1.1.................... moves to amend H.F. No. 860 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1

1.4HIGHER EDUCATION APPROPRIATIONS

1.5

Section 1. SUMMARY OF APPROPRIATIONS.

1.6 Subdivision 1. Summary by fund. The amounts shown in this section summarize
1.7direct appropriations, by fund, made in this article.

`1.8`			2010		2011		Total
`1.9`	General	$	1,388,543,000	$	1,383,285,000	$	2,771,828,000
`1.10`	Health Care Access	$	2,157,000	$	2,157,000	$	4,314,000
`1.11`	Federal Stabilization	$	180,920,000	$	180,920,000	$	361,840,000
`1.12`	Total	$	1,571,620,000	$	1,566,362,000	$	3,137,982,000

1.13 Subd. 2. Summary by agency - all funds. The amounts shown in this subdivision
1.14summarize direct appropriations, by agency, made in this article.

`1.15`	SUMMARY BY AGENCY - ALL FUNDS
`1.16`			2010		2011		Total
`1.17` `1.18`	Minnesota Office of Higher Education	$	195,358,000	$	190,049,000	$	385,407,000
`1.19` `1.20` `1.21`	Board of Trustees of the Minnesota State Colleges and Universities	$	665,883,000	$	665,883,000	$	1,331,766,000
`1.22` `1.23`	Board of Regents of the University of Minnesota	$	709,079,000	$	709,079,000	$	1,418,158,000
`1.24`	Mayo Medical Foundation	$	1,300,000	$	1,351,000	$	2,651,000
`1.25`	Total	$	1,571,620,000	$	1,566,362,000	$	3,137,982,000

1.26

Sec. 2. HIGHER EDUCATION APPROPRIATIONS.

1.27 The sums shown in the columns marked "Appropriations" are appropriated to the
1.28agencies and for the purposes specified in this article. The appropriations are from the
2.1general fund, or another named fund, and are available for the fiscal years indicated
2.2for each purpose. The figures "2010" and "2011" used in this article mean that the
2.3appropriations listed under them are available for the fiscal year ending June 30, 2009,
2.4June 30, 2010, or June 30, 2011, respectively. "The first year" is fiscal year 2010. "The
2.5second year" is fiscal year 2011. "The biennium" is fiscal years 2010 and 2011.

`2.6`	APPROPRIATIONS
`2.7`	Available for the Year
`2.8`	Ending June 30
`2.9`		2010	2011

2.10
2.11

Sec. 3. MINNESOTA OFFICE OF HIGHER
EDUCATION

2.12

Subdivision 1.Total Appropriation

195,358,000

190,049,000

2.13The amounts that may be spent for each
2.14purpose are specified in the following
2.15subdivisions.

2.16

Subd. 2.State Grants

149,721,000

144,618,000

2.17If the appropriation in this subdivision for
2.18either year is insufficient, the appropriation
2.19for the other year is available for it.
2.20The legislature intends that the Office of
2.21Higher Education make full grant awards in
2.22each year of the biennium.
2.23For the biennium, the tuition maximum for
2.24students in four-year programs is $9,938 in
2.25each year for students in four-year programs.
2.26This appropriation sets the living and
2.27miscellaneous expense allowance at $6,900
2.28each year.

2.29

Subd. 3.Safety Officers Survivors

100,000

2.30This appropriation is to provide educational
2.31benefits under Minnesota Statutes, section
2.32299A.45, to dependent children under age 23
2.33and to the spouses of public safety officers
2.34killed in the line of duty.
3.1If the appropriation in this subdivision for
3.2either year is insufficient, the appropriation
3.3for the other year is available for it.

3.4

Subd. 4.Interstate Tuition Reciprocity

2,750,000

3.5If the appropriation in this subdivision for
3.6either year is insufficient, the appropriation
3.7for the other year is available to meet
3.8reciprocity contract obligations.

3.9

Subd. 5.State Work Study

15,500,000

3.10

Subd. 6.Child Care Grants

6,675,000

3.11

Subd. 7.Indian Scholarships

2,375,000

3.12The director of the Minnesota Office of
3.13Higher Education must contract with at least
3.14one knowledgeable person residing in or
3.15near the city of Bemidji to assist students
3.16with the scholarships under Minnesota
3.17Statutes, section 136A.126, and with other
3.18information about financial aid for which
3.19the students may be eligible. Bemidji State
3.20University must provide office space at
3.21no cost to the Minnesota Office of Higher
3.22Education for purposes of administering the
3.23American Indian scholarship program under
3.24Minnesota Statutes, section 136A.126.

3.25

Subd. 8.Minitex

5,631,000

3.26

Subd. 9.MnLINK Gateway

400,000

3.27

Subd. 10.Learning Network of Minnesota

4,800,000

3.28

Subd. 11.Minnesota College Savings Plan

700,000

3.29

Subd. 12.Midwest Higher Education Compact

95,000

3.30

Subd. 13.Other Small Programs

853,000

3.31This appropriation includes funding for
3.32student and parent information, information
4.1for college attendance, and minority
4.2education programs.

4.3

Subd. 14.TEACH Program

300,000

4.4For the teacher education and compensation
4.5helps (TEACH) and the Minnesota early
4.6childhood teacher retention programs in
4.7Minnesota Statutes, section 136A.126. This
4.8is a onetime appropriation.

4.9

Subd. 15.Power of You

2,000,000

4.10For transfer to MnSCU for the existing
4.11Power of You program and for pilot sites
4.12under article 2, section 41.

4.13
4.14

Subd. 16.Technical and Community College
Emergency Grants

100,000

4.15For transfer to the financial aid offices
4.16at each of the colleges of the Minnesota
4.17State Colleges and Universities to provide
4.18emergency aid grants to technical and
4.19community college students who are
4.20experiencing extraordinary economic
4.21circumstances that may result in the students
4.22dropping out of school without completing
4.23the term or their program.

4.24

Subd. 17.Veterinary Loan Forgiveness

225,000

4.25For the large animal loan forgiveness
4.26program under article 2, section 14. This
4.27appropriation is available until expended.

4.28

Subd. 18.Agency Administration

2,685,000

4.29

Subd. 19.Balances Forward

4.30A balance in the first year under this section
4.31does not cancel, but is available for the
4.32second year.

4.33

Subd. 20.Transfers

5.1The Minnesota Office of Higher Education
5.2may transfer unencumbered balances from
5.3the appropriations in subdivisions 2 to 15 to
5.4the state grant appropriation, the safety officer
5.5survivors appropriation, the interstate tuition
5.6reciprocity appropriation, the Minnesota
5.7college savings plan appropriation, the child
5.8care appropriation, and the state work study
5.9appropriation.

5.10
5.11

Subd. 21.United Family Medicine Residency
Program

448,000

467,000

5.12For a grant to the united family medicine
5.13residency program. This appropriation
5.14must be used to support up to 18 resident
5.15physicians each year in family practice at
5.16united family medicine residency programs
5.17and must prepare doctors to practice family
5.18care medicine in underserved rural and
5.19urban areas of the state. At least seven
5.20of the resident physicians must be at a
5.21publicly owned rural hospital that has an
5.22attached nursing home. The legislature
5.23intends this program to improve health
5.24care in underserved communities, provide
5.25affordable access to appropriate medical
5.26care, and manage the treatment of patients in
5.27a more cost-effective manner.

5.28

Subd. 22.TANF Work-Study

5.29Notwithstanding any rule to the contrary,
5.30work-study jobs funded by a TANF
5.31appropriation do not require employer
5.32matching funds.

5.33

Subd. 23.Reporting

5.34By November 1 and February 15, the
5.35Minnesota Office of Higher Education
6.1must provide updated state grant spending
6.2projections, taking into account the most
6.3current and projected enrollment and tuition
6.4and fee information, economic conditions,
6.5and other relevant factors. Before submitting
6.6state grant spending projections, the office
6.7must meet and consult with representatives of
6.8public and private postsecondary education,
6.9the Department of Finance, the governor's
6.10office, legislative staff, and financial aid
6.11administrators.

6.12

Subd. 24.Accreditation

6.13The office must work with small institutions
6.14to identify cost effective methods to achieve
6.15accreditation necessary to be an eligible
6.16institution for state and federal financial aid.

6.17
6.18
6.19

Sec. 4. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES

6.20

Subdivision 1.Total Appropriation

665,883,000

6.21The amounts that may be spent for each
6.22purpose are specified in the following
6.23subdivisions.

6.24
6.25

Subd. 2.Central Office and Shared Services
Unit

47,328,000

6.26For the office of the chancellor and the shared
6.27services division.
6.28For fiscal years 2012 and 2013 the base for
6.29the Central Office and Shared Services Unit
6.30is $44,823,000 each year.

6.31

Subd. 3.Operations and Maintenance

553,366,000

6.32(a) It is the intention of the legislature to
6.33increase the amount of funding distributed
6.34to colleges and universities through the
7.1allocation model to provide direct support of
7.2instruction and related functions necessary
7.3to protect the core mission of educating
7.4students.
7.5(b) Allocations to campuses from
7.6appropriations under this section must
7.7not be reduced below the allocations for
7.8the biennium ending June 30, 2009, after
7.9deducting any amount unalloted in the
7.10biennium.
7.11(c) The board of trustees shall submit
7.12expenditure reduction plans by March 15,
7.132010, to the committees of the legislature
7.14with responsibility for higher education
7.15finance to achieve the 2012-2013 base
7.16established in this section at the central
7.17office and at each institution. The plan
7.18submitted by the board must be based on
7.19plans developed at each institution detailing
7.20reductions to achieve lower base allocations
7.21at that institution. Each plan must focus on
7.22protecting direct instruction while reducing
7.23peripheral programs and services that may
7.24benefit students and institutions but are
7.25not necessary to the education of students
7.26seeking certificates, diplomas, and degrees.
7.27(d) During the biennium ending June 30,
7.282011, the board must not fill administrative
7.29and managerial vacancies, existing on the
7.30effective date of this section, in the central
7.31office or at any of the campuses of the
7.32Minnesota State Colleges and Universities
7.33or use a search firm for any hiring. The
7.34board must not authorize any increase in
7.35salaries for administrative and managerial
8.1positions in the Minnesota State Colleges
8.2and Universities in biennium ending June 30,
8.32011. The board must not charge any of the
8.4institutions for reductions under this section
8.5to the central office.
8.6(e) For the biennium ending June 30, 2011,
8.7the board must not reserve or expend
8.8appropriations under this subdivision for
8.9competitive salaries, awards of excellence,
8.10campus and technology initiatives outside
8.11the allocation model, or other board or
8.12chancellor initiatives.
8.13(f) For the biennium ending June 30,
8.142011, expenditures under this subdivision
8.15must not exceed $40,000,000 for
8.16technology initiatives, including technology
8.17infrastructure improvements, and $5,000,000
8.18for initiatives to recruit and retain
8.19traditionally underrepresented students.
8.20(g) $40,000 in each year is for the Cook
8.21County Higher Education Board to provide
8.22educational programs and academic support
8.23services.
8.24(h) $1,000,000 each year is for the Northeast
8.25Minnesota Higher Education District and
8.26high schools in its area. Students from area
8.27high schools may also access the facilities
8.28and faculty of the Northeast Minnesota
8.29Higher Education District for state-of-the-art
8.30technical education opportunities, including
8.31MnSCU's 2+2 Pathways initiative.
8.32(i) $225,000 each year is to enhance eFolio
8.33Minnesota and for a center to provide on-site
8.34and Internet-based support and technical
8.35assistance to users of the state's eFolio
9.1Minnesota system to promote workforce and
9.2economic development and to enable access
9.3to workforce information generated through
9.4the eFolio Minnesota system.
9.5(j) For fiscal years 2012 and 2013 the base for
9.6operations and maintenance is $609,631,000
9.7each year.

9.8

Subd. 4.Federal Stimulus Appropriation

65,189,000

9.9(a) This appropriation is from the fiscal
9.10stabilization account in the federal fund and
9.11may be used for modernization, renovation,
9.12or repair of facilities that are primarily used
9.13for instruction, research, or student housing
9.14but may not be used for maintenance of
9.15systems, equipment, or facilities. Amounts
9.16in this subdivision must not be allocated
9.17to modernization, renovation, or repair of
9.18stadiums or other facilities primarily used
9.19for athletic contests or exhibitions or other
9.20events for which admission is charged to the
9.21general public and must not be allocated to
9.22any facility used for sectarian instruction or
9.23religious worship or in which a substantial
9.24portion of the functions of the facilities are
9.25subsumed in a religious mission. No amount
9.26from this appropriation may be allocated to
9.27increase endowment funds.
9.28(b) Appropriations under this subdivision
9.29must be used as a bridge for budget
9.30reductions in the biennium ending June 30,
9.312013, and may be used to retain faculty
9.32and staff jobs, to provide severance and for
9.33early retirement incentives and to mitigate
9.34the rising costs of attendance through
10.1minimizing tuition increases and the support
10.2of student employment opportunities.
10.3(c) The legislature intends that the
10.4tuition increase for a Minnesota resident
10.5undergraduate student in the Minnesota State
10.6Colleges and Universities, must not exceed
10.7five percent per year for the biennium ending
10.8June 30, 2011. Federal stimulus money
10.9under this subdivision must be used to buy
10.10down the tuition increase to no more than
10.11two percent per year for these students.
10.12(d) An additional $3,469,000 is appropriated
10.13in fiscal year 2009 from the fiscal stabilization
10.14account in the federal fund.

10.15

Subd. 5.System Improvements

10.16To increase efficiencies and equity for
10.17faculty and staff, the board of trustees is
10.18encouraged to place a priority on identifying
10.19and implementing measures to improve
10.20the human resources system used by the
10.21Minnesota State Colleges and Universities.
10.22One of the goals of improving the human
10.23resources system is to provide seamless
10.24information on faculty and employees to
10.25facilitate transfers between institutions.

10.26
10.27

Sec. 5. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA

10.28

Subdivision 1.Total Appropriation

709,079,000

10.29The amounts that may be spent for each
10.30purpose are specified in the following
10.31subdivisions.

10.32

Subd. 2.Operations and Maintenance

517,623,000

10.33(a) In the biennium ending June 30, 2011, the
10.34Board must not use appropriations under this
11.1section to create or fund new administrative
11.2positions at the University of Minnesota or to
11.3increase salaries for administrative positions.
11.4(b) This appropriation includes amounts for
11.5an Ojibwe Indian language program on the
11.6Duluth campus.
11.7(c) This appropriation includes money for the
11.8Dakota language teacher training immersion
11.9program on the Twin Cities campus to
11.10prepare teachers to teach in Dakota language
11.11immersion programs.
11.12(d) This appropriation includes $600,000
11.13each year for the Veterinary Diagnostic
11.14Laboratory.
11.15(e) For fiscal years 2012 and 2013 the
11.16base for operations and maintenance is
11.17$598,124,000 each year.

11.18

Subd. 3.Health Care Access Fund

2,157,000

11.19This appropriation is from the health care
11.20access fund and is for primary care education
11.21initiatives.

11.22

Subd. 4.Special Appropriation

73,468,000

11.23

(a) Agriculture and Extension Service

52,255,000

11.24(1) This appropriation is for agricultural
11.25research and extension activities as provided
11.26in this paragraph.
11.27(2) The Agricultural Experiment Stations
11.28and Minnesota Extension Service must
11.29convene agricultural advisory groups to
11.30focus research, education, and extension
11.31activities on producer needs and implement
11.32an outreach strategy that more effectively
12.1and rapidly transfers research results and best
12.2practices to producers throughout the state.
12.3(3) This appropriation includes funding
12.4for research efforts that demonstrate a
12.5renewed emphasis on the needs of the state's
12.6production agriculture community. The
12.7following areas should be prioritized and
12.8carried out in consultation with Minnesota
12.9producer organizations:
12.10(i) vegetable crop research;
12.11(ii) fertilizer and soil fertility research and
12.12development;
12.13(iii) soil, ground, and surface water
12.14conservation practices and contaminant
12.15reduction research;
12.16(iv) discovering and developing plant
12.17varieties that use nutrients more efficiently;
12.18(v) breeding and development of turf seed
12.19and other biomass resources in all three
12.20Minnesota biomes;
12.21(vi) development of new disease-resistant
12.22and pest-resistant varieties of turf and
12.23agronomic crops;
12.24(vii) utilizing plant and livestock cells to treat
12.25and cure human diseases;
12.26(viii) the development of dairy coproducts;
12.27(ix) a rapid agricultural response fund for
12.28current or emerging animal, plant, and insect
12.29problems affecting production or food safety;
12.30(x) crop pest and animal disease research;
12.31developing animal agriculture that is capable
12.32of sustainably feeding the world;
13.1(xi) consumer food safety education and
13.2outreach; and
13.3(xii) programs to meet the research and
13.4outreach needs of sustainable and organic
13.5livestock and crop farmers.
13.6(d) This appropriation includes funding for
13.7research and outreach on the production of
13.8renewable energy from Minnesota biomass
13.9resources. The following areas should be
13.10prioritized and carried out in consultation
13.11with Minnesota producer and bioenergy
13.12organizations:
13.13(i) biofuel and other energy production from
13.14perennial crops, small grains, row crops,
13.15and forestry products in conjunction with
13.16the Natural Resources Research Institute
13.17(NRRI);
13.18(ii) alternative bioenergy crops and cropping
13.19systems; and
13.20(iii) biofuel coproducts used for livestock
13.21feed.
13.22(e) This appropriation includes funding
13.23for analysis of livestock facility siting and
13.24regulatory models from other states and
13.25countries and the following aspects of
13.26ethanol production in Minnesota:
13.27(i) water use trends as compared to other
13.28industries and activities;
13.29(ii) the carbon balance of ethanol production;
13.30(iii) the effect of ethanol blending
13.31requirements on transportation fuel prices;
13.32and
14.1(iv) the economic impacts of ethanol
14.2production and use including such measures
14.3as employment, economic output, and state
14.4and local tax revenues.
14.5(f) This appropriation may be used to
14.6establish and maintain a statewide organic
14.7research and education initiative, secure
14.8a facility and retain current faculty levels
14.9for poultry research currently conducted at
14.10UMore Park, develop and implement a dairy
14.11producer continuing education program
14.12and for scoping a new dairy research and
14.13teaching facility.
14.14(g) By February 1, 2011, the Board of
14.15Regents must submit a report to the
14.16legislative committees with responsibility
14.17for agriculture and higher education finance
14.18on the status and outcomes of research and
14.19initiatives funded in this section.

14.20

(b) Health Sciences

5,275,000

14.21$346,000 each year is to support up to 12
14.22resident physicians each year in the St.
14.23Cloud Hospital family practice residency
14.24program. The program must prepare doctors
14.25to practice primary care medicine in the rural
14.26areas of the state. The legislature intends
14.27this program to improve health care in rural
14.28communities, provide affordable access to
14.29appropriate medical care, and manage the
14.30treatment of patients in a more cost-effective
14.31manner.
14.32The remainder of this appropriation is for
14.33the rural physicians associates program, the
14.34Veterinary Diagnostic Laboratory, health
15.1sciences research, dental care, and the
15.2Biomedical Engineering Center.

15.3

1,387,000

15.4For the Geological Survey and the talented
15.5youth mathematics program.

15.6

(d) System Specials

6,551,000

15.7For general research, student loans matching
15.8money, industrial relations education,
15.9Natural Resources Research Institute, Center
15.10for Urban and Regional Affairs, and the Bell
15.11Museum of Natural History.

15.12
15.13

(e) University of Minnesota and Mayo
Foundation Partnership

8,000,000

15.14For the direct and indirect expenses of the
15.15collaborative research partnership between
15.16the University of Minnesota and the Mayo
15.17Foundation for research in biotechnology
15.18and medical genomics. This appropriation is
15.19available until expended. All parties to the
15.20partnership and chairs of the senate and house
15.21of representatives committees responsible for
15.22higher education finance must be consulted
15.23before the Board of Regents reduces the
15.24amount allocated to the partnership under
15.25this paragraph during the biennium ending
15.26June 30, 2011. An annual report on the
15.27expenditure of these funds must be submitted
15.28to the governor and the chairs of the senate
15.29and house committees responsible for higher
15.30education and economic development by
15.31June 30 of each fiscal year.

15.32

Subd. 5.Federal Stimulus Appropriation

115,731,000

15.33(a) This appropriation is from the fiscal
15.34stabilization account in the federal fund and
16.1may be used for modernization, renovation,
16.2or repair of facilities that are primarily used
16.3for instruction, research, or student housing
16.4but may not be used for maintenance of
16.5systems, equipment, or facilities. Amounts
16.6in this subdivision must not be allocated
16.7to modernization, renovation, or repair of
16.8stadiums or other facilities primarily used
16.9for athletic contests or exhibitions or other
16.10events for which admission is charged to the
16.11general public and must not be allocated to
16.12any facility used for sectarian instruction or
16.13religious worship or in which a substantial
16.14portion of the functions of the facilities are
16.15subsumed in a religious mission. No amount
16.16from this appropriation may be allocated to
16.17increase endowment funds.
16.18(b) Appropriations under this subdivision
16.19must be used as a bridge for budget
16.20reductions in the biennium ending June 30,
16.212013 and may be used to retain faculty and
16.22staff jobs, to provide severance and for early
16.23retirement incentives and to mitigate rising
16.24the costs of attendance through minimizing
16.25tuition increases and the support of student
16.26employment opportunities.
16.27(c) Appropriations may also be used for
16.28a new scholarship to complement the
16.29University's Founders scholarship. This
16.30scholarship must provide aid to help offset
16.31the impact of rising tuitions for students from
16.32middle income families. Minnesota resident
16.33undergraduate students from families with
16.34incomes between $60,000 and $100,000 are
16.35eligible for the new scholarship.
17.1(d) The legislature intends that the net
17.2tuition increase for a Minnesota resident
17.3undergraduate student at the University of
17.4Minnesota, must not exceed $300 per year
17.5for the biennium ending June 30, 2011.
17.6Appropriations of federal stimulus money
17.7under this subdivision must be used to
17.8accomplis this goal.
17.9(e) An additional $27,080,000 is appropriated
17.10in fiscal year 2009 from the stabilization
17.11account in the federal fund.

17.12

Subd. 6.Academic Health Center

17.13The appropriation for Academic Health
17.14Center funding under Minnesota Statutes,
17.15section 297F.10, is $22,250,000 each year.

17.16

Subd. 7.NRRI Research

17.17Notwithstanding Minnesota Statutes, section
17.18137.022, subdivision 4, the board may use
17.19up to $150,000 of the income credited to the
17.20permanent university fund from royalties for
17.21mining under state mineral leases to fund
17.22research at the Coleraine Minerals Research
17.23Laboratory of the Natural Resources
17.24Research Institute by taconite engineers who
17.25have been laid off by the mining industry.

17.26

Subd. 8.Enrollment Increases

17.27Over the biennium ending June 30, 2011,
17.28the Board of Regents must increase
17.29the enrollment of Minnesota resident
17.30freshmen with the goal of reaching at
17.31least the proportion of Minnesota resident
17.32undergraduates enrolled in the University of
17.33Minnesota in the 2006-2007 academic year.

17.34

Sec. 6. MAYO CLINIC

18.1

Subdivision 1.Total Appropriation

1,300,000

1,351,000

18.2The amounts that may be spent for each
18.3purpose are specified in the following
18.4subdivisions.

18.5

Subd. 2.Medical School

640,000

665,000

18.6The state of Minnesota must pay a capitation
18.7each year for each student who is a resident
18.8of Minnesota. The appropriation may be
18.9transferred between years of the biennium to
18.10accommodate enrollment fluctuations.
18.11It is intended that during the biennium the
18.12Mayo Clinic use the capitation money to
18.13increase the number of doctors practicing in
18.14rural Minnesota areas in need of doctors.

18.15
18.16

Subd. 3.Family Practice and Graduate
Residency Program

660,000

686,000

18.17The state of Minnesota must pay stipend
18.18support for up to 27 residents each year.

18.19ARTICLE 2

18.20RELATED HIGHER EDUCATION

18.21    Section 1. Minnesota Statutes 2008, section 135A.08, subdivision 1, is amended to
18.22read:
18.23    Subdivision 1. Course equivalency. The Board of Regents of the University of
18.24Minnesota and the Board of Trustees of the Minnesota State Colleges and Universities
18.25shall develop and maintain course equivalency guides for use between institutions that
18.26have a high frequency of transfer. The course equivalency guides must include information
18.27on the course equivalency and awarding of credit for learning acquired as a result of
18.28the successful completion of formal military courses and occupational training. Course
18.29equivalency guides ~~shall~~ are not be required for vocational technical programs that have
18.30not been divided into identifiable courses. The governing boards of private institutions
18.31that grant associate and baccalaureate degrees and that have a high frequency of transfer
18.32students are requested to participate in developing these guides.

18.33    Sec. 2. Minnesota Statutes 2008, section 135A.17, subdivision 2, is amended to read:
19.1    Subd. 2. Residential housing list. ~~All postsecondary institutions that enroll students~~
19.2~~accepting state or federal financial aid may~~ (a) Institutions within the Minnesota State
19.3Colleges and Universities system must prepare a current list of students enrolled in the
19.4institution and residing ~~in the institution's housing or~~ within ~~ten miles of the institution's~~
19.5~~campus~~ Minnesota. The list ~~shall~~ must include each student's name and current address
19.6as permitted by applicable privacy laws. The list ~~shall~~ must be certified and sent to the
19.7~~appropriate county auditor or auditors~~ secretary of state no earlier than 30 and no later than
19.825 days prior to the November general election, in an electronic format specified by the
19.9secretary of state, for use in election day registration as provided under section 201.061,
19.10subdivision 3 . The certification must be dated and signed by the chief officer or designee
19.11of the postsecondary educational institution, or for institutions within the Minnesota
19.12State Colleges and Universities system, by the chancellor, and must state that the list is
19.13current and accurate and includes only the names of currently enrolled students residing in
19.14Minnesota as of the date of certification. The secretary of state must combine the data
19.15received from each postsecondary educational institution under this subdivision and must
19.16process the data to locate the precinct in which the address provided for each student is
19.17located. If the data submitted by the postsecondary educational institution is insufficient
19.18for the secretary of state to locate the proper precinct, the associated student name must
19.19not appear in any list forwarded to a county auditor under this subdivision.
19.20At least 14 days prior to the November general election, the secretary of state
19.21must forward to the appropriate county auditor lists of students containing the students'
19.22names and addresses for which precinct determinations have been made along with their
19.23postsecondary educational institutions. The list must be sorted by precinct and student
19.24last name and must be forwarded in an electronic format specified by the secretary of
19.25state or other mutually agreed upon medium, if a written agreement specifying the
19.26medium is signed by the secretary of state and the county auditor at least 90 days before
19.27the November general election. A written agreement is effective for all elections until
19.28rescinded by either the secretary of state or the county auditor.
19.29(b) Other postsecondary institutions may provide lists as provided by this subdivision
19.30or as provided by the rules of the secretary of state. The University of Minnesota is
19.31requested to comply with this subdivision.
19.32(c) A residential housing list provided under this subdivision may not be used or
19.33disseminated by a county auditor or the secretary of state for any other purpose.

19.34    Sec. 3. Minnesota Statutes 2008, section 135A.25, subdivision 4, is amended to read:
20.1    Subd. 4. Minnesota Office of Higher Education responsibilities. ~~(a)~~ For private
20.2postsecondary institutions, the Minnesota Office of Higher Education must develop
20.3educational materials considering the recommendations by the Minnesota Office of Higher
20.4Education and others and at least annually convene and sponsor meetings and workshops
20.5and provide educational strategies for faculty, students, administrators, institutions, and
20.6bookstores to inform all interested parties on strategies for reducing the costs of course
20.7materials for students attending postsecondary institutions.
20.8    ~~(b) The Minnesota Office of Higher Education must identify methods to compile and~~
20.9~~distribute information on publishers that sell or distribute course material for classroom use~~
20.10~~in postsecondary institutions in a manner that meets the requirements and complies with~~
20.11~~subdivision 2. The Minnesota Office of Higher Education must also evaluate ways to make~~
20.12~~this information available for use by students and faculty in postsecondary institutions.~~

20.13    Sec. 4. [135A.26] AMERICAN MADE CLOTHING IN COLLEGE
20.14BOOKSTORES.
20.15A bookstore located on the campus of a public college or university in Minnesota
20.16must only offer for sale clothing or articles of apparel that are manufactured in the United
20.17States of America.

20.18    Sec. 5. Minnesota Statutes 2008, section 136A.06, is amended to read:
20.19136A.06 FEDERAL FUNDS.
20.20The Minnesota Office of Higher Education is designated the state agency to apply
20.21for, receive, accept, and disburse to both public and private institutions of higher education
20.22all federal funds which are allocated to the state of Minnesota to support higher education
20.23programs, construction, or other activities and which require administration by a state
20.24higher education agency under the Higher Education Facilities Act of 1963, and any
20.25amendments thereof, the Higher Education Act of 1965, and any amendments thereof, and
20.26any other law which provides funds for higher education and requires administration by a
20.27state higher education agency as enacted or may be enacted by the Congress of the United
20.28States; provided that no commitment shall be made that shall bind the legislature to make
20.29appropriations beyond current allocations of funds. The office may apply for, receive,
20.30accept, and disburse all administrative funds available to the office for administering
20.31federal funds to support higher education programs, construction, or other activities. The
20.32office also may apply for, receive, accept, and disburse any research, planning, or program
20.33funds which are available for purposes consistent with the provisions of this chapter. In
20.34making application for and administering federal funds the office may comply with any
20.35and all requirements of federal law and federal rules and regulations to enable it to receive
21.1and accept such funds. The expenditure of any such funds received shall be governed by
21.2the laws of the state, except insofar as federal regulations may otherwise provide. The
21.3office may contract with both public and private institutions in administering federal
21.4funds, and such contracts shall not be subject to the provisions of chapter 16C. All such
21.5money received by the office shall be deposited in the state treasury and, subject to section
21.63.3005, are hereby appropriated to it annually for the purpose for which such funds are
21.7received. None of such moneys shall cancel but shall be available until expended.

21.8    Sec. 6. Minnesota Statutes 2008, section 136A.08, subdivision 1, is amended to read:
21.9    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
21.10have the meanings given them.
21.11(b) "Province" and "provincial" mean the Canadian province of Manitoba.
21.12(c) "Resident of this state" means a resident student as defined in section 136A.101,
21.13subdivision 8.

21.14    Sec. 7. Minnesota Statutes 2008, section 136A.08, is amended by adding a subdivision
21.15to read:
21.16    Subd. 9. Appeal; resident status. A student who does not meet the definition of
21.17resident after residing in Minnesota for 12 months may appeal to the director by providing
21.18documentation on the student's reasons for residing in Minnesota. The director may
21.19grant resident status to the student upon determining the documentation establishes that
21.20postsecondary education was not the student's principle reason for residing in Minnesota.

21.21    Sec. 8. Minnesota Statutes 2008, section 136A.101, subdivision 4, is amended to read:
21.22    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary
21.23educational institution located in this state or in a state with which the office has entered
21.24into a higher education reciprocity agreement on state student aid programs that (1)
21.25requires, as a condition of enrollment, that each entering Minnesota resident student must
21.26complete the federal application for student aid (FAFSA), and is either (2) operated by
21.27this state or the Board of Regents of the University of Minnesota, or ~~(2)~~ (3) is operated
21.28privately and, as determined by the office, meets all of the following: (i) maintains
21.29academic standards substantially equivalent to those of comparable institutions operated
21.30in this state; (ii) is licensed or registered as a postsecondary institution by the office or
21.31another state agency; and (iii) by July 1, 2011, is participating in the federal Pell Grant
21.32program under Title IV of the Higher Education Act of 1965, as amended.

21.33    Sec. 9. Minnesota Statutes 2008, section 136A.121, subdivision 5, is amended to read:
22.1    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of
22.2responsibility for covering the recognized cost of attendance by the applicant, the
22.3applicant's family, and the government. The amount of a financial stipend must not
22.4exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
22.5deducting the following:
22.6(1) the assigned student responsibility of at least 46 45 percent of the cost of
22.7attending the institution of the applicant's choosing;
22.8(2) the assigned family responsibility as defined in section 136A.101; and
22.9(3) the amount of a federal Pell grant award for which the grant applicant is eligible.
22.10The minimum financial stipend is $100 per academic year.

22.11    Sec. 10. Minnesota Statutes 2008, section 136A.121, subdivision 9, is amended to read:
22.12    Subd. 9. Awards. An undergraduate student who meets the office's requirements
22.13is eligible to apply for and receive a grant in any year of undergraduate study unless the
22.14student has obtained a baccalaureate degree or previously has been enrolled full time or
22.15the equivalent for ~~eight~~ ten semesters or the equivalent, excluding courses taken from a
22.16Minnesota school or postsecondary institution which is not participating in the state grant
22.17program and from which a student transferred no credit. A student who withdraws from
22.18enrollment for active military service is entitled to an additional semester or the equivalent
22.19of grant eligibility. A student enrolled in a two-year program at a four-year institution is
22.20only eligible for the tuition and fee maximums established by law for two-year institutions.

22.21    Sec. 11. Minnesota Statutes 2008, section 136A.121, subdivision 6, is amended to read:
22.22    Subd. 6. Cost of attendance. (a) The recognized cost of attendance consists of
22.23allowances specified in law for living and miscellaneous expenses, and an allowance for
22.24tuition and fees equal to the lesser of the average tuition and fees charged by the institution,
22.25or the tuition and fee maximums ~~established in law~~.The tuition and fee maximum for a
22.26student enrolled in a two-year program is the maximum tuition and fee amount charged at
22.27a two-year college within the Minnesota State Colleges and Universities. The tuition and
22.28fees maximum for a student enrolled in a four-year program shall be set in law.
22.29(b) For a student registering for less than full time, the office shall prorate the cost of
22.30attendance to the actual number of credits for which the student is enrolled.
22.31(c) The recognized cost of attendance for a student who is confined to a Minnesota
22.32correctional institution shall consist of the tuition and fee component in paragraph (a),
22.33with no allowance for living and miscellaneous expenses.
22.34(d) For the purpose of this subdivision, "fees" include only those fees that are
22.35mandatory and charged to full-time resident students attending the institution. Fees do
23.1not include charges for tools, equipment, computers, or other similar materials where the
23.2student retains ownership. Fees include charges for these materials if the institution retains
23.3ownership. Fees do not include optional or punitive fees.

