criminal other than MS 609.671 or

administrative penalties if the permitee acts

to correct the violation or has an approved

schedule to correct the violation within 60

days and it has not been subject to any

enforcement action for the past two years. A

civil or administrative action including a

penalty may still be brought if:

(i) a violation caused or had potential to

cause serious harm to human health or the environment;

(ii) a violation is of the specific terms of an

administrative order, a judicial order

or157.10 consent decree, a stipulation agreement, or a schedule of compliance;

Environment

(iii) a violation has resulted in economic

benefit which gives the regulated entity a

clear advantage over its business

competitors; or

(iv) a violation is identified through a

monitoring or sampling requirement

prescribed by statute, regulation, permit,

judicial or administrative order, consent

decree, stipulation agreement, or schedule

of compliance;

The Commissioner of Management and

Budget shall contract for an independent,

third party engineering cost analysis of

recent and proposed water quality standards

and rules

Recycling Changes

Recycling and Solid Waste Regulation

The definition of “recyclable materials” is

expanded to include sole source food waste

streams that managed through

biodegradative processes and may be

counted towards a county’s recycling goal

Prevention of food waste by collection and

transport of food donated to humans or fed

to animals is an eligible use of SCORE

grants as is processing of source separated

compostable materials to be used Class I or

II compost

A recycling competitive grant program is

created to provide grants to political

subdivisions outside the metropolitan area.

If a city, it must be under 45,000 population.

Grants can be used to establish or increase

recycling

A list of licensed mixed municipal solid

waste haulers must be provided to the PCA.

Collectors of recyclable materials for hire

must be registered with the PCA if not

already licensed as a mixed municipal solid

waste hauler. Haulers must report annually

on the quantity of mixed municipal solid

waste and recyclable materials collected

from:

Commercial and residential customer, and

By county of origin and by destination of

the material

The PCA may not issue a permit for a new

or expanded disposal facility until all local

governments exercising land use and zoning

authority have authorized or granted

approval for the permit and provided

required public notice or the site was

already in an approved solid waste

management plan.

The PCA Citizen Board is eliminated

effective July 1, 2015.

Non ferrous mining operations are excepted

from solid waste management rules to the

same extent as taconite and other iron

miming operations are currently

Metro Water Planning

Approval of the metropolitan area master

water supply plan is subject to the approval

of Met Council policy advisory committee

(for water supply planning), not the

commissioner of natural resources

The Met Council policy advisory committee

(for water supply planning) membership is

expanded to include a representatives from

the St. Paul Board of Water Commissioners

and the Minneapolis Water Department

A technical advisory committee is created

for the Met Council policy advisory

committee (for water supply planning)

The Met Council policy advisory committee

(for water supply planning) is required to

report to the Met Council and Legislature

on February 15, 2017 and every five years

thereafter

Avian Flu Response

$16 million was appropriated to multiple

agencies to respond to the avian flu outbreak

including $10 million for loans to affected

farmers.

Metropolitan Parks Funding

Effective January 1, 2018, the dedication of the

interest earnings on funds for metropolitan

Environment

parks to funding the North Mississippi Regional

Park will terminate.

Ch. 2

Legacy Funding Bill

Payment in Lieu of Taxes Recommendation

The commissioner of management and budget,

in consultation with the commissioners of

natural resources and revenue, the Association

of Minnesota Counties, and the Minnesota

Association of Townships, shall examine

alternatives to payment-in-lieu of tax payments,

including a trust fund approach that would

apply to land acquired with money from the

outdoor heritage fund and other dedicated

funds.

Subsurface Sewage Treatment System (SSTS)

Grants

$3,623,000 in FY 2016 and $3,622,000 in FY

2017 are appropriated for enhancing the

county-level delivery systems for SSTS activities

necessary to protect groundwater, including

base grants for all counties with SSTS programs

and competitive grants to counties with specific

plans to significantly reduce pollution by

reducing the number of systems that are an

imminent threat to public health or safety or are

otherwise failing. Counties that conduct SSTS

inventories or those with an ordinance in place

that requires an SSTS to be inspected as a

condition of transferring property or as a

condition of obtaining a local permit must be

given priority for the competitive grants.

$750,000 each year is available to counties for

grants to low-income landowners to address

systems that pose an imminent threat to public

health or safety or fail to protect groundwater. A

grant may not exceed $500,000 for the

biennium.

Buffers

$4,544,000 in FY 2016 is appropriated to the

Board of Water and Soil Resources to acquire

permanent conservation easements to protect

and enhance habitat by expanding the clean

water fund riparian buffer program for at least

equal wildlife benefits from buffers on private

land. $4,875,000 in FY 2016 and $4,875,000 in

FY 2017 are appropriated to restore or preserve

permanent conservation on riparian buffers

adjacent to lakes, rivers, streams, and

tributaries, to keep water on the land in order to

decrease sediment, pollutant, and nutrient

transport; reduce hydrologic impacts to surface

waters; and increase infiltration for

groundwater recharge.

Transition Local Water Management Plans to

Watershed Approach

$2,100,000 in FY 2016 and $2,100,000 in FY

2017 are appropriated for assistance, oversight,

and grants to local governments to transition

local water management plans to a watershed

approach

Comprehensive Watershed Management

Planning

The Board of Water and Soil Resources is given

authority to develop a transition plan for

development, approval, adoption and

coordination of comprehensive watershed

management plans that may be implemented in

lieu or as a successor to a comprehensive plan,

local water management plan, or watershed

management plan. There is a goal of

completing transition to comprehensive

watershed management plans by 2025.

Parks and Trails Funding

$8,618,000 in FY 2016 and $9,033,000 in FY

2017 are appropriated for grants for local parks

and trails of regional significance outside the

seven-county metropolitan area. $17,237,000 in

FY 2016 and $18,067,000 in FY 2017 are

appropriated for metropolitan parks

Library Grants

$2.2 million is appropriated in each year of the

biennium for grants to the 12regional library

systems.

In addition to the above, there were numerous

region- or location-specific grants.