2017 - 2018 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO SENATE BILL 388
October 19, 2017 - Offered by Senator Tiffany.
1An Act to repeal
227.115 (5); to renumber and amend
59.692 (1k) (a) 2., 2
66.1105 (2) (ab) and 227.115 (2); to amend
13.099 (2), 13.099 (3) (title), 13.099 3
(3) (a) (intro.), 13.099 (3) (a) 2., 13.099 (3) (a) 3., 13.099 (3) (b), 66.0617 (7), 4
66.10015 (2) (b), 66.1105 (2) (f) 3. (intro.), 66.1105 (4) (c), 66.1105 (4) (gm) 4. a., 5
66.1105 (4) (gm) 4. bm., 66.1105 (4) (gm) 6., 66.1105 (4m) (b) 2., 66.1105 (6) (a) 6
8., 66.1105 (6) (g) 3., 70.05 (4m), 70.47 (1), 70.47 (7) (aa), 70.47 (7) (af), 227.115 7
(2) (title), 227.115 (3) (title), 227.115 (3) (a) (intro.), 227.115 (3) (a) 2., 227.115 8
(3) (a) 3., 227.115 (3) (b), 227.15 (1) and 706.05 (2m) (b) 1.; to repeal and
227.115 (1) and 227.19 (3) (g); and to create
13.099 (3) (a) 6., 13.099 10
(3) (c), 13.099 (3) (d), 59.692 (1k) (a) 2. c., 66.1105 (2) (n) 1., 66.1105 (2) (n) 2., 11
66.1105 (2) (o), 66.1105 (4) (gm) 4. am., 66.1105 (6) (a) 14., 66.1105 (7) (ak) 5., 12
70.05 (4n), 101.63 (5m), 227.115 (2) (b), 227.115 (3) (a) 6., 227.115 (3) (c), 227.115 13
(3) (d), 348.16 (3) (d) and 349.16 (3) (d) of the statutes; relating to: review by
1the Department of Safety and Professional Services of the state electrical
2wiring code applicable to one-family and two-family dwellings; the legal
3description required for recording an easement for the construction, operation,
4or maintenance of sewer lines or facilities; land development; effect of changes
5in requirements for development-related permits or authorizations on persons
6who apply for the permits or authorizations; exempting certain vehicles
7delivering propane from class B highway weight limitations and certain special
8or seasonal weight limitations; a property owner's right to refuse entry into his
9or her home for assessment purposes; reviews of and reports on bills and
10proposed administrative rules that affect housing; maintenance and
11construction activities on certain structures under a county shoreland zoning
12ordinance; and making an appropriation.
Analysis by the Legislative Reference Bureau
This substitute amendment makes various changes relating to the following:
1. Review by the Department of Safety and Professional Services of the state
electrical wiring code applicable to one-family and two-family dwellings.
2. The legal description required for recording an easement for the
construction, operation, or maintenance of sewer lines or facilities.
3. Expanding the use of tax incremental financing for workforce housing
development and requiring a reduction in the amount of certain impact fees.
4. The effect of changes in requirements for development-related permits or
authorizations on persons who apply for the permits or authorizations.
5. Exempting certain vehicles delivering propane from class B highway weight
limitations and certain special or seasonal weight limitations.
6. Reviews of and reports on bills and proposed administrative rules that affect
7. Prohibits a Department of Natural Resources shoreland zoning standard
and a county shoreland zoning ordinance from restricting certain maintenance and
construction activities with respect to certain structures.
review of state electrical wiring code
This substitute amendment requires the DSPS to review, once every six years,
those portions of the state electrical wiring code that apply to one-family and
two-family dwellings. In reviewing the code, DSPS must consult with the Uniform
Dwelling Code Council and any council or committee created by the secretary of
DSPS to advise DSPS regarding the code.
formal requisites for recording sewer easements
This substitute amendment provides that a document that is recorded in the
real estate records does not need to contain a full legal description of an easement
for the construction, operation, or maintenance of sewer lines or facilities. Under
current law, with certain exceptions, a document that affects title to land in this state
that is recorded in the real estate records must contain a full legal description of the
property affected by the document. One exception provides that a full legal
description is not required for a description of an easement for the construction,
operation, or maintenance of electric, gas, railroad, water, telecommunications, or
telephone lines or facilities. The substitute amendment adds sewers to the types of
easements that are not required to have a full legal description.
tax incremental financing, impact fees
This substitute amendment authorizes the creation of workforce housing
development tax incremental districts and changes the method of imposing certain
Under the current tax incremental financing program, a city or village may
create a TID in part of its territory to foster development under certain conditions.