23.4    Sec. 12. Minnesota Statutes 2008, section 136A.1701, subdivision 10, is amended to
23.5read:
23.6    Subd. 10. Prohibition on use of state money. Except as provided in section
23.7136A.1787, paragraph (a), no money originating from state sources in the state treasury
23.8shall be made available for student loans under this section and all student loans shall be
23.9made from money originating from nonstate sources.

23.10    Sec. 13. [136A.1787] SELF LOAN REVENUE BONDS ANNUAL CERTIFICATE
23.11OF NEED.
23.12(a) In order to assure the payment of the principal of and interest on bonds and
23.13notes of the office and the continued maintenance of the loan capital fund under section
23.14136A.1785, the office shall annually determine and certify to the governor, on or before
23.15December 1:
23.16(1) the amount, if any, then needed to restore the loan capital fund to the minimum
23.17amount required by a resolution or indenture relating to any bonds or notes of the office,
23.18not exceeding the maximum amount of principal and interest to become due and payable
23.19in any subsequent year on all bonds or notes which are then outstanding;
23.20(2) the amount, if any, determined by the office to be needed in the then immediately
23.21ensuing fiscal year, with other funds pledged and estimated to be received during that year,
23.22for the payment of the principal and interest due and payable in that year on all then
23.23outstanding bonds and notes; and
23.24(3) the amount, if any, then needed to restore any debt service fund securing any
23.25outstanding bonds or notes of the office to the amount required in a resolution or indenture
23.26relating to such outstanding bonds or notes.
23.27(b) The governor shall include and submit the amounts certified by the office in
23.28accordance with this section to the legislature in the budget for the following fiscal year, or
23.29in a supplemental budget if the regular budget for that year has previously been approved.

23.30    Sec. 14. [136A.1795] LARGE ANIMAL VETERINARIAN LOAN
23.31FORGIVENESS PROGRAM.
23.32    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
23.33have the meanings given.
24.1(b) "Veterinarian" means an individual who has been awarded a doctor of veterinary
24.2medicine degree from the College of Veterinary Medicine, University of Minnesota.
24.3(c) "Designated rural area" means an area in Minnesota outside the counties of
24.4Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, excluding the cities of
24.5Duluth, Mankato, Moorhead, Rochester, and St. Cloud.
24.6(d) "Emergency circumstances" means those conditions that make it impossible for
24.7the participant to fulfill the service commitment, including death, total and permanent
24.8disability, or temporary disability lasting more than two years.
24.9(e) "Qualified educational loan" means a government, commercial, or foundation
24.10loan for actual costs paid for tuition, reasonable education expenses, and reasonable living
24.11expenses related to the education of a veterinarian.
24.12    Subd. 2. Establishment; administration. (a) The director of the Minnesota Office
24.13of Higher Education shall establish and administer a loan forgiveness program for large
24.14animal veterinarians who:
24.15(1) agree to practice in designated rural areas that are considered underserved; and
24.16(2) work full time in a practice that is at least 50 percent involved with the care of
24.17food animals.
24.18(b) Appropriations made to the program do not cancel and are available until
24.19expended.
24.20    Subd. 3. Eligibility. (a) To be eligible to participate in the loan forgiveness program,
24.21an individual must:
24.22(1) be a veterinarian who has been awarded a veterinary medicine degree within
24.23three years of submitting an application under this section, or be enrolled in the
24.24veterinarian degree program and making satisfactory progress in the College of Veterinary
24.25Medicine, University of Minnesota; and
24.26(2) submit an application to the director of the Minnesota Office of Higher Education
24.27in the form and manner prescribed by the director.
24.28(b) An applicant selected to participate must sign a contract agreeing to complete a
24.29five-year service obligation to practice as required under subdivision 2, paragraph (a).
24.30    Subd. 4. Loan forgiveness. (a) The director of the Minnesota Office of Higher
24.31Education may select a maximum of five applicants each year for participation in the loan
24.32forgiveness program, within the limits of available funding. Applicants are responsible for
24.33securing their own qualified educational loans.
24.34(b) The director must select participants based on their suitability for practice serving
24.35the designated rural area, as indicated by experience or training. The director must give
24.36preference to applicants closest to completing their training.
25.1(c) The director must make annual disbursements directly to the participant of
25.2$15,000 or the balance of the participant's qualifying educational loans, whichever is less,
25.3for each year that a participant meets the service obligation required under subdivision 3,
25.4paragraph (b), up to a maximum of five years.
25.5(d) Before receiving loan repayment disbursements and as requested, the participant
25.6must complete and return to the director an affidavit of practice form provided by the
25.7director verifying that the participant is practicing as required under subdivision 2,
25.8paragraph (a). The participant must provide the director with verification that the full
25.9amount of loan repayment disbursement received by the participant has been applied
25.10toward the designated loans. After each disbursement, verification must be received by
25.11the director and approved before the next loan repayment disbursement is made.
25.12(e) Participants who move their practice remain eligible for loan repayment as long
25.13as they practice as required under subdivision 2, paragraph (a).
25.14    Subd. 5. Penalty for nonfulfillment. If a participant does not fulfill the required
25.15minimum commitment of service required under subdivision 3, paragraph (b), the director
25.16of the Minnesota Office of Higher Education must collect from the participant the total
25.17amount paid to the participant under the loan forgiveness program plus interest at a rate
25.18established according to section 270C.40. The director must deposit the money collected
25.19in the state general fund. The director must allow waivers of all or part of the money owed
25.20the director as a result of a nonfulfillment penalty if emergency circumstances prevented
25.21fulfillment of the service obligation.
25.22    Subd. 6. Rules. The director may adopt rules to implement this section.

25.23    Sec. 15. Minnesota Statutes 2008, section 136F.02, subdivision 1, is amended to read:
25.24    Subdivision 1. Membership. The board consists of 15 members ~~appointed by the~~
25.25~~governor~~ elected by the legislature in a joint convention, including three members who are
25.26students who have attended an institution for at least one year and are currently enrolled at
25.27least half time in a degree, diploma, or certificate program in an institution governed by
25.28the board. The student members shall include one member from a community college, one
25.29member from a state university, and one member from a technical college. ~~One member~~
25.30~~representing labor must be appointed after considering the recommendations made under~~
25.31~~section~~ ~~136F.045. The governor is not bound by the recommendations. Appointments to~~
25.32~~the board are with the advice and consent of the senate.~~ At least one member of the board
25.33must be a resident of each congressional district. All other members must be ~~appointed~~
25.34elected to represent the state at large. ~~In selecting appointees, the governor must consider~~
26.1~~the needs of the board of trustees and the balance of the board membership with respect to~~
26.2~~labor and business representation and racial, gender, geographic, and ethnic composition.~~

26.3    Sec. 16. Minnesota Statutes 2008, section 136F.04, is amended to read:
26.4136F.04 STUDENT BOARD MEMBER SELECTION.
26.5    Subdivision 1. Responsibility. ~~Notwithstanding section~~ ~~136F.03~~, the State
26.6University Student Association and the State College Student Association shall each have
26.7the responsibility for recruiting, screening, and recommending qualified candidates to the
26.8joint committee for their student members of the board.
26.9    Subd. 2. Criteria. ~~After consulting with the Board of Trustees Candidate Advisory~~
26.10~~Council,~~ The student associations shall jointly develop a statement of the selection criteria
26.11to be applied to potential candidates.
26.12    Subd. 3. Recruiting and screening. Each student association shall develop
26.13processes for identifying and recruiting qualified candidates and for screening those
26.14candidates.
26.15    Subd. 4. Recommendations. Each student association shall recommend at least
26.16two and not more than four candidates for its student member. By ~~April 15~~ February 15
26.17 of the even-numbered year in which its members' term expires, each student association
26.18shall submit its recommendations to the ~~governor~~ joint committee. ~~The governor is not~~
26.19~~bound by these recommendations.~~

26.20    Sec. 17. Minnesota Statutes 2008, section 136F.045, is amended to read:
26.21136F.045 LABOR ORGANIZATION BOARD MEMBER SELECTION
26.22PROCESS.
26.23    The Minnesota AFL-CIO shall recruit and screen qualified labor candidates to be
26.24recommended to the ~~governor for appointment~~ join committee for election to the board.
26.25The organization must develop a process for selecting candidates, and a statement of
26.26selection criteria for board membership that is consistent with the requirements under
26.27section 136F.02, subdivision 1. The organization must recommend at least two and no
26.28more than four candidates to the ~~governor~~ joint committee beginning in 2010 and every
26.29six years thereafter. Recommendations must be made by ~~April 15~~ February 15 of the
26.30even-numbered year in which the ~~governor makes appointments~~ joint committee makes
26.31recommendations for candidates to be elected to the board. ~~The governor is not bound~~
26.32~~by the recommendations.~~

26.33    Sec. 18. [136F.047] TRUSTEE NOMINATION AND ELECTION.
27.1    Subdivision 1. Joint legislative committee. The joint legislative committee consists
27.2of the members of the higher education budget and policy divisions in each house of the
27.3legislature. The chairs of the divisions from each body shall be cochairs of the joint
27.4legislative committee. A majority of the members from each house is a quorum of the
27.5joint committee.
27.6    Subd. 2. Meeting. By March 15 of each odd-numbered year, or at a date agreed
27.7to by concurrent resolution, the joint legislative committee shall meet to consider
27.8recommendations for trustee of the Minnesota State Colleges and Universities for
27.9possible presentation to a joint convention of the legislature. The joint committee
27.10must meet as many times as necessary for the purpose of interviewing candidates,
27.11recommending candidates for the joint committee to consider, and voting for candidates
27.12for recommendation to the joint convention.
27.13    Subd. 3. Recommendations The joint committee may recommend to the joint
27.14convention candidates nominated by the joint committee. If a vacancy exists for a
27.15student board member or a member recommended under section 136F.047, the joint
27.16committee must consider the recommendations made the responsible organizations to the
27.17joint committee for those vacancies. Candidates for any vacancy may be nominated for
27.18consideration by the joint committee only if the nomination receives the support of at least
27.19three house of representatives members of the committee and two senate members of the
27.20committee. A candidate must receive a majority vote of members from the house of
27.21representatives on the joint committee and from the senate on the joint committee to be
27.22recommended to the joint convention. The joint committee may recommend no more than
27.23two candidates for each vacancy. In recommending candidates to the joint convention, the
27.24joint committee must consider the needs of the board of trustees and the balance of the
27.25board membership with respect to gender, racial, and ethnic composition.

27.26    Sec. 19. Minnesota Statutes 2008, section 136F.46, subdivision 3, is amended to read:
27.27    Subd. 3. Solicitation. Efforts to secure payroll deductions authorized in subdivision
27.281 may not interfere with, require a modification of, nor be conducted during the period of
27.29a payroll deduction fund drive for employees authorized by section ~~309.501~~ 43A.50.

27.30    Sec. 20. [136F.705] UNDERGRADUATE TUITION GUARANTEE.
27.31(a) A Minnesota resident student who first enrolls in a degree program at a state
27.32college or university beginning in the fall of 2010 or later is guaranteed a stable tuition
27.33for up to four consecutive academic years.
27.34(b) For an undergraduate student enrolled in a baccalaureate degree program at a
27.35state university, the tuition charged to the student for each semester of enrollment during
28.1a four-year period, beginning with the first semester of enrollment, must not exceed the
28.2amount of tuition that the student was charged for the first semester of enrollment. For a
28.3student who continues to be enrolled after four consecutive academic years, the tuition
28.4rate for each semester in excess of four years is equal to the tuition rate paid by new
28.5enrollees at the state university.
28.6(c) For an undergraduate student enrolled in an associate degree program at a college,
28.7the tuition charged to the student for each semester of enrollment during a two-year period,
28.8beginning with the first semester of enrollment, must not exceed the amount of tuition that
28.9the student was charged for the first semester of enrollment. For a student who continues
28.10to be enrolled after two consecutive academic years, the tuition rate for each semester in
28.11excess of two years is equal to the tuition rate for new enrollees at the college.

28.12    Sec. 21. Minnesota Statutes 2008, section 137.0246, subdivision 2, is amended to read:
28.13    Subd. 2. Regent nomination joint committee. (a) The joint legislative committee
28.14consists of the members of the higher education budget and policy divisions in each house
28.15of the legislature. The chairs of the divisions from each body shall be cochairs of the
28.16joint legislative committee. A majority of the members from each house is a quorum of
28.17the joint committee.
28.18    (b) By February 28 of each odd-numbered year, or at a date agreed to by concurrent
28.19resolution, the joint legislative committee shall meet to consider ~~the advisory council's~~
28.20recommendations for regent of the University of Minnesota for possible presentation to a
28.21joint convention of the legislature.
28.22    (c) The joint committee may recommend to the joint convention candidates
28.23~~recommended by the advisory council and the other candidates~~ nominated by the joint
28.24committee. A candidate ~~other than those recommended by the advisory council~~ may be
28.25nominated for consideration by the joint committee only if the nomination receives the
28.26support of at least three house of representatives members of the committee and two senate
28.27members of the committee. A candidate must receive a majority vote of members from the
28.28house of representatives and from the senate on the joint committee to be recommended to
28.29the joint convention. The joint committee may recommend no more than ~~one candidate~~
28.30two candidates for each vacancy. In recommending nominees, the joint committee must
28.31consider the needs of the board of regents and the balance of the board membership with
28.32respect to gender, racial, and ethnic composition.
28.33    ~~(d) The joint committee must meet twice, approximately one week apart. The first~~
28.34~~meeting is for the purpose of interviewing candidates and recommending candidates for~~
29.1~~the joint committee to consider. The second meeting is for the purpose of voting for~~
29.2~~candidates for recommendation to the joint convention.~~

29.3    Sec. 22. Minnesota Statutes 2008, section 137.025, subdivision 1, is amended to read:
29.4    Subdivision 1. Appropriations not for buildings. ~~The commissioner of finance~~
29.5~~shall pay no money to the University of Minnesota pursuant to a direct appropriation, other~~
29.6~~than an appropriation for buildings, until the university first certifies to the commissioner~~
29.7~~of finance that its aggregate balances in the temporary investment pool, cash, or separate~~
29.8~~investments, resulting from all state maintenance and special appropriations do not~~
29.9~~exceed $7,000,000, or any other amount specified in the act making the appropriation,~~
29.10~~plus one-third of all tuition and fee payments from the previous fiscal year. Upon this~~
29.11~~certification,~~ The commissioner of finance shall pay 1/12 of the annual appropriation to
29.12the university ~~shall be paid at the beginning~~ on the 21st day of each month. ~~Additional~~
29.13~~payments shall be made by the commissioner of finance whenever the state appropriations~~
29.14~~and tuition aggregate balances in the temporary investment pool, cash, or separate~~
29.15~~investments are reduced below the indicated levels.~~ If the 21st of the month falls on a
29.16Saturday or Sunday, the monthly payment shall be made on the Monday immediately
29.17following the 21st.

29.18    Sec. 23. [137.105] UNDERGRADUATE TUITION GUARANTEE.
29.19A Minnesota resident student who first enrolls in a degree program at the University
29.20of Minnesota beginning in the fall of 2010 or later is guaranteed a stable tuition for up to
29.21four consecutive academic years. For an undergraduate student enrolled in a baccalaureate
29.22degree program, the tuition charged to the student for each semester of enrollment during
29.23a four-year period, beginning with the first semester of enrollment, must not exceed the
29.24amount of tuition that the student was charged for the first semester of enrollment. For a
29.25student who continues to be enrolled after four consecutive academic years, the tuition
29.26rate for each semester in excess of four years is equal to the tuition rate paid by new
29.27enrollees at the University of Minnesota.

29.28    Sec. 24. Minnesota Statutes 2008, section 137.63, subdivision 1, is amended to read:
29.29    Subdivision 1. Program established. A biomedical science research facilities
29.30funding program is established to provide appropriations to the Board of Regents of the
29.31University of Minnesota for up to 75 percent of the project costs for ~~each of four projects~~
29.32a project approved by the Board of Regents under section 137.64.

29.33    Sec. 25. Minnesota Statutes 2008, section 137.64, subdivision 1, is amended to read:
30.1    Subdivision 1. Certifications. Before the commissioner may make any payments
30.2authorized in this section to the Board of Regents for a biomedical science research
30.3facility project, the commissioner must certify that the board has, by board resolution,
30.4approved the maximum project cost for the project and complied with the requirements
30.5of section 137.63, subdivision 2. For ~~each~~ the project approved by the board, the board
30.6must certify to the commissioner the amount of the annual payments of principal and
30.7interest required to service each series of bonds issued by the University of Minnesota
30.8for the project, and the actual amount of the state's annual payment to the University of
30.9Minnesota under subdivision 2. The annual payment must not exceed the amount required
30.10to pay debt service on the bonds issued to finance 75 percent of the project costs.

30.11    Sec. 26. Minnesota Statutes 2008, section 137.64, subdivision 2, is amended to read:
30.12    Subd. 2. Payments. On July 15 of each year after the certification under subdivision
30.131, but no earlier than July 15, 2009, and for so long thereafter as any bonds issued by the
30.14board for the construction of a the project are outstanding, the state must transfer to the
30.15board annual payments as certified under subdivision 1, up to the maximum amounts
30.16in the appropriation schedule under subdivision 3. Payments under this section are to
30.17reimburse the Board of Regents for the state's share of the project costs for the biomedical
30.18science research facility ~~projects~~ project, provided that the principal amount of bonds
30.19issued by the University of Minnesota to pay the state's share of the costs must not exceed
30.20~~$219,000,000~~ $40,000,000.

30.21    Sec. 27. Minnesota Statutes 2008, section 137.64, subdivision 3, is amended to read:
30.22    Subd. 3. Appropriations. Annual appropriations are made from the general fund to
30.23the commissioner of finance for transfer to the Board of Regents, as follows:
30.24    (1) up to $850,000 is appropriated in fiscal year 2010;
30.25    (2) up to ~~$3,650,000~~ $2,265,000 is appropriated in fiscal year 2011; and
30.26    (3) up to ~~$7,825,000~~ $2,831,000 is appropriated in fiscal year 2012;
30.27    ~~(4) up to $12,100,000 is appropriated in fiscal year 2013;~~
30.28    ~~(5) up to $14,825,000 is appropriated in fiscal year 2014; and~~
30.29    ~~(6) up to $15,550,000 is appropriated in fiscal year 2015~~ and each year thereafter, up
30.30to 25 years following the certification of the last project by the commissioner.

30.31    Sec. 28. Minnesota Statutes 2008, section 137.64, subdivision 4, is amended to read:
30.32    Subd. 4. Report to legislature. The Board of Regents must report to the committees
30.33of the legislature with responsibility for capital investment by January 15 of each
30.34even-numbered year on the biomedical science research facility ~~projects~~ project authorized
31.1under this section. The project report must at a minimum include ~~for each project,~~ the
31.2total cost, the number of researchers, research grants, and the amount of debt issued
31.3by the board.

31.4    Sec. 29. Minnesota Statutes 2008, section 137.64, subdivision 5, is amended to read:
31.5    Subd. 5. Reinvestment. The Board of Regents must, to the extent permitted under
31.6federal law and University of Minnesota policies, place a priority on reducing the state's
31.7share of project costs by dedicating a share of the proceeds from any commercialization or
31.8licensing revenues attributable to research conducted in the biomedical science ~~facilities~~
31.9facility to reducing the appropriations needed under subdivision 3.

31.10    Sec. 30. [137.701] UNIVERSITY NEIGHBORHOOD DEVELOPMENT.
31.11    Subdivision 1. Purpose. In order to support and create environments surrounding
31.12the campuses of the University of Minnesota in Minneapolis and Duluth that are
31.13conducive to the purposes of higher education and vital communities, the Board of
31.14Regents, the city of Minneapolis, and the city of Duluth are requested to create with
31.15surrounding neighborhoods an appropriate organization in each city, to cooperate in the
31.16development of those neighborhoods. The purpose of each organization is to improve
31.17the university's Minneapolis and Duluth campus area neighborhoods including, without
31.18limitation, the following:
31.19(1) providing and supporting the development of good quality university
31.20neighborhood housing, including housing for students, faculty, employees, alumni, and
31.21others who may wish to live in the university area neighborhoods;
31.22(2) encouraging and assisting university faculty, staff, students, and others to live in
31.23the neighborhood as long-term residents;
31.24(3) supporting and assisting appropriate business development in commercial areas
31.25of the neighborhood; and
31.26(4) cooperating and coordinating planning and development in all matters affecting
31.27the neighborhood with local government, businesses, residents, and other stakeholders in
31.28the neighborhood.
31.29    Subd. 2. Membership. The organization created by the Board of Regents and
31.30the city of Minneapolis shall include representatives from the organizations currently
31.31represented on the University District Alliance Steering Committee. The Board of
31.32Regents and the city of Duluth may establish the membership of an organization for the
31.33purposes of subdivision 1.
32.1    Subd. 3. Report. The Board of Regents, the city of Minneapolis, and the city
32.2of Duluth are requested to report by January 15, 2010, to the chairs of the legislative
32.3committees with primary jurisdiction over higher education policy and finance on the
32.4status and activities of the organization that is created.

32.5    Sec. 31. Minnesota Statutes 2008, section 179A.03, subdivision 14, is amended to read:
32.6    Subd. 14. Public employee or employee. "Public employee" or "employee" means
32.7any person appointed or employed by a public employer except:
32.8(a) elected public officials;
32.9(b) election officers;
32.10(c) commissioned or enlisted personnel of the Minnesota National Guard;
32.11(d) emergency employees who are employed for emergency work caused by natural
32.12disaster;
32.13(e) part-time employees whose service does not exceed the lesser of 14 hours per
32.14week or 35 percent of the normal work week in the employee's appropriate unit;
32.15(f) employees whose positions are basically temporary or seasonal in character and:
32.16(1) are not for more than 67 working days in any calendar year; or (2) are not for more
32.17than 100 working days in any calendar year and the employees are under the age of 22, are
32.18full-time students enrolled in a nonprofit or public educational institution prior to being
32.19hired by the employer, and have indicated, either in an application for employment or by
32.20being enrolled at an educational institution for the next academic year or term, an intention
32.21to continue as students during or after their temporary employment;
32.22(g) employees providing services for not more than two consecutive quarters to the
32.23Board of Trustees of the Minnesota State Colleges and Universities under the terms of a
32.24professional or technical services contract as defined in section 16C.08, subdivision 1;
32.25(h) employees of charitable hospitals as defined by section 179.35, subdivision 3;
32.26(i) full-time undergraduate students employed by the school which they attend under
32.27a work-study program or in connection with the receipt of financial aid, irrespective
32.28of number of hours of service per week;
32.29(j) an individual who is employed for less than 300 hours in a fiscal year as an
32.30instructor in an adult vocational education program;
32.31(k) an individual hired by the Board of Trustees of the Minnesota State Colleges and
32.32Universities to teach one course for three or fewer credits for one semester in a year;
32.33(l) with respect to court employees:
32.34(1) personal secretaries to judges;
32.35(2) law clerks;
33.1(3) managerial employees;
33.2(4) confidential employees; and
33.3(5) supervisory employees;
33.4(m) with respect to employees of Hennepin Healthcare System, Inc., managerial,
33.5supervisory, and confidential employees.
33.6The following individuals are public employees regardless of the exclusions of
33.7clauses (e) and (f):
33.8(i) An employee hired by a school district or the Board of Trustees of the Minnesota
33.9State Colleges and Universities except at the university established in ~~section~~ ~~136F.13~~
33.10the Twin Cities metropolitan area under section 136F.10 or for community services or
33.11community education instruction offered on a noncredit basis: (A) to replace an absent
33.12teacher or faculty member who is a public employee, where the replacement employee
33.13is employed more than 30 working days as a replacement for that teacher or faculty
33.14member; or (B) to take a teaching position created due to increased enrollment, curriculum
33.15expansion, courses which are a part of the curriculum whether offered annually or not, or
33.16other appropriate reasons;
33.17(ii) An employee hired for a position under clause (f)(1) if that same position has
33.18already been filled under clause (f)(1) in the same calendar year and the cumulative
33.19number of days worked in that same position by all employees exceeds 67 calendar days
33.20in that year. For the purpose of this paragraph, "same position" includes a substantially
33.21equivalent position if it is not the same position solely due to a change in the classification
33.22or title of the position; and
33.23(iii) an early childhood family education teacher employed by a school district.

33.24    Sec. 32. Minnesota Statutes 2008, section 201.061, subdivision 1, is amended to read:
33.25    Subdivision 1. Prior to election day. At any time except during the 20 days
33.26immediately preceding any regularly scheduled election, an eligible voter or any
33.27individual who will be an eligible voter at the time of the next election may register to vote
33.28in the precinct in which the voter maintains residence by completing a voter registration
33.29application as described in section 201.071, subdivision 1, and submitting it in person or
33.30by mail to the county auditor of that county or to the Secretary of State's Office. If the Web
33.31site maintained by the secretary of state provides a process for it, an individual who has
33.32a Minnesota driver's license, identification card, or learner's permit may register online.
33.33A registration that is received no later than 5:00 p.m. on the 21st day preceding any
33.34election shall be accepted. An improperly addressed or delivered registration application
33.35shall be forwarded within two working days after receipt to the county auditor of the
34.1county where the voter maintains residence. A state or local agency or an individual that
34.2accepts completed voter registration applications from a voter must submit the completed
34.3applications to the secretary of state or the appropriate county auditor within ten days
34.4after the applications are dated by the voter.
34.5For purposes of this section, mail registration is defined as a voter registration
34.6application delivered to the secretary of state, county auditor, or municipal clerk by the
34.7United States Postal Service or a commercial carrier.

34.8    Sec. 33. Minnesota Statutes 2008, section 201.061, subdivision 3, is amended to read:
34.9    Subd. 3. Election day registration. (a) An individual who is eligible to vote may
34.10register on election day by appearing in person at the polling place for the precinct in
34.11which the individual maintains residence, by completing a registration application, making
34.12an oath in the form prescribed by the secretary of state and providing proof of residence.
34.13An individual may prove residence for purposes of registering by:
34.14    (1) presenting a driver's license or Minnesota identification card issued pursuant
34.15to section 171.07;
34.16    (2) presenting any document approved by the secretary of state as proper
34.17identification;
34.18    (3) presenting one of the following:
34.19    (i) a current valid student identification card from a postsecondary educational
34.20institution in Minnesota, if a list of students from that institution has been prepared under
34.21section 135A.17 ~~and certified to the county auditor~~ or in the manner provided in rules of
34.22the secretary of state; or
34.23    (ii) a current student fee statement that contains the student's valid address in the
34.24precinct together with a picture identification card; or
34.25    (4) having a voter who is registered to vote in the precinct, or who is an employee
34.26employed by and working in a residential facility in the precinct and vouching for a
34.27resident in the facility, sign an oath in the presence of the election judge vouching that the
34.28voter or employee personally knows that the individual is a resident of the precinct. A
34.29voter who has been vouched for on election day may not sign a proof of residence oath
34.30vouching for any other individual on that election day. A voter who is registered to vote in
34.31the precinct may sign up to 15 proof-of-residence oaths on any election day. This limitation
34.32does not apply to an employee of a residential facility described in this clause. The
34.33secretary of state shall provide a form for election judges to use in recording the number
34.34of individuals for whom a voter signs proof-of-residence oaths on election day. The
34.35form must include space for the maximum number of individuals for whom a voter may
35.1sign proof-of-residence oaths. For each proof-of-residence oath, the form must include
35.2a statement that the voter is registered to vote in the precinct, personally knows that the
35.3individual is a resident of the precinct, and is making the statement on oath. The form must
35.4include a space for the voter's printed name, signature, telephone number, and address.
35.5    The oath required by this subdivision and Minnesota Rules, part 8200.9939, must be
35.6attached to the voter registration application.
35.7    (b) The operator of a residential facility shall prepare a list of the names of its
35.8employees currently working in the residential facility and the address of the residential
35.9facility. The operator shall certify the list and provide it to the appropriate county auditor
35.10no less than 20 days before each election for use in election day registration.
35.11    (c) "Residential facility" means transitional housing as defined in section 256E.33,
35.12subdivision 1 ; a supervised living facility licensed by the commissioner of health under
35.13section 144.50, subdivision 6; a nursing home as defined in section 144A.01, subdivision
35.145 ; a residence registered with the commissioner of health as a housing with services
35.15establishment as defined in section 144D.01, subdivision 4; a veterans home operated by
35.16the board of directors of the Minnesota Veterans Homes under chapter 198; a residence
35.17licensed by the commissioner of human services to provide a residential program as
35.18defined in section 245A.02, subdivision 14; a residential facility for persons with a
35.19developmental disability licensed by the commissioner of human services under section
35.20252.28 ; group residential housing as defined in section 256I.03, subdivision 3; a shelter
35.21for battered women as defined in section 611A.37, subdivision 4; or a supervised
35.22publicly or privately operated shelter or dwelling designed to provide temporary living
35.23accommodations for the homeless.
35.24    (d) For tribal band members, an individual may prove residence for purposes of
35.25registering by:
35.26    (1) presenting an identification card issued by the tribal government of a tribe
35.27recognized by the Bureau of Indian Affairs, United States Department of the Interior, that
35.28contains the name, address, signature, and picture of the individual; or
35.29    (2) presenting an identification card issued by the tribal government of a tribe
35.30recognized by the Bureau of Indian Affairs, United States Department of the Interior, that
35.31contains the name, signature, and picture of the individual and also presenting one of the
35.32documents listed in Minnesota Rules, part 8200.5100, subpart 2, item B.
35.33    (e) A county, school district, or municipality may require that an election judge
35.34responsible for election day registration initial each completed registration application.

35.35    Sec. 34. Minnesota Statutes 2008, section 201.071, subdivision 1, is amended to read:
36.1    Subdivision 1. Form. A voter registration application must ~~be of suitable size and~~
36.2~~weight for mailing and~~ contain spaces for the following required information: voter's first
36.3name, middle name, and last name; voter's previous name, if any; voter's current address;
36.4voter's previous address, if any; voter's date of birth; voter's municipality and county of
36.5residence; voter's telephone number, if provided by the voter; date of registration; current
36.6and valid Minnesota driver's license number or Minnesota state identification number,
36.7or if the voter has no current and valid Minnesota driver's license or Minnesota state
36.8identification, and the last four digits of the voter's Social Security number~~; and voter's~~
36.9~~signature~~. The registration application may include the voter's e-mail address, if provided
36.10by the voter, and the voter's interest in serving as an election judge, if indicated by the
36.11voter. The application must also contain the following certification of voter eligibility:
36.12"I certify that I:
36.13(1) will be at least 18 years old on election day;
36.14(2) am a citizen of the United States;
36.15(3) will have resided in Minnesota for 20 days immediately preceding election day;
36.16(4) maintain residence at the address given on the registration form;
36.17(5) am not under court-ordered guardianship in which the court order revokes my
36.18right to vote;
36.19(6) have not been found by a court to be legally incompetent to vote;
36.20(7) have the right to vote because, if I have been convicted of a felony, my felony
36.21sentence has expired (been completed) or I have been discharged from my sentence; and
36.22(8) have read and understand the following statement: that giving false information
36.23is a felony punishable by not more than five years imprisonment or a fine of not more
36.24than $10,000, or both."
36.25The certification must include boxes for the voter to respond to the following
36.26questions:
36.27"(1) Are you a citizen of the United States?" and
36.28"(2) Will you be 18 years old on or before election day?"
36.29And the instruction:
36.30"If you checked 'no' to either of these questions, do not complete this form."
36.31The form of the voter registration application and the certification of voter eligibility
36.32must be as provided in this subdivision and approved by the secretary of state. Voter
36.33registration forms authorized by the National Voter Registration Act must also be accepted
36.34as valid. The federal postcard application form must also be accepted as valid if it is not
36.35deficient and the voter is eligible to register in Minnesota.
37.1An individual may use a voter registration application to apply to register to vote in
37.2Minnesota or to change information on an existing registration.
37.3A paper voter registration application must include space for the voter's signature.
37.4Paper voter registration applications, other than those used for election day registration,
37.5must be of suitable size and weight for mailing.

37.6    Sec. 35. Minnesota Statutes 2008, section 201.091, is amended by adding a subdivision
37.7to read:
37.8    Subd. 5a. Registration confirmation to registered voter. The secretary of state
37.9must ensure that the secretary of state's Web site is capable of providing voter registration
37.10confirmation to a registered voter. An individual requesting registration confirmation must
37.11provide the individual's name, address, and date of birth. If the information provided by
37.12the individual completely matches an active voter record in the statewide voter registration
37.13system, the Web site must inform the individual that the individual is a registered voter and
37.14must provide the individual with the individual's polling place location. If the information
37.15provided by the individual does not completely match an active voter record in the
37.16statewide voter registration system, the Web site must inform the individual that a voter
37.17record with that name and date of birth at the address provided cannot be confirmed and the
37.18Web site must advise the individual to contact the county auditor for further information.
37.19EFFECTIVE DATE.This section is not effective until the secretary of state has
37.20certified that the Web site has been tested, has been shown to properly retrieve information
37.21from the correct voter's record, and can handle the expected volume of use.

37.22    Sec. 36. Minnesota Statutes 2008, section 299A.45, subdivision 4, is amended to read:
37.23    Subd. 4. Renewal. Each award must be given for one academic year and is
37.24renewable for a maximum of ~~eight~~ ten semesters or the equivalent. A student who
37.25withdraws from enrollment for active military service is entitled to an additional semester
37.26or the equivalent of grant eligibility. An award must not be given to a dependent child
37.27who is 23 years of age or older on the first day of the academic year.

