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Home My WebLink Aboutweekly Notes- November 25th 2020 CITY OF OAK PARK HEIGHTS—WEEKLY NOTES for: November 25th,2020 TO: City Council Members& Staff FROM: Eric Johnson,City Administrator Zoning&Development Items: 44� 1. No new applications have been received. The potential applicant for the U-HAUL site has withdrawn their application—this was slated for the"Smoke Shack"near Pizza Man. 2. A letter was sent by the Building official to a property owner relating to the use of temporary structures. COVID-19 Matters: • This is the Governor's-PORTAL https://mn.gov/covidl9—Many documents/Exec.Orders can be found. Washington County has initiated a County Dashboard containing more localized COVID-19 Impacts and rates LINK->>HERE. • There are opportunities for housing assistance for those impacted by COVID—see links: _m W. A MOOS FOR CONWIPSEROICE PRUMERS OROERWFERMS SIVEOHP United Way 211—211 Site(21 lunitedway.org) Minnesota COVID-19 Housing Assistance Program (housinghelpmn.org) Other Items: Please see community letter from Washington County—Commenting on MASK use. Xcel Energy Operational Update for 11/24/20 Mayor McComber provided: • NLC City Summit—Links to Seminars and Reports and other materials—may need a password... let me know if it does and I will send it. • Chamber of Commerce-Nominations"WHO are you thankful for." • Copy of a letter received from STW resident Susannah Courteau • Final Document of LMC Policies—2020 Please let me know if you have any questions-651-253-7837 Call Anytime. ✓ CITY OF f OAK PARD HEIGHTS 14108 ( rak Park BOLIlevaid ,Norih • Oak Par{< He°ieht,, %IN 55082 551-439--#939 Fax: 051.41 -0574 November 25, 2020 Ashley Holmes 15053 651" St. N. Oak Park Heights, MN 55082 Re: Temporary Accessory Structure Dear Ashley: I am writing with regard to the canopy in your driveway. City Ordinance allows such temporary accessory structures with a special event permit and with the expectation that they will be maintained in good condition while in place. The canopy currently in your drive appears to have partially collapsed. With a special event permit, such structures are permitted to be in place for a maximum of 50 days annually and shall be installed as required per City Ordinance 401.15.D.11 — Temporary Accessory Structures, A copy of this ordinance and a special event permit are enclosed. If you wish to continue to have the canopy at your driveway, kindly remit the special event permit application to my attention, for its placement and fix it so that it is in good condition no later than Wednesday, December 9, 2020 or have it fully removed by that time. Thank you for your prompt attention. Please feel free to email me with any questions you may have. Sincerely, PLANING & CODE ENFORCEMENT 1ulid H Itman Building Official Enclosures Tree City U.S.A. From: Jurek,Colette C To: Bayport-City Administrator; Bayport-PWD; Birchwood-City Administrator; Dellwood-Clerk; Forest Lake- City Administrator; Forest Lake-PW Superintendent;Grant-Clerk; Huao-City Administrator; Huao-PWD; Mahtomedi-City Administrator; Mahtomedi-PWD; Marine On St.Croix-Clerk; May Township-Clerk; Eric Johnson;Andrew Kealey; Mary McComber; Pine Springs-Clerk; Stillwater-City Administrator; Stillwater- PWD;Stillwater Township-clerk;Washington County-Construction Engineer;Washington County-County Administrator;Washington County-Deputy Administrator;Washington County-Engineering&Construction Manager;Willernie-Clerk Subject: Xcel Energy:Operational Update-Electric Vehicle Webinar Information Date: Tuesday, November 24, 2020 3:07:02 PM Dear Community and Chamber Leaders: I hope this message finds you well in the midst of the pandemic surge. While we all prepare for a very different holiday season, our essential workers are poised to respond to power outages. We are thankful for all essential workers throughout our communities who are often stretched to the limit. We are also thankful for the professional and personal support networks keeping these workers healthy and ready to serve. I am excited to share information regarding upcoming learning opportunities regarding electric vehicles.The following link opens to Drive Electric Minnesota's web page for a webinar series titled "Minnesotans Going Electric."The first session should be of special interest to this group—the Role of Cities and Counties in Transportation Electrification. It will be held Tuesday, December 1, 2020, 11:00 a.m.-12:30 p.m. https://www.driveelectricmn.org/webinar-series-minnesotans-going- electric Please forward this link to individuals in your organizations who would like to learn more about electric vehicles. Thank you for reading and my wishes for a very Happy Thanksgiving, Colette Colette Jurek Xcel Energy I You. Us. Together. Manager, Community Relations and Economic Development 1700 East County Road E, White Bear Lake, MN 55110 C: 612.209.3501 E: colette.c.jurek&xceleneray.com XcelEnergy.com Facebook.com/XcelEnergy Twitter.com/XcelEnergy Please consider the environment before printing this email. ■ ame a e Dear Community, Washington County cases of COVID-19 continue to increase, with our highest daily case count in the pandemic thus far occurring on November 14 with 420 new cases identified. Our county's 14-day case rate continues to rise at an alarming pace, with our last reported count at 118.9 per 10,000 people. The rapid increase in COVID-19 cases is affecting hospitals across the region, including Lakeview and Woodwinds hospitals in Washington County.While healthcare systems are in a better position than they were in the spring to deal with high COVID and non-COVID caseloads,they are facing significant stress. Hospital beds and intensive care units are reaching capacity. Most importantly, hospitals are experiencing staffing shortages as healthcare workers need to quarantine or care for their family members. Data shows that most virus exposures are happening outside of the healthcare setting.Togetherwith our partners at Health Partners and M Health Fairview,we are calling on all residents to do their part to slow the spread of COVID-19 in Washington County. Healthcare workers have been working tirelessly for more than eight months to care for those most in need. During this challenging time,we must come togetherto support one of our community's valuable resources,the healthcare workers serving our community. While we work toward having a vaccine and more effective treatments, research and data help us to make informed decisions about the best tools to prevent new infections.The recommended and proven public health prevention strategies include: • Stay home when you're sick and waiting for COVID-19 test results • Avoid gathering with people you don't live with • Wear a mask in public and around people you don't live with • Stay at least 6 feet away from others • Wash your hands often When you take these steps,you're supporting healthcare workers and protecting your loved ones,your friends,your neighbors, and yourself. As a community, we can #FaceThisTogether. Sincerely, Fran Miron, Chair Ted Wegleitner Will Nicholson, MD Washington County Board of President,Lakeview Hospital Vice President of Medical Affairs Commissioners,District 1 HealthPartners M Health Fairview St.Joseph's,St. John's,and Woodwinds hospitals t'-- Lowell Johnson Michele Brin Director,Public Health&Environment Woodwinds Operations Executive, Washington County Woodwinds Hospital M Health Fairview Washington <�, Lakeview Hospital JK County HEALTH HeahhParcners« FAIRVIEW From: Mary Mccomber To: Eric Johnson Subject: Fwd:Access City Summit Sessions and Resources On Demand Date: Monday,November 23,2020 12:53:48 PM For weekly notes -----Original Message----- From: National League of Cities <conferences@nlc.org> To: marymccomber@aol.com Sent: Mon, Nov 23, 2020 11:00 am Subject: Access City Summit Sessions and Resources On Demand e Loved Seeing You Last Week! Thank You for Joinina Us From workshops and general sessions to the incredible performance by Gladys Knight, last week was one for the books! We are so appreciative to everyone who attended our first ever Virtual City Summit. Don't forget, you can still access sessions on demand through the Attendee Portal! Now we want your feedback! Take our survey to let us know about your overall conference - •- 13 ■ ■13Take the Surveyo 13 Check Out NLC's Reports Released at City Summit You don't want you to miss these reports and resources announced last week: • Livable Communities: Innovative, Inclusive and Equitable Cities • Lessons Learned from 2020 Census and Voting Initiatives • Preemption and the COVID-19 Pandemic • Micromobility in Cities: The Current Landscape • How to Support New Business Creation in a Preempted Policy Environment • What You Need to Know About Preemption • The Human Costs of Local Fiscal Crises During COVID-19 And so much more! ■ ■ ■ ■ You're Invited: Congressional City Conference 2021 Congressional City Conference 8 We can't wait to welcome you back in 2021 at NLC's Congressional City Conference! Take part in an immersive and unparalleled program that helps local leaders learn best practices, discover tools and gather resources to best fit the diverse set of your communities' needs. Through workshops and general sessions, conference delegates will get specialized training to build leadership skills and conduct productive meetings with federal representatives. Save by registering early, rates increase after January 15th, 2021. ■ ■ Top Moments from the 2020 City Summit Make sure you check out our recap of City Summit, capturing everything from new leadership announcement to key message takeaways. ■ ■- ■ Misseda Sessionor toWatchAgain? City Summit attendees will have access to recordings of workshops and meetings on demand until January 30th, 2021. atch On Demand Have a colleague who missed City Summit? We have a NEW On Demand Pass where they can access session recordings. Learn More Here > Stay I nvo Ived at NLC NLC is now accepting applications for membership in its Constituency Groups, Federal Advocacy Committees and Member Councils. Serving as a member of a constituency group, committee, or council, gives you the opportunity as a municipal leader to get involved with NLC and represent your community at the national level. Connect your community to the national level. �upmit your application deadline for submissions is December 4th! ❑Learn More❑ From: Mary Mccomber To: Eric Johnson Subject: Fwd: Following-up from the NLC Virtual City Summit Date: Wednesday, November 25,2020 9:45:56 AM FYI -----Original Message----- From: Dynamo Metrics <dynamo@dynamometrics.com> To: marymccomber@aol.com Sent: Wed, Nov 25, 2020 9:14 am Subject: Following-up from the NLC Virtual City Summit Hi Mary, Sorry we missed you at the NLC Virtual City Summit. We really enjoyed the conference and hope you did too! We thought you might enjoy our podcast series, Ahead of the Curve, which brings practitioners and policy experts together to provide insights and strategies for housing, planning, and community and economic development teams. You can subscribe here to get new episodes delivered to your inbox, or find us on Apple Podcasts, Google Podcasts, and Spotify. Episode 16 FN II Dan Kildee U.S. Representative for Michigan's 5th Congressional District Current economic stimulus legislation focused on short-term housing and small business relief and long-term financial vehicles to grow and reposition America's cities for success Listen to Episode 16 Episode 15 Arcadio Ramirez Business Technology Consultant at Michigan SBDC How the Michigan Small Business Development Center supports small businesses and how state and federal funds are delivered to local businesses in Michigan Listen to Episode 15 » Episode 14 8 Mac Sims President of East Greensboro NOW The history and economy of Greensboro and the role of community development corporations in delivering workforce, community, and economic development resources to underserved communities Listen to Episode 14 » Episode 13 Doug Matthews Assistant City Manager and CAO for the City of Grand Rapids, Michigan How the City of Grand Rapids is using technology to address the financial and economic implications of COVID and social equity movements Listen to Episode 13 » Episode 12 Rob Linn Inventory Director at the Detroit Land Bank Authority How the DLBA tackles its large inventory, the impact of vacancy and abandonment on neighborhood health, COVID's impact on land bank policy, and the role of community land trusts ,isten to Episode 12 Episode 11 Krista Trout-Edwards Inventory Director at the Detroit Land Bank Authority Land bank legislation and history in Michigan and Ohio, the role of land banks in dealing with foreclosed properties, and how incremental development builds community wealth Listen to Episode 11 » Episode 10 8 Shawntera Hardy Cofounder+ CSO, Civic Eagle National, state, and local policies for addressing systemic racism, the importance of strong leadership, and how software companies can help address inequality and COVID Listen to Episode 10 » Episode 9 19 Jim Rokakis Vice President of Western Reserve Land Conservancy The history of the foreclosure crisis in Greater Cleveland, land bank law in Ohio, and operationalizing state and national policy initiatives Listen to Episode 9 » From: Mary Mccomber To: Eric Johnson Subject: Fwd: NLC Went Virtual:Top Moments from the 2020 City Summit Date: Saturday,November 21,2020 7:35:33 AM For weekly notes -----Original Message----- From: National League Of Cities (NLC)<news@nlc.org> To: marymccomber@aol.com Sent: Sat, Nov 21, 2020 6:03 am Subject: NLC Went Virtual: Top Moments from the 2020 City Summit News,resources and events for local leaders and staff. of NLC Went Virtual: Top Moments of City Summit 8 NLC Went Virtual: Top Moments from the 2020 City Summit This week we wrapped up our first-ever Virtual City Summit! With over 2,000+ local leaders, 3 days full of sessions, workshops and lots of networking and entertainment, it was a time of convening local leaders and partners to come together on key issues like COVID-19, racial equity and what lies ahead for local leaders. ■ How Delivery is Supporting Turkey, Masks, and Giving Counting to Five: The ACA Restaurants During COVID- Thanks—5 Considerations May Be Here to Stay 19 for City Leaders ■ ■ ■ ■ IF Industry News What We're Reading: • Biden pledges seat at the table for city governments - The Hill(November 20, 2020) • Local leaders join National League of Cities summit- Channel 3000 (November 18, 2020) • Despite Recent Gains, Women Are Still Underrepresented in Local Politics - US News(November 18, 2020) • City leaders across the country discuss successful ways to help restaurants stay afloat amid pandemic-KXAN(November 18, 2020) Announcements NEW REPORT: Lessons Learned from 2020 Census and Voting Initiatives NLC surveyed over 100 cities of varying sizes to understand their experiences with the 2020 Census count and the 2020 elections cycle. View the report for the primary lessons learned in these initiatives and how it impacts local leaders. Download Report> NEW LEADERSHIP: NLC Announces New Leadership At City Summit NLC announced new President and Board of Director Members elected to the National League of Cities during City Summit. Learn More > NEW PARTNERSHIP: IWBI and NLC Announce Partnership to Support Cities and Create Safer, Healthier Places Developed to support the implementation of city-scale actions, the effort will help cities demonstrate leadership in advancing health, well-being and social equity in everything from municipal buildings to public spaces and from programs to policies. Learn more about this new partnership! Learn More > i Job Openings See who's hiring right now: • Executive Director-Vermont League of Cities and Towns • Project Manager I -Community-Based Development- Prosper Portland • Portfolio Program Manager (Analyst III)-City of Portland, Bureau of Environmental Services ■ Helpful NLC Links: Articles Upcoming Events 8 8 8 Resources &Training Advocacy If this message is not displaying properly, please view in browser. National League of Cities A8 You may opt out of email communications from NLC at any time. Update your communication preferences. You may opt out of email communications from NLC at any time. Update your communication preferences. This message was intended for: marymccomber@aol.com 660 North Capitol Street, NW, Suite 450, Washington, DC 20001 Privacy Policy I @ 2020 NLC, All Rights Reserved Powered by Higher Logic From: Mary Mccomber To: Eric Johnson Subject: Fwd:WHO are you Thankful for?NOMINATE THEM NOW for the 2021 Stillwater Community Awards! Date: Wednesday,November 25,2020 9:44:22 AM For weekly notes -----Original Message----- From: Greater Stillwater Chamber of Commerce<communications@GreaterStillwaterChamber.com> To: marymccomber@aol.com Sent:Wed, Nov 25,2020 8:49 am Subject:WHO are you Thankful for? NOMINATE THEM NOW for the 2021 Stillwater Community Awards! The Greater Stillwater Chamber of Commerce is taking nominations for their 2021 Community Awards - 9 categories! Nominate Now! WHO are you Thankful for? Who comes to mind in the following categories: Nominate an outstanding Chamber and/or Community member or business/organization Youth Visionary Award Chamber Ambassador Educator Small Business Non-Profit organization Large Business Community Volunteer Community Hero NEW! Special 2020 Vibrancy Award to honor an individual or organization that has exemplified leadership, community and resiliency in the face of a global pandemic. NOMINA TE HERE! We all know an individual(s) who is worthy of a nomination. Now is the time to honor and acknowledge those individuals. Don't be late for this very important Date...to nominate! It takes just a few moments to nominate using our easy online form HERE.* Want to support the 2021 Winter Gala Community Award Celebration scheduled for March 5, 2021? Consider one of our Sponsorships HERE *Nominations can be made in more than one category and for more than one person. Please allow yourself 15-25 minutes to complete the nomination form and have all the information about the nominee available when you complete the form. The Community Award Selection Council relies on only the data they are given when rating the nomination forms. The Community Award Selection Council is comprised of past winners. Thank You for taking the time to nominate! Copyright©2020 Greater Stillwater Chamber of Commerce,All rights reserved. Our mailing address is: Greater Stillwater Chamber of Commerce 333 N. Main Street,#202 Stillwater, MN 55082 Add us to your address book SUSANNAH COURTEAU 2225 Orleans Street West #314, Stillwater, MN 55082 November 8, 2020 Mayor Mary McComber 14168 Oak Park Blvd N Oak Park Heights, MN 55082 Dear Mayor Mary McComber, I am writing to you in your respected capacity as a member of Oak Park Heights City Council. My name is Susannah and I grew up and still live here in this wonderful community. During November 2020, Jehovah's Witnesses worldwide are participating in a campaign to deliver a special issue of The Watchtower to all government officials, both locally and nationally. Your personal copy is enclosed. You may also download a copy from our website, jw.org. (Go to LIBRARY > MAGAZINES.) The question on the front cover of this magazine asks, "What Is God's Kingdom?" Many people pray for God's Kingdom to come but often wonder what God's Kingdom is and what it will do. This magazine explains how the answers to these questions can readily be found in the Bible. I trust that you will enjoy reading it. I am available to answer any questions you may have regarding the beliefs, practices, and activities of Jehovah's Witnesses within the community. My contact details are shown below. Sincerely, Susannah Courteau Enclosure Contact information: susannahcourteau@hotmail.com L E A G U E O F M I N N E S O T A C I T I E S 2021 City Policies For Legislative and Administrative Action Adopted November 12, 2020 The only comprehensive statewide advocacy agenda for all Minnesota cities LMC(D LEAGUE MINNESOTA CITIES This document is available in the Legislative Action Center on the League's website at www.lmc.orglpolicies Table of Contents LMC INTERGOVERNMENTAL RELATIONS STAFF..................7 2020 LMC POLICY COMMITTEE MEMBERS ...............................8 ImprovingService Delivery....................................................................8 ImprovingLocal Economies...................................................................8 HumanResources & Data Practices ...................................................10 ImprovingFiscal Futures .....................................................................10 LMC POLICY DEVELOPMENT PROCESS...................................12 PURPOSE, PROCESS AND PRINCIPLES OF CITY POLICIES.13 IMPROVING SERVICE DELIVERY................................................14 SD- 1. Local Control................................................................................................................14 SD- 2. Unfunded Mandates.....................................................................................................14 SD- 3. Local Approval of Special Laws..................................................................................14 SD- 4. Redesigning and Reinventing Government...............................................................15 SD- 5. State Government Shutdowns.....................................................................................16 SD- 6. Duration of Conservation Easements.........................................................................16 SD- 7. Racial Equity in Minnesota.........................................................................................17 SD- 8. Immigration Reform....................................................................................................18 SD- 9. Responsibility for Locating Private Underground Facilities ...................................19 SD- 10. Utility Relocation Under Design-Build Road Construction...................................20 SD- 11. National Fire Protection Association (NFPA) Standards.......................................20 SD- 12. Fire Mutual Aid..........................................................................................................21 SD- 13. Clarification of Joint Powers Relationships with Federally Recognized Indian Tribes.........................................................................................................................21 SD- 14. Ambulance Service Costs and Liability....................................................................22 SD- 15. Fees for Service...........................................................................................................23 SD- 16. Improving and Increasing Citizen Access to Information......................................23 SD- 17. Administrative Fines for Code Violations................................................................24 SD- 18. Contracting and Purchasing......................................................................................25 SD- 19. City Enterprise Operations .......................................................................................25 SD- 20. Preservation of Order in City Council Meetings.....................................................25 1 SD- 21. Constitutional Amendments......................................................................................26 SD- 22. Initiative and Referendum.........................................................................................26 SD- 23. Civil Liability of Local Governments.......................................................................27 SD- 24. Private Property Rights and Takings.......................................................................27 SD- 25. Organized Solid Waste Collection ............................................................................28 SD- 26. Private Well Drilling..................................................................................................29 SD- 27. Sustainable Development...........................................................................................30 SD- 28. Advanced Energy Building Standards.....................................................................31 SD- 29. Construction Codes....................................................................................................32 SD- 30. Building Officials........................................................................................................33 SD- 31. Disability Access Requirements................................................................................34 SD- 32. Assaults on Code Enforcement Officials..................................................................35 SD- 33. Restrictions on Possession of Firearms ....................................................................35 SD- 34. Public Safety Communications .................................................................................36 SD- 35. Criminal and Juvenile Justice Information.............................................................37 SD- 36. Pawn Shop Regulation and Use of the Automated Property System (APS).........37 SD- 37. City Costs for Enforcing State and Local Laws ......................................................38 SD- 38. Compensation and Reimbursement for Public Safety Services.............................39 SD- 39. Administrative Traffic Citations...............................................................................40 SD- 40. Distracted Driving......................................................................................................40 SD- 41. Juveniles in Municipal Jails.......................................................................................41 SD- 42. Justice System Funding..............................................................................................41 SD- 43. 21St Century Policing..................................................................................................42 SD- 44. Post-Incarceration Living Facilities..........................................................................43 SD- 45. Homeland Security Costs and Liability....................................................................43 SD- 46. Cybersecurity..............................................................................................................44 SD- 47. Legalization of Fireworks..........................................................................................44 SD- 48. Traffic Enforcement Cameras ..................................................................................45 SD- 49. Operation of Motorized Foot Scooters.....................................................................46 SD- 50. Drug Courts ................................................................................................................46 SD- 51. Drug Paraphernalia ...................................................................................................47 SD- 52. Regulation of Massage Therapists............................................................................47 SD- 53. Lawful Gambling and Local Control.......................................................................48 SD- 54. Liquor Liability Insurance Limits............................................................................49 SD- 55. On-Sale Liquor or Wine Licenses to Cultural Centers...........................................49 SD- 56. Liquor Licensing of Non-Contiguous Spaces...........................................................49 SD- 57. Wine and Off-Sale Licenses.......................................................................................50 SD- 58. Youth Access to Alcohol and Tobacco......................................................................50 SD- 59. Consumer Small Loans..............................................................................................50 SD- 60. Regulation of Mobile Businesses...............................................................................51 SD- 61. Regulation of Party Buses and Boats-for-Hire........................................................51 SD- 62. Environmental Protection .........................................................................................52 SD- 63. Impaired Waters.........................................................................................................54 SD- 64. Municipal Public Water Supplies.............................................................................55 SD- 65. Municipal Electric Utilities........................................................................................57 SD- 66. State Support for Municipal Energy Policy Goals..................................................58 2 SD- 67. Urban Forest Management Funding........................................................................59 SD- 68. City Pesticide Application Authority........................................................................59 SD- 69. Election Issues.............................................................................................................59 SD- 70. Administering Absentee Balloting............................................................................60 SD- 71. Loss of Felon Voting Rights.......................................................................................61 SD- 72. Write-in Candidates in City Elections......................................................................62 SD- 73. Ranked Choice Voting...............................................................................................62 SD- 74. Voter Assistance .........................................................................................................63 SD- 75. Electronic Rosters.......................................................................................................63 SD- 76. Election Judge Recruitment and Retention.............................................................64 SD- 77. Mail Balloting .............................................................................................................64 SD- 78. Modernizing Charter Amendment Process .............................................................65 SD- 79. Presidential Nomination Primary.............................................................................65 SD- 80. Health Care Facility Voting.......................................................................................66 SD- 81. Voters Experiencing Homelessness...........................................................................66 IMPROVING LOCAL ECONOMIES ...............................................68 LE- 1. Growth Management and Annexation.......................................................................68 LE- 2. Wildlife Management Areas........................................................................................69 LE-3. Official State Mapping Responsibility .......................................................................69 LE-4. Electric Service Extension...........................................................................................70 LE- 5. Statutory Approval Timelines.....................................................................................70 LE- 6. Maintenance of Retaining Walls Adjacent to Public Rights of Way.......................72 LE- 7. Development Disputes..................................................................................................72 LE- 8. Foreclosure and Neighborhood Stabilization............................................................72 LE- 9. Housing Policy..............................................................................................................74 LE- 10. Resources for Affordable Housing ...........................................................................76 LE- 11. Greater Minnesota Housing......................................................................................77 LE- 12. Energy Efficiency Improvement Requirements for Housing.................................79 LE- 13. In-Home Day Care Facilities.....................................................................................80 LE- 14. Residential Programs.................................................................................................80 LE- 15. Inclusionary Housing.................................................................................................81 LE- 16. Community Land Trusts...........................................................................................82 LE- 17. Telecommunications and Information Technology................................................82 LE- 18. Broadband ..................................................................................................................82 LE- 19. Competitive Cable Franchising Authority...............................................................84 LE- 20. Public Right-of-Way Management...........................................................................85 LE- 21. Wireless Infrastructure and Equipment Siting.......................................................86 LE- 22. County Economic Development Authorities ...........................................................87 LE-23. Local Appropriations to Economic Development Organizations..........................87 LE- 24. Workforce Readiness.................................................................................................87 LE- 25. Business Development Programs..............................................................................88 LE- 26. Remediation and Redevelopment.............................................................................89 LE- 27. Development Authority Levy Limits........................................................................89 LE- 28. Tax Increment Financing (TIF)................................................................................90 LE- 29. Property Tax Abatement Authority.........................................................................91 3 LE-30. Opportunity Zones.....................................................................................................92 LE-31. Revisions to the OSA Audit Function.......................................................................92 LE-32. OSA Time Limitations...............................................................................................93 LE-33. Workforce Housing....................................................................................................94 LE-34. Development Along Transit Corridors ....................................................................95 LE-35. Public Infrastructure Utilities...................................................................................96 LE-36. Adequate Funding for Transportation.....................................................................97 LE-37. Turnbacks of County and State Roads ....................................................................98 LE-38. MnDOT Rights-of-Way Maintenance......................................................................98 LE-39. Funding for Non-Municipal State Aid City Streets................................................98 LE-40. Authority to Allow Amenities in MnDOT Rights-of-Way.....................................99 LE- 41. Complete Streets.......................................................................................................100 LE-42. Infrastructure Fees...................................................................................................100 LE-43. Safe Routes to School Grants Management...........................................................101 LE-44. Railroads...................................................................................................................101 LE-45. Airport Planning and Funding...............................................................................102 LE-46. Airport Safety Zones................................................................................................103 LE-47. Development Responses to the Pandemic..............................................................104 HUMAN RESOURCES & DATA PRACTICES.............................105 HR-1. Personnel Mandates and Limits on Local Control..................................................105 HR-2. Earned Sick and Safe Time .......................................................................................105 HR-3. Pay Equity Compliance..............................................................................................105 HR-4. Public Employment Labor Relations Act (PELRA) ...............................................106 HR-5. Implications of Janus v. AFSCME............................................................................107 HR-6. Public Employment Relations Board........................................................................108 HR-7. Payment of Arbitration Fees .....................................................................................108 HR-8. Essential Employees ...................................................................................................108 HR-9. Re-employment Benefits ............................................................................................109 HR-10. Public Employee Defined Benefit Pension Plans...................................................109 HR-11. State Paid Police and Fire Medical Insurance.......................................................112 HR-12. Health Care Insurance Programs...........................................................................113 HR-13. Workers' Compensation..........................................................................................114 HR-14. Drug and Alcohol Testing in the Workplace ........................................................115 HR-15. Veterans Preference .................................................................................................115 HR-16. Military Leave Reimbursement..............................................................................116 HR-18. Tele-health Exams....................................................................................................117 DataPractices ......................................................................................117 DP-1. Data Practices Compliance Costs ..............................................................................117 DP-2. Records Retention Compliance Costs .......................................................................119 DP-3. Updating the Minnesota Government Data Practices Act......................................119 DP-4. Maintaining Government Data in Large Databases................................................120 DP-5. Sharing of Student Data with Local Law Enforcement in Emergencies ...............121 DP-6. Disclosure of Victim Data...........................................................................................121 4 DP-7. Challenges to the Accuracy of Data...........................................................................122 DP-8. Law Enforcement Technologies.................................................................................123 DP-9. Open Meeting Law......................................................................................................123 DP-10. Exceptions to the Open Meeting Law......................................................................124 FederalEmployment Law ..................................................................126 FED-1. Consolidated Omnibus Budget Reconciliation Act(COBRA).............................126 FED-2. Flexible Spending Accounts.....................................................................................126 FED-3. IRS Regulations on Death Benefits.........................................................................127 FED-4. Federal Public Safety Collective Bargaining Bill ..................................................127 FED-5. Federal Health Care Reform...................................................................................127 FED-6. Amended Internal Revenue Code Regarding 403(b) Retirement Plans..............128 FED-7. Amended Internal Revenue Code Regarding Health Savings Account Eligibility andMedicare Enrollment......................................................................................129 IMPROVING FISCAL FUTURES ...................................................130 FF- 1. State-Local Fiscal Relations.......................................................................................130 FF- 2. Economic Contributions by Cities ............................................................................131 FF-3. State Budget Stability.................................................................................................131 FF-4. Funding Local Government Aid ...............................................................................132 FF- 5. State Charges for Administrative Services ..............................................................132 FF- 6. Reporting Requirements............................................................................................133 FF- 7. Direct Property Tax Relief Programs.......................................................................134 FF- 8. Sales Tax on Local Government Purchases.............................................................134 FF- 9. Taxation of Electronic Commerce ............................................................................135 FF- 10. Local Lodging Taxes ................................................................................................135 FF- 11. Taxation of Electric Generation Personal Property..............................................136 FF- 12. Electric Generation Taxation Reform....................................................................136 FF- 13. Support for Transitioning Communities................................................................137 FF- 14. Taxation of Municipal Bond Interest......................................................................138 FF- 15. Pollution Control Exemption...................................................................................138 FF- 16. Local Elected Officials Authority to Establish Local Budgets.............................139 FF- 17. Tax Hearing and Notification Process....................................................................140 FF- 18. General Election Requirement for Ballot Questions.............................................140 FF- 19. City Fund Balances...................................................................................................140 FF- 20. Local Option Sales Tax and City Revenue Diversification...................................141 FF- 21. City Franchise Authority.........................................................................................142 FF- 22. Utility Valuation Transition Aid.............................................................................143 FF-23. State Assistance for Property Tax Refunds for State-Assessed Property...........144 FF- 24. Transition for Property Acquired by Tax-Exempt Entities.................................144 FF- 25. Payments for Services to Tax-Exempt Property ...................................................144 FF- 26. Public Safety Protection Districts ...........................................................................144 FF-27. Housing Improvement Areas and Special Service Districts Petitioned by Business ..................................................................................................................................145 FF- 28. Tax-Forfeited Properties and Local Special Assessments ....................................146 5 FF-29. Distribution of Proceeds from the Sale of Tax-Forfeit Property .........................146 FF-30. State Hazard Mitigation and Response Support...................................................148 FF-31. Library Funding.......................................................................................................148 FF-32. Park and Library Land Tax Break.........................................................................149 FF-33. Increasing Safe School Levy Authority..................................................................150 FF-34. Equitable Funding of Community Education Services.........................................150 FF-35. Street Reconstruction Bond Approval....................................................................150 FF-36. Special Assessment Election Requirements ...........................................................151 FF-37. Federal and State Pandemic Assistance.................................................................151 FF-38. Impacts of Property Tax Payment Delays..............................................................152 FF-39. State Fund for Non-weather-related Disaster/Catastrophe Relief.......................152 6 LUMONFUR Gary Carlson Anne Finn _ Director Assistant Director (651) 281-1255 (651) 281-1263 ` gcarlson@lmc.org ' afinn@lmc.org - - -' - @garyncarlson @annemfinn 1 1 1 1 - 1 • Aid to cities • Emergency management 1 1 .11 • Economic development • Employment&human resources 1 . • Pensions& retirement • Public safety • Public finances • State bonding • Taxes • Transportation • Tax increment financing (TIF) • Workers' compensation Craig Johnson Irene Kao A Daniel Representative Counsel Cl Lightfoot (651) 281-1259 (651) 281-1260 Representative cjohnson@lmc.org ikao@lmc.org (651) 281-1295 @cajohnson_1 @irenewkao dlightfoot@lmc.org • Energy @dflightfoot • Environment • Building code • Broadband • Land use&annexation • Civil liability • Cable/franchising • Local/tribal relations • Data practices&Open Meeting Law • Housing • State bonding • Employment law • Telecommunications&information • Sustainable development • Land use&zoning technology • Wastewater, drinking water, • Wireless infrastructure &stormwater Ann Lindstrom Ted Bengtson Representative Administrative (651) 281-1261 Coordinator O alindstrom@lmc.org (651) 281-1242 @annrl tbengtson@lmc.org @tbengtsonlmc • Elections • General • Employment&human resources • Member relations • Federal relations&advocacy • Local/state regulation &licensing • Preemption 2020 LMC POLICY COMMITTEE MEMBERS Improving Service Delivery Fatima Moore, Government Relations Chair: Cathy Sorensen, City Clerk, Blaine Representative, Minneapolis Vice Chair: Brian Scholin, Councilmember, Patty Nauman, Executive Director, Metro Pine City Cities Alysen Nesse, Government Relations Jessica Beise, Administrative Services Representative, Minneapolis Director, Corcoran Loren Olson, Government Relations Pat Beety, General Counsel, League of Representative, Minneapolis Minnesota Cities Chelsea Petersen, Administrative Services Josh Berg, City Councilmember, Elko New Director, Oakdale Market Gene Ranieri, Government Relations Daniel Buchholtz, Administrator, Representative, Minneapolis Clerk/Treasurer, Spring Lake Park Calvin Saari, Mayor, Nashwauk Deborah Calvert, Council Member at Large, Marry Schultz, City Administrator, Minnetonka Alexandria Ken Cammilleri, City Administrator, Cara Schulz, Councilmember, City of Scandia Burnsville Heather Corcoran, Legislative Policy Lisa Sova, Asst Director of Finance - Analyst, Rochester Outreach, League of Minnesota Cities Amber Eisenschenk, Research Manager, Michael Sund, Election Specialist- League of Minnesota Cities Outreach and Education, St. Louis Park Tina Folch, Contracts Administrator, Red Alyssa Swanson, Administrative Assistant, Wing Victoria Mike Funk, Assistant City Manager, John Swenson, Public Safety Director, Lino Minnetonka Lakes Jake Glass, Staff Attorney, LMC Kevin Toskey, Staff Attorney, League of Erica Henderson, Deputy City Clerk, City of MN Cities Hastings Charlie Vander Aarde, Intergovernmental Blaine Hill, City Manager, Morris Relations, Metro Cities Anissa Hollingshead, City Alex Weego, Councilman, Hewitt Clerk/Communications Director, Rochester Duane Willenbring, Mayor, Rockville Steve Huser, Intergovernmental Relations, ThaoMee Xiong, Intergovernmental Metro Cities Relations, St. Paul Carly Johnson, Councilmember, Oak Park Nyle Zikmund, City Administrator, Mounds Heights View Larry Kraft, Council Member At Large, St Louis Park Improving Local Economies Andrea Lauer, Mayor, Royalton Chair: George Tourville, Mayor, Inver Niles Lavey, Councilman, Lewiston Grove Heights Melissa Lesch, SVP State and Local Gov't Vice Chair: Tony Chladek, City Affairs, MZA+CO Administrator, Rushford Gregg Lindberg, Deputy City Manager, City of Burnsville Josh Berg, City Councilmember, Elko New Market 8 Pat Beety, General Counsel, League of Mark Maloney, Director of Public Works, Minnesota Cities Shoreview Steve Bot, Administrator, St. Michael Justin Markon, Community Development Mark Box, City Administrator, Deer River Coordinator, Falcon Heights Craig Clark`, Administrator, Austin Mary McComber, Mayor, Oak Park Heights Heather Corcoran, Legislative Policy Justin Miller, City Administrator, Lakeville Analyst, Rochester Fatima Moore, Government Relations, Aisia Davis, Staff Attorney, League of Minneapolis Minnesota Cities Patty Nauman, Executive Director, Metro Marty Doll, Community & Economic Cities Development Director, Victoria Lois Nelson, Mayor, Medford Sean Dowse, Mayor, Red Wing Alysen Nesse, Government Relations Amber Eisenschenk, Research Manager, Representative, Minneapolis League of Minnesota Cities Loren Olson, Government Relations Steve Elkins, Representative, HD 49B, Representative, Minneapolis Bloomington Ross Olson, City Administrator, Sauk Jo Emerson, Mayor, White Bear Lake Rapids Lisa Eng-Same, City Council Member, Heidi Omerza, Council member, Ely West St. Paul Todd Peterson, Community Development Jenni Faulkner, Community Development Coordinator, Roseau Director, City of Burnsville Gene Ranieri, Government Relations, Tom Fletcher, Councilmember, Greenwood Minneapolis Renae Fry, City Administrator, North Brad Rykhus, Councilman, Caledonia Branch Calvin Saari, Mayor, Nashwauk Emily Goellner, Community Development Brian Scholin, Councilmember, Pine City Director, Wayzata Marty Schultz, City Administrator, Lisa Griebel, General Counsel, Minneapolis Alexandria -Public Housing Les Schultz, City County Vice President, Dan Gustafson, Council member, City of New Ulm Burnsville Lisa Sova, Asst Director of Finance - Gary Hansen, Councilmember, Eagan Outreach, League of Minnesota Cities Kyle Hartnett, Attorney, LMC Cindy Steinhauser, Community Chris Hartzell, Engineering Director, Development Director, Rochester Woodbury Robert Streetar, Community Development Steve Huser, Intergovernmental Relations, Director, Oakdale Metro Cities Kevin Toskey, Staff Attorney, League of Joe Hogeboom, Director of Community and MN Cities Economic Development, Maple Grove Charlie Vander Aarde, Metro Cities CJ Holl, City Administrator, Wells Alex Weego, Councilmember/Dep, Mayor, Kelcey Klemm, City Administrator, Detroit Hewitt, MN Lakes Ben Whalen, Councilmember, Richfield Melissa Kopachek, City Councilwoman, Michael Wojcik, Councilmember, Rochester Janesville ThaoMee Xiong, Intergovernmental Melissa Lesch, SVP State and Local Gov't Relations, St. Paul Affairs, 9 Human Resources & Data Practices Alysen Nesse, Government Relations Chair: Melissa Haas, Human Resources Representative, Minneapolis Manager, Apple Valley Loren Olson, Government Relations Vice Chair: Deb Wegeleben, Finance Representative, Minneapolis Director, Big Lake Heidi Omerza, Council member, Ely Dawn Pearson, HR Manager, Minnetonka Jessica Beise, Administrative Services Gene Ranieri, Government Relations, Director, Corcoran Minneapolis Pat Beety, General Counsel, League of Michael Rietz, City Administrator, Minnesota Cities Barnesville Wayne Boucher, Mayor, Hermantown Lisa Sova, Asst Director of Finance - Dick Brainerd, Council Member, Outreach, League of Minnesota Cities Mahtomedi Alyssa Swanson, Administrative Assistant, Casey Casella, Management Analyst, Victoria Savage ThaoMee Xiong, Intergovernmental Heather Corcoran, Legislative Policy Relations, St. Paul Analyst, Rochester Nyle Zikmund, City Administrator, Mounds Aisia Davis, Staff Attorney, League of View Minnesota Cities Peter Zuniga, Deputy City Attorney, Amber Eisenschenk, Research Manager, Bloomington League of Minnesota Cities Emmanuel Emukah, Research Assistant, Improving Fiscal Futures League of Minnesota Cities Chair: Chris Volkers, City Administrator, Julie Flaten, Administrative Services Oakdale Director, Hastings Vice Chair: Dan Matejka, City Karissa Goers, Human Resources Administrator, Goodview Administrator, Dakota County CDA Kyle Hartnett, Attorney, LMC Geralyn Barone, City Manager, Minnetonka Corrine Heine, City Attorney, Minnetonka Pat Beety, General Counsel, League of Linda Hillenbrand, Director Human Minnesota Cities Resources, Rochester Mary Blair-Hoeft, City Administrator, Joyce Hottinger, Assistant HR Director, Byron League of Minnesota Cities Sarah Brown, Debt Manager, Saint Paul Juliana Hultstrom, Council Member, Osseo Heather Corcoran, Legislative Policy Shaunna Johnson, Administrator, Waite Analyst, Rochester Park Amber Eisenschenk, Research Manager, Becky Koosman, City Clerk, Minnetonka League of Minnesota Cities Laura Kushner, HR Director, League of Emmanuel Emukah, Research Assistant, Minnesota Cities League of Minnesota Cities Fatima Moore, Government Relations, Arik Forsman, Councilmember, Duluth Minneapolis Marshall Hallock, Administrative Business Shari Moore, City Clerk, St. Paul Director, Red Wing Willie Morales, City Administrator, Lisa Herbert, Finance Director, Rogers Appleton Blaine Hill, City Manager, Morris Patty Nauman, Executive Director, Metro Connie Holmes, Mayor, City of Waverly Cities 10 Tom Lawell, City Administrator, City of Apple Valley Melissa Lesch, SVP State and Local Gov't Affairs, Melanie Mesko Lee, City Manager, City of Burnsville Fatima Moore, Government Relations, Minneapolis Willie Morales, City Administrator, Appleton Patty Nauman, Executive Director, Metro Cities Darin Nelson, Finance Director, Minnetonka Alysen Nesse, Government Relations Representative, Minneapolis Amanda Novak, Council Member, Elko New Market Steven Okins, Finance Director, Willmar Loren Olson, Government Relations Representative, Minneapolis Chelsea Petersen, Administrative Services Director, Oakdale Trisha Pollock, Finance Director, Victoria Gene Ranieri, Government Relations, Minneapolis Brad Rykhus, Councilman, Caledonia Marty Schultz, City Administrator, Alexandria Lisa Sova, Asst Director of Finance - Outreach, League of Minnesota Cities Christina Van Nevel, Research Law Clerk, League of MN Cities Deb Wegeleben, Finance Director, Big Lake Jim Weikum*, Mayor, Biwabik John Werner, Mayor, Rice Lake Brad Wiersum*, Mayor, Minnetonka Vince Workman, Council Member, City of Burnsville ThaoMee Xiong, Intergovernmental Relations, St. Paul Nancy Zaworski, Finance Director, Kasson `LMC Board of Director 11 LMC POLICY DEVELOPMENT PROCESS The City Policies document addresses more than 200 legislative issues that impact cities and serves as the foundation of the League of Minnesota Cities (LMC) advocacy efforts. City officials from across the state are recruited throughout the year to serve on one or more policy committees. In 2020, over 130 city officials participated in the policy committees. Policies are considered, discussed, and revised annually with considerable member input. Then, draft policies are published online for member comments before being considered for approval by the LMC Board of Directors. Guided by the City Policies, LMC member cities and staff actively advocate for city-friendly legislation. Below are some of the major events in the policy development process: January The Minnesota Legislature begins the first session of each two-year biennium in January of odd-numbered years. The 2021 Legislative Session began on January 5, 2020. February The Legislature typically begins the second session of each biennium in February or March of even-numbered years. March/April In March, the National League of Cities usually hosts the Congressional City Conference in Washington, D.0 and the League's legislative conference is held in St. Paul. Due to questions surrounding the ongoing pandemic, both are anticipated to be conducted in some sort of virtual manner. May Under the Minnesota Constitution, the deadline to end any legislative session is the first Monday following the third Saturday in May (May 17, 2021). The governor may call special legislative sessions when necessary. June At the LMC Annual Conference (Tentatively: Rochester, June 23-25, 2021), members provide comments on City Policies throughout the conference and during the Legislative Update. July Policy committees hold their first of three meetings. The July meeting typically includes a review of the most recent legislative session, a preliminary discussion of emerging issues, and a review of member comments and board interim policies from the prior year. August Policy committees hold their second of three meetings to hear from subject-matter experts on existing and potential new policy topics. September Policy committees meet for a third time to finalize their work and make specific policy recommendations to the LMC Board of Directors. October Draft policies, as approved by the policy committees, are shared with members online during the comment period. Member input is also sought from city officials attending LMC Regional Meetings around the state each fall. November The LMC Board of Directors reviews member input, then considers and amends the policies for the following calendar year. The Board adopts policies on behalf of League members before the start of the next legislative session. 12 PURPOSE, PROCESS AND PRINCIPLES OF CITY POLICIES The League of Minnesota Cities is dedicated to promoting excellence in local government through effective advocacy, expert analysis, and trusted guidance for all Minnesota cities. Each year, the League's member cities identify common needs and goals, and the Board of Directors adopts policies designed to help cities overcome obstacles and reach those goals. These policies serve as the foundation of the League's advocacy work on behalf of Minnesota cities. There are 853 cities in Minnesota, and 835 cities are members of the League of Minnesota Cities. Eleven townships and 63 special districts/other members are also League members. The League's members include the smallest rural cities in Greater Minnesota and the largest cities in the urban core; they include suburban communities in the Metropolitan Area and regional centers in every corner of the state. Every member of the League has a voice in developing the following policies. Two core principles guide the development of City Policies and the actions of the League: 1. Local units of government must have sufficient authority and flexibility to meet the challenges of governing and providing citizens with public services. The Legislature must avoid imposing unfunded and underfunded mandates that erode local control and create liability and financial risk for city taxpayers. 2. The increasingly complex and costly requirements necessary for cities to provide services to their citizens require a strong partnership between federal, state, and local governments. This partnership should be based upon a shared vision for Minnesota and should allow individual communities to tailor that vision to the unique needs of their citizens. Because of the fluid nature of emerging issues, state and national politics, and current events, additional and alternative policies may be proposed after the policies are adopted by the Board of Directors. The League will make every effort to notify members of substantial changes or additions to policies after they are adopted by the Board of Directors. 13 IMPROVING SERVICE DELIVERY SD-1. Local Control SD-2. Unfunded Mandates Issue: Cities are often laboratories for Issue: Federal and state mandated programs determining public policy approaches to the substitute the judgment of Congress, the challenges that face citizens. Success in president, the Minnesota Legislature, and providing for the basic needs of a functional the governor for local budget priorities. society is rooted in local control to These mandates force cities to reduce determine how best to respond to the ever- funding for other basic services or to changing needs of a citizenry. Because city increase taxes and service charges. government most directly impacts the lives Response: of people, and representative democracy ensures that locally elected officials are held a) Existing unfunded mandates should accountable for their decisions through local be reviewed and modified, or repealed elections, local governments must have where possible. sufficient authority and flexibility to meet b) No additional statewide mandates the challenges of governing and providing should be enacted unless full funding citizens with public services. for the mandate is provided by the level of government imposing it or a Response: The increasingly complex and permanent stable revenue source is costly requirements necessary for cities to established. provide services to their citizens would c) Cities should not be forced to comply benefit from a strong partnership with unfunded mandates. between federal, state and local d) Cities should be given the greatest governments. This partnership should be flexibility possible in implementing based upon a shared vision for Minnesota mandates to ensure their cost is and should allow individual communities minimized. to tailor that vision to the unique needs of their citizens without mandates and SD-3. Local Approval of Special policy restrictions imposed by state and federal policy makers. The state should Laws recognize that local governments, of all Issue: The Minnesota Constitution prohibits sizes, are often the first to identify problems and inventive solutions to solve special legislation except for certain special them, and should encourage further laws relating to local government. It provides that a special law must name the innovation by increasing local control. affected local unit of government and is The state should not enact initiatives that effective only after approval by the local erode the fundamental principle of local government unit, unless general state law control in cities across Minnesota. provides otherwise. Under state statute, a special law is not effective unless approved by the affected local unit of government, except under limited circumstances. 