Currently, towns and counties also have a limited ability to create a TID under
certain limited circumstances. Before a city or village may create a TID, several
steps and plans are required. These steps and plans include public hearings on the
proposed TID within specified time frames, preparation and adoption by the local
planning commission of a proposed project plan for the TID, approval of the proposed
project plan by the common council or village board, approval of the city's or village's
proposed TID by a joint review board (JRB) that consists of members who represent
the overlying taxation districts, and adoption of a resolution by the common council
or village board that creates the TID as of a date provided in the resolution.
Also under current law, once a TID has been created, the Department of
Revenue calculates the “tax incremental base" value of the TID, which is the
equalized value of all taxable property within the TID at the time of its creation. If
the development in the TID increases the value of the property in the TID above the
base value, a “value increment" is created. That portion of taxes collected on the
value increment in excess of the base value is called a “tax increment." The tax
increment is placed in a special fund that may be used only to pay back the project
costs of the TID.
The project costs of a TID, which are initially incurred by the creating city or
village, include public works such as sewers, streets, and lighting systems; financing
costs; site preparation costs; and professional service costs. DOR authorizes the
allocation of the tax increments until the TID terminates or, generally, 20 years, 23
years, or 27 years after the TID is created, depending on the type of TID and the year
in which it was created. Also under current law, a city or village may not generally
make expenditures for project costs later than five years before the unextended
termination date of the TID. Under certain circumstances, the life of the TID, the
expenditure period, and the allocation period may be extended. A TID is required
to terminate, under current law and with some exceptions, once its project costs are
Generally under current law, project costs may be expended to benefit
residential development but only certain TIDs for which a project plan was approved
before September 30, 1995, or for a mix-use development. With regard to a
mixed-use development, lands proposed for newly platted residential use may not
exceed 35 percent, by area, of real property within the TID.
Under the substitute amendment, a workforce housing TID may contain only
newly platted residential uses, 100 percent of which must be workforce housing.
Before such a TID may be created, the JRB must approve the TID by a unanimous
vote. For other TIDs, only a majority vote is required. A workforce housing TID has
a maximum life of 15 years, and DOR may allocate tax increments for only 15 years.
Also under the substitute amendment, workforce housing is defined to mean
housing based on the following two factors, which are subject to the five year average
median costs as determined by the U.S. bureau of census:
1. Housing that costs no more than 30 percent of the household's gross median
2. The construction cost per housing unit, including rental housing, is no more
than 80 percent of the median price for new residential construction in the county.
Under current law, if a city, village, or town imposes an impact fee on a
developer to pay for certain capital costs that are necessary to accommodate land
development, the ordinance may provide for an exemption from, or a reduction in the
amount of, impact fees on land development that provides low-cost housing. Under
this substitute amendment, the impact fee exemption or reduction provisions also
apply to workforce housing. Current law prevents the shifting of an exemption from
or reduction in impact fees to any other development in the land development in
which the low-cost housing is located. The substitute amendment applies this
provision to workforce housing as well.
Under current law, if a project requires more than one approval or approvals
from more than one political subdivision and the applicant identifies the full scope
of the project at the time of filing the application for the first approval required for
the project, the existing requirements applicable in each political subdivision at the
time of filing are applicable to all subsequent approvals required for the project.
Under this substitute amendment, for any project that requires an approval,
if the applicant identifies the full scope of the project at the time of filing the
application for the first approval required for the project, the existing requirements
applicable in each political subdivision from which a subsequent approval is
necessary at the time of filing are applicable to all subsequent approvals required for
Under current law, in general, no person may operate on a highway any vehicle
or combination of vehicles that exceeds certain statutory weight limits unless that
person obtains a permit issued by the Department of Transportation or a local
highway authority. Among the weight limitations are, generally, limitations on the
gross weight imposed on the highway by the wheels of any one axle or by consecutive
axles of the vehicle. In general, the maximum weight that may be imposed on the
highway by one axle is 20,000 pounds and the maximum weight that may be imposed
on the highway by two axles is 35,000 pounds if the axles are eight feet apart and
34,000 pounds if the axles are less than eight feet apart.