37.28    Sec. 37. Minnesota Statutes 2008, section 340A.404, subdivision 4a, is amended to
37.29read:
37.30    Subd. 4a. State-owned recreation; entertainment facilities. Notwithstanding any
37.31other law, local ordinance, or charter provision, the commissioner may issue on-sale
37.32intoxicating liquor licenses:
37.33    (1) to the state agency administratively responsible for, or to an entity holding a
37.34concession or facility management contract with such agency for beverage sales at, the
38.1premises of any Giants Ridge Recreation Area building or recreational improvement area
38.2owned by the state in the town of White, St. Louis County;
38.3    (2) to the state agency administratively responsible for, or to an entity holding a
38.4concession or facility management contract with such agency for beverage sales at, the
38.5premises of any Ironworld Discovery Center building or facility owned by the state at
38.6Chisholm; and
38.7    (3) to the Board of Regents of the University of Minnesota for events at Northrop
38.8Auditorium, the intercollegiate football stadium, or at no more than seven other locations
38.9within the boundaries of the University of Minnesota, provided that the Board of Regents
38.10has approved an application for a license for the specified location and provided that
38.11the application for a stadium or arena location allows for the legal sale of intoxicating
38.12liquor throughout the stadium or arena and does not limit the sale of intoxicating liquor to
38.13premium seating areas or suites.
38.14    The commissioner shall charge a fee for licenses issued under this subdivision in an
38.15amount comparable to the fee for comparable licenses issued in surrounding cities.
38.16EFFECTIVE DATE.This section is effective the day following final enactment
38.17and applies to applications for an on-sale liquor license made after December 1, 2008.

38.18    Sec. 38. REPORT; FEDERAL TEXTBOOK INFORMATION
38.19REQUIREMENTS.
38.20By January 15, 2010, the Office of Higher Education must report to the committees
38.21of the legislature responsible for higher education finance on the implementation of
38.22textbook information requirements under United States Code, title 20, section 1015b,
38.23effective July 1, 2010. In preparing the report, the office must work with representatives
38.24of textbook publishers, the Student Advisory Council, Minnesota State Colleges and
38.25Universities, the University of Minnesota, and the Private College Council. At a
38.26minimum, the report must include a template that publishers may use to provide the
38.27required information in a consistent format to all Minnesota campuses, and make
38.28recommendations of methods to disseminate pricing information to support students and
38.29faculty in making well informed decisions about course materials.

38.30    Sec. 39. MINNESOTA STATE COLLEGE, SOUTHEAST TECHNICAL -
38.31AVIATION TRAINING CENTER.
38.32    Notwithstanding Minnesota Statutes, section 136F.60, subdivision 5, the net
38.33proceeds of the sale or disposition of the Aviation Training Center in Winona operated by
38.34Minnesota State College - Southeast Technical, after paying all expenses incurred in selling
38.35the property and retiring any remaining debt attributable to the project, are appropriated to
39.1the board of trustees of the Minnesota State Colleges and Universities for use in a capital
39.2project at the Winona campus and need not be paid to the commissioner of finance, as
39.3would otherwise be required by Minnesota Statutes, section 16A.695, subdivision 3.
39.4    When the sale is complete and the sale proceeds have been applied as provided in
39.5this subdivision, Minnesota Statutes, section 16A.695, no longer applies to the property
39.6and the property is no longer state bond financed property.

39.7    Sec. 40. MINNESOTA STATE COLLEGES AND UNIVERSITIES DEGREE
39.8REQUIREMENTS.
39.9Until July 2, 2012, an associate of applied science degree offered by a college in
39.10the Minnesota State Colleges and Universities system is exempt from the 60-semester
39.11credit length limit for an associate degree specified in the Minnesota State Colleges and
39.12Universities Board Policy number 3.36, part 3, subpart C. The chancellor may consider
39.13criteria for waiving the credit length limits under this board policy for emerging or
39.14innovative programs. By January 2, 2012, the Minnesota State College Faculty and the
39.15Minnesota State College Student Association must present a joint report to the house
39.16and senate committees with jurisdiction over higher education policy on a process for
39.17reviewing the credit requirements for an associate of applied science degree.
39.18EFFECTIVE DATE.This section is effective the day following final enactment
39.19and applies to associate of applied science degrees whether first offered before, on, or
39.20after that date.

39.21    Sec. 41. POWER OF YOU PILOT PROGRAMS.
39.22    Subdivision 1. Power of you pilot programs. The Board of Trustees of the
39.23Minnesota State Colleges and Universities shall establish power of you pilot programs in
39.24suburban and rural sites. The pilots shall comply with Minnesota Statutes, section 136F.19.
39.25    Subd. 2. Suburban pilot selection. By July 1, 2009, the board of trustees shall
39.26select one technical college and one community college or community-technical college
39.27in the Minneapolis-St. Paul suburban area to develop a new power of you pilot program,
39.28in conjunction with Metropolitan State University. Each college in the pilot program
39.29must work with a high school partner selected by the board in the Minneapolis-St. Paul
39.30suburban area.
39.31    Subd. 3. Rural pilot selection. By July 1, 2009, the board of trustees shall select
39.32two rural colleges to participate in the power of you pilot programs. One of the pilot
39.33programs must be a multi-campus college in an agricultural part of the state and the
39.34other a multi-campus college in a nonagricultural part of the state dependent on natural
40.1resources. Each college in the pilot program must work with a high school partner selected
40.2by the board.
40.3EFFECTIVE DATE.This section is effective the day following final enactment.

40.4    Sec. 42. REPEALER.
40.5Minnesota Statutes 2008, sections 136A.127; 136F.03; and 137.0245, are repealed.

40.6    Sec. 43. EFFECTIVE DATE.
40.7Sections 1 to 6 are effective the day following final enactment.

40.8ARTICLE 3

40.9JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS

40.10

Section 1. JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS.

40.11 The amounts shown in this section summarize direct appropriations, by fund, made
40.12in this article.

`40.13`			2010		2011		Total
`40.14`	General	$	44,032,000	$	44,032,000	$	88,064,000
`40.15`	Workforce Development		26,208,000		25,358,000		51,566,000
`40.16`	Remediation		700,000		700,000		1,400,000
`40.17`	Workers' Compensation		22,574,000		22,574,000		45,148,000
`40.18`	Total	$	95,317,000	$	94,467,000	$	189,784,000

40.19

Sec. 2. JOBS AND ECONOMIC DEVELOPMENT.

40.20 The sums shown in the columns marked "Appropriations" are appropriated to the
40.21agencies and for the purposes specified in this article. The appropriations are from the
40.22general fund, or another named fund, and are available for the fiscal years indicated
40.23for each purpose. The figures "2008" and "2009" used in this article mean that the
40.24appropriations listed under them are available for the fiscal year ending June 30, 2008, or
40.25June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
40.26year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
40.27year ending June 30, 2007, are effective the day following final enactment.

`40.28`	APPROPRIATIONS
`40.29`	Available for the Year
`40.30`	Ending June 30
`40.31`		2010	2011

40.32
40.33

Sec. 3. DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT

40.34

Subdivision 1.Total Appropriation

65,064,000

64,214,000

`41.1`	Appropriations by Fund
`41.2`		2010	2011
`41.3`	General	39,185,000	39,185,000
`41.4`	Remediation	700,000	700,000
`41.5` `41.6`	Workforce Development	25,179,000	24,329,000

41.7The amounts that may be spent for each
41.8purpose are specified in the following
41.9subdivisions.

41.10
41.11

Subd. 2.Business and Community
Development

8,015,000

`41.12`	Appropriations by Fund
`41.13`	General	6,926,000	6,926,000
`41.14`	Remediation	700,000	700,000
`41.15` `41.16`	Workforce Development	389,000	389,000

41.17(a) $700,000 each year is from the
41.18remediation fund for contaminated site
41.19cleanup and development grants under
41.20Minnesota Statutes, section 116J.554. This
41.21appropriation is available until expended.
41.22(b)(1) $150,000 each year is from the
41.23workforce development fund for a grant
41.24under Minnesota Statutes, section 116J.421,
41.25to the Rural Policy and Development
41.26Center at St. Peter, Minnesota. The grant
41.27shall be used for research and policy
41.28analysis on emerging economic and social
41.29issues in rural Minnesota, to serve as a
41.30policy resource center for rural Minnesota
41.31communities, to encourage collaboration
41.32across higher education institutions, to
41.33provide interdisciplinary team approaches
41.34to research and problem-solving in rural
41.35communities, and to administer overall
41.36operations of the center.
42.1(2) The grant shall be provided upon the
42.2condition that each state-appropriated
42.3dollar be matched with a nonstate dollar.
42.4Acceptable matching funds are nonstate
42.5contributions that the center has received and
42.6have not been used to match previous state
42.7grants. Any funds not spent the first year are
42.8available the second year.
42.9(c) $225,000 each year is from the general
42.10fund for a grant to WomenVenture for
42.11women's business development programs
42.12and for programs that encourage and assist
42.13women to enter nontraditional careers in the
42.14trades; manual and technical occupations;
42.15science, technology, engineering, and
42.16mathematics-related occupations; and green
42.17jobs. This appropriation may be matched
42.18dollar for dollar with any resources available
42.19from the federal government for these
42.20purposes with priority given to initiatives
42.21that have a goal of increasing by at least 10
42.22percent the number of women in occupations
42.23where women currently comprise less than 25
42.24percent of the workforce. The appropriation
42.25is available until expended.
42.26(d) $105,000 each year is from the general
42.27fund and $50,000 each year is from the
42.28workforce development fund for a grant to
42.29the Metropolitan Economic Development
42.30Association for continuing minority business
42.31development programs in the metropolitan
42.32area and for contract procurement support
42.33to businesses in northeast and southwest
42.34Minnesota.
43.1(e) $50,000 each year is from the general
43.2fund for a grant to the Minnesota Inventors
43.3Congress, of which at least $5,000 must be
43.4used for youth inventors.
43.5(f) $100,000 each year is from the general
43.6fund for a grant to BioBusiness Alliance
43.7of Minnesota for bioscience business
43.8development programs to promote and
43.9position the state as a global leader in
43.10bioscience business activities. This is a
43.11onetime appropriation. These funds may be
43.12used to create, recruit, retain, and expand
43.13biobusiness activity in Minnesota; implement
43.14the destination 2025 statewide plan; update
43.15a statewide assessment of the bioscience
43.16industry and the competitive position of
43.17Minnesota-based bioscience businesses
43.18relative to other states and other nations;
43.19and develop and implement business and
43.20scenario-planning models to create, recruit,
43.21retain, and expand biobusiness activity in
43.22Minnesota.
43.23The BioBusiness Alliance must report each
43.24year by February 15 to the committees of
43.25the house of representatives and the senate
43.26having jurisdiction over bioscience industry
43.27activity in Minnesota on the use of funds;
43.28the number of bioscience businesses and
43.29jobs created, recruited, retained, or expanded
43.30in the state since the last reporting period;
43.31the competitive position of the biobusiness
43.32industry; and utilization rates and results of
43.33the business and scenario-planning models
43.34and outcomes resulting from utilization of
43.35the business and scenario-planning models.
44.1(g) Notwithstanding Minnesota Statutes,
44.2Chapter 268.18, subdivision 2, $500,000
44.3of funds collected in fiscal year 2009 for
44.4unemployment insurance administration
44.5under subdivision 2 is appropriated as
44.6follows: $250,000 to the City of Hugo for
44.7reimbursement of tornado relief efforts and
44.8$250,000 to Lake County for ice storm
44.9damage.
44.10(h) $1,000,000 in the first year is from the
44.1121st Century Minerals Fund to the Board of
44.12Trustees of the Minnesota State Colleges
44.13and Universities for a grant to the Northeast
44.14Higher Education District for planning,
44.15design, and construction of classrooms and
44.16housing facilities for upper division students
44.17in the engineering program.
44.18(i) $189,000 each year is appropriated from
44.19the general fund for grants of $63,000 to
44.20eligible organizations each year to assist in
44.21the development of entrepreneurs and small
44.22businesses. Each state grant dollar must be
44.23matched with $1 of nonstate funds. Any
44.24balance in the first year does not cancel but is
44.25available in the second year.
44.26Three grants must be awarded to continue
44.27or to develop a program. One grant must
44.28be awarded to the Riverbend Center for
44.29Entrepreneurial Facilitation in Blue Earth
44.30County, and two to other organizations
44.31serving Faribault and Martin Counties. Grant
44.32recipients must report to the commissioner
44.33by February 1 of each year that the
44.34organization receives a grant with the
44.35number of customers served; the number of
45.1businesses started, stabilized, or expanded;
45.2the number of jobs created and retained; and
45.3business success rates. The commissioner
45.4must report to the house of representatives
45.5and senate committees with jurisdiction
45.6over economic development finance on the
45.7effectiveness of these programs for assisting
45.8in the development of entrepreneurs and
45.9small businesses.

45.10

Subd. 3.Workforce Development

54,603,000

53,753,000

`45.11`	Appropriations by Fund
`45.12`	General	29,813,000	29,813,000
`45.13` `45.14`	Workforce Development	24,790,000	23,940,000

45.15(a) $4,562,000 each year is from the general
45.16fund for the Minnesota job skills partnership
45.17program under Minnesota Statutes, sections
45.18116L.01 to 116L.17. If the appropriation for
45.19either year is insufficient, the appropriation
45.20for the other year is available. This
45.21appropriation is available until spent.
45.22(b) $8,800,000 each year is from the general
45.23fund for the state's vocational rehabilitation
45.24program under Minnesota Statutes, chapter
45.25268A.
45.26(c) $5,986,000 each year is from the general
45.27fund for the state services for the blind
45.28activities.
45.29(d) $2,380,000 each year is from the general
45.30fund for grants to centers for independent
45.31living under Minnesota Statutes, section
45.32268A.11.
45.33(e) $350,000 each year is from the general
45.34fund and $105,000 each year is from the
45.35workforce development fund for a grant
46.1under Minnesota Statutes, section 116J.8747,
46.2to Twin Cities RISE! to provide training to
46.3hard-to-train individuals.
46.4(f) $150,000 each year is from the general
46.5fund and $50,000 each year is from the
46.6workforce development fund for a grant
46.7to Northern Connections in Perham to
46.8implement and operate a pilot workforce
46.9program that provides one-stop supportive
46.10services to individuals as they transition into
46.11the workforce.
46.12(g) $150,000 each year is from the general
46.13fund for a grant to Advocating Change
46.14Together for training, technical assistance,
46.15and resource materials for persons with
46.16developmental and mental illness disabilities.
46.17(h) $5,627,000 each year is from the general
46.18fund and $6,920,000 each year is from the
46.19workforce development fund for extended
46.20employment services for persons with severe
46.21disabilities or related conditions under
46.22Minnesota Statutes, section 268A.15. Of
46.23the general fund appropriation, $125,000
46.24each year is to supplement funds paid for
46.25wage incentives for the community support
46.26fund established in Minnesota Rules, part
46.273300.2045.
46.28(i) $1,613,000 each year is from the general
46.29fund for grants to programs that provide
46.30employment support services to persons with
46.31mental illness under Minnesota Statutes,
46.32sections 268A.13 and 268A.14. Grants
46.33may be used for special projects for young
46.34people with mental illness transitioning from
46.35school to work and people with serious
47.1mental illness receiving services through
47.2a mental health court or civil commitment
47.3court. Special projects must demonstrate
47.4interagency collaboration.
47.5(j) $145,000 each year is from the general
47.6fund and $175,000 each year is from
47.7the workforce development fund for a
47.8grant under Minnesota Statutes, section
47.9268A.03, to Rise, Inc. for the Minnesota
47.10Employment Center for People Who are Deaf
47.11or Hard-of-Hearing. Money not expended
47.12the first year is available the second year.
47.13(k) $50,000 each year is from the general
47.14fund and $250,000 each year is from the
47.15workforce development fund for a grant to
47.16Lifetrack Resources for its immigrant and
47.17refugee collaborative program, including
47.18those related to job-seeking skills and
47.19workplace orientation, intensive job
47.20development, functional work English, and
47.21on-site job coaching.
47.22(l) $3,500,000 each year is from the
47.23workforce development fund for the
47.24Minnesota youth program under Minnesota
47.25Statutes, sections 116L.56 and 116L.561.
47.26(m) $1,375,000 each year is from the
47.27workforce development fund for the
47.28Opportunities Industrialization Center
47.29programs.
47.30(n) $1,250,000 each year is from the
47.31workforce development fund for grants for
47.32the Minneapolis summer youth employment
47.33program. The grants shall be used to fund
47.34up to 500 jobs for youth each summer. Of
47.35this appropriation, $250,000 each year is for
48.1a grant to the learn-to-earn summer youth
48.2employment program. The commissioner
48.3shall establish criteria for awarding the
48.4grants. This appropriation is available in
48.5either year of the biennium and is available
48.6until spent.
48.7(o) $575,000 each year is from the workforce
48.8development fund for grants to fund summer
48.9youth employment in St. Paul. The grants
48.10shall be used to fund up to 500 jobs for
48.11youth each summer. The commissioner shall
48.12establish criteria for awarding the grants.
48.13This appropriation is available in either year
48.14of the biennium and is available until spent.
48.15(p) $1,000,000 each year is from the
48.16workforce development fund for the
48.17youthbuild program under Minnesota
48.18Statutes, sections 116L.361 to 116L.366.
48.19(q) $100,000 each year is from the
48.20workforce development fund for grants
48.21for the Indigenous Earthkeepers Program
48.22for American Indian youth environmental
48.23education and training. Funds must be
48.24used to provide summer programming
48.25for up to 80 American Indian youth ages
48.2614 to 19 for up to eight weeks. The
48.27Indigenous Earthkeepers Program must
48.28use the environment, with Native language
48.29as its primary core, to develop student
48.30academic skills and knowledge at Center
48.31School and Healthy Nations Program of the
48.32Minneapolis American Indian Center. The
48.33program must foster a sense of civic and
48.34environmental responsibility by providing
48.35youth the opportunity to serve on small,
49.1natural, and urban resource crews in the
49.2Twin Cities metropolitan area and outside of
49.3the metropolitan area. In addition, it must
49.4build the capacity of these youths to improve
49.5their lives in an indigenous-inspired and
49.6culturally relevant manner. At a minimum,
49.7the program curriculum must include water
49.8studies, identification of waterway cleanup
49.9sites, cleanup of waterways significant to
49.10indigenous culture and education, plant
49.11identification, gardening, and indigenous
49.12language components. This is a onetime
49.13appropriation.
49.14(r) $340,000 each year is from the workforce
49.15development fund for grants to provide
49.16interpreters for a regional transition program
49.17that specializes in providing culturally
49.18appropriate transition services leading to
49.19employment for deaf, hard-of-hearing, and
49.20deaf-blind students.
49.21(s) The first $1,450,000 deposited in each
49.22year of the biennium into the contingent
49.23account created under Minnesota Statutes,
49.24section 268.196, subdivision 3, shall be
49.25transferred before the closing of each fiscal
49.26year to the workforce development fund
49.27created under Minnesota Statutes, section
49.28116L.20. Deposits in excess of $1,450,000
49.29shall be transferred before the closing of each
49.30fiscal year to the general fund.
49.31(t) $75,000 each year is from the workforce
49.32development fund for a grant to Ramsey
49.33County Workforce Investment Board for the
49.34development of the building lives program.
49.35This is a onetime appropriation.
50.1(u) $75,000 the each year is from the
50.2workforce development fund for a grant
50.3to a nonprofit organization. The nonprofit
50.4organization must work on behalf of all
50.5licensed vendors to coordinate their efforts
50.6to respond to solicitations or other requests
50.7from private and governmental units as
50.8defined in Minnesota Statutes, section
50.9471.59, subdivision 1, in order to increase
50.10employment opportunities for persons with
50.11disabilities. This is a onetime appropriation.
50.12(v) $500,000 each year from the workforce
50.13development fund is for a grant to the
50.14Minnesota Alliance of Boys and Girls
50.15Clubs to administer a statewide project
50.16of youth job skills development. This
50.17project, which may have career guidance
50.18components, including health and life skills,
50.19is to encourage, train, and assist youth in
50.20job-seeking skills, workplace orientation,
50.21and job site knowledge through coaching.
50.22This grant requires a 25 percent match from
50.23nonstate resources.
50.24(w) $100,000 in the first year is from the
50.25workforce development fund for a grant to the
50.26Southeast Asian Collaborative in Hennepin
50.27County for an intensive intervention
50.28transitional employment training project
50.29to move refugee and immigrant welfare
50.30recipients into unsubsidized employment
50.31leading to economic self-sufficiency. One
50.32of the five partners in the collaborative
50.33shall be chosen as the fiscal agent by the
50.34commissioner of employment and economic
50.35development. The primary effort must be
50.36on intensive employment skills training,
51.1including workplace English and overcoming
51.2cultural barriers, and on specialized training
51.3in fields of work which involve a credit-based
51.4curriculum. For recipients without a high
51.5school diploma or a GED, extra effort shall
51.6be made to help the recipient meet the ability
51.7to benefit test so the recipient can receive
51.8financial aid for further training. During
51.9the specialized training, efforts should be
51.10made to involve the recipients with an
51.11internship program and retention specialist.
51.12This appropriation is not available until the
51.13commissioner of finance has determined that
51.14at least an equal amount has been committed
51.15from non-state funds.
51.16(x) $7,500,000 each year is from the
51.17workforce development fund for grants to
51.18establish two emergency employment pilot
51.19projects in counties with high unemployment
51.20rates. The grants may be used for wage
51.21subsidies of up to 50 percent of the wage
51.22paid. The maximum wage subsidy shall
51.23be $5 per hour. $1,000,000 each year
51.24is from reserve funds allocated to the
51.25department of employment and economic
51.26development under the American Recovery
51.27and Reinvestment Act, Public Law 115-5,
51.28for Workforce Investment Act adult and
51.29displaced worker programs for on-the-job
51.30training for eligible persons in counties
51.31with high unemployment. This is a onetime
51.32appropriation.
51.33(y) $750,000 the first year is from the
51.34workforce development fund to Enterprise
51.35Minnesota, Inc. for the small business
52.1growth acceleration program established
52.2under Minnesota Statutes, section 116O.115.
52.3(z) $150,000 each year is for a grant to the
52.4nonprofit organization selected to administer
52.5the demonstration project for high-risk adults
52.6under Laws 2007, chapter 54, article 1,
52.7section 19, in order to continue the project
52.8for a second biennium. This is a onetime
52.9appropriation.
52.10(aa) All Wagner-Peyser funds available to
52.11the state for job seeker services under the
52.12American Recovery and Reinvestment Act of
52.132009, Public Law 111-5, must be allocated to
52.14workforce development centers for universal
52.15job seeker services.
52.16(bb) All Workforce Investment Act
52.17discretionary funds available to the
52.18commissioner for workforce development
52.19under the American Recovery and
52.20Reinvestment Act of 2009, Public Law
52.21111-5, must first be allocated to replace
52.22reductions in state general fund or workforce
52.23development fund resources for employment
52.24and training or youth programs.

52.25

Subd. 4.State-Funded Administration

2,446,000

52.26
52.27

Sec. 4. DEPARTMENT OF LABOR AND
INDUSTRY

52.28

Subdivision 1.Total Appropriation

22,780,000

`52.29`	Appropriations by Fund
`52.30`		2010	2011
`52.31`	General	880,000	880,000
`52.32` `52.33`	Workers' Compensation	20,871,000	20,871,000
`52.34` `52.35`	Workforce Development	1,029,000	1,029,000

53.1The amounts that may be spent for each
53.2purpose are specified in the following
53.3subdivisions.

53.4

Subd. 2.Workers' Compensation

14,890,000

53.5This appropriation is from the workers'
53.6compensation fund.
53.7$200,000 each year is for grants to the
53.8Vinland Center for rehabilitation services.
53.9Grants shall be distributed as the department
53.10refers injured workers to the Vinland Center
53.11for rehabilitation services.

53.12

Subd. 3.Labor Standards/Apprenticeship

1,909,000

`53.13`	Appropriations by Fund
`53.14`	General	880,000	880,000
`53.15` `53.16`	Workforce Development	1,029,000	1,029,000

53.17(a) The appropriation from the workforce
53.18development fund is for the apprenticeship
53.19program under Minnesota Statutes, chapter
53.20178, and includes $100,000 each year for
53.21labor education and advancement program
53.22grants and to expand and promote registered
53.23apprenticeship training in non-construction
53.24trade programs.
53.25(b) $150,000 each year is from the workforce
53.26development fund for prevailing wage
53.27enforcement.
53.28(c) $200,000 the first year and $200,000
53.29the second year from the assigned risk
53.30safety account for independent contractor
53.31investigator services to ensure compliance
53.32with the states' independent contractor
53.33exemption certificate program under
53.34Minnesota Statutes, section 181.723.

54.1

Subd. 4.General Support

5,981,000

54.2This appropriation is from the workers'
54.3compensation fund.

54.4
54.5

Sec. 5. BUREAU OF MEDIATION
SERVICES

54.6

Subdivision 1.Total Appropriation

1,683,000

54.7The amounts that may be spent for each
54.8purpose are specified in the following
54.9subdivisions.

54.10

Subd. 2.Mediation Services

1,583,000

54.11
54.12

Subd. 3.Labor Management Cooperation
Grants

100,000

54.13$100,000 each year is for grants to area labor
54.14management committees. Grants may be
54.15awarded for a 12-month period beginning
54.16July 1 each year. Any unencumbered balance
54.17remaining at the end of the first year does not
54.18cancel but is available for the second year.

54.19
54.20

Sec. 6. WORKERS' COMPENSATION
COURT OF APPEALS

1,703,000

54.21This appropriation is from the workers'
54.22compensation fund.

54.23

Sec. 7. BOARD OF ACCOUNTANCY

505,000

54.24
54.25
54.26
54.27

Sec. 8. BOARD OF ARCHITECTURE,
ENGINEERING, LAND SURVEYING,
LANDSCAPE ARCHITECTURE,
GEOSCIENCE, AND INTERIOR DESIGN

815,000

54.28
54.29

Sec. 9. BOARD OF BARBER AND
COSMETOLOGIST EXAMINERS

839,000

54.30The Department of Management and Budget,
54.31Management Analysis and Development
54.32Unit, shall conduct a comprehensive study
54.33of the current structure and operations of
54.34the board including, but not limited to
55.1its processes and procedures for decision
55.2making and dispute resolution, management,
55.3and internal communications, and report
55.4its findings and recommendations to the
55.5legislature by January 15, 2010.

55.6
55.7

Sec. 10. COMBATIVE SPORTS
COMMISSION

125,000

55.8To transition the commission to being a
55.9self-funded entity.

55.10 Sec. 11. Laws 1998, chapter 404, section 23, subdivision 6, as amended by Laws 2002,
55.11chapter 220, article 10, section 35, subdivision 6, is amended to read:

55.12

Subd. 6.St. Paul RiverCentre Arena

65,000,000

55.13This appropriation is from the general fund
55.14to the commissioner of finance for a loan to
55.15the city of St. Paul to demolish the existing
55.16St. Paul RiverCentre Arena and to design,
55.17construct, furnish, and equip a new arena.
55.18This appropriation is not available until the
55.19lessee to whom the city has leased the arena
55.20has agreed to make rental or other payments
55.21to the city under the terms set forth in this
55.22subdivision. The loan is repayable solely
55.23from and secured by the payments made
55.24to the city by the lessee. The loan is not a
55.25public debt and the full faith, credit, and
55.26taxing powers of the city are not pledged for
55.27its repayment.
55.28(a) ~~$48,000,000~~ $15,250,000 of the loan
55.29must be repaid to the commissioner, without
55.30interest, within 20 12 years from the date
55.31of substantial completion of the arena in
55.32accordance with the following schedule:
55.33(1) no repayments are due in the first two
55.34years from the date of substantial completion;
56.1(2) in each of the years three to five, the
56.2lessee must pay $1,250,000;
56.3(3) in each of the years six to ten, the lessee
56.4must pay $1,500,000; and
56.5(4) in each of the years 11 to 13 12, the lessee
56.6must pay $2,000,000;.
56.7~~(5) in year 14, the lessee must pay~~
56.8~~$3,000,000;~~
56.9~~(6) in year 15, the lessee must pay~~
56.10~~$4,000,000; and~~
56.11~~(7) in each of the years 16 to 20, the lessee~~
56.12~~must pay $4,750,000.~~
56.13(b) The commissioner must deposit the
56.14repayments in the state treasury and credit
56.15them to the general fund.
56.16(c) The loan may not be made until the
56.17commissioner has entered into an agreement
56.18with the city of St. Paul identifying the rental
56.19or other payments that will be made and
56.20establishing the dates on and the amounts
56.21in which the payments will be made to the
56.22city and by the city to the commissioner. The
56.23payments may include operating revenues
56.24and additional payments to be made by the
56.25lessee under agreements to be negotiated
56.26between the commissioner, the city, and the
56.27lessee. Those agreements may include, but
56.28are not limited to, an agreement whereby the
56.29lessee pledges to provide each year a letter
56.30of credit sufficient to guarantee the payment
56.31of the amount due for the next succeeding
56.32year; an agreement whereby the lessee
56.33agrees to maintain a net worth, certified each
56.34year by a financial institution or accounting
57.1firm satisfactory to the commissioner, that
57.2is greater than the balance due under the
57.3payment schedule in paragraph (a); and any
57.4other agreements the commissioner may
57.5deem necessary to ensure that the payments
57.6are made as scheduled.
57.7(d) The agreements must provide that the
57.8failure of the lessee to make a payment due
57.9to the city under the agreement is an event
57.10of default under the lease between the city
57.11and the lessee and that the state is entitled to
57.12enforce the remedies of the lessor under the
57.13lease in the event of default. Those remedies
57.14must include, but need not be limited to, the
57.15obligation of the lessee to pay the balance due
57.16for the remainder of the payment schedule
57.17in the event the lessee ceases to operate a
57.18National Hockey League team in the arena.
57.19(e) By January 1, 1999, the commissioner
57.20shall report to the chair of the senate
57.21committee on state government finance
57.22and the chair of the house committee on
57.23ways and means the terms of an agreement
57.24between the lessee and the amateur sports
57.25commission whereby the lessee agrees to
57.26make the facilities of the arena available to
57.27the commission on terms satisfactory to the
57.28commission for amateur sports activities
57.29consistent with the purposes of Minnesota
57.30Statutes, chapter 240A, each year during the
57.31time the loan is outstanding. The amateur
57.32sports commission must negotiate in good
57.33faith and may be required to pay no more
57.34than actual out-of-pocket expenses for the
57.35time it uses the arena. The agreement may
57.36not become effective before February 1,
58.11999. During any calendar year after 1999
58.2that an agreement under this paragraph is
58.3not in effect and a payment is due under
58.4the schedule, the lessee must pay to the
58.5commissioner a penalty of $750,000 for that
58.6year. If the amateur sports commission has
58.7not negotiated in good faith, no penalty is
58.8due.
58.9EFFECTIVE DATE.This section is effective the day after the city of St. Paul
58.10issues up to $40,000,000 in bonds for a community ice facility as authorized in law.

58.11ARTICLE 4

58.12EMPLOYMENT AND ECONOMIC DEVELOPMENT-RELATED PROVISIONS

58.13    Section 1. Minnesota Statutes 2008, section 15.75, subdivision 5, is amended to read:
58.14    Subd. 5. Agreements with Department of Employment and Economic
58.15Development. The commissioner of employment and economic development may
58.16enter into agreements with regional entities established under subdivision 4 to prepare
58.17plans to ensure coordination of the department's business development, community
58.18development, workforce development, and trade functions with programs of local units of
58.19government and other public and private development agencies in the regions. The plans
58.20will identify regional development priorities and serve as a guide for the implementation
58.21of the department's programs in the regions.

58.22    Sec. 2. Minnesota Statutes 2008, section 16B.54, subdivision 2, is amended to read:
58.23    Subd. 2. Vehicles. (a) The commissioner may direct an agency to make a transfer of
58.24a passenger motor vehicle or truck currently assigned to it. The transfer must be made to
58.25the commissioner for use in the central motor pool. The commissioner shall reimburse an
58.26agency whose motor vehicles have been paid for with funds dedicated by the Constitution
58.27for a special purpose and which are assigned to the central motor pool. The amount of
58.28reimbursement for a motor vehicle is its average wholesale price as determined from the
58.29midwest edition of the National Automobile Dealers Association official used car guide.
58.30(b) To the extent that funds are available for the purpose, the commissioner may
58.31purchase or otherwise acquire additional passenger motor vehicles and trucks necessary
58.32for the central motor pool. The title to all motor vehicles assigned to or purchased or
58.33acquired for the central motor pool is in the name of the Department of Administration.
59.1(c) On the request of an agency, the commissioner may transfer to the central
59.2motor pool any passenger motor vehicle or truck for the purpose of disposing of it. The
59.3department or agency transferring the vehicle or truck must be paid for it from the motor
59.4pool revolving account established by this section in an amount equal to two-thirds of the
59.5average wholesale price of the vehicle or truck as determined from the midwest edition of
59.6the National Automobile Dealers Association official used car guide.
59.7(d) The commissioner shall provide for the uniform marking of all motor vehicles.
59.8Motor vehicle colors must be selected from the regular color chart provided by the
59.9manufacturer each year. The commissioner may further provide for the use of motor
59.10vehicles without marking by:
59.11(1) the governor;
59.12(2) the lieutenant governor;
59.13(3) the Division of Criminal Apprehension, the Division of Alcohol and Gambling
59.14Enforcement, and arson investigators of the Division of Fire Marshal in the Department of
59.15Public Safety;
59.16(4) the Financial Institutions Division and investigative staff of the Department
59.17of Commerce;
59.18(5) the Division of Disease Prevention and Control of the Department of Health;
59.19(6) the State Lottery;
59.20(7) criminal investigators of the Department of Revenue;
59.21(8) state-owned community service facilities in the Department of Human Services;
59.22~~(9) the investigative staff of the Department of Employment and Economic~~
59.23~~Development;~~
59.24~~(10)~~ (9) the Office of the Attorney General; and
59.25~~(11)~~ (10) the investigative staff of the Gambling Control Board.