14 In recent years, the Legislature has Cities have and will continue to re-evaluate occasionally enacted general laws that affect city programs and services,pursue the use of a single local unit of government. By cooperative agreements, and consider enacting a general law with limited organizational changes that provide greater application, local approval is not required. government efficiency and result in better service to citizens. Citizen input and Response: The League of Minnesota participation should be gathered and taken Cities supports the constitutional into account as decisions about service requirement that a special law must be delivery are being made and implemented. approved by the affected local unit of government before it can take effect. If a All levels of government are encouraged to: law is intended to affect or benefit a single local unit of government, the Legislature a) Ensure that in redesigning, reinventing must follow the requirements for enacting or reassigning government services and a special law set forth in the Minnesota programs, the appropriate level of Constitution and in state statute. The service to citizens is evaluated and League specifically opposes the citizen demands and expectations are Legislature's technique of bypassing the adequately addressed. constitution by not naming the local b) Engage as many citizens as possible, government,but describing the local from diverse backgrounds and interests, government in such narrow terms that it to determine what services matter most can only apply to one entity. to citizens and how the delivery of those services can be changed to increase SD-4. Redesigning and Reinventing efficiency and lower cost. Government c) Educate citizens about what services government delivers, how they are Issue: Every level of government is delivered, and how those services are redesigning, reinventing, and reevaluating funded. its organizational structure and programs in d) Engage in traditional and nontraditional response to financial realities and citizens' partnerships to make service changes needs and problems. Reforms, however, and do things in new ways. must be more than change for the sake of e) Identify and repeal programs or change to existing programs. It is discontinue services that are no longer imperative that government officials talk necessary, and evaluate which services with citizens about how services are can readily and fairly be provided by the currently provided and how they can be best private sector. provided in the future. Response: Federal, state, and county To be meaningful, redesign of governmental governments should: entities and services should: a) Promote and support local redesign a) save money where feasible; efforts through incentives rather than b) deliver improved services; mandates. c) serve essential needs; and b) Communicate and establish a process d) be equitably structured. of negotiation before shifting responsibility for delivering services from one level of government to 15 another, or seeking to reduce service operations into a new biennium in the duplication. event that the governor and legislators c) Utilize government entities with cannot reach a budget agreement. proven track records in redesign Specifically, the Legislature and governor efforts. should modify state law to assure that the staff necessary to distribute state funds SD-5. State Government Shutdowns that are already encumbered or statutorily appropriated to local Issue: Twice in less than one decade, the governments are distributed as statutorily state Legislature and governor failed to scheduled, or in the absence of a statutory reach a global agreement on the state budget payment schedule, are released in a by the end of the fiscal biennium (June 30 of predictable and timely manner in the odd-numbered years). As a result of these event of future shutdowns. impasses,portions of state government were shut down. The shutdowns, particularly the The Legislature should also pass shutdown in 2011, created a range of legislation that allows existing licenses of challenges for cities, as well as for the public employees to be continued during state's courts, residents, businesses, licensed any future state government shutdown professionals, state employees and others. and should identify additional areas, such as electrical and plumbing inspection and For cities, the most pronounced challenges plumbing plan review,where local related to the shutdowns were as follows: governments could reasonably step in to handle the inspections, review, and a) Uncertainty about the timing and amount approval necessary for local projects to of aid and credit reimbursement move forward, and allows work on payments and the distribution of local approved projects to continue in state sales tax revenues. rights-of-way. b) Inability of licensed city professionals such as peace officers and water SD-6. Duration of Conservation treatment facility operators to renew Easements licenses. c) Loss of access to critical information Issue: The Minnesota Marketable Title Act such as the Bureau of Criminal provides that any deed over 40 years old can Apprehension database and state- be disregarded unless the holder of the mandated reports. interest re-records it. There is an exception d) The shutdown of transportation projects for a person in possession of the property. A on the trunk highway and state aid 2010 Minnesota Supreme Court decision system. said that the person in possession has to e) Interruption of local economic show that the possession has been visible development due to the state having sole enough to put a prudent person on notice of authority to inspect, review and approve the interest, and that the possession has to be various plans and types of projects. continuous. Sampair v. Village of Response: The League of Minnesota Birchwood, 784 N.W.2d 65 (Minn. 2010). Cities urges the Legislature and governor This creates issues for cities that have to establish a procedure in state law to conservation easements. It is difficult, if not continue certain state government impossible, to show actual use of the 16 easement because conservation easements SD-7. Racial Equity in Minnesota are passive easements, not active ones. As a result, cities will have to re-record the Issue: Since the earliest days of its history, easements every 40 years in order to race and racial inequity issues have been maintain them. This will result in a present in Minnesota. Land acquisition and significant administrative burden and ownership, discriminatory covenants increase costs for local units of government restricting homeownership to white due to staff time, legal fees, and recording Minnesotans, and patterns of systemic, fees. structural, and institutional racism have brought the state to experience some of the Additionally, Minn. Stat. § 500.20, entitled worst racial disparities in the country for "Defeasible Estates,"provides in subd. 2a employment, housing, education, health, that private covenants, conditions, or criminal justice, and law enforcement. restrictions that affect the title or use of real Explicit and implicit bias toward people of estate cease to be valid 30 years after the color are prevalent in public policies and date of the instrument creating them and other rules governing Minnesota residents. they may be disregarded. This provision Racial equity is accomplished when race can was initially enacted in 1988. no longer be used to predict success, and we have government and systems that work for Minn. Stat. ch. 84C regarding conservation all. easements was enacted in 1985, and Minn. Stat. §§ 84.64-.65 regarding conservation The data is readily available from the U.S. restrictions were originally enacted in 1974. Census, the state demographer, and local Because conservation easements and government. For example, Minnesota ranks conservation restrictions are not listed 50th in the nation for median income among the restrictions that are not subject to equality and 49th in homeownership Minn. Stat. § 500.20, subd. 2a, it is possible equality. The killing of George Floyd and to conclude, by negative implication, that the disproportionate impact of COVID-19 subd. 2a does apply to the conservation on communities of color have further easements and conservation restrictions highlighted the critical need to overhaul our created by earlier enacted statues. This laws,policies, and practices to address conclusion is inconsistent with the language systemic racism. in Minn. Stat. § 84C.02(b)that"a conservation easement is unlimited in Racial demographics are continually duration unless the instrument creating it changing throughout the state. According to otherwise provides." the state demographer, 20 percent of Minnesota's population are people of color. Response: The League of Minnesota All racial groups have recently increased in Cities supports legislation that excepts the state, but between 2010 and 2018, holders of conservation easements from Minnesota has added five times as many re-recording the easements under the people of color as white residents. Minnesota Marketable Title Act and that clarifies that Minn. Stat. § 500.20, subd. While every city may be in a different place, 2a, does not apply to conservation the need for racial equity and the need to easements and restrictions. repair past racial harms touches all communities, from the most racially diverse cities to cities with very few or no people of 17 color. In recognition of the need to strive for a) Partner with local government and racial equity, cities are invested in building a communities of color to identify more equitable future when every resident and address racial equity issues; can thrive regardless of race. Among efforts b) Proactively assess past racial cities are undertaking are: harms and develop actions to address them; a) Examining how cities deliver c) Collect and provide data services and set local policies among disaggregated by race necessary city staff and elected officials; for cities and the state to make b) Creating high-level staff positions informed decisions about how to and departments to address race address racial disparities; equity, financial and educational d) Develop a state system for the opportunity, diversity, and analysis proactive and innovative of city policies; development and delivery of c) Engaging with the communities of resources to local government to color to build/rebuild relationships address racial equity including and trust; policy and service options,local d) Establishing city commissions to engagement tools,policy expertise, address race and racial equity issues and financial resources; and with local affected communities; and e) Actively review and amend e) Working to improve access to city existing statutory language to procurement opportunities for identify laws that contribute to veteran-, woman-, and minority- racial inequities and consider owned businesses. racial equity impacts when crafting proposed legislation and However, cities acknowledge that there is policies. much work that still needs to be done before success for all Minnesotans can be achieved SD-8. Immigration Reform regardless of race. To optimize success for all Minnesotans, cities cannot work in Issue: The United States and the State of isolation on racial equity issues. Minnesota have long traditions of welcoming immigrants. Immigrants Further, it should be acknowledged that strengthen Minnesota by contributing to the community members who are both from state's economy, enhancing cultural communities of color and are immigrants resources, and participating in efforts to require local governments to understand the build strong communities. intersection between these two issues and evaluate public policy initiatives from According to the National League of Cities, multiple social justice perspectives. League roughly 35 percent of undocumented policies on immigration and racial equity are immigrants have lived in the United States heavily interrelated in that situation. for 10 years or more. Approximately 1.6 million undocumented immigrants are Response: In order to best support and children, and another 3.1 million children in serve all Minnesotans,the State should the United States have at least one take a leadership role by prioritizing undocumented parent. These families are addressing racial equity through its forced to live "underground" and are unable actions: to get drivers' licenses or car insurance in 18 most states. In addition, they are unlikely to Cities are concerned that damage to private obtain health insurance and are afraid to service laterals within the public right-of- report crimes to local law enforcement. way continues due, in part, to construction methods during the replacement, repair Since immigrants are barred from most and/or installation of underground utilities federal public assistance, the burden of which cross city water and sewer services providing social services, education, and that are in the public rights-of-way. health care falls to state and local Trenchless excavation could potentially governments that are increasingly feeling cause damage to underground service the financial impact of both legal and illegal laterals and negatively impact the quality of immigrants living in their communities. utility services. Response: The League of Minnesota Response: The League supports the Cities,together with the National League changes to the definition of excavation of Cities, urges Congress to move quickly presented by MNOPS at the 2012 Review to enact and enforce effective of Minn. Stat. ch. 216D. Cities support immigration laws. the elimination of windbreaks, shelterbelts, and tree plantations from the Federal and state governments must not definition of excavation, unless any of transfer responsibility for enforcing U.S. these activities disturbs the soil to a depth immigration laws to local personnel, of 18 inches or more. including police officers, firefighters, educators, health professionals, and social The League supports exempting normal service employees. Finally, federal and maintenance of roads and streets from the state governments must not prohibit local definition of excavation if the units of government from implementing maintenance does not change the original policies aimed at fostering positive grade and does not involve the road ditch relationships between local government by defining "original grade" as the grade officials,including law enforcement at the date of issue of the first notice by personnel, and immigrant communities. the excavator. SD-9. Responsibility for Locating The League supports increasing MNOPS Private Underground Facilities fines for violators of state pipeline safety requirements,bringing state penalties in Issue: Cities are responsible for complying line with federal penalties. with state pipeline safety regulations that hold cities responsible for locating and The League opposes mandatory damage marking private service laterals that connect reporting and recommends a simple in public rights-of-way to city sanitary and standardized form to encourage cities to storm sewer, water, and district heating voluntarily report damages. The League systems. The Minnesota Office of Pipeline opposes requirements that would force Safety (MNOPS) is proposing amendments cities to mark underground facilities of all to state pipeline and safety rules related to sizes and materials. the definition of excavation and changes to mandatory damage reporting. The League recognizes that trenchless excavation presents concerns to cities. Private property owners in the excavation 19 area must receive advance notice of any exist in the public right-of-way.When a trenchless or other excavation activities MnDOT construction project requires the that could affect the quality of utility relocation of utilities, the cost of services. Notice must include at least one relocating municipal utilities should be phone number for assistance in case of shared equitably between MnDOT and any service problems. affected municipal utilities. Contractors must comply with city SD-11. National Fire Protection permits requiring that the drill head be Association (NFPA) Standards visible when crossing any paint marks and moving through the pothole at the Issue: The National Fire Protection depth that the city allows for the Association (NFPA) is an international installation. association of individuals and trade and professional organizations that deals with Cities must not be required to locate fire and life safety. The NFPA has privately-owned water and sewer laterals advocated legislation that would mandate and must not be held responsible for two standards: NFPA 1710, Organization actions by excavators when the city and Deployment of Fire Suppression determines not to locate such facilities. Operations, Emergency Medical Operations, Excavators should be responsible for and Special Operations to the Public by locating and protecting any private Career Fire Departments, and NFPA 1720, service lateral that is impacted by Organization and Deployment of Fire excavation activities conducted on private Suppression, Emergency Medical property beyond the public right-of--way. Operations, and Special Operations to the Public by Volunteer Fire Departments. SD-10. Utility Relocation Under NFPA standards 1710 and 1720 define Design-Build Road Construction minimum response times, minimum fire company staffing levels, initial full alarm Issue: The Minnesota Department of response levels, and extra alarm response Transportation (MnDOT) has promoted levels. Although NFPA codes and standards legislation relating to the design-build are voluntary, they are often adopted by construction process that would require local jurisdictions. private and public utilities to be responsible for utility relocation necessitated by road Response:Levels of service delivery for construction. The policy, if enacted, would fire and emergency medical services create unanticipated costs for utilities owned (EMS) have always been determined by and operated by cities. Municipally-owned local jurisdictions. If mandated,the utilities would be unreasonably held to the NFPA standards would force local same standards as privately-owned utilities governments to shift dollars from fire that exist in the public right-of-way. prevention programs to fire suppression activities, potentially increasing the risk Response: The League of Minnesota of fire and the danger to local firefighters. Cities supports use of the design-build procedure, however, municipal utilities The League of Minnesota Cities opposes that exist in the public right-of-way any attempt to mandate standards for should not be penalized under this minimum staffing levels of fire, process. Municipal utilities legitimately specialized or EMS vehicles controlled by 20 units of local government. The League These provisions should include statutory also opposes any attempt to adopt a definitions and clarifications for: standard dictating or affecting the response time of any fire, specialized or a) Who is in command of the mutual aid EMS vehicle. scene. b) Who will cover the firefighters for SD-12. Fire Mutual Aid worker's compensation. c) How liability and property claims will Issue: City and township fire departments be handled. regularly assist each other with firefighting d) Who will pay for expendable supplies and other response activities. This mutual such as foam. aid is mostly authorized by individual e) When fire departments will charge written contracts with each city or township, each other for these services. which results in a patchwork of different f) The ability for fire departments to opt agreements with different provisions. Often, out by having a separate written each city attorney recommends different agreement. provisions. SD-13. Clarification of Joint Powers Following the Red River floods and the St. Relationships with Federally Peter tornados, emergency responders Recognized Indian Tribes (including fire departments) met and helped pass a statute to govern mutual aid situations Issue:During the 2010 legislative session, when there is an emergency declared by Minn. Stat. § 471.59 was modified to allow mayor or governor and no written federally recognized Indian tribes to agreements exist. The statute, Minn. Stat. § participate in joint powers agreements with 12.33 1�provides a framework for how other governmental entities, including workers compensation, liability,property Minnesota cities. Indian tribes are claims, insurance, and charges between the extremely unique legal entities under federal departments will be handled in mutual aid law and international treaties. The new law situations. was a broad brush authorization that did not The League of Minnesota Cities Insurance address important issues that uniquely arise Trust(LMCIT) developed a model mutual when dealing with Indian tribes related to sovereignty, insurance liability and liability aid agreement that contains the same basic limits (commonly called"tort caps"). structure for liability as the statute. Many Previous laws, such as Minn. Stat. § 626.93 cities have entered into area-wide mutual aid (authorizing tribes to act as law enforcement agreements that are similar to the LMCIT entities) explicitly addressed these concerns. model agreement. To provide uniformity, there should be a statute that is similar to Since the new law passed, interest has been expressed by public safety groups and Minn. Stat. § 12.331, to govern daily fire individual cities in entering into joint powers mutual aid situations that do not rise to the agreements with federally recognized Indian level of emergencies. tribes. However, legislative guidance is Response: The Legislature should pass a needed to address concerns related to statute to provide uniform provisions sovereignty, insurance and liability limits for when fire departments assist each other. these agreements. 21 Response:Include in Minn. Stat. § 471.59 ability of many non-government-based (the joint powers statute) language ambulance service providers to deliver substantially similar to Minn. Stat. § emergency care, particularly in rural 626.93 that clarifies that Indian tribes Minnesota. All ambulance services and entering into joint powers relationships personnel are regulated by Minn. Stat. ch. agree to: 144E and must comply with the same licensing, training, and equipment-related a) Be subject to liability for its torts and requirements, regardless of ownership. those of its officers, employees, and agents acting within the scope of their In addition, the liability exposure of medical employment or duties arising out of directors associated with ambulance service the joint powers agreement to the is a concern. While medical directors of same extent as a municipality under government-based ambulance services may Minn. Stat. ch. 466; and arguably be covered by public official b) Notwithstanding Minn. Stat. § 16C.05, immunity, the law is unclear and should be subd. 7,waive its sovereign immunity clarified. with respect to claims arising from liability under the joint powers. Response: The League of Minnesota Cities supports federal legislation that would: SD-14. Ambulance Service Costs and Liability a) Require Medicare to set ambulance payment rates at the "regional cost" of Issue: The cost of providing ambulance care providing service; has increased steadily over the last several b) Require adequate reimbursement for years due in part to changes in Medicare and ambulance providers; Medicaid reimbursement. The federal c) Establish a "prudent layperson" Balanced Budget Act(BBA) of 1997 made standard for the payment of two significant changes to ambulance emergency ambulance claims such billing. First, the act mandated that all that if a reasonable person believed an ambulance services accept Medicare and emergency medical problem existed Medicaid assignments as payment in full; when the ambulance was requested, that is, ambulance services cannot bill the Medicare would pay the claim; Medicare or Medicaid patient for any unpaid d) Make it easier for providers to file balance beyond the Medicare or Medicaid claims with Medicare by eliminating a assignment. Second, the act mandated a processing system that often leads to uniform fee schedule that was implemented the rejection of legitimate in April 2002. The new fee schedule reimbursement claims. significantly reduced reimbursement levels for many ambulance services. The BBA The League also urges the Legislature to mandates are impacting the ability of some extend the protection of the state and Minnesota ambulance service providers to municipal Tort Claims Act to licensed adequately fund their operations. third parties that contract with a municipality to provide ambulance The loss of revenue due to Medicare and services. The League also supports Medicaid reimbursement changes, coupled extending the applicability of public with higher insurance rates, is affecting the 22 official immunity to medical directors in SD-16. Improving and Increasing the course of ambulance service activities. Citizen Access to Information SD-15. Fees for Service Issue: State law requires that cities publish Issue:While general services—such as certain types of information in a"qualified" newspaper designated by the city. While the permitting, inspections or enforcement—are requirements vary based on city population typically funded out of a city's general fund, size, most cities must publish: ordinances cities often impose fees to cover the cost of before they can take effect; advertisements providing certain services,permits, and for bids; various financial reports; meeting licenses. and hearing notices; notices of elections; The Legislature and interest groups often dates for filing affidavits of candidacy; and sample ballots. Collectively, these items are seek to mandate or preserve fee limitations referred to as "official notices," legal for city services. Over the last several years, notices" and"public notices" in state statute. the Legislature has enacted a number of new laws designed to rigorously control local There are several requirements in statute for fee-setting authority. Examples of such a newspaper to be a"qualified" or"official" mandates include placing limits on coin- newspaper for the city. For instance, there operated amusement machine license fees, can only be one newspaper chosen for the on-sale and off-sale liquor license fees, city; it must be printed in English in a license fees for retailers selling fireworks, newspaper format; if it is a daily newspaper, deputy registrar fees and planning and it must be distributed at least five days each zoning fees. The state also requires cities week; if not a daily paper, it may be that collect more than $5,000 in distributed twice a month with respect to the development-related fees each year to publishing of government public notices; it annually report all construction and must be circulated in the city which it development fees to the Department of purports to serve, and either have at least Labor and Industry. 400 copies regularly delivered to paying subscribers or have at least 400 copies Response:While the state has a role in distributed without charge to local residents. providing a general, statewide funding policy,the state should not interfere in the As technology has evolved, citizens have decision-making functions performed by become more accustomed to the cities when setting city budgets to provide instantaneous availability of online city services. The League of Minnesota information. Because cities are committed to Cities seeks authority for cities to charge providing information to citizens and fees that are reasonably related to the cost responding to this demand, they have of providing the service,permit or license. invested heavily in their websites and in The League opposes legislation that growing a robust online presence. They would require specific methods to pay for survey citizens about what method of city services or would place caps on city communication is preferred and based on fees. this, cities update, reform, evolve, and advance communication tools and often, they do so with limited means and resources to ensure citizens have access to information about their city. 23 Because of the publishing mandate outlined enforcement programs for violations of local in state statute, cities continue to publish in regulatory ordinances such as building newspapers with limited resources while codes, zoning codes, health codes, and simultaneously providing information to public nuisance ordinances. This use of citizens in the format they actually demand: administrative proceedings has kept online. These requirements originated in enforcement at the local level and reduced 1949 and to ensure the original intent of the pressure on over-burdened district court law—providing citizens access to their local systems. Cities using administrative government—it is time to eliminate these enforcement processes experience a lower outdated requirements and make cost of enforcement and a quicker resolution communicating with citizens more efficient. to code violations. Response: The Legislature should Minnesota statutes expressly provide the eliminate outdated and unnecessary authority for all cities to utilize publication requirements that are no administrative enforcement of local codes longer relevant or representative of the and enforcement of liquor license and technology we now have that has tobacco license violations. significantly increased access to government. Cities should have the In 2009, the Legislature amended Minn. authority to: Stat. ch. 169, the chapter of law pertaining to state traffic regulations, to allow cities a) Determine whether web publication and counties to issue administrative citations should replace or supplement for certain minor traffic offenses. Since the newspaper publication based on the passage of the 2009 administrative traffic unique needs of each community. citations law, some people have questioned b) Designate an appropriate publication whether administrative citations for non- that reaches the maximum number of traffic, liquor, and tobacco license code citizens possible. violations can be legally issued by statutory c) Use alternative means of cities given that state law does not expressly communication to fulfill statutory provide authority on other code matters. requirements such as city newsletters, cable television,video streaming, e- Response: The League of Minnesota mail,blogs and city websites. Cities continues to support the use of city d) Expand the use of summaries where administrative fines for local regulatory information is technical or lengthy. ordinances, such as building codes,zoning e) Publish and provide public access to codes, health codes,public nuisance local codes of ordinances on a website ordinances, and regulatory matters that accessible to the public and to post are not duplicative of misdemeanor or revisions and changes to city codes, higher-level state traffic and criminal resolutions, and rules on the city offenses. The Legislature should clarify website,when feasible. that both statutory and home rules charter cities have the authority to issue SD-17. Administrative Fines for administrative citations for code Code Violations violations. Further, state statute should allow statutory and home rule charter Issue: Many statutory and home rule charter cities to adjudicate administrative cities have implemented administrative 24 citations and to assess a lien on properties to review municipal contracting laws, and for unpaid administrative fines. consider contracting and purchasing reforms that give cities the flexibility to SD-18. Contracting and Purchasing provide quality goods and services at the lowest cost to taxpayers. Issue:Minnesota statutes stipulate contracting and purchasing requirements for SD-19. City Enterprise Operations Minnesota cities. The law prescribes the process political subdivisions must use to Issue: Historically, city enterprise make purchases and award contracts, and operations have been created in response to requires a competitive sealed bid procedure community needs, lack of a private market, for contracts or purchases over $175,000. financial reporting requirements, state and The intent of these statutory requirements is federal mandates, to enforce state and local to provide taxpayers with the best value for law, and to ensure a quality of life for the their dollar and ensure integrity in the residents of a community. Establishing an process. However, imposing these statutory enterprise operation allows a city to provide requirements may, at times, result in a desired service while maintaining financial political subdivisions paying more for goods control over service levels, costs, and public and services than private entities under the inputs. same circumstances. The Legislature recognized the benefits In some cases, enterprise operations produce associated with alternative purchasing general public benefits and may require methods when it amended municipal public support to ensure a desired level of contracting law in 2004 to authorize the use service at a reasonable cost. The benefits of of reverse auctions to purchase supplies, an enterprise operation, therefore, should be materials, and equipment. Similarly, other evaluated not solely in terms of profitability contracting procedures, including "design- but also on the service benefits to citizens of build" and direct negotiation are proven the community. alternatives to the formal bidding process. Authorizing broader use of these types of Response: The League of Minnesota alternatives as the Legislature did in 2009 by Cities supports the local decisions made authorizing a design-build pilot program, by cities to deliver services by establishing would enhance the ability of cities to make a city enterprise operation. The state appropriate and fiscally responsible should refrain from infringing on the purchasing decisions. ability of a city to provide services for its community. Response: The League of Minnesota Cities supports broader use of alternative SD-20. Preservation of Order in contracting and purchasing methods that City Council Meetings streamline the process and reduce local purchasing costs. Specifically,the League Issue: The Minnesota Supreme Court supports authorizing cities to use the recently held a provision in Minn. Stat. § design-build procedure and providing 609.72, subd. 1(2), that prohibits disturbing municipalities with broader authority, public meetings was unconstitutionally similar to that of private businesses,to broad. State v. Hensel, A15-0005 (Minn. directly negotiate contracts. The 2017). Minn. Stat. § 412.191 gives statutory Legislature should establish a task force authority to city councils to preserve order 25 and regulate procedure at their meetings. is the appropriate governing body to Cities rarely relied on the struck-down consider and enact laws that reflect statute, but instead used other avenues to statewide interests. Utilizing maintain order, such as issuing warnings and constitutional amendments to change enforcing decorum rules. The struck-down public policy circumvents this process. statute served as a last resort when other options did not work. Therefore,the League supports requiring a supermajority vote (two-thirds in Response: The Legislature should ensure support) by the Legislature to put an statutes adequately balance public amendment on the ballot. participation with the ability to effectively manage public meetings and protect SD-22. Initiative and Referendum public safety. Issue: The Legislature has frequently SD-21. Constitutional Amendments considered legislation to establish initiative and referendum by proposing to place a Issue: The Minnesota Constitution requires question for voter approval on the state that a constitutional amendment be approved general election ballot to amend the state by a simple majority of both chambers of the constitution to allow voters to initiate or Legislature at one session, and must then be repeal state laws by submitting a petition ratified by a majority of all the voters voting which would cause such questions to be at the election. Minnesota is one of 18 states placed on the state general election ballot. that require a simple majority vote by legislators while 26 states require a higher Response: Cities strongly support our threshold (17 states require a two-thirds representational system of governance majority and nine require a three-fifths and,therefore, oppose amending the state majority). Since statehood, 215 proposed constitution to provide for initiative and constitutional amendments have been voted referendum. The Legislature is the on by the electorate; 120 of them have been appropriate governing body to consider approved (56%) and 95 rejected(44%). and enact public policy that reflects statewide interests. Cities provide a variety of critical and essential services to residents of Minnesota. The process of adopting state law based Many public policy decisions at the state on good public policy is best upheld and level impact cities and therefore, city supported by increasing the officials depend on their state legislators to accountability and responsiveness of the represent city interests at the Legislature. legislative process, not by circumventing it. Presenting complex issues to voters in Additionally, unlike a statutory change, a the guise of direct democracy further constitutional amendment is difficult to weakens representative government. modify or repeal once enacted. A state constitutional amendment to Response: The League of Minnesota provide for initiative and referendum Cities strongly supports our subjects cities and their residents and representational system of government taxpayers to the unintended outcomes of and opposes laws and amendments that sometimes unwise attempts to place restrict local government. The Legislature significant public policy decisions into the 26 hands of special interests that can raise the immunity(e.g., state trails over unlimited funds for the purpose of municipal utility easements). promoting their more narrow interests. e) Preserving changes to Minnesota's joint and several liability laws that SD-23. Civil Liability of Local require a municipality to be at least 50 Governments percent at fault to be held responsible for 100 percent of a damage award. Issue: One of the barriers to the delivery of f) Reasonable limits on the amount and governmental services and programs is the circumstances in which statutory exposure of local governments and their attorney fees may be awarded in order officials to civil damage claims. The state to encourage settlement by all parties has acted to protect itself and its local and decrease the likelihood of governments by enacting exceptions and litigation. limitations to liability suits, and authorizing g) Preserving the essential structure of self-insurance and other mechanisms to deal the local government tort liability caps with claims allowed by law. in Minn. Stat. § 466.04. Response: The League of Minnesota SD-24. Private Property Rights and Cities supports: Takings a) Creating an exception to municipal Issue: In the wake of the U.S. Supreme tort indemnification law,Minn. Stat. § Court's 2005 decision,Kelo v. City of New 466.07,where an employee is defended London, 545 U.S. 469, which upheld the and indemnified for claims under a ability of local governments to use eminent contract of insurance carried by the domain for economic development employee. purposes, the Legislature enacted significant b) Extending the protection of the state restrictions on cities' use of eminent domain and municipal Tort Claims Act to for economic development and quasi-governmental entities when redevelopment, and imposed new performing public services such as compensation and procedural requirements firefighting or licensed third-party that apply to all condemnation actions, ambulance providers that contract including those for traditional public uses with a municipality to provide such as roads,parks, and schools. ambulance services. Legislation to control cities' abilities to c) Existing constitutional safeguards for perform regulatory acts—such as road protecting public and private property rights-of-way condemnation, shooting range interests without any statutory zoning, and amortization—has also received expansion of property rights. strong support from legislators. In addition, d) Clarifying and maintaining the some legislators would like to authorize applicability of municipal immunity in businesses to seek inverse condemnation various areas,including,but not when a governmental entity enters the limited to,vicarious official immunity business market and provides competing and park and recreational immunity, goods or services or limits the number of including the extension to entities businesses that can operate privately or providing a public service that have receive public contracts. not traditionally been included within 27 Such legislative initiatives threaten a wide advance a greater public good that array of planning, environmental, historic benefits the community. preservation, and land conservation b) Empowers local elected officials to measures and undermine the fundamental determine whether a particular taking responsibility of cities to protect the public of property serves a public purpose. health, safety, and welfare of its citizens. c) Creates incentives to encourage landowners to voluntarily sell their In 2006, the Legislature enacted Minn. Stat. property to the public for § 117.031, a statute related to attorney fees development or redevelopment. in the eminent domain process. The d) More appropriately balances awards structure of the statute has resulted in of attorney fees and costs of litigation attorney fee awards in eminent domain with the outcome of the eminent actions that have no relationship to the domain proceeding. outcome of the case, serve only to encourage litigation, and shift limited public funding away from infrastructure projects. SD-25. Organized Solid Waste Response: State law must continue to Collection provide cities with the tools needed to Issue:"Organized collection"refers to a balance the rights of private property situation where a local unit of government, owners with the interests of the public. for any of a variety of reasons, decides that The League of Minnesota Cities opposes there is a public interest served by limiting legislation that diminishes the ability of the number of solid waste and recycling cities to act in the best interest of the collection services available in the area. The health, safety, and welfare of its citizens; reasons for implementing organized that increases the cost of doing business collection can vary, but include: for the public good; or that creates the possibility of additional lawsuits against a) Public safety concerns caused by the cities. number and frequency of large trucks moving quickly through residential Specifically,the League opposes neighborhoods; legislation that: b) Reducing wear on public infrastructure a) Allows businesses to seek inverse from heavy truck traffic; condemnation when a city provides c) Improving the efficiency, cost and competing goods or services, or limits quality of garbage and recycling service the number of private operators. provided to local residents; b) Creates an automatic cause of action d) Cooperating with other local for damages any time a local governments to best meet solid waste regulatory action impacts the use or management and recycling objectives; reduces the value of private property. e) Taking local steps to reduce energy impacts of public services; and The League supports legislation that: f) Meeting the requirements of county ordinances and solid waste management a) Authorizes cities to use eminent plans as required under Minn. Stat. § domain for economic development 115.94. and redevelopment projects that Organized collection is also encouraged in 28 state solid waste policies as a means of contracting decisions or to allow improving the efficiency and coordination of automatic contractual damage claims for solid waste management between local units solid waste haulers that lose competitive of government. There are very specific and bids in organized collection communities. burdensome public procedures laid out in statute defining how such a decision must be Further, the League supports the current publicly vetted and approved and over what state policy that organized collection is a time period that can occur. valuable tool as part of a comprehensive solid waste and recycling management Despite all of these important and valid program and recognizes the need to reasons for using organized collection, protect and preserve the authority of legislation has been discussed in several cities to adopt solid waste service recent sessions that would allow special contracts that protect public safety, the takings claims or contractual damages to be environment and public infrastructure. claimed by the solid waste industry if local governments make decisions that limit the SD-26. Private Well Drilling number of companies that can collect garbage in a community in a manner that Issue: The state has continued to place prevents a company currently operating in requirements on public water supply the community from continuing to do so providers to add drinking water treatment through the implementation of organized and testing, to restrict the volume of water collection. The unspecified and ongoing used, and to increase the cost of water use liability this change would create would through fees and requirements on utility rate have the effect of eliminating organized structures. As a result, many water users are collection as a waste management option. choosing to obtain all or portions of their This change would also create a virtual water from wells they place on their own monopoly situation for any company property. This creates risks to public health awarded a solid waste contract under and safety, can affect the surrounding organized collection. The local unit of environment, can affect city water supplies, government would have to "buy out" a and can leave city water utilities with contractor in the future to change providers, massive losses of customer load and rate even if their services were no longer the revenue. lowest bid. It also creates an incentive for bidders under organized collection to submit Providing clean, safe, cost-efficient drinking high bids, as they would be eligible for water to citizens is an essential service damages if they fail to win without having to provided by 726 active municipal water provide service. Furthermore, this is a systems. The Minnesota Department of precedent that, if applied to other Health (MDH) agrees that cities have the government purchasing and service statutory authority to determine whether contracting decisions, would clearly run private wells are an appropriate use within counter to the public purpose of government their boundaries and that cities must protect providing services at the lowest feasible cost the public water supplies from numerous to taxpayers. private wells in city boundaries. Private wells in a city increase the risk of Response: The League of Minnesota contaminating public water supplies and Cities opposes efforts to apply inverse encourage over use of water. Cities have the condemnation claims to city solid waste 29 authority to regulate and even prohibit changes can, however, be restricted by private wells by local ordinance. policies and requirements imposed by other levels of government. Response: The League of Minnesota Cities supports current law that Sustainable development initiatives can authorizes cities to protect public health cover a wide range of issues, but share the and safety through local controls benefit of lessening the future environmental regulating or prohibiting private wells impacts of communities on the land, air, and being placed within municipal water water in their area. Lakes, streams, rivers, utility service boundaries and would wetlands, wildlife habitat, shoreland areas, oppose any changes to law to remove that and other natural resources can be protected authority. and enhanced in quality through local efforts. Energy efficiency and renewable SD-27. Sustainable Development energy production reduce the energy demands of a community and the Issue: Minnesota cities spend significant environmental impacts of energy time and resources planning for growth, production. By more efficiently using public development, and redevelopment that will infrastructure and minimizing resource best serve the future needs of their residents. consumption, the costs to individuals, Numerous factors are considered as part of business, and government can be reduced. that process, but an area of increasing New and expanded business and job interest involves concepts often categorized opportunities are also generated by the as "sustainable development."Minn. Stat. § "green"products and services needed to 4A.07, subd. 1(b), defines this term, as it implement sustainable development pertains to local government, to mean initiatives. The ideal result of well-planned "development that maintains or enhances sustainability, natural resources economic opportunity and community well- management, and conservation efforts is a being while protecting and restoring the city that is more efficient in the use of its natural environment upon which people and resources and infrastructure, creates fewer economies depend. Sustainable environmental problems for future development meets the needs of the present generations to address, and is a more without compromising the ability of future desirable home for residents and businesses. generations to meet their own needs." Response: The League of Minnesota Cities play a key role in fostering Cities supports federal, state, and sustainable development and other regional efforts to promote sustainable conservation practices due to their role in development where the effectiveness of land use planning and zoning, stormwater the proposed practice is supported by and wastewater management, and local sound science, and as long as those efforts economic development. Local governments do not supersede the authority of local can take a lead on these issues by choosing governments to determine their own to incorporate aspects of sustainable policies regarding land use and related development into their local operations and issues. facilities. They can also develop local policies and regulations that support and Providing technical assistance and guide individual and private sustainability financial incentives, and streamlining efforts. The ability of a city to affect these regulations to encourage local 30 governments and private property owners management, and sustainable business to engage in sustainable development practices and technologies. practices, as well as assisting in education f) Assisting and recognizing local and information efforts for the building governments that take actions to industry and the public, are the best reduce greenhouse gas emissions and means to generate successful results. increase energy efficiency by These programs should focus on providing and identifying technical outcomes, allowing flexibility in how to assistance, financial assistance, and best meet those outcomes in different best practices. locations and situations. The League opposes mandates that limit the authority SD-28. Advanced Energy Building of cities to determine what practices will Standards best meet the needs of their communities. Issue: The State of Minnesota has made a The League supports sustainable strong statutory commitment to the development efforts that meet the above reduction of carbon emissions and criteria,including programs proposed in greenhouse gases. As part of that effort, the following areas: projects funded by the state must meet a set of energy requirements called Sustainable a) Shifting public resources, services, Building 2030, or SB 2030. However, to investments,purchasing power, and meet state energy efficiency goals, procurement toward more improvements in energy performance of economically and environmentally buildings not financed by the state will also sustainable outcomes where those be needed. solutions are cost effective and appropriate. The State Building Code sets the standards b) Using local land-use planning and that must be met in new or substantially zoning to protect and enhance limited retrofitted structures and prohibits local natural resources, and reduce the requirements that differ from that code. The impacts of growth and development current state schedule for the amendment on local infrastructure. and adoption of more stringent building and c) Promoting efficient and renewable energy codes is not adequate to result in the energy sources. state meeting those goals. d) Encouraging sustainable building design, construction, and operation Cities working on improving the energy strategies focused on integrated performance of development within their design, energy efficiency,water communities have identified a clear conservation, stormwater opportunity to establish cost-effective management,waste reduction, energy-efficiency performance standards for pollution prevention,indoor new and substantially reconstructed environmental quality,and the use of commercial, industrial, and institutional low-impact building materials and buildings that can significantly reduce products. carbon dioxide emissions by lowering e) Supporting sustainable economic energy use in those structures. development, such as brownfield clean-up, on-site stormwater The solution that has been proposed, referred to as an advanced energy building 31 standard, creates an optional tier of and private commercial and multifamily additional energy efficiency requirements residential buildings that exceed a certain for buildings in those categories if they square footage as an appendix of the State exceed a designated square footage. Such an Building Code. addendum would be state-developed and cities could choose whether to apply it in These standards should conform to their jurisdictions based on community timelines and performance measures that priorities, opportunity, and readiness. An result in net zero carbon emissions by advanced energy building standard would 2036 or sooner and should be updated allow municipalities to require more energy every three to five years. Cities should be efficient buildings, reducing the energy provided the authority to adopt the burden for building occupants and lowering advanced energy standard by ordinance overall greenhouse gas emissions. Having a at their discretion, making it an official uniform set of standards prevents confusion addendum to the baseline energy code in by developers, designers, planners, and any jurisdiction adopting them. regulators, with people only needing to know if the jurisdiction uses the The League recognizes the benefits of a requirements outlined in existing State consistent state code and supports a Building Code or has adopted the added requirement that a local jurisdiction energy section. adopting the standards in the appendix may not amend them,but may specify the Discussions with developers, architects, minimum size structure to which they engineers, city staff, energy efficiency apply, as long as it is 10,000 or more experts, utility interests, labor, state square feet. agencies, academia, and other stakeholders have examined approaches the state could SD-29. Construction Codes use to create and allow an advanced energy building standard. While several different Issue: The State Building Code (SBC) is the versions could work, it is clear that statewide standard for the construction, Minnesota needs to change its approach in reconstruction, alteration, and repair of the order to meet state energy efficiency goals. buildings and other structures of the type governed by the code. A building code Additionally, utilities across the region have provides many benefits, including extensive requirements and goals related to uniformity of construction standards in the reducing energy consumption and increasing building industry, consistency in code power generation from renewable resources. interpretation and enforcement, and life- For advanced energy building standards to safety guidance. Since 2018, the state will be an effective tool, they will need to be adopt a new version of the SBC every six designed to work in cooperation with those years after a rulemaking process that allows existing programs. for significant public input. The League supports adopting and amending the SBC Response: The legislature should require through the rulemaking process, and the Department of Labor and Industry to opposes legislative changes to the building establish an advanced energy building codes absent unusual or extraordinary standard beyond the base statewide circumstances. commercial code for the construction, reconstruction, and alteration of public 32 While all cities must enforce certain codes— state fully funds code enforcement such as the accessibility code and the activities. bleacher safety code—enforcement of the SBC remains a local option for cities outside The state should collaborate with local of the seven-county metropolitan area with governments, construction industry fewer than 2,500 people that did not adopt representatives, and other stakeholders to the code before Jan. 1, 2008. Requiring review the building and energy codes and enforcement of the SBC by smaller cities in consider modifications to encourage Greater Minnesota is cost-prohibitive for sustainable building design, construction, many cities, and would result in an unfunded and operation. mandated. Specifically: While a single set of coordinated codes helps provide consistency in code a) For purposes of federal conformity, administration and enforcement, the state should adopt the implementation of sustainable building International Energy Conservation design, construction, and operation does not Code as part of the State Building readily integrate with the existing state Code. building and energy code system. As a b) The Legislature should authorize result, many cities are interested in adopting cities to voluntarily adopt a uniform an advanced energy building standard advanced energy building standard beyond the base statewide commercial code with stronger local standards for for the construction, reconstruction, and development and conservation that alteration of public and private commercial will help inform the baseline state buildings. An advanced energy building code development process. standard would allow municipalities to require more energy efficient buildings, SD-30. Building Officials reducing the energy burden for building occupants and lowering overall greenhouse Issue: There is a shortage of certified gas emissions. building officials in Minnesota. This shortage is particularly acute in Greater Response:A statewide-enforced building Minnesota where some cities have trouble code may have benefits, but requiring it finding certified building officials to would result in an unfunded mandate. perform inspections required by state law. Minnesota needs to hire a new generation of Enforcing the State Building Code should certified building officials, and must ensure remain a local option for the that current officials have adequate training municipalities that have not already and opportunity to inspect a wide range of adopted the Code, unless the state fully projects. funds the costs of enforcement and inspection services necessary to enforce a The Department of Labor and Industry statewide building code. If the Legislature (DLI) has authority over state-licensed requires all cities to enforce the State facilities and public buildings. Pursuant to Building Code,local governments must Minn. Stat. § 326B.106, subd. 2, it must have the option to hire or select a building delegate authority to inspect projects on official of their choice and set the these buildings to a municipality if DLI appropriate level of service—even if the determines that the municipality has 33 adequate qualified local building officials to with disabilities equal opportunity to benefit perform plan review or inspection of the from all of their programs, services, and projects. In 2014 the Legislature passed activities. Public entities are not required to legislation requested by the League of take actions that would result in significant Minnesota Cities and agreed to by DLI to financial and administrative burdens, but provide more transparency and clarity to the they must modify policies,practices, and delegation process. DLI, after consulting procedures to avoid discrimination unless local governments and the League, they can demonstrate that doing so would implemented a new delegation procedure as fundamentally alter the nature of the service, required by statute. Although the new program, or activity being provided. delegation process is a significant improvement, it can still be difficult for State and local governments are also local building officials to achieve the required to follow specific standards when experience necessary to be delegated full constructing new facilities and altering inspection authority. existing public buildings, and they must relocate programs or otherwise provide Response:Minnesota's housing and access in inaccessible older buildings. Under construction industries depend on the the ADA,public entities are not necessarily work of local building officials, and cities required to make each existing facility that enforce the State Building Code accessible. However, their programs—when endeavor to provide quality code viewed in their entirety—must be readily administration and enforcement. The accessible to people with disabilities. A State must increase its efforts to train new public entity may achieve program building officials, and must provide accessibility through various methods. For sufficient education to help local officials example, a city may alter existing facilities, efficiently administer and enforce acquire or construct new facilities, relocate a construction regulations to protect