2014 Legislative UpdateMinnesota Public Risk Management AssociationSeptember 11, 2014

Anne Finn, Assistant Director, IGRPatrick Hynes, Intergovernmental Relations Counsel

League of Minnesota Cities

Outline

2014 Session Overview Employment Law Data Practices The Civil Law “Junk

Drawer” Questions

Employment Law

Women’s Economic Security Act (WESA)

Minimum Wage

Joint Powers Entity Creation and Employee Protection

PERB

Confidential Employees

Miscellaneous Employee Regulations

Establishes Unemployment Insurance

Eligibility in Cases of Sexual Assault and

Stalking (Minn. Stat. § 268.095)

Pregnancy and Parenting

Leave (181.941)

Sick and Safety Leave

(181.9413)

Women’s Economic Security Act (ch. 239)

Women’s Economic Security Act

Familial Status (Minn. Stat. § 363A.08) “Familial Status” is added to the employment

provisions in the Minnesota Human Rights Act Defined as the condition of one or more minors being

domiciled with either their parent or parents or the minor's legal guardian,

or the designee of the parent or parents or guardian

with the written permission of the parent or parents or guardian.

Reasonable Pregnancy Accommodations (Minn. Stat. § 181.9414)

Requests like more frequent restroom, food and water breaks must be granted unless they are an unreasonable burden

Nursing Mothers (Minn. Stat. § 181.939)A Room, other than a bathroom, must be made available, free from intrusion and with an electrical outlet

Minimum Wage (Ch. 166)

$8.00 per hour beginning August 1, 2014

$9.50 per hour beginning August 1, 2016

$6.50 per hour beginning August 1, 2014

$7.75 per hour beginning August 1, 2016

“Large employer” is defined as having a budget of at least $500,000 (decreased from $650,000)

Every large employer must pay employees a rate of at least:

Every small employer must pay employees a rate of:

“Small employer” is defined as having a budget of less than $500,000

Joint Powers Entities & Bargaining Units (Ch. 223 – Minn. Stat. § 179A.60)

Sets procedure when 2 or more gov’t units form a joint powers entity that will employ individuals who previously were union employees Bureau of Mediation Services determines the

appropriate bargaining unit for all employees The bargaining unit of transferred employees is

presumed to be appropriate unless BMS determines it inappropriate

BMS may approve alternative unit agreed to by all parties

Establishes a process to determine which existing union contracts will apply prior to execution of new contractEffective for entities established on or after January 15, 2015.

Joint Powers Entities & Bargaining Units (Ch. 223 – Minn.

Stat. 179A.60) Seniority: Based on continuous service

with Joint Powers entity and member entity. Layoffs and recalls based on seniority.

Decertification: No petition can be considered in the first year.

Data Sharing: Law provides for sharing of private and confidential data between member units and Joint Powers Entity.

Note: Provisions prohibiting privatization of services, guaranteeing wages, and requiring retraining were removed during negotiations.

Public Employee Relations Board (PERB) (Ch. 211 – Minn. Stat §

179A.41)

PERB Membership (3 Members)

•Governor appoints two members:• One officer or member of exclusive representative of

public employees• one member represents public employers

•The two gubernatorial appointees appoint a third member, representing the public at large

PERB will hear unfair labor practice charges under the Public Employment Labor Relations Act (PELRA)

Data Practices & The Open Meeting Law

Data Security The “Timberjay” Bill Checking Account

Data Social Media and

the Open Meeting Law

Data Practice Compliance Resources

DATA SECURITY (CH. 284)

Introduced in 2013 largely in response to DVS data breach litigation and news reports

Applies a number of provisions in Minn. Stat. § 13.055 that previously applied only to state agencies

New requirements apply to ALL private data

Effective Date: August 1, 2014

DATA SECURITY: Procedures

Minn. Stat. 13.05, sud. 5

Existing statutory safeguard requirements must now also include . . . procedures for ensuring not public

data are accessible only to persons whose work assignments reasonably requires access to the data and that

not public data is only being accessed by those persons for purposes described in the procedures

DATA SECURITY:“Investigation of Data Breaches”

DATA SECURITY:“Data Breach Reporting”