59.26    Sec. 3. Minnesota Statutes 2008, section 84.94, subdivision 3, is amended to read:
59.27    Subd. 3. Identification and classification. The Department of Natural Resources,
59.28with the cooperation of the state Geological Survey, ~~Departments~~ the Department of
59.29Transportation, and ~~Energy, Planning and Development~~ the Department of Employment
59.30and Economic Development, outside of the metropolitan area as defined in section
59.31473.121 , shall conduct a program of identification and classification of potentially valuable
59.32publicly or privately owned aggregate lands located outside of urban or developed areas
59.33where aggregate mining is restricted, without consideration of their present land use. The
59.34program shall give priority to identification and classification in areas of the state where
60.1urbanization or other factors are or may be resulting in a loss of aggregate resources to
60.2development. Lands shall be classified as:
60.3(1) identified resources, being those containing significant aggregate deposits;
60.4(2) potential resources, being those containing potentially significant deposits and
60.5meriting further evaluation; or
60.6(3) subeconomic resources, being those containing no significant deposits.
60.7As lands are classified, the information on the classification shall be transmitted to
60.8each of the departments and agencies named in this subdivision, to the planning authority
60.9of the appropriate county and municipality, and to the appropriate county engineer. The
60.10county planning authority shall notify owners of land classified under this subdivision by
60.11publication in a newspaper of general circulation in the county or by mail.

60.12    Sec. 4. Minnesota Statutes 2008, section 116J.035, subdivision 1, is amended to read:
60.13    Subdivision 1. Powers. (a) The commissioner may:
60.14(1) apply for, receive, and expend money from municipal, county, regional, and
60.15other government agencies;
60.16(2) apply for, accept, and disburse grants and other aids from other public or private
60.17sources;
60.18(3) contract for professional services if such work or services cannot be satisfactorily
60.19performed by employees of the department or by any other state agency;
60.20(4) enter into interstate compacts to jointly carry out such research and planning with
60.21other states or the federal government where appropriate;
60.22(5) distribute informational material at no cost to the public upon reasonable request;
60.23and
60.24(6) enter into contracts necessary for the performance of the commissioner's duties
60.25with federal, state, regional, metropolitan, local, and other agencies or units of government;
60.26educational institutions, including the University of Minnesota. Contracts made pursuant
60.27to this section shall not be subject to the competitive bidding requirements of chapter 16C.
60.28(b) The commissioner may apply for, receive, and expend money made available
60.29from federal or other sources for the purpose of carrying out the duties and responsibilities
60.30of the commissioner pursuant to this chapter.
60.31(c) All moneys received by the commissioner pursuant to this chapter shall be
60.32deposited in the state treasury and, subject to section 3.3005, are appropriated to the
60.33commissioner for the purpose for which the moneys have been received. The money shall
60.34not cancel and shall be available until expended.

60.35    Sec. 5. Minnesota Statutes 2008, section 116J.035, subdivision 6, is amended to read:
61.1    Subd. 6. Receipt of gifts, money; appropriation. (a) The commissioner may
61.2~~accept gifts, bequests, grants, payments for services, and other public and private money~~
61.3~~to help finance the activities of the department.~~:
61.4(1) apply for, accept, and disburse gifts, bequests, grants, payments for services,
61.5loans, or other property from the United States, the state, private foundations, or any
61.6other source;
61.7(2) enter into an agreement required for the gifts, grants, or loans; and
61.8(3) hold, use, and dispose of its assets according to the terms of the gift, grant,
61.9loan, or agreement.
61.10(b) Money received by the commissioner under this subdivision must be deposited
61.11in a separate account in the state treasury and invested by the State Board of Investment.
61.12The amount deposited, including investment earnings, is appropriated to the commissioner
61.13to carry out duties under this section.

61.14    Sec. 6. Minnesota Statutes 2008, section 116J.401, subdivision 2, is amended to read:
61.15    Subd. 2. Duties; authorizations; limitations. (a) The commissioner of employment
61.16and economic development shall:
61.17(1) provide regional development commissions, the Metropolitan Council, and
61.18units of local government with information, technical assistance, training, and advice on
61.19using federal and state programs;
61.20(2) receive and administer the Small Cities Community Development Block Grant
61.21Program authorized by Congress under the Housing and Community Development Act of
61.221974, as amended;
61.23(3) receive and administer the section 107 technical assistance program grants
61.24authorized by Congress under the Housing and Community Development Act of 1974, as
61.25amended;
61.26(4) receive, administer, and supervise other state and federal grants and grant
61.27programs for planning, community affairs, community development purposes,
61.28employment and training services, and other state and federal programs assigned to the
61.29department by law or by the governor in accordance with section 4.07;
61.30(5) receive applications for state and federal grants and grant programs for planning,
61.31community affairs, and community development purposes, and other state and federal
61.32programs assigned to the department by law or by the governor in accordance with section
61.334.07 ;
62.1(6) act as the agent of, and cooperate with, the federal government in matters of
62.2mutual concern, including the administration of any federal funds granted to the state to
62.3aid in the performance of functions of the commissioner;
62.4(7) provide consistent, integrated employment and training services across the state;
62.5(8) administer the Wagner-Peyser Act, the Workforce Investment Act, and other
62.6federal employment and training programs;
62.7(9) establish the standards for all employment and training services administered
62.8under this chapter and chapters 116L, 248, 268, and 268A;
62.9(10) administer the aspects of the Minnesota family investment program, general
62.10assistance, and food stamps that relate to employment and training services, subject to the
62.11contract under section 116L.86, subdivision 1;
62.12(11) obtain reports from local service units and service providers for the purpose of
62.13evaluating the performance of employment and training services;
62.14(12) as requested, certify employment and training services, and decertify services
62.15that fail to comply with performance criteria according to standards established by the
62.16commissioner;
62.17(13) develop standards for the contents and structure of the local service unit plans
62.18and plans for Indian tribe employment and training services, review and comment on those
62.19plans, and approve or disapprove the plans;
62.20(14) supervise the county boards of commissioners, local service units, and any other
62.21units of government designated in federal or state law as responsible for employment and
62.22training programs;
62.23(15) establish administrative standards and payment conditions for providers of
62.24employment and training services;
62.25(16) enter into agreements with Indian tribes as necessary to provide employment
62.26and training services as appropriate funds become available;
62.27(17) cooperate with the federal government and its employment and training
62.28agencies in any reasonable manner as necessary to qualify for federal aid for employment
62.29and training services and money;
62.30(18) administer and supervise all forms of unemployment insurance provided for
62.31under federal and state laws;
62.32(19) provide current state and substate labor market information and forecasts, in
62.33cooperation with other agencies;
62.34(20) require all general employment and training programs that receive state funds
62.35to make available information about opportunities for women in nontraditional careers
62.36in the trades and technical occupations;
63.1(21) consult with the Rehabilitation Council for the Blind on matters pertaining to
63.2programs and services for the blind and visually impaired;
63.3(22) enter into agreements with other departments of the state and local units of
63.4government as necessary; ~~and~~
63.5(23) establish and maintain administrative units necessary to perform administrative
63.6functions common to all divisions of the department.;
63.7(24) investigate, study, and undertake ways and means of promoting and encouraging
63.8the prosperous development and protection of the legitimate interest and welfare of
63.9Minnesota business, industry, and commerce, within and outside the state;
63.10(25) locate markets for manufacturers and processors and aid merchants in locating
63.11and contacting markets;
63.12(26) as necessary or useful for the proper execution of the powers and duties of the
63.13commissioner in promoting and developing Minnesota business, industry, and commerce,
63.14both within and outside the state, investigate and study conditions affecting Minnesota
63.15business, industry, and commerce; collect and disseminate information; and engage in
63.16technical studies, scientific investigations, statistical research, and educational activities;
63.17(27) plan and develop an effective business information service both for the direct
63.18assistance of business and industry of the state and for the encouragement of business and
63.19industry outside the state to use economic facilities within the state;
63.20(28) compile, collect, and develop periodically, or otherwise make available,
63.21information relating to current business conditions;
63.22(29) conduct or encourage research designed to further new and more extensive uses
63.23of the natural and other resources of the state and designed to develop new products
63.24and industrial processes;
63.25(30) study trends and developments in the industries of the state and analyze the
63.26reasons underlying the trends;
63.27(31) study costs and other factors affecting successful operation of businesses within
63.28the state;
63.29(32) make recommendations regarding circumstances promoting or hampering
63.30business and industrial development;
63.31(33) serve as a clearing house for business and industrial problems of the state;
63.32(34) advise small business enterprises regarding improved methods of accounting
63.33and bookkeeping;
63.34(35) cooperate with interstate commissions engaged in formulating and promoting
63.35the adoption of interstate compacts and agreements helpful to business, industry, and
63.36commerce;
64.1(36) cooperate with other state departments and with boards, commissions, and
64.2other state agencies in the preparation and coordination of plans and policies for the
64.3development of the state and for the use and conservation of its resources insofar as the
64.4use, conservation, and development may be appropriately directed or influenced by a
64.5state agency;
64.6(37) in connection with state, county, and municipal public works projects, assemble
64.7and coordinate information relative to the status, scope, cost, and employment possibilities
64.8and availability of materials, equipment, and labor and recommend limitations on the
64.9public works;
64.10(38) gather current progress information with reference to public and private
64.11works projects of the state and its political subdivisions with reference to conditions of
64.12employment;
64.13(39) inquire into and report to the governor, when requested by the governor, with
64.14respect to any program of public state improvements and its financing; and request
64.15and obtain information from other state departments or agencies as may be needed for
64.16the report;
64.17(40) study changes in population and current trends and prepare plans and suggest
64.18policies for the development and conservation of the resources of the state;
64.19(41) confer and cooperate with the executive, legislative, or planning authorities of
64.20the United States, neighboring states and provinces, and the counties and municipalities
64.21of neighboring states, for the purpose of bringing about a coordination between the
64.22development of neighboring provinces, states, counties, and municipalities and the
64.23development of this state;
64.24(42) generally gather, compile, and make available statistical information relating to
64.25business, trade, commerce, industry, transportation, communication, natural resources,
64.26and other like subjects in this state, with authority to call upon other state departments for
64.27statistical data and results obtained by them and to arrange and compile that statistical
64.28information in a reasonable manner;
64.29(43) publish documents and annually convene regional meetings to inform
64.30businesses, local government units, assistance providers, and other interested persons of
64.31changes in state and federal law related to economic development;
64.32(44) annually convene conferences of providers of economic development-related
64.33financial and technical assistance for the purposes of exchanging information on economic
64.34development assistance, coordinating economic development activities, and formulating
64.35economic development strategies;
65.1(45) provide business with information on the economic benefits of energy
65.2conservation and on the availability of energy conservation assistance;
65.3(46) as part of the biennial budget process, prepare performance measures for each
65.4business loan or grant program within the jurisdiction of the commissioner. Measures
65.5include source of funds for each program, number of jobs proposed or promised at the
65.6time of application and the number of jobs created, estimated number of jobs retained, the
65.7average salary and benefits for the jobs resulting from the program, and the number of
65.8projects approved;
65.9(47) provide a continuous program of education for business people;
65.10(48) publish, disseminate, and distribute information and statistics;
65.11(49) promote and encourage the expansion and development of markets for
65.12Minnesota products;
65.13(50) promote and encourage the location and development of new businesses in the
65.14state as well as the maintenance and expansion of existing businesses and for that purpose
65.15cooperate with state and local agencies and individuals, both within and outside the state;
65.16(51) advertise and disseminate information as to natural resources, desirable
65.17locations, and other advantages for the purpose of attracting businesses to locate in this
65.18state;
65.19(52) aid the various communities in this state in attracting business to their
65.20communities;
65.21(53) advise and cooperate with municipal, county, regional, and other planning
65.22agencies and planning groups within the state for the purpose of promoting coordination
65.23between the state and localities as to plans and development in order to maintain a high
65.24level of gainful employment in private profitable production and achieve commensurate
65.25advancement in social and cultural welfare;
65.26(54) coordinate the activities of statewide and local planning agencies, correlate
65.27information secured from them and from state departments and disseminate information
65.28and suggestions to the planning agencies;
65.29(55) encourage and assist in the organization and functioning of local planning
65.30agencies where none exist; and
65.31(56) adopt measures calculated to promote public interest in and understanding of
65.32the problems of planning and, to that end, may publish and distribute copies of any plan
65.33or any report and may employ other means of publicity and education that will give full
65.34effect to the provisions of sections 116J.58 to 116J.63.
65.35(b) At the request of any governmental subdivision in paragraph (a), clause (53),
65.36the commissioner may provide planning assistance, which includes but is not limited to
66.1surveys, land use studies, urban renewal plans, technical services and other planning work
66.2to any city or other municipality in the state or perform similar planning work in any
66.3county, metropolitan, or regional area in the state. The commissioner must not perform
66.4the planning work with respect to a metropolitan or regional area which is under the
66.5jurisdiction for planning purposes of a county, metropolitan, regional, or joint planning
66.6body, except at the request or with the consent of the respective county, metropolitan,
66.7regional, or joint planning body.
66.8(c) The commissioner is authorized to:
66.9(1) receive and expend money from municipal, county, regional, and other planning
66.10agencies;
66.11(2) accept and disburse grants and other aids for planning purposes from the federal
66.12government and from other public or private sources;
66.13(3) utilize money received under clause (2) for the employment of consultants and
66.14other temporary personnel to assist in the supervision or performance of planning work
66.15supported by money other than state-appropriated money;
66.16(4) enter into contracts with agencies of the federal government, units of local
66.17government or combinations thereof, and with private persons that are necessary in the
66.18performance of the planning assistance function of the commissioner; and
66.19(5) assist any local government unit in filling out application forms for the federal
66.20grants-in-aid.
66.21(d) In furtherance of its planning functions, any city or town, however organized,
66.22may expend money and contract with agencies of the federal government, appropriate
66.23departments of state government, other local units of government, and with private
66.24persons.

66.25    Sec. 7. Minnesota Statutes 2008, section 116J.431, subdivision 1, is amended to read:
66.26    Subdivision 1. Grant program established; purpose. (a) The commissioner shall
66.27make grants to counties or cities to provide up to 50 percent of the capital costs of public
66.28infrastructure necessary for an eligible economic development project. The county or city
66.29receiving a grant must provide for the remainder of the costs of the project, either in cash
66.30or in kind. In-kind contributions may include the value of site preparation other than the
66.31public infrastructure needed for the project.
66.32~~For purposes of this section, "city" means a statutory or home rule charter city~~
66.33~~located outside the metropolitan area, as defined in section~~ ~~473.121, subdivision 2~~.
66.34~~"Public infrastructure" means publicly owned physical infrastructure necessary to~~
66.35~~support economic development projects, including, but not limited to, sewers, water~~
67.1~~supply systems, utility extensions, streets, wastewater treatment systems, stormwater~~
67.2~~management systems, and facilities for pretreatment of wastewater to remove phosphorus.~~
67.3(b) The purpose of the grants made under this section is to keep or enhance jobs in
67.4the area, increase the tax base, or to expand or create new economic development.
67.5EFFECTIVE DATE.This section is effective the day following final enactment.

67.6    Sec. 8. Minnesota Statutes 2008, section 116J.431, is amended by adding a subdivision
67.7to read:
67.8    Subd. 1a. Definitions. (a) For purposes of this section, the following terms have
67.9the meanings given.
67.10(b) "City" means a statutory or home rule charter city located outside the
67.11metropolitan area, as defined in section 473.121, subdivision 2.
67.12(c) "County" means a county located outside the metropolitan area, as defined in
67.13section 473.121, subdivision 2.
67.14(d) "Public infrastructure" means publicly owned physical infrastructure necessary
67.15to support economic development projects, including, but not limited to, sewers, water
67.16supply systems, utility extensions, streets, wastewater treatment systems, stormwater
67.17management systems, and facilities for pretreatment of wastewater to remove phosphorus.
67.18EFFECTIVE DATE.This section is effective the day following final enactment.

67.19    Sec. 9. Minnesota Statutes 2008, section 116J.431, subdivision 2, is amended to read:
67.20    Subd. 2. Eligible projects. An economic development project for which a county or
67.21city may be eligible to receive a grant under this section includes:
67.22(1) manufacturing;
67.23(2) technology;
67.24(3) warehousing and distribution;
67.25(4) research and development;
67.26(5) agricultural processing, defined as transforming, packaging, sorting, or grading
67.27livestock or livestock products into goods that are used for intermediate or final
67.28consumption, including goods for nonfood use; or
67.29(6) industrial park development that would be used by any other business listed
67.30in this subdivision.
67.31EFFECTIVE DATE.This section is effective the day following final enactment.

67.32    Sec. 10. Minnesota Statutes 2008, section 116J.431, subdivision 4, is amended to read:
68.1    Subd. 4. Application. (a) The commissioner must develop forms and procedures
68.2for soliciting and reviewing applications for grants under this section. At a minimum, a
68.3county or city must include in its application a resolution of the county or city council
68.4certifying that the required local match is available. The commissioner must evaluate
68.5complete applications for eligible projects using the following criteria:
68.6(1) the project is an eligible project as defined under subdivision 2;
68.7(2) the project will result in substantial public and private capital investment and
68.8provide substantial economic benefit to the county or city in which the project would
68.9be located;
68.10(3) the project is not relocating substantially the same operation from another
68.11location in the state, unless the commissioner determines the project cannot be reasonably
68.12accommodated within the county or city in which the business is currently located, or the
68.13business would otherwise relocate to another state; and
68.14(4) the project will create or maintain full-time jobs.
68.15(b) The determination of whether to make a grant for a site is within the discretion of
68.16the commissioner, subject to this section. The commissioner's decisions and application of
68.17the priorities are not subject to judicial review, except for abuse of discretion.
68.18EFFECTIVE DATE.This section is effective the day following final enactment.

68.19    Sec. 11. Minnesota Statutes 2008, section 116J.431, subdivision 6, is amended to read:
68.20    Subd. 6. Maximum grant amount. A county or city may receive no more than
68.21$1,000,000 in two years for one or more projects.
68.22EFFECTIVE DATE.This section is effective the day following final enactment.

68.23    Sec. 12. Minnesota Statutes 2008, section 116J.554, subdivision 1, is amended to read:
68.24    Subdivision 1. Authority. (a) The commissioner may make a grant to an applicant
68.25development authority to pay for up to 75 percent of the project costs for a qualifying site.
68.26(b) The commissioner may also make a grant to an applicant development authority
68.27to pay up to 75 percent or $50,000, whichever is less, toward the cost of performing
68.28contaminant investigations and the development of a response action plan for a qualifying
68.29site.
68.30(c) The commissioner may also make a grant to an applicant to fill a site that would
68.31represent more than 50 percent of the remaining land in a city suitable for industrial
68.32development if it were properly filled.
68.33(d) The determination of whether to make a grant for a qualifying site is within the
68.34sole discretion of the commissioner, subject to the process provided by this section, and
69.1available unencumbered money in the appropriation. The commissioner's decisions and
69.2application of the priorities under section 116J.555 are not subject to judicial review,
69.3except for abuse of discretion.
69.4(e) The total amount of money provided in grants under paragraph (b) may not
69.5exceed ~~$250,000~~ $500,000 per fiscal year.
69.6(f) In making grants under paragraph (b), the commissioner shall give priority to
69.7applicants that have not received a grant under paragraph (a) or section 473.252 during
69.8the year ending on the date of application.
69.9EFFECTIVE DATE.This section is effective the day following final enactment.

69.10    Sec. 13. Minnesota Statutes 2008, section 116J.555, subdivision 1, is amended to read:
69.11    Subdivision 1. Priorities. (a) The legislature expects that applications for grants
69.12will exceed the available appropriations and the agency will be able to provide grants to
69.13only some of the applicant development authorities.
69.14    (b) If applications for grants for qualified sites exceed the available appropriations,
69.15the agency shall make grants for sites that, in the commissioner's judgment, provide
69.16the highest return in public benefits for the public costs incurred and that meet all the
69.17requirements provided by law. In making this judgment, the commissioner shall consider
69.18the following factors:
69.19    (1) the recommendations or ranking of projects by the commissioner of the Pollution
69.20Control Agency regarding the potential threat to public health and the environment that
69.21would be reduced or eliminated by completion of each of the response action plans;
69.22    (2) the potential increase in the property tax base of the local taxing jurisdictions,
69.23considered relative to the fiscal needs of the jurisdictions, that will result from
69.24developments that will occur because of completion of each of the response action plans;
69.25    (3) the social value to the community of the cleanup and redevelopment of the site,
69.26including the importance of development of the proposed public facilities on each of
69.27the sites;
69.28    (4) the probability that each site will be cleaned up without use of government
69.29money in the reasonably foreseeable future by considering but not limited to the current
69.30market value of the site versus the cleanup cost;
69.31    (5) the amount of cleanup costs for each site; and
69.32    (6) the amount of the commitment of municipal or other local resources to pay for
69.33the cleanup costs.
69.34    The factors are not listed in a rank order of priority; rather the commissioner may
69.35weigh each factor, depending upon the facts and circumstances, as the commissioner
70.1considers appropriate. The commissioner may consider other factors that affect the net
70.2return of public benefits for completion of the response action plan. The commissioner,
70.3notwithstanding the listing of priorities and the goal of maximizing the return of public
70.4benefits, shall make grants that distribute available money to sites both within and outside
70.5of the metropolitan area. The commissioner shall provide a written statement of the
70.6supporting reasons for each grant. Unless sufficient applications are not received for
70.7qualifying sites outside of the metropolitan area, at least 25 50 percent of the money
70.8provided as grants must be made for sites located outside of the metropolitan area.
70.9EFFECTIVE DATE.This section is effective the day following final enactment.

70.10    Sec. 14. Minnesota Statutes 2008, section 116J.68, subdivision 2, is amended to read:
70.11    Subd. 2. Duties. The bureau shall:
70.12~~(a)~~ (1) provide information and assistance with respect to all aspects of business
70.13planning and business management related to the start-up, operation, or expansion of
70.14a small business in Minnesota;
70.15~~(b)~~ (2) refer persons interested in the start-up, operation, or expansion of a small
70.16business in Minnesota to assistance programs sponsored by federal agencies, state
70.17agencies, educational institutions, chambers of commerce, civic organizations, community
70.18development groups, private industry associations, and other organizations ~~or to the~~
70.19~~business assistance referral system established by the Minnesota Project Outreach~~
70.20~~Corporation~~;
70.21~~(c)~~ (3) plan, develop, and implement a master file of information on small business
70.22assistance programs of federal, state, and local governments, and other public and private
70.23organizations so as to provide comprehensive, timely information to the bureau's clients;
70.24~~(d)~~ (4) employ staff with adequate and appropriate skills and education and training
70.25for the delivery of information and assistance;
70.26~~(e)~~ (5) seek out and utilize, to the extent practicable, contributed expertise and
70.27services of federal, state, and local governments, educational institutions, and other public
70.28and private organizations;
70.29~~(f)~~ (6) maintain a close and continued relationship with the director of the
70.30procurement program within the Department of Administration so as to facilitate the
70.31department's duties and responsibilities under sections 16C.16 to 16C.19 relating to the
70.32small targeted group business and economically disadvantaged business program of the
70.33state;
70.34~~(g)~~ (7) develop an information system which will enable the commissioner and other
70.35state agencies to efficiently store, retrieve, analyze, and exchange data regarding small
71.1business development and growth in the state. All executive branch agencies of state
71.2government and the secretary of state shall to the extent practicable, assist the bureau in
71.3the development and implementation of the information system;
71.4~~(h)~~ (8) establish and maintain a toll free telephone number so that all small business
71.5persons anywhere in the state can call the bureau office for assistance. An outreach
71.6program shall be established to make the existence of the bureau well known to its
71.7potential clientele throughout the state. If the small business person requires a referral to
71.8another provider the bureau may use the business assistance referral system established by
71.9the Minnesota Project Outreach Corporation;
71.10~~(i)~~ (9) conduct research and provide data as required by the state legislature;
71.11~~(j)~~ (10) develop and publish material on all aspects of the start-up, operation, or
71.12expansion of a small business in Minnesota;
71.13~~(k)~~ (11) collect and disseminate information on state procurement opportunities,
71.14including information on the procurement process;
71.15~~(l)~~ (12) develop a public awareness program through the use of newsletters, personal
71.16contacts, and electronic and print news media advertising about state assistance programs
71.17for small businesses, including those programs specifically for socially disadvantaged
71.18small business persons;
71.19~~(m)~~ (13) enter into agreements with the federal government and other public and
71.20private entities to serve as the statewide coordinator or host agency for the federal small
71.21business development center program under United States Code, title 15, section 648; and
71.22~~(n)~~ (14) assist providers in the evaluation of their programs and the assessment of
71.23their service area needs. The bureau may establish model evaluation techniques and
71.24performance standards for providers to use.

71.25    Sec. 15. Minnesota Statutes 2008, section 116J.8731, subdivision 2, is amended to read:
71.26    Subd. 2. Administration. The commissioner shall administer the fund as part of
71.27the Small Cities Development Block Grant Program. Funds shall be made available to
71.28local communities and recognized Indian tribal governments in accordance with the rules
71.29adopted for economic development grants in the small cities community development
71.30block grant program, except that all units of general purpose local government are eligible
71.31applicants for Minnesota investment funds. The commissioner may also make funds
71.32available within the department for eligible expenditures under subdivision 3, clause
71.33(2). A home rule charter or statutory city, county, or town may loan or grant money
71.34received from repayment of funds awarded under this section to a regional development
71.35commission, other regional entity, or statewide community capital fund as determined by
72.1the commissioner, to capitalize or to provide the local match required for capitalization of
72.2a regional or statewide revolving loan fund.

72.3    Sec. 16. Minnesota Statutes 2008, section 116J.8731, subdivision 3, is amended to read:
72.4    Subd. 3. Eligible expenditures. The money appropriated for this section may
72.5be used to ~~provide~~ fund:
72.6(1) grants for infrastructure, loans, loan guarantees, interest buy-downs, and other
72.7forms of participation with private sources of financing, provided that a loan to a private
72.8enterprise must be for a principal amount not to exceed one-half of the cost of the project
72.9for which financing is sought.; and
72.10(2) strategic investments in renewable energy market development, such as low
72.11interest loans for renewable energy equipment manufacturing, training grants to support
72.12renewable energy workforce, development of a renewable energy supply chain that
72.13represents and strengthens the industry throughout the state, and external marketing to
72.14garner more national and international investment into Minnesota's renewable sector.
72.15Expenditures in external marketing for renewable energy market development are not
72.16subject to the limitations in clause (1).

72.17    Sec. 17. [116J.997] PROGRAM ACCOUNTABILITY REQUIREMENTS.
72.18    Subdivision 1. Accountability measurement. By October 1, 2009, the
72.19commissioner of employment and economic development shall develop a uniform
72.20accountability report for economic development or workforce related programs funded in
72.21whole or in part by state or federal funds. The commissioner shall also develop a formula
72.22for measuring the return on investment for each program and a comparison of the return
72.23on investment of all programs funded in whole or in part by state or federal funds. The
72.24requirements of this section apply to programs administered directly by the commissioner
72.25or administered by other organizations under a grant made by the department. The report
72.26and formula required by this subdivision shall be submitted to the chairs of the committees
72.27of the house of representatives and senate having jurisdiction over economic development
72.28and workforce policy and finance by October 15, 2009, for review and comment.
72.29    Subd. 2. Report to the legislature. By December 31 of each even-numbered year
72.30the commissioner must report to the committees of the house of representatives and the
72.31senate having jurisdiction over economic development and workforce policy and finance
72.32the following information for each program subject to the requirements of subdivision 1:
72.33(1) the target population;
72.34(2) the number of jobs affected by the program, including the number of net new
72.35jobs created in the state and the average annual wage per job;
73.1(3) the number of individuals leaving the unemployment compensation program as
73.2a result of the program;
73.3(4) the number of individuals leaving the Minnesota Family Investment Program
73.4support as a result of the program;
73.5(5) the region of the state in which the program operated;
73.6(6) the amount of state or federal funds allocated to the program; and
73.7(7) the return on investment as calculated by the formula developed by the
73.8commissioner.
73.9    Subd. 3. Report to the commissioner. Before receiving additional state funds, a
73.10recipient of a grant made by or through the department must report to the commissioner
73.11by September 1 of each even-numbered year on each of the items in subdivision 2 for each
73.12program it administers. The report must be in a format prescribed by the commissioner.
73.13Beginning November 1, 2009, the commissioner shall provide notice to grant
73.14applicants and recipients regarding the data collection and reporting requirements under
73.15this subdivision and must provide technical assistance to applicants and recipients to assist
73.16in complying with the requirements of this subdivision.
73.17    Subd. 4. Biennial budget request. The information collected and reported under
73.18subdivisions 2 and 3 shall be included in budgets submitted to the legislature under
73.19section 16A.11.
73.20EFFECTIVE DATE.This section is effective the day following final enactment.

73.21    Sec. 18. Minnesota Statutes 2008, section 116L.03, subdivision 5, is amended to read:
73.22    Subd. 5. Terms. The terms of appointed members shall be for four years ~~except for~~
73.23~~the initial appointments. The initial appointments of the governor shall have the following~~
73.24~~terms: two members each for one, two, three, and four years~~. No member shall serve
73.25more than two terms, and no person shall be appointed after December 31, 2001, for any
73.26term that would cause that person to serve a total of more than eight years on the board.
73.27Compensation for board members is as provided in section 15.0575, subdivision 3.

73.28    Sec. 19. Minnesota Statutes 2008, section 116L.05, subdivision 5, is amended to read:
73.29    Subd. 5. Use of workforce development funds. After March 1 of any fiscal year,
73.30the board may use workforce development funds for the purposes outlined in sections
73.31116L.02, 116L.04, and 116L.10 to 116L.14, or to provide incumbent worker training
73.32services under section 116L.18 if the following conditions have been met:
73.33    (1) the board examines relevant economic indicators, including the projected
73.34number of layoffs for the remainder of the fiscal year and the next fiscal year, evidence of
74.1declining and expanding industries, the number of initial applications for and the number
74.2of exhaustions of unemployment benefits, job vacancy data, and any additional relevant
74.3information brought to the board's attention;
74.4    (2) the board accounts for all allocations made in section 116L.17, subdivision 2;
74.5    (3) based on the past expenditures and projected revenue, the board estimates future
74.6funding needs for services under section 116L.17 for the remainder of the current fiscal
74.7year and the next fiscal year;
74.8    (4) the board determines there will be unspent funds after meeting the needs of
74.9dislocated workers in the current fiscal year and there will be sufficient revenue to meet
74.10the needs of dislocated workers in the next fiscal year; and
74.11    (5) the board reports its findings in clauses (1) to (4) to the chairs of legislative
74.12committees with jurisdiction over the workforce development fund, to the commissioners
74.13of revenue and finance, and to the public.

74.14    Sec. 20. Minnesota Statutes 2008, section 116L.20, subdivision 1, is amended to read:
74.15    Subdivision 1. Determination and collection of special assessment. (a) In addition
74.16to amounts due from an employer under the Minnesota unemployment insurance program,
74.17each employer, except an employer making reimbursements is liable for a special
74.18assessment levied at the rate of ~~.10~~ .12 percent per year on all taxable wages, as defined in
74.19section 268.035, subdivision 24, except that effective July 1, 2009, until June 30, 2011, the
74.20special assessment shall be levied at a rate of .14 percent per year on all taxable wages as
74.21defined in section 268.035, subdivision 24. The assessment shall become due and be paid
74.22by each employer on the same schedule and in the same manner as other amounts due
74.23from an employer under section 268.051, subdivision 1.
74.24    (b) The special assessment levied under this section shall be subject to the same
74.25requirements and collection procedures as any amounts due from an employer under the
74.26Minnesota unemployment insurance program.

74.27    Sec. 21. Minnesota Statutes 2008, section 116L.362, subdivision 1, is amended to read:
74.28    Subdivision 1. Generally. (a) The commissioner shall make grants to eligible
74.29organizations for programs to provide education and training services to targeted youth.
74.30The purpose of these programs is to provide specialized training and work experience for
74.31targeted youth who have not been served effectively by the current educational system.
74.32The programs are to include a work experience component with work projects that result
74.33in the rehabilitation, improvement, or construction of (1) residential units for the homeless,
74.34or; (2) improvements to the energy efficiency and environmental health of residential
75.1units; (3) facilities to support community garden projects; or (4) education, social service,
75.2or health facilities which are owned by a public agency or a private nonprofit organization.
75.3(b) Eligible facilities must principally provide services to homeless or very low
75.4income individuals and families, and include the following:
75.5(1) Head Start or day care centers;
75.6(2) homeless, battered women, or other shelters;
75.7(3) transitional housing;
75.8(4) youth or senior citizen centers; ~~and~~
75.9(5) community health centers.; and
75.10(6) community garden facilities.
75.11Two or more eligible organizations may jointly apply for a grant. The commissioner
75.12shall administer the grant program.

75.13    Sec. 22. Minnesota Statutes 2008, section 116L.364, subdivision 3, is amended to read:
75.14    Subd. 3. Work experience component. A work experience component must be
75.15included in each program. The work experience component must provide vocational skills
75.16training in an industry where there is a viable expectation of job opportunities. A training
75.17subsidy, living allowance, or stipend, not to exceed an amount equal to 100 percent of the
75.18poverty line for a family of two as defined in United States Code, title 42, section 673,
75.19paragraph (2), may be provided to program participants. The wage or stipend must be
75.20provided to participants who are recipients of public assistance in a manner or amount
75.21which will not reduce public assistance benefits. The work experience component must be
75.22designed so that work projects result in (1) the expansion or improvement of residential
75.23units for homeless persons and very low income families~~, or~~ ; (2) improvements to the
75.24energy efficiency and environmental health of residential units; (3) facilities to support
75.25community garden projects; or (4) rehabilitation, improvement, or construction of eligible
75.26education, social service, or health facilities that principally serve homeless or very low
75.27income individuals and families. Any work project must include direct supervision by
75.28individuals skilled in each specific vocation. Program participants may earn credits
75.29toward the completion of their secondary education from their participation in the work
75.30experience component.