Also under current law, local highway authorities may impose special or
seasonal weight limitations on highways that, because of deterioration or climatic
conditions, would likely be seriously damaged or destroyed if limitations were not
imposed. For vehicles carrying certain commodities or being used to perform certain
services, local highway authorities may set different weight limitations or exempt
the vehicles from the special or seasonal weight limitations if an exemption or
limitation is in the interest of public health, safety, and welfare.
Local authorities may also designate highways under their jurisdiction as class
“B” highways. With limited exceptions, the maximum gross weight and per-axle
vehicle weight for vehicles on a class “B” highway is 60 percent of the weight allowed
by statute if the vehicles were operating on a highway that is not designated as a
class “B” highway.
This substitute amendment provides that special or seasonal weight
limitations imposed by a highway authority and class “B” highway weight
limitations do not apply to a motor vehicle that is being operated to deliver propane
for heating purposes if the gross weight imposed on the highway by the vehicle does
not exceed 30,000 pounds, for a vehicle with a single rear axle, or 40,000 pounds, for
a vehicle with tandem rear axles, and, if the motor vehicle is a tank vehicle, the tank
is loaded to no more than 50 percent of the capacity of the tank. The substitute
amendment provides that a tank vehicle must be equipped with a gauge on the tank
that shows the amount of propane in the tank as a percent of capacity of the tank and
must carry documentation of the capacity of the tank either on the cargo tank or in
the cab of the vehicle.
Property owner rights regarding assessments
Current law prohibits a person from appearing before the board of review to
contest the assessed value of the person's property if the person has refused a
reasonable written request from the assessor to view the property. A person who is
prohibited from appearing before the board of review is also barred from filing a
claim for an excessive assessment with the taxation district.
This substitute amendment allows a person who has refused an assessor's
request to view the interior of a person's residence to appear before the board of
review to contest the property's assessed value and, ultimately, to file a claim with
the taxation district for an excessive assessment. The substitute amendment also
provides that the assessor may not increase the value of a person's property based
solely on the person's refusal to allow entry to the assessor. In addition, the
substitute amendment requires an assessor to provide written notice to each owner
of residential property regarding the property owner's right to refuse entry to his or
her residence for property tax assessment purposes. The substitute amendment
retains the authority of the assessor under current law to enter onto property to
conduct an exterior inspection of the property.
The substitute amendment also requires the board of review to meet at any time
during the 45-day period beginning on the fourth Monday of April, but no sooner
than seven days after the assessment roll is open for examination, instead of the
30-day period beginning on the second Monday of May, as provided under current
law. In addition, the substitute amendment requires a property owner who is asked
by the assessor to provide income information to submit that information no later
than seven days before the first meeting of the board of review.
reports on bills and rules affecting housing
Current law requires the Department of Administration to prepare a report on
any bill or any proposed administrative rule that directly or substantially affects the
development, construction, cost, or availability of housing in this state. A report for
a bill must be completed within 30 days after the bill affecting housing is introduced,
and a report for a proposed rule must be completed within 30 days after the rule is
submitted to DOA and must be completed before the rule is submitted to the
Legislative Council Staff for review. A report on either a bill or a proposed rule that
affects housing must include information on the effect of the bill or proposed rule on
the state housing strategy plan, the cost of constructing, rehabilitating, improving,
or maintaining housing, the cost and availability of financing to purchase or develop
housing, the purchase price of housing, and other housing costs such as rent, utilities
and property taxes.
This substitute amendment does all of the following with respect to reports on
bills or rules affecting housing:
1. Retitles such a report a “housing impact analysis.”
2. Requires a housing impact analysis for any bill or proposed rule that may
increase or decrease, either directly or indirectly, the cost of the development,
construction, financing, purchasing, sale, ownership, or availability of housing in
3. Makes various changes to the information and analysis that is required to
be included in a housing impact analysis and specifies how that information is
expressed in the report.
4. With respect to a housing impact analysis for a proposed rule, requires the
agency proposing the rule, rather than DOA, to prepare the housing impact analysis.
The substitute amendment also requires that a housing impact analysis be included
in an agency's submission to the Legislative Council Staff during the rule-making
process and that an agency prepare a revised housing impact analysis if the housing
impact of the rule is significantly changed.