Upon final disposition of disciplinary action, a report on a breach must include, at a minimum:•Description of the type of data improperly accessed

•Number of individuals whose data was improperly accessed

•If there was disciplinary action taken, the name of each employee who improperly accessed the data; and

•Final disposition of any disciplinary action taken

DATA SECURITY:“Personal Information”

Personal Information defined in Minn. Stat. 325E.61, subd. 1 as

• A person’s first name or initial and last name stored in combination with• Social Security Number; or• Driver’s License Number; or• Account Number or Credit Card Number WITH

• Password, security code, or access code• IF: the data element is not secured by encryption or is

secured with encryption key, password, or other means necessary for reading

Cities must perform,At least annually, A Comprehensive Security Assessment of Any stored “Personal Information”

“Timberjay” Legislation

(ch. 293)Response to Supreme Court holding in Helmberger v. Johnson Controls, Inc., 839 N.W. 2d 527 (2013)

Minn. Stat. § 13.05, Subd. 11. Privatization.(a) If a government entity enters into a contract with a private person to perform any of its functions, the government entity shall include in the contract terms that make it clear that all of the data created, collected, received, stored, used, maintained, or disseminated by the private person in performing those functions is subject to the requirements of this chapter and that the private person must comply with those requirements as if it were a government entity.

Supreme Court held that this was “simply a notice provision . . .” and the language does not impose “any direct, affirmative obligations . . .”

• Holding was contrary to a 2001 IPAD opinion (01-075), stating that 13.05 did create an affirmative obligation to comply with the MGDPA

“Timberjay” Legislation

(ch. 293)Minn. Stat. § 13.05, Subd. 11. Privatization.(a) If a government entity enters into a contract with a private

person to perform any of its functions, the government entity shall include in the contract terms that make it clear that all of the data created, collected, received, stored, used, maintained, or disseminated by the private person in performing those functions is subject to the requirements of this chapter and that the private person must comply with those requirements as if it were a government entity. All contracts entered into by a government entity must include a notice that the requirements of this subdivision apply to the contract. Failure to include the notice in the contract does not invalidate the application of this subdivision.

2nd Big Question: What is a “government function”?(See, Justice Page’s dissent.)

This language largely restores Minnesota to status quo ante. The big question is whether entities were aware of what status quo ante was.

Checking Account Data

Laws 2014, ch. 208, amendingMinn. Stat. § 13.37, subd. 1

Effective Aug. 1, 2014.

•“Checking account data” is now defined as Security Data in Minn. Stat. § 13.37, subd. 1.

• Security Data is defined as private data on individuals.

“The use of social media by members of a public body does not violate this chapter so long as the social media use is limited to exchanges with all members of the general public.

For purposes of this section, email is not considered a type of social media.”

Open Meeting Law and Social Media Use

Laws 2014, ch. 274, creatingMinn. Stat. § 13D.065

Effective Aug. 1, 2014.

Compliance : Information Policy Analysis (IPAD) (www.ipad.state.mn.us)

Data Practices Compliance: League of Minnesota Cities

• Free Webinar: “To Share or Not to Share: Data Practices Compliance”• September 18, 2014, 10 a.m. – 11:00 a.m.• Register Here

• Seminar (Part Two): “Effectively Managing and Sharing Gov’t Data”• Date TBD

• Focus on New Laws: Data Practices Act

• Focus on New Laws: Women’s Economic Security Act (WESA)

CIVIL LAW “JUNK DRAWER”

Passed Into Law “Responsible

Contractors”

Indemnification Agreements

Registration of AEDs

Did Not Become Law Residential

Sprinklers Alternative

Publication Diversion programs

“Responsible Contractors”(Ch. 253 – Minn. Stat. § 16C.285)

The contractor must: Provide Certification under

oath that it is a responsible contractor

Verify that all subcontractors it intends to use are responsible contractors

Provide a list of all subs it intends to use on a project with the bid and submit subcontractor verifications if requested

The city bid must contain: Definition of or reference to the

responsible contractor statute Statement that contractor failing

to meet requirement is ineligible to be awarded contract

Statement that submitting false oath makes contractor ineligible and CAN result in termination of contract

Statement that contractor shall, upon request, provide certificates of all subcontractors on the project