75.31    Sec. 23. Minnesota Statutes 2008, section 116L.871, subdivision 1, is amended to read:
75.32    Subdivision 1. Responsibility and certification. (a) Unless prohibited by federal
75.33law or otherwise determined by state law, a local service unit is responsible for the
75.34delivery of employment and training services. ~~As of July 1, 1998,~~ Employment and
75.35training services may be delivered by certified employment and training service providers.
76.1(b) The local service unit's employment and training service provider must meet the
76.2certification standards in this subdivision if the county requests that they be certified
76.3to deliver any of the following employment and training services and programs: wage
76.4subsidies; general assistance grant diversion; food stamp employment and training
76.5programs; community work experience programs; and MFIP employment services.
76.6(c) The commissioner shall certify a local service unit's service provider to provide
76.7these employment and training services and programs if the commissioner determines
76.8that the provider has:
76.9(1) past experience in direct delivery of the programs specified in paragraph (b);
76.10(2) staff capabilities and qualifications, including adequate staff to provide timely
76.11and effective services to clients, and proven staff experience in providing specific services
76.12such as assessments, career planning, job development, job placement, support services,
76.13and knowledge of community services and educational resources;
76.14(3) demonstrated effectiveness in providing services to public assistance recipients
76.15and other economically disadvantaged clients; and
76.16(4) demonstrated administrative capabilities, including adequate fiscal and
76.17accounting procedures, financial management systems, participant data systems, and
76.18record retention procedures.
76.19(d) When the only service provider that meets the criterion in paragraph (c), clause
76.20(1), has been decertified, according to subdivision 1a, in that local service unit, the
76.21following criteria shall be substituted: past experience in direct delivery of multiple,
76.22coordinated, nonduplicative services, including outreach, assessments, identification of
76.23client barriers, employability development plans, and provision or referral to support
76.24services.

76.25    Sec. 24. Minnesota Statutes 2008, section 116L.96, is amended to read:
76.26116L.96 DISPLACED HOMEMAKER PROGRAMS.
76.27The commissioner of ~~economic security~~ employment and economic development
76.28may enter into arrangements with existing private or nonprofit organizations and agencies
76.29with experience in dealing with displaced homemakers to provide counseling and
76.30training services. The commissioner shall assist displaced homemakers in applying for
76.31appropriate welfare programs and shall take welfare allowances received into account
76.32in setting the stipend level. Income received as a stipend under these programs shall
76.33be totally disregarded for purposes of determining eligibility for and the amount of a
76.34general assistance grant.

76.35    Sec. 25. Minnesota Statutes 2008, section 116O.115, subdivision 2, is amended to read:
77.1    Subd. 2. Qualified company. A company is qualified to receive assistance under
77.2the small business growth acceleration program if it the company is a manufacturing
77.3company or a manufacturing-related service company that employs ~~100~~ 250 or fewer
77.4full-time equivalent employees.

77.5    Sec. 26. Minnesota Statutes 2008, section 116O.115, subdivision 4, is amended to read:
77.6    Subd. 4. Fund awards; use of funds. (a) The corporation shall establish
77.7procedures for determining which applicants for assistance under the small business
77.8growth acceleration program will receive program funding. Funding shall be awarded
77.9only to accelerate a qualified company's adoption of needed technology or business
77.10improvements when the corporation concludes that it is unlikely the improvements could
77.11be accomplished in any other way.
77.12    (b) The maximum amount of funds awarded to a qualified company under the small
77.13business growth acceleration program for a particular project must not exceed 50 75
77.14percent of the total cost of a project and must not under any circumstances exceed $25,000
77.15during a calendar year. The corporation shall not award to a qualified company small
77.16business growth acceleration program funds in excess of $50,000 per year.
77.17    (c) Any funds awarded to a qualified company under the small business growth
77.18acceleration program must be used for business services and products that will enhance the
77.19operation of the company. These business services and products must come either directly
77.20from the corporation or from a network of expert providers identified and approved by
77.21the corporation. No company receiving small business growth acceleration program
77.22funds may use the funds for refinancing, overhead costs, new construction, renovation,
77.23equipment, or computer hardware.
77.24    (d) Any funds awarded must be disbursed to the qualified company as reimbursement
77.25documented according to requirements of the corporation.
77.26(e) Receipt of funds from an award under this section is contingent upon a
77.27contribution of funds by the qualified company to the project, as follows:
77.28(1) a company with under 50 employees must contribute one dollar for every three
77.29dollars of program assistance awarded;
77.30(2) a company with 50 to 100 employees must contribute one dollar for every one
77.31dollar of program assistance awarded; and
77.32(3) a company with 101 to 250 employees must contribute three dollars for every
77.33one dollar of program assistance awarded.

77.34    Sec. 27. Minnesota Statutes 2008, section 123A.08, subdivision 1, is amended to read:
77.35    Subdivision 1. Outside sources for resources and services. A center may accept:
78.1(1) resources and services from postsecondary institutions serving center pupils;
78.2(2) resources from ~~Job Training Partnership Act~~ Workforce Investment Act of 1998,
78.3Public Law 105-220 programs, including funding for jobs skills training for various
78.4groups and the percentage reserved for education;
78.5(3) resources from the Department of Human Services and county welfare funding;
78.6(4) resources from a local education and employment transitions partnership; or
78.7(5) private resources, foundation grants, gifts, corporate contributions, and other
78.8grants.

78.9    Sec. 28. Minnesota Statutes 2008, section 124D.49, subdivision 3, is amended to read:
78.10    Subd. 3. Local education and employment transitions systems. A local education
78.11and employment transitions partnership must assess the needs of employers, employees,
78.12and learners, and develop a plan for implementing and achieving the objectives of a local
78.13or regional education and employment transitions system. The plan must provide for a
78.14comprehensive local system for assisting learners and workers in making the transition
78.15from school to work or for retraining in a new vocational area. The objectives of a local
78.16education and employment transitions system include:
78.17(1) increasing the effectiveness of the educational programs and curriculum of
78.18elementary, secondary, and postsecondary schools and the work site in preparing students
78.19in the skills and knowledge needed to be successful in the workplace;
78.20(2) implementing learner outcomes for students in grades kindergarten through 12
78.21designed to introduce the world of work and to explore career opportunities, including
78.22nontraditional career opportunities;
78.23(3) eliminating barriers to providing effective integrated applied learning,
78.24service-learning, or work-based curriculum;
78.25(4) increasing opportunities to apply academic knowledge and skills, including
78.26skills needed in the workplace, in local settings which include the school, school-based
78.27enterprises, postsecondary institutions, the workplace, and the community;
78.28(5) increasing applied instruction in the attitudes and skills essential for success in
78.29the workplace, including cooperative working, leadership, problem-solving, and respect
78.30for diversity;
78.31(6) providing staff training for vocational guidance counselors, teachers, and other
78.32appropriate staff in the importance of preparing learners for the transition to work, and in
78.33methods of providing instruction that incorporate applied learning, work-based learning,
78.34and service-learning experiences;
79.1(7) identifying and enlisting local and regional employers who can effectively
79.2provide work-based or service-learning opportunities, including, but not limited to,
79.3apprenticeships, internships, and mentorships;
79.4(8) recruiting community and workplace mentors including peers, parents, employers
79.5and employed individuals from the community, and employers of high school students;
79.6(9) identifying current and emerging educational, training, and employment needs of
79.7the area or region, especially within industries with potential for job growth;
79.8(10) improving the coordination and effectiveness of local vocational and job
79.9training programs, including vocational education, adult basic education, tech prep,
79.10apprenticeship, service-learning, youth entrepreneur, youth training and employment
79.11programs administered by the commissioner of employment and economic development,
79.12and local job training programs under the ~~Job Training Partnership Act, United States~~
79.13~~Code, title 29, section 1501, et seq.~~ Workforce Investment Act of 1998, Public Law
79.14105-220;
79.15(11) identifying and applying for federal, state, local, and private sources of funding
79.16for vocational or applied learning programs;
79.17(12) providing students with current information and counseling about career
79.18opportunities, potential employment, educational opportunities in postsecondary
79.19institutions, workplaces, and the community, and the skills and knowledge necessary to
79.20succeed;
79.21(13) providing educational technology, including interactive television networks
79.22and other distance learning methods, to ensure access to a broad variety of work-based
79.23learning opportunities;
79.24(14) including students with disabilities in a district's vocational or applied learning
79.25program and ways to serve at-risk learners through collaboration with area learning
79.26centers under sections 123A.05 to 123A.09, or other alternative programs; and
79.27(15) providing a warranty to employers, postsecondary education programs, and
79.28other postsecondary training programs, that learners successfully completing a high school
79.29work-based or applied learning program will be able to apply the knowledge and work
79.30skills included in the program outcomes or graduation requirements. The warranty shall
79.31require education and training programs to continue to work with those learners that need
79.32additional skill development until they can demonstrate achievement of the program
79.33outcomes or graduation requirements.

79.34    Sec. 29. Minnesota Statutes 2008, section 160.276, subdivision 8, is amended to read:
80.1    Subd. 8. Revenue. The agreement may provide that the vendor pay a portion of
80.2the gross revenues derived from advertising. These revenues must be paid to the state for
80.3deposit in the safety rest area account established in section 160.2745. The commissioner
80.4of transportation and director of ~~the Office of~~ Explore Minnesota Tourism may enter into
80.5an interagency agreement to define the distribution of the revenues generated in this
80.6subdivision and subdivisions 2a and 3a.

80.7    Sec. 30. Minnesota Statutes 2008, section 241.27, subdivision 1, is amended to read:
80.8    Subdivision 1. Establishment of Minnesota correctional industries; MINNCOR
80.9industries. For the purpose of providing adequate, regular and suitable employment,
80.10educational training, and to aid the inmates of state correctional facilities, the
80.11commissioner of corrections may establish, equip, maintain and operate at any correctional
80.12facility under the commissioner's control such industrial and commercial activities as may
80.13be deemed necessary and suitable to the profitable employment, educational training and
80.14development of proper work habits of the inmates of state correctional facilities. The
80.15industrial and commercial activities authorized by this section are designated MINNCOR
80.16industries and shall be for the primary purpose of sustaining and ensuring MINNCOR
80.17industries' self-sufficiency, providing educational training, meaningful employment
80.18and the teaching of proper work habits to the inmates of correctional facilities under
80.19the control of the commissioner of corrections, and not solely as competitive business
80.20ventures. The net profits from these activities shall be used for the benefit of the inmates
80.21as it relates to education, self-sufficiency skills, and transition services and not to fund
80.22non-inmate-related activities or mandates. Prior to the establishment of any industrial and
80.23commercial activity, the commissioner of corrections may consult with representatives
80.24of business, industry, organized labor, the state Department of Education, the state
80.25Apprenticeship Council, the state Department of Labor and Industry, the Department of
80.26Employment ~~Security~~ and Economic Development, the Department of Administration,
80.27and such other persons and bodies as the commissioner may feel are qualified to determine
80.28the quantity and nature of the goods, wares, merchandise and services to be made or
80.29provided, and the types of processes to be used in their manufacture, processing, repair,
80.30and production consistent with the greatest opportunity for the reform and educational
80.31training of the inmates, and with the best interests of the state, business, industry and labor.
80.32    The commissioner of corrections shall, at all times in the conduct of any industrial
80.33or commercial activity authorized by this section, utilize inmate labor to the greatest
80.34extent feasible, provided, however, that the commissioner may employ all administrative,
80.35supervisory and other skilled workers necessary to the proper instruction of the inmates
81.1and the profitable and efficient operation of the industrial and commercial activities
81.2authorized by this section.
81.3    Additionally, the commissioner of corrections may authorize the director of any
81.4correctional facility under the commissioner's control to accept work projects from outside
81.5sources for processing, fabrication or repair, provided that preference shall be given to the
81.6performance of such work projects for state departments and agencies.

81.7    Sec. 31. Minnesota Statutes 2008, section 248.061, subdivision 3, is amended to read:
81.8    Subd. 3. Eligible individual. "Eligible individual" means an individual who is
81.9eligible for library loan services through the Library of Congress and the ~~State Library for~~
81.10~~the Blind and Physically Handicapped~~ Minnesota Braille and Talking Book Library under
81.11Code of Federal Regulations, title 36, section 701.10, subsection (b).

81.12    Sec. 32. Minnesota Statutes 2008, section 248.07, subdivision 7, is amended to read:
81.13    Subd. 7. Blind, vending stands and machines on governmental property;
81.14liability limited. (a) Notwithstanding any other law, for the rehabilitation of blind persons
81.15the commissioner shall have exclusive authority to establish and to operate vending
81.16stands and vending machines in all buildings and properties owned or rented exclusively
81.17by the Minnesota State Colleges and Universities at a state university, a community
81.18college, a consolidated community technical college, or a technical college served by
81.19the commissioner before January 1, 1996, or by any department or agency of the state
81.20of Minnesota except the Department of Natural Resources properties operated directly
81.21by the Division of State Parks and not subject to private leasing. ~~The merchandise to be~~
81.22~~dispensed by such~~ Vending stands and machines authorized under this subdivision may
81.23~~include~~ dispense nonalcoholic beverages, food, candies, tobacco, souvenirs, notions and
81.24related items~~. Such vending stands and vending machines herein authorized shall~~ and
81.25must be operated on the same basis as other vending stands for the blind established and
81.26supervised by the commissioner under federal law. The commissioner shall waive this
81.27authority to displace any present private individual concessionaire in any state-owned or
81.28rented building or property who is operating under a contract with a specific renewal or
81.29termination date, until the renewal or termination date. With the consent of the governing
81.30body of a governmental subdivision of the state, the commissioner may establish and
81.31supervise vending stands and vending machines for the blind in any building or property
81.32exclusively owned or rented by the governmental subdivision.
81.33(b) The Department of Employment and Economic Development is not liable
81.34under chapter 176 for any injury sustained by a blind vendor's employee or agent. The
81.35Department of Employment and Economic Development, its officers, and its agents are
82.1not liable for the acts or omissions of a blind vendor or of a blind vendor's employee or
82.2agent that may result in the blind vendor's liability to third parties. The Department of
82.3Employment and Economic Development, its officers, and its agents are not liable for
82.4negligence based on any theory of liability for claims arising from the relationship created
82.5under this subdivision with the blind vendor.

82.6    Sec. 33. Minnesota Statutes 2008, section 248.07, subdivision 8, is amended to read:
82.7    Subd. 8. Use of revolving fund, licenses for operation of vending ~~machines~~
82.8stands. (a) The revolving fund created by Laws 1947, chapter 535, section 5, is continued
82.9as provided in this subdivision and shall be known as the revolving fund for vocational
82.10rehabilitation of the blind. It shall be used for the purchase of equipment and supplies
82.11for establishing and operating of vending stands by blind persons. All income, receipts,
82.12earnings, and federal ~~grants~~ vending machine income due to the operation ~~thereof~~ of
82.13vending stands operated under this subdivision shall also be paid into the fund. All interest
82.14earned on money accrued in the fund must be credited to the fund by the commissioner of
82.15finance. All equipment, supplies, and expenses for setting up these stands shall be paid
82.16for from the fund.
82.17(b) ~~Authority is hereby given to~~ The commissioner is authorized to use the money
82.18available in the revolving fund that originated as operational charges to individuals
82.19licensed under this subdivision for the establishment, operation, and supervision of
82.20vending stands by blind persons for the following purposes:
82.21(1) purchase, upkeep and replacement of equipment;
82.22(2) expenses incidental to the setting up of new stands and improvement of old
82.23stands;
82.24(3) reimbursement under section 15.059 to individual blind vending operators
82.25for reasonable expenses incurred in attending supervisory meetings as called by the
82.26commissioner and other expenditures for management services consistent with federal
82.27law; and
82.28(4) purchase of fringe benefits for blind vending operators and their employees such
82.29as group health insurance, retirement program, vacation or sick leave assistance provided
82.30that the purchase of any fringe benefit is approved by a majority vote of blind vending
82.31operators licensed pursuant to this subdivision after the commissioner provides to each
82.32blind vending operator information on all matters relevant to the fringe benefits. "Majority
82.33vote" means a majority of blind vending operators voting. Fringe benefits shall be paid
82.34only from assessments of operators for specific benefits, gifts to the fund for fringe benefit
82.35purposes, and vending income which is not assignable to an individual stand.
83.1(c) Money originally deposited as merchandise and supplies repayments by
83.2individuals licensed under this subdivision may be expended for initial and replacement
83.3stocks of supplies and merchandise. Money originally deposited from vending income on
83.4federal property must be spent consistent with federal law.
83.5(d) All other deposits may be used for the purchase of general liability insurance or
83.6any other expense related to the operation and supervision of vending stands.
83.7(e) The commissioner shall issue each license for the operation of a vending stand
83.8or vending machine for an indefinite period but may terminate any license in the manner
83.9provided. In granting licenses for new or vacated stands preference on the basis of
83.10seniority of experience in operating stands under the control of the commissioner shall
83.11be given to capable operators who are deemed competent to handle the enterprise under
83.12consideration. Application of this preference shall not prohibit the commissioner from
83.13selecting an operator from the community in which the stand is located.

83.14    Sec. 34. Minnesota Statutes 2008, section 256J.626, subdivision 4, is amended to read:
83.15    Subd. 4. County and tribal biennial service agreements. (a) Effective January 1,
83.162004, and each two-year period thereafter, each county and tribe must have in place an
83.17approved biennial service agreement related to the services and programs in this chapter.
83.18In counties with a city of the first class with a population over 300,000, the county must
83.19consider a service agreement that includes a jointly developed plan for the delivery of
83.20employment services with the city. Counties may collaborate to develop multicounty,
83.21multitribal, or regional service agreements.
83.22    (b) The service agreements will be completed in a form prescribed by the
83.23commissioner. The agreement must include:
83.24    (1) a statement of the needs of the service population and strengths and resources
83.25in the community;
83.26    (2) numerical goals for participant outcomes measures to be accomplished during
83.27the biennial period. The commissioner may identify outcomes from section 256J.751,
83.28subdivision 2 , as core outcomes for all counties and tribes;
83.29    (3) strategies the county or tribe will pursue to achieve the outcome targets.
83.30Strategies must include specification of how funds under this section will be used and may
83.31include community partnerships that will be established or strengthened;
83.32    (4) strategies the county or tribe will pursue under family stabilization services; and
83.33    (5) other items prescribed by the commissioner in consultation with counties and
83.34tribes.
84.1    (c) The commissioner shall provide each county and tribe with information needed
84.2to complete an agreement, including: (1) information on MFIP cases in the county or
84.3tribe; (2) comparisons with the rest of the state; (3) baseline performance on outcome
84.4measures; and (4) promising program practices.
84.5    (d) The service agreement must be submitted to the commissioner by October 15,
84.62003, and October 15 of each second year thereafter. The county or tribe must allow
84.7a period of not less than 30 days prior to the submission of the agreement to solicit
84.8comments from the public on the contents of the agreement.
84.9    (e) The commissioner must, within 60 days of receiving each county or tribal service
84.10agreement, inform the county or tribe if the service agreement is approved. If the service
84.11agreement is not approved, the commissioner must inform the county or tribe of any
84.12revisions needed prior to approval.
84.13    ~~(f) The service agreement in this subdivision supersedes the plan requirements~~
84.14~~of section~~ ~~116L.88~~.

84.15    Sec. 35. Minnesota Statutes 2008, section 256J.66, subdivision 1, is amended to read:
84.16    Subdivision 1. Establishing the on-the-job training program. (a) County agencies
84.17may develop on-the-job training programs for MFIP caregivers who are participating in
84.18employment and training services. A county agency that chooses to provide on-the-job
84.19training may make payments to employers for on-the-job training costs that, during the
84.20period of the training, must not exceed 50 percent of the wages paid by the employer to
84.21the participant. The payments are deemed to be in compensation for the extraordinary
84.22costs associated with training participants under this section and in compensation for the
84.23costs associated with the lower productivity of the participants during training.
84.24(b) Provision of an on-the-job training program under the ~~Job Training Partnership~~
84.25~~Act~~ Workforce Investment Act of 1998, Public Law 105-220, in and of itself, does not
84.26qualify as an on-the-job training program under this section.
84.27(c) Employers must compensate participants in on-the-job training ~~shall be~~
84.28~~compensated by the employer~~ at the same rates, including periodic increases, as similarly
84.29situated employees or trainees and in accordance with applicable law, but in no event less
84.30than the federal or applicable state minimum wage, whichever is higher.

84.31    Sec. 36. Minnesota Statutes 2008, section 268A.06, subdivision 1, is amended to read:
84.32    Subdivision 1. Application. Any city, town, county, nonprofit corporation,
84.33regional treatment center, or any combination thereof, may apply to the commissioner for
84.34assistance in establishing or operating a community rehabilitation facility. Application for
84.35assistance ~~shall~~ must be on forms prescribed by the commissioner. ~~Each applicant shall~~
85.1~~annually submit to the commissioner its plan and budget for the next fiscal year. No~~ An
85.2applicant ~~shall be~~ is not eligible for a grant ~~hereunder~~ under this section unless its ~~plan~~
85.3~~and budget~~ audited financial statements of the prior fiscal year have been approved by
85.4the commissioner.

85.5    Sec. 37. Minnesota Statutes 2008, section 469.169, subdivision 3, is amended to read:
85.6    Subd. 3. Evaluation of applications. (a) The commissioner shall review and
85.7evaluate the applications submitted pursuant to subdivision 2 and shall determine whether
85.8each area is eligible for designation as an enterprise zone. In determining whether an
85.9area is eligible under section 469.168, subdivision 4, paragraph (a), if unemployment,
85.10employment, income, or other necessary data are not available for the area from the
85.11federal departments of labor or commerce or the state demographer, the commissioner
85.12may rely upon other data submitted by the municipality if the commissioner determines it
85.13is statistically reliable or accurate. The commissioner, together with the commissioner
85.14of revenue, shall prepare an estimate of the amount of state tax revenue which will be
85.15foregone for each application if the area is designated as a zone.
85.16(b) By October 1 of each year, the commissioner shall submit to the Legislative
85.17Advisory Commission a list of the areas eligible for designation as enterprise zones,
85.18along with recommendations for designation and supporting documentation. In making
85.19recommendations for designation, the commissioner shall consider and evaluate the
85.20applications pursuant to the following criteria:
85.21(1) the pervasiveness of poverty, unemployment, and general distress in the area;
85.22(2) the extent of chronic abandonment, deterioration, or reduction in value of
85.23commercial, industrial, or residential structures in the area and the extent of property
85.24tax arrearages in the area;
85.25(3) the prospects for new investment and economic development in the area with
85.26the tax reductions proposed in the application relative to the state and local tax revenue
85.27which would be foregone;
85.28(4) the competing needs of other areas of the state;
85.29(5) the municipality's proposed use of other state and federal development funds or
85.30programs to increase the probability of new investment and development occurring;
85.31(6) the extent to which the projected development in the zone will provide
85.32employment to residents of the economic hardship area, and particularly individuals who
85.33are unemployed or who are economically disadvantaged as defined in the federal ~~Job~~
85.34~~Training Partnership Act of 1982, Volume 96, Statutes at Large, page 1322~~ Workforce
85.35Investment Act of 1998, Public Law 105-220;
86.1(7) the funds available pursuant to subdivision 7; and
86.2(8) other relevant factors that the commissioner specifies in the commissioner's
86.3recommendations.
86.4(c) The commissioner shall submit a separate list of the areas entitled to designation
86.5as federally designated zones and border city zones along with recommendations for the
86.6amount of funds to be allocated to each area.

86.7    Sec. 38. REVISOR'S INSTRUCTION.
86.8The revisor of statutes shall renumber Minnesota Statutes, section 116J.58,
86.9subdivision 2, as Minnesota Statutes, section 116J.035, subdivision 1a, and shall revise
86.10statutory cross-references consistent with that renumbering.

86.11    Sec. 39. REPEALER.
86.12Minnesota Statutes 2008, sections 116J.402; 116J.413; 116J.431, subdivision 5;
86.13116J.58, subdivision 1; 116J.59; 116J.61; 116J.656; 116L.16; 116L.88; and 116U.65, are
86.14repealed.
86.15EFFECTIVE DATE.This section is effective the day following final enactment.

86.16ARTICLE 5

86.17UNEMPLOYMENT INSURANCE POLICY

86.18    Section 1. Minnesota Statutes 2008, section 268.052, subdivision 2, is amended to read:
86.19    Subd. 2. Election by state or political subdivision to be a taxpaying employer.
86.20    (a) The state or political subdivision may elect to be a taxpaying employer for any
86.21calendar year if a notice of election is filed within 30 calendar days following January 1 of
86.22that calendar year. Upon election, the state or political subdivision must be assigned the
86.23new employer tax rate under section 268.051, subdivision 5, for the calendar year of the
86.24election and unless or until it qualifies for an experience rating under section 268.051,
86.25subdivision 3 .
86.26    (b) An election is for a minimum period of two calendar years following the effective
86.27date of the election and continue unless a notice terminating the election is filed not later
86.28than 30 calendar days before the beginning of the calendar year. The termination is
86.29effective at the beginning of the next calendar year. ~~Upon election, the commissioner shall~~
86.30~~establish a reimbursable account for the state or political subdivision. A termination of~~
86.31~~election is allowed only if the state or political subdivision has, since the beginning of the~~
86.32~~experience rating period under section~~ ~~268.051, subdivision 3, paid taxes equal to or more~~
86.33~~than 125 percent of the unemployment benefits used in computing the experience rating. In~~
86.34~~addition, any unemployment benefits paid after the experience rating period are transferred~~
87.1~~to the new reimbursable account of the state or political subdivision. If the amount of taxes~~
87.2~~paid since the beginning of the experience rating period exceeds 125 percent of the amount~~
87.3~~of unemployment benefits paid during the experience rating period, that amount in excess~~
87.4~~is applied against any unemployment benefits paid after the experience rating period.~~
87.5    (c) The method of payments to the trust fund under subdivisions 3 and 4 applies to
87.6all taxes paid by or due from the state or political subdivision that elects to be taxpaying
87.7employers under this subdivision.
87.8    (d) A notice of election or a notice terminating election must be filed by electronic
87.9transmission in a format prescribed by the commissioner.

87.10    Sec. 2. Minnesota Statutes 2008, section 268.053, subdivision 1, is amended to read:
87.11    Subdivision 1. Election. (a) Any nonprofit organization that has employees in
87.12covered employment must pay taxes on a quarterly basis in accordance with section
87.13268.051 unless it elects to make reimbursements to the trust fund the amount of
87.14unemployment benefits charged to its reimbursable account under section 268.047.
87.15    The organization may elect to make reimbursements for a period of not less than
87.16two calendar years beginning with the date that the organization was determined to be an
87.17employer with covered employment by filing a notice of election not later than 30 calendar
87.18days after the date of the determination.
87.19    (b) Any nonprofit organization that makes an election will continue to be liable for
87.20reimbursements until it files a notice terminating its election not later than 30 calendar
87.21days before the beginning of the calendar year the termination is to be effective.
87.22    (c) A nonprofit organization that has been making reimbursements that files a notice
87.23of termination of election must be assigned the new employer tax rate under section
87.24268.051, subdivision 5 , for the calendar year of the termination of election and unless or
87.25until it qualifies for an experience rating under section 268.051, subdivision 3.
87.26    (d) Any nonprofit organization that has been paying taxes may elect to make
87.27reimbursements by filing no less than 30 calendar days before January 1 of any calendar
87.28year a notice of election. ~~Upon election, the commissioner shall establish a reimbursable~~
87.29~~account for the nonprofit organization. An election is allowed only if the nonprofit~~
87.30~~organization has, since the beginning of the experience rating period under section~~
87.31~~268.051, subdivision 3, paid taxes equal to or more than 125 percent of the unemployment~~
87.32~~benefits used in computing the experience rating. In addition, any unemployment benefits~~
87.33~~paid after the experience rating period are transferred to the new reimbursable account~~
87.34~~of the nonprofit organization. If the amount of taxes paid since the beginning of the~~
87.35~~experience rating period exceeds 125 percent of the amount of unemployment benefits~~
88.1~~paid during the experience rating period, that amount in excess is applied against any~~
88.2~~unemployment benefits paid after the experience rating period.~~ The election is not
88.3terminable by the organization for that and the next calendar year.
88.4    (e) The commissioner may for good cause extend the period that a notice of election,
88.5or a notice of termination, must be filed and may permit an election to be retroactive.
88.6    (f) A notice of election or notice terminating election must be filed by electronic
88.7transmission in a format prescribed by the commissioner.

88.8    Sec. 3. Minnesota Statutes 2008, section 268.066, is amended to read:
88.9268.066 CANCELLATION OF AMOUNTS DUE FROM AN EMPLOYER.
88.10    (a) The commissioner ~~shall~~ must cancel as uncollectible any amounts due from
88.11an employer under this chapter or section 116L.20, that remain unpaid six years after
88.12the amounts have been first determined due, except where the delinquent amounts are
88.13secured by a notice of lien, a judgment, are in the process of garnishment, or are under a
88.14payment plan.
88.15    (b) The commissioner may cancel at any time as uncollectible any amount due, or
88.16any portion of an amount due, from an employer under this chapter or section 116L.20,
88.17that (1) are uncollectible due to death or bankruptcy, or (2) the Collection Division of the
88.18Department of Revenue under section 16D.04 was unable to collect~~, or (3)~~.
88.19(c) The commissioner may cancel at any time any interest, penalties, or fees due
88.20from an employer, or any portions due, if the commissioner determines that it is not in
88.21the public interest to pursue collection of the amount due. This paragraph does not apply
88.22to unemployment insurance taxes or reimbursements due.

88.23    Sec. 4. Minnesota Statutes 2008, section 268.067, is amended to read:
88.24268.067 COMPROMISE.
88.25    (a) The commissioner may compromise in whole or in part any action, determination,
88.26or decision that affects only an employer and not an applicant~~, and that has occurred~~
88.27~~during the prior 24 months~~. This paragraph ~~may apply~~ applies if it is determined by a court
88.28of law, or a confession of judgment, that an applicant, while employed, wrongfully took
88.29from the employer $500 or more in money or property.
88.30    (b) The commissioner may at any time compromise any ~~amount~~ unemployment
88.31insurance tax or reimbursement due from an employer under this chapter or section
88.32116L.20 .
88.33    (c) ~~Any compromise involving an amount over $2,500 must be authorized by an~~
88.34~~attorney licensed to practice law in Minnesota who is an employee of the department~~
88.35~~designated by the commissioner for that purpose.~~
89.1    ~~(d)~~ Any compromise must be in the best interest of the state of Minnesota.

89.2    Sec. 5. Minnesota Statutes 2008, section 268.069, subdivision 2, is amended to read:
89.3    Subd. 2. Unemployment benefits paid from state funds. Unemployment benefits
89.4are paid from state funds and are not considered paid from any special insurance plan,
89.5nor as paid by an employer. An application for unemployment benefits is not considered
89.6a claim against an employer but is considered a request for unemployment benefits
89.7from the trust fund. The commissioner has the responsibility for the proper payment of
89.8unemployment benefits regardless of the level of interest or participation by an applicant or
89.9an employer in any determination or appeal. An applicant's entitlement to unemployment
89.10benefits must be determined based upon that information available ~~without regard to any~~
89.11~~burden of proof,~~ and any agreement between an applicant and an employer is not binding
89.12on the commissioner in determining an applicant's entitlement. ~~There is no presumption of~~
89.13~~entitlement or nonentitlement to unemployment benefits.~~

89.14    Sec. 6. Minnesota Statutes 2008, section 268.07, subdivision 3b, is amended to read:
89.15    Subd. 3b. Limitations on applications and benefit accounts. (a) An application for
89.16unemployment benefits is effective the Sunday of the calendar week that the application
89.17was filed. ~~Upon specific request of an applicant,~~ An application for unemployment benefits
89.18may be backdated one calendar week before the Sunday of the week the application was
89.19actually filed if the applicant requests the backdating at the time the application is filed.
89.20An application may be backdated only if the applicant ~~was unemployed throughout~~ had
89.21no employment during the period of the backdating. If an individual attempted to file an
89.22application for unemployment benefits, but was prevented from filing an application by
89.23the department, the application is effective the Sunday of the calendar week the individual
89.24first attempted to file an application.
89.25    (b) A benefit account established under subdivision 2 is effective the date the
89.26application for unemployment benefits was effective.
89.27    (c) A benefit account, once established, may later be withdrawn only if:
89.28    (1) the applicant has not been paid any unemployment benefits on that benefit
89.29account; and
89.30(2) a new application for unemployment benefits is filed and a new benefit account is
89.31established at the time of the withdrawal~~; and~~.
89.32    ~~(2) the applicant has not served the nonpayable waiting week under section~~ ~~268.085,~~
89.33~~subdivision 1~~ ~~, clause (5).~~
89.34    A determination or amended determination of eligibility or ineligibility issued under
89.35section 268.101, that was ~~issued~~ sent before the withdrawal of the benefit account, remains
90.1in effect and is not voided by the withdrawal of the benefit account. A determination of
90.2ineligibility requiring subsequent earnings to satisfy the period of ineligibility under
90.3section 268.095, subdivision 10, applies to the weekly unemployment benefit amount on
90.4the new benefit account.
90.5    (d) An application for unemployment benefits is not allowed before the Sunday
90.6following the expiration of the benefit year on a prior benefit account. Except as allowed
90.7under paragraph ~~(b)~~ (c), an applicant may establish only one benefit account each 52
90.8calendar weeks.

