Data practices
2014 Minn. Laws ch. 284, § 1 amending Minn. Stat. § 13.05, subd. 5. Additional safeguards policy required for protection of data The Legislature frequently adds to the required policies a government entity must have in place related to data practices. Previously a city had to have established “appropriate safeguards for all records containing data on individuals.” Effective Aug. 1, 2014, a city must additionally include procedures for ensuring that data that are not public are only accessible to persons whose work assignment reasonably requires access to the data, and is only being accessed by those persons for purposes described in the procedure. The city must also develop a policy incorporating these procedures.
Election law
2014 Minn. Laws ch. 265, § 1 amending Minn. Stat. § 211A.02. Web publication of campaign finance reports. If a city already maintains a website and the city has 400 or more registered voters as of the first of the year, there is a new requirement for those cities to make available on the city website all campaign finance reports required to be filed with the city. The clerk must post the reports on the city website as soon as possible, but no later than 30 days after receipt of the report, and the reports must remain on the city’s website for 4 years from the date they are first posted online. A link to the section of the website where the reports are found must be provided to the Campaign Finance and Public Disclosure Board. This new requirement is effective May 15, 2014 and does not apply to cities without a website or cities with fewer than 400 registered voters as of January 1 of the given year.
Employment
2014 Minn. Laws ch. 166, § 2 amending Minn. Stat. § 177.24, subd. 1. Minimum wage increase. The Legislature has made significant changes to the state minimum wage law, including yearly wage increases for the next few years and an adjustment to the definition of “large employer” that will capture more cities. As before, the minimum wage a city must pay depends on whether it is a large or small employer and if the employee is covered by the law.

While the statute is not entirely clear, the League generally advises using the city’s total budget amount to determine whether a city is large or small. As of Aug. 1, 2014, cities with a total budget of $500,000 or more will be considered large employers for purposes of minimum wage law. Cities with a total budget under $500,000 will be considered small employers. Prior to Aug. 1, 2014, a large employer was considered one with a total budget of at least $650,000.

As of August 2014, large employers must pay most employees covered by minimum wage law at a rate of at least $8 per hour, and small employers must pay all applicable employees at a rate of at least $6.50 per hour. On Aug. 1 of 2015 and 2016, the Minnesota minimum wage is scheduled to increase for both large and small employers.

As of Aug. 1, 2015, the Minnesota minimum pay rate will increase to $9 per hour for large employers, and to at least $7.25 per hour for small employers. Then, on Aug. 1, 2016, the Minnesota minimum pay rate will increase to $9.50 per hour for large employers, and to at least $7.75 per hour for small employers.

There are two exceptions to these wage amounts for younger employees. First, large employers must pay employees under age 18 a rate of at least $6.50 per hour. Second, all employers may elect to pay employees under age 20 at a rate not less than $6.50 per hour, but only for their first 90 consecutive days of employment. After the 90 days, the minimum hourly rate becomes $8. Both of these rates are effective Aug. 1, 2014, and both amounts are scheduled to increase each year.

As before, these minimum wage requirements do not pertain to elected officials; individuals who serve on any governmental board, commission, committee, or other similar body; city volunteers; or any individual employed, directly or indirectly, by the city to provide police or fire protection services.

Beginning in 2017 and each year after, the Department of Labor and Industry will determine with feedback of stakeholders any appropriate minimum wage increase. The minimum wage increase, if any, will be effective in August of the following year.