the service or program to an accessible facility, health and safety of citizens. These or provide services at other accessible sites. education efforts should include training to assist local building officials gain the One district court judge has taken an requisite experience to qualify for expansive view of disability access delegation of state-licensed facilities and requirements for public recreation facilities. public buildings. The case involved a parent who sued a city due to difficulty viewing soccer and baseball The League urges the state to make games on certain city fields. The court, in surplus revenue from the building permit interpreting the Minnesota Human Rights surcharge available to local governments Act(MHRA), held that any public facility is to help defray the cost of complying with a public service. Since the MHRA requires code official training and education that every public service be accessible to requirements. disabled persons, the court concluded that each and every playing field and other SD-31. Disability Access public facility must be fully accessible. The Requirements court rejected the ADA's limitations on modifications for physical access to older Issue: Title 11 of the Americans with facilities, as well as the ADA's "when Disabilities Act(ADA) of 1990 requires that viewed in its entirety" language for program state and local governments provide people access. The result is a more restrictive state 34 standard for physical access to public nurses, animal control officers, and facilities than required by the ADA and the probation or parole officers. An assault on State Building Code. one of these employees who is engaged in the performance of a duty mandated by law, Response: The League of Minnesota court order, or ordinance, is a gross Cities supports changes to the MHRA misdemeanor if the person knows the that will make state accessibility employee is engaged in the performance of standards compatible with the federal official duties and inflicts demonstrable ADA for public services and facilities. bodily harm. The Legislature should clarify that a facility that is in compliance with Under current law, an assault on a code Accessibility Code provisions of the State enforcement official not enumerated in Building Code meets the physical access Minn. Stat. § 609.223 1, subd. 6, while requirements of the MHRA. State law performing official business can only be should also specify that accessibility charged as fifth degree assault, a requirements apply to public programs misdemeanor, unless it results in substantial and services as a whole, rather than to bodily harm. All code enforcement officials each individual aspect of a public should be afforded the same protections program or service. under Minnesota Statutes, and the legislature should amend the statute to expand the SD-32. Assaults on Code employees covered by the statute. Enforcement Officials Response: The legislature should expand Issue:Many city employees and contractors Minn. Stat. § 609.2231, subd. 6,to include are required to enforce city codes and code enforcement officials. The term code ordinances and state statutes and rules as enforcement official should be defined part of their job duties. Code enforcement broadly to include public employees and can involve denying a building permit, contractors whose jobs require them to ordering a landlord to make repairs to rental enforce all administrative codes, rules, properties, or fining property owners for ordinances, and state laws. failing to abate a nuisance. Because of the nature of their job, code enforcement SD-33. Restrictions on Possession of officials can be subjected to verbal assaults, Firearms threats, and physical violence. Issue: The Minnesota Citizens Personal Minnesota law recognizes the need to Protection Act, also known as "conceal-and- protect certain employees whose jobs make carry,"prohibits guns on most school it more likely that they will be the target of properties but forbids other local units of assaults by escalating assault charges from government from prohibiting loaded fifth to fourth degree for the assaults of firearms on their properties. The peace officers, firefighters, school officials, inconsistencies in the law's treatment of and"public employees with mandated different kinds of properties have caused duties". Minn. Stat. § 609.223 1, subd. 6, confusion about how the law applies to specifically defines "public employees with multi-use facilities, such as municipal ice mandated duties" as agricultural inspectors, arenas used for school-sponsored programs. occupational safety and health inspectors, child protection workers, public health 35 Further, the law gives private property implications for cities. The state needs to owners the right to prohibit guns in their accept financial responsibility for use by establishments, but prohibits landowners cities of the state public safety radio from restricting firearm possession by communications backbone. Cities have tenants and their guests without struggled to pay high expenses to participate distinguishing between residential and in the 800 MHz statewide public safety commercial properties. This creates system. confusion for shopping malls and other retail properties with large common areas that are In previous state budgets, the Legislature not occupied by the tenants but which the turned to revenue sources upon which cities tenants and their customers must cross to depend to cover costs to purchase and access the tenant's space. operate new communications technology and hardware for computer-aided dispatch, Finally, the Citizens Personal Protection Act 911 public safety answering points (PSAPs), does not explicitly state the type of firearm a and interoperable radio communications permit holder may carry, and this has led to equipment and subsystems in order to ambiguity regarding whether the law is finance the build-out of the state backbone limited to the right to carry a pistol-length for the new system. As a result, fees were firearm in public or if it allows for any directed to fund revenue bond debt service firearm, including a military-style assault used to complete the statewide build-out of rifle. the Allied Radio Matrix for Emergency Response (ARMER) and the cost of Response: The League of Minnesota operations of the state public safety radio Cities requests an amendment to the communications backbone. Citizens Personal Protection Act that would allow cities to prohibit firearms in At the federal level, the Federal city-owned buildings, facilities, and parks. Communications Commission (FCC) has The League supports clarifying the Act to ordered reservation of 700 MHz wireless state that a permit holder, under the spectrum for a national interoperable terms of a permit,is allowed to carry a broadband network to meet public safety pistol-length firearm,but not a communications needs. FirstNet was semiautomatic military-style assault established in 2012 as an independent weapon. The League is not seeking a authority within the National repeal of the Citizens Personal Protection Telecommunications and Information Act, nor authority to prohibit legal Administration (NTIA) and is responsible weapons in parking lots or on city streets for constructing a nationwide high-speed and sidewalks. The League also supports public safety wireless broadband network. efforts by commercial property owners to clarify that the prohibition on restricting Response: The League of Minnesota possession by tenants and their guests Cities supports continued and increased applies only to residential rental property. state financing of substantial local costs to participate in ARMER, including the SD-34. Public Safety acquisition and modernization of Communications subscriber equipment, such as portable and mobile radios required for ARMER Issue: The state role in financing public users. The League also opposes efforts to safety communications has important cost divert dedicated ARMER funds to the 36 state's general fund. The Legislature League knows the integration and security should fund regional cooperation and access to criminal and juvenile justice partnerships for effective delivery of 911 information systems has a significant impact service,training and use of ARMER. on municipal police business practices. The League also urges the FCC to Response: The League of Minnesota continue to support availability of Cities supports continued efforts by the wireless spectrum necessary to expand state to integrate and make available channel capacity that allows local public criminal justice information systems. This safety agencies to meet future needs of includes efforts in key areas of funding, cities and other local units of government. data practices, collaborative relationships,balancing privacy and SD-35. Criminal and Juvenile public safety, and addressing aging Justice Information systems. The League also supports the Criminal and Juvenile Justice Issue: Criminal justice information Information Advisory Group, cooperation integration is about getting the right among legislators,law enforcement, information into the hands of the right corrections agents, court officials, people at the right time and in the right place prosecutors, community groups, and to make key decisions throughout the businesses that build public support for criminal justice process. The integration of criminal justice systems. criminal justice information remains complex and multifaceted. It takes time and To ensure compliance with the MGDPA, resources from all levels of government. comprehensive guidelines and operational Public safety is compromised when there is practices should be implemented to a lack of centralized, complete, and accurate safeguard access to and use of criminal criminal history data about individuals, and juvenile justice data. However, data incidents, and cases. practices policies should not create new, unfunded mandates for local units of City officials are aware of the complex government or compromise the usefulness issues raised by the utilization of electronic of criminal and juvenile justice systems record keeping, data sharing, and access to by creating unnecessary barriers. records that identify data subjects. The League of Minnesota Cities recognizes that SD-36. Pawn Shop Regulation and one of the ongoing challenges with the Use of the Automated Property integration of criminal and juvenile justice System (APS) information is meeting the requirements of the Minnesota Government Data Practices Issue:Minn. Stat. ch. 325J enables licensure Act(MGDPA). for pawnbrokers and provides statewide More than 500 cities operate police minimum regulations for the pawn industry. departments. These departments vary Specifically, the law: dramatically in fiscal capacity, staffing resources, and technical expertise. Further, a) Requires pawnbrokers to record all each municipal law enforcement agency has transactions, including details of the item unique operating procedures, strengths, and pawned or sold, information about the needs based on the community it serves. The customer and the cost of the transaction. 37 b) Requires pawnbrokers to maintain total transaction fee is then typically records of all transactions for three assessed by the dealer to the customer. years, and to make records available upon request to law enforcement A bill that would weaken Minn. Stat. ch. agencies. 325J and restrict the use of the APS has c) Allows pawnbrokers to charge a been introduced in the Minnesota maximum monthly interest rate of 3 Legislature. Specifically, the legislation percent of the principal amount loaned in would forbid law enforcement agents from a transaction,plus a reasonable fee for acquiring customer information from pawn storage and services. and secondhand shops until they have probable cause to do so, and would The Automated Property System (APS) is a eliminate the authority of local units of computerized system for tracking and government to more strictly regulate pawn monitoring pawn transactions. The purpose and secondhand dealers. of the APS is to provide a tool to verify compliance with Minn. Stat. ch. 325J, to Response: The League of Minnesota help identify and minimize illegal activity, Cities supports the authority of cities to to recover stolen property, and to provide a regulate and license pawnbrokers, and legitimate environment for consumers. opposes any legislation that would remove Currently, almost 260 law enforcement the authority of local governments to agencies and over 190 stores in Minnesota enact more restrictive regulations than and Wisconsin participate in the APS system currently exist in Minn. Stat. ch. 325J. as either a"query only" or"contributing" The League supports the authority of member. cities to set licensing and transaction fees All access to and use of information in the that enable them to recover their full APS system is governed by the Minnesota regulatory and enforcement expenses. Data Practices Act. Only authorized users have access to the data. There is no public The League supports cooperation access to the data. Further, data that would between law enforcement agencies and reveal the identity of persons who are the pawn industry that enhances the customers of a licensed pawnbroker or ability to identify illegal activity and secondhand goods dealer are private data on recover stolen property.Access to individuals and only used for law transaction information by law enforcement purposes. Data describing the enforcement agencies is vital to property in a regulated transaction with a accomplishing this goal. Further, the licensed pawnbroker or secondhand goods sharing of information through the use of dealer is public. the APS is a proactive way to prevent property and other crimes. Original pawn and secondhand transactions reported to the APS carry a $1 fee, SD-37. City Costs for Enforcing regardless of the number of items involved. State and Local Laws All subsequent updates or corrections to transactions are processed without charge. Issue: Cities experience substantial costs Contributing jurisdictions may also add enforcing state and local laws,particularly regulatory costs to the transaction fee. The those related to traffic, controlled substances, and incarceration of prisoners. 38 The current method in our criminal justice provide to non-residents, they have limited system of recovering costs for law authority to collect on unpaid bills. enforcement and prosecution through fines is insufficient to meet the costs incurred by Cities have also found that auto insurance local governments. Further, when a violator policies vary when it comes to coverage for requests relief from paying the full amount emergency responses. Insurance companies of the fine and surcharge, the courts have of those responsible for accidents sometimes been more inclined to waive the fine than to deny payment for fire service. reduce the surcharge. When this occurs, the local units of government recover no costs Additionally, municipal public safety even though the city has incurred expenses. personnel commonly respond to emergencies that require the provision of Response: The Legislature should review medical services. The medical services this issue and adopt measures that provided by the city-employed first provide for complete reimbursement of responders are part of a continuum of health the costs incurred by local governments in care that is covered by insurance companies enforcing state and local laws. Solutions when provided by paramedics and other that should be considered include: medical care providers; however, insurance policies vary when it comes to coverage for a) Increasing fine amounts. municipally provided medical services. b) Removing or modifying county and Insurance companies of those treated by state surcharges that conflict with cost municipal public safety personnel frequently recovery principles. deny payment for emergency medical c) Requiring the courts to consider services when they are billed by a ordering restitution from the municipality. defendant to reimburse the costs of enforcement and prosecution as part Thus, when a municipal public safety of any sentence. agency provides first response medical d) Requiring that if a court reduces the assistance, they commonly do so at the amount paid by a violator, any expense of local property taxpayers. reduction should be made from the surcharge and not the fine. Response:While emergency medical responses are legitimate functions of SD-38. Compensation and municipal public safety departments,the Reimbursement for Public Safety costs of providing emergency medical Services care to individuals should be covered by insurance and not be borne exclusively by Issue:Municipal public safety personnel the community's taxpayers. Cities should often respond to emergencies involving non- have the authority to bill for the full cost residents. For example, municipal fire, of first responder medical services they police, and/or ambulance services may be provide and to collect on unpaid bills. dispatched to the scene of a traffic accident Insurance companies should be required on an interstate highway involving victims to reimburse local governments for the from other cities or states. Although cities full cost of providing these emergency can bill for some public safety services they medical services. Finally, auto and homeowner's insurance policies should be 39 required to insure for the cost of of government recover no costs even though emergency responses. the city has incurred expenses. SD-39. Administrative Traffic In 2009, the Legislature amended the Citations statutes to allow administrative fines to be issued for certain minor traffic offenses. Issue: Cities have implemented Cities report that the short list of offenses administrative enforcement programs for noted in that law change does not adequately violations of local regulatory ordinances, address the needs of local law enforcement. such as building codes, zoning codes, health Additional authority is necessary to allow codes, and public nuisance ordinances. This law enforcement officers to implement an use of administrative proceedings has kept effective program to reduce violations. enforcement at the local level and reduced pressure on over-burdened district court Response: The League of Minnesota systems. Cities continues to support the use of city administrative fines for local regulatory The Legislature has repeatedly increased the ordinances, such as building codes,zoning fine surcharge on district court cases to codes, health codes,public nuisance generate revenues for the state's general ordinances and regulatory matters that fund. The surcharge—the amount paid over are not duplicative of misdemeanor or and above the fine—is now $75 per citation. higher level state traffic and criminal The growth in the surcharge has offenses. Cities should have the authority dramatically increased the cost of citations to issue administrative citations for low- and has caused some to question whether the level moving and equipment violations total of the fine and surcharge is that: 1)would otherwise result in disproportionate for minor matters. To lower warnings, and 2) occur on roadways the amount imposed on their residents, a where the speed limit is 45 miles per hour number of cities have expanded their or less. administrative programs to include some offenses traditionally heard in district court, If state leaders choose not to expand the such as minor traffic offenses. list of administrative traffic offenses,they should then change the distribution of The increased state surcharges have not been statutory violation fine revenues so that used to assist local units of government with cities are adequately compensated for the growing costs of enforcement and enforcement and prosecution costs. prosecution. No matter which entity—city, county or state—issues a statutory citation, SD-40. Distracted Driving the violator pays between $115 and $127 for a minor speeding violation. Of this amount, Issue:Distracted driving is when a driver the city receives between $13 and $20, and engages in any activity that might take the county receives just slightly more. attention away from the primary task of driving. According to the Minnesota Further, when a violator requests relief from Department of Public Safety, one in four paying the full amount of the fine and motor vehicle crashes is related to distracted surcharge, the courts have been more driving. Distracted driving was a inclined to waive the fine than to reduce the contributing factor in 175 fatal crashes from surcharge. When this occurs, the local units 2011 to 2013 in Minnesota and resulted in 40 191 deaths. More than half of those crashes in a licensed juvenile facility for up to six occurred in rural areas. Those fatalities cost hours. Many municipal jails, including the state more than $269 million. A those in counties where juvenile detention University of Utah study finds that the facilities exist, have been operating under relative risk of being in a traffic accident the six-hour holding law. while using a cell phone is similar to the hazard associated with driving with a blood Managers of municipal jails indicate the alcohol level at the legal limit. reinterpretation of the law is contrary to common practice and presents significant Under existing law, it is illegal for a driver challenges for municipal law enforcement to read, compose, or send text messages and personnel. emails, or access the Internet using a wireless device, while the vehicle is in Response: The League of Minnesota motion or a part of traffic (including while Cities supports a statutory clarification stopped in traffic or at a semaphore). Cell that would allow juveniles to be held for phone use is totally banned for school bus questioning and booking in licensed jail drivers. Cell phone use is also totally banned facilities for up to six hours, regardless of for teen drivers during their permit and whether the county has a juvenile provisional license stages. detention facility. Response: The League of Minnesota SD-42. Justice System Funding Cities opposes any changes to Minnesota Statutes that would weaken distracted Issue: Over the past several years, driving laws. Minnesota's justice system has operated under consecutive budget shortfalls. Public The League supports state funding for service windows are closed part of each distracted driving enforcement and week in many courthouses. Delays in case education and also supports filings, hearings and dispositions are strengthening distracted driving laws. building throughout the state as staff and judges struggle to keep up with caseloads. SD-41. Juveniles in Municipal Jails The budget shortfalls limit the ability of the courts to process cases pertaining to Issue:Municipal jails have long served as shoplifting, trespassing, worthless checks, holding facilities for suspects who are being traffic and ordinance violations,juvenile questioned and/or booked, and for those truancy, runaways and underage drinking, awaiting transfer to a county jail or juvenile consumer credit disputes, property-related detention facility. In 2012, the Minnesota and small civil claims, and many other Department of Corrections (DOC) issued a cases. Timely processing of these cases is reinterpretation of an existing law to say critical to keeping communities safe and to that, "[W]here counties have secure juvenile preserving the quality of life residents correctional facilities...juveniles are not expect. allowed to be held in jail and/or municipal lock-ups for any length of time." The State Court Administrator has advocated for statutory changes that have This interpretation is in conflict with a resulted in efficiencies and cost savings provision in Minn. Stat. § 260B.181, subd. while preserving core services. These 4, which provides that juveniles can be held changes involve consolidating services 41 where practicable and using technology to Many Minnesota communities have reduce costs. They include centralized embraced 21s' Century Policing concepts, payable processing, use of e-citations and and municipal police departments restructuring of state mandated programs. throughout the state have adopted policies that align with 21st Century Policing Response: The League of Minnesota principles. The Legislature and governor Cities supports a statement by former made progress toward advancing 21st Chief Justice Eric J. Magnuson that calls Century Policing principles statewide by for "an adequately funded,functioning enacting the 2020 Police Accountability Act. justice system that resolves disputes promptly in order to ensure the rule of In Minnesota,police chiefs have indicated law,protect public safety and individual strong interest in securing additional training rights and promote a civil society." The in 21st Century Policing practices for League supports the use of technology to officers. Demand for training has increased reduce costs and preserve services. The in recent years, and in 2017 the Legislature League opposes any changes that would responded by increasing continuing decriminalize local ordinances, petty education requirements for officers, misdemeanors or misdemeanor offenses, expanding the scope of this training to or that would make prosecution of these include more community policing, and by crimes more difficult. providing $6 million per year for training reimbursement provided by the Peace SD-43. 21st Century Policing Officer Standards and Training (POST) Board. This funding is not permanent and Issue:Published in May 2015, the sunsets in 2024. President's Task Force on 21st Century Policing Report makes multiple The POST Board is funded through a special recommendations aimed at helping law revenue account from a surcharge on enforcement agencies and communities criminal and traffic convictions. However, a strengthen trust and collaboration, while significant amount of the special revenues reducing crime by implementing the next collected are diverted to the state's general phase of community-focused policing. The fund and are not made available for training report contains recommendations related to reimbursement, and the amount of the six key areas of law enforcement: surcharge paid to the state has been declining. There is also growing concern 1. Building Trust and Legitimacy; about the impact of the surcharge on residents,particularly those of low income 2. Policy and Oversight; and persons of color, and concern about funding policy training based on ticket 3. Technology and Social Media; revenue. 4. Community Policing and Crime Response: The League of Minnesota Reduction; Cities recognizes the need for 5. Training and Education; and communities and law enforcement agencies to strengthen trust and 6. Officer Safety and Wellness. collaboration,while continuing to reduce crime. The League supports the recommendations of the President's Task 42 Force on 21st Century Policing Report as facilities are not required to notify cities well as the training,policy and when they intend to purchase single family accountability provisions contained in the housing for these purposes. Cities do not 2020 Police Accountability Act. To that have authority to regulate the locations of end,the League supports: post-incarceration living facilities. Cities have reasonable concerns about the safety of a) POST Board model policies that align facility residents and neighborhoods, with the recommendations of the particularly in cases of public safety. Cities President's Task Force on 21st also have an interest in preserving a balance Century Policing Report and the 2020 in residential neighborhoods between this Police Accountability Act; type of facilities and other uses. It is in the b) POST Board approved training best interest of providers to inform and work opportunities for new recruits and in- with cities before opening a facility in order service peace officers that include but to educate providers of community are not limited to procedural justice, standards and expectations. bias/implicit bias and cultural awareness, de-escalation, and crisis Response: Cities should have statutory intervention training; authority to require agencies, as well as c) Increased state and federal funding licensed and registered providers,that for peace officer training that includes operate post-incarceration living facilities reimbursement for tuition,travel, to notify the city before properties are time and backfilling the shifts of operated. Cities should be provided with officers who are out for training; the necessary contact information once d) Permanent funding for police training licensed or registered. Providers applying that is not based on criminal and to operate post-incarceration living traffic ticket revenue; facilities should be required to contact the e) State and federal funding for peace city to be informed of applicable local officer safety and wellness initiatives; regulations. The Legislature should also and require establishment of non- f) Authority and grants for municipal concentration standards for post- police departments to deploy incarceration living facilities to prevent technologies such as dash cameras and clustering. Finally,licensing or registering police body worn cameras that authorities must be responsible for enhance both criminal justice and removing any residents incapable of officer accountability. living in such an environment, particularly if they become a danger to SD-44. Post-Incarceration Living themselves or others. Facilities SD-45. Homeland Security Costs Issue: Sufficient funding and oversight is and Liability needed to ensure that residents living in post-incarceration living facilities have Issue: The federal government's response to appropriate care and supervision, and that terrorism has resulted in new responsibilities neighborhoods are not disproportionately for local governments in a number of areas. impacted by high concentrations of these For example, shortly after the terrorist types of facilities. Under current law, attacks on Sept. 11, 2001, the federal operators of certain post-incarceration living government tapped local law enforcement 43 personnel to provide security and perform SD-46. Cybersecurity screening at our nation's airports. These new responsibilities increase cities' liability Issue: Dating back to at least 2012, U.S. exposure and result in higher local costs for Defense Secretaries have warned that the public safety services. In addition, local United States are increasingly vulnerable to governments are expected to continue foreign computer hackers who could emergency planning and capacity building dismantle the nation's power grid, efforts,provide additional training and transportation system, financial networks equipment for first responders, and improve and government. On a state level, the emergency response coordination and original Minnesota broadband task force communication. issued unanimous joint recommendations regarding cybersecurity in their 2009 report. As partners in protecting our country from The more recent iteration of the Broadband terrorism, the federal government must: 1) Task Force also issued a 2016 provide greater direct financial support for recommendation to establish a legislative our first responders; 2) maintain funding for cybersecurity commission to share general pre- and post-disaster emergency information, monitor workforce issues, and management programs; 3) ensure a support and strengthen infrastructure. These coordinated and effective national recommendations to address cybersecurity emergency response system; and 4) address issues in the state have not been issues of cyber security that threaten public implemented, which creates an absence of a safety, services, and infrastructure. secure and safe forum for state and local officials and policymakers to share Response: The League of Minnesota information and assess the necessary tools Cities recommends that when the federal and capabilities needed to protect their government requires or contracts for systems. The problem is serious. The cities' assistance in meeting federal Minnesota Judicial Branch, state agencies, homeland security responsibilities,the cities, and school districts were all affected federal government should fully cover the by cyberattacks in 2017. costs,including the risk of liability arising from these activities. Response: The League of Minnesota Cities supports state action to identify The League supports greater federal and strengthen state and local funding to prepare,train, and equip our capabilities. The League supports the first responders. The League also inclusion of funding to evaluate state supports changes in the federal funding government cyber vulnerabilities, single process to ensure Department of points of failure, and fixes, and,based on Homeland Security funds move quickly to those findings, create an ability for the local level. Furthermore, the League municipal governments to apply for grant supports the allocation of state resources funding or assistance to help conduct the to provide training and technical same evaluation. assistance to local governments related to the prevention and control of cyber SD-47. Legalization of Fireworks security risks to critical infrastructure. Issue:In 2002, the state enacted a law allowing the sale and use of non-aerial, non- explosive consumer fireworks, including 44 sparklers,party poppers, snakes, and other public document and is available only for a novelty itemsrelaxing the ban on fee.) consumer fireworks in place in Minnesota since 1941. In 2008, the Legislature further Fireworks products can cause serious relaxed the ban by increasing the amount of injuries and fire loss. The legal sale of explosive material allowed in legal consumer fireworks undermines fire fireworks. prevention efforts. The sale and use of consumer fireworks increase local public Local fire service professionals have safety enforcement, emergency response, reported that consumers and law and fire-suppression costs. enforcement personnel have had difficulty distinguishing between legal and illegal Response: The League of Minnesota fireworks, and that the 2002 law resulted in Cities opposes legislation that would greater use in Minnesota of illegal fireworks further relax the ban on the sale and use purchased in other states. of consumer fireworks. The League supports a repeal of the 2002 law that According to data provided by the relaxes the ban on the sale and use of Minnesota State Fire Marshal Division, consumer fireworks. injury trends and dollar losses related to fireworks incidents surged after the Fees are needed to cover the costs consumer fireworks ban was lifted. Hospital associated with compliance checks, reports reveal that the annual number of education, and inspections relating to the injuries caused by fireworks rose sale of a regulated product. The current dramatically in 2002 and remains elevated. fee caps do not allow cities to recover Likewise, Minnesota Fire Incident these costs. The League supports allowing Reporting System records show that the cities to establish and impose reasonable annual dollar loss resulting from fireworks fees on retailers that sell fireworks. The incidents increased significantly in 2002 and League opposes restrictions on requiring has since grown. fireworks retailers to purchase additional liability insurance. Finally,the League In 2003, the state enacted a number of seeks repeal of the NFPA reference. provisions limiting local authority pertaining to fireworks sales. The 2003 law caps the SD-48. Traffic Enforcement allowable municipal permit fee at $100 per Cameras vendor selling fireworks with other products, and $350 per vendor selling Issue:Drivers who disobey traffic laws can fireworks exclusively. The law restricts cause serious traffic accidents and contribute cities from requiring fireworks sellers to to gridlock. In spite of the severity of this purchase additional liability insurance. problem, cities cannot always afford the Finally, the 2003 law states that cities cannot levels of peace officer enforcement that prohibit or restrict the display of consumer residents demand. The technology exists to fireworks if the display and structure comply enforce traffic laws with photographic with National Fire Protection Association evidence. For example, there is less running (NFPA) Standard 1124. The NFPA is a of red lights when motions imaging private international association of recording systems (MIRS) are installed at individuals and trade and professional traffic signals. organizations. (NFPA Standard 1124 is not a 45 Response: Local law enforcement agencies Response: State law should support the should have the express authority to use ability of local governments to regulate or photo enforcement technology to enforce proscribe unauthorized use of city right- traffic laws. Local law enforcement of-way for motorized foot scooter officers should have the express authority parking,to require a permit or license to issue citations for traffic violations by authorizing motorized foot scooter mail where the violation is detected with parking or sharing in the public right-of- photographic evidence. way, and to impose terms, conditions, and local rules on businesses seeking such a SD-49. Operation of Motorized permit or license. Foot Scooters SD-50. Drug Courts Issue: Current state statute (Minn. Stat. § 169.225)regulates the operation of Issue: The League of Minnesota Cities motorized foot scooters and treats motorized recognizes the impact of substance abuse on foot scooters similar to bicycles in terms of individuals, communities and taxpayers. rights and duties. By statutory definition According to the National Council on (Minn. Stat. § 169.011, subd. 46), motorized Alcoholism and Drug Dependence,the foot scooters must be powered by an engine relationship between alcohol and drugs and or motor that is limited to a maximum speed crimes--including domestic abuse and of 15 miles per hour. The law provides that violence, underage drinking, robbery, an operator must be 12 years of age or older. assault and sexual assault--is clearly Although the law contains safety provisions, documented. The National Center on including a requirement that operators under Addiction and Substance Abuse reports 65 the age of 18 must wear helmets, it does not percent of the nation's inmates meet certain require training or permits for operators of medical criteria for substance abuse and any age. addiction, but only 11 percent received treatment for their addictions. Motorized foot scooters that are part of organized sharing or rental businesses rely Drug courts are an effective problem- on the ability to park in the public right-of- solving approach for dealing with alcohol way, especially on public sidewalks, to and other drug addicted offenders in the facilitate customer access and vending. judicial system. Drug courts closely Cities have express authority to regulate monitor the defendant's progress toward parking on city streets and sidewalks. Local sobriety and recovery through ongoing government units should also have clear treatment, frequent drug testing, regular authority to regulate or proscribe mandatory check-in court appearances, and unauthorized use of city right-of-way for the use of a range of immediate sanctions motorized foot scooter parking, to require a and incentives to foster behavior change. permit or license for each scooter or sharing company, and to include terms and In drug court,judges collaborate with other conditions dictated by the granting authority. traditional court participants (prosecutors, defense counsel, treatment providers, In order to protect public health, safety and probation officers, law enforcement, welfare, it is important that cities have clear educational and vocational experts, authority to regulate motorized foot scooter community leaders and others), whose roles parking and sharing options. have been substantially modified, but not 46 relinquished, in the interest of helping than in the states immediately surrounding defendants deal with addiction. it. Response: The League of Minnesota Response: The League of Minnesota Cities supports the efforts of drug courts Cities supports strengthening the current to address substance abuse and reduce statutory prohibition on drug crime. The League supports funding for paraphernalia,including improving the additional drug courts. statutory definition of"drug paraphernalia" and explicitly prohibiting SD-51. Drug Paraphernalia sales. Issue: Cities throughout the state struggle SD-52. Regulation of Massage with local businesses selling items primarily Therapists designed to enable illegal drug use. Current state law only prohibits use,possession, Issue: The state does not currently license delivery, and advertisements of drug nor register massage therapists. Minn. Stat. paraphernalia. The law inadequately defines ch. 146A is the Complementary and the term "drug paraphernalia," and leaves Alternative Health Care Practices Act which cities to pass more effective ordinances identifies prohibited provider conduct and "prohibiting or otherwise regulating the authorizes the Minnesota Department of manufacture, delivery,possession, or Health to take disciplinary action against advertisement of drug paraphernalia." noncompliant providers who are not registered or licensed by a health-related Many cities have adopted their own licensing board. The office has authority to ordinances to regulate drug paraphernalia, respond to allegations of prohibited behavior including specifically prohibiting sales. But through an investigatory process but this for a variety of reasons, business owners function is triggered mainly by consumer routinely challenge these ordinances as complaints and there is no requirement that unconstitutional and then successfully the office take any action. Additionally, invoke virulent public outcry on that basis. resources for these purposes have been This experience—along with costly court severely limited. challenges—discourages other cities from taking similar steps to curb illegal drug In absence of any required statewide activity, and leaves most cities only able to standards or regulation, several cities have enforce an inadequate state law. entered the traditional state domain of health-care licensure by enacting ordinances Most states immediately around Minnesota that require all massage therapists to obtain define "drug paraphernalia"in a detailed a local professional license and many cities way based on a 1979 model federal law have also required bricks and mortar designed to avoid constitutional issues. establishments to obtain a business license. Minnesota does not. Federal law and the law These ordinances help local law of half the states immediately around enforcement officers to differentiate Minnesota explicitly ban sales of drug between legitimate providers and businesses paraphernalia, but Minnesota does not. The engaged in sex trafficking and prostitution current state of the law arguably makes drug as well as provide for health and sanitation paraphernalia easier to obtain in Minnesota standards. 47 City staff and law enforcement have spent establishments operating as massage much time and resources conducting therapy facilities. statewide criminal background checks; c) Improves provider compliance with investigating massage therapist accreditation Minn. Stat. ch. 146A and requires the programs to determine legitimacy and state to take action in response to credibility; and inspecting and monitoring noncompliance. establishments due to citizen complaints and d) Protects the public from injury and concerns. This has resulted in different from other conditions that may result procedures, requirements and fee structures in harm. across the state. Despite the thorough work of city staff and law enforcement, when an SD-53. Lawful Gambling and Local illegitimate business suspects investigation, Control it will often close down and re-open in a different city. Without any sort of statewide Issue:As part of the 2009 reforms to lawful database of these businesses, one city's gambling statutes, some local control was solution may become another city's removed from the lawful gambling process. problem. Previously, the lawful gambling licensee would have to obtain the city council's Additionally, local law enforcement approval as part of its application to renew agencies do not have access to national the organization's premises permit(some criminal history data. This has allowed those forms of lawful gambling require obtaining with criminal convictions in other states an organizational license and a premises related to sex trafficking and prostitution to permit(s) from the state). This step was obtain massage therapy business and/or removed when the state established a professional licenses in cities in Minnesota. perpetual organizational license and Allowing access to this information could premises permitting system. Because these help cities prevent sex trafficking across licenses and permits are issued by the state, state lines. under the current system a city's authority over these licensees is limited to: 1) Response: The League of Minnesota approval of the initial premises permit; and Cities supports the statewide registration 2) enforcement of the city's lawful gambling or licensure of massage therapists that ordinance. Some city officials have would not pre-empt the ability of cities to concerns that gambling organizations will be regulate massage therapy establishments. more apt to ignore local regulations (such as The League also supports legislation spending the required percentage of lawful pertaining to the practice of massage gambling expenditures in the city's trade therapy that accomplishes the following: area) if they don't need the city's approval a) Helps cities establish legitimacy of for the renewal of their state-issued premises providers and businesses applying for Permits. a local license to practice,including Response: The licensee should be required allowing local law enforcement to obtain local approval on an annual agencies access to national criminal basis, or at longer intervals as determined history databases. by the city, and file the resolution of local b) Prevents individuals from conducting approval with the Gambling Control criminal activities such as prostitution Board. and sex trafficking out of 48 SD-54. Liquor Liability Insurance may issue on-sale liquor or wine licenses. Limits Several cultural centers have received special legislation that allows their Issue: Minn. Stat. § 340A.409 requires that municipalities to issue on-sale liquor or wine "no retail license may be issued, maintained licenses to them. This practice interferes or renewed unless the applicant with the ability of municipalities to control demonstrates proof of financial the placement and operating manner of these responsibility with regard to liability entities. imposed by Minn. Stat. § 340A.801" relating to the sale of alcoholic beverages. Response: The Legislature should The minimum limits of liability currently in authorize municipalities to issue on-sale statute require $50,000 of coverage because liquor or wine licenses to cultural centers, of bodily injury to any one person in any subject to restrictions imposed by the one occurrence, $100,000 because of bodily municipality. injury to two or more persons in any one Non- occurrence, $10,000 because of injury to or SD-56. Liquor Licensing of Non- destruction of property of others in any one Contiguous Spaces occurrence, $50,000 for loss of means of support of any one person in any one Issue: During the COVID-19 outbreak, occurrence, $100,000 for loss of means of restaurants and bars have been able to open support of two or more persons in any one at limited capacity for in-person service with occurrence, $50,000 for other pecuniary loss spacing requirements between tables both of any one person in any one occurrence, inside and outside. To provide opportunities and $100,000 for other pecuniary loss of two for businesses to open and serve the public, or more persons in any one occurrence. many cities allowed for non-contiguous These limits have not been updated since at spacing of tables outside despite least 1985 and would provide very little requirements outlined in Minn. Stat. § relief to persons impacted by an intoxicated 340A.410, subd 7. This has allowed person. While cities can choose to require customers to go to restaurants and bars and higher limits of liability than required by remain outside,which has been deemed statute, it may create competitive imbalance preferable to dining indoors in mitigating the between communities if the limits are not risk of exposure to the virus. consistent. Response: The increased flexibility has Response: The minimum limits in Minn. allowed businesses and cities to partner in Stat. § 340A.409 should be increased to response to the pandemic and city $500,000 per occurrence with a $500,000 residents have enjoyed increased seating annual aggregate. options. The League of Minnesota Cities supports amending Minn. Stat. § SD-55. On-Sale Liquor or Wine 340A.410 to allow for licensing of spaces Licenses to Cultural Centers that are not compact and contiguous during and after the pandemic. Issue: Cultural centers are not one of the qualifying entities to which municipalities 49 SD-57. Wine and Off-Sale Licenses smokers had their first cigarette before the age of 18; reducing youth tobacco use may Issue:Minn. Stat. ch. 340A authorizes cities help prevent adverse impacts of tobacco in to issue liquor licenses to various the future. To this end, many cities operate establishments within their jurisdictions, but compliance check programs in an effort to in virtually all cases, the license issued by discern the current level of youth access and the city is not valid until the state approves to reduce youth access. Statewide, a number it. This is true for such commonly issued of cities have created community licenses as wine, off-sale intoxicating liquor partnerships with their court systems, local and temporary on-sale intoxicating liquor businesses, and school districts to quickly licenses. The result is extra time spent for address problems associated with youth city staff, as well as a time-based access to alcohol and tobacco. commercial impact to the business pursuing the original license. Response: The League of Minnesota Cities opposes any proposal that could Additionally, if a business applies for an on- result in increased risks of youth access to sale wine license, the state may choose to alcohol and tobacco products and conduct an inspection of the business further supports statutory changes that assist in delaying approval of the license and full reducing youth access to alcohol and operation of the establishment. This tobacco products. The League supports inspection is often in addition to a city locally-determined alcohol compliance certificate of occupancy inspection and a check programs,but any state mandate county health inspection. for alcohol compliance checks should come with state-supported funding Response: The Legislature should remove initiatives to support these locally- the requirement of approval by the determined compliance efforts. The commissioner for city-issued liquor Legislature should consider a grant licenses and simply require cities to notify program supporting locally-based the state of newly issued and renewed community partnerships that can quickly licenses as is already the case for and effectively respond to youth access intoxicating on-sale liquor licenses and all problems. 3.2-liquor licenses. If the state requires an inspection to certify an on-sale wine SD-59. Consumer Small Loans license, this should be delegated to either the city or county to be conducted at the Issue: Consumer small loans, also known as same time as other inspections. This will "payday loans," are short-term cash loans expedite the process for both the state and based on the borrower's personal check held the business. for future deposit or on electronic access to the borrower's bank account. Borrowers SD-58. Youth Access to Alcohol and write a personal check for the amount Tobacco borrowed plus the finance charge and receive cash. In some cases, borrowers sign Issue: To promote public safety and public over electronic access to their bank accounts health, cities have an interest in preventing to receive and repay payday loans. Lenders youth from obtaining alcohol and tobacco. hold the checks until the borrower's next For example, the Minnesota Department of payday when loans and the finance charge Health reports that 80 percent of adult must be paid in one lump sum. 50 Consumer small loans are typically 21 days without approval of the regulatory predatory in nature. According to Debt.org, authority. an organization dedicated to helping consumers understand and overcome debt, In 2015, the Legislature authorized the predatory lenders typically target minorities, Board of Cosmetologist Examiners to adopt the poor, the elderly and the less educated. rules governing the licensure, operation and They also prey on people who need inspection of"Mobile Salons"which are immediate cash for emergencies such as operated in a mobile vehicle or mobile paying medical bills, making a home repair structure for exclusive use to offer personal or car payment. These lenders also target services defined in Minn. Stat. § 155A.23, borrowers that do not qualify for subd. 3. The rules must prohibit mobile conventional loans or lines of credit due to salons from violating reasonable municipal credit problems or unemployment. restrictions on time and place of operation of a mobile salon within its jurisdiction, and Response: The League of Minnesota shall establish penalties, up to and including Cities seeks statewide legislation that revocation of a license, for repeated would protect consumer small loan violations of municipal laws. borrowers against predatory lending practices.Also, cities should have explicit Response:It is appropriate for mobile authority to regulate consumer small loan businesses to be licensed by the state or its conditions including the ability to cap designees in the same manner as non- finance charges and interest rates. mobile business establishments. Such state regulation must not preempt the SD-60. Regulation of Mobile ability of local governments to enact Businesses reasonable time and place restrictions on the operation of mobile businesses within Issue: The transient nature of mobile their jurisdictions. businesses presents unique challenges to traditional city zoning and permitting and SD-61. Regulation of Party Buses may create an unfair competitive advantage and Boats-for-Hire over traditional businesses that pay property taxes and generate income for a city. Cities Issue:A parry bus (also known as a party also make significant investments in the ride, limo bus, limousine bus,parry van, or development of retail districts and luxury bus)is a large motor vehicle usually downtowns and have a strong interest in derived from a conventional (school)bus or maintaining a level playing field for brick coach, but modified and designed to carry 8 and mortar establishments. or more people for recreational purposes. In Minnesota, these vehicles are regulated by Minnesota has seen a sharp increase in the default under Minn. Stat. ch. 221 (the number of food trucks (Mobile Food Units) chapter of law dealing with motor carriers) operating throughout the state. Food trucks and registered by the Minnesota Dept. of are licensed as food and beverage service Transportation's (MnDOT's) Office of establishments by the Minnesota Freight and Commercial Vehicle Department of Health (MDH) or by local Operations. The regulations require jurisdictions pursuant to an MDH delegation operators to carry commercial insurance, agreement. Food trucks are prohibited from have an annual vehicle inspection and be operating in the same location for more than registered with the state. Parry bus drivers 51 are required to hold a current commercial and liability related to illegal activities that driver's license (CDL) issued through the occur in parry buses and on boats-for-hire. Minnesota Dept. of Public Safety's Driver and Vehicle Services Division. Response: The League of Minnesota Cities supports changes to state statutes A boat-for-hire is a watercraft used by that would help reduce criminal activities owners and operators to carry passengers for taking place on party buses and boats- hire. Minn. Stat. § 326B.94 and Minnesota for-hire. Specifically,the League Rules 5225.6000 through 5225.7200 govern supports: the requirements of boat owners and operators carrying passengers for hire on a) Creation of statutory definitions of Minnesota's inland waters. These vessels "party bus" and "boat-for-hire"that must have a permit to carry passengers for contain permissible uses of the hire. They must have an annual safety vehicles; inspection and a dry-dock inspection b) Prohibition on offering or allowing performed by Minnesota Department of "adult entertainment" as defined by Labor and Industry boiler inspection Minn. Stat. § 617.242, "sexual personnel once every three years (or conduct" as defined by Minn. Stat. § annually if the hull is made of wood). The 617.241, or "nudity" as defined by vessels must also be operated by a licensed Minn. Stat. § 617.292, subd. 3, on master and must follow all Minnesota Dept. party buses and boats-for-hire; of Natural Resources' boating and water c) Explicit authority for peace officers to recreation regulations. investigate suspicious activities on party buses and boats-for-hire and to Party buses and boats-for-hire are cite individuals on board who are sometimes chartered for celebrations such as involved in illegal activities; and weddings, proms, bachelor and bachelorette d) Requiring the appropriate authority parties, birthdays and tours. Party buses are to utilize existing authority to impose also popular for round trips to casinos and fines, or to deny, suspend, or revoke sporting events, and personalized drop-offs permits or registration certificates and pick-ups at various bars and nightclubs. held by operators found to have adult Additionally, both party buses and boats-for- entertainment, drug, or underage hire have become popular settings for adult consumption violations. entertainment. SD-62. Environmental Protection Cities have seen a sharp increase in the number of parry buses and boats-for-hire Issue: Cities demonstrate strong stewardship being used as venues for illegal activities for the protection and preservation of the such as underage drinking, drug use and sex environment. Minnesota municipalities have trafficking. The transient nature of party historically been the leading funding source buses and boats-for-hire presents unique for environmental protection and challenges to traditional city zoning, improvements. Municipal efforts include permitting and law enforcement. While state environmental protection through laws regulate requirements for the operation wastewater treatment, wetland restorations, of parry buses and boats-for-hire, the law is stormwater treatment,public utility emission silent on enforcement,penalties, inspection reductions, brownfield cleanup, safe drinking water programs, as well as others. 