1) Only a “responsible contractor” may be awarded public bids >$50k

2) A “responsible contractor” cannot have violated any of a long list of state and federal labor, wage, and safety laws, rules, and regulations

“Responsible Contractors”

Effective January 1, 2015 and applies to contracts entered into based on solicitation documents issued on or after that date

Protections for Cities:

• City may accept the sworn statement as sufficient to determine compliance and shall not be liable for awarding a contract in reasonable reliance on the sworn statement

• City is not liable for awarding or failing to award a contract based on a reasonable determination that the contractor failed to verify compliance or falsely stated compliance

• Nothing restricts the ability of a city to establish additional criteria for defining a responsible contractor

Indemnification Agreements & Design Professional Contracts

Minn. Stat. § 604.21 defines “design professional contract” as any contract where a portion of work is to be performed by a professional licensed under Minn. Stat. 326B.02 (e.g., architects & engineers).Any provision purporting to indemnify, hold harmless, or defend the indemnitee from anyone other than indemnitor is void and unenforceable,• EXCEPT: Prohibition does not apply to the extent the

obligation to indemnify, hold harmless or defend is able to be insured.Any provision making the contract subject to the laws of

another state or requires dispute resolution in another state is void. • Applies to contracts for improvements to real property,

highways, roads, or bridges located in Minnesota.Applies to contracts entered into on or after August 1, 2014.

Registration of Public AEDs

Public Access AEDs

Public AED is one intended by its marking or display to be used or accessed by the public who may be in the vicinity of the device. • “Mobile AEDs” are exempted

Must be registered

A Registry must require a maintenance program. Examples include the following:• Minnesota AED Registry;• National AED Registry;• iRescU; or• A manufacturer-specific

program

Must have emergency response plan

Plan must be appropriate for the nature of the facility the AED is intended to serve

Registration of Public AEDs

Omnibus Health Bill, Ch. 291, Art. 8, sec. 27: Minn. Stat. § 403.51.

Public Safety Agencies: An agency may, but is not required to, oversee compliance with the law, and may direct the removal of a public AED or signs if the device is not ready for immediate use.

Required: Must be reasonably maintained and comply with manufacturer recall and safety notices.• Registration must occur within 30 working days of obtaining

the AED.

Encouraged: The use of universal AED sign is encouraged, but not required.

Civil Liability: The law does not create any civil liability on part of the owner, nor does it preclude civil liability under any other law.

Effective August 1, 2014

Did Not Become LawResidential Fire sprinkler prohibition failed. 2012 State Building Code will

require fire sprinklers in: New Townhomes New one-family homes > 4,500 sq. ft. New two-family homes

Fire sprinklers NOT required for additions, alterations, or repairs of existing buildings2012 SBC will go into effect Summer 2014

DID NOT BECOME LAW

Alternative Publication Option

Veteran’s Preference Hearing Changes

Traffic Ticket Diversion Program

Authorization

License Plate Reader Data Classification

Massage Therapist Regulation

Labor Peace Agreement Requirements

Special Service Districts for Mixed Use

Properties

Levy LimitsStreet Improvement Districts

Agency rulemaking revisions

League of Minnesota Cities:Additional Resources

• Free Webinar: “To Share or Not to Share: Data Practices Compliance”• September 18, 2014, 10 a.m. – 11:00 a.m.• Register Here

• Seminar (Part Two): “Effectively Managing and Sharing Gov’t Data”• Date TBD

• Legislative Action Center

• 2014 Law Summaries

• Focus on New Laws: Highlighting laws of particular interest to cities

• Focus on New Laws: Data Practices Act

• Focus on New Laws: Women’s Economic Security Act (WESA)

Questions? Contact IGR Staff

Gary CarlsonIGR Directorgcarlson@lmc.org

Heather CorcoranIGR Liaisonhcorcoran@lmc.org

Craig JohnsonIGR Representativecjohnson@lmc.org

Patrick HynesIGR Counselphynes@lmc.org

Anne FinnIGR Assistant Directorafinn@lmc.org Ann Lindstrom

IGR Representativealindstrom@lmc.org

Laura ZieglerIGR Liaisonlziegler@lmc.org