2014 Minn. Laws ch. 251, Art. I, § 4 amending Minn. Stat. § 268.085. Minor change can delay unemployment benefits. An unemployment benefits applicant has previously not been eligible to receive unemployment benefits for any week the applicant has or will receive severance pay or other payments. As of June 8, 2014, payments such as severance pay “are applied to the period immediately following the later of the date of separation from employment or the date the applicant first becomes aware that the employer will be making a payment.” The date the payment is actually made or received, or that an applicant must agree to a release of claims will not factor into eligibility for unemployment benefits.
2014 Minn. Laws ch. 223 to be codified as Minn. Stat. § 179A.60. New potential labor costs for joint powers entities A new provision governs the initial certification and decertification, if any, of exclusive representatives for a joint powers entity. The effects to budgets is unclear at this point, but it’s entirely possible that the staffing costs associated with being part of or joining a joint powers entity could be affected if it gives rise to more unions in the context of municipal cooperative ventures. While the law only governs the initial certification or decertification of the exclusive representatives, it does include provisions for layoffs, seniority and transition between unions. Please note: this law is only effective for joint powers entities formed on or after Jan. 15, 2015.
2014 Minn. Laws ch. 239, Art. IV, §§ 3 to 5 amending Minn. Stat. §§ 181.939, 181.9435 and 181.944. Nursing station standards enhanced. Since 1998, cities and all other Minnesota employers have been required to make reasonable efforts to provide a room or other location in close proximity to the work area, other than a toilet stall, where an employee can express her milk in privacy. As of Aug 1, 2014, the employer must additionally make reasonable efforts to ensure the location 1) is not a bathroom, 2) is shielded from view and free from intrusion from coworkers and the public, and 3) includes access to an electrical outlet.

As before, the city is to be held harmless if it has made reasonable efforts to comply with this requirement. However, new with this law is authorization for a civil action by the employee to recover any and all damages, including all costs and attorneys fees due to the employer’s lack of reasonable efforts to comply. Also new with this amendment, an employer cannot retaliate against an employee for asserting nursing station rights or remedies under the law.

2014 Minn. Laws ch. 294, Art. III, §§ 5 to 6 amending Minn. Stat. § 353.27, subds. 2 to 3. PERA contributions increased for certain members of the general employees retirement plan. Effective Jan. 1, 2015, for coordinated members of the general employees retirement plan of PERA, both employer and employee base contributions increase from 6.25% of salary to 6.50% of salary. As before, this percentage is in addition to any contribution rate adjustment provided by Minn. Stat. § 353.27.

The contribution rate for a basic member of the general employees retirement plan remains at 9.10% of salary.

2014 Minn. Laws ch. 294, Art. II, §§ 3 to 4 amending Minn. Stat. § 353.01, subds. 2a to 2b. PERA mandatory/excluded employees list modified. Previously, an employee was included or excluded in PERA on the basis of whether the employee ever received more than $425 from a single governmental subdivision in a single month. Effective Jan. 1, 2015, this salary threshold provision is changed so that a city employee must take part in PERA if their annual salary from one governmental subdivision is stipulated in advance and in writing to exceed $5,100 and they are not otherwise specifically excluded by law.

The law goes on to say that if one is initially excluded from PERA participation on the basis of the written stipulation of salary, but then their annual compensation from one governmental subdivision exceeds the stipulated amount in a calendar year, then contributions must be made on behalf of the employee from the first month in which the employee received salary exceeding $425 in a month.

2014 Minn. Laws ch. 239, Art. III, § 4 to be codified as Minn. Stat. § 181.9414. Pregnancy and childbirth accommodations. A new section of law effective May 10, 2014 requires employers to provide reasonable accommodations on request to employees for health conditions related to pregnancy and childbirth. The law defines “reasonable accommodations” to include among other things, temporary transfer to a less strenuous or hazardous position, seating, frequent restroom breaks and limits to heavy lifting. Most reasonable accommodations require the employee to seek advice of their licensed healthcare provider or certified doula. When the advice is sought, the employer can only deny a request if the employer demonstrates undue hardship.

Regardless of advice or hardship, employers must grant requests (by employees with pregnancy or childbirth related health conditions) for more frequent restroom, food, and water breaks; alternative seating; or limits on lifting over 20 pounds. In no case is an employer required to discharge any employee, transfer any other employee with greater seniority or promote any employee. Employers may not retaliate against employees that request or obtain an accommodation, and employers are not allowed to require an employee to take leave or accept an accommodation.