52 At some point, however, the diminishing or make the state general fund an nonexistent environmental benefit received appropriate source for significant from additional efforts is fiscally portions of state water program funding. irresponsible. The programs are often f) Third-party environmental advocacy improperly designed to meet their stated groups create significant hardships on goals. Additionally, the absence of funding cities by threatening litigation even by the state and federal government has when the best science available may not removed an essential restraining feature in support the groups' positions. program design and implementation. g) Cities are often required to pay the cost Agencies are less accountable to the of removing problem materials from the governments that mandate environmental waste stream, rather than preventing the programs when they do not have to find the problem at the consumer product or money to implement the programs. manufacturing level. Specific problems faced by cities include: Response:Alternative wastewater treatment and cooperative service systems a) New programs or standards are should be prohibited from operating in continually adopted without regard to areas that can reasonably and effectively the existence, attainability or cost of be served by existing municipal systems, existing programs and standards. unless: b) Regulatory bodies fail to consistently use the best science available and the a) The municipal system is proven to be most current and accurate data when substantially less cost-effective and establishing water quality standards. substantially less beneficial to the c) Regulatory bodies impose new permit environment; and requirements without going through b) The operation of these systems will not rulemaking. Instead, the agencies rely on create a stranded public investment in internal documents, program strategies, the existing system. and "best professional judgment of staff' when setting permit criteria. Sufficient state and federal financial d) Regulatory bodies approve permits and assistance should be provided to local programs that compete with traditional governments when complying with state municipal services and encourage urban and federal infrastructure requirements, sprawl. This behavior puts at risk the particularly with regard to wastewater, public investments and growth stormwater, and drinking water facilities. management efforts cities have made when planning for future development. The Minnesota Pollution Control Agency e) Permit fees and other cost-transfer (MPCA) should streamline its permitting elements of federal and state programs and re-issuing processes to allow for do not provide an incentive for effluent standards and permit environmental agency efficiency, policy requirements to be known earlier, prioritization or risk assessment. thereby giving communities more time to Additionally, all residents of the state defend against contested case hearings. contribute to the need for wastewater, drinking water, and stormwater The Legislature should require the treatment and benefit from the resulting MPCA to make its determination improved water quality. These factors regarding permit-required submittals, 53 permit modifications, and the reissuance wastewater treatment systems at the of a permit within a reasonable set time consumer and manufacturing levels, not period, and require the MPCA to make just at the treatment and infrastructure its determinations and reissue the permit maintenance level. Examples include within that reasonable set time frame. requiring accurate labeling as to whether disposable wipes can be safely flushed The state should ensure townships are and creating incentives for private salt required to meet the same environmental applicators to reduce the volume of salt protection and regulatory requirements they apply. as cities. Legislation should be passed that requires SD-63. Impaired Waters state agencies to establish permit Issue:Despite the billions of dollars that requirements only when the criteria they Minnesota municipalities have invested and are using is developed through the rule- continue to invest in wastewater and making process. stormwater management systems, and best management practices to protect,preserve, State agencies need to develop science- and restore the quality of Minnesota's based standards and quantify new surface waters, the quality of some of effluent standards, ensuring that they are Minnesota's surface waters does not meet scientifically and economically federal water quality requirements. The practicable. State and federal agencies federal Clean Water Act requires that further should coordinate and integrate their efforts be made by the state to reduce human monitoring data to assure that all impacts on surface waters that are pertinent data is available and utilized. determined to be impaired due to high pollutant loads of nutrients, bacteria, The state general fund is an appropriate sediment, mercury, and other contaminants. source for state water program funding. Scientific studies of these waters must be Municipal water permit fees should only conducted to determine how much pollution be increased if new revenue is needed they can handle (Total Maximum Daily because of increased costs of processing Loads, or TMDLs). The pollutant load municipal water permits or if the funds reduction requirements will affect would go for specific scientific research, municipal, industrial, and agricultural technical and financial support for cities, practices and operations along any river, or agency staffing needed by cities to stream or lake determined to be impaired. address environmental and public health While the sources of 86 percent of the concerns, not as a means to generate new pollutants affecting Minnesota waters are revenue to cover other budget shortfalls. non-point sources, there will also be new Additionally,the Legislature should costs and requirements for point-source create effective,producer-led reduction, dischargers, like municipal wastewater reuse, and recycling programs to deal treatment facilities. Municipal stormwater with a product's lifecycle impacts from systems will also face increased protective design through end-of-life management requirements and regulation as part of the and should regulate products and state's impaired waters program. compounds that damage water quality, Response: The League of Minnesota sewer collection, stormwater or Cities will work actively with the 54 administration, the Legislature, and other mandates and load reduction stakeholders in the design and requirements; implementation of Minnesota's impaired f) Allow flexibility in achieving pollutant waters program to: load reductions and limitations through offsets or trading of pollutant a) Ensure equitable funding solutions load reduction credits for both point are found, such as the state general and non-point load reduction fund or bonding, that broadly collect requirements within watersheds; revenue to address this statewide g) Recognize and credit the work problem; underway and already completed by b) Support legislative appropriation of local units of government to limit constitutionally dedicated clean water point and non-point source water revenues that will supplement pollutant discharges; traditional sources of funding for h) Recognize the diversity of efforts and these purposes, not be used to cover needs that exists across the state; budget cuts, backfill past program i) Ensure the best science available is reductions, or to otherwise supplant used to accurately determine the normal state spending on water sources of pollutant load in order to programs; maximize positive environmental c) Direct the majority of funds collected outcomes and minimize unnecessary by the state for impaired waters into regulatory and financial burdens for programs that fund municipal cities by correctly accounting for and wastewater and stormwater projects, addressing agricultural and other and for state programs needed for non-point pollutant sources; municipal wastewater and stormwater j) Ensure the state requires that the permitting and technical support, MPCA retain control of the TMDL including the Clean Water Revolving development process and that all Loan Fund, Wastewater scientific research related to TMDLs Infrastructure Fund, TMDL Grants is conducted by the MPCA or Program, Small Community qualified, objective parties pursuant Wastewater Treatment Grant and to state contracting,procurement, and Loan Program, and other state conflict of interest laws; and programs that provide financial k) Clarify state water quality mandates resources for city wastewater so cities know specifically what they treatment facilities, septic tank are required to do and what methods replacement, stormwater management of achieving those outcomes are projects, and other city water quality acceptable to state and federal improvement and protection projects; regulators. d) More adequately cover the current five-year wastewater infrastructure SD-64. Municipal Public Water funding need projection of more than Supplies $1.65 billion; e) Recognize and address the upcoming Issue:Essential residential water supplies costs of stormwater management provided by public water supply systems are infrastructure and operation on classified as the highest priority for the use municipalities from new regulatory of public water under Minn. Stat. 55 §103G.261. Minnesota cities spend supply can sustain,particularly in the case of significant resources meeting their underground aquifers. These issues are very responsibility to providing safe, reliable, complex, however, and causes and effects affordable water to their residents in a are not always easily documented or sustainable manner. That is an essential understood. City water supplies are not the element in assuring a healthy and stable only users of that water, either. Industries, future for public health, the environment, smaller private wells, agricultural and economic development. As a result, operations, irrigation systems, and municipal water suppliers have collected contamination containment and treatment some of the most current and accurate can all be major drains on local water information available on local water supplies. conditions. Hard facts and sound science need to be The state requires extensive planning and used to determine the best courses of action permitting processes for municipal water to assure that safe, reliable, affordable water suppliers to document that their systems are supplies are available to future Minnesotans. drawing water at sustainable levels, that the Those approaches will vary considerably water is safe for human consumption, that depending on local water and soil they have land use controls in place to conditions, the types and sizes of users, and protect public water supplies from the quantity and quality of available water. contamination, that adequate plans exist for They also need to be coordinated between emergency and high demand situations, and the many state entities that play a role in that rate structures meet state statutory water management and regulations so that requirements. Those systems are constantly scarce local resources are not wasted and becoming more technologically, efforts are not counterproductive to other environmentally, and economically efficient. priority environmental and public health City water suppliers have invested many results. billions of dollars to develop their utility systems and infrastructure in a manner that Response: The state should lead the meets those criteria. development of sound scientific information on water supply, aquifer Demand and supply sides of this issue are recharge, and groundwater availability being addressed throughout the state. Cities and quality, making good use of the have established educational programs, existing studies, data, and staff expertise incentives, and local water use restrictions to of municipal water suppliers. further improve water conservation efforts, while appliances and plumbing fixtures are The state should also be working to becoming more efficient in their water use. remove barriers to water re-use, aquifer Furthermore, stormwater is being infiltrated recharge, encouraging cultural changes in into the ground at unprecedented levels as water use practices, applying technology part of municipal stormwater permit for smart water use, exploring impacts requirements and is being redirected for and creative mitigation options at irrigation purposes in some cities. contaminated sites, on ways to incent and enable alternate uses of stormwater, and Despite those efforts,there are places in the ways to make sure that all water users state where monitoring data indicates that play a role in ensuring that water supplies water may be being used faster than the are being managed in a manner that is 56 sustainable for future residents. Those Another way to arrange third-party sales is solutions need to keep in mind that by selling electricity from solar panels or essential residential water use is the other generating equipment sited on a highest preferred use of public water consumer's own property to retail supplies. customers, while maintaining ownership of those panels or equipment. The equipment Finally,in cases where sound owner would charge for electricity it management of water resources will provides, yet rely on the local utility to require substantial modifications in provide reliable service to the customer at public water systems that were previously all other times. While such arrangements determined to be adequate,the state may seem convenient to an unregulated needs to be a partner in developing cost- third-parry, they come at a significant cost to effective solutions and in providing the the utilities and subsequently, to the rate technical and financial resources to make payers of that utility. those changes to prevent communities from being economically uncompetitive. Providing municipal reliable utility services comes with certain unavoidable expenses SD-65. Municipal Electric Utilities such as electric generation,power lines, poles, and substations. These types of fixed Issue: Municipal electric utilities provide costs are on-going and should be equitably essential community services to many shared by the local customers. However, Minnesota cities. The League of Minnesota both current and previously proposed Cities works closely with the Minnesota changes to state law would give third-parry Municipal Utilities Association (MMUA) to providers an advantage subsidized by the identify issues of concern and to support remaining rate payers and/or taxpayer. their legislative and administrative efforts to address them. Response: The legislature should support and maintain the current regulatory How those entities are regulated by the state, compact, and recognize the value of the how their service territory is defined and dependable services provided by amended, how their very limited customer municipal utilities, and the fact that base is protected, and how they are treated municipal utilities are accountable in relation to other types of electric utilities directly to the citizens. Further, the is important to them remaining affordable, legislature should reject giving third- efficient, and effective. party providers any advantage over municipal utilities, as well as any other Currently, the legislative proposals have effort to de-regulate utilities. been made to allow unregulated third-parry electricity sales from generators directly to Additionally, current state practice is for the customer, circumventing long- the Department of Commerce and Public established consumer protections. In some Utility Commission to require payment of cases, municipal utilities would be required quarterly fees on municipal utilities to the to "wheel" energy from third parties across Department of Commerce three quarters their power lines to retail customers in in advance. The state should bill for those violation of the utility's exclusive service fees only for the upcoming quarter. area rights. 57 SD-66. State Support for Municipal appropriate energy efficiency and Energy Policy Goals renewable energy projects for undertaking at the local level. Among Issue: The State of Minnesota has adopted those tools,the state should: an aggressive energy policy focusing on the promotion of energy efficiency and the a) Help ensure that reduced energy use expansion of renewable energy with the goal results in reduced energy costs by of achieving a reduction in carbon addressing problems with generation through reduced use of fossil amortization timing; fuels. Minnesota cities share this goal, as b) Have laws that allow and support demonstrated by over 100 cities voluntarily utility grant and loan programs; participating in the GreenStep Cities program. c) Create a grant program to assist in However, already strained budgets and covering local capital costs to install reserves at the state and local level have solar energy systems on public limited the ability of the state to assist local buildings; units of government in furthering specific d) Use proceeds from the Renewable projects that support the overall state goal. Development Fund to support local In addition, institutional knowledge and government projects; capacity of most cities limits their ability to e) Provide increased flexibility for explore energy efficiency or renewable utilities to work with local energy projects, even projects whose energy government; "payback" could finance project capital f) Support development of a unified costs. electric energy billing and usage structure that is easily imported into a As the role cities are playing in reducing B3 Benchmarking tracking system; energy use and developing renewable energy g) Develop a framework that allows generation expands,how those efforts are Property Assessed Clean Energy affected by electric utility practices also Programs; becomes more important.Utility billing is not h) Play an increased role in providing a consistent between electric utilities,with many network of charging stations to using different rate categories, significantly support a transition to electric complicating B3 benchmarking reporting and vehicles; billing transparency. For projects on which a i) Create a grant and loan program to utility provides capital,the length of time over offset start-up capital expenses for which city projects are amortized can also be projects identified where the savings extended to the point that energy cost savings in energy costs can offset capital are eliminated, even with substantial demand project costs or where projects are reductions. The application of demand and peak demand rates in repayment schedules can needed to meet energy policy goals; also reduce or eliminate energy cost savings. j) Clarify state law so that cities may use public utility franchise agreements to Response: The League of Minnesota advance energy policy goals, and; Cities calls on our legislators and state k) Recognize that state energy agency executive agencies charged with technical expertise needs to be made accomplishing the state's energy policy available to cities at no cost. goals to assist cities, townships and counties with tailored efforts to identify 58 SD-67. Urban Forest Management of preparing for, and responding to, Funding catastrophic urban forest problems. Issue:Urban forests are an essential part of Specifically, direct grants to cities are city infrastructure. Dutch elm disease, oak desperately needed for the identification, wilt disease, drought, storms, and emerald removal, replacement, and treatment of ash borer threaten our investment in trees. trees related to management of EAB. The The costs for control and removal can be state should establish an ongoing grant catastrophic and put pressure on city program with at least$5 million per year budgets. The Minnesota Department of that is usable for those activities. Natural Resources, through its Urban and Community Forestry program, and the SD-68. City Pesticide Application Minnesota Department of Agriculture, Authority through its Shade Tree and Invasive Species program, currently have regulatory authority Issue: Current state law in Minn. Stat. § to direct tree sanitation and control 18B.09 limits city authority to an ordinance programs. Although these programs allow requiring warning signs after pesticide for addressing some tree disease,pest, and application. With many cities working to other problems, funding levels have been increase pollinator-friendly habitat and inadequate to meet the need of cities to build reduce the impact of pesticide usage known capacity for urban tree programs and to be lethal to pollinators, cities are seeking respond to catastrophic problems. Cities further tools to meet those public share the goal of the state's Releaf expectations. With small lot sizes,primarily Program—promoting and funding the non-agricultural property uses, and dense inventory,planning,planting, maintenance, residential concentrations, cities often find and improvement of trees in cities that the broader state pesticide regulations throughout the state. In addition, economic are not adequately protective of pollinators gains for stormwater management, tourism, and are seeking additional state authority to recreation, and other benefits must be address these issues in their communities. protected from tree loss. A lack of timely investment in urban forests costs cities Response: The state legislature should significantly more in the long run. amend Minn. Stat. § 1813.09 to allow cities to opt to restrict the application or use of Further, more and more cities are facing pollinator-lethal pesticides within their immediate costs for the identification, community and require the Minnesota removal, replacement, and treatment of Department of Agriculture to maintain a emerald ash borer(EAB) as it spreads across list of which pesticides include pollinator the state. The state has no program to assist protection boxes in their labeling or cities in covering those expenses. precautionary pollinator or bee warnings in the environmental hazards section of Response: The League of Minnesota their labeling. Cities supports funding from the general fund or other appropriate state funds for SD-69. Election Issues a state matching grant program to assist cities with building capacity for urban Issue: Cities play an important role in forest management and meeting the costs administering state and federal election law and conducting voting activities. 59 Response: To strengthen the effectiveness polling place on Election Day. The of elections administration, the application process should be replaced by Legislature should: having the voter verify their identity on a paper or electronic roster. Currently a) Seek the input of cities,townships, electronic signatures are not allowed by state counties, and school districts on law; having the authority to use electronic proposed changes to voter signatures would make the process more registration, election law, and needed efficient. Streamlining the voter check-in improvements and updates to the procedures would increase efficiency and Statewide Voter Registration System; decrease the time voters spend in line b) Amend the timeline for candidate waiting to cast their absentee ballot. filings in cities without a primary so that the final day of filing is prior to Minn. Stat. § 203B.121, subd. 4 stipulates the August primary date; that at the close of business on the seventh c) Expedite court action to resolve day before Election Day, elections candidate eligibility related to administrators can begin processing residency in errors and omissions absentee ballots received by mail and proceedings; and accepted. At the beginning of the seventh d) Eliminate redundant audio testing of day before Election Day, in-person absentee assistive voting technology and voters can place their ballots directly into a equipment by election judges in tabulator(Minn. Stat. § 203B.081, subd. 3). precinct polling places on Election If a voter who has voted absentee prior to Day. the seventh day before Election Day wishes to "claw back"their ballot and receive a new SD-70. Administering Absentee ballot, they are able to do so through the Balloting seventh day. Once direct balloting begins, a voter should no longer be able to"claw Issue:Eligible voters in Minnesota may back" a ballot. Additionally, opening vote by absentee ballot prior to Election absentee ballots that have been accepted Day. Starting 46 days before the election, a should begin at the beginning of the day on voter can request an application for an the seventh day before Election Day. absentee ballot and if approved, receive and cast an absentee ballot in one visit to For those who vote in-person absentee prior their county or city election offices. Ballots to the seven days before Election Day, there can also be requested, applied for and is confusion and in some cases, frustration received by mail and returned by the voter to that they are not allowed to place their the election office by 3:00 pm on Election ballots directly into a tabulator. To improve Day or by 8:00 pm on Election Day if the voter experience and respond to the delivered by mail or package delivery. voter demand to vote early, this time period Absentee balloting results are not known should be increased from seven to the full 46 until combined with polling place results days before Election Day. Additionally, a when the polls close on Election Day. voter can request to place their ballot in a series of envelopes similar to those returned For those voting absentee in-person, the by mail to be processed after they have left absentee ballot application process is the building. Few, if any, voters request to burdensome and confusing as voters expect place their ballot into envelopes. the same process they encounter in their 60 State law allows alternative sites for b. Amending state statute to allow conducting absentee balloting but requires elections administrators to begin that these sites remain open for the full 46 processing accepted absentee ballots days prior to Election Day. For some when direct balloting begins at the jurisdictions, staffing alternative sites for the beginning of the seventh day before full 46 days is not efficient as these sites Election Day and subsequently, may be underutilized until closer to Election concluding the "claw back"period at Day. Cities should be able to determine the the close of business the day before; length of time most appropriate for c. Increasing the time period that an in- alternative sites to meet the voting demands person absentee voter can place their of their residents. As required by state law, ballot directly into a tabulator from voters would maintain the ability to vote in- seven to 46 days; person absentee during the full 46-day d. Eliminating the option to place an in- period at city halls. person absentee ballot in a series of envelopes instead of a tabulator; Current law allows for in-person absentee e. Allowing alternative in-person voting until 5:00 p.m. on the day before absentee voting sites to be established Election Day. This does not leave adequate for less than the full 46 days currently time for election officials to process required by state law; absentee ballots,prepare supplemental lists f. Establishing an earlier deadline for indicating which voters have already cast ending in-person absentee voting; absentee ballots and deliver the lists to g. Revising absentee ballot regulations to precincts prior to opening of the polls on allow any person 18 and older to Election Day. The current absentee voting witness the absentee process and sign process further requires that additional the envelope as a witness; and supplemental lists of final absentee voters be It. Authorizing cities with health care delivered to the polls after the last mail facilities to schedule election judges to delivery on Election Day and often leads to conduct absentee voting at an earlier administrative challenges and increased date in health care facilities. potential for errors in the process. SD-71. Loss of Felon Voting Rights As more and more voters choose to vote early with absentee balloting, improvements Issue: There is confusion as to when voting must be made to increase efficiency of rights are restored to those convicted of a administering absentee balloting before felony, and notification of restoration is Election Day, reduce the potential for errors, inconsistent or nonexistent. This very often and to improve voter experience. leads to challenges placed on Election Day rosters for those convicted of a felony who Response: The League of Minnesota are not eligible to vote and election judges Cities supports: must then challenge the voter and spend time and resources determining a voter's a. Reviewing the current in-person eligibility. It would be much clearer if the absentee ballot process to determine if loss of voting rights occurred only when a paper, electronic or a combination of person is incarcerated. the two processes would be more efficient and be preferable to voters; Response: The League of Minnesota Cities opposes the loss of voting rights for 61 those convicted of a felony who serve the b) allow the city clerk to only compile entirety of their sentence in the and report write-in votes for specific community and are not incarcerated. If candidates if the total number of incarcerated,the League of Minnesota write-in votes for an office is greater Cities supports the restoration of voting than or equal to the number of votes rights to those convicted of a felony once received by the candidate appearing they have completed their term of on the ballot receiving the fewest incarceration. This will eliminate the number of votes. administrative burden of challenging voters at the polls and determining SD-73. Ranked Choice Voting eligibility from various jurisdictions. This will also eliminate the need for Issue: Current law allows charter cities to investigation by local law enforcement of consider and adopt Ranked Choice Voting those who have unknowingly registered to (RCV) as an alternative voting method in vote or voted before their rights were local elections. State statute does not extend restored. this authority to statutory cities. Additionally, there are no statewide SD-72. Write-in Candidates in City standards for conducting RCV. The lack of Elections consistent guidelines on how to effectively implement a RCV system imposes Issue: For federal, state and county offices, significant challenges for election write-in candidates are totaled together as administrators and voters. one number for write-in votes. If a candidate wants the write-in votes to be individually The Office of the Secretary of State certifies recorded, the candidate must file a written voting systems for cities and counties across request with the Secretary of State no later the state. This process does not include the than seven days before the general or special systems used for RCV elections. This makes Election Day. This provides any declared it difficult for cities to access voting systems write-in candidate the same provisions for approved by the state. tabulation as a candidate whose name is printed on the ballot. Because this Minn. Stat. §§ 204D.11 and 206.90 require requirement does not exist in city elections, the use of one ballot only for a state general city election officials are required to take election unless there is a need for a separate considerable time and resources to count and judicial ballot. To allow cities that have individually record write-in votes cast, many implemented RCV to hold municipal of which are frivolous. elections in conjunction with a state general election, state statute must be amended to Response: The League of Minnesota allow for more than one ballot. Cities supports legislation to: Response: The League of Minnesota a) give cities the option to require that Cities supports: write-in candidates for local elective offices file a formal request with the a) legislation that would give statutory chief election official at least seven cities the same authority given to days before the city election if they charter cities to consider and adopt RCV; wish to have their write-in votes individually recorded; and 62 b) statewide standards for those cities assistive technology. State statute does not that choose to adopt RCV to ensure it allow a voter to complete a ballot is implemented consistently electronically. throughout the state to give voters confidence in the fairness of the As election equipment and assistive alternative process of casting their technology continues to evolve, it is critical ballots and in the outcome of such that local elections administrators have elections; flexibility in purchasing equipment and c) a state certification process for voting technology that will best meet the needs of systems used in tabulating RCV voters within their communities. elections; and d) allowing for the use of more than one Issue: The League of Minnesota Cities ballot should a city with RCV conduct supports the ability of elections a municipal election in conjunction administrators to respond to the needs of with a state general election. voters who may benefit from assistance to ensure the greatest level of participation SD- 74. Voter Assistance by those eligible to vote. This includes: Issue: Increasingly, voters may need a) Allowing the hiring of second language assistance with language translation. interpreters to staff polling places; Currently state statute does not allow for the b) Extending electronic voting to people hiring of language interpreters for the sole with disabilities; and purpose of assisting voters with ballot c) Increasing flexibility for elections language interpretation; they must also be administrators to purchase assistive voting equipment and technology that trained as and serve as election judges. This best meets the needs of voters with limits the availability and access to language disabilities. interpretation for voters. The federal Uniformed and Overseas SD-75. Electronic Rosters Citizens Absentee Voting Act(UOCAVA) Issue: While electronic rosters (or"e-poll provides the legal basis for absentee voting books") may increase efficiency and requirements for U.S. citizens who are decrease cost for some cities, this may not active members of the Uniformed Services, be true for all. As cities explore the use of the Merchant Marine, and the commissioned electronic rosters, data collected from the corps of the Public Health Service and the Office of the Secretary of State and from National Oceanic and Atmospheric jurisdictions that have used the technology, Administration, their eligible family may be helpful in determining next steps members and U.S citizens residing outside and to improve the process. Currently when of the United States. This process allows a a voter verifies their identity at a polling voter to complete a ballot electronically and place via an electronic roster, they sign a then return it via mail. Voters with paper form. State law does not allow voters disabilities may have assistive technology to sign the e-poll book. within their homes that best meets their needs. Allowing them to receive a ballot Response:As the Legislature continues to electronically, similarly to UOCAVA voters, examine the use of electronic rosters, would subsequently allow them to complete cities should retain the option of utilizing their ballot utilizing their own personal 63 this technology but should not be from the appointing authority stating the required to do so. If cities choose to use e- hours during which the student will serve as poll books,the use of electronic signatures a trainee election judge to the principal of should be allowed to increase efficiency. the school at least ten days prior to the To ensure there is a paper copy of the election. This process is not currently signatures, the receipts printed by the extended to college students which has electronic rosters should include a copy of proven to be a barrier for recruiting college the voter's signature. students to serve as election judges. Additionally, teachers and college faculty SD-76. Election Judge Recruitment are also allowed to take time off of work to and Retention serve as an election judge. Issue:Nearly 30,000 Minnesotans serve as Response: To ensure state requirements election judges. The recruitment and are met,party balance is maintained, and retention of election judges is a significant to expand the opportunity of serving as and essential component of administering an election judge to others,the League of elections throughout the State of Minnesota.. Minnesota Cities supports the following changes: State statute requires that precincts with more than 500 registered voters be assigned a) Eliminate the party balance at least four election judges and those with requirement for elections where only fewer than 500 registered voters be assigned nonpartisan offices and/or ballot at least three election judges. Minn. Stat. § questions are on the ballot; 204B.21 requires that at least two election b) Authorize college students to get time judges in each precinct serve with a different off from classes if they have been major political party designation, except for appointed to serve as an election student trainee election judges. The judge; remaining election judges in a precinct can c) Allow for one election judge affiliated serve without an affiliation to a major with any two political parties to political parry and no more than half the perform the four activities that judges in a precinct may belong to the same require party balance specifically major political party. Statute specifically outline in statute and allow the requires election judge party balance to remaining judges to serve as non- perform four polling place activities: partisan; and assisting a voter in curbside voting; opening d) Shorten the deadline for major the ballot box; duplicating ballots; and in political parties to provide lists of conducting an election at a Healthcare persons interested in serving as Facility. Political parry affiliation is also election judges to election officials unnecessary in city special elections when within 30 days following precinct offices on the ballot are nonpartisan. caucuses. Minn. Stat. § 204B.19 allows high school SD-77. Mail Balloting students to be excused from school to serve as a trainee election judge if the student Issue:Minn. Stat. § 204B.45 authorizes all submits a written request signed and non-metropolitan townships and cities with approved by the student's parent or guardian less than 400 registered voters located to be absent from school and a certificate outside of the Minneapolis/St. Paul seven- 64 county metropolitan area to hold elections the statewide registration system at by mail. A city may conduct mail balloting the time of petition verification and for an individual precinct having fewer than have not had a name or address 100 registered voters, subject to the approval change since the most recent voter of the county auditor. registration application was submitted. Staffing and equipment needs can be very b) Ensuring that petitioners have access costly and mail balloting is an efficient way to the petition,public information lists of conducting an election for cities that have used to verify registered voters, and lower numbers of registered voters the examination log available for regardless of location in or outside the metro inspection on request of any registered area. It is not uncommon for the redistricting voter. process to create very small precincts in the c) Revising Minn. Rules 8205 to ensure metro area that are more cost-effectively that formatting requirements are served by a mail balloting process. clear and up to date. Additionally, for special elections that historically have lower turnout, mail SD-79. Presidential Nomination balloting could increase voter participation. Primary Response: The League of Minnesota Issue: In 2016, the legislature passed into Cities supports allowing all cities to law a process for the state of Minnesota to conduct mail balloting. conduct a presidential nomination primary in 2020 for president of the United States. SD-78. Modernizing Charter This will be administered by cities and Amendment Process counties much the same way elections are conducted. Issue: Minn. Stat. § 410.12 outlines the process for amending city charters and one Minn. Stat. § 207A.15 provides a process for of the methods is citizen petition and Minn. local units of government to be reimbursed Rules 8205 provides specific criteria for for expenses incurred from conducting the formatting. City staff then review the primary. The Office of the Secretary of State petition to determine if it is valid and has (OSS)will submit to the Department of met statutory requirements for completion Management and Budget(MMB) an and submission. To ensure that both citizens estimated cost of administering the primary, and city staff fully understand the and MMB will provide funding to the OSS. requirements, clarifying changes should be That funding will then be distributed to local made. units of government as a reimbursement based on expense reporting submitted to the Response: To improve the process for OSS. Because the presidential nomination amending a city charter,the League of primary is a partisan activity administered Minnesota Cities supports: on behalf of political parties, it is critical that local units of government be reimbursed a) Adding clarifying language regarding fully and that no cost be borne by cities. "registered voters". These voters must be eligible voters in the district The last time the state of Minnesota held a for which the petition is being presidential primary was in 1992 and turn- circulated who are in active status on out was very low. There is concern that this 65 could happen in 2020 and would therefore the building, they must re-register to vote be an inefficient use of resources, after moving or their ballot may be rejected. particularly staffing thousands of precincts This is unnecessary given the resident still throughout the state. Conducting the election lives in the same facility. by mail could conserve resources and potentially increase voter participation. The process for health care facility voting is required in precincts that conduct elections Response: The League of Minnesota by mail. This is confusing for residents and Cities supports: facility staff. This requirement should be eliminated in mail-only precincts though a) Ensuring that local units of elections administrators should work to government are fully reimbursed for ensure that any new resident of a facility is all anticipated and unanticipated costs able to register and receive a ballot. of conducting the presidential nomination primary; and Response: It is critical that those living in b) Allowing the presidential nomination health care facilities are able to vote primary to be conducted via mail securely and with minimal complication. balloting. To do so,the League of Minnesota Cities supports amending state law to increase SD-80. Health Care Facility Voting flexibility for cities and health care facilities partnering in administering Issue: Minn. Stat. § 203B.11 outlines the elections. This includes: process for individuals living in health care facilities to vote. Local election a) Extending the time period that officials send teams of election judges to residents of health care facilities are facilities such as nursing homes and able to vote to 46 days before an hospitals during the 20 days before the election which is current state law for election. They distribute ballots to eligible voting absentee; residents of the facility and provide b) Requiring entry into facility for city assistance as needed. Allowing more time elections officials to ensure residents for this process would increase resident are able to vote; ability to register to vote or apply for an c) Eliminating the need to include a absentee ballot and ensure their ballot is specific room or unit number on voter submitted. registration or absentee ballot applications of those living in health There have been instances when facility care facilities; and staff have refused entry to city elections d) Exempting mail-only precincts from officials to provide health care facility also conducting health care facility outreach voting. It is essential that city staff voting while ensuring that new are able to provide this service to ensure that residents are able to register and every eligible resident is able to vote should receive a ballot. they choose to. SD-81. Voters Experiencing Itis not uncommon for residents of health Homelessness care facilities to move to different rooms or units within a building. If their voter Issue: Minnesotans experiencing registration is tied to a specific unit within homelessness are able to register to vote 66 using the location of where they usually sleep as defined in Minn. Stat. § 200.031. This could be an intersection or shelter address. Because the voter does not have a permanent mailing address, the registration is often challenged which then requires a voter to re-register each election. This process also requires a registered voter in the precinct to vouch for that person which can be difficult to find when experiencing homelessness. For those experiencing homelessness, leaving their space and any belongings can potentially mean losing them. This becomes a significant barrier to registering to vote and participating in elections. Response: The League of Minnesota Cities supports the following to improve the process for voters experiencing homelessness to safely and securely vote. a) Allow an eligible voter to designate an address where their official election mail may be sent and have that serve as the address for assigning a precinct and polling location. b) Allow cities to do outreach in areas with concentrated populations of those experiencing homelessness to register people to vote, assist with applications for absentee ballots, and issue and receive ballots in a process similar to Health Care Facility outreach. 67 IMPROVING LOCAL ECONOMIES LE-1. Growth Management and d) Give cities broader authority to Annexation extend their zoning, subdivision, and other land-use controls outside the Issue: Unplanned and uncontrolled growth city's boundaries, regardless of the existence of county or township has a negative environmental, fiscal, and controls, to ensure conformance with governmental impact on cities, counties, and city facilities and services; the state because it increases the cost of e) Clearly define and differentiate providing government services and results in between urban and rural development the loss of natural resource areas and prime and restrict urban growth without agricultural land. municipal services or annexation Response: The League of Minnesota agreements outside city boundaries. Cities believes the existing framework for This should contain a requirement guiding growth and development that counties and joint power districts primarily through local plans and that provide sewer, water, and other controls adopted by local governments services,which have been traditionally should form the basis of a statewide provided by cities,include as a planning policy, and that the state should condition of providing service the not adopt a mandatory comprehensive annexation of properties that are the statewide planning process. Rather, the recipients of such services in cases state should: where annexation is requested by a city that could feasibly be providing a) Provide additional financial and those services; technical assistance to local f) Facilitate the annexation of urban governments for cooperative planning land to cities by amending state and growth management issues, statutes that regulate annexation to particularly where new make it easier for cities to annex comprehensive plans have been developed or developing land within mandated by the Legislature; unincorporated areas; b) Keep comprehensive planning g) Oppose legislation that would timelines on a ten-year cycle due to reinstate the election requirement in the financial and workload impacts contested annexations; these processes place on cities; h) Support legislation to prohibit c) Clearly establish the public purposes detachment of parcels from cities served by existing statewide controls, unless approval of the detachment has such as shore land zoning and been granted by both the affected city wetlands conservation; clarify, and township and the affected county simplify, and streamline these has been notified prior to the city and controls; eliminate duplication in their township acting on the request; administration; and fully defend and i) Oppose legislation that allows orderly hold harmless any local government annexation agreements to be adopted sued for a "taking" as a result of that prohibit annexation by other executing state land-use policies; cities of property not being annexed under the agreement; 68 j) Encourage ideas consistent with the authority to object to the state purchasing long-term goal of allowing urban land for the outdoor recreation system for development only in areas currently these very reasons. Cities do not have that or about to become urban or statutory right. Due to recent statutory suburban in character; and changes (Minn. Stat. § 97A.137, subd. 4) k) Establish stricter criteria on the removing city authority to adopt ordinances amount cities can pay to townships as related to firearm discharge, hunting and part of an orderly annexation trapping activity in wildlife management agreement so that payments to areas within their borders, these purchases townships are limited to should not occur without city consent and reimbursement for lost property tax input. base for no more than a fixed number of years, documented stranded Response: The League of Minnesota assessments, and other items for Cities opposes the state imposing which there is a clear nexus. retroactive development restrictions around existing wildlife management LE-2. Wildlife Management Areas areas. Issue: The Department of Natural Resources When purchasing state wildlife has been pressing for legislative management areas and other requirements creating development conservation and outdoor recreation restrictions on property adjacent to land system land, the state should either purchased by the state for hunting and other purchase sufficient land to provide an conservation purposes. This issue has been internal buffer from surrounding increasingly controversial as urban growth development or purchase development extends into areas previously considered rights to land adjacent to the property if rural and residential property owners are such a buffer is deemed essential to finding themselves adjacent to public preserving the intended uses for the hunting land. With large amounts of new property. This should be required for new revenue going into state land purchase for land purchases and done where feasible game and fish habitat and public access for existing wildlife management areas. purposes because of the passage of the constitutional amendment, these problems Furthermore,Minn. Stat. § 84.944 and § could occur even more frequently. 97A.145 should be amended to include cities in the local government notification The solution being proposed will put local and approval process the state must governments in the position of enforcing follow before purchasing public land. state land use restrictions and would require extensive changes to local plans, controls LE-3. Official State Mapping and ordinances. It would also create large Responsibility numbers of nonconformities on properties within city limits and would make state Issue: For many years, the Minnesota wildlife management areas far less desirable Department of Transportation (MnDOT)has due to impacts on future city development. provided the mapping services to keep survey-level accuracy in place for the state's In rural areas, where this is less of a official maps and records. That information concern, counties and townships have the changes when roads are made or improved, 69 and needs regular adjustment when provider service territory in annexed areas, municipal boundary adjustments are made. even if the REC or other electric utility had The information is then used at all levels of not served them prior to annexation. government to accurately determine property boundaries for transportation aid, Response: The League of Minnesota utility service boundaries, state and local Cities opposes any attempt to remove or funding formulas, election issues, and a alter the eminent domain option available number of other uses. to municipal electric utilities in state law, or to make it financially unfeasible for No state agency, however, has ever been municipal utilities to compensate rural statutorily provided with mapping electric cooperatives or other electric responsibility and MnDOT is not funded for utilities for serving future customers who providing that level of detail in its mapping. reside in annexed areas where that Because MnDOT, as an agency, requires electric utility has not provided service. less specificity in its maps, a change has slowly been integrated to mostly restrict LE-5. Statutory Approval MnDOT mapping to what changes occur in Timelines road ownership and responsibility, leaving many mapping needs unmet for other users Issue: Cities since 1995 have been required of boundary data. to act on written requests relating to zoning, septic systems, the expansion of Response: The League of Minnesota Metropolitan Urban Service Areas (MUSA), Cities supports legislation making a and other land-use applications in named state entity the official provider of accordance with a statutory time period survey-level mapping for the state, generally referred to as the 60-day rule. including maps for municipal boundary Pursuant to Minn. Stat. § 15.99, state and adjustments. The Legislature must local government agencies must approve or provide the necessary appropriations to deny a permit within a statutory timeframe. the entity for providing that service. Failure by the agency to issue a specific denial of the application is deemed an LE-4. Electric Service Extension approval. Issue: Minnesota law preserves the right of Minn. Stat. § 15.99 does not directly address municipal electric utilities to grow with the whether an appeal of a decision triggers an cities they serve. Municipal electric utilities extension or is part of an original zoning may grow either through application to the request that must be handled within the 60- Minnesota Public Utilities Commission or 120-day time period. In a 2004 Minnesota (MPUC) or through condemnation Court of Appeals decision, the court found proceedings. Eliminating authority of that a zoning application is not approved or municipal electric utilities to extend denied for the purposes of Minn. Stat. § services, or making extension of municipal 15.99 until the city has resolved all appeals electric service to annexed property challenging the application. Moreno v. City unreasonably costly, would interfere with of Minneapolis, 676 N.W.2d 1 (Minn. Ct. community development and make it App. 2004). According to the court, an unfeasible for municipal electric utilities to appeal is not a request for a permit, license serve properties located within rural electric or other governmental approval; therefore, it cooperative (REQ or other electric service does not trigger a new 60-day time period. 70 Under this interpretation, a decision Furthermore, as city staff and financial rendered by a zoning board or planning resources are increasingly limited, flexibility commission is not the final approval or in the length of approval timeline denial of an application if the city allows an requirements may be needed at the local appeal to the city council. level. This court decision is problematic for a Response: The Legislature should repeal couple of reasons. Forcing cities to further or amend Minn. Stat. § 15.99. If repeal is condense the process for considering unlikely, amendments should: planning and zoning applications will make it more difficult to gather public input and a) Increase the initial time limit to 90 leave less time for thoughtful deliberation by days or have the language in Minn. zoning boards and planning commissions. It Stat. § 15.99 apply as the default may also provide an incentive for cities to requirement only in cases where extend the original 60-day period in every permitting bodies have not established instance in order to build-in adequate time to an independent approval timeline; consider possible appeals. b) Clarify that approval does not abrogate the need for approvals under The Minnesota Supreme Court recently other applicable federal, state or local issued another 60-day rule decision that held requirements; that an application to the Minneapolis c) Provide appeal rights to adjacent Heritage Preservation Commission for a property owners; certificate of appropriateness was a"written d) Clarify that,if requests are to be request related to zoning," and therefore was decided by a board, commission or subject to the automatic approval provision other agent of a governmental agency, of the 60-day rule. 500, LLC v. City of and the decision of the board, Minneapolis, 837 N.W. 2d 287 (Minn. commission or other agent is adopted 2013). This opinion creates ambiguity and subject to appeal to the governing uncertainty about what permit applications body of the agency,then the agency are subject to the law. may extend the 60-day time limit to resolve the appeal; and Additionally, the statute does not allow for e) More clearly define that the phrase exceptions to the timelines in event of "related to zoning" refers to a extenuating local circumstances. If a state of traditional land use decision such as emergency limits the ability of city staff to rezoning, conditional use permits, and complete the work, it should not result in a variances. de facto approval of applications. f) To address states of emergency, add Clarification is needed about how these the following new language to the instances are fairly handled to ensure a fair statute: (h) The time limits in public process can occur for all interested subdivision 2 and 3 are paused if the and involved parties. governor declares a state of Legislature has clarified some emergency under section 12.3E In While the Le g cases described in these paragraphs, aspects of this law, additional modifications the deadlines in the areas included in are necessary to assist cities in providing the emergency declaration remain accurate and timely responses to applicants paused until ten days after the and to allow adequate time for public input. expiration of the state of emergency, 71 applied to any written application consuming historical research that may not awaiting action that was submitted reveal a clear answer. prior to or during the state of emergency. Response: The Legislature should amend the special assessment statute so that LE-6. Maintenance of Retaining retaining walls needed to facilitate public Walls Adjacent to Public Rights of improvements are treated the same as Way other local improvements. In cases where retaining walls located along public rights Issue: The Minnesota Constitution grants of way or within drainage and utility cities the power to levy and collect easements separate public improvements assessments for local improvements upon from adjacent properties,the Legislature property benefited hereby."Retaining walls should establish a rebuttable presumption are one of the many improvements that a that the need for lateral support was city is authorized to make on behalf of its created by the property owner. citizens, and Minnesota's special assessment LE-7. Development Disputes law, Minn. Stat. ch. 429, authorizes cities to charge special assessments on properties Issue: State law is clear that fees collected that are benefitted by an improvement. under Minn. Stat. ch. 462 are eligible for The Minnesota Court of Appeals held that judicial review in the event of dispute. The the city of Minneapolis had a nondelegable Legislature limited the timeframe during duty of lateral support to a property owner which an aggrieved parry may challenge with a retaining wall abutting a city planning and zoning fees to 60 days after sidewalk. Howell v. City of Minneapolis, approval of an application. However, the 2013 WL 1707759 (April 22, 2013). A law is not clear about what notice subsequent jury found that the city created requirements to the municipality are the need for lateral support when it built the necessary, relative to the timing for a person street and sidewalk adjacent to the property, aggrieved by an ordinance or decision under making the city responsible for the the municipal planning act to seek review. maintenance the retaining wall, despite the Response: The Legislature should amend fact that the property is clearly benefitted by Minn. Stat. § 462.361 to establish a 60- the retaining wall. day time limitation in which an aggrieved The special assessment statute anticipates person may bring an action against the the need for cities to create retaining walls municipality. when making public improvements, and this LE-8. Foreclosure and holding could create significant costs for cities forced to repair and maintain retaining Neighborhood Stabilization walls that benefit a single property. A choice by a developer or previous property owner Issue: Cities dedicate scarce resources to to build a retaining wall to improve the address public safety and maintenance value or usefulness of property may appear challenges associated with foreclosed, to be necessary today, but determining who vacant, and under-maintained homes. Left first created the need for lateral support in unaddressed, these properties destabilize the past can involve costly and time- neighborhoods, depress neighborhood property values, and potentially increase the 72 costs of municipal services. Cities' revenue be able to inspect substandard properties if also continue to decline due to delinquent they are not subject to a lease agreement. In utility payments and property tax payments, some situations,property owners may wish as well as added costs for nuisance to have a renter be the responsible party for abatements. Although the number of those utility bills and utilize contract for deed mortgage foreclosures has stabilized arrangements to have the person living on somewhat since the peak of the recession in the property be the responsible party. The 2008, issues surrounding community property may also not be recorded at the recovery are still ongoing. county for homesteading purposes if the buyer is not aware of the formal change in State and local governments can play an ownership that results from a contract for important role in spurring reinvestment in deed. struggling neighborhoods, but without additional resources to address the variety In recent years,private equity companies and costly impacts of foreclosures and have begun purchasing large numbers of vacant properties, cities cannot maintain or single-family homes to convert to residential increase those activities to meet local needs. rental uses. The impacts of large a number The federal government has provided funds of acquisitions by private equity companies for neighborhood stabilization, but such on cities, housing stock, and the rental and funds are limited in eligible uses and scope, home ownership market are not yet fully and they are only available to a limited understood by local, state, and federal units number of cities. of government. Possible issues that may need further exploration include proposed Contracts for deed have been used to disposition strategies for such a large successfully buy and sell thousands of number of properties and how that may homes around Minnesota. However, some affect the local housing market. property owners use contracts for deed as an alternative to a traditional lease, even though Response: The Legislature should: the purchaser has no intention of buying the home. Some communities have encountered a) Secure increased state and federal a situation where a property owner is buying resources and provide financing tools many homes in a community, then selling to help cover city costs associated with them on contract for deed. This can allow a foreclosed and/or vacant properties, person to essentially act as a landlord while community revitalization strategies, evading a city's rental inspection and rental and community investment,including licensing process, while the buyers lose the revenue sources for programs that traditional legal rights and protections as support foreclosure mitigation, tenants. Many view it as a way to rent the homeownership counseling, and property and may not be aware of it being a expanded homeownership contract for deed. opportunities and are sustainable. b) Allow cities to take actions necessary Numerous problems arise for cities and to protect foreclosed and/or vacant neighborhoods when property owners are homes from damage and to help acting essentially as renters. It is difficult to preserve property values in determine who is responsible for neighborhoods where concentrations maintaining the property or for paying