90.9    Sec. 7. Minnesota Statutes 2008, section 268.085, subdivision 3, is amended to read:
90.10    Subd. 3. Payments that delay unemployment benefits. (a) An applicant is not
90.11eligible to receive unemployment benefits for any week with respect to which the applicant
90.12is receiving, has received, or has filed for payment, equal to or in excess of the applicant's
90.13weekly unemployment benefit amount, in the form of:
90.14    (1) vacation pay paid upon temporary, indefinite, or seasonal separation. This clause
90.15does not apply to (i) vacation pay paid upon a permanent separation from employment, or
90.16(ii) vacation pay paid from a vacation fund administered by a union or a third party not
90.17under the control of the employer;
90.18    (2) severance pay, bonus pay, sick pay, and any other payments, except earnings
90.19under subdivision 5, and back pay under subdivision 6, paid by an employer because of,
90.20upon, or after separation from employment, but only if the payment is considered wages at
90.21the time of payment under section 268.035, subdivision 29; or
90.22    (3) pension, retirement, or annuity payments from any plan contributed to by a base
90.23period employer including the United States government, except Social Security benefits
90.24that are provided for in subdivision 4. The base period employer is considered to have
90.25contributed to the plan if the contribution is excluded from the definition of wages under
90.26section 268.035, subdivision 29, clause (1).
90.27    If the pension, retirement, or annuity payment is paid in a lump sum, an applicant is
90.28not considered to have received ~~the lump-sum~~ a payment if (i) the applicant immediately
90.29deposits that payment in a qualified pension plan or account, or (ii) that payment is an
90.30early distribution for which the applicant paid an early distribution penalty under the
90.31Internal Revenue Code, United States Code, title 26, section 72(t)(1).
90.32    (b) This subdivision applies to all the weeks of payment. Payments under paragraph
90.33(a), ~~clauses (1) and (2)~~ clause (1), are applied to the period immediately following the last
90.34day of employment. The number of weeks of payment is determined as follows:
91.1    (1) if the payments are made periodically, the total of the payments to be received is
91.2divided by the applicant's last level of regular weekly pay from the employer; or
91.3    (2) if the payment is made in a lump sum, that sum is divided by the applicant's last
91.4level of regular weekly pay from the employer.
91.5    (c) If the payment is less than the applicant's weekly unemployment benefit amount,
91.6unemployment benefits are reduced by the amount of the payment. ~~If the computation~~
91.7~~of reduced unemployment benefits is not a whole dollar, it is rounded down to the next~~
91.8~~lower whole dollar.~~

91.9    Sec. 8. Minnesota Statutes 2008, section 268.085, subdivision 6, is amended to read:
91.10    Subd. 6. Receipt of back pay. (a) Back pay received by an applicant within 24
91.11months of the establishment of the benefit account with respect to any week occurring
91.12~~in the 104 weeks before the payment of the back pay~~ during the benefit year must be
91.13deducted from unemployment benefits paid for that week.
91.14    If the back pay is not paid with respect to a specific period, the back pay must be
91.15applied to the period immediately following the last day of employment.
91.16    (b) If the back pay is reduced by the amount of unemployment benefits that have
91.17been paid, the amount of back pay withheld must be:
91.18    (1) paid by the employer to the trust fund within 30 calendar days and subject to the
91.19same collection procedures that apply to past due taxes;
91.20    (2) applied to unemployment benefit overpayments resulting from the payment of
91.21the back pay; and
91.22    (3) credited to the maximum amount of unemployment benefits available to the
91.23applicant in a benefit year that includes the weeks for which back pay was deducted.
91.24    (c) Unemployment benefits paid the applicant must be removed from the
91.25computation of the tax rate for taxpaying employers and removed from the reimbursable
91.26account for nonprofit and government employers that have elected to be liable for
91.27reimbursements in the calendar quarter the trust fund receives payment.
91.28    (d) Payments to the trust fund under this subdivision are considered as made by
91.29the applicant.

91.30    Sec. 9. Minnesota Statutes 2008, section 268.085, subdivision 15, is amended to read:
91.31    Subd. 15. Available for suitable employment defined. (a) "Available for suitable
91.32employment" means an applicant is ready and willing to accept suitable employment in
91.33~~the labor market area~~. The attachment to the work force must be genuine. An applicant
91.34may restrict availability to suitable employment, but there must be no other restrictions,
92.1either self-imposed or created by circumstances, temporary or permanent, that prevent
92.2accepting suitable employment.
92.3(b) To be considered "available for suitable employment," a student must be willing
92.4to quit school to accept suitable employment.
92.5(c) An applicant who is absent from the labor market area for personal reasons, other
92.6than to search for work, is not "available for suitable employment."
92.7(d) An applicant who has restrictions on the hours of the day or days of the week
92.8that the applicant can or will work, that are not normal for the applicant's usual occupation
92.9or other suitable employment, is not "available for suitable employment." An applicant
92.10must be available for daytime employment, if suitable employment is performed during
92.11the daytime, even though the applicant previously worked the night shift.
92.12~~(e) An applicant must have transportation throughout the labor market area to be~~
92.13~~considered "available for suitable employment."~~

92.14    Sec. 10. Minnesota Statutes 2008, section 268.095, subdivision 1, is amended to read:
92.15    Subdivision 1. Quit. An applicant who quit employment is ineligible for all
92.16unemployment benefits according to subdivision 10 except when :
92.17    (1) the applicant quit the employment because of a good reason caused by the
92.18employer as defined in subdivision 3;
92.19    (2) the applicant quit the employment to accept other covered employment that
92.20provided substantially better terms and conditions of employment, but the applicant did
92.21not work long enough at the second employment to have sufficient subsequent earnings to
92.22satisfy the period of ineligibility that would otherwise be imposed under subdivision 10
92.23for quitting the first employment;
92.24    (3) the applicant quit the employment within 30 calendar days of beginning the
92.25employment because the employment was unsuitable for the applicant;
92.26    (4) the employment was unsuitable for the applicant and the applicant quit to enter
92.27reemployment assistance training;
92.28    (5) the employment was part time and the applicant also had full-time employment
92.29in the base period, from which full-time employment the applicant separated because of
92.30reasons for which the applicant was held not to be ineligible, and the wage credits from
92.31the full-time employment are sufficient to meet the minimum requirements to establish a
92.32benefit account under section 268.07;
92.33    (6) the applicant quit because the employer notified the applicant that the applicant
92.34was going to be laid off because of lack of work within 30 calendar days. An applicant
92.35who quit employment within 30 calendar days of a notified date of layoff because of lack
93.1of work is ineligible for unemployment benefits through the end of the week that includes
93.2the scheduled date of layoff;
93.3    (7) the applicant quit the employment because the applicant's serious illness or
93.4injury made it medically necessary that the applicant quit, provided that the applicant
93.5inform the employer of the serious illness or injury and request accommodation and no
93.6reasonable accommodation is made available.
93.7    If the applicant's serious illness is chemical dependency, this exception does not
93.8apply if the applicant was previously diagnosed as chemically dependent or had treatment
93.9for chemical dependency, and since that diagnosis or treatment has failed to make
93.10consistent efforts to control the chemical dependency.
93.11    This exception raises an issue of the applicant's being ~~able to work~~ available for
93.12suitable employment under section 268.085, subdivision 1, that the commissioner ~~shall~~
93.13must determine;
93.14    (8) the applicant's loss of child care for the applicant's minor child caused the
93.15applicant to quit the employment, provided the applicant made reasonable effort to obtain
93.16other child care and requested time off or other accommodation from the employer and no
93.17reasonable accommodation is available.
93.18    This exception raises an issue of the applicant's ~~availability~~ being available for
93.19suitable employment under section 268.085, subdivision 1, that the commissioner ~~shall~~
93.20must determine; or
93.21    (9) domestic abuse of the applicant or the applicant's minor child, necessitated the
93.22applicant's quitting the employment. Domestic abuse must be shown by one or more of
93.23the following:
93.24    (i) a district court order for protection or other documentation of equitable relief
93.25issued by a court;
93.26    (ii) a police record documenting the domestic abuse;
93.27    (iii) documentation that the perpetrator of the domestic abuse has been convicted
93.28of the offense of domestic abuse;
93.29    (iv) medical documentation of domestic abuse; or
93.30    (v) written statement that the applicant or the applicant's minor child is a victim
93.31of domestic abuse, provided by a social worker, member of the clergy, shelter worker,
93.32attorney at law, or other professional who has assisted the applicant in dealing with the
93.33domestic abuse.
93.34    Domestic abuse for purposes of this clause is defined under section 518B.01.

93.35    Sec. 11. Minnesota Statutes 2008, section 268.095, subdivision 2, is amended to read:
94.1    Subd. 2. Quit defined. (a) A quit from employment occurs when the decision to end
94.2the employment was, at the time the employment ended, the employee's.
94.3    (b) An employee who has been notified that the employee will be discharged in the
94.4future, who chooses to end the employment while employment in any capacity is still
94.5available, is considered to have quit the employment.
94.6    (c) An employee who seeks to withdraw a previously submitted notice of quitting is
94.7considered to have quit the employment if the employer does not agree that the notice
94.8may be withdrawn.
94.9    (d) An applicant who, within five calendar days after completion of a suitable
94.10temporary job assignment from a staffing service employer, (1) fails without good cause
94.11to affirmatively request an additional job assignment, or (2) refuses without good cause
94.12an additional suitable job assignment offered, or (3) accepts employment with the client
94.13of the staffing service, is considered to have quit employment with the staffing service.
94.14Accepting employment with the client of the staffing service meets the requirements of the
94.15exception to ineligibility under subdivision 1, clause (2).
94.16    This paragraph applies only if, at the time of beginning of employment with the
94.17staffing service employer, the applicant signed and was provided a copy of a separate
94.18document written in clear and concise language that informed the applicant of this
94.19paragraph and that unemployment benefits may be affected.
94.20    For purposes of this paragraph, "good cause" is a reason that is significant and
94.21would compel an average, reasonable worker, who would otherwise want an additional
94.22temporary job assignment with the staffing service employer, (1) to fail to contact the
94.23staffing service employer, or (2) to refuse an offered assignment.
94.24    For purposes of this paragraph, a "staffing service employer" is an employer whose
94.25business involves employing individuals directly for the purpose of furnishing temporary
94.26job assignment workers to clients of the staffing service.

94.27    Sec. 12. Minnesota Statutes 2008, section 268.103, is amended by adding a subdivision
94.28to read:
94.29    Subd. 2a. Employer-agent appeals filed online. (a) If an agent files an appeal on
94.30behalf of an employer, the appeal must be filed online. The appeal must be filed through
94.31the electronic address provided on the determination being appealed. Use of another
94.32method of filing does not constitute an appeal. This paragraph does not apply to an
94.33employee filing an appeal on behalf of an employer.
94.34(b) All information requested when the appeal is filed must be supplied or the
94.35communication does not constitute an appeal.

95.1    Sec. 13. Minnesota Statutes 2008, section 268.18, subdivision 4a, is amended to read:
95.2    Subd. 4a. Court fees; collection fees. (a) If the commissioner is required to pay any
95.3court fees in an attempt to enforce collection of overpaid unemployment benefits, penalties,
95.4or interest, the commissioner may add the amount of the court fees to the total amount due.
95.5(b) If an applicant who has been determined overpaid unemployment benefits
95.6because of fraud seeks to have any portion of the debt discharged under the federal
95.7bankruptcy code, and the commissioner files an objection in bankruptcy court to the
95.8discharge, the commissioner may add the commissioner's cost of any court fees to the debt
95.9if the bankruptcy court does not discharge the debt.
95.10(c) If the Internal Revenue Service assesses the commissioner a fee for offsetting
95.11from a federal tax refund the amount of any fraud overpayment, including penalties and
95.12interest, the amount of the fee may be added to the total amount due. The offset amount
95.13must be put in the trust fund and that amount credited to the total amount due from the
95.14applicant.

95.15    Sec. 14. Minnesota Statutes 2008, section 268.186, is amended to read:
95.16268.186 RECORDS; AUDITS.
95.17    (a) Each employer must keep true and accurate records for the periods of time and
95.18containing the information the commissioner may require by rule. For the purpose of
95.19administering this chapter, the commissioner has the power to audit, examine, or cause to
95.20be supplied or copied, any books, correspondence, papers, records, or memoranda that
95.21are relevant, whether the books, correspondence, papers, records, or memoranda are the
95.22property of or in the possession of the employer or any other person at any reasonable
95.23time and as often as may be necessary.
95.24    (b) Any employer that refuses to allow an audit of its records by the department, or
95.25that fails to make all necessary records available for audit in Minnesota upon request of
95.26the commissioner, may be assessed an administrative penalty of $500. An employer that
95.27fails to provide a weekly breakdown of money earned by an applicant upon request of the
95.28commissioner, information necessary for the detection of applicant fraud under section
95.29268.18, subdivision 2, may be assessed an administrative penalty of $100. Any notice
95.30requesting a weekly breakdown must clearly state that a $100 penalty may be assessed for
95.31failure to provide the information. The penalty collected is credited to the ~~administration~~
95.32~~account to be used by the commissioner to ensure integrity in the administration of the~~
95.33~~unemployment insurance program~~ trust fund.
95.34    (c) The commissioner may make summaries, compilations, photographs,
95.35duplications, or reproductions of any records, or reports that the commissioner considers
96.1advisable for the preservation of the information contained therein. Any summaries,
96.2compilations, photographs, duplications, or reproductions is admissible in any proceeding
96.3under this chapter. The commissioner may duplicate records, reports, summaries,
96.4compilations, instructions, determinations, or any other written or recorded matter
96.5pertaining to the administration of this chapter.
96.6    (d) Regardless of any law to the contrary, the commissioner may provide for the
96.7destruction of any records, reports, or reproductions, or other papers that are no longer
96.8necessary for the administration of this chapter, including any required audit. In addition,
96.9the commissioner may provide for the destruction or disposition of any record, report,
96.10or other paper from which the information has been electronically captured and stored,
96.11or that has been photographed, duplicated, or reproduced.

96.12    Sec. 15. ENTREPRENEURSHIP FOR DISLOCATED WORKERS.
96.13    Subdivision 1. Authorization. Minnesota has been awarded a federal grant by the
96.14United States Department of Labor under the Project GATE (Growing America Through
96.15Entrepreneurship) program to assist certain dislocated workers in starting a business.
96.16Providing unemployment benefits while the dislocated worker is receiving services such
96.17as entrepreneurial training, business counseling, and technical assistance will assist in the
96.18success of this pilot project. In order to provide unemployment benefits, the commissioner
96.19of employment and economic development is authorized to waive the availability for
96.20suitable employment requirements of Minnesota Statutes, section 268.085, subdivision 1,
96.21as well as the earnings deductibility provisions of Minnesota Statutes, section 268.085,
96.22subdivision 5, for individuals enrolled in this pilot project.
96.23    Subd. 2. Limitations. A maximum of 500 applicants for unemployment benefits are
96.24authorized to receive a waiver.
96.25    Subd. 3. Expiration date. The authorization under subdivision 1 expires June
96.2630, 2012.

96.27    Sec. 16. EFFECTIVE DATE.
96.28Sections 1 to 6, 8 to 11, 13, and 14 are effective August 2, 2009, and apply to all
96.29department determinations and unemployment law judge decisions issued on or after that
96.30date. Section 11 is effective April 1, 2010, and applies to all department determinations
96.31and unemployment law judge decisions issued on or after that date. Section 7 is effective
96.32retroactive from December 1, 2008. Section 15 is effective the day following final
96.33enactment.

97.1ARTICLE 6

97.2UNEMPLOYMENT INSURANCE TECHNICAL CHANGES

97.3    Section 1. Minnesota Statutes 2008, section 268.031, is amended to read:
97.4268.031 STANDARD OF PROOF AND PRESUMPTION OF ELIGIBILITY.
97.5    Subdivision 1. Standard of proof. All issues of fact under the Minnesota
97.6Unemployment Insurance Law are determined by a preponderance of the evidence.
97.7~~Preponderance of the evidence means evidence in substantiation of a fact that, when~~
97.8~~weighed against the evidence opposing the fact, is more convincing and has a greater~~
97.9~~probability of truth.~~
97.10    Subd. 2. Presumption of eligibility. An applicant is presumed to be eligible
97.11for unemployment benefits unless precluded by statute from receiving benefits. In
97.12determining eligibility or ineligibility for benefits, any statutory provision that would
97.13preclude an applicant from receiving benefits must be narrowly construed.

97.14    Sec. 2. [268.034] COMPUTATIONS OF MONEY ROUNDED DOWN.
97.15Computations of money required under this chapter that do not result in a whole
97.16dollar are rounded down to the next lower whole dollar, unless specifically provided
97.17otherwise by law.

97.18    Sec. 3. Minnesota Statutes 2008, section 268.035, subdivision 2, is amended to read:
97.19    Subd. 2. Agricultural employment. "Agricultural employment" means services:
97.20(1) on a farm, in the employ of any person or family farm corporation in connection
97.21with cultivating the soil, or in connection with raising or harvesting any agricultural or
97.22horticultural commodity, including the raising, shearing, feeding, caring for, training, and
97.23management of livestock, bees, poultry, fur-bearing animals, and wildlife;
97.24(2) in the employ of the owner or tenant or other operator of a farm, in connection
97.25with the operation, management, conservation, improvement, or maintenance of the farm
97.26and its tools and equipment, or in salvaging timber or clearing land of brush and other
97.27debris left by a tornado-like storm, if the major part of the employment is performed
97.28on a farm;
97.29(3) in connection with the production or harvesting of any commodity defined as
97.30an agricultural product in United States Code, title 7, section 1626 of the Agricultural
97.31Marketing Act, or in connection with cotton ginning, or in connection with the operation
97.32or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for
97.33profit, used exclusively for supplying and storing water for farming purposes;
98.1(4) in the employ of the operator of a farm in handling, planting, drying, packing,
98.2packaging, processing, freezing, grading, storing, or delivering to storage or to market
98.3or to a carrier for transportation to market, in its unmanufactured state, any agricultural
98.4or horticultural commodity; but only if the operator produced more than one-half of
98.5the commodity with respect to which the employment is performed, or in the employ
98.6of a group of operators of farms or a cooperative organization of which the operators
98.7are members, but only if the operators produced more than one-half of the commodity
98.8with respect to which the employment is performed; however, this clause ~~shall~~ is not
98.9be applicable to employment performed in connection with commercial canning or
98.10commercial freezing or in connection with any agricultural or horticultural commodity
98.11after its delivery to a terminal market for distribution for consumption; or
98.12(5) on a farm operated for profit if the employment is not in the course of the
98.13employer's trade or business.
98.14For purposes of this subdivision, the term "farm" includes stock, dairy, poultry, fruit,
98.15fur-bearing animals, and truck farms, plantations, ranches, nurseries, orchards, ranges,
98.16greenhouses, or other similar structures used primarily for the raising of agricultural or
98.17horticultural commodities.

98.18    Sec. 4. Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision
98.19to read:
98.20    Subd. 9a. Construction; independent contractor. For purposes of this chapter,
98.21section 181.723 determines whether a worker is an independent contractor or an employee
98.22when performing public or private sector commercial or residential building construction
98.23or improvement services.

98.24    Sec. 5. Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision
98.25to read:
98.26    Subd. 12c. Determination. "Determination" means a document sent to an applicant
98.27or employer by mail or electronic transmission that is an initial department ruling on a
98.28specific issue. All documents that are determinations under this chapter use that term in
98.29the title of the document and are appealable to an unemployment law judge under section
98.30268.105, subdivision 1.

98.31    Sec. 6. Minnesota Statutes 2008, section 268.035, subdivision 17, is amended to read:
98.32    Subd. 17. Filing; filed. "Filing" or "filed" means the personal delivery of ~~any~~
98.33~~document~~ an application, appeal, or other required action to the commissioner or any of
98.34the commissioner's agents, or ~~the depositing of the document~~ if done by mail, deposited
99.1in the United States mail properly addressed to the department with postage prepaid, in
99.2which case ~~the document~~ it is considered filed on the day indicated by the cancellation
99.3mark of the United States Postal Service.
99.4    If~~, where allowed,~~ an application, appeal, or other required action is made by
99.5electronic transmission, it is considered filed on the day received by the department.

99.6    Sec. 7. Minnesota Statutes 2008, section 268.035, is amended by adding a subdivision
99.7to read:
99.8    Subd. 20a. Preponderance of the evidence. "Preponderance of the evidence"
99.9means evidence in substantiation of a fact that, when weighed against the evidence
99.10opposing the fact, is more convincing and has a greater probability of truth.

99.11    Sec. 8. Minnesota Statutes 2008, section 268.042, subdivision 3, is amended to read:
99.12    Subd. 3. Election to have noncovered employment considered covered
99.13employment. (a) Any employer that has employment performed for it that is noncovered
99.14employment under section 268.035, subdivision 20, may file with the commissioner, by
99.15electronic transmission in a format prescribed by the commissioner, an election that all
99.16employees in that class of employment, in one or more distinct establishments or places
99.17of business, is considered covered employment for not less than two calendar years.
99.18The commissioner has discretion on the approval of any election. Upon the approval of
99.19the commissioner, sent by mail or electronic transmission, the employment constitutes
99.20covered employment beginning the calendar quarter after the date of approval or
99.21beginning a later calendar quarter if requested by the employer. The employment ceases to
99.22be considered covered employment as of the first day of January of any calendar year only
99.23if at least 30 calendar days before the first day of January the employer has filed with the
99.24commissioner, by electronic transmission in a format prescribed by the commissioner, a
99.25notice to that effect.
99.26    (b) The commissioner must terminate any election agreement under this subdivision
99.27upon 30 calendar days' notice sent by mail or electronic transmission, if the employer is
99.28delinquent on any taxes due or reimbursements due the trust fund.

99.29    Sec. 9. Minnesota Statutes 2008, section 268.043, is amended to read:
99.30268.043 DETERMINATIONS OF COVERAGE.
99.31    (a) The commissioner, upon the commissioner's own motion or upon application
99.32of a person, ~~shall~~ must determine if that person is an employer or whether services
99.33performed for it constitute employment and covered employment, or whether ~~the~~ any
99.34compensation ~~for services~~ constitutes wages, and notify the person of the determination.
100.1The determination is final unless the person, files an appeal within 20 calendar days
100.2after ~~sending of the determination~~ the commissioner sends the determination by mail
100.3or electronic transmission~~, files an appeal~~. Proceedings on the appeal are conducted in
100.4accordance with section 268.105.
100.5    (b) No person may be initially determined an employer, or that services performed
100.6for it were in employment or covered employment, for periods more than four years
100.7before the year in which the determination is made, unless the commissioner finds that
100.8there was fraudulent action to avoid liability under this chapter.

100.9    Sec. 10. Minnesota Statutes 2008, section 268.044, subdivision 2, is amended to read:
100.10    Subd. 2. Failure to timely file report; late fees. (a) Any employer that fails to
100.11submit the quarterly wage detail report when due must pay a late fee of $10 per employee,
100.12computed based upon the highest of:
100.13    (1) the number of employees reported on the last wage detail report submitted;
100.14    (2) the number of employees reported in the corresponding quarter of the prior
100.15calendar year; or
100.16    (3) if no wage detail report has ever been submitted, the number of employees
100.17listed at the time of employer registration.
100.18    The late fee is ~~waived~~ canceled if the wage detail report is received within 30
100.19calendar days after a demand for the report is sent to the employer by mail or electronic
100.20transmission. A late fee assessed an employer may not be ~~waived~~ canceled more than
100.21twice each 12 months. The amount of the late fee assessed may not be less than $250.
100.22    (b) If the wage detail report is not received in a manner and format prescribed by the
100.23commissioner within 30 calendar days after demand is sent under paragraph (a), the late
100.24fee assessed under paragraph (a) doubles and a renewed demand notice and notice of the
100.25increased late fee will be sent to the employer by mail or electronic transmission.
100.26    (c) Late fees due under this subdivision may be ~~compromised~~ canceled, in whole or
100.27in part, under section ~~268.067~~ 268.066 where good cause for late submission is found by
100.28the commissioner.

100.29    Sec. 11. Minnesota Statutes 2008, section 268.047, subdivision 1, is amended to read:
100.30    Subdivision 1. General rule. Unemployment benefits paid to an applicant,
100.31including extended and shared work benefits, will be used in computing the future
100.32tax rate of a taxpaying base period employer or charged to the reimbursable account
100.33of a base period nonprofit or government employer that has elected to be liable for
100.34reimbursements except as provided in subdivisions 2 and 3. The amount of unemployment
100.35benefits used in computing the future tax rate of taxpaying employers or charged to the
101.1reimbursable account of a nonprofit or government employer that has elected to be liable
101.2for reimbursements is the same percentage of the total amount of unemployment benefits
101.3paid as the percentage of wage credits from the employer is of the total amount of wage
101.4credits from all the applicant's base period employers.
101.5    ~~In making computations under this subdivision, the amount of wage credits, if not a~~
101.6~~whole dollar, must be computed to the nearest whole dollar.~~

101.7    Sec. 12. Minnesota Statutes 2008, section 268.047, subdivision 2, is amended to read:
101.8    Subd. 2. Exceptions for all employers. Unemployment benefits paid will not be
101.9used in computing the future tax rate of a taxpaying base period employer or charged to
101.10the reimbursable account of a base period nonprofit or government employer that has
101.11elected to be liable for reimbursements when:
101.12    (1) the applicant was discharged from the employment because of aggravated
101.13employment misconduct as determined under section 268.095. This exception applies
101.14only to unemployment benefits paid for periods after the applicant's discharge from
101.15employment;
101.16    (2) an applicant's discharge from that employment occurred because a law required
101.17removal of the applicant from the position the applicant held;
101.18    ~~(3) the employer is in the tourist or recreation industry and is in active operation of~~
101.19~~business less than 15 calendar weeks each year and the applicant's wage credits from the~~
101.20~~employer are less than 600 times the applicable state or federal minimum wage;~~
101.21    ~~(4)~~ (3) the employer provided regularly scheduled part-time employment to the
101.22applicant during the applicant's base period and continues to provide the applicant with
101.23regularly scheduled part-time employment during the benefit year of at least 90 percent
101.24of the part-time employment provided in the base period, and is an involved employer
101.25because of the applicant's loss of other employment. This exception terminates effective
101.26the first week that the employer fails to meet the benefit year employment requirements.
101.27This exception applies to educational institutions without consideration of the period
101.28between academic years or terms;
101.29    ~~(5)~~ (4) the employer is a fire department or firefighting corporation or operator
101.30of a life-support transportation service, and continues to provide employment for the
101.31applicant as a volunteer firefighter or a volunteer ambulance service personnel during the
101.32benefit year on the same basis that employment was provided in the base period. This
101.33exception terminates effective the first week that the employer fails to meet the benefit
101.34year employment requirements;
102.1    ~~(6)~~ (5) the applicant's unemployment from this employer was a direct result of
102.2the condemnation of property by a governmental agency, a fire, flood, or act of nature,
102.3where 25 percent or more of the employees employed at the affected location, including
102.4the applicant, became unemployed as a result. This exception does not apply where the
102.5unemployment was a direct result of the intentional act of the employer or a person acting
102.6on behalf of the employer;
102.7    ~~(7)~~ (6) the unemployment benefits were paid by another state as a result of the
102.8transferring of wage credits under a combined wage arrangement provided for in section
102.9268.131 ;
102.10    ~~(8)~~ (7) the applicant stopped working because of a labor dispute at the applicant's
102.11primary place of employment if the employer was not a party to the labor dispute;
102.12    ~~(9)~~ (8) the unemployment benefits were determined overpaid unemployment benefits
102.13under section 268.18;
102.14    ~~(10)~~ (9) the applicant was employed as a replacement worker, for a period of six
102.15months or longer, for an employee who is in the military reserve and was called for active
102.16duty during the time the applicant worked as a replacement, and the applicant was laid off
102.17because the employee returned to employment after active duty; or
102.18    ~~(11)~~ (10) the trust fund was reimbursed for the unemployment benefits by the
102.19federal government.

102.20    Sec. 13. Minnesota Statutes 2008, section 268.051, subdivision 1, is amended to read:
102.21    Subdivision 1. Payments. (a) Unemployment insurance taxes and any special
102.22assessments, fees, or surcharges accrue and become payable by each employer for each
102.23calendar year on the taxable wages that the employer paid to employees in covered
102.24employment, except for:
102.25    (1) nonprofit organizations that elect to make reimbursements as provided in section
102.26268.053 ; and
102.27    (2) the state of Minnesota and political subdivisions that make reimbursements,
102.28unless they elect to pay taxes as provided in section 268.052.
102.29    Each employer must pay taxes quarterly, at the employer's assigned tax rate under
102.30subdivision 6, on the taxable wages paid to each employee. The commissioner must
102.31compute the tax due from the wage detail report required under section 268.044 and notify
102.32the employer of the tax due. The taxes and any special assessments, fees, or surcharges
102.33must be paid to the trust fund and must be received by the department on or before the last
102.34day of the month following the end of the calendar quarter.
103.1    (b) ~~The tax amount computed, if not a whole dollar, is rounded down to the next~~
103.2~~lower whole dollar.~~
103.3    ~~(c)~~ If for any reason the wages on the wage detail report under section 268.044 are
103.4adjusted for any quarter, the commissioner must recompute the taxes due for that quarter
103.5and assess the employer for any amount due or credit the employer as appropriate.

103.6    Sec. 14. Minnesota Statutes 2008, section 268.051, subdivision 4, is amended to read:
103.7    Subd. 4. Experience rating history transfer. (a) When:
103.8    (1) a taxpaying employer acquires all of the organization, trade or business, or
103.9workforce of another taxpaying employer; and
103.10    (2) there is 25 percent or more common ownership or there is substantially common
103.11management or control between the predecessor and successor, the experience rating
103.12history of the predecessor employer is transferred to the successor employer.
103.13    (b) When:
103.14    (1) a taxpaying employer acquires a portion, but less than all, of the organization,
103.15trade or business, or workforce of another taxpaying employer; and
103.16    (2) there is 25 percent or more common ownership or there is substantially common
103.17management or control between the predecessor and successor, the successor employer
103.18acquires, as of the date of acquisition, the experience rating history attributable to the
103.19portion it acquired, and the predecessor employer retains the experience rating history
103.20attributable to the portion that it has retained. If the commissioner determines that
103.21sufficient information is not available to substantiate that a distinct severable portion
103.22was acquired and to assign the appropriate distinct severable portion of the experience
103.23rating history, the commissioner ~~shall~~ must assign the successor employer that percentage
103.24of the predecessor employer's experience rating history equal to that percentage of
103.25the employment positions it has obtained, and the predecessor employer retains that
103.26percentage of the experience rating history equal to the percentage of the employment
103.27positions it has retained.
103.28    (c) The term "common ownership" for purposes of this subdivision includes
103.29ownership by a spouse, parent, grandparent, child, grandchild, brother, sister, aunt, uncle,
103.30niece, nephew, or first cousin, by birth or by marriage.
103.31    (d) Each successor employer that is subject to paragraph (a) or (b) must notify the
103.32commissioner of the acquisition by electronic transmission, in a format prescribed by the
103.33commissioner, within 30 calendar days of the date of acquisition. Any successor employer
103.34that fails to notify the commissioner is subject to the penalties under section 268.184,
103.35subdivision 1a , if the successor's ~~experience rating~~ assigned tax rate under subdivision 2
104.1or 5 was lower than the predecessor's ~~experience rating~~ assigned tax rate at the time of
104.2the acquisition. Payments made toward the penalties are credited to the administration
104.3account to be used to ensure integrity in the unemployment insurance program.
104.4    (e) If the successor employer under paragraphs (a) and (b) had an experience rating
104.5at the time of the acquisition, the transferred experience rating history of the predecessor
104.6is combined with the successor's experience rating history for purposes of recomputing
104.7a tax rate.
104.8    (f) If there has been a transfer of an experience rating history under paragraph (a) or
104.9(b), employment with a predecessor employer is not considered to have been terminated if
104.10similar employment is offered by the successor employer and accepted by the employee.
104.11    (g) The commissioner, upon notification of an employer, or upon the commissioner's
104.12own motion if the employer fails to provide the required notification, ~~shall~~ must determine
104.13if an employer is a successor within the meaning of this subdivision. The commissioner
104.14~~shall~~ must, after determining the issue of succession or nonsuccession, recompute the tax
104.15rate under subdivision 6 of all employers affected. The commissioner ~~shall~~ must send the
104.16recomputed tax rate to all affected employers by mail or electronic transmission. Any
104.17affected employer may appeal the recomputed tax rate in accordance with the procedures
104.18in subdivision 6, paragraph (c).
104.19    (h) The "experience rating history" for purposes of this subdivision and subdivision
104.204a means the amount of unemployment benefits paid and the taxable wages that are being
104.21used and would be used in computing the current and any future experience rating.
104.22    For purposes of this chapter, an "acquisition" means anything that results in the
104.23obtaining by the successor employer, in any way or manner, of the organization, trade or
104.24business, or workforce of the predecessor employer.
104.25    A "distinct severable portion" in paragraph (b) means a location or unit separately
104.26identifiable within the employer's wage detail report under section 268.044.
104.27    (i) Regardless of the ownership, management, or control requirements of paragraph
104.28(a), if there is an acquisition or merger of a publicly held corporation by or with another
104.29publicly held corporation the experience rating histories of the corporations are combined
104.30as of the date of acquisition or merger for the purpose of recomputing a tax rate.

104.31    Sec. 15. Minnesota Statutes 2008, section 268.057, subdivision 4, is amended to read:
104.32    Subd. 4. Costs. (a) Any person that fails to pay any amount when due under this
104.33chapter is liable for any filing fees, recording fees, sheriff fees, costs incurred by referral
104.34to any public or private collection agency, or litigation costs, including attorney fees,
104.35incurred in the collection of the amounts due.
105.1    (b) If any tendered payment of any amount due is not honored when presented to
105.2a financial institution for payment, any costs assessed the department by the financial
105.3institution and a fee of $25 must be assessed to the person.
105.4    (c) Costs and fees collected under this subdivision are credited to the administration
105.5account ~~to be used by the commissioner to ensure integrity in the administration of the~~
105.6~~unemployment insurance program~~.

105.7    Sec. 16. Minnesota Statutes 2008, section 268.057, subdivision 5, is amended to read:
105.8    Subd. 5. Interest on amounts past due. If any amounts due from an employer
105.9under this chapter or section 116L.20, except late fees under section 268.044, are not
105.10received on the date due the unpaid balance bears interest at the rate of one and one-half
105.11percent per month or any part thereof. ~~Interest assessed, if not a whole dollar amount,~~
105.12~~is rounded down to the next lower whole dollar.~~ Interest collected is credited to the
105.13contingent account. ~~Interest may be compromised under section~~ ~~268.067~~.

105.14    Sec. 17. Minnesota Statutes 2008, section 268.0625, subdivision 1, is amended to read:
105.15    Subdivision 1. Notice of debt to licensing authority. The state of Minnesota or a
105.16political subdivision may not issue, transfer, or renew, and must revoke a license for the
105.17conduct of any profession, trade, or business, if the commissioner notifies the licensing
105.18authority that the licensee, applicant, or employer owes any amount due under this chapter
105.19or section 116L.20, of $500 or more. A licensing authority that has received ~~such~~ a notice
105.20may issue, transfer, renew, or not revoke the license only if the licensing authority has
105.21received a copy of the debt clearance certificate issued by the commissioner.