2014 Minn. Laws ch. 239, Art. III, § 2 amending Minn. Stat. § 181.941. Pregnancy and parenting leave expanded As of Aug. 1, 2014, pregnancy and parenting leave are expanded from six to 12 weeks the period of unpaid leave of absence that must be extended to a biological or adoptive parent in conjunction with the birth or adoption of a child, or to a female employee for pregnancy related health conditions.  The length of unpaid leave may be reduced by any period of paid leave so that the total leave does not exceed 12 weeks, unless agreed to by the employer.
2014 Minn. Laws ch. 239, Art. III, § 3 amending Minn. Stat. § 181.9413. Use of sick leave expanded. Effective Aug. 1, 2014, “mother-in-law,” “father-in-law,” and “grandchild” are added to the list of relatives an employee may use personal sick leave benefits to provide care for.  Also, an employee may now use sick leave for “safety leave”  “for the purpose of providing or receiving assistance because of sexual assault, domestic abuse, or stalking.”
General Government
2014 Minn. Laws ch. 308, Art. III, § 5 amending Minn. Stat. § 289A.60, subd. 15. Accelerated payment of June sales tax liability; penalty for underpayment. Modifies the penalty for underpayment of June sales tax that must be paid on an accelerated basis to reflect the decrease in the required payment percentage from 90 percent to 81.4 percent.  Effective for taxes remitted after May 30, 2014.
2014 Minn. Laws ch. 312, Art. III, § 12 amending Minn. Stat. § 216C.146. Authority to invest in community energy efficiency and renewable energy loan revenue bonds. Authorizes cities to invest sinking funds, money, or other funds in community energy efficiency and renewable energy loan revenue bonds issued by the commissioner of management and budget. Effective July 1, 2014.
2014 Minn. Laws ch. 312, Art. III, § 3 to be codified as Minn. Stat. § 116J.395. Border-to-border broadband development grant program. Establishes a program under the Department of Employment and Economic Development to award grants to eligible applicants, including cities, to promote the expansion of access to broadband service in unserved or underserved areas of the state. Grants may be awarded to fund the acquisition and installation of middle-mile and last-mile infrastructure that support broadband service scalable to speeds of at least 100 megabits per second download and 100 megabits per second upload. Effective July 1, 2014.
2014 Minn. Laws ch. 308, Art. I, § 5 amending Minn. Stat. § 477A.013, subd. 8. City formula aid. Corrects a drafting error in calculating formula aid in Minnesota Statutes, section 477A.013, subdivision 8, which impacts the LGA losses to cities that currently get more aid than their unmet need under the formula. Effective beginning with aids payable in 2015. Effective for aids payable in calendar year 2015 and thereafter.
2014 Minn. Laws ch. 308, Art. III, § 11 amending Minn. Stat. § 297A.70, subd. 2. Clarification of city sales tax exemption. Clarifies that the sales tax exemption for cities does not apply to inputs to municipal liquor stores, gas or electric utilities, solid waste hauling services, solid waste recycling services, landfills, golf courses, marinas, campgrounds, cafes, or laundromats. Extends the definition of tax exempt local governments to include joint powers boards and organizations in addition to cities. Effective for sales and purchases after June 30, 2014.
2014 Minn. Laws ch. 308, Art. II, § 11 amending Minn. Stat. § 275.065, subd. 1. Deadline for certification of proposed levy. Extends the deadline for cities to certify the proposed property tax levy from September 15 to September 30 for taxes payable in the following year to the county auditor. Effective beginning with taxes payable in 2015.
2014 Minn. Laws ch. 308, Art. VI, § 4 amending Minn. Stat. § 469.177, subd. 3. Economic development districts fisal disparities contribution option. Allows cities to elect to make the fiscal disparities contribution for economic development districts in the same ways available to other types of districts. This allows a city to make the contribution out of its tax base. Prior to this amendment, the contribution had to be made from the tax increment finance district’s increment. Effective for districts for which the request for certification is made after June 30, 2014.
2014 Minn. Laws ch. 308, Art. VI, § 3 amending Minn. Stat. § 469.1763, subd. 3. Five year rule extended for redevelopment districts certified after April 20, 2009 and before June 3 For redevelopment districts certified after April 20, 2009, and before June 30, 2012, extends the period that revenues derived from tax increments are considered to have been expended on an activity within the district from five years to eight years after certification of the district. Effective for districts for which the request for certification was made after April 20, 2009.
2014 Minn. Laws ch. 305, § 19 amending Minn. Stat. § 326B.106. Municipal agreement for code inpsection at public buildings and state-licensed facilities. Requires the commissioner of the Department of Labor and Industry to enter into an agreement with a municipality for plan review, inspection, code administration, and code enforcement on public buildings and state-licensed facilities located in the jurisdiction of the municipality if the municipalityrequests to provide those services and the comissioner determines that that the municipality has enough adequately trained and qualified inspectors to provide the service. Requires the commissioner to provide the criteria used to make this determination to the municipality in writing. If the commissioner determines the municipality lacks enough adequately trained and qualified inspectors to provide the required services, the commissioner must provide a written explanation of the deficiencies to the municipality and the municipality must be given an opportunity to remedy any deficiencies and request reconsideration of the decisision. The municipality may appeal a final decision of the commissioner under the Administrative Procedure Act
2014 Minn. Laws ch. 305, § 20 amending Minn. Stat. § 326B.106. Municipal agreement for code inpsection of certain bulding projects at public buildings and state-li Requires the commissioner of the Department of Labor and Industry to enter into an agreement with a municipality for inspection, code administration, and code enforcement of reserved projects on public buildings and state-licensed facilities located in the jurisdiction of the municipality if the municipality has a designated building official. "Reserved projects" include (1) roof covering replacement thta does not add roof load; (2) towers requiring special inspection; (3) single-level storage buildings not exceeding 5,000 square feet; (4) exterior maintenance work, including replacement of siding, windows, and doors; (5) HVAC unit replacement that does not add roof load or ventilation capacity; (6) accessibility upgrades not involving building additions or structural alterations; (7) remodeling that does not change the building's occupancy, structural system, exit access, or discharge pattern, or mechanical load; and (8) other projects determined to be reserved by the commissioner.
2014 Minn. Laws ch. 253 to be codified as Minn. Stat. § 16C.285. New responsible contractor requirements. A new law restricts the contractors a city may regard as “lowest responsible bidder” for purposes of competitive bidding. If a municipality has a construction contract worth more than $50,000, and the municipality will award based on either “lowest responsible bidder” or best value selection, to be eligible to be the awarded the contract, the prime contractor must meet minimal eligibility requirements and certify to a municipality a signed statement under oath that they meet the requirements. The same is true for subcontractors, except that the value of the subcontract doesn’t matter.