utility of such conditions are present, bills and property taxes, and cities may not 73 including an expedited process to i) Support programs that provide address nuisance properties. resources to cities for rehabilitation or c) Reexamine the Contract for Deed new construction of single-family statutes to determine whether homes, such as the Community additional protections are necessary to Impact Fund and the Community Fix prevent property owners from Up Program currently administered evading responsibilities of a landlord, through MN Housing Finance Agency and provide local jurisdictions (MHFA). resources to allow for education of future buyers and sellers in contract LE-9. Housing Policy for deed arrangements. d) Support local authority for cities to Issue: Cities recognize that stable housing is collect all delinquent taxes, utility essential to the health, safety, and welfare of bills,liens, and assessments on residents. Since the Fair Housing Act of foreclosed,vacant,boarded and/or tax 1968, and more recently with the forfeited properties. recognition that certain barriers to housing e) Improve notification to cities, and disparately impact certain members of our consistency in the information communities, local government has been available to cities,when a property is obligated to promote and reduce barriers to in the foreclosure process and vacated. fair housing and equal opportunity. For f) Support coordinated responses to example, households with housing choice prevent foreclosures, activate and vouchers face many barriers to securing guide private investment and home housing in the private rental market, purchases, and support distressed especially when rental vacancy rates are neighborhoods. low. Currently rental vacancy rates are at a g) Study and monitor the impacts on the historic low in much of the state. As a housing market of single-family home result, many families and individuals may be acquisition by private equity unable to use their housing choice vouchers companies. and thus unable to secure safe, decent and h) Re-enact a program similar to "This affordable housing. Additionally, many Old House" to allow owners of renters and homeowners face challenges qualifying single-family homes or from housing displacement due to rising multi-unit rental properties to defer costs, uninhabitable housing, and eviction the increase in tax capacity from that exacerbates housing instability and repairs or improvements to their homelessness. homestead property as an incentive for cities to maintain housing stock, Despite progress since the Fair Housing Act including,but not limited to re- of 1968, households of color nevertheless occupying and homesteading experience a gap in homeownership rates foreclosed and vacant homes. In order compared with white households and face to provide potential opportunities in barriers to housing due to a history of more communities, the program's age housing policies and lending practices that limit qualifications for a homestead disproportionately benefit white households property should be updated to include (i.e., application of GI bill largely only to properties that are at least 30 years white soldiers returning from war, redlining, old. and restrictive covenants). According to the U.S. Census Bureau and American 74 Community Survey data, the remained stagnant and not kept up with homeownership rate non-Hispanic White increased housing costs resulting in more Americans has held consistently above 71%. and more families experiencing housing cost However, the homeownership rate for Black burden. Rent-burdened households have Americans remains the lowest of all racial higher eviction rates, increased financial groups nationally at 41.8 percent. fragility, and wider use of social safety net Comparatively for Hispanic Americans, the programs, compared with other renters and homeownership rate is around 47% and for homeowners. The rates and severity of rent Asian Americans, it has hovered around burden, especially for households of color, 53%. According to the Minnesota Housing have increased housing instability and Finance Agency analysis of the 2018 U.S. resulted in fewer households transitioning Census Bureau's American Community from renters to homeowners. Survey, Minnesota has one of the highest homeownership rates in the nation, but the Response: The Legislature should: state has the fourth largest disparity in homeownership rates between white/non- a) Support resources and programs that Hispanic households and households of seek to assist communities in their color. efforts to reduce barriers to housing and promote fair housing and equal According to the 2018 U.S. Census Bureau's opportunity and oppose any efforts by American Community Survey, households the federal government to roll back of color are also more likely to experience fair housing policies intended to cost burden (paying more than 30% of their protect people from housing income on housing). In Minnesota, 40% of discrimination. households of color experience cost burden b) Support housing stability for renters as compared to 23% of white households. through policies that mitigate the Project based and voucher based rental impact of or reduce evictions filed. assistance that enable renters to pay no more c) Reduce racial disparities in than 30% of their income on housing are homeownership in Minnesota and critical to reducing cost burden disparities. support policies and encourage Nationally, according to data analysis innovative solutions that address provided by the Urban Institute, only 1 in 5 structural barriers for people of color households who qualify for a Section 8 when it comes to accessing housing voucher receive this critical form of rental including policies that encourage fair assistance. State rental assistance programs lending and provide homebuyer are underfunded and are only intended to education and funding for down serve as last resort efforts to prevent payment assistance to low income homelessness. As a result, low-income households. families often make tradeoffs to reduce d) Support programs that reduce cost housing costs. Families may choose or only burden among renters and support be able to afford living in poor-quality, policies that address barriers for substandard housing or a long distance from people of color when accessing safe, work opportunities to reduce housing costs. healthy and decent affordable rental The imbalance between the demand for housing. affordable housing and the supply of low- cost rentals contributes to increasing housing costs. At the same time, wages have 75 LE-10. Resources for Affordable addressing affordable housing issues in their Housing communities. Issue: Cities, along with local housing Response: The Legislature should: officials, are concerned about the need for a) Support the affordable housing proactive commitment at the state level to aid cities to meet demand for affordable priorities of the Minnesota Housing housing that is sensitive to local conditions, Finance Agency(MHFA),which emerging trends, and changing include making resources and demographics. This includes meeting the methods available to maintain and improve existing affordable homes, needs of lowest-income households as well as an aging population and ensuring a wide including publicly subsidized deeply range of lifecycle housing options that allow affordable, and housing stock that is seniors of all incomes to stay in their aging such as naturally occurring community, addressing racial disparity gaps (unsubsidized) affordable housing. in housing, and responding to emerging b) Provide stable and long term funding, trends, such as the need to preserve federally including but not limited to dedicated subsidized housing and naturally occurring funding sources, for Minnesota Housing and other affordable housing (unsubsidized) affordable housing. The programs,including those that League also recognizes that federal, state and local governments all have a role to play encourage innovation and recognize in meeting affordable housing needs, regional markets,provides flexibility overcoming barriers to housing stability for cities to create partnerships and leverage resources with private and such as high market prices, eviction, and foreclosure, and responding to problems public entities, such as: capital caused by vacant homes and the increase in investment funding for affordable and rental properties that are the result of public housing, funding for supportive services and programs that address foreclosure. homelessness and reduce barriers to A comprehensive report issued in 2018 by stable housing and homeownership, a the then Governor's Task Force on Housing tax credit contribution fund or a state delineated 30 specific recommendations to low-income housing tax credit to help help achieve six goals, including: commit to rebuild the state's partnership with homes as a priority; preserve the homes we local governments in the development have; build more homes; increase home of homeownership, and multi-family stability; link homes and services; and rental assistance and housing support and strengthen homeownership. The renovation programs. Task Force's recommendations were based c) Consider establishing a program to upon input from various statewide address immediate needs throughout stakeholders, local governments and the year to provide a match for new or residents and renters impacted by the lack of existing city-supported affordable affordable housing in this State. These housing projects. This could include recommendations provide an important list matching funds,issued on a timeline of housing goals that should continue to be that is consistent with local budgeting considered as cities work towards processes, for local revenues allocated to a local affordable housing trust fund. 76 d) Substantially increase long-term the tax responsibility for residents and funding for the Economic businesses or increases the tax benefit Development& Challenge Fund to for landlords without including leverage local private and public increased benefits for renters of 4d resources to develop workforce rental units including but not limited to and single-family homes. deeper affordability or property e) Support legislation to provide sales, reinvestment. Support the use, and transaction tax exemptions or implementation of a reporting process reductions for development and for landlords and consider a sunset production of affordable housing and period for any changes made to the use state bond proceeds for land program to evaluate the range of banking and trusts as well as impacts that expanding the program rehabilitation and construction of may have. affordable housing. k) Support funding for infrastructure f) Provide funding and financing tools to grants available to cities to assist with cities to create affordable senior the cost of providing critical housing for our aging population. infrastructure and ensure that g) Provide funding and financing tools to residential sites are shovel ready for cities to create affordable housing and development. prevent foreclosure for veterans. h) Support for funding to reduce the LE-11. Greater Minnesota Housing racial gap in homeownership rates, such as targeted homeownership Issue: Cities in greater Minnesota share capacity building and homebuyer many of the same housing needs as metro assistance. communities. However, not unlike differing i) Support additional funding for the real estate markets within a city, greater housing choice voucher programs or Minnesota communities often have vastly other rental assistance programs and different market conditions for housing that financial,tax, and/or other incentives can necessitate priorities that vary from for rental property owners to metropolitan areas. Greater Minnesota cities participate in these programs. face unique challenges that affect the j) Support the current 4d Low-Income affordability, quality, and availability of Rental Classification under Minn. housing. While local communities in greater Stat. § 273.128 that provides a class Minnesota are focusing on local efforts to rate reduction in property taxes to attract development and encourage growth, qualifying low-income rental assistance is often needed from state and properties. Pass legislation that federal resources to construct and requires a full analysis of the program rehabilitate greater Minnesota housing stock to study the impact of expanding or and that assistance should better modifying the current program to accommodate the varying realities of a understand the financial impact to diverse state and housing markets. residents,who will bear the responsibility of the redistributed Like many metropolitan cities, greater taxes. Oppose any changes to the 4d Minnesota city housing studies often cite Low-Income Rental Classification challenges at many levels of the economic program that substantially increases spectrum that impact local economies and population growth. However, incomes 77 within exclusively rural and rural/town mix become prohibitive for many developers in counties are well below average incomes in greater Minnesota due to prevailing wage exclusively urban counties. The US Bureau requirements. While greater Minnesota of Economic Analysis demonstrates over a cities are looking to gain every advantage 62% earnings gap between entirely rural and and stretch limited local resources for entirely urban counties. With low wages housing, more state assistance should be impacting the availability at all levels of focused to allow rural communities to housing. minimize the financial gap of market rate production. However, one of the most vexing difference in the housing continuum is the lack of Response: The Legislature should: production of market rate housing in rural communities. The lack of market rate a) Appropriate funding to state production has led to aging housing stock in assistance programs serving greater greater Minnesota cities that hinders Minnesota to account for the state economic growth. At least 25% of the imposed prevailing wage housing stock in 34 of greater Minnesota's requirements. 80 counties was built before 1940 and only b) Require a comprehensive analysis of four counties in greater Minnesota have 5% the state's housing assistance or more of their housing stock constructed in programs to better determine the 2010 or later. The aging owner-occupied specific needs of greater Minnesota and rental housing stock have low assessed communities and adjust programs values far below any reasonable cost of new accordingly. construction and thereby translates to an c) Change Tax Increment Financing environment where lenders and developers rules to address specific housing often shy away from new market rate challenges in greater Minnesota, developments because of these valuations or including but not limited to, extending low prevailing rents. the timeframe for pooling redevelopment TIF projects from 5 to The circumstances also mean that the few 10 years to allow more flexibility for affordable housing projects that do make rural communities to amass properties their way to greater Minnesota are often and finance projects while removing notably of higher quality than the average blight and allowing TIF to be used for market rate housing stock if they were lucky workforce or market rate housing enough to produce any. Many of these production in areas of low market rate affordable units rent for 20-37% higher than production to provide parity at a 25- what individuals would otherwise be able to year duration. afford in many greater Minnesota cities if d) Appropriate more state resources and they were buying a median valued home of establish grant and forgivable loan significant age. Though numbers certainly programs that support market rate differ, modest market rate units that have and senior housing development been attempted or in some instances proposals in greater Minnesota advanced in our communities have a per unit communities where production is cost of$140-$150,000 while a tax credit extremely low. project with their added soft cost can often e) Work to address the disconnect reach costs of$225,000 per unit or more. between communities that follow the Project costs for workforce housing can also Statewide Building Code and those 78 areas that do not to ensure a level with very little attic space. There are also playing field while encouraging concerns that the cost of meeting these prudent health and safety measures. energy requirements could result in Furthermore,the building code homeowners being reluctant to sell their should not be used to further houses because of the expense of the disadvantage cities for the investments improvements that would be required to they have made in infrastructure to meet new standards or property owners comply with regulatory and smart passing on the cost of upgrades to tenants. growth principles. Increased exposure to educational LE- 12. Energy Efficiency information, such as increased access to Improvement Requirements for energy audits and more familiarity with and Housing access to programs that finance energy efficiency projects could increase adoption Issue:Rising energy costs have brought of energy efficiency improvements. Electric attention to the poor energy efficiency of utilities provide successful, cost-effective many private residences and multi-family energy efficiency programs, have a customer properties, especially in older housing stock. relationship with homeowners, a regulatory The affordability of housing could be requirement to meet energy demand severely impacted by continued increases in reduction goals through conservation home energy costs. Improvements in the spending, and access to technical expertise energy efficiency of housing would improve that can take into account variations in the affordability of local housing options building age and construction. Cities could, and would help achieve state energy demand however,play a strong role in increasing and greenhouse gas emission reduction public exposure to approved educational goals. The challenge is how best to achieve materials and providing incentives through that result. the use of other local financing support options for property owners, such as grants, Legislative discussions have suggested that loans, a Property Assessed Clean Energy minimum energy efficiency improvements (P.A.C.E.)program, and other financing could be added as point of sale tools. requirements, including energy use Response: The League of Minnesota disclosure and basic renovations such as Cities agrees that there is a need to improved attic insulation levels, window caulking and other air sealing, or improved improve the energy efficiency of residential building stock to reduce light fixtures. energy consumption and improve the While the goals of such a program are affordability and livability of housing. laudable, there are a number of concerns for The state should focus its efforts on how this would actually be accomplished in improving educational programs and on individual cities. Most cities do not, for improving the use of the existing example, have point of sale inspections. statewide Conservation Improvement There will also be cases where the building Program (CIP) and similar programs, could be structurally unable to meet high and provide property owners with attic insulation requirements, such as with technical and financial support for manufactured housing or with older houses weatherization and energy efficiency improvements. Further, the state should 79 work to make residential Property not be excluded by municipal zoning Assessed Clean Energy (P.A.C.E.) ordinance or other land use regulations from programs viable for local governments. the benefits of normal residential surroundings."Minnesota cities support Cities should use their communication inclusion of people with and without tools, such as newsletters,web sites, and disabilities in their communities, but these staff communications to promote these policies are best implemented with minimal efforts and to help link property owners encroachments on municipal zoning to educational materials and program authority and positive working relationships resources. Additionally, cities could be between cities, care providers, and the state. incentivized to adopt strategies to disclose energy usage data for building owners to On one hand, treating persons with identify options for cost-efficient energy disabilities differently generally raises improvements. questionable issues of disparate treatment with the Federal Fair Housing Act. On the LE-13. In-Home Day Care Facilities other hand, without some regulation, cities are powerless to protect individuals with Issue: There are restrictions on the ability of disabilities from a clustering of residential a city to regulate licensed day care facilities. programs within one neighborhood. As the Minn. Stat. § 462.357, subd. 7, states that Department of Justice has stated, while certain licensed residential facilities and day density regulations are generally suspect, "if care facilities must be considered a a neighborhood came to be composed permitted single-family use for zoning largely of group homes, that could adversely purposes. The restriction is designed to affect individuals with disabilities and protect"in-home" daycare facilities, but the would be inconsistent with the objective of law applies even if the facility is not the integrating persons with disabilities into the primary residence of the day care provider. community." (Joint Statement of the This creates a loophole for providers to use a Department of Justice and the Department single-family home as a commercial daycare ofHousing and Urban Development.) facility, which might not otherwise be allowable under a city zoning ordinance. To this end, and in upholding a state and local dispersal requirement, the Eighth Response: The Legislature should amend Circuit Court of Appeals stated that the Minn. Stat. § 462.357, subd. 7,to clarify requirement was designed to ensure that that a licensed day care facility serving 12 people with disabilities "needing residential or fewer persons is considered a treatment will not be forced into enclaves of permitted single-family use only if the treatment facilities that would replicate and license holder owns or rents and resides thus perpetuate the isolation resulting from in the home. institutionalization."Familystyle of St. Paul, Inc. v. St. Paul, 923 F.2d 91, 95 (8th Cir. LE-14. Residential Programs 1991). Issue:Minnesota's deinstitutionalization City authority to regulate the locations of policy seeks to ensure that all people can residential programs is limited by state live in housing that maximizes community statute and the federal Fair Housing Act integration. Minn. Stat. § 462.357, subd. 6a. (FHA), although Minn. Stat. § 245A.11, states that"persons with disabilities should subd. 4,prohibits the Commissioner of 80 Human Services from granting an initial operated. Cities should be provided with license to a residential program of six or the necessary contact information after a fewer people within 1,320 feet of an existing residential program is licensed or residential program in cities of the first registered. Providers applying to operate class. residential programs should be required to contact the city to be informed of In 2015, Minn. Stat. § 245A.11, subd. 4, was applicable local regulations. Finally, amended to clarify that the Commissioner of licensing or registering authorities must Human Services is required to approve be responsible for removing any residents licenses for"community residential settings" incapable of living in such an within 1,320 feet of existing residential environment,particularly if they become programs. A "community residential a danger to themselves or others. setting"is commonly known as adult foster care. While this was the original intent of LE-15. Inclusionary Housing the legislature, statutory terms changed over the years; this amendment was to make Issue:Provisions in current state statute various statutory references consistent. (Minn. Stat. § 462.358, subd. 11) allowing cities to enter into development agreements Sufficient funding and oversight are needed for the inclusion of a portion of the units in to ensure that residents living in residential the development to be affordable for low- or programs have appropriate care and moderate-income families have been a supervision, and that neighborhoods and source of conflict between cities and residents of residential programs are not housing developers. negatively impacted by high concentrations of these types of programs. As it stands now, Cities are concerned builders that view this there is nothing preventing clustering of statute as a restriction on local authority to residential programs in most cities in the adopt policies that promote availability of state. Cities want to be part of the solution, housing affordable to those who are unable and more than anything cities desire to be, to purchase or rent housing at price points and should be,partners in serving the that the market alone provides. policies of deinstitutionalization. Cities have an interest in, and are in the best Response: The Legislature should: position, to preserve a balance in residential neighborhoods between residential programs a) Strengthen and clarify cities' and all other uses. Because Minnesota cities authority to carry out policies that are committed to inclusion of all individuals, offer developers a range of incentives it is in the best interest of the state, care in return for including a designated providers, and those individuals served, that number of affordable units in their all parties include cities as partners before projects. opening a residential program to best plan for community integration. b) Identify strategies to ensure long-term affordability of rental and owner- Response: Cities should maintain the occupied housing produced as a result statutory authority to require agencies, as of such policies and practices. well as licensed and registered providers c) Focus state housing policy to support that operate residential programs,to for local assessment of housing needs notify the city before properties are and direct additional state resources 81 and the full exercise of local authority LE-17. Telecommunications and to increase development of affordable Information Technology rental units and access to entry-level, owner-occupied housing. Issue: Telecommunications and information d) Support voluntary measures to technology is essential public infrastructure encourage cities to adopt and carry for the efficient, equitable, and affordable out land-use plans, activities, and delivery of local government services to subdivision regulations aimed at residents and businesses. providing for construction and Telecommunications includes voice, video, marketing of housing where a portion data, and services delivered over cable, of all new units are affordable to telephone, fiber-optic, wireless, and all other lower-income households. platforms. LE-16. Community Land Trusts Response: The League of Minnesota Cities supports a balanced approach to Issue: The increasing price of land available telecommunications policy that allows for housing development, particularly for new technologies to flourish while retaining affordability of housing for lower- preserving local regulatory authority. income households, is a concern throughout Regulations and oversight of the state. Creating more permanently telecommunications services are affordable, owner-occupied housing depends important prerogatives for local heavily on maximizing the cost- government to advance and balance effectiveness of taxpayer investments. The community interests,including ensuring Legislature has previously appropriated public safety, ensuring equitable access, funding and granted the Minnesota Housing maintaining high quality basic services Finance Agency authority to assist cities that meet local needs, spurring economic with funding community land trusts (CLTs) development, and providing affordable for affordable housing. rates to all consumers. Policies should strengthen and not diminish local Response: The Legislature should support authority to manage public rights-of-way continuation of the land trust capacity- including public and private building program and provide capital infrastructure, to zone, to collect start-up funds so community land trusts reimbursement of costs and reasonable can continue to offer gap financing, compensation for the use of public assets, interest rate write-downs, or to work cooperatively with the private predevelopment financing, and financial sector. The League opposes the adoption underwriting. The Legislature should also of state and federal policies that restrict support efforts by the Minnesota cities' ability to finance, construct, and Community Land Trust Coalition to operate telecommunications networks. develop property tax valuation to lower property taxes for sales-price-restricted LE-18. Broadband properties enrolled in CLT programs. Issue:High-speed Internet is essential infrastructure needed by cities to compete in a global economy. Yet many communities do not have access to broadband at 82 affordable prices. High fixed costs, low Response: To promote economic density, and short-term return-on-investment development and achieve state broadband thresholds for private sector providers goals,the Legislature, Governor's office, contribute to the lack of broadband across and state agencies should: the state. Investing in universal broadband access has substantial local and regional a) Identify and implement actions for the economic benefits for communities of all state to reach and maintain a position sizes. Cities and other local units of in the top five states for broadband government are facilitating the deployment speed that is universally accessible to of broadband services to increase residents and businesses; connectivity, reliability, availability, and b) Make significant investments to the affordability for residents and businesses Border-to-Border Broadband Grant through a variety of models, including Program and continue to encourage municipal broadband and public-private public/private sector collaboration partnerships. However, attempts have been including options that use technologies made to restrict cities from providing such as wireless that are scalable to telecommunications services,particularly in meet statutory speed goals and are unserved or underserved areas. Recent court consistent with LE-19 to cost- cases have overturned interpretation by the effectively expand broadband service Federal Communications Commission access; (FCC)that states may not limit the extension c) Support measures to authorize and of municipal broadband services from one encourage cities and other local units city to another. of government to play a direct role in providing broadband infrastructure Due to the high costs of broadband and/or services; infrastructure, the state has expanded its role d) Remove barriers to the exercise of to identify and formulate tools to expand local authority to provide such broadband access. The Office of Broadband services,including repeal of Minn. Development within the Department of Stat. § 237.19,that requires a Employment and Economic Development supermajority voter approval for the (DEED) created in 2013 formally provision of local phone service by a established a partnership between the state local unit of government; and local communities to deploy high-speed e) Offer incentives to private sector Internet in unserved and underserved areas. service providers to respond to local The Office supports broadband expansion or regional needs and to collaborate through broadband mapping and managing with cities and other public entities to the state's broadband grant program. deploy broadband infrastructure Additional state action occurred during the capable of delivering sufficient 2016 legislative session when the legislature bandwidth and capacity to meet reestablished state speed and adoption goals immediate and future local needs; under Minn. Stat. § 237.012. In addition to f) Adopt policies which seek to position the state's focus on extending broadband to Minnesota as a state of choice for unserved areas, Minnesota must also be on testing next-generation broadband the cutting edge for next-generation technologies; broadband investments. g) Affirm that cities have the authority to partner with private entities to finance 83 broadband infrastructure using city their borders to serve unserved and bonding authority; underserved areas. h) Remove barriers, restrict anti- competitive practices, and prevent LE-19. Competitive Cable predatory action that prevent or Franchising Authority impede cities, municipal utilities, schools,libraries, and other public Issue: Despite claims made by some in the sector entities from collaborating and cable industry, studies and evidence to date deploying broadband infrastructure do not support that state franchising is the and services at the local and regional solution for competition, lower consumer level; rates, and improved customer service. i) Continuously update and verify Unlike the exercise of local franchising comprehensive statewide street-level authority, state franchising models mapping of broadband services to frequently make no provision for staffing at identify underserved areas and the state level or for effective resolution of connectivity issues. Discuss how well consumer complaints. the FCC and state broadband maps document actual broadband coverage Cable service provided by a cable across Minnesota including wireless communications system that uses options. These maps are used by infrastructure located in the public right-of- funders to determine grant program way to transmit video signals remains eligibility so that overstatement of subject to local franchising authority. available services is highly Maintaining local franchising most consequential and negatively impacts effectively creates and preserves agreements rural places; and that guarantee broad access to services j) Recognize the crucial role of local throughout the community, ensuring there is government in the work of the no digital divide for access to available Governor's Broadband Task Force additional services such as access to IP and f Fund the Office of Broadband voice and high-speed Internet via Development(OBD) through the base infrastructure that also delivers video budget at levels sufficient for it to programming services. meet its statutory mandates. k) Support the creation of an OBD Response: State policy should maintain operating fund to advance and local cable franchise authority and promote programs and projects that oversight of the public rights-of-way, as improve broadband adoption, achieve well as ensure franchise agreements significantly higher broadband reflect new technology, and are speeds, and support efforts to improve reasonably tailored to the technical and digital inclusion by ensuring that operational differences among providers robust and affordable internet and communities. Independent studies connectivity is widely available all clearly demonstrate that statewide Minnesotans. franchising does not increase direct competition to incumbent cable On the federal level,the League urges franchisees. Congress to adopt laws restoring the ability of municipalities to extend beyond The Legislature, Federal Communications Commission (FCC), and 84 Congress should also continue to e) Strengthening local authority to recognize, support and maintain the enforce customer service standards exercise of local franchising authority to and transparency in pricing. encourage increased competition between incumbent cable system operators and LE-20. Public Right-of-Way new wireline competitive video service Management providers including: Issue: Cities hold local rights-of-way in a) Maintaining provisions in Minn. Stat. trust for the public as an increasingly scarce ch. 238 that establish and uphold local and valuable asset. As demand increases for franchising authority,including the use of public rights-of-way (PROW), cities authority to receive a franchise fee must coordinate the use of this resource based on gross revenues irrespective among competing uses and to manage the of any in-kind contributions; use of the PROW for delivery of essential b) Refraining from adopting any FCC municipal utility services. Cities continue to rule changes that would further experience increased demand for space in restrict existing local authority to the PROW including the siting of charge for and control access to public underground wired and overhead wireless rights-of-way by all video and cable facilities and sites for wireless service providers; communications. Additionally, technology c) Maintaining local authority to charge located in the public right-of-way will fees on providers to ensure the continue to support the increase of new provision of public, educational, and modes of mobility and delivery methods governmental (PEG) programming, including Connected Autonomous Vehicles to require the provision of video (CAV)that may also operate in the public channels and video streaming for PEG right-of-way. While local management programming with video and audio responsibilities vary and are site specific, the quality/channel location equivalent to increased demand for utilizing space in the that of the local broadcast stations, public right-of way underscores the and ensuring programming is necessity for maintaining local authority. accessible and searchable by all residents of the local authority Minnesota's Telecommunications Right-of- through detailed Electronic Way User Law was amended during the Programming Guide listings that are 2017 Session with legislation creating a equivalent to that of local broadcast separate permitting system for placement of stations; small wireless facilities on city-owned d) Ensuring continued cost-effective local structures in the public right-of-way. The government access to capacity on change in law clarified that wireless institutional networks (I-Nets) providers are telecommunications right-of- provided by local cable system way users and maintained cities' right-of- operators for public safety way management authority, but limitations communications,libraries, schools, were imposed on cities' compensation and other public institutions to use through rent and timelines for processing state-of-the-art network applications; small wireless facilities permits. and Response: Minn. Stat. §§ 237.162-.163 worked well for many years,but 85 Minnesota was a part of a nationwide determine any revised standards if effort by wireless providers to pass laws needed; providing them with easier access to f) Recognize that as rights-of-way public rights-of-way and city-owned become more crowded, the costs of infrastructure.While Minnesota's law disrupting critical infrastructure maintains more local control than those become evident and the exercise of passed in many other states, the League of local authority to manage competing Minnesota Cities opposes efforts to demands and ensure public safety in further restrict local government the PROWS becomes increasingly authority over the public right-of-way. important; Furthermore,the Federal g) Ensure the removal of abandoned Communications Commission is equipment and accompanying support undergoing review of structures by the service providers Telecommunications Act rules and from the public right-of-way; policies related to local government h) Maintain the courts as the primary regulatory authority. State and federal forum for resolving disputes over the policymakers and regulators should: exercise of such authority; and i) Maintain existing local authority to a) Uphold local authority to manage and review and approve or deny plans for protect public rights-of-way,including installation or relocation of additional reasonable zoning and subdivision wires or cables on in-place utility regulation, reasonable regulations of poles. In the alternative, cities should structures in the public right-of-way, have broader authority to require the and the exercise of local police underground placement of new and/or powers; existing services at the cost of the b) Recognize that cities have a utility or telecommunications paramount role in developing, provider. locating, siting, and enforcing utility j) Support the collaboration with local construction and safety standards; units of government as the state c) Support local authority to require explores efforts to expand reimbursement and compensation infrastructure in the public right-of- from service providers for managing way to provide for increased use of public rights-of-way; connectivity for Connected d) Maintain city authority to franchise Autonomous Vehicles (CAV). gas, electric, open video systems and cable services, and expand city ability LE-21. Wireless Infrastructure and to collect compensation for other Equipment Siting services utilizing the PROW including but not limited to telecommunications Issue: Demand for wireless communication and broadband services, and all other service has increased requests by private and wireline programming platforms and public sector providers to site additional services to support maintenance and towers, antennas, small cells and other management of the traveled portion of facilities in cities. It is anticipated that the PROW and other public services applications to install small cell wireless of importance to communities; facilities and distributed antenna systems e) Encourage a collaborative process (DAS)will continue to grow as technology with stakeholders,including cities,to 86 evolves over time. Despite changes made to LE-23. Local Appropriations to Minn. Stat. § 237.163 that created a special Economic Development process for the siting of small wireless Organizations facilities, maintaining cities' local zoning authority and police power to manage and Issue: Cities and towns are allowed to coordinate the siting of these facilities appropriate up to $50,000 per year from continue is necessary and appropriate. general fund revenue to an incorporated development society or organization for Response: Cities must continue to exercise "promoting, advertising, improving, or full authority to consider public health, developing the economic and agricultural safety, and welfare concerns in responding to requests to site, upgrade or resources„ of the city or town. The $50,000 cap has been in place since 1989 and places alter wireless facilities. The Legislature, , unnecessary restrictions on a city's ability to Federal Communications Commission (FCC), and Congress should not place work with non-profit development further restrictions on city authority to corporations. Local governments should have the flexibility to work with outside manage the siting of wireless facilities in the public right-of--way nor enact organizations if local elected officials believe itis in the best interest of their compensation restrictions that would rcommunities to do so. Such appropriations result in local government subsidization oare subject to the same budgetary oversight f wireless providers. Furthermore, cities must have recourse to require removal by as other government expenditures, and local the provider of equipment deemed elected officials are ultimately responsible to abandoned. the voters for how local tax dollars are spent. LE-22. County Economic Response: The Legislature should amend Development Authorities Minn. Stat. § 469.191 to eliminate or increase the cap on appropriations to Issue: The 2005 Legislature authorized all incorporated development societies or counties outside the metropolitan area to organizations. establish county economic development authorities (EDAs). Minn. Stat. § 469.1082 LE-24. Workforce Readiness provides specificity on certain process and limitations issues, including the ability of Issue:It is critical for the future of our cities to prohibit the county EDA from economy to prepare for new demographic operating within the city as well as within an trends. While population rates among agreed-upon urban service area or within a communities of color are projected to distance approved during the formation of increase, the unemployment rate for the county EDA. County EDA activity in communities of color exceed the areas surrounding cities will directly impact unemployment rate for white Minnesotans. the adjacent city in terms of service For example, data from the Bureau of Labor provision and taxes. Statistics (BLS) indicate that black unemployment rates are consistently two to Response: The Legislature should require three times higher than the unemployment city approval for proposed county EDA rates of white Minnesotans and studies activities within two miles of a city. indicate that hiring bias is a substantial 87 factor for this disparity in unemployment d) Continue to support cities that rates. In addition, while early work provide workforce programs that are experience is a leading predictor of future coordinated with and complement success in a workplace, recent statistics from state and regional efforts by seeking BLS show that the youth unemployment rate municipal approval before making for 16-19 year olds is three times that of the any changes to those service areas. unemployment rate for the state as a whole. LE-25. Business Development Incumbent worker training and education programs must be an important component of Minnesota's efforts to improve workforce Issue: Programs such as the Minnesota readiness. By making firms and employees Investment Fund (MIF), the Job Creation more competitive, incumbent worker Fund(JCF), the Redevelopment Program, training can increase wages, increase and contaminated site clean-up grants employment opportunities, fill skilled provide funding opportunities for worker gaps, and keep jobs and employers communities and businesses to develop their in their communities. The Minnesota Job local and regional economies. These well- Skills Partnership is one proven tool that utilized programs create infrastructure, provides training to thousands of incumbent revitalize property, and help businesses workers each year. generate and expand jobs. Cities are key facilitators in the implementation of Response: The Legislature should: economic development strategies through a) Fully fund the Minnesota Job Skills land use and other policies. Partnership and other workforce Response: The League of Minnesota training programs administered by Cities supports continued and sustainable the Department of Employment and funding for the Minnesota Investment Economic Development,the Fund and the Job Creation Fund to assist Department of Human Services, and local communities and businesses in the various education agencies; creating, growing, and retaining jobs. b) Provide additional flexible funding to local workforce councils,including DEED should solicit input from cities governments and educational about how best to implement the Fund, facilities, for the purpose of upgrading and make adjustments to the the skills and productivity of the administration of the program as workforce, and pursue additional necessary. The League supports creative programming and funding to Department of Employment and prepare and place underemployed Economic Development(DEED) studying and unemployed Minnesotans, as well and making recommendations on as address the issue of those phasing methods to improve the geographic out of the workplace and retiring; balance of recipients,by allowing the use c) Provide additional funding for of additional evaluation criteria beyond programs specifically designed to the current job creation goal such as address youth employment such as providing higher-wage jobs or achieving career and workforce readiness racial equity policy goals. that would programs, and employment allow all regions of the state to better disparities; and prosper. 88 LE-26. Remediation and equitably between greater Minnesota and Redevelopment the metro area. The Legislature should continue its support and increase funding Issue: Communities across Minnesota are levels for state and regional programs to faced with expensive barriers to re-using assist in contamination cleanup and property. These roadblocks include brownfields remediation efforts. deteriorating, obsolete, and vacant structures, and contaminated land. The State should recognize that the rehabilitation of land due to obsolescence Larger scale redevelopment projects often or incompatible land uses is a component require the purchase and assembly of of redevelopment. The Legislature should multiple, smaller parcels of land that are not amend the definition of redevelopment suitable for development on their own. district in Minn. Stat. 469.174, subd. 10, Cities and development authorities may to include the obsolescence and need to purchase land over a period of years incompatible land uses included in a and hold them for later development, renewal and renovation district(Minn. reducing the effectiveness of traditional Stat. § 469.174, subd. 10a),thereby financing tools that require immediate providing cities with more flexible tools to development. address land remediation and redevelopment. Such barriers pose significant problems for cities seeking to re-use existing The Legislature should also revive a infrastructure, maintain and improve program similar to "This Old Shop" property tax base, provide jobs and housing (Minn. Stat. § 273.11, subd. 19),which opportunities, and preserve historic would allow cities greater flexibility in structures. Land remediation activities are targeting commercial development and particularly costly because significant redevelopment. The Legislature should remediation must occur before private-sector consider enacting authority that would interest can be generated. Exacerbating this provide a tax deferral on improvements situation, the land remediation programs to commercial buildings,including those administered by the Department of located in designated rehabilitation or Employment and Economic Development historic preservation districts. The (DEED) and the Metropolitan Council program's age limit qualifications under programs continue to be underfunded. Minn. Stat 273.11, subd. 19, should be modified to include properties that are at Response: In recognition of the unique least 30 years old. needs of land remediation projects statewide,the Legislature should increase LE-27. Development Authority funding for the statewide redevelopment Levy Limits account. The League of Minnesota Cities would also support the creation of a land Issue:Under Minn. Stat. § 469.107, § assembly grant or loan program to assist 469.033, and § 469.053, Economic cities and economic development Development Authorities (EDAs), Housing authorities assemble small parcels for and Redevelopment Authorities (HRAs) and redevelopment. The League supports port authority levies for economic competitive programs administered by development activities are capped. These DEED with that distribute the funds 89 limits can hinder the planning of future a) Amend Minn. Stat. § 469.1763, subd. development. 4,to clarify that tax increment pooling limitations are calculated on a Response: The Legislature should cumulative basis. increase or repeal levy limits or increase b) Modify Minn. Stat. 469.174, subd. 10, the levying authority for EDA,HRA, and to allow a redevelopment district to be port authority activities in Minn. Stat. ch. established where only 50 percent of 469. the buildings are required to be structurally substandard to a degree LE-28. Tax Increment Financing requiring substantial renovation or (TIF) clearance. c) Clarify that expenditures for the Issue: TIF is the most important tool necessary maintenance of properties available to fund community development within TIF districts are an allowable and redevelopment efforts. Over time, the use of tax increment under Minn. Stat. TIF law has become increasingly complex § 469.176, subd. 4; as the Legislature seeks to provide cities d) Allow term extensions for with the resources to grow the state's redevelopment districts which are economy while maintaining limits on the use taking longer to develop; of property taxes. Cities need greater e) Amend Minn. Stat. § 469.1763, subd. flexibility to use TIF for community and 3, to eliminate the "Five-year Rule" economic development that support a city's for districts that are taking longer to residents and businesses. Further develop; restrictions of TIF would render the tool less f) Amend Minn. Stat. § 469.174, subd. effective and will hinder local efforts to 25,to provide time limits on the supportjob creation, housing, "deemed increment" created by land redevelopment and remediation. sales,leases and loans,and allow authorities greater flexibility in the The need for flexibility has been accentuated use of lease revenues to fund ongoing due to the pandemic economic downturn operations; which has dramatically slowed existing g) Expand the use of TIF to assist in the projects that must continue to comply with development of technological statutory timelines. Many projects will have infrastructure and products, difficulty meeting time-line requirements biotechnology, research, multi-modal such as the five-year rule without special transportation and transit-oriented legislation authorization. development, restoration of designated historic structures, non- Further restrictions of TIF would render the retail commercial projects, and non- tool less effective and will hinder local wetland areas where unstable/non- efforts to supportjob creation, housing, buildable soils exist; redevelopment and remediation. h) Increase the ability of TIF to facilitate Response: The Legislature should not redevelopment and housing activities; enact future TIF law restrictions, rather i) Modify the housing district income the Legislature should: qualification level requirements to allow the levels to vary according to individual communities; 90 j) Encourage compact development and municipal development tools, the 2008 consider reauthorization of compact Legislature expanded the abatement development TIF districts with authority by converting the limit on modifications to increase their abatements from ten percent of the current effectiveness; tax levy to ten percent of net tax capacity. k) Discourage any statutory mechanisms In order to provide maximum benefits and that directly or indirectly decrease the recognize local decision-making, tax impact of city redevelopment and abatements should have less restrictive economic development projects; funding caps, financing terms, and 1) Simplify the substandard building test authorized uses. to resolve ambiguities and reduce the continued threats of litigation; The tax abatement law requires that a m) Create an exception to the interfund political subdivision may only approve an loan resolution requirement in Minn. abatement after holding a public meeting Stat. 469.178, subd. 7,to authorize the with a minimum of 10 days published public development authority to delegate to a notice. When more than one political staff person the ability to set the terms subdivision abates property taxes for a and conditions of an interfund loan. development project, there must be separate n) Amend the definition of notices and hearings for each subdivision. redevelopment district under the TIF This requirement can be particularly Act to include the obsolescence and burdensome for programs designed to incompatible land uses included in a develop multiple properties over an renewal and renovation district, extended period of time. If one political thereby providing cities with more subdivision could be designated as the lead flexible tools to address land entity for purposes of the notice and hearing remediation and redevelopment. requirements, such projects could be made o) Amend Minn. Stat. 469.1763 subd. 2 more efficient without sacrificing public to provide development authorities transparency. greater flexibility to address local housing needs by removing section 42 Property tax abatements should not be requirement for housing projects considered a replacement for TIF. outside the district. Response:In light of current economic LE-29. Property Tax Abatement conditions existing property tax abatement authority should be Authority strengthened. The Legislature should: Issue:In an effort to increase the number of a) Expand the abatement authority to development tools available, the 1997 allow abatement revenues to be used Legislature authorized local units of for economic development activities government to grant property tax such as workforce readiness and abatements. Although tax increment assistance programs, and technology financing (TIF) continues to be the primary infrastructure improvements; financing mechanism for local development projects, tax abatements provide cities with b) Develop a state fund to facilitate state an important, additional economic participation in abatement projects by development tool. Recognizing the need for 91 allowing the state property tax to be such as increasing tax base or job abated; opportunities, robust development could c) Increase funding caps under Minn. have unintended consequences such as Stat. § 469.1813, subd. 8 and duration displacement of current residents and limits under Minn. Stat. § 469.1813, businesses. subd. 6; and d) Amend Minn. Stat. § 469.1813, subd. Response: The League of Minnesota 5,to create a streamlined notice and Cities urges the federal government to hearing requirement for multi- seek regular input from communities that jurisdictional tax abatement projects. are designated as Opportunity Zones regarding how the tool is being used, LE-30. Opportunity Zones whether the tool is encouraging new development opportunities, and how Issue: The Opportunity Zones program is a community members who live in the new community development program Zones are impacted, such as through a established by Congress in the Tax Cuts and local advisory board made up of Jobs Act of 2017 to encourage long-term residents,businesses, and other investments in low-income urban and rural stakeholders located in the designated communities nationwide. The Opportunity census tracts. The Federal Government Zones program provides a tax incentive for should seek input from local communities investors to re-invest their unrealized capital throughout the implementation of the gains into Opportunity Funds that are rules and regulations and consider dedicated to investing into Opportunity necessary amendments and adjustments Zones as designated by the chief executives as needed in response to potential of every state and territory in the United questions or concerns raised by the States. The tax incentive is available for up communities whose residents,workers, to ten years. and businesses will be experiencing the changes that ensue in the Zones. As the chief executive of the state of Minnesota, Governor Mark Dayton The State of Minnesota should utilize designated 128 census tracts across the state community development resources to as Opportunity Zones, but beyond the stimulate investment in Opportunity responsibility for this designation the state Zones and adopt policies that ensure that does not have an additional role in the local residents,workers and businesses implementation of the Act. The United benefit from the investments. States Treasury released rules on April 17, 2019 which provide guidance and LE-31. Revisions to the OSA Audit clarification for investors and fund Function managers. It is anticipated that the Act may be a useful tool in spurring development in Issue:Pursuant to Minn. Stat. § 469.1771, low-income communities and could help the Office of the State Auditor(OSA) is with business development and jobs; there responsible for tax increment financing are also questions about what impact the Act (TIF) oversight. As part of its review of TIF will have on the residents that live and districts, the OSA identifies alleged businesses that operate, in these violations of the TIF laws and issues communities today. For example, while noncompliance notices to TIF authorities. In development may have positive impacts recent years, a number of cities have 92 received letters of inquiry from the OSA that In the event that the OSA determines to raise questions about practices long accepted issue a final noncompliance notice to a by the OSA or limit statutory definitions that TIF authority,the Legislature should have not been amended by the legislature for require the OSA to issue the notice within over a decade. The audit power in Minn. 60 days of receiving the authority's Stat. § 469.1771 is necessary to ensure that response.Any final noncompliance notice individual cities comply with the TIF should contain the OSA's final position statutes, but is not effective in clarifying the on the matter, the date upon which it legislative intent of the TIF statutes. forwarded the matter to the county attorney, and the next steps that are In addition, the TIF statute requires that required to be taken according to state authorities respond to noncompliance law. Upon expiration of the 60-day notices within 60-days of receiving the period,the authority should be deemed to notification. There is no deadline for the be in compliance with the TIF laws if no OSA to respond, and authorities often do not final noncompliance notice is received. receive timely responses on the matter from the OSA. Government agencies typically In order to ensure a fair process to have response-time deadlines, and it is resolve disputes over TIF findings of the appropriate for the OSA to respond by a OSA,the Legislature should consider time certain to provide finality to the audit whether the authority to resolve such process. Any final disposition notice must disputes should be shifted from county be clear about the final disposition of the attorneys to the Office of Administrative matter. Hearings. Finally, the statutory audit enforcement LE-32. OSA Time Limitations process does not create an environment where these policy questions can be fairly Issue: The Office of the State Auditor and sufficiently resolved. County attorneys (OSA) has the authority to issue lack the resources to prioritize TIF disputes noncompliance notices for every existing tax and lack the subject matter expertise needed increment financing (TIF) district in the to analyze the merits of the OSA's audit state for alleged violations of the TIF laws. findings. This results in excessive deference This authority extends retroactively to the granted to the OSA's original audit findings. inception of the district. Accordingly, TIF Faced with the potential loss of increment, authorities can receive noncompliance payment of attorney fees, and small notices for alleged violations that occurred likelihood of success on the merits, cities 20 or more years ago. Often, staff and often acquiesce to the OSA to save time and record-keeping procedures have changed, money. and TIF authorities find it difficult to reconstruct the past in order to identify and Response: The League of Minnesota remedy these situations. Similarly, the OSA Cities believes there should be a more claims the authority, based on the state's defined process to establish rules or records retention schedule, to audit TIF guidelines for TIF authorities with districts for up to 10 years after adequate input from local government decertification, which requires cities to officials and public finance professionals expend staff resources to maintain files and prior to their adoption. a working knowledge of old districts for an unreasonable period of time. 93 Response:A reasonable timeframe within important to ensure the appropriate which alleged violations are identified resources and process exist for the should be established. The Legislature Department of Labor and Industry (DLI)to should reasonably restrict the OSA's determine representative and accurate ability to issue noncompliance notices to prevailing wage amounts in different areas the six-year period prior to the notice's across the state. issuance date. The Legislature should also require the OSA to conduct any audits on The 2017 Legislature approved funding for decertified districts within one year of the Workforce Housing Grant Program at $2 decertification. million each year. The program was moved from DEED to be administered by MN LE-33. Workforce Housing Housing Finance Agency (MHFA) in Minn. Stat. 469A.39 with a change in Issue:Job creation is one of the qualifications that gives preference to cities fundamental goals of economic under 30,000 population (rather than 18,000 development. When employers create new previously). jobs through expansion or relocation there must be sufficient housing in the host The 2017 Legislature also approved a new community for the new workers and their use of TIF authority for workforce housing families to live. In rural communities, a lack (Minn. Stat. § 469.174-176). In addition to of housing stock for new workers can requirements under Minn. State. 