105.22    Sec. 18. Minnesota Statutes 2008, section 268.069, subdivision 1, is amended to read:
105.23    Subdivision 1. Requirements. The commissioner ~~shall~~ must pay unemployment
105.24benefits from the trust fund to an applicant who has met each of the following requirements:
105.25    (1) the applicant has filed an application for unemployment benefits and established
105.26a benefit account in accordance with section 268.07;
105.27    (2) the applicant has not been held ineligible for unemployment benefits under
105.28section 268.095 because of a quit or discharge;
105.29    (3) the applicant has met all of the ongoing eligibility requirements under ~~sections~~
105.30section 268.085 ~~and~~ ~~268.086~~;
105.31    (4) the applicant does not have an outstanding overpayment of unemployment
105.32benefits, including any penalties or interest; and
105.33    (5) the applicant has not been held ineligible for unemployment benefits under
105.34section 268.182 because of a false representation or concealment of facts.

106.1    Sec. 19. Minnesota Statutes 2008, section 268.07, subdivision 1, is amended to read:
106.2    Subdivision 1. Application for unemployment benefits; determination of benefit
106.3account. (a) An application for unemployment benefits may be filed in person, by mail,
106.4or by electronic transmission as the commissioner may require. The applicant must be
106.5unemployed at the time the application is filed and must provide all requested information
106.6in the manner required. If the applicant is not unemployed at the time of the application
106.7or fails to provide all requested information, the communication is not considered an
106.8application for unemployment benefits.
106.9    (b) The commissioner ~~shall~~ must examine each application for unemployment
106.10benefits to determine the base period and the benefit year, and based upon all
106.11the covered employment in the base period the commissioner shall determine the
106.12weekly unemployment benefit amount available, if any, and the maximum amount of
106.13unemployment benefits available, if any. The determination ~~is known as the~~, which is a
106.14document separate and distinct from a document titled a determination of eligibility or
106.15determination of ineligibility issued under section 268.101, must be titled determination of
106.16benefit account. A determination of benefit account must be sent to the applicant and all
106.17base period employers, by mail or electronic transmission.
106.18    (c) If a base period employer did not provide wage information for the applicant as
106.19provided for in section 268.044, or provided erroneous information, the commissioner
106.20may accept an applicant certification as to wage credits, based upon the applicant's records,
106.21and issue a determination of benefit account.
106.22    (d) The commissioner may, at any time within 24 months from the establishment
106.23of a benefit account, reconsider any determination of benefit account and make an
106.24amended determination if the commissioner finds that the determination was incorrect
106.25for any reason. An amended determination of benefit account must be promptly sent
106.26to the applicant and all base period employers, by mail or electronic transmission.
106.27This subdivision does not apply to documents titled determinations of eligibility or
106.28determinations of ineligibility issued under section 268.101.
106.29    (e) If an amended determination of benefit account reduces the weekly
106.30unemployment benefit amount or maximum amount of unemployment benefits available,
106.31any unemployment benefits that have been paid greater than the applicant was entitled
106.32is considered an overpayment of unemployment benefits. A determination or amended
106.33determination issued under this section that results in an overpayment of unemployment
106.34benefits must set out the amount of the overpayment and the requirement under section
106.35268.18, subdivision 1 , that the overpaid unemployment benefits must be repaid.

107.1    Sec. 20. Minnesota Statutes 2008, section 268.07, subdivision 2, is amended to read:
107.2    Subd. 2. Benefit account requirements and weekly unemployment benefit
107.3amount and maximum amount of unemployment benefits. (a) To establish a benefit
107.4account, an applicant must have:
107.5    (1) high quarter wage credits of $1,000 or more; and
107.6    (2) wage credits, in other than the high quarter, of $250 or more.
107.7    (b) If an applicant has established a benefit account, the weekly unemployment
107.8benefit amount available during the benefit year is the higher of:
107.9    (1) 50 percent of the applicant's average weekly wage during the base period, to a
107.10maximum of 66-2/3 percent of the state's average weekly wage; or
107.11    (2) 50 percent of the applicant's average weekly wage during the high quarter, to a
107.12maximum of 43 percent of the state's average weekly wage.
107.13    The applicant's average weekly wage under clause (1) is computed by dividing
107.14the total wage credits by 52. The applicant's average weekly wage under clause (2) is
107.15computed by dividing the high quarter wage credits by 13.
107.16    (c) ~~The state's maximum weekly unemployment benefit amount and an applicant's~~
107.17~~weekly unemployment benefit amount and maximum amount of unemployment benefits~~
107.18~~available is rounded down to the next lower whole dollar.~~ The state's maximum weekly
107.19benefit amount, computed in accordance with section 268.035, subdivision 23, applies
107.20to a benefit account established effective on or after the last Sunday in October. Once
107.21established, an applicant's weekly unemployment benefit amount is not affected by the last
107.22Sunday in October change in the state's maximum weekly unemployment benefit amount.
107.23    (d) The maximum amount of unemployment benefits available on any benefit
107.24account is the lower of:
107.25    (1) 33-1/3 percent of the applicant's total wage credits; or
107.26    (2) 26 times the applicant's weekly unemployment benefit amount.

107.27    Sec. 21. Minnesota Statutes 2008, section 268.07, subdivision 3, is amended to read:
107.28    Subd. 3. Second benefit account requirements. To establish a second benefit
107.29account following the expiration of a benefit year on a prior benefit account, an
107.30applicant must ~~have sufficient wage credits to establish a benefit account under~~ meet the
107.31requirements of subdivision 2 and must have performed services in covered employment
107.32after the effective date of the prior benefit account. The wages paid for ~~that employment~~
107.33those services must ~~equal not less than~~ be at least eight times the weekly unemployment
107.34benefit amount of the prior benefit account. Part of the ~~purpose of~~ reason for this
108.1subdivision is to prevent an applicant from establishing more than one benefit account as a
108.2result of one loss of employment.

108.3    Sec. 22. Minnesota Statutes 2008, section 268.084, is amended to read:
108.4268.084 PERSONAL IDENTIFICATION NUMBER; PRESUMPTION.
108.5    (a) Each applicant must be issued a personal identification number (PIN) for the
108.6purpose of filing continued requests for unemployment benefits, accessing information,
108.7and engaging in other transactions with the department.
108.8    (b) If a PIN assigned to an applicant is used in the filing of a continued request for
108.9unemployment benefits under section ~~268.086~~ 268.0865 or any other type of transaction,
108.10the applicant is presumed to have been the individual using that PIN and presumed to have
108.11received any unemployment benefit payment issued. This presumption may be rebutted
108.12by a preponderance of the evidence showing that the applicant assigned the PIN was not
108.13the individual who used that PIN in the transaction.
108.14    (c) The commissioner ~~shall~~ must notify each applicant of this section.

108.15    Sec. 23. Minnesota Statutes 2008, section 268.085, subdivision 1, is amended to read:
108.16    Subdivision 1. Eligibility conditions. An applicant may be eligible to receive
108.17unemployment benefits for any week if:
108.18    (1) the applicant has ~~an active benefit account and has~~ filed a continued request for
108.19unemployment benefits for that week under section ~~268.086~~ 268.0865;
108.20    (2) the week for which unemployment benefits are requested is in the applicant's
108.21benefit year;
108.22    (3) the applicant was unemployed as defined in section 268.035, subdivision 26;
108.23    (4) the applicant was ~~able to work and was~~ available for suitable employment~~, and~~
108.24~~was actively seeking suitable employment~~ as defined in subdivision 15. The applicant's
108.25weekly unemployment benefit amount is reduced one-fifth for each day the applicant
108.26is ~~unable to work or is~~ unavailable for suitable employment. ~~If the computation of the~~
108.27~~reduced unemployment benefits is not a whole dollar, it is rounded down to the next lower~~
108.28~~whole dollar.~~ This clause does not apply to an applicant who is in reemployment assistance
108.29training, or each day the applicant is on jury duty or serving as an election judge;
108.30    (5) the applicant was actively seeking suitable employment as defined in subdivision
108.3116. This clause does not apply to an applicant who is in reemployment assistance training
108.32or who was on jury duty throughout the week;
108.33(6) the applicant has served a nonpayable waiting period of one week that the
108.34applicant is otherwise entitled to some amount of unemployment benefits. This clause
108.35does not apply if the applicant would have been entitled to federal disaster unemployment
109.1assistance because of a disaster in Minnesota, but for the applicant's establishment of a
109.2benefit account under section 268.07; and
109.3    ~~(6)~~ (7) the applicant has been participating in reemployment assistance services,
109.4such as job search and resume writing classes, if the applicant has been determined in
109.5need of reemployment assistance services by the commissioner, unless the applicant
109.6has good cause for failing to participate.

109.7    Sec. 24. Minnesota Statutes 2008, section 268.085, subdivision 2, is amended to read:
109.8    Subd. 2. Not eligible. An applicant is ineligible for unemployment benefits for
109.9any week:
109.10    (1) that occurs before the effective date of a benefit account;
109.11    (2) that the applicant, at the beginning of the week, has an outstanding fraud
109.12overpayment balance under section 268.18, subdivision 2, including any penalties and
109.13interest;
109.14    (3) that occurs in a period when the applicant is a student in attendance at, or on
109.15vacation from a secondary school including the period between academic years or terms;
109.16    (4) that the applicant is incarcerated or performing ~~court ordered~~ court-ordered
109.17community service. The applicant's weekly unemployment benefit amount is reduced
109.18by one-fifth for each day the applicant is incarcerated or performing ~~court ordered~~
109.19court-ordered community service~~. If the computation of the reduced unemployment~~
109.20~~benefits is not a whole dollar, it is rounded down to the next lower whole dollar~~;
109.21    (5) that the applicant fails or refuses to provide information on an issue of
109.22ineligibility required under section 268.101;
109.23    (6) that the applicant is performing services 32 hours or more, in employment,
109.24covered employment, noncovered employment, volunteer work, or self-employment
109.25regardless of the amount of any earnings; or
109.26    (7) with respect to which the applicant is receiving, has received, or has filed an
109.27application for unemployment benefits under any federal law or the law of any other
109.28state. If the appropriate agency finally determines that the applicant is not entitled to the
109.29unemployment benefits, this clause does not apply.

109.30    Sec. 25. Minnesota Statutes 2008, section 268.085, subdivision 3a, is amended to read:
109.31    Subd. 3a. Workers' compensation and disability insurance offset. (a) An
109.32applicant is not eligible to receive unemployment benefits for any week in which the
109.33applicant is receiving or has received compensation for loss of wages equal to or in excess
109.34of the applicant's weekly unemployment benefit amount under:
109.35    (1) the workers' compensation law of this state;
110.1    (2) the workers' compensation law of any other state or similar federal law; or
110.2    (3) any insurance or trust fund paid in whole or in part by an employer.
110.3    (b) This subdivision does not apply to an applicant who has a claim pending for
110.4loss of wages under paragraph (a); however, before unemployment benefits may be paid
110.5when a claim is pending, the issue of the applicant being ~~able to work~~ available for
110.6suitable employment, as required under subdivision 1, clause ~~(2)~~ (4), is determined under
110.7section 268.101, subdivision 3 2. If the applicant later receives compensation as a result
110.8of the pending claim, the applicant is subject to the provisions of paragraph (a) and the
110.9unemployment benefits paid are subject to recoupment by the commissioner to the extent
110.10that the compensation constitutes overpaid unemployment benefits.
110.11    (c) If the amount of compensation described under paragraph (a) for any week is
110.12less than the applicant's weekly unemployment benefit amount, unemployment benefits
110.13requested for that week are reduced by the amount of that compensation payment.

110.14    Sec. 26. Minnesota Statutes 2008, section 268.085, subdivision 4, is amended to read:
110.15    Subd. 4. Social Security benefits. (a) Any applicant aged 62 or over is required
110.16to state when filing an application for unemployment benefits and when filing continued
110.17requests for unemployment benefits if the applicant is receiving, has filed for, or intends to
110.18file for, primary Social Security old age benefits for any week during the benefit year.
110.19    ~~If the effective date of the applicant's Social Security claim for old age benefits is,~~
110.20~~or will be, after the start of the base period, there must be deducted from an applicant's~~
110.21~~weekly unemployment benefit amount~~ Unless paragraph (b) applies, 50 percent of the
110.22weekly equivalent of the primary Social Security old age benefit the applicant has
110.23received, has filed for, or intends to file for, with respect to that week must be deducted
110.24from an applicant's weekly unemployment benefit amount.
110.25    (b) If ~~the effective date~~ all of the applicant's wage credits were earned while the
110.26applicant was claiming Social Security ~~claim~~ for old age benefits ~~is before the start of the~~
110.27~~base period~~, there is no deduction from the applicant's weekly unemployment benefit
110.28amount. The purpose of this paragraph is to ensure that an applicant who is claiming
110.29Social Security benefits has demonstrated a desire and ability to work.
110.30    ~~(b)~~ (c) An applicant who is receiving, has received, or has filed for primary Social
110.31Security disability benefits for any week during the benefit year must be determined
110.32~~unable to work and~~ unavailable for suitable employment for that week, unless:
110.33    (1) the Social Security Administration approved the collecting of primary Social
110.34Security disability benefits each month the applicant was employed during the base
110.35period; or
111.1    (2) the applicant provides a statement from an appropriate health care professional
111.2who is aware of the applicant's Social Security disability claim and the basis for that claim,
111.3certifying that the applicant is ~~able to work and~~ available for suitable employment.
111.4    If an applicant meets the requirements of clause (1) there is no deduction from the
111.5applicant's weekly benefit amount for any Social Security disability benefits. If only
111.6clause (2) applies, then there must be deducted from the applicant's weekly unemployment
111.7benefit amount 50 percent of the weekly equivalent of the primary Social Security
111.8disability benefits the applicant is receiving, has received, or has filed for, with respect
111.9to that week; provided, however, that if the Social Security Administration determines
111.10that an individual is not entitled to receive primary Social Security disability benefits for
111.11any week the applicant has applied for those benefits, the 50 percent deduction does not
111.12apply to that week.
111.13    ~~(c)~~ (d) Information from the Social Security Administration is considered conclusive,
111.14absent specific evidence showing that the information was erroneous.
111.15    ~~(d) If the computation of the reduced unemployment benefits is not a whole dollar, it~~
111.16~~is rounded down to the next lower whole dollar.~~
111.17    (e) This subdivision does not apply to Social Security survivor benefits.

111.18    Sec. 27. Minnesota Statutes 2008, section 268.085, subdivision 5, is amended to read:
111.19    Subd. 5. Deductible earnings. (a) If the applicant has earnings, including holiday
111.20pay, with respect to any week, from employment, covered employment, noncovered
111.21employment, self-employment, or volunteer work, equal to or in excess of the applicant's
111.22weekly unemployment benefit amount, the applicant is ineligible for unemployment
111.23benefits for that week.
111.24    (b) If the applicant has earnings, with respect to any week, that is less than
111.25the applicant's weekly unemployment benefit amount, from employment, covered
111.26employment, noncovered employment, self-employment, or volunteer work, 55 percent of
111.27the earnings are deducted from the weekly unemployment benefit amount.
111.28    ~~The resulting unemployment benefit, if not a whole dollar, is rounded down to the~~
111.29~~next lower whole dollar.~~
111.30    (c) No deduction is made from an applicant's weekly unemployment benefit amount
111.31for earnings from service in the National Guard or a United States military reserve unit or
111.32from direct service as a volunteer firefighter or volunteer ambulance service personnel.
111.33This exception to paragraphs (a) and (b) does not apply to on-call or standby pay provided
111.34to a volunteer firefighter or volunteer ambulance service personnel. No deduction is made
111.35for jury duty pay or for pay as an election judge.
112.1    (d) The applicant may report deductible earnings on continued requests for
112.2unemployment benefits at the next lower whole dollar amount.
112.3    (e) Deductible earnings does not include any money considered a deductible
112.4payment under subdivision 3, but includes all compensation considered wages under
112.5section 268.035, subdivision 29, and any other compensation considered earned income
112.6under state and federal law for income tax purposes.

112.7    Sec. 28. [268.0865] CONTINUED REQUEST FOR UNEMPLOYMENT
112.8BENEFITS.
112.9    Subdivision 1. Continued request for unemployment benefits defined. A
112.10continued request for unemployment benefits is a certification by an applicant, done
112.11on a weekly basis, that the applicant is unemployed and meets the ongoing eligibility
112.12requirements for unemployment benefits under section 268.085. A continued request
112.13must include information on possible issues of ineligibility in accordance with section
112.14268.101, subdivision 1, paragraph (c).
112.15    Subd. 2. Filing continued requests for unemployment benefits. (a) The
112.16commissioner must designate to each applicant one of the following methods for filing a
112.17continued request:
112.18    (1) by electronic transmission under subdivision 3; or
112.19    (2) by mail under subdivision 4.
112.20    (b) The method designated by the commissioner is the only method allowed for
112.21filing a continued request by that applicant. An applicant may ask that the other allowed
112.22method be designated and the commissioner must consider inconvenience to the applicant
112.23as well as administrative capacity in determining whether to allow an applicant to change
112.24the designated method for filing a continued request for unemployment benefits.
112.25    Subd. 3. Continued request for unemployment benefits by electronic
112.26transmission. (a) A continued request for unemployment benefits by electronic
112.27transmission must be filed to that electronic mail address, telephone number, or Internet
112.28address prescribed by the commissioner for that applicant. In order to constitute a
112.29continued request, all information asked for, including information authenticating that the
112.30applicant is sending the transmission, must be provided in the format required. If all of the
112.31information asked for is not provided, the communication does not constitute a continued
112.32request for unemployment benefits.
112.33    (b) The electronic transmission communication must be filed on the date and during
112.34the time of day designated for the applicant for filing a continued request by electronic
112.35transmission.
113.1    (c) If the electronic transmission continued request is not filed on the date and
113.2during the time of day designated, a continued request by electronic transmission must be
113.3accepted if the applicant files the continued request by electronic transmission within two
113.4calendar weeks following the week in which the date designated occurred. If the continued
113.5request by electronic transmission is not filed within two calendar weeks following the
113.6week in which the date designated occurred, the electronic continued request will not be
113.7accepted and the applicant is ineligible for unemployment benefits for the period covered
113.8by the continued request, unless the applicant shows good cause for failing to file the
113.9continued request by electronic transmission within the time period required.
113.10    Subd. 4. Continued request for unemployment benefits by mail. (a) A
113.11continued request for unemployment benefits by mail must be on a form prescribed by
113.12the commissioner. The form, in order to constitute a continued request, must be totally
113.13completed and signed by the applicant. The form must be filed on the date required for
113.14the applicant for filing a continued request by mail, in an envelope with postage prepaid,
113.15and sent to the address designated.
113.16    (b) If the mail continued request for unemployment benefits is not filed on the date
113.17designated, a continued request must be accepted if the form is filed by mail within two
113.18calendar weeks following the week in which the date designated occurred. If the form
113.19is not filed within two calendar weeks following the week in which the date designated
113.20occurred, the form will not be accepted and the applicant is ineligible for unemployment
113.21benefits for the period covered by the continued request for unemployment benefits,
113.22unless the applicant shows good cause for failing to file the form by mail within the time
113.23period required.
113.24    (c) If the applicant has been designated to file a continued request for unemployment
113.25benefits by mail, an applicant may submit the form by facsimile transmission on the day
113.26otherwise required for mailing, or within two calendar weeks following the week in which
113.27the date designated occurred. A form submitted by facsimile transmission must be sent
113.28only to the telephone number assigned for that purpose.
113.29    (d) An applicant who has been designated to file a continued request by mail may
113.30personally deliver a continued request form only to the location to which the form was
113.31otherwise designated to be mailed.
113.32    Subd. 5. Good cause defined. (a) "Good cause" for purposes of this section is a
113.33compelling substantial reason that would have prevented a reasonable person acting with
113.34due diligence from filing a continued request for unemployment benefits within the time
113.35periods required.
114.1    (b) "Good cause" does not include forgetfulness, loss of the continued request form
114.2if filing by mail, having returned to work, having an appeal pending, or inability to file a
114.3continued request for unemployment benefits by the method designated if the applicant
114.4was aware of the inability and did not make diligent effort to have the method of filing a
114.5continued request changed by the commissioner. "Good cause" does not include having
114.6previously made an attempt to file a continued request for unemployment benefits but
114.7where the communication was not considered a continued request because the applicant
114.8failed to submit all required information.

114.9    Sec. 29. Minnesota Statutes 2008, section 268.095, subdivision 10, is amended to read:
114.10    Subd. 10. Ineligibility duration. (a) Ineligibility from the payment of all
114.11unemployment benefits under subdivisions 1 and 4 is for the duration of the applicant's
114.12unemployment and until the end of the calendar week that the applicant had total earnings
114.13in subsequent covered employment of eight times the applicant's weekly unemployment
114.14benefit amount.
114.15    (b) Ineligibility imposed under subdivisions 1 and 4 begins on the Sunday of the
114.16week that the applicant became separated from employment.
114.17    (c) In addition to paragraph (a), if the applicant was discharged from employment
114.18because of aggravated employment misconduct, wage credits from that employment are
114.19canceled and cannot be used for purposes of a benefit account under section 268.07,
114.20subdivision 2.

114.21    Sec. 30. Minnesota Statutes 2008, section 268.095, subdivision 11, is amended to read:
114.22    Subd. 11. Application. (a) This section and section 268.085, subdivision 13c,
114.23~~and this section~~ apply to all covered employment, full time or part time, temporary or of
114.24limited duration, permanent or of indefinite duration, that occurred in Minnesota during
114.25the base period, the period between the end of the base period and the effective date of the
114.26benefit account, or the benefit year~~, except as provided for in subdivision 1, clause (5)~~.
114.27    (b) Paragraph (a) also applies to employment covered under an unemployment
114.28insurance program of any other state or established by an act of Congress.

114.29    Sec. 31. Minnesota Statutes 2008, section 268.101, subdivision 1, is amended to read:
114.30    Subdivision 1. Notification. (a) In an application for unemployment benefits, each
114.31applicant must report the name and the reason for no longer working for the applicant's
114.32most recent employer, as well as the names of all employers and the reasons for no
114.33longer working for all employers during the six calendar months before the date of the
114.34application. If the reason reported for no longer working for any of those employers is
115.1other than a layoff because of lack of work, that raises an issue of ineligibility that the
115.2department must determine. An applicant must report any offers of employment refused
115.3during the eight calendar weeks before the date of the application for unemployment
115.4benefits and the name of the employer that made the offer. An applicant's failure to report
115.5the name of an employer, or giving an incorrect reason for no longer working for an
115.6employer, or failing to disclose an offer of employment that was refused, is a violation of
115.7section 268.182, subdivision 2.
115.8    In an application, the applicant must also provide all information necessary to
115.9determine the applicant's eligibility for unemployment benefits under this chapter. If the
115.10applicant fails or refuses to provide information necessary to determine the applicant's
115.11eligibility for unemployment benefits, the applicant is ineligible for unemployment
115.12benefits under section 268.085, subdivision 2, until the applicant provides this required
115.13information.
115.14    (b) Upon establishment of a benefit account under section 268.07, subdivision 2,
115.15the commissioner shall notify, by mail or electronic transmission, all employers the
115.16applicant was required to report on the application and all base period employers and
115.17determined successors to those employers under section 268.051, subdivision 4, in order
115.18to provide the employer an opportunity to raise, in a manner and format prescribed by the
115.19commissioner, any issue of ineligibility. An employer must be informed of the effect that
115.20failure to raise an issue of ineligibility as a result of a quit or discharge of the applicant,
115.21~~within ten calendar days after sending of the notice,~~ as provided for under subdivision 2,
115.22paragraph (b), may have on the employer under section 268.047.
115.23    (c) Each applicant must report any employment, and loss of employment, and offers
115.24of employment refused, during those weeks the applicant filed continued requests for
115.25unemployment benefits under section ~~268.086~~ 268.0865. Each applicant who stops filing
115.26continued requests during the benefit year and later begins filing continued requests during
115.27that same benefit year must report the name of any employer the applicant worked for
115.28during the period between the filing of continued requests and the reason the applicant
115.29stopped working for the employer. The applicant must report any offers of employment
115.30refused during the period between the filing of continued requests for unemployment
115.31benefits. Those employers from which the applicant has reported a loss of employment
115.32under this paragraph must be notified by mail or electronic transmission and provided an
115.33opportunity to raise, in a manner prescribed by the commissioner, any issue of ineligibility.
115.34An employer must be informed of the effect that failure to raise an issue of ineligibility as
115.35a result of a quit or a discharge of the applicant may have on the employer under section
115.36268.047 .
116.1    (d) The purpose for requiring the applicant to report the name of employers and the
116.2reason for no longer working for those employers, or offers of employment refused, under
116.3paragraphs (a) and (c) is for the commissioner to obtain information from an applicant
116.4raising all issues that may result in the applicant being ineligible for unemployment
116.5benefits under section 268.095, because of a quit or discharge, or the applicant being
116.6ineligible for unemployment benefits under section 268.085, subdivision 13c. If the
116.7reason given by the applicant for no longer working for an employer is other than a layoff
116.8because of lack of work, that raises an issue of ineligibility and the applicant is required,
116.9as part of the determination process under subdivision 2, paragraph (a), to state all the
116.10facts about the cause for no longer working for the employer, if known. If the applicant
116.11fails or refuses to provide any required information, the applicant is ineligible for
116.12unemployment benefits under section 268.085, subdivision 2, until the applicant provides
116.13this required information.

116.14    Sec. 32. Minnesota Statutes 2008, section 268.101, subdivision 2, is amended to read:
116.15    Subd. 2. Determination. (a) The commissioner ~~shall~~ must determine any issue
116.16of ineligibility raised by information required from an applicant under subdivision 1,
116.17paragraph (a) or (c), and send to the applicant and any involved employer, by mail or
116.18electronic transmission, a document titled a determination of eligibility or a determination
116.19of ineligibility, as is appropriate. The determination on an issue of ineligibility as a result
116.20of a quit or a discharge of the applicant must state the effect on the employer under section
116.21268.047 . A determination must be made in accordance with this paragraph even if a
116.22notified employer has not raised the issue of ineligibility.
116.23    (b) The commissioner ~~shall~~ must determine any issue of ineligibility raised by an
116.24employer and send to the applicant and that employer, by mail or electronic transmission,
116.25a document titled a determination of eligibility or a determination of ineligibility as is
116.26appropriate. The determination on an issue of ineligibility as a result of a quit or discharge
116.27of the applicant must state the effect on the employer under section 268.047.
116.28    If a base period employer:
116.29    (1) was not the applicant's most recent employer before the application for
116.30unemployment benefits;
116.31    (2) did not employ the applicant during the six calendar months before the
116.32application for unemployment benefits; and
116.33    (3) did not raise an issue of ineligibility as a result of a quit or discharge of the
116.34applicant within ten calendar days of notification under subdivision 1, paragraph (b);
117.1then any exception under section 268.047, subdivisions 2 and 3, begins the Sunday two
117.2weeks following the week that the issue of ineligibility as a result of a quit or discharge of
117.3the applicant was raised by the employer.
117.4    A communication from an employer must specifically set out why the applicant
117.5should be determined ineligible for unemployment benefits for that communication to be
117.6considered to have raised an issue of ineligibility for purposes of this section. A statement
117.7of "protest" or a similar term without more information does not constitute raising an issue
117.8of ineligibility for purposes of this section.
117.9    (c) Subject to section 268.031, an issue of ineligibility is determined based upon
117.10that information required of an applicant, any information that may be obtained from an
117.11applicant or employer, and information from any other source~~, without regard to any~~
117.12~~burden of proof~~.
117.13    (d) Regardless of the requirements of this subdivision, the commissioner is not
117.14required to send to an applicant a copy of the determination where the applicant has
117.15satisfied a period of ineligibility because of a quit or a discharge under section 268.095,
117.16subdivision 10 .
117.17    (e) The commissioner may issue a determination on an issue of ineligibility at any
117.18time within 24 months from the establishment of a benefit account based upon information
117.19from any source, even if the issue of ineligibility was not raised by the applicant or an
117.20employer. This paragraph does not prevent the imposition of a penalty on an applicant
117.21under section 268.18, subdivision 2, or 268.182.
117.22    (f) A determination of eligibility or determination of ineligibility is final unless an
117.23appeal is filed by the applicant or notified employer within 20 calendar days after sending.
117.24The determination must contain a prominent statement indicating the consequences of not
117.25appealing. Proceedings on the appeal are conducted in accordance with section 268.105.
117.26    (g) An issue of ineligibility required to be determined under this section includes
117.27any question regarding the denial or allowing of unemployment benefits under this chapter
117.28except for issues under section 268.07. An issue of ineligibility for purposes of this section
117.29includes any question of effect on an employer under section 268.047.
117.30    (h) Except for issues of ineligibility as a result of a quit or discharge of the applicant,
117.31the employer will be (1) sent a copy of the determination of eligibility or a determination
117.32of ineligibility, or (2) considered an involved employer for purposes of an appeal under
117.33section 268.105, only if the employer raised the issue of ineligibility.

117.34    Sec. 33. Minnesota Statutes 2008, section 268.103, subdivision 1, is amended to read:
118.1    Subdivision 1. In commissioner's discretion. (a) The commissioner ~~shall have~~
118.2~~the discretion to~~ may allow an appeal to be filed by electronic transmission. If the
118.3commissioner allows an appeal to be filed by electronic transmission, that must be clearly
118.4set out on the determination or decision subject to appeal.
118.5    (b) The commissioner may restrict the manner, and format~~, and conditions~~ under
118.6which an appeal by electronic transmission may be filed. ~~Any~~ Restrictions as to ~~days,~~
118.7~~hours,~~ a specific telephone number, or electronic address~~, or other conditions,~~ must be
118.8clearly set out on the determination or decision subject to appeal.
118.9    (c) All information requested by the commissioner when an appeal is filed by
118.10electronic transmission must be supplied or the communication does not constitute an
118.11appeal.
118.12(d) This section applies to requests for reconsideration under section 268.105,
118.13subdivision 2.

118.14    Sec. 34. Minnesota Statutes 2008, section 268.105, subdivision 1, is amended to read:
118.15    Subdivision 1. Evidentiary hearing by unemployment law judge. (a) Upon
118.16a timely appeal having been filed, the department must send, by mail or electronic
118.17transmission, a notice of appeal to all involved parties that an appeal has been filed, and
118.18that a de novo due process evidentiary hearing will be scheduled~~, and that the parties~~
118.19~~have~~ ~~certain~~. The notice must set out the parties' rights and responsibilities regarding the
118.20hearing. The notice must explain that the facts will be determined by the unemployment
118.21law judge based upon a preponderance of the evidence. The notice must explain in clear
118.22and simple language the meaning of the term "preponderance of the evidence." The
118.23department must set a time and place for a de novo due process evidentiary hearing and
118.24send notice to any involved applicant and any involved employer, by mail or electronic
118.25transmission, not less than ten calendar days before the date of the hearing.
118.26    (b) The evidentiary hearing is conducted by an unemployment law judge ~~without~~
118.27~~regard to any burden of proof~~ as an evidence gathering inquiry ~~and not an adversarial~~
118.28~~proceeding~~. At the beginning of the hearing the unemployment law judge must fully
118.29explain how the hearing will be conducted, that the facts will be determined based on a
118.30preponderance of the evidence, and, in clear and simple language, the meaning of the
118.31term "preponderance of the evidence." The unemployment law judge must ensure that
118.32all relevant facts are clearly and fully developed. The department may adopt rules on
118.33evidentiary hearings. The rules need not conform to common law or statutory rules of
118.34evidence and other technical rules of procedure. The department has discretion regarding
118.35the method by which the evidentiary hearing is conducted. A report of any employee of
119.1the department, except a determination, made in the regular course of the employee's
119.2duties, is competent evidence of the facts contained in it.
119.3    (c) After the conclusion of the hearing, upon the evidence obtained, the
119.4unemployment law judge must make findings of fact and decision and send those, by mail
119.5or electronic transmission, to all involved parties. When the credibility of an involved
119.6party or witness testifying in an evidentiary hearing has a significant effect on the outcome
119.7of a decision, the unemployment law judge must set out the reason for crediting or
119.8discrediting that testimony. The unemployment law judge's decision is final unless a
119.9request for reconsideration is filed under subdivision 2.
119.10    (d) Regardless of paragraph (c), if the appealing party fails to participate in the
119.11evidentiary hearing, the unemployment law judge has the discretion to dismiss the appeal
119.12by summary order. By failing to participate, the appealing party is considered to have
119.13failed to exhaust available administrative remedies unless the appealing party files a
119.14request for reconsideration under subdivision 2 and establishes good cause for failing to
119.15participate in the evidentiary hearing under subdivision 2, paragraph (d). Submission
119.16of a written statement does not constitute participation. The applicant must participate
119.17personally and appearance solely by a representative does not constitute participation.
119.18    (e) Only employees of the department who are attorneys licensed to practice law
119.19in Minnesota may serve as the chief unemployment law judge, senior unemployment
119.20law judges who are supervisors, or unemployment law judges. The commissioner
119.21must designate a chief unemployment law judge. The chief unemployment law judge
119.22may transfer to another unemployment law judge any proceedings pending before an
119.23unemployment law judge.