The law contains several new requirements for a municipality’s solicitation documents. For instance, a municipality must include in solicitation documents either the new definition of a “responsible contractor,” or a reference to the statutory definition. and a statement that any contractor or subcontractor that does not meet those requirements or fails to verify those requirements is not eligible to be awarded a construction contract. Under the new law, municipalities explicitly retain discretion to establish their own additional criteria for defining a responsible contractor. The new definition, certification requirement and solicitation document changes all take effect for construction contracts entered into based on solicitation documents issued on or after Jan. 1, 2015.

2014 Minn. Laws ch. 301 amending Minn. Stat. § 357.17. Notary public service fees increased Notary public fees have been raised for the first time since 1986. For notary public services listed in the statute, the allowable fee which may be charged is increased from $1 to $5. The change is effective Aug. 1, 2014.
2014 Minn. Laws ch. 254, § 2 amending Minn. Stat. § 216B.098, subd. 5. Protection from electricity shut off for customers using medically necessary equipment. A city electrical utility must reconnect -- or cannot shut off service -- to a customer’s residence where life–sustaining medical equipment requiring electricity is in use. The city utility must receive certification of the necessity for service. At first, initial certification may be by telephone with written certification within five business days. The written certification must come from specific medical personnel, stating that failure to reconnect or continue electrical service will impair or threaten the health or safety of a resident in the customer’s home.

Certifications apply for only six months from the time they are written. A city electrical utility may decide to extend, or renew a certification for up to one year from the date it is written. A certification may be renewed by the same or another medical professional who meets the requirements listed above. As in the original certification, a renewal must state that failure to reconnect or continue electrical service will impair or threaten the health or safety of a resident in the customer’s home.

A customer with medically necessary equipment whose account is in arrears must contact and enter into a payment agreement with the utility. The payment agreement must consider a customer's financial circumstances and any extenuating circumstances of the household. The payment agreement may, at the discretion of the utility, contain a provision by which the utility forgives all or a portion of the amount in which the account is in arrears. In that situation, the person is no longer required to pay the forgiven arrearages on the account.