469.175, prevent a planned expansion or relocation, subd. 3, county and school boards must hampering job growth and economic approve the TIF plan before it is enacted and development. The economics of building a the authority sunsets in 2027. These housing development in greater Minnesota additional requirements specific to communities makes private development workforce housing TIF districts put difficult, and workers with higher paying additional barriers on workforce housing jobs do not qualify for traditional affordable development and does not fully recognize housing. This housing gap can bring the role of cities as the typical lead development and job growth in a community government entity on housing projects. to a halt. Minn. Stat. § 469.175, subd. 2, currently requires cities to provide the county auditor In 2014, at the urging of cities through and clerk of the school board with the Minnesota, the Legislature created a proposed TIF plan and an estimate of the workforce housing pilot program for three fiscal and economic implications of the cities in Roseau and Pennington Counties. In proposed TIF district at least 30 days before 2015 the Legislature passed League- the public hearing required by Minn. Stat. § sponsored legislation that created the 469.175, subd. 3. The county auditor and workforce housing development program school board shall provide copies of these and appropriated $4 million to the TIF plan materials to members of their Department of Employment and Economic boards. These current requirements provide Development(DEED)to administer the sufficient notice to taxpayers and other program. Once grant awards from DEED government entities about proposed TIF were made, prevailing wage requirements, districts. construction costs, and land prices have shown to lessen the effectiveness of creating Response: The League of Minnesota more workforce housing units. It is Cities supports additional tools for local 94 communities to develop workforce LE-34. Development Along Transit housing: Corridors a) MINA should solicit input from local Issue:While the establishment of transit communities to ensure that the goals lines and corridors provide the impetus for of the Workforce Housing Grant economic development, there are limits to program are met, and MHFA should existing development tools that hinder full award funds to eligible projects as development of transit corridors. For quickly and efficiently as possible; example, acquisition of land outside of the b) The Legislature should increase line but within the corridor can be difficult, funding to the Housing and Job and current tools are not well-suited for the Growth Initiative to aid housing in creation of public spaces, enhancement of support of job growth, and amend infrastructure, and investments such as Minn. Stat. § 462A.33 to eliminate or parking ramps that are necessary increase the maximum income levels components of a transit-oriented for participation in the program; and development plan. c) The Minnesota Housing Finance Agency should make administrative In 2008 the Department of Employment and changes to the Housing Challenge Economic Development(DEED)was Grant program to streamline the authorized to establish Transit Improvement application process, reduce the per- Areas, which should complement long-term unit cost of constructing affordable transportation planning initiatives such as housing, and increase the construction MAP-21 and Minnesota GO. Transit of affordable rental units at 80% of Improvement Areas include parcels of land median income and owner-occupied that are located in part within one-half mile units at 115% of median income, as of a transit station. A transit station is currently allowed by state and federal defined as a physical structure or designated law; and area which supports the interconnection of d) The Legislature should pass various transportation modes, including light legislation creating a workforce rail, commuter rail and bus rapid transit, and housing tax credit to spur which promotes and achieves the loading, development of workforce housing. discharging and transporting of people. The e) The Legislature should scale the commissioner of DEED may designate a workforce housing grant program to Transit Improvement Area if it will increase account for the additional cost the effectiveness of a mass transit project by associated with the prevailing wage incorporating one or more modes of public requirements. transportation with commercial and housing f) The Legislature should eliminate the development, as well as providing a clean provision in Minn. Stat. § 469.175, and pleasant place for pedestrian use. DEED subd. 3,that requires the county has designated over 50 Transit Improvement board and school board to approve a Areas; all but two are located in the seven- workforce housing TIF plan before it county metropolitan area. Although the is enacted and the Legislature should language passed and was signed into law by also eliminate the sunset of the the governor(Minn. Stat. § 469.35), there workforce housing TIF authority. was no funding put into place to implement the new program. 95 Response: The League of Minnesota value or"benefit" from the project. In Cities urges the Legislature to increase practice, however, proof of increased the ability of traditional economic property value to this degree of benefit can development tools,including tax rarely be proven from regular repair or increment financing,tax abatement, and replacement of existing infrastructure such special service districts, to address the as streets or sidewalks. Alternatives to the needs of transit-oriented development. Minn. Stat. ch. 429 methods for financing The League encourages the Legislature to infrastructure improvements are nearly appropriate bonding and general fund nonexistent. dollars for revolving loans and grants to fund the TIA program. Additionally,the The Legislature has given cities the Legislature should consider adding park authority to operate utilities for waterworks, and ride facilities to the list of qualifying sanitary sewers, and storm sewers. The transportation modes, as defined in Minn. storm sewer authority, established in 1983, Stat. § 469.351. Because the majority of set the precedent for a workable process of the DEED-designated Transit charging a use fee on a utility bill for a city Improvement Areas are currently located service infrastructure that is of value to in the seven-county metropolitan area, everyone in a city. Similar to the storm increased funding for this program will sewer authority, a transportation or sidewalk not be balanced between greater utility would use technical, well-founded Minnesota and the metro area. Additional measurements and would equitably funding for this program should not distribute the costs of local infrastructure change the overall balance of state services. funding between greater Minnesota and the seven-county metropolitan area. Response: The Legislature should authorize cities to create, as a local LE-35. Public Infrastructure option, additional utilities such as a Utilities transportation or sidewalk utility,that ensure funding for the maintenance of Issue: Successful economic development these public amenities.Additionally, efforts and community stability are whether established as a new chapter of dependent upon a city's ability to make law or added to the list of service charges infrastructure investments. Current in Minn. Stat. § 429.101, cities should be infrastructure funding options available to able to impose service charges against cities are inadequate and unsustainable. property to ensure the maintenance and Funding pressures have been exacerbated by safety of the right of way for all levy limits, unallotment and reductions in Minnesotans without having to prove an the local government aid and market value increase in fair market value or having to homestead credit programs. The existing determine whether those contributing to special assessment law, Minn. Stat. ch. 429, the utility fund are taxable or tax-exempt. does not meet cities' financing needs Such authority would acknowledge the because of the special benefit requirement. effects of repeated levy limits and the The law also requires a bond election unless general funding shift from the state to a minimum of 20 percent of such a project local governments for building and can be specially assessed against affected maintaining necessary infrastructure; the properties due to the increase in fair market benefits to all taxpayers of a properly maintained public infrastructure; and, 96 the limitations of existing special restrictions on the amount of debt assessment authority. service the state will incur, and provided the Legislature appropriates LE-36. Adequate Funding for funding to assist with local costs Transportation related to projects funded with trunk highway bonds. Issue:A well-coordinated state i) General obligation bonding for local transportation policy utilizing all modes of roads and bridges,particularly for transportation in moving passengers and routes of regional significance. freight will enhance the state economic j) A sales tax increase dedicated to development of new and expanding business transportation. as well as foster additional tourism k) Funding to assist cities burdened by opportunities. cost participation responsibilities imposed by improvement projects on Response: More resources must be the state's principal arterial system dedicated to all components of the state's and on the county state aid highway transportation system, and local units of (CSAH) system. government must have access to resources 1) Funding for transportation and funding tools to meet growing needs. components of economic development The League of Minnesota Cities supports: and redevelopment projects. m) Full funding for all components of a) Development of a comprehensive state state highway projects,including transportation policy which provides related stormwater management an environment where all modes of systems, through state sources. transportation (motor, rail, air,water n) Establishment of a "Mainstreets and pipeline) complement each other Fund" to assist cities with non- in moving passengers and freight transportation related components of within the state. trunk highway projects such as utility b) A dedicated and sustainable state upgrades and improvements that revenue source for non-municipal contribute to economic development. state aid city streets. o) Funding to build roads to standards c) The Statewide Transportation Plan that can accommodate the year-round 2009-2028 developed by the Minnesota transport of heavy loads. Department of Transportation p) A sales tax exemption for materials (MnDOT). purchased for state and local road, d) MVST distribution of 60 percent for bridge, sidewalk, trail and transit roads and bridges and 40 percent for construction projects. transit. q) Authority for cities to impose e) A permanent increase in the gas tax. development impact fees for f) Indexing of the gas tax,provided there transportation infrastructure. is a limit on how much the tax can be r) Local funding options that would increased for inflation in a given allow cities to raise revenues for amount of time. roads, bridges, sidewalks, trails, and g) Increases in vehicle registration taxes transit. (tab fees). s) Expanded use of alternative revenue h) Trunk highway bonding provided the sources such as MnPASS and other Legislature implements reasonable 97 tolling mechanisms for funding of property maintenance codes pertaining to maintenance and construction (where grass mowing, noxious weed abatement, the feasibility studies indicate the placement of trash in yards and fence program is appropriate). maintenance. LE-37. Turnbacks Of County and Minnesota has many miles of highways that State Roads run through cities. In recent years, the Minnesota Department of Transportation Issue:As road funding becomes (MnDOT)has cut a substantial percentage increasingly inadequate, more roads are of its rights-of-way management staff. The being "turned back"to cities from counties cuts have resulted in reduced maintenance and the state. along some corridors and on parcels acquired by MnDOT for transportation Response: Turnbacks should not occur purposes. Specifically, MnDOT has reduced without direct funding or transfer of a the frequency of mowing, litter collection, funding source.A process of negotiation noxious weed abatement, graffiti abatement and mediation should govern the timing, and repair of fences and guard rails. This funding, and condition of turned-back maintenance reduction has created public roads.Agreements should be negotiated safety concerns, undermined efforts to keep and finalized before work on a project corridors attractive and presented challenges requiring a turnback begins. City for communities working to promote taxpayers should receive the same economic development. treatment as township taxpayers. The requirement for a public hearing, Response:MnDOT must maintain state standards about the conditions of rights-of-way and parcels acquired by turnbacks, and temporary maintenance MnDOT for transportation purposes funding should also apply to county located within city limits in a manner turnbacks to cities.At a minimum, roads consistent with local ordinances that are proposed to be turned back to a governing the upkeep of private property city government should be brought up to when requested by the city.Alternatively, the standards of the receiving MnDOT should reimburse Minnesota government, or that city should be cities for the labor, supplies, and compensated with a direct payment. equipment necessary to maintain state Direct funding should be provided for rights-of-way to meet city standards smaller cities that are not provided with and/or minimize public safety hazards. turnback financing through the The Legislature must provide MnDOT municipal state aid system. with adequate funds to maintain state rights-of-way. LE-38. MnDOT Rights-of--Way Maintenance LE-39. Funding for Non-Municipal State Aid City Streets Issue:Maintenance of property, including government property and facilities, is Issue:Minnesota has over 141,000 miles of important to public safety and to the image roadway, and more than 22,500 milesor of Minnesota cities. Cities are acutely aware 16 percent--are owned and maintained by of the responsibility they have for enforcing Minnesota's 853 cities. 98 The Minnesota Constitution limits eligibility goods. Cities need greater resources and for dedicated Highway User Tax flexible policies in order to meet growing Distribution Fund dollars to up to twenty demands for street improvements and percent of streets in cities with populations maintenance. The League of Minnesota over 5,000 (147 of 853 cities). This means Cities supports: almost 85 percent of municipal streets are ineligible for municipal state aid (MSA) a) A dedicated and sustainable state funds and must be paid for with property funding source for non-MSA city taxes and special assessments. Funding streets in large and small cities challenges are compounded by city cost statewide; participation requirements in state and b) enabling legislation that would allow county highway projects, which divert cities to create street improvement resources from city-owned streets. districts (similar to sidewalk improvement districts already allowed Recognizing the unique street funding needs under Minn. Stat. § 435.44); and in cities under 5,000 population, the 2015 c) the creation of a new fund within the legislature created the Small Cities Local Road Improvement Program Assistance Account(Minn. Stat. § 162.145). that would provide grants to cities Funds in the account are distributed through burdened by cost participation a formula to all cities under 5,000 requirements related to trunk population for street maintenance and highway and county state-aid projects. reconstruction. Unfortunately, funding for the account has only been provided for three LE-40. Authority to Allow times. Because Small Cities Assistance Amenities in MnDOT Rights-of- funding has been provided so inconsistently, way small cities have had difficulty using the revenue stream as a tool to maximize Issue: Cities served by the state's trunk pavement management and street highway system frequently request features improvement planning. on the highway right-of-way (ROW)that would improve the aesthetics of the highway Maintenance costs increase as road systems or provide public amenities exceeding age, and no city--large or small—is components the Minnesota Dept. of spending enough on roadway capital Transportation (MnDOT) may include. improvements to maintain a 50-year Minn. Stat. §161.20, Subd. 2(b), gives the lifecycle. For every one dollar spent on MnDOT commissioner authority to make maintenance, a road authority--and therefore agreements with and cooperate with any taxpayers--save seven dollars in repairs. governmental authority relating to trunk According to a report released in late 2012 highway construction and improvements; by the governor's Transportation Finance however, Minn. Stat. §161.434 provides that Advisory Committee, cities collectively arrangements and agreements must be"for need an additional $400 million per year to highway purposes". bring city streets up to an economically competitive standard. These restrictions are problematic in cities where a downtown commercial area exists Response: City streets are a separate but along a trunk highway. Some of these cities integral piece of the network of roads desire amenities that would make supporting movement of people and 99 commercial areas adjacent to trunk LE-42. Infrastructure Fees highways more vibrant by allowing outdoor dining, landscaping, decorative lighting or Issue:New development and the resulting other aesthetic improvements that do not growth create an increased demand for serve a highway purpose. Under current law, public infrastructure and other public the city cannot approve amenities that facilities. Severe constraints on local fiscal encroach on the ROW. resources and dramatic forecasts for population growth have prompted cities to Response: The League of Minnesota reconsider ways to pay for the inevitable Cities supports authorizing cities,by costs associated with new development. ordinance,to allow amenities that do not serve highway purposes on trunk Traditional financing methods tend to highway ROW within their jurisdictions. subsidize new development at the expense The League also supports a requirement of the existing community, discourage sound that MnDOT develop and approve rules land-use planning,place inefficient related to local ordinances. pressures on public facilities, and allow under-utilization of existing infrastructure. LE-41. Complete Streets Consequently, local communities are exploring methods to ensure new Issue: There is increasing public support for development pays its fair share of the true the reform of local street design policies to costs of growth. make streets safer for pedestrians, cyclists and neighborhood residents. In Harstad v. City of Woodbury, 916 N.W.2d 540 (Minn. 2018), the Minnesota Response: The League of Minnesota Supreme Court recently clarified that state Cities supports reforms in state design statute does not provide the authority for guidelines for local streets that would give cities to impose infrastructure fees to fund cities greater flexibility to safely future road improvements when approving accommodate all modes of travel, subdivision applications under Minn. Stat. § including walking and biking. The state 462.358, subd. 2a. Given the existing should also provide incentives such as authorization to impose fees on new grants to local units of government development of other infrastructure, such as working to advance complete street water, sanitary and storm sewer, and for projects. Crosswalks and Safe Routes to park purposes, it is reasonable to extend the School projects should be eligible for concept to additional public infrastructure incentives. and facilities improvement also necessitated by new development. The League opposes state imposed unfunded mandates that would increase Response: The Legislature should the costs of building streets in contexts authorize local units of government to where facilities for cyclists and impose infrastructure fees so new pedestrians are unnecessary or development pays its fair share of the off- inappropriate. site, as well as the on-site, costs of public infrastructure and other public facilities needed to adequately serve new development. 100 LE-43. Safe Routes to School Response: The League of Minnesota Grants Management Cities supports changes to MnDOT rules to allow small cities that have the capacity Issue: The Safe Routes to School (SRTS) to manage SRTS grants and projects to Program provides funding support for do so without county approval. capital projects that promote and encourage more students to walk or bicycle to school LE-44. Railroads by making the school routes safer and more accessible. Issue:Railroads impose far-reaching and long-term impacts on communities. The The following are some types of SRTS impact of railroads on communities has infrastructure improvement grants that are become more pronounced in Minnesota as provided by the state and offered through the number and length of trains have the Minnesota Dept. of Transportation increased due to frac sand and crude oil (MnDOT): entering the state by rail to and from North Dakota. While railroads often support a) School site improvements: secure economic activity and can relieve pressure bicycle parking facilities, traffic on roadway and bridge infrastructure, they diversion improvements, and also bring noise, environmental impacts and Americans with Disabilities Act safety challenges. Below are some of the (ADA) improvements; concerns cities have raised about railroads: b) Pedestrian facilities: new sidewalk, sidewalk gap closures, and related a) Local public safety personnel are ADA improvements; underequipped to respond to a potential c) Bicycle facilities: bicycle trails, derailment of a train carrying hazardous separated multi-use or shared paths materials such as crude oil or nuclear and related ADA improvements; and products. d) Traffic calming and crossing b) The cost-share ratio related to roadway improvements: curb extensions, crossing improvements is borne speed humps, median refuges, disproportionately by the public sector. enhanced crosswalk markings, timed Some estimates are 80 percent public to on/off beacons, vehicle feedback 20 percent private funding, regardless of signs (dynamic speed signs), and the public entity's ability to pay or other traffic control devices. whether service is provided within the community. Funding has not kept pace Cities that receive municipal state aid with the growing need for grade (MSA)--those with populations above separations. 5,000--may apply for and administer their c) Legislation brought by the railroad own SRTS grants. Non-MSA cities, even industry that would exempt railroads those with a city engineer on staff or from stormwater fees and assessments contract, must rely on the county to manage and shift the cost of complying with any grant funds secured as well as to stormwater management to other approve the project design. In some cities, property owners. this requirement has led to project delays d) The financial burden is faced by the and disputes with counties over project public sector to deal with mitigation design and delivery. improvements, a cost that the Surface 101 Transportation Board (STB) is not e) Allow local governments to enforce requiring the private sector to pay. whistle-free zones; e) At-grade crossings are blocked by both f) Impose and implement safety long moving trains and by trains that standards that are in the best interest stop and remain stopped, sometimes for of the public,including requiring hours at a time. Blocked crossings delay every train that is carrying freight to motorists and sometimes prevent be operated with a crew of at least two passage of emergency vehicles. crewmembers; f) Difficulty and expense of imposing and g) Equip and train local public safety enforcing whistleblowing ordinances. officials to respond to potential g) Unabated graffiti on railroad cars and catastrophic rail incidents; structures. h) Develop plans and identify funding h) Negative impacts of long- and short- sources for more grade separations term storage of rail cars on adjacent between railways and roadways; and properties. i) Fund and implement improvements to i) Pre-emption of local and state authority rail car storage facilities. to regulate railroad activities. The public sector should not incur the Response: The League of Minnesota costs of improvements sought by the Cities opposes legislation and policies that private sector, and cities should not be disproportionately shift authority, costs required to fund most of the cost of and/or liability away from railroad crossing repairs or improvements. The companies and onto other entities. The federal government must exercise greater railroad industry, along with state and oversight of the STB to ensure fair and federal government, must: equitable solutions are reached when dealing with cities in Minnesota. Finally, a) Adequately mitigate the negative the Minnesota Department of impacts of railroads on communities; Transportation's (MnDOT's) Office of b) Allow local governments to enforce Freight and Passenger Rail should the existing state and federal laws advocate on behalf of local communities regarding the maximum time a when conflicts between cities and railroad crossing may be blocked, and provide entities arise. a mechanism to do so; c) Provide that timely notice to the LE-45. Airport Planning and impacted municipality is required in Funding advance when a crossing or crossings will be blocked by a stopped train; Issue: Airports are an essential component d) Require railroad companies to of Minnesota's transportation infrastructure. provide a direct emergency response Airports in the State of Minnesota serve telephone number for city first important gateway to the region, the nation, responders (police, fire, ambulance or and global markets. They serve as a primary other designated official) to call when access point to our national airport system. an at-grade crossing is blocked, and The Minneapolis St. Paul International the emergency services need this Airport(MSP) is critical to the movement of crossing immediately unblocked to people and goods in and out of the state and continue their response; even with all the planned improvements, it 102 will eventually reach its capacity. The state Response: The state needs a higher degree needs to implement a long-term strategy to of integration of agencies (FAA,MnDOT, make better use of other airport facilities and MC, and MAC) and communities related existing resources, reduce environmental to aviation planning. The League of impacts, and achieve sound and sustainable Minnesota Cities supports the economic growth throughout the state. collaborative efforts initiated by the MCOA and supports the development of Aviation planning is a multi-layered effort a statewide airport advisory board,which with different levels of responsibilities. could provide input, review and make Currently, the State Airports System Plan is recommendations to assist in development put together by MnDOT with individual of a comprehensive statewide State pieces developed by the Federal Aviation Airports System Plan. Agency (FAA), Metropolitan Council (MC), and Metropolitan Airports Commission The state needs to make planning and (MAC). Aviation planning could be investment decisions that will maximize improved by a more unified statewide effort the potential for airports to become and coordination of the various aviation economic development centers that strategies through creation of an oversight provide access to domestic and global body. marketplaces. Investments in airports allow existing businesses to remain and Minn. Stat. § 360.017 establishes the State grow, help attract new businesses, Airport Fund and authorizes the Minnesota increase employment, and lower product Department of Transportation (MnDOT) and service costs for the benefit of the Office of Aeronautics to support cities, region. counties and townships in the planning, development, maintenance and safe Finally, the Legislature should not operation of public airports. In recent years, authorize shifting of dedicated State in order to help balance the state's budget, Airports Fund dollars to resolve general the Legislature transferred funds from the fund deficits. State Airport Fund to the General Fund. Although the borrowed funds were LE-46. Airport Safety Zones eventually repaid in full, efforts to preserve and improve the quality of airports Issue: The field of aeronautics is regulated throughout the state were hindered by the generally by Minn. Stat. ch. 360 and Chapter unavailability of these revenues. 8800 of the Minnesota Rules. Land use safety zones and other public airport zoning The Minnesota Council of Airports standards are established in Minnesota Rules (MCOA), a membership organization for Chapter 8800.2400, and are adopted by local airport authorities and municipal entities airport zoning regulations that are submitted who own airports, has led efforts to bring to the Minnesota Department of stakeholders together. Most recently, the Transportation (MnDOT) commissioner for MCOA established the State Airports Fund review and approval before adoption. Committee to work with the MnDOT Office Airport safety zones are intended to restrict of Aeronautics to discuss and advise future land uses that may be hazardous to the management practices of the State Airport operational safety of aircraft using the public Fund. airport, and to protect the safety and 103 property of people on the ground in the area LE-47. Development Responses to near the public airport. the Pandemic While some of the provisions included in the Issue: The economic fallout of the pandemic Minnesota Rules are required by the Federal has dramatically slowed development Aviation Administration (FAA), other projects across the state. The tax increment provisions go well beyond the federal financing tool includes many rigid timeline requirements. In some cases, the Minnesota restrictions that do not anticipate the effects Rules do not make sense for the community of severe economic disruptions. served by a public airport. Response: The League of Minnesota Finally, in some cases airports cross Cities supports: multiple municipal jurisdictions. Neither state law nor Minnesota Rules provide a) A universal extension of the five-year powers for joint airport zoning boards. rule to accommodate the impacts of These boards could be useful in resolving the pandemic economic recession inter urisdictional issues involving airport similar to the temporary authorization planning, development, funding and zoning. enacted during the Great Recession; b) Amending MS469.174 subd 10 (d) to Response: The League of Minnesota extend the three-year deadline for Cities supports efforts to protect the parcels formerly occupied by safety and property of people living and substandard buildings to be included working near public airports. The League in a redevelopment TIF district. also recognizes that the Minnesota Rules c) Providing tools for development related to public airport zoning standards authorities to offset losses in exceed the FAA's and other states' increment revenues caused by the standards and,thus, needlessly infringe unanticipated economic disruptions of on local control. The League supports the pandemic. changes to Minnesota Rules pertaining to d) Providing tools for development airport zoning standards that will more authorities to assist with costs closely align Minnesota's Rules with those associated with pandemic-necessitated in other states,while at the same time improvements. retaining local authority to be more e) Clearly authorize cities to use federal restrictive than the Minnesota Rules. The funds from the Coronavirus Relief League also supports changes to Fund to provide assistance grants to Minnesota Statutes and Minnesota Rules individual persons,private businesses, that would authorize powers for joint non-profit entities and any other airport zoning boards so issues related to entity authorized under Public Law funding, staffing, and authority to enforce 116-136. ordinances can be resolved at the local level. 104 HUMAN RESOURCES & DATA PRACTICES imposed upon the state as an HR-1. Personnel Mandates and employer. Limits on Local Control f) Use the collective bargaining process established by state law,rather than Issue:Many state laws increase the cost of legal mandates,to determine benefits providing city services to residents by for employees covered by collective requiring city governments to provide bargaining agreements. certain levels of compensation or benefits to public employees, by specifying certain HR-2. Earned Sick and Safe Time working conditions, or by limiting city governments' ability to effectively manage Issue: In recent years, there have been their personnel resources. For instance, legislative proposals to require employers to existing state laws limit governments' provide "earned sick and safe time" ability to effectively address incompetence affording employees one hour of sick and or misconduct of city employees by safe time for every 30 hours worked. Cities specifying certain procedures or standards of recognize their employees for their conduct that cities must follow. Several laws dedication to public service and currently are potentially contradictory and force local provide a wide variety of excellent benefits governments to choose which one to follow. to their employees and prioritize the health and well-being of staff. Benefits include Response:Any new legislation and paid time off for most staff who are required changes to existing legislation should meet to be enrolled in the Public Employee the following goals: Retirement Association (PERA) (Minn. Stat. § 353.01, subds. 2a, 2b). In developing leave a) Recognize the need for local decision- and benefit policies, cities must be mindful making authority by local elected of the cost to citizens for programs, much of officials with regard to the terms and which are driven by staff compensation and conditions of employment for local benefits. government employees (e.g., allow local elected officials to determine Response: To avoid significant cost employee compensation, employee increases and to provide clarity,the recognition, and to make employee Legislature should use the same eligibility benefit decisions. requirements for public employees b) Provide funding that pays the full outlined in state statute for PERA costs of any mandated employment- participation if a mandatory sick and sick related expenditures. and safe time program is enacted by the c) Avoid and eliminate expensive and Legislature. time-consuming duplicative legal protections and processes for public HR-3. Pay Equity Compliance employees. d) Eliminate contradictory existing laws Issue:In 1984, the Legislature passed the regarding public employment. Local Government Pay Equity Act to e) Eliminate mandates for local eliminate sex-based wage disparities in government employers that are not public employment. The Act requires each 105 local government to submit reports of its pay definitions of"public employee" are structure to the state's Pay Equity confusing and difficult to manage. In Compliance Coordinator within the addition, the arbitration process has Department of Management and Budget. produced decisions that are contrary to the The data is then subject to analysis to interests of the public, and the legal standard determine if there are inequities in the city's for overturning arbitration decisions is very pay structure. Since its passage, the difficult to meet. Also, recent administrative rules implementing the Act interpretations of Minn. Stat. § 179A.25 have not substantively changed. (independent review of non-union employee grievances)has created uncertainty and Response: The League of Minnesota confusion in the longstanding judicial Cities supports the Local Government process used by courts to review city council Pay Equity Act, and seeks to partner with administrative decisions,particularly the Legislature and the state's Pay Equity employment termination decisions of non- Compliance Coordinator to update and union employees. improve the current system so that cities can more efficiently and effectively fulfill Response:Minn. Stat. ch. 179A should be the mandated reporting requirements. modified to: Local governments and the state should: a) Change the definition of"public a) Explore and document problems employee" under PELRA by individual local governments are removing the existing 14-hour/67-day experiencing, and evaluate whether requirement and replace it with a the problems are widespread and if definition in which employees must they can be resolved administratively; work an annual average of 20 hours b) Evaluate the reporting process, and or more per week. make recommendations for b) Exclude temporary or seasonal improvement as needed; employees, as well as unpaid c) Review the methodology for analyzing volunteers, from the PELRA pay equity data; and definition of public employee in Minn. d) Evaluate the process by which cities Stat. ch. 179A. receive notification of reporting c) Provide different options for accessing requirements and compliance issues arbitrators and utilizing the and make recommendations for arbitration process in order to improvement as needed. "address inequities"between union and management representatives. HR-4. Public Employment Labor d) Allow public employers to bypass Relations Act (PELRA) mandatory arbitration required under PELRA and directly access the Issue: The League of Minnesota Cities district court or Office of supports the purpose of the Public Administrative Hearings system in Employment Labor Relations Act(PELRA) situations where an employee is being to balance the rights and interests of public terminated for gross misconduct(e.g., employees,public employers, and the excessive use of force, sexual general public. However, certain changes harassment, sexual abuse, theft or a are necessary to assist public employers in felony conviction) that is related to the implementing this law. For example, current employee's position with the public 106 employer,including establishment of a are seeking information about their standard that defers to the public constitutional rights regarding labor union employer's decision on termination if membership and associated dues. The it has met a standard of Minnesota Public Employment Labor reasonableness. Relations Act defines unfair labor practices e) Repeal Minn. Stat. § 179A.25 or,in ("ULPs")to include dominating or lieu of repeal, exclude employment interfering with the formation, existence, or terminations from Minn. Stat. administration of union membership. To § 179A.25; require a 60-day avoid a potential allegation that they have timeframe for filing a petition for engaged in unfair labor practices, if review of a grievance under Minn. employees seek information about union Stat. § 179A.25; and clarify that membership from their employers, decisions of Bureau of Mediation employers often refer their employees to Services (BMS) under this section are union representatives for additional non-binding and merely advisory. information. The Minnesota Bureau of Mediation Services (BMS) is the state HR-5. Implications of Janus v. agency charged with providing technical AFSCME training and information on collective bargaining for the public sector in Issue:Historically, both members and non- Minnesota. BMS would be an ideal resource members of public sector unions could opt for employees to find critical information out of paying the portion of dues that about labor union membership,particularly explicitly go to the union's political in the wake of the recent Supreme Court activities. But, until recently, non-members ruling. were still required to pay what was called a "fair share" fee, allegedly because even non- Additionally, as public sector unions are members receive the benefits of union examining methods to compensate for fair representation. Union dues are deducted share revenue that may now be lost, laws from employee paychecks by employers have been proposed in states outside of based on notification of membership Minnesota, which preempt the bargaining provided by labor unions. process and impose new requirements on public employers. Some of the proposed Overruling decades of precedent, in June requirements are designed to help unions 2018, the U.S. Supreme Court ruled it is market their services to their members or to unconstitutional for public employees who require the public employers to pay the costs object to belonging to a union to be required of collective bargaining. to pay a fair share fee. (Janus v. AFSCME). Specifically, the Supreme Court held that Response: To ensure that both public laws compelling fair share dues from employers and public employees unwilling members violated the First successfully navigate the current Amendment by requiring these employees unknowns following the Janus decision, to, in effect, pay for speech with which they the League of Minnesota Cities urges do not agree, and that affirmative, voluntary BMS to provide and disseminate consent is required for dues deduction. information to employees about union Given the degree of uncertainty about the membership across the state. The League implications of the ruling, public employees also urges the Legislature to act to protect public employers against: 107 a) ULP charges when providing factual for hearing officers,with costs to be information to employees about union shared by employers and authorized membership; representatives; b) ULP charges when requiring unions b) Allow the PERB to defer to the to provide original documentation of decisions made by an arbitrator to voluntary consent to dues deduction; prevent duplicative litigation on the and same issue; and c) being forced to pay the direct cost of c) Amend the Minnesota Government employee representation by unions. Data Practices Act and the Open Meeting Law to properly maintain the HR-6. Public Employment integrity of the hearing process. Relations Board HR-7. Payment of Arbitration Fees Issue:Dating back to the 1970's, Minnesota had a Public Employment Relations Board Issue:Like other employers, cities must (PERB) in place, but over time, its sometimes make difficult employment responsibilities were changed and reassigned decisions and uphold certain principles in to another bureau. Until the reemergence of order to best serve the public. In a union the PERB in 2014, unfair labor practices environment, grievance arbitration is (ULPs) actions could be brought in generally used as a"last-resort"remedy Minnesota District Courts through injunctive when a difficult employment decision must relief. In 2014, the Legislature recreated be made or to uphold an important principle. PERB to hear ULPs filed by employees, Legislation has been introduced in the past employers and labor unions under the Public that would require a city or the union to pay Employment Labor Relations Act(PELRA). arbitration fees if a reasonable settlement is The board was created in Minn. Stat. ch. offered and refused in a grievance situation, 179A and after receiving initial funding, the and the arbitrator ultimately decides on a board has yet to be fully funded or less favorable remedy. The legislation would operational. Much of the current statutory have the impact of discouraging cities from language regarding implementation should using the grievance arbitration process in a be amended to ensure the PERB operates manner that best serves the public good. successfully and efficiently for both public employees and employers. Response: The League of Minnesota Cities opposes legislation that would Response: The League of Minnesota undermine the grievance arbitration Cities supports the structure and process process and discourage cities from using to address ULPs that was utilized before the process in the manner intended. the reestablishment of the PERB in 2014. Specifically,the League opposes any If the PERB is implemented fully and legislation that proposes payment of funded sufficiently,the League of grievance arbitration fees when a Minnesota Cities encourages the settlement is offered and declined. Legislature to make the following changes: HR-8. Essential Employees a) Create statutory authority for the Issue: Cities must balance the health, PERB to establish a fee-based welfare, and safety of the public with the structure for filing ULPs and to pay costs to taxpayers. Essential employee status 108 removes the right to strike, but gives the settlement agreement at termination of right to mandatory binding arbitration. This employment. Because most cities are status can result in arbitration awards that "reimbursement employers,"the majority of exceed the city's budget or conflict with the the cost of benefits paid to the employee are city's compensation policy. at the direct expense of the city. The ability to enter into such an agreement can greatly Response: The Legislature should aid a city in reaching a settlement at a carefully examine requests from interest relatively low-cost to the city's taxpayers. groups seeking essential employee status under Minn. Stat. ch. 179A (PELRA). Response: Cities should not be forced to The League of Minnesota Cities opposes pay benefits as bae wage employers if the legislation that mandates arbitration that employee is determined to have increases costs and removes local committed gross misconduct during their decision-making authority. employment with the city, even if the employee voluntarily resigns. In addition, The League supports a mandate for Final cities (as reimbursement employers) Offer/Total Package arbitration for all should be allowed to enter into essential groups on a trial basis. The agreements with employees to not contest League also supports a change in the a determination of eligibility for PELRA law that would strengthen unemployment benefits where the existing language (Minn. Stat. § 179A.16, employer and employee mutually agree to subd. 7) requiring arbitrators to consider this as a term of separation. a public employer's obligation to efficiently manage their operations. HR-10. Public Employee Defined Specifically,the statute should be Benefit Pension Plans amended to require arbitrators to take into consideration any wage adjustments Issue:Public pensions are an important already given to or negotiated with other employee benefit that can help cities attract groups —both union and non-union for and retain employees. However, unlike the same employer in the same contract salary and other employee benefits that are year. established by each city, the pension contribution rates and benefit levels are set HR-9. Re-employment Benefits by the state legislature. Benefit levels and plan costs must be carefully balanced to Issue: Cities are often required to help pay assure long-term sustainability of the the benefits of workers who have initially pension plans and affordability to employers been denied benefits through their and employees. Despite ongoing funding employment with the city but later been re- issues, the Legislature and Governor had employed by a different employer; been unable to reach agreement on sometimes this occurs when the employee sustainability changes to the Public has been found to have committee gross Employees Retirement Association plans. misconduct while employed by the city. In 2018, the Legislature enacted a major Additionally, employers are prohibited from pension reform package to improve the entering into agreements with employees not to financial status of the PERA to contest or appeal payment of pension plans. The legislation included unemployment benefits as part of a benefit reductions for active employees, 109 contribution increases for Police and Fire General Plan and the Police and Fire Plan Plan employers and active employees and a is restored. modified cost of living adjustment(COLA) for retirees. For the PERA General Plan, any further increases in employer contributions Recent adjustments to balance PERA plan should only be considered by the costs have largely focused on contribution Legislature after other measures have increases rather than benefit adjustments. On been considered,including: January 1, 2015, the employer and employee contribution rates for the PERA General a) An increase in employee Plan each increased by 0.25% of salary, contributions so that employees and resulting in the current employer rate of 7.5 employers truly bear the same percent of salary and an employee rate of responsibility to bring the pension 6.5 percent of salary. For PERA Police and plans to full funding; or Fire (P&F) employees, the employer b) The removal of the cap on PERA contribution was increased to 16.95% and Pension Aid payments under Minn. the employee contribution was increased to Stat. § 273.1385 and the extension of 11.3%beginning January 1, 2019 and then the aid program after FY2020, so the the employer contribution was increased to state equalizes the contributions of 17.7% and the employee contribution was employees and employers. increased to 11.8%beginning January 1, 2020. The League also supports: For the PERA General Plan, an additional a) Modifications to the PERA eligibility one percent employer contribution is guidelines to take into account required under Minn. Stat. § 353.27, subd. temporary, seasonal, unique part- 3a, which will continue until the actuarial time, and student employment value of the plan assets equal or exceed the situations in cities,particularly in liabilities. Employees do not have a similar recreational operations. These obligation to help the General Plan reach modifications should include the use full funding. When the additional employer of pro-rated service credit,which contribution was increased to 0.43 percent in would make PERA consistent with the 1997, the state instituted a PERA aid other major Minnesota pension plans. program (Minn. Stat. § 273.1385) for b) A comprehensive review of exclusions employers to partially offset the cost of from pension participation with the increased employer contributions. However, goal of simplifying current eligibility the PERA aid payment rate is frozen at 1999 guidelines. Such a review should also levels, while the additional employer include a possible revision of current contribution has since increased from .43% penalties for employers that fail to to 1.0%. report covered employees to ensure that these penalties are not overly Response: The League of Minnesota harsh and punitive. Cities supports the sustainability c) The transfer of all school district modifications enacted by the legislature in employees out of the PERA General 2018 and continues to oppose any benefit Plan and into another fund that is improvements for retirees or active more appropriate for school district employees until the financial health of the employees as long as the change would 110 not negatively impact the financial "hazardous duties" from injuries health of the pension funds nor result resulting from "non-hazardous in employer contribution increases. duties" for purposes of police and fire The continued authority of cities to disability retirement benefits. effectively use retirees in b) A thorough study by PERA of the reemployment situations. The League current effects of overtime supports policy changes which would accumulation and outside employment include an increase in the earnings compensation on individual pension threshold for such retirees and benefits and the overall funding of the supports keeping the required break plan. The study should also include in service at 30 days and opposes recommendations on whether the suspending payments to retirees. overtime or outside employment should be factored into or excluded For PERA Police and Fire, any further from high five average wage increases in employer contributions calculations. should only be considered by the c) Allowing cities,including cities with Legislature after other measures have combination (full-time and paid-on been considered,including: call staff) fire departments, to work with their fire relief associations to a) An initial increase in the employee determine the best application of fire contribution of at least 1.0% of salary state aid. with subsequent increases split evenly between employee and employer so For PERA Corrections Plan the League that the contribution ratio moves supports: toward a more equitable split between employees and employers; or a) Maintaining the current definition of b) An additional state general fund covered employees for the PERA appropriation to fund the deficiency corrections plan,which does not in police and fire pension aid include dispatchers due to the payments so that the state equalizes substantial differences between the the contributions of employers and dispatchers and the existing employees. corrections positions covered by this c) Increasing the minimum and full plan. retirement ages for new PERA Police and Fire plan participants. For all PERA defined benefit plans the d) Implementing a contribution-based League supports: benefit formula that would align benefits payable with contributions a) Adjustments to the benefits for active made on behalf of an employee in members and retirees to reduce the order to address high-five spiking cost of the plans. issues. b) Requiring special legislation for individual employee pension benefit The League also supports: increases be initiated or approved by the city council of the impacted city a) Maintaining the statutory changes unless the cost of the benefit increase made to Minn. Stat. § 353.01 in 2007 is fully covered by the individual or that separate injuries resulting from 111 the legislation addresses a clerical or Response: The League of Minnesota administrative error. Cities supports the following legislative c) Requiring PERA to collect and actions to address the funding deficiency consider all employer-provided in this program: information,including independent medical examinations and other a) The state must fully fund relevant personnel data and to programs that pay for health broaden the basis for appealing insurance for police and fire disability determination decisions. employees injured in the line of duty and dependents of police and HR-11. State Paid Police and Fire fire employees killed in the line of Medical Insurance duty as originally required under Minn. Stat. § 299A.465. Issue:Minn. Stat. § 299A.465 requires b) The Legislature must avoid public employers to continue health further expansion of eligibility for insurance benefits for firefighters and peace benefits under Minn. Stat. § officers injured in the line of duty. When the 299A.465 unless 1) full funding for law was enacted in 1997, it contained a benefits is provided by the state; provision requiring the Department of and 2)beneficiaries can be Public Safety (DPS)to reimburse employers enrolled in a state health insurance for the full amount of administering this plan such as the Public Employees benefit. Insurance Program (PEIP). c) Cumulative injuries that occur By 2002, the fund created to provide this over time in the job should not benefit became deficient. Instead of qualify a police officer or increasing the fund, the 2003 Legislature firefighter for benefits under amended the law to pro-rate reimbursements Minn. Stat. § 299A.465 since these to cities based on the amount available and types of cumulative injuries are the number of eligible applicants. The 2003 not unique to the dangers of police law change triggered a significant and officer and firefighter duties. unanticipated cost to cities. The cost has d) The Legislature must clarify that increased every year for cities, and the the amount of an employer's funding for the account has never been contribution under Minn. Stat. § increased. Even if the health insurance 299A.465 is no greater than that benefit was discontinued entirely, the costs given to active employees in the for existing recipients will substantially same job class. increase well into the future due to the e) The Legislature must establish the growing cost of health insurance. minimum criteria used to determine ability to work, and set In 2015, the Legislature expanded the health a percentage threshold of disability insurance benefit to include survivors of for eligibility into this program.At volunteer firefighters who die in the line of a minimum,the Legislature must duty. This change increased the number of identify that a workers' firefighters eligible for this benefit from compensation determination as to 2,000 to 20,000—without increasing whether the injury is work-related funding for the reimbursement account. is necessary in order to receive the 112 benefits under Minn. Stat. § flexibility to provide unique and creative 299A.465. solutions to the rising costs of health care f) Employees who receive a police insurance for their employees. The and fire disability retirement League: benefit and accept another job that offers them group health benefits a) Opposes legislative action that should be required to pay for their undermines local flexibility to manage group health benefits with the city rising health care costs. should they decide to continue b) Encourages the Legislature to them. The Legislature must amend carefully examine the costs and Minn. Stat. § 299A.465 to reflect administrative impacts of any new, that employees are required to mandated insurance-related benefit inform the city when they become before imposing it upon city eligible for coverage under another employers. group plan and that failure to do c) Supports changes to Minn. Stat. so is grounds for termination from § 471.6161, subd. 5,that would clarify the benefits granted under Minn. the intent of the subdivision is to Stat. § 299A.465. address changes in cost vs. changes in g) The legislature should establish a value (e.g., changes in provider task force to study the long-term networks, changes in benefit levels costs of this program,including required by an incumbent insurance funding for an actuarial carrier, changes required for consultant, and make compliance with state and federal recommendations on changes to laws,including those needed to avoid make it more financially feasible incurring the federal excise tax known for Minnesota taxpayers. as the "Cadillac Tax". d) Supports changes to Minn. Stat. HR-12. Health Care Insurance § 471.61 so that the requirement for Programs cities to offer retiree coverage begins on the date the retiree and/or Issue: Cities, like other employers in the dependents become eligible for federal state, are struggling with the rising costs of Medicare coverage. health care insurance for their employees. In e) Supports a clarification to Minn. Stat addition, cities must cope with unfunded § 471.61 and to Minn. Stat. § 471.617 mandates imposed on them by the to explicitly alleviate a city's Legislature such as the requirement to pool responsibility to comply with group early retirees with active employees and the health benefits mandated by state law requirement to bargain over changes in the when the city's employees are covered "aggregate value" of benefits, even when the under a union plan authorized by city's contribution has not changed. federal statutes. f) Supports statutory authorization for Response: The League of Minnesota cities to collect up to a two percent Cities supports legislative efforts to administrative fee from retirees control health insurance costs while receiving post-retirement health maintaining quality health care services. insurance benefits. However, cities have differing local needs and circumstances and must retain the 113 g) Opposes any mandatory, centralized, to rebut. These types of benefit expansions statewide health insurance option for would further increase municipal workers' active or retired city employees. compensation costs. h) Supports changing Minn. Stat. § 62A.21 to place reasonable limits on Response:Legislative action is necessary health care continuation for former to address increasing workers' spouses, similar to the Federal compensation costs,particularly rising COBRA law. medical costs. The League of Minnesota Cities supports: HR-13. Workers' Compensation a) Use of the Workers Compensation Issue:Rising medical costs are an Advisory Council (WCAC) system to increasingly serious problem for all consider proposals for changes to the employers and insurers, and now represent workers' compensation law, and urges over half of all loss costs within the the WCAC and the Legislature to workers' compensation system. Medical approve medical cost containment costs will be a major driver of future reforms. workers' compensation premium increases. b) Filling an existing WCAC employer In addition, the 2013 legislature added post- vacancy with a public-sector employer traumatic stress disorder(PTSD) as a representative or adding a designated compensable injury and in 2014, a public-sector employer representative Minnesota Supreme Court decision found to the WCAC. that provisions in the Workers' c) Continuing the WCRA as the Compensation statute which allow workers mandatory workers' compensation compensation benefits for permanent and reinsurer for insurers and self- total disabilities to be offset by disability insurers in Minnesota and supports benefits and pension benefits such as Social modifying state statutes to treat PTSD Security does not apply to retirement events involving several affected benefits of the Public Employees Retirement parties as one occurrence for retention Association. In 2018, the Legislature purposes,thereby reducing the modified Minn. Stat. § 176.011 subd. 15, exposure of self-insured entities and which defines an occupational disease to add the statewide insurance pools. Such a a rebuttable presumption to a diagnosis of change would not have any effect on PTSD in certain public safety and related the benefit an individual employee personnel. In 2020, the legislature modified would receive. Minn. Stat. § 176.011, subd. 15 to d) Legislation that would disallow the temporarily add a diagnosis of COVID-19 "stacking" of PERA retirement for peace officers, firefighters,paramedics benefits and Workers Compensation and other defined employee classes as a benefits due to the fact that some presumed occupational disease covered by injured employees could receive total the workers' compensation system. The compensation from workers' Minnesota Legislature also regularly compensation and PERA retirement considered proposals to expand the heart, benefits that would be well above the lung and infectious disease presumptions for salary that they had been earning and public safety workers, and to make the the fact that the costs would ultimately presumptions more conclusive and difficult be passed on to cities and their taxpayers. 