2014 Minn. Laws ch. 272, Art. VII, § 1 amending Minn. Stat. § 134.355, subd. 8. Regional library system hours adjustable. Regional libraries may apply for “telecommunications aid” to pay for data and video access maintenance, equipment, or installation of telecommunication lines. Previously this aid was only available if the receiving regional library building was open at least 20 hours a week. Effective Aug. 1, 2014, the department of education can excuse the 20-hour requirement for short-term closings for repair, in response to certain economic circumstances or if there is documented seasonal use patterns to warrant fewer hours.
2014 Minn. Laws ch. 308, Art. III, § 4 amending Minn. Stat. § 289A.20, subd. 4. Sales and use tax, remittance of June liability. Increases the annual tax liability threshold from $120,000 to $250,000 for vendors required to remit June sales tax on an accelerated basis and decreases the percentage of June sales tax liability that must be paid on an accelerated basis to reflect the decrease in the required payment percentage from 90 percent to 81.4 percent.  Effective for taxes remitted after May 30, 2014.
2014 Minn. Laws ch. 308, Art. II, § 8 to be codified at Minn. Stat. § 272.0295. Solar energy production tax. Creates a tax on production of electricity from a solar energy generating system with a capacity exceeding one megawatt alternating current that is used as an electric power source and provides that the revenues from the taxes imposed must be distributed to local taxing jurisdictions in which the solar energy generating system is located as follows: 80 percent to counties and 20 percent to cities and townships. Effective beginning with taxes payable in 2015. 
2014 Minn. Laws ch. 287, § 22 amending Minn. Stat. § 331A.12. Technical change finally allows soliciting transportation bids online. For many years, website advertisement (instead of or in addition to newspaper publication) for bids on transportation projects has been available to “local public corporations” if the governing body designated the website for these purposes and annually published in the newspaper a notice to this effect. Due in part to a lack of definition of “local public corporation,” (a term that doesn’t appear anywhere else in statute) the department of transportation held for years that cities were not “local public corporations.” Effective, Aug. 1, the term “local public corporation” has now been changed to “political subdivision,” which explicitly includes cities.

At the beginning of 2015, when a city council designates its official newspaper, it may also designate that any publication of advertisements for transportation project bids will be made on the city’s website instead or as well as in the newspaper. A notice to this effect must be published in the official newspaper annually as well. Website publication must be done in substantially the same format and for the same time period as would be required were it published in the official newspaper. Once this is done, website publication of advertisement for bids on transportation projects will satisfy any newspaper publication requirements of the same. Please note, the record of website publication must be retained permanently and kept available to the public.

Public safety
2014 Minn. Laws ch. 296, Art. XII, § 1 amending Minn. Stat. § 69.051, subd. 1. CPA required for particular relief association financial statement. Certain volunteer fire relief associations with assets or liabilities of less than $200,000 in the prior year or previous year must present a certified financial statement to the city council, keep it in the relief association office for public inspection and ultimately file it with the state auditor. Until now, the financial statement could be certified by an “independent” accountant or auditor. Effective May 18, 2014, this financial statement must be certified by a certified public accountant or the state auditor.
2014 Minn. Laws ch. 296, Art. XII, § 2 amending Minn. Stat. § 69.051, subd. 3. Eligibility for fire state aid clarified. Generally speaking, the clerk of a city with a fire department yet no relief association must submit a financial report to the state auditor by July 1 detailing receipts and disbursements by the city for the fire department’s activities. The potential penalty is a withholding of fire state aid. Effective for fire state aid payable in October of this year, a city without a relief association will remain eligible for the aid if even if it doesn’t supply this report if 1) the city doesn’t participate in the statewide lump-sum firefighter retirement plan, 2) the city provides retirement coverage to firefighters through the PERA police and fire plan, and 3) PERA certifies to the state auditor that the city provided employer contributions to the police and fire fund worth at least as much as the fire state aid received by the city in the prior calendar year.
2014 Minn. Laws ch. 308, Art. II, § 1 amending Minn. Stat. § 144F.01, subd. 4. Emergency medical services special taxing district property tax levy authority. Increases the amount an emergency medical services special taxing district can levy from $400,000 to $550,000 beginning with taxes payable in 2016. Effective for assessments in 2015, taxes payable in 2016, and thereafter.
2014 Minn. Laws ch. 179 to be codified as Minn. Stat. § 471.155. New lifeguard training requirement. Effective Jan. 1, 2015, if a city, county, town or other political subdivision directly or indirectly provides lifeguards for a beach (“an area abutting a body of water other than a swimming pool”) owned or operated by a political subdivision, there is a new training requirement for those lifeguards. Each lifeguard must be certified in first aid and adult, child and infant CPR. In addition, the lifeguards must have American Red Cross lifeguard certification or its equivalent. The law also clarifies that when a lifeguard is on duty, their function must be to supervise the public’s safety.
2014 Minn. Laws ch. 244 amending Minn. Stat. § 626.8468 et. al. Part-time peace officer licensing discontinued. Effective June 30, 2014, the state will no longer license part-time police officers. Licensed part-time peace officers who are unemployed on or after June 30 will have their license canceled by the POST Board. If a city has employed or employs one or more licensed part-time peace officers before June 30, 2014, the city may continue to employ those officers indefinitely, and while they remain employed with that city, the part-time license is valid. However, should the city remove the part-time officer at any time after June 30, 2014, the POST Board is required to cancel the part-time license.
2014 Minn. Laws ch. 308, Art. I, § 1 to be codified as Minn. Stat. § 69.022. Volunteer retention stipend aid pilot. Creates a three year pilot program authorizing the commissioner of revenue to pay annual retention stipends of $500 to each qualified volunteer firefighter, ambulance attendant, and emergency medical responder serving a provider headquartered in the pilot area.  The pilot area is comprised of four groups of counties: (1) Southern Minnesota: Faribault, Fillmore, Freeborn, Houston, Watonwan; (2) West Central Minnesota: Chippewa, Kandiyohi, Redwood, Renville; (3) • Central Minnesota: Morrison, Todd; (4) Northern Minnesota: Beltrami, Clearwater, Mahnomen . The pilot provides for aid to be paid in 2015, 2016, and 2017 for volunteer service in 2014, 2015, and 2016. Cities must apply to the commissioner of revenue yearly for this aid. The pilot sunsets in 2017. Effective the day following enactment.
Transportation
2014 Minn. Laws ch. 295, § 15 amending Minn. Stat. § 174.50, subd. 7. Bridge grant uses clarified. A change in law adds a non-exhaustive list of ways a city may use a bridge grant provided by the state, including for abandonment of a faulty bridge. Effective Aug. 1, 2014, cities may use bridge grants for construction or reconstruction of bridges, including but not limited to matching federal grants, abandoning a deficient bridge that will not be replaced and paying the costs of building a road or street in lieu of a deficient bridge in some cases.
2014 Minn. Laws ch. 227, Art. I, § 16 amending Minn. Stat. § 174.50, subd. 6b. Small city bridge grants can pay for construction. Prior to mid-2007, state bridge grants for cities with a population of 5,000 or less and a net tax capacity of under $200,000 were available and could be used to pay for design and preliminary engineering of bridges on city streets. As of Aug. 1, 2014, those small city bridge grants are again available and regardless of a city’s net tax capacity. They may now be used for construction costs as well, following the first $10,000 paid for design, engineering and the first $10,000 paid for bridge approach work.
2014 Minn. Laws ch. 312, Art. XI, § 39. Transit service on election day. Requires transit services that receive operating assistance from the public transit participation program and that contract to provide fixed route public transit, to provide fixed route public transit service free of charge on a day a state general election is held. Effective July 1, 2014 and expires November 5, 2014.
2014 Minn. Laws ch. 312, Art. III, § 32 to be codified as Minn. Stat. § 473.41. Transit shelters and stops. Requires transit authorities to establish design specifications for transit shelters that include: (1) engineering standards; (2) maximization of protection from wind, snow, and other elements; (3) warming capability; and (4) accessibility for the elderly and disabled. Also requires transit authorities to ensure shelters are maintained in good working order and accessible, including keeping transit shelters clean and free from graffiti and removing snow and ice so that the elderly and disabled can enter and exit transit shelters.   Effective July 1, 2014.