114 e) Extending the time limit on denials of The DATWA prohibits an employer from liability for PTSD injuries from the terminating an employee for a positive current 14 days days in order to allow controlled substance test without first diagnosis in accordance with the providing the employee a chance for requirements contained in the rehabilitation and treatment. This law Diagnostic and Statistical Manual of applies to probationary employees as well as Mental Disorders (DSM)which guides those who have completed probation. the diagnosis of PTSD under Minnesota Law (Minn. Stat. Currently, breathalyzer use and saliva swabs §176.011, subd. 15). are permitted for alcohol testing under f) Policies that provide opportunities for federal commercial driver testing laws employees diagnosed with PTSD to though Minnesota does not allow for the use receive treatment for PTSD that could of breathalyzers in testing. Use of result in continued employment with breathalyzers for employee alcohol testing is the local government. a less invasive, less expensive method. In g) State funding to assist with the addition, federal commercial driver testing potential extraordinary costs of the laws address a number of outcomes other COVID-19 workers' compensation than a positive test result, including but not occupational disease presumption limited to tampering with a sample, enacted in Session Laws 2020,Regular providing a substitute sample, providing a Session Chapter 72 sample that is not human urine,providing a sample that is not capable of being tested, The League opposes expansion of etc. State law is silent on these outcomes. workers' compensation and related health insurance benefits because of the Response: The League of Minnesota potential for dramatically increasing costs Cities supports the following changes to to cities. Specifically,the League opposes the DATWA: expansion of the heart,lung and infectious disease and PTSD a) Updates to reflect new issues, such as presumptions as well as any expansion of adding new definitions as needed to the law that would require payment of reflect current practices; health insurance premiums. b) Clarification that a positive controlled HR-14. Drug and Alcohol Testing substance test during probation does not require the employer to provide in the Workplace an employee who has not completed Issue:Employer testing of job applicants is probation a chance for rehabilitation governed by Minn. Stat. § 181.950— and treatment; and 181.957 and is known as the Drug and c) Permitting the use of breathalyzers Alcohol Testing in the Workplace Act and saliva swabs as acceptable (DATWA). It applies to all employers with technology for determining alcohol one or more employees, including cities. use. The DATWA has not been amended for HR-15. Veterans Preference many years to reflect various and significant changes in drug-testing technology nor Issue: Cities have a long history of policy changes at the federal level. recruiting and hiring veterans as they are a 115 natural fit in city government. Across the established civil service commission is state, cities are partners in working with and inefficient. ensuring veterans have a variety of opportunities afforded to them given their Response: The League of Minnesota sacrifice and service. The purpose of the Cities recognizes the important Minnesota Veteran's Preference Act(VPA) contributions veterans have made and is to facilitate the transition of veterans from supports giving veterans limited the military to civilian life and to help preference in employment. To strengthen compensate veterans for their sacrifices of and improve the VPA, the legislature health and time to the community, state and should: nation. The VPA grants veterans limited preference over nonveterans in hiring and a) Allow cities to place veterans on promotion for most state and local probationary periods upon promotion government employment to recognize the as they do with other employees; and training and experience they received as a b) Restore the language in Minn. Stat. § result of serving in the military. It also 197.46 requiring a hearing to be held provides local government employees who before a local civil service commission are veterans some protection against unfair where one exists. demotions and dismissals. These preferences and protections are commonly referred to as HR-16. Military Leave "veteran's preference" and are codified in Reimbursement Minn. Stat. §§ 43A.11, 197.455, 197.46, 197.48, and 197.481. Issue:Minn. Stat. § 192.26 subd. 1, requires local units of government to provide 15 days Once a veteran has completed an initial of compensation per year to employees who probationary period upon hire, they cannot are members of the military for military be removed from their position or leave. State laws give preference to hiring employment, except for incompetency or veterans for public sector jobs, and, citizen misconduct shown after a properly noticed soldiers are a natural fit to also serve as hearing. Currently, a veteran can only be public safety personnel. As such, many placed on probation upon hire but not public safety personnel are often also following a promotion. It is common members of the military and are required to practice to place employees on probation conduct training and military duties following employee promotion making this throughout the year. restriction inconsistent with current practice and procedure. In addition to providing compensation for mandatory military leave, cities must also Termination hearings are held before the ensure that these temporary vacancies are local civil service commission or before an adequately filled by public safety personnel arbitrator and Minn. Stat. § 197.46 allows a whose training and qualifications are unique veteran to choose a hearing before the local to providing public safety. This can result in civil service commission, or an arbitrator. added overtime costs and may impact public Members of civil service commissions are safety service levels. chosen for their expertise and experience with employment law. Hiring an arbitrator Government employers honor and recognize for a hearing instead of utilizing an the importance of ensuring members of the military are able to fulfill their duties and 116 participate in mandatory training, while also that choose to use the BCA to run the aiming to ensure that public safety service in criminal history employment background their community is efficient, seamless, and check for them,the fee should be the cost-effective. In response to this issue, there same as that charged to non-profit have been recent legislative proposals to organizations. reimburse local units of government for military leave paid to public safety HR-18. Tele-health Exams personnel. Issue: Technology improvements are Response: The League of Minnesota creating new ways to approach many city Cities supports state funding to ensure functions. Specifically, the increased that local units of government can acceptance of the use of tele-health (audio maintain quality and cost-effective public and video, web-based) exams creates an safety services in their communities and opportunity for cities to access and use for their taxpayers while also offering full psychologists with specific expertise in support for employees who are members public safety as part of the hiring process for of the military. Such state funding could police officers. However, the Peace Officers include reimbursement of costs incurred Standards and Training (POST) Board has to local units of government related to adopted a position prohibiting the use of compensating personnel on military leave tele-health exams for the required as well as reimbursement for costs related psychological oral interview/evaluation to ensuring these temporary vacancies are prior to hiring. adequately filled. Response: The League of Minnesota HR-17. Background Checks Cities supports the use of tele-health (audio and video,web-based) exams to Issue: Current law allows criminal justice meet the requirements of the POST background checks on active employees (as Board for a psychological oral opposed to applicants for employment) only interview/evaluation prior to hiring a when such employees are firefighters or police officer candidate. work with children. The law governing criminal history background checks on Data Practices police and other city employees does not specifically allow such checks on active DP-1. Data Practices Compliance employees. Cities need the ability to be able Costs to conduct criminal history background checks on active employees as well as Issue: The purpose of the Minnesota applicants for employment using the BCA or Government Data Practices Act(MGDPA) the BCA database access. is to protect personal information from indiscriminate disclosure while balancing Response: Cities should be able to the right of the public to know what the conduct,but not be required to conduct, government is doing. The Act also attempts criminal history background checks on to balance these rights within a context of active employees using the BCA database. effective government operation. The League The laws governing background checks of Minnesota Cities supports the public for all city employees should be amended policy behind the MGDPA while to allow for this practice. For those cities acknowledging that compliance with the law 117 imposes costs on local taxpayers. Smaller Furthermore, in some situations, as with cities struggle with limited staff and overly broad data requests related to resources while larger cities struggle with "applicant" lists, staff time and costs are larger complex databases. The MGDPA significantly increased and not recoverable must balance the right of citizens to access for very limited public benefit. The MGDPA public data with the cost to municipalities of also limits the ability of cities to be complying with certain types of data reimbursed for responding to requests. requests. Cities are limited to charging only 25-cents In 2014, the Legislature imposed additional per page for copies of police motor vehicle security requirements on political incident reports, which does not cover the subdivisions in an attempt to prevent city cost for copying, while the unauthorized individuals from accessing Commissioner of Public Safety is exempt private data. Adequate security measures are from this restrictionthereby permitting the important, but they make compliance with Department of Public Safety to continue to the MGDPA more difficult and costly. charge $5 for incident reports that cities are Although the Legislature has made required to submit to the department. compliance with the MGDPA a priority, funding for the Data Practices Office of the Response:As the cost of complying with Department of Administration, the the MGDPA increases,the League department charged with overseeing the supports: MGDPA, does not reflect the increased need for local government assistance. a) Providing additional state funding to assist political subdivisions with Cities continue to receive repetitive, overly meeting the increasing complexity of broad and far-reaching data requests that managing government data. require significant staff time to locate b) Providing state funding for statewide government records, redact private data or data practices training. data unrelated to the request, and assemble c) Allowing political subdivisions to documents to be provided in order to charge for the staff time that is comply with requirements to provide access required to comply with wide-ranging to public government data. Cities are data requests regardless of whether experiencing significant increases in wide- copies of the data are requested or ranging data requests, often utilizing specific allowing political subdivisions to word searches through multiple databases. charge for actual costs for collection of "Word search"requests typically result in a data when the requestor makes his or voluminous quantity of data that must be her own copy of the data by taking a reviewed and redacted, with significant staff photo,bringing a copy device, etc. cost. Because word searches retrieve even d) Providing a mechanism that would incidental references to the searched term, permit cities to challenge whether a the search results often contain a significant data request is reasonable and made volume of data that has little informational in good faith. value. If the requestor does not request e) Creating and funding an copies, the search costs cannot be recovered ombudsperson position in the Data —even though the requestor dictated the Practices Office to determine specifics of the search. reasonableness and proportionality of data practices requests. 118 f) Providing funding and authority to retention schedule, and maintain and destroy the Data Practices Office to engage in official records according to this schedule. the rulemaking process to establish There are rigorous requirements for any standards and procedures related to changes to a city's records retention requests and responses to data schedule, including getting approval from practices requests that impose the statutorily-created Records Disposition significant burdens on government Panel, which strikes an appropriate balance entities. between the government entity's decision- g) Amending the MGDPA to limit what making role in determining retention and is considered public applicant data to disposition of official records with the better balance the value of public data public's right to know the government with the cost related to data practices entity's official activities. compliance. h) Allowing political subdivisions to Response:As the cost of complying with charge the same amount for copies of the records management laws increases, motor vehicle incident reports issued the League supports providing additional by local police and fire departments as state funding to assist political the commissioner of public safety. subdivisions with meeting the increasing complexity of managing government The League of Minnesota Cities opposes: records. a) Further increasing the maximum The League of Minnesota Cities opposes exemplary damages that courts may changing the current record management impose against government entities, requirements and statutory definitions. If including cities, found to have violated changes are needed, subject matter the MGDPA; further increasing the experts should make recommendations maximum civil penalty that may be through the records retention schedule imposed when a court order is issued process. to compel a government entity to comply with MGDPA; or any DP-3. Updating the Minnesota statutory change that would make it a Government Data Practices Act mandatory civil penalty to compel compliance under the MGDPA. Issue: The Minnesota Government Data Practices Act(MGDPA)was first enacted in b) Repealing of the administrative 1979. Almost 40 years later, times have remedies provisions adopted by the changed dramatically. In particular, there 2010 Legislature to address disputes has been exponential change in technology. regarding MGDPA compliance issues. In 1979, cities were largely maintaining data in paper form, computers had just become DP-2. Records Retention viable for home users, word processing had Compliance Costs just become a reality, the first point-and- shoot, autofocus camera came on the Issue: The Official Records Act requires market, and the internet was still about a government entities to "make and preserve decade on the horizon. all records necessary to a full and accurate knowledge of their official activities." In While the MGDPA was originally drafted to accordance, cities must establish a records be future thinking by contemplating the 119 various forms data could be held—including should make changes based on the the concept of storage media—the recommendations from subject matter legislators of the time could not have experts from all levels of government and imagined where technology would be today. interested stakeholders,including For example, the originally-drafted MGDPA recommendations on what constitutes made reference to photostatic, reasonable data practices request and microphotographic, or microfilmed records. when a data practices request is unduly Minn. Stat. § 13.03, subd. 1. The current law burdensome. still refers to these same mediums of data, despite few cities maintaining data in this DP-4. Maintaining Government manner. Data in Large Databases Technology has exploded, and the type of Issue: The Minnesota Department of data collected by this new technology has Administration Advisory Opinion 10-016 multiplied. In our current reality, the public issued in June 2010 maintains that the and government have been frustrated by Minnesota Government Data Practices Act how best to access government data. In (MGDPA)requires cities to keep records Webster v. Hennepin County, 910 N.W. 2d containing public government data so that 420 (Minn. 2018), the County was asked to they can be easily accessible and convenient conduct a computer-aided search of all its to use, regardless of how they are kept. email accounts over multiple years for 20 Cities maintain that the application of this separate search terms related to biometrics advisory opinion to large databases in which and facial recognition. The Minnesota records are kept in an electronic format Supreme Court found that the County failed forces cities to risk the daily threat of to establish procedures to ensure appropriate allegations of noncompliance or leaves local and prompt compliance with data requests government officials confused regarding but did not find that the County failed to how to apply the requirement for access to keep its records in an arrangement and data in circumstances where information condition to make them easily accessible for technology is utilized to facilitate the convenient use. The Court also did not management and organization of records address if a term search was a valid data and information which often includes public, practices request or if a request could be private, and nonpublic data within individual unduly burdensome. The lack of direction data sets. from the Court on these issues leaves a void. In addition, large databases today contain There are also other advances in technology different forms of data, including video, that are not comprehensively addressed by audio, images, and social media. In the MGDPA. While the Legislature has responding to data practices requests, attempted to address technological responsive data could be stored in multiple advancements as they come, it has been in data bases. Further, with the advent of piecemeal ways. cloud-based information systems provided by the private sector, newer databases are Response: The Legislature should update not typically designed to be controlled by the MGDPA to comprehensively address cities to easily separate public from non- technological changes since the Act was public data. first enacted. Because the MGDPA is a complicated area of law,the Legislature 120 Response: The state of current harm exists. As a result, school district technology requires cities to maintain officials have interpreted the statute in large databases that are designed to conjunction with the restrictions in FERPA provide secure data storage and to require that the determination be made maintenance. Those databases are solely by school officials. already burdensome and expensive for cities to maintain,but are not available in Local police officials are often frustrated in a form in which public and private data their efforts to investigate allegations of can be easily separated. Requiring cities criminal or other illegal activity when school to design such databases to accommodate officials refuse, under Minn. Stat. § 13.32, extensive data requests under MGDPA is subd. 3(1), and FERPA, to provide both financially and technologically information to follow up such complaints or challenging to achieve. to assist local police in solving crimes that have already taken place. The Legislature should address the growing and costly impact on cities of School boards are responsible to have providing access to specific public data policies in place that require school officials housed in large electronic databases. to report a student who possesses an Cities also require discretion in unlawful firearm to law enforcement or the determining that the release of certain juvenile justice system. But schools are not incident data could identify an individual allowed to release the name of a student in whose identity must be protected. dangerous weapon reports involving use or possession of such weapons that are made to DP-5. Sharing of Student Data with the Minnesota Department of Education. Local Law Enforcement in Emergencies Response: Minn. Stat. § 13.32 should be clarified to allow local law enforcement Issue:Minn. Stat. § 13.32, subd. 3(1), agencies to work with school officials to defines education data as private data that jointly make the determination that an must not be disclosed except to the juvenile emergency or risk of harm exists in order justice system in cases where information to enable police enforcement actions to be about the behavior of a student who poses a taken in a timely manner. risk of harm is reasonably necessary to DP-6. Disclosure Of Victim Data protect the health or safety of the student or other individuals. In addition, the federal Issue:Under the Minnesota Government Family Education Rights &Privacy Act Data Practices Act(MGDPA), the name and (FERPA)bars schools from disclosing address of a victim or casualty of an information on student educational records accident or incident to which a law that contains personally identifiable enforcement agency responds is public information without consent of a parent or government data. In addition, the name and eligible student, with only limited location of the health care facility to which exceptions. victims or casualties are taken is public Minn. Stat. § 13.32 does not adequately government data. The MGDPA allows a define who is responsible for making the victim or witness to prevent the disclosure determination that an emergency or risk of of public data unless the law enforcement agency determines that revealing the identity 121 will not threaten the victim or witness's the data subject to appeal that determination personal safety or property. However, through a contested case proceeding under victims and their families can be traumatized the Administrative Procedures Act(APA). by the events that caused their injuries, even when their safety or property is not In the human resources context, a threatened. Publicly disclosing their performance evaluation is a tool used to identities and the location where they are document and evaluate employee job receiving medical care places a burden on performance. Performance evaluations are families and victims who may be questioned not discipline; however, some jurisdictions by reporters, solicited by lawyers, and and some union contracts have appeal contacted by other members of the processes to challenge a performance community. While there are legitimate evaluation. Performance evaluations are public policy reasons to make this normally conducted once a year. information public, the MGDPA provides no discretion for city officials and law The Minnesota Supreme Court has held that enforcement to temporarily withhold victim a public employee could use the MGDPA to data when releasing it is not in the best challenge the accuracy of certain interest of the victims. This not only makes information contained in the employee's the initial period of recovery more difficult performance evaluation. Schwanke v. Minn. for victims, but erodes the trust between Dept. ofAdmin., 851 N.W. 2d 591 (Minn. victims and state and local government. 2014). While the Court held that "dissatisfaction with a subjective judgment Response: The Legislature should amend or opinion cannot support a challenge under Minn. Stat. § 13.82 to allow law the [MGDPA]," a data subject can still enforcement agencies to temporarily challenge data that supports the subjective withhold the disclosure of data that judgment. There is currently no limitation identifies victims and casualties and the on when a performance evaluation challenge medical facilities to which they are taken may be brought. Often there is no retention if the agency reasonably determines that period for the underlying data because it is access to the data would cause emotional rarely an official record. Furthermore, the harm to the individual or otherwise more time that passes, the less likely those impede the individual's recovery. The with the knowledge of a given performance Legislature should also amend Minn. evaluation may be still employed by the city. Stat. 13.82 to clearly and permanently It is to everyone's benefit to have the prohibit the disclosure of traffic accident challenge to accuracy of data conducted as victim identity, similar to the protections soon as possible. for crime victims. Under Schwanke, an invalid challenge to a DP-7. Challenges to the Accuracy of subjective opinion can no longer be Data dismissed by the Department of Administration; it can only be dismissed in a Issue: The Minnesota Government Data contested-case proceeding. In even a Practices Act(MGDPA) allows the subject frivolous challenge the data subject will of government data to challenge the have the right to submit evidence and call accuracy or completeness of data maintained witnesses at taxpayer expense. by the government entity. If the government entity denies the challenge, the Act allows 122 This right of review is in addition to any evidence when investigating crimes and union grievance process, and can be prosecuting criminals, and strengthened trust exercised by an employee before or after of citizens in law enforcement by increasing such a grievance is undertaken. This process the accountability between peace officers can result in conflicting decisions and has and the public. Different than other kinds of the potential to create a heavy burden on all data, body camera data use involves the levels of government, and impose significant unique complexities of the sensitive nature costs on taxpayers. in its use in private homes as well as the sheer volume of data in daily use. In 2016, Response:In light of the Schwanke the Legislature contemplated all of these decision,the Legislature should modify issues and passed compromise legislation the data challenge provision of Minn. regulating use of body cameras, Stat. § 13.04, subd. 4,to balance the rights classification of body camera data, retention of data subjects to challenge the accuracy period for body camera data, release of body and completeness of data with the camera data, audit requirements, and written administrative and financial burdens on policy requirements. local governments and taxpayers. Response: Cities and/or law enforcement DP-8. Law Enforcement agencies should be allowed to decide Technologies whether to utilize technology and be given the flexibility to decide how they are used Issue: To aid law enforcement in work, law in the field. The League supports the enforcement agencies need the flexibility to continued use of License Plate Readers effectively use all available tools, including under the terms of the 2015 legislation, technology, in a manner that balances and opposes any further restrictions on privacy interests of citizens, transparency of their use or any reduction in the current their work, and costs related to these 60-day retention period. technologies. The Legislature has balanced these concerns in the recent License Plate The League supports the continued use of Readers law and the Police-Worn Body Police-Worn Body Cameras under the Camera law. terms of the 2016 legislation, and opposes any further restrictions on their use, data License Plate Readers (LPRs) are an classification, retention period, or written important tool that assist law enforcement policy requirements. agencies in locating wanted individuals, recover stolen vehicles, and many other DP-9. Open Meeting Law types of investigations. Nevertheless, the use of this technology raises legitimate privacy Issue: The Open Meeting Laws allows concerns. In 2015, the Legislature passed certain meetings to be held using interactive compromise legislation regulating the use of television provided that: all members of the LPRs, the classification of LPR data, and the body can hear and see one another and all retention period for LPR data that struck a discussion and testimony; members of the fair balance between the need for robust law public can see and hear all discussion, enforcement and individual privacy rights. testimony, and votes; at least one member of the body is physically present at the regular Police-worn body cameras (or portable meeting location; and each remote location recording systems)provide invaluable is open and accessible to the public. The 123 Minnesota Department of Administration expect that their elected officials will issued an advisory opinion (13-009)that provide them with information via the allowed a city's use of Skype to conduct a internet and social media sites. This remote meeting under Minn. Stat. § 13.02, expectation is not always consistent with subd. 1. A"common sense" approach was laws that require citizens to attend a meeting applied to technology questions, which in order to participate in local government. recognizes the difficulty cities must face The use of social media by elected officials when interpreting the Open Meeting Law in raises issues of compliance with laws that light of ever-changing technology. were drafted before social media existed, and increases the likelihood of unintentional The Open Meeting Law and other statutes violations. In recognition of these issues, also allows certain state bodies to conduct the 2014 Legislature created a social media meetings via telephone and other electronic exemption to the Open Meeting Law, Minn. means,pursuant to Minn. Stat. § 13D.015. Stat. § 13D.065, which states that the use of This useful tool should be expanded to local social media by members of a public body government to assure that members can does not violate the law so long as the use is attend meetings remotely in this ever- limited to exchanges with all members of evolving virtual world using current and the general public. future technology. Response: The League of Minnesota Technology has outpaced the Open Meeting Cities supports the Department of Law. Recent city response to COVID-19 has Administration's interpretation of the illustrated that remote participation for interactive television provision of the meetings can allow for meaningful Open Meeting Law, and encourages the interaction among the city council and with Legislature to authorize cities to conduct the public. While the legislature recently official meetings by telephone or other changed the law to allow for greater electronic means, as allowed by Minn. participation by interactive television when Stat. § 13D.015, a state of emergency has been declared, this change was for a limited amount of time. It The League supports the 2014 change to is unknown how long the effects of this the Open Meeting Law,which grants health pandemic will last beyond any cities and elected officials reasonable declared state of emergency. Cities are in flexibility to use social media to need of greater flexibility now to utilize communicate with citizens while technology for meetings to protect the health maintaining the protections of the Open of elected officials, city staff, and the public. Meeting Law. Cities also need to keep pace with the virtual world by having discretion to use remote The League opposes any change to the technology in the future, similar to the open meeting law that would expand the current discretion of the State of Minnesota. award of attorney's fees to unintentional violations. The use of Facebook, Twitter, and other social media creates opportunities for cities DP-10. Exceptions to the Open to reach more constituents and to share more Meeting Law information faster than ever before. Social media creates new opportunities for citizen Issue: The purpose of the Open Meeting participation, and citizens increasingly Law generally requires that all meetings of 124 public bodies must be open to the public. have concerns about discussing in a public This presumption of openness serves three meeting, and preserves the integrity of the vital purposes: it prohibits actions from interview process of subsequent candidates. being taken at secret meetings, to assure the public's right to be fully informed, and to The second concern with existing law is the afford the public an opportunity to present inability for public bodies to conduct views to the public body. The League of strategic negotiations. Current law allows Minnesota Cities supports the Open Meeting the public body to close a meeting to discuss Law, and recognizes the important role it the purchase or sale of property and labor plays in maintaining the public trust and the negotiations but does not allow the public accountability of elected officials. body to close a meeting to discuss negotiation strategies for an agreement with The Open Meeting Law must, however, private parties, non-profit organizations, balance the need for public information and and/or public entities. The ability for public the need to protect privacy rights and certain bodies to close meetings in these situations negotiation strategies to protect the use of provides public bodies the opportunity to public resources. Currently, there are seven form strategies in the best financial interest exceptions to the open meeting laws that of the community, which is consistent with authorize the closure of meeting to the the importance of negotiation regarding public. Under these exceptions, some purchase or sale of property and labor meetings may be closed at the discretion of contracts. the governing body and some must be closed. Three challenges exist with current The third concern is how to include city law. councilmembers wanting to remotely participate in city council meetings as may The first concern is the hiring process for be needed. While cities want elected management level positions. While existing officials to participate in city decision- law allows a governing body to close a making to their fullest extent, it is also meeting to evaluate the performance of an important to protect the public's right to see individual subject to its authority, the statute how government makes decisions. Currently doesn't grant the same level of privacy for under the interactive television exception to the city council and prospective applicants. the Open Meeting Law in Minn. Stat. § The statute should allow a governing body 13D.02, subd. 1, city councilmembers can to close a meeting to interview applicants remotely participate in city council meetings for employment if there is a quorum present; if they meet certain requirements: (1) all and, to allow a governing body to close a councilmembers, wherever their physical meeting to discuss the terms of an location, can hear and see one another and employment agreement to offer to a can hear and see all discussion and candidate to whom a job offer has been testimony presented; (2) members of the extended. This would be consistent with the public present at the regular meeting existing authority for the governing body to location of the body can hear and see all close a meeting to discuss labor negotiations discussion and testimony and all votes of the strategy. Allowing a closed meeting so that a members of the body; (3) at least one council can discuss the results of an member of the city council is physically interview process for a management-level present at the regular meeting location; and position will allow council members to (4) each location at which a city express opinions or ask questions they may councilmember is present is open and 125 accessible to the public. The current law parties, non-profit organizations, allows an exemption from this requirement and/or public entities. if a city councilmember(1) is in the military c) To allow city councilmembers to and deployed and (2) has been medically participate in city council meetings advised not to be in a public place for without making their remote location medical reasons when a state of emergency open and accessible to the public as has been declared. On occasion, city otherwise required under Minn. Stat. councilmembers want to remotely attend § 13D.02, subd. 1. city council meetings, but there is no meaningful reason to make their location Such closed meetings should follow the "open and accessible to the public" as city same or similar procedures for councilmembers made their remote location conducting closed meetings currently "open and accessible"but no city resident required under the Open Meeting Law. shows up at the remote location. COVID-19 has taught us that remote participation can Federal Employment Law allow for meaningful remote participation and public interaction. However, a city FED-1. Consolidated Omnibus councilmember may want to fulfill their Budget Reconciliation Act responsibility despite medical reasons (COBRA) outside of a state of emergency, travel due to work, or personal travel. Removing this last Issue: The federal Consolidated Omnibus requirement still preserves the public's Budget Reconciliation Act(COBRA) law, ability to hear and see all discussion, which requires employers to offer continued testimony, and voting by all participating health and dental insurance group benefits councilmembers while allowing willing after an employee terminates, has been councilmembers to participate in city interpreted to apply to Employee Assistance decision-making. Programs (EAPs). The application of COBRA benefits to these programs results Response: The Legislature should amend in unlikely and impractical outcomes. the Open Meeting Law: Response: Congress should clarify the a) To allow a governing body or a intended benefits to which COBRA law committee created by a governing should apply, excluding EAP programs. body to close a meeting to interview candidates for management-level FED-2. Flexible Spending Accounts positions such as city manager, administrator, clerk-treasurer,city Issue:Health care costs are rising attorney, superintendent, or dramatically and employees need financial department head, and to close a relief. Flexible spending accounts provide meeting to evaluate and discuss the some relief, but the current"use it or lose it" candidates, and discuss salary and provision for medical spending discourages benefit negotiations. employees from participating in this b) To allow a governing body to close a program. In addition, the $5000 annual meeting to discuss negotiation maximum limit on dependent care accounts strategies for proposed contracts has not increased substantially since the and/or agreements with private program's inception in 1986 and childcare costs continue to rise significantly. 126 According to 2012 data from the Pew beneficiaries other than spouses and Research Center, Minnesota has one of the dependents. Such beneficiaries should be highest childcare costs in the country with able to, at a minimum, receive an average cost of$12,000 to $15,000 for reimbursement for their medical expenses infant care per year. from the inherited account. Response: The League of Minnesota FED-4. Federal Public Safety Cities supports legislation that would Collective Bargaining Bill allow employees to roll unused funds over to the next plan year, or into a tax- Issue: Congress is considering a bill that qualified retirement plan, or a 457 plan. would require all states to establish The League of Minnesota Cities also collective bargaining procedures for all supports an increase in the annual public safety employees. The bill directs the maximum allowed for dependent care Federal Labor Relations Authority (FLRA) accounts,with a cost of living inflationary to determine, state by state, whether it meets increase each year after the initial the bill's requirements with regard to adjustment. collective bargaining rights for public safety employees. While it appears Minnesota is FED-3. IRS Regulations on Death likely to pass the tests set out by the bill, Benefits federal public sector lobbyists have expressed serious concern that the bill is Issue: Current IRS regulations do not allow very much open to interpretation. In any type of death benefit to be included in a addition, the bill directs the FLRA to health reimbursement arrangement(HRA) "consider and give weight, to the maximum or tax-free, account-based group health extent practicable, to the opinion of affected plans. If a participant of the HRA or employee organizations." account-based group health plan dies, they cannot leave the remaining funds to a Response: The League of Minnesota designated beneficiary unless the beneficiary Cities opposes the federal collective is a spouse or dependent child. If the bargaining bill for public sector employee does not have a spouse or employees. Public sector collective dependent child, the funds are typically bargaining should be left to the redistributed among plan participants. A determination of each state. death benefit provision is an attractive feature for many employee groups. In 2008, FED-5. Federal Health Care Section 105 of the Internal Revenue Code Reform was amended, with a further amendment in 2015, to include limited exceptions to this Issue: Certain provisions of the Patient general rule but not all city plans meet the Protection and Affordable Care Act requirements of these limited exceptions. (commonly referred to as the federal health care reform law or Affordable Care Act Response: Congress should amend (ACA)) are problematic for cities. These Section 105 of the Internal Revenue Code issues range from administratively difficult to allow all HRAs and account-based to very costly. Tracking employee hours, health plans for both active employees particularly hours of seasonal and temporary and retirees to include a provision that employees and council members, is allows the employee to designate 127 burdensome and will require significant FED-6. Amended Internal Revenue administrative time and effort. Because most Code Regarding 403(b) Retirement of these employees will not qualify for Plans coverage under the ACA, the effort does not result in a worthwhile outcome. There are Issue: Section 403(b)(1)(A)(ii) of the also situations where employees who are Internal Revenue Code allows an employer currently working more than 30 hours per that is a State, a political subdivision of a week in a city will now be eligible for health State, or an agency or instrumentality of a care coverage by that city, which will drive State or a political subdivision of a State to up city costs significantly,particularly for establish a 403(b)retirement plan for cities using the "duty crew" concept at fire employees who perform services for stations to ensure adequate daytime educational organizations as described in response. Finally, there are provisions which Section 170(b)(1)(A)(ii) of the Internal require the city to offer coverage to full-time Revenue Code. This provision of the students who are already covered by their Internal Revenue Code allows employees to parents' insurance and do not need the defer substantially more income for coverage through the city, which results in retirement savings than their city wasted effort. Furthermore, cities that government employee counterparts. While provide health insurance coverage to their government employees who do not perform employees should not be subject to the services for an educational organization may federal excise or so-called Cadillac Tax participant in a 457(b) deferred when effective in 2022, which will result in compensation plan, they may not participate substantial costs to Minnesota taxpayers. in a 403(b)retirement plan. Government employees who perform services for an Response: The League of Minnesota educational organization are able to Cities supports the intent of the ACA to participate in both a 403(b)plan and a provide affordable health care coverage 457(b) deferred compensation to all Minnesota residents. However, plan. Furthermore, as a result of the prior to implementation, Congress amendment to Section 457(c) of the Internal should: Revenue Code by the Economic Growth and Tax Relief Reconciliation Act of 2001, a) Exempt employees under age 26 who deferrals to a 457(b)plan are not are covered by their parents' coordinated with elective deferrals made to a insurance; 403(b)plan for purposes of complying with b) Exempt(from coverage requirements) the limit on pre-tax contributions to either employees who work in recreational plan. Both employee groups serve the public facilities and programs owned and and should be treated similarly under the operated by governmental entities; Internal Revenue Code for purposes of tax- c) Exempt elected officials from being deferred retirement savings plans." counted as "employees" for the purposes of the ACA; and Response: Congress should amend Revise the provisions of the federal Section 403(b)(1)(A)(ii) of the Internal excise "Cadillac Tax" so that it does Revenue Code to allow an employer that not penalize employers and instead is a State, a political subdivision of a provides incentives to strengthen State, or an agency or instrumentality of a wellness and disease prevention effort. State or political subdivision to establish a 128 403(b)plan for all of its employees, retroactive period of Medicare coverage. regardless of whether they perform This rule is confusing to employees, services for an educational organization. employers, and benefit administrators and may lead to unintended and unexpected tax FED-7. Amended Internal Revenue consequences for employees and employers Code Regarding Health Savings who may not be aware at the time an HSA Account Eligibility and Medicare contribution is made that the monthly Enrollment limitation for that month will be zero if the employee applies for Medicare within the Issue: Section 223(b)(7) of the Internal following six months and the coverage is Revenue Code provides that the monthly effective retroactively under this rule. limitation on contributions to a health Furthermore, if an employer provides savings account(HSA) is zero starting with contributions to an HSA as part of its benefit the first month in which an individual is package, then the rule may limit the benefits entitled to Medicare benefits. A person an active employee can receive from their becomes entitled to Medicare benefits when employer. their Medicare coverage becomes effective. Response: Congress should amend In many cases, Medicare coverage is Section 223(b)(7) of the Internal Revenue effective on a retroactive basis. Specifically, Code to provide that the limitation on when an individual is required to submit an contributions to a health savings account application for Medicare coverage, the for any month with respect to any Medicare coverage will be effective individual shall be zero for each month retroactively up to six months before the beginning with the later of(i) the first month in which the application is filed month in which such individual is entitled (depending on the date on which the to benefits under title XVIII of the Social individual first become eligible for Medicare Security Act or (ii) the month in which coverage) as described in 42 CFR §406.6(d). such individual submits a valid The IRS has indicated that the monthly application for benefits under title XVIII limitation on HSA contributions included in of the Social Security Act. Section 223(b)(7) applies during any 129 IMPROVING FISCAL FUTURES FF-1. State-Local Fiscal Relations limits do not facilitate prudent financial planning and decisions. In addition, Issue: Since the 1970s, services provided by during a past state government shutdown Minnesota cities have been largely funded the Department of Revenue indicated that through a combination of property taxes, despite the standing LGA appropriation, state aids, and state property tax relief the shutdown of many state government programs. This system of municipal finance operations would prevent the distribution has evolved to ensure that municipal of the LGA. services can be funded without excessive Adequacy. The revenue sources available local tax burdens. to cities and the state must raise adequate Over the past decade the state-local funds to meet city needs,to fund partnership has vacillated with the state mandates, and to maintain Minnesota's budget, challenging the ability of city long-term competitiveness. officials to plan for the future fiscal needs of Flexibility. As cities become increasingly their communities. diverse in their characteristics and as Response: The League of Minnesota existing aid and credit programs have Cities supports a strong state-local fiscal eroded, a "one-size-fits-all" system that partnership. The state-local fiscal system, limits all cities to the property tax as the and any future modifications, should be major, non-state aid revenue source is consistent with the following principles: increasingly unworkable. Some cities have sufficient property tax base to Accountability. Cities believe a viable sustain an adequate service level,but partnership with the state requires cities many do not. Cities should have greater and the state to communicate effectively access to other tax and revenue sources with each other and with the public about than currently permitted. their roles and responsibilities. Cities and Equity. All citizens should receive the state must also exercise sound financial stewardship,including adequate levels of municipal services at maximizing efficiencies in service delivery relatively similar levels of taxation. This and other means of cost containment means that the state should provide financial assistance to cities that have high costs,including costs related to Certainty. Cities need to have more overburden created by non-resident users certainty and predictability in all of their of city services, low fiscal capacity, or available revenue sources,including the both. State financial assistance should property tax,the amount of funding they also reduce tax burden disparities among receive from local government aid and communities and between cities and similar programs and from other sources surrounding areas. of revenue. The past practice of retroactive adjustments to local government aid (LGA) and similar programs, unallotments of the appropriation and the imposition of levy 130 FF-2. Economic Contributions by Response: To increase the stability of the Cities state budget and avoid or reduce the impact of future state budget deficits, the Issue: Cities provide and maintain the Legislature: physical infrastructure as well as the social and economic infrastructure necessary to a) Must consider all budget stabilizing support a large share of the state's economic options,including revenue increases, activity. In addition, cities play a major role with a particular focus on changes in statewide economic development that improve the stability of the state's activities that assist businesses with revenue stream; expansion and job creation. The importance b) Must not further reduce funding for of cities to the overall vitality of the state's property tax relief programs to cities economy is frequently overlooked in state and taxpayers; policy discussions. c) Must not accelerate the remittance of sales tax collections by retailers Response: To provide lawmakers with including municipal liquor operations, information on the economic activity and should make steps to reverse past occurring within cities, the Department of accelerations; Revenue should annually collect and d) Must consider the aggregate impact compile information on major state tax on Minnesota taxpayers of previous collections within each city,in addition to budget cuts and tax increases; county and regional reports. e) Must reinstate estimates of inflationary increases to expenditure FF-3. State Budget Stability estimates; f) Should continue to build at a Issue:Legislative actions to address past minimum, a five-percent budget state budget deficits have included reserve and should establish state permanent reductions in funding to local budget stability as a state priority.; units of government for programs such as g) Should modify the unallotment statute local government aid as well as the full to place a reasonable statutory limit elimination of programs such as the market on the percentage and timing of the value homestead credit. In addition, the state's budget that can be unallotted Legislature has frequently relied on short- during a biennium without legislative term solutions that have only shifted a large approval; and share of the deficit problem into the next h) Must emphasize long-term budget biennium without permanently addressing solutions and budget stability and the the state budget problems. continuation of both state and local government operations. The legislature has taken steps to reduce i) The League of Minnesota Cities state budget volatility. As required under supports the principle of state law, 33 percent of any state general representative democracy and opposes fund budget surplus identified in the limiting the Legislature's flexibility in November state budget forecast must be making financial decisions through directed to the state budget reserve until the new Constitutional amendments. account reaches a targeted level. 131 FF-4. Funding Local Government Response: In order to reduce pressure on Aid the property tax, and to equalize property tax bases,the League of Minnesota Cities Issue:Local government aid(LGA) is an continues to support the existing LGA important component in the state's property formula as the appropriate mechanism to tax relief system, and a critical tool to help distribute LGA resources and opposes equalize tax base to ensure needs for public artificial limits on any city or group of services can be met. To avoid undue cities. In addition,the League supports pressure on the property tax, funding for regular increases in the LGA LGA must keep pace with inflationary appropriation as well as the restoration of pressures. For 2021, the total unmet formula the annual inflation adjustment to the need (the difference between need and LGA program to move toward funding ability to raise revenue) is $776.4 million, the total unmet need of all cities. The leaving the current appropriation $212.0 League also supports a permanent million below the total unmet need. acceleration of the annual LGA payment schedule to assist cities with cash flow During the 2017-18 biennium, several bills needs. The League opposes targeted were introduced that would have, for reductions to specific cities as well as example, created offsets to a city's LGA reductions or offsets for local policy or distribution if the city imposed a local sales expenditure decisions. tax, spent funds for activities related to lobbying or a World's Fair, or would have The legislature should avoid creating reduced or eliminated LGA if the city side-pots or special appropriations enacted ordinances to ban plastic bags, through the LGA (Minn. Stat. ch. 477A) impose certain local labor laws, ordinances, program. If special circumstances such as or policies that restrict city employees from a natural disaster warrant additional enforcing immigration laws, unauthorized state assistance to specific cities,the ordinances related to diversion programs. criteria for the additional aid should be Such changes would have been a significant specifically enumerated and the deviation from the practice of using the appropriation should be separate and in formula to distribute LGA and could have addition to the appropriation through the jeopardized the long-term stability of the general LGA formula. program. FF-5. State Charges for For 2019 only, the 2017 Legislature Administrative Services included a one-time payment acceleration that will distribute 14.6 percent of each Issue: Currently, some state agencies have city's 2019 LGA by June 15, with a second wide discretion in setting the fees for special payment of 35.4 percent on July 20 and a services they provide to local governments. final payment of 50 percent on December 26. For 2020 and beyond, LGA payments Response: State agencies should be will again be made to cities in two equal required to justify their service fees or for installments on July 20 and December 26 increases in existing service fees and not each year. This distribution occurs late in the charge more than what is fair, reasonable, city fiscal year and can create short-term and proportionate to the cost of service. cash flow challenges for some cities. Agencies should give adequate notice of increases to allow local governments to 132 budget for the increases. State agencies m) Local improvement requirements (Minn. should set administrative service fees as Stat. § 429.031); close as possible to the marginal cost of n) Development and permit fees report providing the service. Local government (Minn. Stat. § 326B.145); should be given the option to self- o) Utility annual financial statements administer or contract with the private (Minn. Stat. § 412.381); sector for the service if the state cannot p) Housing and redevelopment authority provide the service at a reasonable cost. annual financial report(Minn. Stat. § 469.013); and FF-6. Reporting Requirements q) Federal single audit or a program- specific audit(31 U.S.C. § 7502 (a)(1)). Issue:Budget and financial reporting r) A temporary reporting requirement for requirements imposed on cities by the state the federal CARES Act distributions. often result in duplication and additional costs. In addition to the state mandated Many cities have expanded the availability annual audits under Minn. Stat. §§ 471.697- of information on their web sites in response .698, cities are required to prepare and to citizen requests and some cities have submit or publish numerous other budget begun using new tools to assist citizens in and financial reports including but not understanding the city budget. Expanding limited to: state mandated financial reporting requirements could force cities to redirect a) Summary budget reports (Minn. Stat. § scarce resources to the state mandate and 6.745); stifle innovative ways to communicate with b) Treasurers report to the city clerk(Minn. citizens. Stat. § 412.141); c) Statement of tax collections and other Response:Requirements for reporting income by clerk to the city council and advertising financial and budget (Minn. Stat. § 471.69); information should be carefully weighed d) Report on outstanding obligations and to balance the need for information with the purpose for each issue filed with the the administrative costs of compiling and county auditor(Minn. Stat. § 471.70); submitting this information. In addition, e) Publication of summary budget the legislature should direct all state statement(Minn. Stat. § 471.6965); agencies to review existing local f) Publication of statement of liquor store government reporting mandates and operations (Minn. Stat. § 477A.017); eliminate redundant or superfluous g) Liquor store audited financial statements requirements. To this point, the (Minn. Stat. § 471.6985); legislature should consolidate municipal h) TIF district plan and amendments (Minn. government financial reporting Stat. § 469.175, subd. 4a); requirements in the Office of State i) TIF district annual disclosure (Minn. Auditor,include an electronic submission Stat. § 469.175, subd. 5); alternative to any remaining paper filing j) TIF district annual financial report requirements and authorize the use of (Minn. Stat. § 469.175, subd. 6); web publication where newspaper k) Business subsidy reporting (Minn. Stat. publication is currently required. §§ 116J.993-.995); 1) State required financial activity reports Finally,the legislature must not increase (Minn. Stat. § 6.74); reporting burdens for local units of 133 government.Any new reporting reimbursements to local units of requirement should have a clearly defined government can be cut while the credit to statement of purpose and public need not the taxpayer remains on the property tax currently met with existing reports, a statement. In addition,the League sunset date to facilitate a future opposes reinstituting Limited Market discussion of the usefulness of the Value, a program that reduces the taxable requirement as well as full state funding value of individual properties based on for the costs associated with a new assessor's valuation increase. Limited reporting mandate. Market Value creates inequities between similar properties based solely on the FF-7. Direct Property Tax Relief valuation increase determined by the Programs assessor. Issue:In 2013, the legislature expanded the FF-8. Sales Tax On Local homeowner property tax refund(PTR) Government Purchases program and renamed it the Homestead Credit Refund program. As a direct taxpayer Issue: The local government sales tax relief program, the Homestead Credit exemption enacted in 2013 and expanded in Refund avoids the problems with the former 2014 does not apply to all city purchases. Market Value Homestead Credit system Some purchases for municipal enterprise where the state provided a credit on the operations, such as liquor stores and golf homeowner's property tax statement but did courses are excluded from the exemption. In not always reimburse cities and counties for addition, in order to receive the sales tax the amount of the credit. exemption on construction materials under current law, cities must bid labor and Response: The League of Minnesota materials separately and also designate a Cities supports providing additional, contractor to be a purchasing agent on direct property tax relief through an behalf of the city. The existing Department expansion of the Homestead Credit of Revenue rules (Minnesota Rules Refund program,the renters' refund 8130.1200, subp. 3) are complex and the program,the targeting program or other implementation can be so complicated that it programs that provide property tax relief can cost cities more money to implement directly from the state to taxpayers. In than they will save on the tax exemption. addition,the League supports the 2013 Finally, although cities currently do not pay legislation that requires the Department the motor vehicle sales tax on marked police of Revenue to notify potentially eligible vehicles or firefighting vehicles, other city homeowners of the program and would vehicles are not exempt from the motor also support legislative modifications to vehicle sales tax. these programs to eliminate the taxpayer filing requirement thereby making the tax Response:In order to ensure that relief payments automatic. taxpayers receive the full benefit of the local government sales tax exemption: The League opposes property tax credit programs that reimburse local units of a) The exemption should apply to all government for reduced tax burden such purchases made by local units of as the former market value homestead government; credit system due to the fact that the 134 b) The process to receive the exemption in state and local revenues. To address the for construction materials should be challenges created by the growth of simplified or converted into a refund electronic commerce,the League of process; and Minnesota Cities continues to support the c) The exemption should be extended to multi-state effort to develop a streamlined all local government purchases that sales tax system. would otherwise be subject to the motor vehicle sales tax in Minn. Stat. Should Congress intervene,the League ch. 297B. would support nation-wide sales tax administration standards based on the FF-9. Taxation of Electronic model developed by the Streamlined Sales Commerce Tax Project. The League will oppose Congressional efforts to reverse remote Issue: The 2018 U.S. Supreme Court retailer collection requirements. decision [South Dakota v. Wayfair, Inc., 585 U.S. (2018)] overturned two earlier FF-10. Local Lodging Taxes Supreme Court decisions [Quill Corp. v. North Dakota, 504 U.S. 298 (1992) and Issue:In 2011, the legislature amended National Bellas Hess v. Department of Minn. Stat. § 297A.61 to define Revenue, 386 U.S. 753 (1967)] that had accommodation intermediaries and clarified prevented states from requiring retailers that their services are subject to the state without a physical presence from collecting sales tax as part of the tax imposed on state and local sales taxes on purchases lodging. Local lodging taxes collected by made by state residents and businesses. the state for local units of government under Minn. Stat. § 469.190, subd. 7, also clearly A group of 23 states participating in the apply to services provided by these Streamlined Sales Tax Project have worked accommodation intermediaries since these together for more than 18 years to simplify taxes are required under Minn. Stat. § the administration of state and local sales 270C.171 to use the definition for tax base taxes and reduce the administrative burden contained in the general sales tax statute. on retailers. The success of this project was referenced in the Wayfair decision. Since 2011, some accommodation intermediaries have not been collecting and Despite the Supreme Court's Wayfair remitting locally-administered lodging taxes decision, new legal challenges could be filed based on the full cost of the accommodation by remote retailers or Congress could plus the accommodation intermediary intervene to address remaining sales tax services. There are currently 120 cities and administration issues including the fact that towns that individually or jointly impose more than 20 states with sales taxes have not lodging taxes for tourism purposes under adopted the SSUTP standards. Minn. Stat. § 469.190. Another five cities impose a lodging tax that is administered Response:Federal tax policy should not locally under special law. Four local lodging place main street businesses at a taxes are currently administered by the state. competitive disadvantage to electronic retailers, must not jeopardize repayment Response: The League of Minnesota of bonds backed by state and local sales Cities supports legislation that will clarify tax revenues, and should ensure stability that all lodging taxes,whether 135 administered by the state or administered generation which raise equal or greater locally, apply to the total charges to the revenues for host cities. customer, including charges for services provided by accommodation Response: Personal property taxes on intermediaries. attached electric generation machinery are a fair way to spread the FF-11. Taxation of Electric environmental and economic costs of Generation Personal Property electric generation power plants among all IOU shareholders and ratepayers. The Issue:Investor-owned utilities (IOUs)have League of Minnesota Cities supports the a longstanding relationship with Minnesota continuation of personal property taxes cities. IOUs site baseload power plants in paid by IOUs to host communities for host communities, and in exchange pay existing and new facilities or a tax system personal property tax on attached generation which generates equal or greater revenue machinery to the cities, counties and school for host communities.As the Department districts hosting the plants. These plants of Revenue analyzes methods of utility bring jobs to our communities, but they also taxation in its Study of Electric Energy create nuisances such as air pollution, Producing Systems (Session Law 2014, nuclear waste, noise, vibration, and coal Chapter 308),the League supports the train traffic. They also create security risks inclusion of these environmental and and take up land that could be used for economic costs in assessing the other, less disruptive commercial and appropriate property taxes paid to host industrial development. Cities believe cities by electric generation facilities. personal property taxes paid by IOUs are a fair compensation for the environmental and FF-12. Electric Generation economic costs of hosting baseload power Taxation Reform plants. Issue: Currently, electric utilities are subject IOUs argue that personal property tax relief to a personal property tax on personal is important to pass along to their property which is part of an electric shareholders and ratepayers. However, only generating, transmission, or distribution a few IOU shareholders and ratepayers system. This tax has a number of actually live in the communities hosting exemptions and exclusions which make a baseload power plants. Further, almost all patchwork of taxation statewide. The new power plants receive personal property Department of Revenue issued a report on tax exemptions from the Legislature, while February 15, 2015 which laid out the details host communities with existing, non-exempt of this tax system, stating, "The utility tax baseload plants will continue to have them base comprised of these energy producing for decades to come. facilities is not predictable. The unpredictability is a result of law and rule Currently the taxation of electric generation changes that determine the amount of utility personal property represents the best method tax base available for host communities." for reimbursing host communities for the cost of hosting IOUs. However, a 2015 MN Cities which host Investor Owned Utility Department of Revenue study on electric base load power plants have faced generation taxation has generated proposals unpredictability in tax base from both to change the state system of taxing electric changes to state law regarding the personal 136 property tax on electric generation jurisdiction that receives an electric equipment and from changes in valuation distribution. due to the upgrade/depreciation cycle of equipment. These new tax bases define the value for purposes of the ad valorem tax of hosting The Minnesota Legislature has introduced a jurisdictions. reform to the system of taxing electric generation. It repeals the personal property Factors such as inflation affect the expenses tax and all of its exclusions and exemptions, of host cities, so any proposal to change the and replaces it with an"electric generation system of taxing electric generation should tax base"which is subject to local property account for changes in value over time, taxes. This proposal also repeals the using an independently reported adjustment personal property tax on transmission and factor for changing values over time. distribution and creates a"Valuation for Electric Transmission Line Tax Base," a Statutory changes to the system of electric "Valuation for Electric Substation Tax generation taxation should not adversely Base" and an"Electric Distribution Line affect host city tax revenues. Any proposal Tax Base." to change the system must include some form of replacement aid which compensates The proposal defines the tax base for electric cities for adverse effects due to changing generation in a new way for electric state law on electric generation taxation. generation plants which use coal, oil, natural gas, nuclear fission, biomass and flowing Response: The personal property tax on water to generate electricity. Under the electric generation equipment as well as proposal, the Department of Revenue would the exemptions, exclusions and sliding annually assess the tax base of electric scales to that tax represent a patchwork generation machinery under a set of of taxation rules statewide. Changes to statutory formulas. The new valuation which state law which replace the personal replaces the value of electric generating property tax on electric generation equipment is based on a combination of an equipment with a tax base valuation individual facility's nameplate capacity, based on electric generation capacity, average energy production and amount of production, nuclear storage,transmission, nuclear waste storage. and distribution will benefit IOU host cities so long as the change comes with a The proposal also replaces the taxable value factor to increase the tax base valuation of electric transmission and distribution with over time and reimbursement to cities for statutory formulas. The Department of revenues lost due to a change in state law. Revenue would assess the value of the "electric transmission line tax base" FF-13. Support for Transitioning according to the number of miles of electric Communities transmission within the taxing jurisdiction, the value of the "electric substation tax base Issue: Technological advancements and according to the sum of the capacity of a market forces are rapidly changing the substation, and the value of the"electric electric generation industry. Investor- distribution line tax base" according to the owned utilities (IOUs)in Minnesota are number of customers in the taxing increasing the share of their electric generation portfolios that are made up of 137 renewable generation sources like wind policies or programs to help those and solar,while planning to decrease the communities replace their local tax base share of electric generation that is derived through economic development. The from baseload power plants that produce League of Minnesota Cities also support energy from coal or nuclear sources. Due efforts by the state legislature to study, to the deep and longstanding relationship analyze, and design policy solutions to IOUs have with some Minnesota cities, address the unique challenges these the possible retirement of these power communities face. plants stands to have a significant disruptive effect on these cities. FF-14. Taxation of Municipal Bond Interest Cities that host baseload power plants make significant investments to support Issue: The federal and state laws that grant a those plants,including infrastructure, tax exemption to bondholders for municipal public safety, and disaster preparedness. bond interest lowers borrowing costs for To compensate for this,IOUs pay cities and reduces property tax levies. personal property tax on electric Recent proposed Internal Revenue Service generation machinery. For some cities, rules would potentially restrict some local these revenues can account for over 50% government entities such as housing and of the city's annual budget. Moreover, redevelopment authorities, economic IOUs have other significant direct and development authorities and port authorities indirect impacts on host communities. from issuing tax exempt bonds. IOUs tend to employ significant numbers of employees at baseload power plants. Response: Congress and the state should Those employees are likely to live,work, maintain the tax exemption for municipal attend school, and shop in and around the bond interest income. Congress should local community. Therefore,the of the also clarify the law to supersede proposed retirement of these plants would have IRS rules and thereby continue to allow significant negative impacts on these housing and redevelopment authorities, communities. economic development authorities and port authorities to issue tax exempt debt. While the power that is generated at these facilities goes to support the entire state of FF-15. Pollution Control Minnesota,the impacts of hosting these Exemption plants is felt most acutely in these local communities. Therefore, state lawmakers Issue:Minnesota grants electric utilities and should partner with these communities several other industries a property tax and support their transition in the event exemption for personal and real property that these baseload power plants are that is primarily used for pollution control. retired by the IOUs. Minnesota adopted the property tax exemption that now extends to electrical Response: The League of Minnesota generation systems, agricultural operations, Cities recognizes that the energy and wastewater treatment facilities in 1967, landscape is rapidly changing, and before water and air pollution were heavily supports state policies to replace tax base regulated by the Environmental Protection in communities facing the closure of a Agency and the Minnesota Pollution Control baseload power plant, as well as other 138 Agency. The language and the purpose of would allow a small number of voters (ten these statutes have evolved through the percent of those voting in the last general years. When states first began adopting election)to petition for a referendum on a these tax incentives in the 1960s, they hoped general city property tax levy increase. The to encourage utilities, industrial plants, and outcome of the election could reverse the others to install pollution control equipment. decision of the local elected officials on the Gradually, as regulation increased, states local budget and property tax levy after adopted the exemptions to help companies months of planning and public hearings. offset the cost of the equipment. As recently as the 2013 legislative session, This tax benefit erodes local tax bases. In the legislature imposed levy limits on cities 2013, more than $1.8 billion of personal and over 2,500 population for one year. Levy real property for electrical generation was limits replace local accountability with a exempted from the market value of utilities. state judgment about the appropriate level of The incentive value of this benefit is low local taxation and local services. because utility companies are required to Additionally, state restrictions on local install the equipment anyway. In addition, budgets can have a negative effect on a these companies frequently recover the cost city's bond rating due to the restriction on of the equipment through rate riders granted revenue flexibility. by the Public Utilities Commission. Allowing the pollution control equipment Levy limits also fail to account for the exemption places the cost of this equipment decertification of tax increment financing on the citizens of the host community, rather districts. Upon decertification, the property than the purchasers of electricity. taxes that were formerly collected and used to support the public improvements in the Response: The pollution control TIF district can no longer be collected at the exemption places an undue burden on same rate and used to support ongoing host communities without incentivizing general city operations. the environmentally responsible behavior that it was originally created to Response: Local elected officials are encourage. The League of Minnesota elected to make decisions about local Cities supports narrowing or eliminating budgets and meeting community needs. the pollution control equipment The League finds that it is inappropriate exemption for investor owned electric for the Legislature to undermine local generation facilities. The League would elected officials decision-making and also support allowing utilities to continue accountability through the continued to recover their costs relating to the imposition of levy limits or by enacting pollution control equipment by spreading proposals such as a reverse referendum those costs to electricity users. requirement or the "taxpayers' bill of rights." The League of Minnesota Cities FF-16. Local Elected Officials supports the principle of representative Authority to Establish Local democracy that allows local elected Budgets officials to formulate local budgets without state or other restrictions. Issue:In 2015, the House omnibus tax bill included a reverse referendum provision that 139 FF-17. Tax Hearing and that the legislative intent is reflected in Notification Process the statutes. Issue: Cities must set a preliminary levy by Specifically,the League of Minnesota September 30, which is the levy used to Cities supports the following: compute the parcel-specific property tax a) Modifying Minn. Stat. § 275.065 to notification forms. With only a few limited exemptions (e.g., voter-approved levies, clearly and fully exclude cities of population 500 and under from the levies for natural disasters and levies for certain tort judgments), this preliminary budget and levy hearing levy, by law, becomes the maximum that requirements; b) Reinstating the exception to the tax cities can levy the following year. Asa result, cities may be unable to budget for hearing and notification requirements unforeseen needs that arise after September for cities with more than 500 residents 30. with a proposed levy increase below the implicit price deflator (IPD); and The 2009 Legislature eliminated the separate tax hearing requirement and In order to assist local officials with the replaced it with a requirement that the public challenge of explaining legislative changes to the property tax system,legislators be allowed to speak at a regularly scheduled meeting on the budget and tax levy. These should attend and be encouraged to participate in local government budget changes erroneously repealed an exception to the tax hearing and notification process hearings in their districts. for cities adopting their levies at or less than FF-18. General Election the current rate of inflation. Requirement for Ballot Questions City officials have found it difficult to explain to local taxpayers not only the Issue:Under current state law, when cities effects of their budget and levy decisions but are required to seek voter approval on a also the separate effects of the actions of the ballot question or where statutes allow state Legislature. voters to petition for an election on a council action (reverse referendum), these referenda Response: Cities should have the can generally be held at a general or special authority to increase the final levy from election. This flexibility allows cities to the preliminary levy with the approval of respond to local circumstances in a timely the commissioner of the Department of manner. Revenue,to meet additional, unforeseen and uncontrollable needs, including Response: Cities should be allowed to arbitrator awards resulting from labor conduct elections on ballot questions at a negotiations,the impact of new and date and time set by the city council and existing federal or state mandates that complies with existing election including administrative rules, or other notification statutes. non-discretionary budget factors. FF-19. City Fund Balances The tax hearing and notification law should be carefully reviewed to assure Issue: As a component of a prudent financial management plan, cities maintain a 140 fund balance composed of cash flow funds, unique strengths and weaknesses and the savings for projects, and rainy-day reserves more intensively any single tax type is used, to maintain high level bond ratings and to the more obvious its shortcomings become. minimize borrowing costs. Although the size For example, the property tax is generally of a city's fund balance should be regarded as being very stable throughout the determined through local financial needs economic cycle and it is considered to be a and local preferences, some cities are being relatively easy tax to administer and enforce. criticized for maintaining "excessive" However, when property tax burdens reserves. As the recent pandemic unfolded, become too high, there may be negative there were calls to delay tax payments by consequences for other public policy property owners, citing city fund balances as objectives such as business development and evidence that cities could absorb cash flow home ownership. delays. In addition to avoiding the problems created The Office of the State Auditor(OSA) by excessive reliance on any single tax, a report measures city fund balances on balanced and diversified revenue system for December 31, shortly after the city receives Minnesota cities may create a more its largest sources of revenue from the favorable business climate and provide for property tax and state aid distributions. greater stability of revenues to the recipient Measuring at this time, however, yields a government unit throughout the course of picture of a high fund balance even though the economic cycle. the city will spend down these funds to cash flow the next five to six months of its Under Minn. Stat. § 297A.99, the operations. Legislature has created a set of local sales tax rules and a defined process by which Response: The state should respect local cities and other political subdivisions can decisions on adequacy of local fund impose a general local option sales tax. balances. The League of Minnesota Cities Although the statutory process requires the opposes any attempt to divert local city council to adopt a resolution supporting reserves to benefit the state budget or use the local sales tax, the process continues to reserves as a rationale for state aid cuts or require the authorization of the local sales property tax payment delays. tax by the Legislature through the passage of a special law before finally seeking voter FF-20. Local Option Sales Tax and approval at a general election. City Revenue Diversification City requests for sales tax authority continue Issue:Under current state law, the property to increase. In 2019, the legislature granted tax is the only generally accessible form of local sales tax authority to an additional 16 local tax revenue for cities. Allowing cities cities and in 2020, 20 cities sought new or to diversify their revenue stream would help expanded local sales taxes, however, despite prevent rapid additional future reliance on following the revised process enacted in the property tax. 2019, the legislature did not include any of the local proposals in the tax bills advanced The basic public finance rationale for in the House and Senate. diversification of local tax systems is rooted in the fact that economists generally agree Response: Cities should be able to that there is no perfect tax. Each tax has diversify their sources of revenues. The 141 League of Minnesota Cities continues to In addition,Minn. Stat. § 469.190 should support a statutory change to generally amended to allow cities to impose up to a allow a city to enact a local sales tax for five percent local lodging tax and to allow public improvements and capital cities to modify the uses of their local replacement costs, including but not lodging tax revenues to meet local needs. limited to those specified in the 2019 Cities should also have general authority legislation: to create utilities, similar to the storm sewer utility authority,in order to fund a) Convention or civic centers; local services where benefit or usage of b) Public libraries; the service can be measured. c) Parks,trails, and recreational facilities; FF-21. City Franchise Authority d) Overpasses, arterial and collector roads, or bridges, on, adjacent to, or Issue:Under Minn. Stat. ch. 216B and connecting to a Minnesota state Minn. Stat. § 301B.01, a city may require a highway; public utility furnishing gas or electric utility e) Railroad overpasses or crossing safety services or occupying streets, highways or improvements; other public property within a municipality f) Transportation infrastructure to obtain a franchise to operate within the improvements,including construction, community. In addition, cable system repair of roadways,bridges and operators are required to obtain a franchise airports; under Minn. Stat. ch. 238. g) Flood control and protection; h) Water quality projects to address Under a franchise, the city may require the groundwater and drinking water utility to pay a fee to the municipality to pollution problems; raise revenue or to defray increased i) Court facilities; municipal costs, such as maintenance and j) Fire,law enforcement, or public safety reconstruction costs, accruing as a result of facilities; or utility operations, or both. k) Municipal buildings. State law currently allows the franchise fee Local sales taxes would follow the process to be based upon gross operating revenues outlined in Minn. Stat. § 297A.99 but or gross earnings of the utility from its without the need for the approval by the operations in the municipality. In this Legislature and governor through the manner, all utility users within the passage of special legislation. The League municipality contribute to the public costs supports allowing the referendum to be associated with the utility operation. In the conducted at either a general or a special absence of franchise fees, municipal costs election. resulting from utility operations are currently being funded by property tax State law should also be modified to payers. generally authorize any city to impose other types of taxes such as a local payroll Many cities also have policies related to tax or an entertainment tax with the utility company services and products that adoption of a supporting resolution by the could be supported under conditions of a city council and after approval by the franchise agreement, such as local voters at a general or special election. renewable energy and energy efficiency 142 programs. Current statutes do not explicitly that local governments will collect in provide city authority to include those types property tax from these utilities. of performance conditions in a franchise agreement. Recognizing that the communities that host these utilities bear extraordinary burdens Under current law, cities are permitted to connected with stress on local infrastructure, engage citizens when discussing a new or public safety, and public nuisance due to the renewed franchise fee arrangement in the presence of these facilities in their manner that best fits the community. A communities, the Legislature created the recent legislative proposal would have Utility Valuation Transition Aid program. added a prescriptive notification and reverse This program compensates host referendum requirement to the process of communities that have lost more than 4 imposing or renewing a franchise agreement percent of their net tax capacity as a result of with a gas or an electric utility. Department of Revenue's rule changes. Response: Municipal authority to collect Currently the taxation of electric generation franchise fee revenues from utilities is an personal property represents the best method important and equitable mechanism to for reimbursing host communities for the offset the costs of maintaining public cost of hosting IOUs. However, a 2015 MN right-of-way and to generate a return on Department of Revenue study on electric a publicly held asset. Municipal franchise generation taxation has generated proposals authority must be preserved and should to change the state system of taxing electric be expanded to allow city policy priorities generation which raise equal or greater to be addressed through conditions in revenues for host cities. franchise agreements that have the cost covered by local ratepayers,where Response: The League of Minnesota appropriate, and can be accomplished Cities supports the continuation of the within the local franchise boundaries. The Utility Valuation Transition Aid program League opposes adding a one-size-fits-all and opposes any efforts to change notification requirement and a reverse statutory language or to divert promised referendum procedure to the gas and funds away from host communities for electric franchise fee process. In addition, any purpose unless statutory language in situations where a local provider replaces promised funds with equal or decides to sell their operations,the city greater revenue to host communities. If must have the right of first refusal to the Legislature does determine that it is purchase the assets of the utility. necessary to re-allocate the funds in the Utility Valuation Transition Aid program FF-22. Utility Valuation Transition for another purpose,the League supports Aid other legislative efforts that would compensate the host communities for the Issue:In 2007, the Minnesota Department economic and environmental costs of of Revenue revised its rules regarding the hosting these facilities through valuation of electric and natural gas utility reimbursement from the investor owned property. This change in the rules resulted utilities. These other efforts could in valuation changes for utility property that include,but are not limited to,increasing dramatically reduced the amount of revenue the class rate on utility property to the 143 extent that it would offset the negative becomes tax exempt, state law should effects of the utility valuation rule change. require the new owner to continue to pay the property taxes with a five-year phase- FF-23. State Assistance for out of taxable value or the state Property Tax Refunds for State- legislature should create a program that Assessed Property provides a state-paid transition aid paid over a period of time to local units of Issue: State law requires certain property, government that experience tax exempt including pipelines, railroad, utility property acquisitions,paid over a period of time. be assessed for property taxation purposes by the Minnesota Department of Revenue. FF-25. Payments for Services to When companies challenge the valuation of Tax-Exempt Property these properties, local units of government may be required to refund excess taxes, Issue: Taxable property in many cities is which in some cases, can create financial being acquired by nonprofit and government hardship for local units of government and entities. Converting the property to tax- their taxpayers. exempt status can lead to serious tax base erosion without any corresponding reduction Response: The state should establish a in the service needs created by the property. program to provide financial compensation to all units of local In 2013, legislation was introduced that government for court ordered property would have broadly exempted non-profit tax refunds where the state has property from paying user fees or service determined values. charges for any service funded in part with property taxes over the previous five years. FF-24. Transition for Property Under certain circumstances, this proposal Acquired by Tax-Exempt Entities could have potentially exempted non-profits from paying for even utility charges. Issue:When an existing taxable property is acquired by atax-exempt entity other than a Response: Cities should have the city or a city development authority or authority to collect payments from otherwise becomes tax exempt and removed statutorily-exempt property owners to from the tax base, the taxes formerly paid by cover costs of service similar to the the property owner are shifted to other, authority provided under the special remaining taxable properties within the assessment law. The League of Minnesota jurisdiction. When the acquired property is a Cities opposes legislation that would large percentage of the tax base of a city or exempt non-profits from paying for user other local unit of government, the shift in fees and service charges that help fund services these organizations use. taxes can be substantial. Response: To avoid immediate, large tax FF-26. Public Safety Protection burden shifts when an existing taxable Districts property is acquired by an entity qualifying for a Minnesota property tax Issue: Public Safety protection districts have exemption other than a city or a city the potential to reduce duplication of development authority or overwise equipment purchases and services, and to improve uniformity of service delivery 144 throughout a region. One obstacle to tool, and found it to be a useful mechanism establishing public safety protection districts for maintaining older association homes. is the absence of statutory authority to establish public safety taxing districts. The The 2013 Legislature also granted HIA Legislature has granted authority for special authority to a county Community taxing districts to provide services such as Development Authority (CDA). As part of watershed management and emergency that authority, the CDA is required to gather medical services. Despite growing funding local approval before creating an HIA. and public safety protection staffing challenges, this authority does not currently In 1996, the Legislature also gave cities the exist for providing public safety protection general authority to create Special Service services. Districts (SSDs)under Minn. Stat. §§ 428A.01-.101. Cities around the state Public safety protection districts would have used this tool to provide an increased create another option for funding fire, level of service to commercial or industrial police, emergency management, and areas, commonly in areas of retail emergency medical services for local concentration. SSDs are established at the communities. request of local businesses, who ultimately pay for and benefit from the increased level Response: The League of Minnesota of service. A SSD may be established Cities recognizes that some regions of the anywhere in a city but only business state could sustain or improve public property (i.e. commercial, industrial, utility, safety protection services if public safety or land zoned for commercial or industrial protection districts were authorized. The use)will be subject to the service charge. League supports authority for local units Some special services have included street of government to establish public safety and sidewalk cleaning, snow and ice protection districts provided that 1) removal, lighting, signage,parking,parking participation in a district is a local enforcement, marketing and promotion, decision, and 2)public safety taxing landscaping, and security. A SSD may be districts must be governed by elected established only by petition and the city officials representing the participating adopts an ordinance to establish it. Minn. entities.With elected local official Stat. §§ 428A.09-10 establishes procedures participation, state-imposed levy limits on for the business owners in the SSD to veto public safety protection districts are or end the SSD. The 2013 legislature unnecessary. extended the sunset for both tools for 15 years, making it set to expire on June 30, FF-27. Housing Improvement 2028. In 2017, the House considered Areas and Special Service Districts legislation that was ultimately unsuccessful Petitioned by Business to repeal the general SSD authority for cities. There are currently over 15 cities that Issue:In 1996, cities were granted general have established SSDs around the state. authority under Minn. Stat. §§ 428A.11-.21 to use Housing Improvement Areas (HIAs) As cities work to develop and/or redevelop in order to finance housing improvements commercial, industrial, and residential areas, for condominium and townhome complexes. new ways of paying for and providing Several cities around the state have used this increased levels of service should be available to local entities. Use of Special 145 Service Districts in mixed-use development county auditor cancels all of the local is one tool that could be available for this special assessments due and remaining purpose. unpaid on each parcel, which is authorized in Minn. Stat. § 282.07. Therefore, the city Response: The Legislature should give loses the funds previously budgeted and cities permanent authority to create HIAs planned for to pay for the local and SSDs. The League of Minnesota improvements. To underline this point, the Cities supports the authority for cities to funds have already been expended and if not work with their business communities to collected, result in losses to the city. establish SSDs and opposes efforts to restrict general authority of the tool. When tax-forfeited land returns to private ownership, and the parcel benefitted from an The League also supports the potential improvement for which the city canceled use of SSDs for mixed-use districts that special assessments because of the include residential and forfeiture, the city may assess or reassess the commercial/industrial properties. The parcel. But cities must go through the same law should be reviewed to determine to cumbersome notice and hearing procedures what extent mixed-use properties can and in order to re-attach the assessments. should contribute to a Special Service District from which they will benefit. The Response: The Legislature should remove League would support legislation that cancellation of local special assessments expands SSDs to include mixed-use from state law, allowing cities to receive development to the extent it balances the the funding validly assessed and counted benefits and obligations of residential on to fund local infrastructure properties within the district. improvements. If the Legislature grants multi- FF-29. Distribution of Proceeds jurisdictional entities the authority to from the Sale of Tax-Forfeit create HIAs, creation of an HIA must Property require local approval. FF-28. Tax-Forfeited Properties Issue:When properties go into tax forfeiture all levels of government lose tax revenue and Local Special Assessments that would otherwise support the services they provide. It is always in the best interest Issue: Special assessments are a charge, of taxpayers to return these properties to the authorized by the Legislature and state law, tax rolls as quickly as possible. imposed on properties for a particular improvement that benefits those selected Although the tax forfeiture process is properties. Cities follow complex, time- controlled by the county, and counties have consuming statutory special assessment a legitimate need to be reimbursed for procedures to specially assess the reasonable administrative costs, the city appropriate amount of the local often has more at stake financially in terms infrastructure improvements to those of costs fronted to facilitate development properties. (e.g., assessments for public infrastructure and unpaid development or utility fees). If a property with validly attached special While the tax forfeit procedure provides a assessments goes into tax-forfeiture, the process for the repayment of special 146 assessments, it does not require the even a portion of the unpaid taxes or special repayment of unpaid utility charges or assessments owed on a property. unpaid building and development fees. Further, due to large assessments that some In most cases, cities and counties work cities are left with, it may not be practical to collaboratively to ensure that properties are sell a tax-forfeited property subject to a returned to the tax rolls quickly to benefit all special assessment, and city taxpayers may taxpayers. However, when consensus is not be forced to absorb the sunk costs of a reached, the tax forfeiture statutes place project in order to sell the property. cities at a disadvantage and can disproportionately burden the taxpayers of State statutes governing the apportionment the city in which the properties are located. of the proceeds from the sale of tax forfeit property allow counties to first recover Response: The League of Minnesota administrative costs related to the tax Cities believes the tax forfeiture statutes forfeiture process before subsequent should be reviewed and amended as allocations are made for special assessments necessary to ensure that the needs of city and hazardous waste cleanup associated and county taxpayers are properly with the property. State law is unclear balanced. Specifically,the League whether the proceeds from a tax forfeiture supports changes in the distribution of transaction should be used to reimburse the the proceeds from the sale of tax forfeit county only for the expenses associated with property contained in Minn. Stat. § the transacted parcel, or if the proceeds can 282.08 to elevate the priority for be used to reimburse the county for repayment of unpaid charges for administrative costs associated with other electricity,water and sewer charges parcels that were not transacted. When the certified pursuant to Minn. Stat. § latter allocation method is employed by a 444.075 subd. 3(e), and any unpaid fees county, the transaction proceeds can be prescribed pursuant to Minn. Stat. § disproportionately applied to county 462.353 subd. 4(a),to require those administrative costs resulting in a lower unpaid charges and fees to be repaid allocation of remaining proceeds to cover immediately after unpaid special existing special assessments, hazardous assessments. waste cleanup costs and ultimately the final allocation of residual tax forfeit sale The proceeds from the sale of a tax proceeds to cities. forfeited parcel should be used to pay the assessments and administrative and In addition, counties are allowed to use 30 development costs for the transacted percent of the amount remaining after the parcel. Minn. Stat. § 282.09 should be deduction for administrative expenses and amended to prevent the proceeds from the repayment of special assessments for the sales of a tax forfeited parcel to be forest development projects and then 20 used to pay excessive administrative costs percent of any remaining proceeds for or the costs for other parcels in the county county parks and recreation projects. The until the city is fairly reimbursed for structure of the distribution of the proceeds unpaid assessments and development frequently results in cities receiving a very costs of the transacted parcel. small percentage of the initial forfeit sale proceeds. As a result, cities may not recoup Before the final distribution of any remaining proceeds from the sale of tax 147 forfeited land are distributed to cities, FF- 31. Library Funding counties, and school districts,Minn. Stat. § 282.08(4)(i) and (ii) give counties the Issue: State law requires that local right to take up to half of those proceeds governments maintain a minimum level of for county forest development and county funding for public library services. This is park and recreation areas. The League collectively known as "state-certified levels also supports the elimination of these of library support," or more commonly separate statutory apportionments while known as, "maintenance of effort(MOE)" allowing counties to use their designated and is described in Minn. Stat. § 134.34. 40 percent share of the remaining proceeds for these uses. A majority of public libraries in Minnesota belong a regional library system, which is FF-30. State Hazard Mitigation and the entity that receives library funding from Response Support the Minnesota Department of Education. Six of the 12 regional library systems are Issue: Cities in Minnesota are exposed to structured as a federated system where the extreme weather events such as winds, individual libraries or library systems flooding, fires, and drought and are facing operate autonomously from the regional the severe financial consequences of the library system but they can utilize certain clean-up, repairs, and community social and services such as inter-library loan economic recovery, even though damages distribution, digital card cataloging, which may be deemed"not of such severity and capitalize on economies of effort from magnitude" as to qualify for federal partnering with the other libraries in the assistance. regional system. The MOE for any city that taxes separately for library services is now Response: The League of Minnesota set at 90% of the amount established in 2011 Cities calls on our legislators and state (see Minn. Stat. § 275.761). In 2011, it was executive agencies charged with hazard calculated using a formula that included mitigation planning to address not only a payments made in the form of the library response to extreme weather events but to employee salaries, payments toward also put into place a proactive strategy to operating the facility,purchasing materials minimize or mitigate the financial from the library, and other operating costs, consequences. At a minimum,this effort adjusted net tax capacity, and several other should offer a reasonable loan funding factors. The other half of the state's public program that is easily accessible by cities, library systems are consolidated systems, businesses and homeowners to financially where the regional library system runs the recover and rebuild,with the ultimate libraries through a joint powers agreement goal of preserving jobs,industries, and with counties and participating cities. The communities. regional library system has a board and hires the director. A city that participates in the The state response should allow for the regional system will have an MOE use of new technology and best (calculated as described above). The city management practices for any MOE may include dollars provided directly reconstruction of infrastructure to lessen to the regional library system or operating the impact of future disasters and to dollars provided to support building costs mitigate the effects of disasters resulting (i.e. city-provided maintenance services). from future extreme weather events. 148 In the metropolitan area, the seven county decision making. However, it provides a library systems and one city library system stable source of funding to protect the belong to the Metropolitan Library Services investment in library resources and services Agency (MELSA), the metro area regional around the state. There are some groups that library system. Most of the cities that are advocating for a restoration of the MOE operate libraries independently from their to levels at least as high as the 2010 level. county library system belong to MELSA as affiliates of their county library system. The Response: The League of Minnesota funding of libraries in MELSA may be from Cities supports equitable funding for local a county levy, a city levy, a city library fund libraries to allow for local budget decision from the general city levy or a combination. making. Changes to the maintenance of effort by the Legislature should be as Most libraries not only serve city residents, follows: but also serve people that reside outside of city limits who, in some cases, are not fully a) The required annual payment should contributing to the upkeep, maintenance or reflect the amount the city itself pays operations of the library through property toward maintenance, upkeep, and tax levies. While counties do contribute to capital improvements to the library in municipal libraries, this support falls well that year. short of the per capita amounts contributed b) If the MOE reduction in Minn. Stat. § by city residents. 275.761 is restored to a level at least as high as the 2010 level,it should be City officials support libraries and believe phased in over three years. that a system of equitably funded libraries is c) Any relief provided to the county needed. One approach that has been MOE requirement should not result in previously approved by the Legislature is additional funding requirements to providing for funding through regional tax cities. levies designated as "library districts." A district would have the authority to levy for The authority for library systems to public library services in lieu of their create library taxing districts should be member cities and counties. Under Minn. expanded statewide. Stat. § 134.201, the Great River Regional Library System and the East Central The Legislature should allow municipal Regional Library System already have libraries the ability to charge non- authority to create "library districts." residents for membership and\or other services without the loss of any State or Some cities also contribute a supplemental Federal aids. amount of funding separate from MOE requirements, usually to pay for building FF-32. Park and Library Land Tax maintenance costs. When the state calculates Break the required MOE for each local unit of government, local building costs are Issue: As the price for land increases, it is included in city MOE requirements and all becoming more difficult for cities and other monies cities contribute to a library local units of government to compete with building, except capital, are taken into developers to save and secure land and account. The MOE requirement is a mandate easements that are deemed appropriate for on cities that does not allow for local park, library, trail, and green spaces. 149 Response: The state should amend the tax are able to continue providing safe laws to provide tax incentives for schools programming property owners who sell land and easements to local units of government FF-34. Equitable Funding of when the land is to be used for park, Community Education Services library,trail or green space purposes. Issue:Under Minn. Stat. § 124D.20, school FF-33. Increasing Safe School Levy districts are authorized to levy for Authority community education programs that can include youth recreational activities. Issue: Strong partnerships between schools However, state statute limits the total and local law enforcement are critical to amount of revenue that can be raised by the school safety. Police School Resource school district to fund community education Officers (SROs) are valued professionals in programs and this limit has not been school communities and provide support, sufficiently increased in recent years. In safety and security for students, staff and the many instances, cities participate in the public. Further, SROs can provide regular funding of these programs and with the opportunities for informal,positive statutory limit on the amount school districts interactions between students and police can levy, the increased cost of these personnel. programs is increasingly falling on cities and their property taxpayers. In areas where the Under Minn. Stat. § 126C.44, the Safe school district is significantly larger than the Schools Levy allows school districts to levy city, the burden of funding these programs is for costs associated with student and staff falling disproportionately on city taxpayers safety based on student enrollment numbers. while the programs benefit the entire school Some eligible expenses include police district. liaison services; drug abuse prevention programs; gang resistance education Response: The League of Minnesota training; school security; crime prevention; Cities supports a statutory increase in the and implementation of student and staff community education revenue safety measures. authorization for school districts. Increasing the amount of the community Using Safe Schools Levy authority, local service revenue available to school school boards may raise additional resources districts would provide a steady source of for school safety and security. Almost every revenue,which would be assessed against Minnesota school district currently levies all properties in the school district, not the full amount of$36 per pupil. This just against properties in the city. amount does not cover the full cost of providing this important service, and local FF-35. Street Reconstruction Bond law enforcement agencies are not being fully Approval compensated for providing SROs. Issue:Under Minnesota law, financing the Response: The League supports maintenance of streets can be a challenge for increasing the maximum Safe Schools city councils. Minn. Stat. § 475.58 subd. 3b, Levy from $36 per pupil up to $60 per authorizes a city council, by two-thirds vote, pupil to ensure schools and communities to approve the issuance of bonds to finance 150 street reconstruction or bituminous overlays Response: In order to facilitate the without voter approval. The two-thirds financing of public infrastructure council approval requirement is further projects, the threshold for requiring voter subject to a reverse referendum process approval for issuance of improvement whereby a number equal to five percent of bonds under Minn. Stat. 429.091 should those voting in the last municipal general be reduced to 15 percent. This change election can petition for a referendum to would provide more flexibility for cities approve the issuance of the bonds. with their construction/bonding/assessment Response: Street maintenance is one of decisions and may be more likely to the essential functions of cities in survive a challenge while still providing Minnesota. The laws governing issuance value to the property owner. of bonds to maintain streets should be amended to allow the approval of the FF-37. Federal and State Pandemic bonds by a simple majority of the council. Assistance The existing reverse referendum process assures that taxpayers could trigger a Issue:In response to the COVID-19 referendum on the issuance of bonds if pandemic, Governor Walz implemented the they can meet the five percent petition recommendations of the legislature and threshold. allocated $841 million of the state's share of the Coronavirus Relief Fund (CRF) FF-36. Special Assessment Election authorized by the CARES Act(P.L. 116- Requirements 136)to cities, counties and townships. Although the impacts of the pandemic are Issue: City Councils are best situated to projected to extend into the foreseeable recognize the need to replace infrastructure future, the federal restrictions on the CRF and when to schedule the replacement funds limit the use to unbudgeted expenses projects. Cities are often only able to carry related to the pandemic that are incurred out these and other vital improvements by from March 1, 2020 through December 30, issuing bonds and assessing some amount of 2020 and the state is requiring cities to the cost to property owners. expend these funds by November 15. Any portion of the city's distribution that is not Issuing bonds to finance most local used by that date must return it to the county improvement projects requires a special or for cities in Hennepin and Ramsey election unless the city can legally collect at Counties to a hospital. least 20% of the project costs through special assessments. As a legal limit, cities The CARES Act also prohibits cities from cannot collect special assessments from any using any portion of the CRF distribution to property greater than the increase in fair replace losses of revenue resulting from the market value bestowed to that property by impacts of the pandemic. Losses of property the improvement(the "special benefit test"). taxes, sales and other special taxes as well as On occasion, the increase in property values fee and other revenues due to the impacts of as a result of the improvement can fail to the pandemic have resulted in significant add up to the 20%threshold necessary to budget challenges for cities. finance projects without requiring a special election. Response: Cities need additional flexibility to cover eligible costs that may 151 extend beyond November 15. The League financial impacts of the pandemic. Delaying supports: property tax receipts can create cash-flow challenges for cities and can negatively a) Changes in the state requirements to impact debt service payments that are allow cities to: aligned with the May 15 and October 15 i. Extend the allowable use of the payment dates for most property taxpayers. funds to cover operating expenses through the latter of With the impacts of the pandemic extending December 30, or any date into the foreseeable future, counties may provided in updated Treasury again decide to temporarily waive penalties guidance or action by for future property tax payment deadlines Congress. and the legislature could revive discussions ii. Allow cities undertaking of a mandatory delay in the property tax permitted facility upgrades, payment dates. technology purchases or other allowable capital projects that Response: The Legislature and counties will require additional should avoid modifying the property tax completion time,to expend payment structure to avoid creating funds beyond the November 15 financial problems for cities. If delays are deadline for those costs. permitted,the legislature and counties b) Action by Congress to: should provide cities with cash-flow i. Extend the deadline on the assistance to avoid costly short-term allowable uses of CARES borrowing and to avoid delays in debt Act/CRF funds beyond the service payments. December 30 deadline. ii. Allow cities to use the CRIES FF-39. State Fund for Non-weather- Act/CRF funds to replace related Disaster/Catastrophe Relief losses of revenues resulting from the impact of the Issue:Municipalities and other pandemic. governmental units are at risk of iii. Provide state and local experiencing disastrous events affecting government additional their communities beyond natural disasters, financial assistance to address whether from civil disturbances, industrial the long-term financial impacts catastrophes, or other disastrous events. of the pandemic. Such events may result in unbudgeted and unfunded costs related to clean-up, repairs, FF-38. Impacts of Property Tax "social" and economic recovery, Payment Delays infrastructure restoration, rebuilding structures, and other damage repair which Issue:Due to the severe economic impacts may not be qualify for relief from Federal of the pandemic, many counties exercised resources. While some limited State their authority to temporarily waive resources may be available, cities do not penalties on late payments of property taxes have the resources to respond to such due on May 15, 2020. In addition, the disasters. legislature discussed a state-mandated delay in property tax payments to help Response: The League of Minnesota homeowners and businesses address the Cities supports the creation of a state 152