119.24    Sec. 35. Minnesota Statutes 2008, section 268.105, subdivision 2, is amended to read:
119.25    Subd. 2. Request for reconsideration. (a) Any involved applicant, involved
119.26employer, or the commissioner may, within 20 calendar days of the sending of the
119.27unemployment law judge's decision under subdivision 1, file a request for reconsideration
119.28asking the unemployment law judge to reconsider that decision. Section 268.103 applies
119.29to a request for reconsideration. If a request for reconsideration is timely filed, the
119.30unemployment law judge must issue an order:
119.31    (1) modifying the findings of fact and decision issued under subdivision 1;
119.32    (2) setting aside the ~~findings of fact and~~ decision issued under subdivision 1 and
119.33directing that an additional evidentiary hearing be conducted under subdivision 1; or
119.34    (3) affirming the findings of fact and decision issued under subdivision 1.
120.1    (b) Upon a timely request for reconsideration having been filed, the department must
120.2send a notice, by mail or electronic transmission, to all involved parties that a request for
120.3reconsideration has been filed. The notice must inform the involved parties:
120.4    (1) of the opportunity to provide comment on the request for reconsideration, and
120.5the right under subdivision 5 to obtain a copy of any recorded testimony and exhibits
120.6offered or received into evidence at the evidentiary hearing;
120.7    (2) that providing specific comments as to a perceived factual or legal error in the
120.8decision, or a perceived error in procedure during the evidentiary hearing, will assist the
120.9unemployment law judge in deciding the request for reconsideration;
120.10    (3) of the right to obtain any comments and submissions provided by the other
120.11involved party regarding the request for reconsideration; and
120.12    (4) of the provisions of paragraph (c) regarding additional evidence.
120.13This paragraph does not apply if paragraph (d) is applicable.
120.14    (c) In deciding a request for reconsideration, the unemployment law judge must not,
120.15except for purposes of determining whether to order an additional evidentiary hearing,
120.16consider any evidence that was not submitted at the evidentiary hearing conducted under
120.17subdivision 1.
120.18    The unemployment law judge must order an additional evidentiary hearing if an
120.19involved party shows that evidence which was not submitted at the evidentiary hearing:
120.20(1) would likely change the outcome of the decision and there was good cause for not
120.21having previously submitted that evidence; or (2) would show that the evidence that was
120.22submitted at the evidentiary hearing was likely false and that the likely false evidence had
120.23an effect on the outcome of the decision.
120.24    (d) If the involved applicant or involved employer who filed the request for
120.25reconsideration failed to participate in the evidentiary hearing conducted under subdivision
120.261, an order setting aside the ~~findings of fact and~~ decision and directing that an additional
120.27evidentiary hearing be conducted must be issued if the party who failed to participate had
120.28good cause for failing to do so. In the notice that a request for reconsideration has been
120.29filed, the party who failed to participate must be informed of the requirement, and provided
120.30the opportunity, to show good cause for failing to participate. If the unemployment
120.31law judge determines that good cause for failure to participate has not been shown, the
120.32unemployment law judge must state that in the order issued under paragraph (a).
120.33    Submission of a written statement at the evidentiary hearing under subdivision 1
120.34does not constitute participation for purposes of this paragraph.
120.35    All involved parties must be informed of this paragraph with the notice of appeal
120.36and notice of hearing provided for in subdivision 1.
121.1    "Good cause" for purposes of this paragraph is a reason that would have prevented a
121.2reasonable person acting with due diligence from participating at the evidentiary hearing.
121.3    (e) A request for reconsideration must be decided by the unemployment law judge
121.4who issued the ~~findings of fact and~~ decision under subdivision 1 unless that unemployment
121.5law judge: (1) is no longer employed by the department; (2) is on an extended or indefinite
121.6leave; (3) has been disqualified from the proceedings on the judge's own motion; or (4)
121.7has been removed from the proceedings ~~as provided for under subdivision 1 or applicable~~
121.8~~rule~~ by the chief unemployment law judge.
121.9    (f) The unemployment law judge must send to any involved applicant or involved
121.10employer, by mail or electronic transmission, the order issued under this subdivision. An
121.11order modifying the previously issued findings of fact and decision or an order affirming
121.12the previously issued findings of fact and decision is the final department decision on the
121.13matter and is final and binding on the involved applicant and involved employer unless
121.14judicial review is sought under subdivision 7.

121.15    Sec. 36. Minnesota Statutes 2008, section 268.105, subdivision 3a, is amended to read:
121.16    Subd. 3a. Decisions. (a) If an unemployment law judge's decision or order
121.17allows unemployment benefits to an applicant, the unemployment benefits must be paid
121.18regardless of any request for reconsideration or any appeal to the Minnesota Court of
121.19Appeals having been filed.
121.20    (b) If an unemployment law judge's decision or order modifies or reverses a
121.21determination, or prior decision of the unemployment law judge, allowing unemployment
121.22benefits to an applicant, any benefits paid in accordance with the determination, or
121.23prior decision of the unemployment law judge, is considered an overpayment of those
121.24unemployment benefits. A decision or order issued under this section that results in an
121.25overpayment of unemployment benefits must set out the amount of the overpayment and
121.26the requirement under section 268.18, subdivision 1, that the overpaid unemployment
121.27benefits must be repaid.
121.28    (c) If an unemployment law judge's order under subdivision 2 allows unemployment
121.29benefits to an applicant under section 268.095 because of a quit or discharge and the
121.30unemployment law judge's decision is reversed by the Minnesota Court of Appeals or
121.31the Supreme Court of Minnesota, the applicant cannot be held ineligible for any of
121.32the unemployment benefits paid the applicant and it is not considered an overpayment
121.33of those unemployment benefits under section 268.18, subdivision 1. The effect of the
121.34court's reversal is the application of section 268.047, subdivision 3, in computing the
121.35future tax rate of the employer.
122.1    (d) If an unemployment law judge, under subdivision 2, orders the taking of
122.2additional evidence, the unemployment law judge's prior decision must continue to be
122.3enforced until new findings of fact and decision are made by the unemployment law judge.

122.4    Sec. 37. Minnesota Statutes 2008, section 268.105, subdivision 4, is amended to read:
122.5    Subd. 4. Oaths; subpoenas. An unemployment law judge has authority to
122.6administer oaths and affirmations, take depositions, and issue subpoenas to compel the
122.7attendance of witnesses and the production of documents and other personal property
122.8considered necessary as evidence in connection with the subject matter of an evidentiary
122.9hearing.
122.10The unemployment law judge must give full consideration to a request for a
122.11subpoena and must not unreasonably deny a request for a subpoena. If a subpoena request
122.12is initially denied, the unemployment law judge must, on the unemployment law judge's
122.13own motion, reconsider that request during the evidentiary hearing and rule on whether
122.14the request was properly denied. If the request was not properly denied, the evidentiary
122.15hearing must be continued for issuance of the subpoena. The subpoenas are enforceable
122.16through the district court in Ramsey County. Witnesses subpoenaed, other than an involved
122.17applicant or involved employer or officers and employees of an involved employer, must
122.18be paid by the department the same witness fees as in a civil action in district court.

122.19    Sec. 38. Minnesota Statutes 2008, section 268.115, subdivision 5, is amended to read:
122.20    Subd. 5. Maximum amount of extended unemployment benefits. The maximum
122.21amount of extended unemployment benefits available to an applicant is 50 percent of the
122.22maximum amount of regular unemployment benefits available in the benefit year~~, rounded~~
122.23~~down to the next lower whole dollar~~. If the total rate of unemployment computed under
122.24subdivision 1, clause (2)(ii), equaled or exceeded eight percent, the maximum amount
122.25of extended unemployment benefits available is 80 percent of the maximum amount of
122.26regular unemployment benefits available in the benefit year.

122.27    Sec. 39. Minnesota Statutes 2008, section 268.125, subdivision 5, is amended to read:
122.28    Subd. 5. Maximum amount of unemployment benefits. The maximum amount
122.29of additional unemployment benefits available in the applicant's benefit year is one-half
122.30of the applicant's maximum amount of regular unemployment benefits available under
122.31section 268.07, subdivision 2~~, rounded down to the next lower whole dollar~~. Extended
122.32unemployment benefits paid and unemployment benefits paid under any federal law other
122.33than regular unemployment benefits must be deducted from the maximum amount of
122.34additional unemployment benefits available.

123.1    Sec. 40. Minnesota Statutes 2008, section 268.135, subdivision 4, is amended to read:
123.2    Subd. 4. Weekly benefit amount. (a) An applicant who is eligible for shared work
123.3benefits is paid an amount equal to the regular weekly unemployment benefit amount
123.4multiplied by the nearest full percentage of reduction of the applicant's regular weekly
123.5hours of work as set in the plan. ~~The benefit payment, if not a whole dollar must be~~
123.6~~rounded down to the next lower whole dollar.~~
123.7    (b) The deductible earnings provisions of section 268.085, subdivision 5, must not
123.8apply to earnings from the shared work employer of an applicant eligible for shared work
123.9benefits unless the resulting amount would be less than the regular weekly unemployment
123.10benefit amount the applicant would otherwise be eligible for without regard to shared
123.11work benefits.
123.12    (c) An applicant is not eligible for shared work benefits for any week that
123.13employment is performed for the shared work employer in excess of the reduced hours
123.14set forth in the plan.

123.15    Sec. 41. Minnesota Statutes 2008, section 268.145, subdivision 1, is amended to read:
123.16    Subdivision 1. Notification. (a) Upon filing an application for unemployment
123.17benefits, the applicant must be informed that:
123.18    (1) unemployment benefits are subject to federal and state income tax;
123.19    (2) there are requirements for filing estimated tax payments;
123.20    (3) the applicant may elect to have federal income tax withheld from unemployment
123.21benefits;
123.22    (4) if the applicant elects to have federal income tax withheld, the applicant may, in
123.23addition, elect to have Minnesota state income tax withheld; and
123.24    (5) at any time during the benefit year the applicant may change a prior election.
123.25    (b) If an applicant elects to have federal income tax withheld, the commissioner
123.26~~shall~~ must deduct ten percent for federal income tax~~, rounded down to the next lower~~
123.27~~whole dollar~~. If an applicant also elects to have Minnesota state income tax withheld, the
123.28commissioner ~~shall~~ must make an additional five percent deduction for state income
123.29tax~~, rounded down to the next lower whole dollar~~. Any amounts deducted or offset under
123.30sections 268.155, 268.18, and 268.184 have priority over any amounts deducted under this
123.31section. Federal income tax withholding has priority over state income tax withholding.
123.32    (c) An election to have income tax withheld may not be retroactive and only applies
123.33to unemployment benefits paid after the election.

123.34    Sec. 42. Minnesota Statutes 2008, section 268.18, subdivision 1, is amended to read:
124.1    Subdivision 1. Nonfraud overpayment. (a) Any applicant who (1) because of a
124.2determination or amended determination issued under section 268.07 or 268.101, or any
124.3other section of this chapter, or (2) because of an appeal decision or order under section
124.4268.105 , has received any unemployment benefits that the applicant was held not entitled
124.5to, must promptly repay the unemployment benefits to the trust fund.
124.6    (b) If the applicant fails to repay the unemployment benefits overpaid, the
124.7commissioner may offset from any future unemployment benefits otherwise payable the
124.8amount of the overpayment. Except when the overpayment resulted because the applicant
124.9failed to report deductible earnings or deductible or benefit delaying payments, no single
124.10offset may exceed 50 percent of the amount of the payment from which the offset is made.
124.11The overpayment may also be collected by the ~~same~~ methods ~~as delinquent payments~~
124.12~~from an employer~~ allowed under state and federal law.
124.13    (c) If an applicant has been overpaid unemployment benefits under the law of
124.14another state, because of a reason other than fraud, and that state certifies that the applicant
124.15is liable under its law to repay the unemployment benefits and requests the commissioner
124.16to recover the overpayment, the commissioner may offset from future unemployment
124.17benefits otherwise payable the amount of overpayment, except that no single offset may
124.18exceed 50 percent of the amount of the payment from which the offset is made.
124.19    ~~(d) If under paragraph (b) or (c) the reduced unemployment benefits as a result of~~
124.20~~a 50 percent offset is not a whole dollar amount, it is rounded down to the next lower~~
124.21~~whole dollar.~~

124.22    Sec. 43. Minnesota Statutes 2008, section 268.18, subdivision 2, is amended to read:
124.23    Subd. 2. Overpayment because of fraud. (a) Any applicant who receives
124.24unemployment benefits by knowingly misrepresenting, misstating, or failing to disclose
124.25any material fact, or who makes a false statement or representation without a good faith
124.26belief as to the correctness of the statement or representation, has committed fraud. After
124.27the discovery of facts indicating fraud, the commissioner ~~shall~~ must make a determination
124.28that the applicant obtained unemployment benefits by fraud and that the applicant must
124.29promptly repay the unemployment benefits to the trust fund. In addition, the commissioner
124.30~~shall~~ must assess a penalty equal to 40 percent of the amount fraudulently obtained. This
124.31penalty is in addition to penalties under section 268.182.
124.32    (b) Unless the applicant files an appeal within 20 calendar days after the sending
124.33of the determination of overpayment by fraud to the applicant by mail or electronic
124.34transmission, the determination is final. Proceedings on the appeal are conducted in
124.35accordance with section 268.105.
125.1    (c) If the applicant fails to repay the unemployment benefits, penalty, and interest
125.2assessed, the total due may be collected by the ~~same~~ methods ~~as delinquent payments~~
125.3~~from an employer~~ allowed under state and federal law. A determination of overpayment
125.4by fraud must state the methods of collection the commissioner may use to recover the
125.5overpayment. Money received in repayment of fraudulently obtained unemployment
125.6benefits, penalties, and interest is first applied to the unemployment benefits overpaid, then
125.7to the penalty amount due, then to any interest due. 62.5 percent of the payments made
125.8toward the penalty are credited to the contingent account and 37.5 percent credited to the
125.9administration account ~~for deterring, detecting, or collecting overpayments~~.
125.10    (d) If an applicant has been overpaid unemployment benefits under the law of
125.11another state because of fraud and that state certifies that the applicant is liable to repay
125.12the unemployment benefits and requests the commissioner to recover the overpayment,
125.13the commissioner may offset from future unemployment benefits otherwise payable the
125.14amount of overpayment.
125.15    (e) Unemployment benefits paid for weeks more than four years before the date of a
125.16determination of overpayment by fraud issued under this subdivision are not considered
125.17overpaid unemployment benefits.

125.18    Sec. 44. Minnesota Statutes 2008, section 268.196, subdivision 1, is amended to read:
125.19    Subdivision 1. Administration account. (a) There is created in the state treasury a
125.20special account to be known as the administration account. All money that is deposited
125.21~~or paid~~ into this account is continuously available to the commissioner for expenditure to
125.22administer the Minnesota unemployment insurance program, and does not lapse at any
125.23time. The administration account consists of:
125.24    (1) all money received from the federal government to administer the Minnesota
125.25unemployment insurance program, any federal unemployment insurance program, or
125.26assistance provided to any other state to administer that state's unemployment insurance
125.27program;
125.28    (2) five percent of any money recovered on overpaid unemployment benefits as
125.29provided for in section 268.194, subdivision 1, clause (7), which must be used for
125.30deterring, detecting, and collecting overpaid unemployment benefits;
125.31    (3) any money received as compensation for services or facilities supplied to the
125.32federal government or any other state;
125.33    (4) any money credited to this account under this chapter;
125.34(5) any amounts received for losses sustained by this account or by reason of
125.35damage to equipment or supplies; and
126.1    ~~(5)~~ (6) any proceeds from the sale or disposition of any equipment or supplies that
126.2may no longer be necessary for the proper administration of those sections.
126.3    (b) All money in this account must be deposited, administered, and disbursed in the
126.4same manner and under the same conditions and requirements as are provided by law for
126.5the other special accounts in the state treasury. The commissioner of finance, as treasurer
126.6and custodian of this account, is liable for the faithful performance of duties in connection
126.7with this account.
126.8    ~~(c) All money in this account must be spent for the purposes and in the amounts~~
126.9~~found necessary by the United States Secretary of Labor for the proper and efficient~~
126.10~~administration of the Minnesota unemployment insurance program.~~

126.11    Sec. 45. Minnesota Statutes 2008, section 268.196, subdivision 2, is amended to read:
126.12    Subd. 2. State to replace money wrongfully used. If any money received under
126.13United States Code, title 42, section 501 of the Social Security Act ~~or the Wagner-Peyser~~
126.14~~Act,~~ is found by the United States Secretary of Labor to have been spent for purposes
126.15other than~~, or in amounts in excess of, those necessary~~ for the proper administration of the
126.16Minnesota unemployment insurance program, ~~the commissioner may replace the money~~
126.17~~from the contingent account. If the money is not replaced from the contingent account,~~
126.18~~it is the policy of this state that the money be replaced by money appropriated for that~~
126.19~~purpose from the general funds of this state. If not replaced from the contingent account,~~
126.20the commissioner ~~shall~~ must, at the earliest opportunity, submit to the legislature a request
126.21for the appropriation of that amount.

126.22    Sec. 46. Minnesota Statutes 2008, section 268.199, is amended to read:
126.23268.199 CONTINGENT ACCOUNT.
126.24    (a) There is created in the state treasury a special account, to be known as the
126.25contingent account, that does not lapse nor revert to any other fund or account. This
126.26account consists of ~~all money appropriated by the legislature,~~ all money collected under
126.27this chapter that is required to be placed in this account, and any interest earned on the
126.28account. All money in this ~~account is supplemental to all federal money available to the~~
126.29~~commissioner. Money in this~~ account is appropriated ~~to the commissioner~~ and is available
126.30~~to the commissioner~~ for administration of the Minnesota unemployment insurance
126.31program unless otherwise appropriated by session law.
126.32    (b) All money in this account must be deposited, administered, and disbursed in the
126.33same manner and under the same conditions and requirements as is provided by law for
126.34the other special accounts in the state treasury. ~~On June 30 of each year, all amounts in~~
126.35~~excess of $300,000 in this account must be paid over to the trust fund.~~

127.1    Sec. 47. Minnesota Statutes 2008, section 268.211, is amended to read:
127.2268.211 UNEMPLOYMENT INSURANCE BENEFITS TELEPHONE
127.3SYSTEM.
127.4The commissioner must ensure that ~~the~~ any automated telephone system used
127.5for unemployment insurance benefits provides an option for any caller to speak to an
127.6unemployment insurance specialist. An individual who calls any of the publicized
127.7telephone numbers seeking information about applying for unemployment benefits or on
127.8the status of a ~~claim~~ benefit account must have the option to speak on the telephone to a
127.9specialist who can provide direct assistance or can direct the caller to the ~~person~~ individual
127.10or office that is able to respond to the caller's needs.

127.11    Sec. 48. REVISOR'S INSTRUCTION.
127.12In Minnesota Statutes, chapter 268, the revisor shall change "shall" to "must," except
127.13in Minnesota Statutes, sections 268.035 and 268.103.

127.14    Sec. 49. REPEALER.
127.15 Minnesota Statutes 2008, sections 268.085, subdivision 14; and 268.086, are
127.16repealed.

127.17    Sec. 50. EFFECTIVE DATE.
127.18Sections 1 to 50 are effective August 2, 2009, and apply to all department
127.19determinations and unemployment law judge decisions issued on or after that date.

127.20ARTICLE 7

127.21LABOR STANDARDS AND WAGES

127.22    Section 1. [181.305] MINING EQUIPMENT OPERATORS, HOURS.
127.23    Subdivision 1. Required hours. No employer may require an employee to operate
127.24mining equipment or other mobile equipment used in the mining process for more than
127.2516 cumulative hours following eight consecutive hours off duty. "Mining equipment or
127.26other mobile equipment" includes but is not limited to: haul trucks, off-road dump trucks,
127.27front-end loaders, graders, or plows. Nothing in this subdivision shall:
127.28(1) prohibit an employee from working longer than 16 cumulative hours on duty
127.29if they so desire; or
127.30(2) supersede the terms of a valid collective bargaining agreement.
127.31    Subd. 2. Penalties. An employer who violates this section is guilty of a
127.32misdemeanor and is liable to an employee for injuries sustained in consequence of such
127.33violation.
128.1EFFECTIVE DATE.This section if effective the day following final enactment.

128.2ARTICLE 8

128.3LICENSING AND FEES

128.4    Section 1. [326B.153] BUILDING PERMIT FEES.
128.5    Subdivision 1. Building permits. (a) Fees for building permits submitted as
128.6required in section 326B.106 include:
128.7(1) the fee as set forth in the fee schedule in paragraph (b) or as adopted by a
128.8municipality; and
128.9(2) the surcharge required by section 326B.148.
128.10(b) The total valuation and fee schedule is:
128.11(1) $1 to $500, $29.50;
128.12(2) $501 to $2,000, $28 for the first $500 plus $3.70 for each additional $100 or
128.13fraction thereof, to and including $2,000;
128.14(3) $2,001 to $25,000, $83.50 for the first $2,000 plus $16.55 for each additional
128.15$1,000 or fraction thereof, to and including $25,000;
128.16(4) $25,001 to $50,000, $464.15 for the first $25,000 plus $12 for each additional
128.17$1,000 or fraction thereof, to and including $50,000;
128.18(5) $50,001 to $100,000, $764.15 for the first $50,000 plus $8.45 for each additional
128.19$1,000 or fraction thereof, to and including $100,000;
128.20(6) $100,001 to $500,000, $1,186.65 for the first $100,000 plus $6.75 for each
128.21additional $1,000 or fraction thereof, to and including $500,000;
128.22(7) $500,001 to $1,000,000, $3,886.65 for the first $500,000 plus $5.50 for each
128.23additional $1,000 or fraction thereof, to and including $1,000,000; and
128.24(8) $1,000,001 and up, $6,636.65 for the first $1,000,000 plus $4.50 for each
128.25additional $1,000 or fraction thereof.
128.26(c) Other inspections and fees are:
128.27(1) inspections outside of normal business hours (minimum charge two hours),
128.28$63.25 per hour;
128.29(2) reinspection fees, $63.25 per hour;
128.30(3) inspections for which no fee is specifically indicated (minimum charge one-half
128.31hour), $63.25 per hour; and
128.32(4) additional plan review required by changes, additions, or revisions to approved
128.33plans (minimum charge one-half hour), $63.25 per hour.
129.1(d) If the actual hourly cost to the jurisdiction under paragraph (c) is greater than
129.2$63.25, then the greater rate shall be paid. Hourly cost includes supervision, overhead,
129.3equipment, hourly wages, and fringe benefits of the employees involved.
129.4    Subd. 2. Plan review. Fees for the review of building plans, specifications, and
129.5related documents submitted as required by section 326B.106 must be paid based on 65
129.6percent of the building permit fee required in subpart 1.
129.7    Subd. 3. Surcharge. Surcharge fees are required for permits issued on all buildings
129.8including public buildings and state licensed facilities as required by section 326B.148.
129.9    Subd. 4. Distribution. (a) This subdivision establishes the fee distribution between
129.10the state and municipalities contracting for plan review and inspection of public buildings
129.11and state licensed facilities.
129.12(b) If plan review and inspection services are provided by the state building official,
129.13all fees for those services must be remitted to the state.
129.14(c) If plan review services are provided by the state building official and inspection
129.15services are provided by a contracting municipality:
129.16(1) the state shall charge 75 percent of the plan review fee required by the state's fee
129.17schedule in this part; and
129.18(2) the municipality shall charge 25 percent of the plan review fee required by the
129.19municipality's adopted fee schedule, for orientation to the plans, in addition to the permit
129.20and other customary fees charged by the municipality.
129.21(d) If plan review and inspection services are provided by the contracting
129.22municipality, all fees for those services must be remitted to the municipality in accordance
129.23with their adopted fee schedule.

129.24    Sec. 2. Minnesota Statutes 2008, section 326B.33, subdivision 19, is amended to read:
129.25    Subd. 19. License, registration, and renewal fees; expiration. (a) Unless
129.26revoked or suspended under this chapter, all licenses issued or renewed under this section
129.27expire on the date specified in this subdivision. Master licenses expire March 1 of each
129.28odd-numbered year after issuance or renewal. Electrical contractor licenses expire March
129.291 of each even-numbered year after issuance or renewal. Technology system contractor
129.30licenses expire August 1 of each even-numbered year after issuance or renewal. All
129.31other personal licenses expire two years from the date of original issuance and every two
129.32years thereafter. Registrations of unlicensed individuals expire one year from the date of
129.33original issuance and every year thereafter.
129.34    (b) Fees for application and examination, and for the original issuance and each
129.35subsequent renewal, are:
130.1    (1) For each personal license application and examination: $35;
130.2    (2) For original issuance and each subsequent renewal of:
130.3    Class A Master or master special electrician, including master elevator constructor:
130.4$40 per year;
130.5    Class B Master: $25 per year;
130.6    Power Limited Technician: $15 per year;
130.7    Class A Journeyman, Class B Journeyman, Installer, Elevator Constructor, Lineman,
130.8or Maintenance Electrician other than master special electrician: $15 per year;
130.9    Contractor: $100 per year;
130.10    Unlicensed individual registration: $15 per year.
130.11    (c) If any new license is issued in accordance with this subdivision for less than two
130.12years, the fee for the license shall be prorated on an annual basis.
130.13    (d) A license fee may not be refunded after a license is issued or renewed. However,
130.14if the fee paid for a license was not prorated in accordance with this subdivision, the
130.15amount of the overpayment shall be refunded.
130.16    (e) Any contractor who seeks reissuance of a license after it has been revoked or
130.17suspended under this chapter shall submit a reissuance fee of $100 before the license is
130.18reinstated.
130.19    ~~(f) The fee for the issuance of each duplicate license is $15.~~
130.20    ~~(g)~~ (f) An individual or contractor who fails to renew a license before 30 days after
130.21the expiration or registration of the license must submit a late fee equal to one year's
130.22license fee in addition to the full renewal fee. Fees for renewed licenses or registrations
130.23are not prorated. An individual or contractor that fails to renew a license or registration by
130.24the expiration date is unlicensed until the license or registration is renewed.

130.25    Sec. 3. Minnesota Statutes 2008, section 326B.46, subdivision 4, is amended to read:
130.26    Subd. 4. Fee. (a) Each person giving bond to the state under subdivision 2 shall pay
130.27the department ~~an annual~~ a bond registration fee of $40 for one year or $80 for two years.
130.28(b) The commissioner shall in a manner determined by the commissioner, without
130.29the need for any rulemaking under chapter 14, phase in the bond registration from one year
130.30to two years so that the expiration of bond registration corresponds with the expiration of
130.31the license issued under section 326B.49, subdivision 1, or 326B.475.

130.32    Sec. 4. Minnesota Statutes 2008, section 326B.475, subdivision 4, is amended to read:
130.33    Subd. 4. Renewal; use period for license. (a) A restricted master plumber and
130.34restricted journeyman plumber license must be renewed ~~annually~~ for as long as that
130.35licensee engages in the plumbing trade. Failure to renew a restricted master plumber and
131.1restricted journeyman plumber license within 12 months after the expiration date will
131.2result in permanent forfeiture of the restricted master plumber and restricted journeyman
131.3plumber license.
131.4(b) The commissioner shall in a manner determined by the commissioner, without
131.5the need for any rulemaking under chapter 14, phase in the renewal of restricted master
131.6plumber and restricted journeyman plumber licenses from one year to two years. By
131.7June 30, 2011, all restricted master plumber and restricted journeyman plumber licenses
131.8shall be two-year licenses.

131.9    Sec. 5. Minnesota Statutes 2008, section 326B.475, subdivision 7, is amended to read:
131.10    Subd. 7. Fee. The ~~annual~~ renewal fee for the restricted master plumber and
131.11restricted journeyman plumber licenses is the same fee as for a master or journeyman
131.12plumber license, respectively.

131.13    Sec. 6. Minnesota Statutes 2008, section 326B.49, subdivision 1, is amended to read:
131.14    Subdivision 1. Application. (a) Applications for plumber's license shall be made to
131.15the commissioner, with fee. Unless the applicant is entitled to a renewal, the applicant
131.16shall be licensed by the commissioner only after passing a satisfactory examination
131.17developed and administered by the commissioner, based upon rules adopted by the
131.18Plumbing Board, showing fitness. Examination fees for both journeyman and master
131.19plumbers shall be $50 for each examination. Upon being notified of having successfully
131.20passed the examination for original license the applicant shall submit an application,
131.21with the license fee herein provided. The license fee for each initial ~~and renewal~~ master
131.22plumber's license shall be ~~$120~~ $240. The license fee for each initial ~~and renewal~~
131.23journeyman plumber's license shall be ~~$55~~ $110. ~~The commissioner may by rule prescribe~~
131.24~~for the expiration and renewal of licenses.~~
131.25(b) All initial master and journeyman plumber's licenses shall be effective for more
131.26than one calendar year and shall expire on December 31 of the year after the year in which
131.27the application is made. The license fee for each renewal master plumber's license shall be
131.28$120 for one year or $240 for two years. The license fee for each renewal journeyman
131.29plumber's license shall be $55 for one year or $110 for two years. The commissioner
131.30shall in a manner determined by the commissioner, without the need for any rulemaking
131.31under chapter 14, phase in the renewal of master and journeyman plumber's licenses from
131.32one year to two years. By June 30, 2011, all renewed master and journeyman plumber's
131.33licenses shall be two-year licenses.
131.34(c) Any licensee who does not renew a license within two years after the license
131.35expires is no longer eligible for renewal. Such an individual must retake and pass the
132.1examination before a new license will be issued. A journeyman or master plumber who
132.2submits a license renewal application after the time specified in rule but within two years
132.3after the license expired must pay all past due renewal fees plus a late fee of $25.

132.4    Sec. 7. Minnesota Statutes 2008, section 326B.56, subdivision 4, is amended to read:
132.5    Subd. 4. Fee. (a) The commissioner shall collect a $40 bond registration fee for
132.6one year or $80 for two years from each applicant for issuance or renewal of a water
132.7conditioning contractor or installer license who elects to proceed under subdivisions
132.81 and 2.
132.9(b) The commissioner shall in a manner determined by the commissioner, without
132.10the need for any rulemaking under chapter 14, phase in the bond registration from one year
132.11to two years so that the expiration of bond registration corresponds with the expiration of
132.12the license issued under section 326B.55.

132.13    Sec. 8. Minnesota Statutes 2008, section 326B.58, is amended to read:
132.14326B.58 FEES.
132.15    (a) Examination fees for both water conditioning contractors and water conditioning
132.16installers shall be $50 for each examination. Each initial water conditioning contractor
132.17and installer license shall be effective for more than one calendar year and shall expire on
132.18December 31 of the year ~~for which it was issued~~ after the year in which the application
132.19is made. The license fee for each initial water conditioning contractor's license shall be
132.20~~$70~~ $140, except that the license fee shall be ~~$35~~ $105 if the application is submitted
132.21during the last three months of the calendar year. The license fee for each renewal water
132.22conditioning contractor's license shall be $70 for one year or $140 for two years. The
132.23license fee for each initial water conditioning installer license shall be ~~$35~~ $70, except
132.24that the license fee shall be ~~$17.50~~ $52.50 if the application is submitted during the last
132.25three months of the calendar year. The license fee for each renewal water conditioning
132.26installer license shall be $35 for one year or $70 for two years.
132.27(b) The commissioner shall in a manner determined by the commissioner, without
132.28the need for any rulemaking under chapter 14, phase in the renewal of water conditioning
132.29contractor and installer licenses from one year to two years. By June 30, 2011, all renewed
132.30water conditioning contractor and installer licenses shall be two-year licenses. The
132.31commissioner may by rule prescribe for the expiration and renewal of licenses.
132.32(c) Any licensee who does not renew a license within two years after the license
132.33expires is no longer eligible for renewal. Such an individual must retake and pass the
132.34examination before a new license will be issued. A water conditioning contractor or water
132.35conditioning installer who submits a license renewal application after the time specified
133.1in rule but within two years after the license expired must pay all past due renewal fees
133.2plus a late fee of $25.

133.3    Sec. 9. Minnesota Statutes 2008, section 326B.815, subdivision 1, is amended to read:
133.4    Subdivision 1. Licensing fee. (a) The licensing fee for persons licensed pursuant
133.5to sections 326B.802 to 326B.885, except for manufactured home installers, is ~~$100 per~~
133.6~~year~~ $200 for a two-year period. The licensing fee for manufactured home installers under
133.7section 327B.041 is $300 for a three-year period.
133.8(b) All initial licenses, except for manufactured home installer licenses, shall be
133.9effective for two years and shall expire on March 31 of the year after the year in which the
133.10application is made. The license fee for each renewal of a residential contractor, residential
133.11remodeler, or residential roofer license shall be $100 for one year and $200 for two years.
133.12(c) The commissioner shall in a manner determined by the commissioner, without
133.13the need for any rulemaking under chapter 14, phase in the renewal of residential
133.14contractor, residential remodeler, and residential roofer licenses from one year to two
133.15years. By June 30, 2011, all renewed residential contractor, residential remodeler, and
133.16residential roofer licenses shall be two-year licenses.

133.17    Sec. 10. Minnesota Statutes 2008, section 326B.821, subdivision 2, is amended to read:
133.18    Subd. 2. Hours. A qualifying person of a licensee must provide proof of completion
133.19of ~~seven~~ 14 hours of continuing education per ~~year~~ two-year licensure period in the
133.20regulated industry in which the licensee is licensed.
133.21    Credit may not be earned if the licensee has previously obtained credit for the same
133.22course as either a student or instructor during the same licensing period.

133.23    Sec. 11. Minnesota Statutes 2008, section 326B.86, subdivision 1, is amended to read:
133.24    Subdivision 1. Bond. (a) Licensed manufactured home installers and licensed
133.25residential roofers must post a surety bond in the name of the licensee with the
133.26commissioner, conditioned that the applicant shall faithfully perform the duties and
133.27in all things comply with all laws, ordinances, and rules pertaining to the license or
133.28permit applied for and all contracts entered into. The ~~annual~~ bond must be continuous
133.29and maintained for so long as the licensee remains licensed. The aggregate liability of
133.30the surety on the bond to any and all persons, regardless of the number of claims made
133.31against the bond, may not exceed the amount of the bond. The bond may be canceled as
133.32to future liability by the surety upon 30 days' written notice mailed to the commissioner
133.33by regular mail.
133.34    (b) A licensed residential roofer must post a bond of at least $15,000.
134.1    (c) A licensed manufactured home installer must post a bond of at least $2,500.
134.2    Bonds issued under sections 326B.802 to 326B.885 are not state bonds or contracts
134.3for purposes of sections 8.05 and 16C.05, subdivision 2.

134.4    Sec. 12. Minnesota Statutes 2008, section 326B.885, subdivision 2, is amended to read:
134.5    Subd. 2. ~~Annual~~ Renewal period. ~~Any license issued or renewed after August~~
134.6~~1, 1993, must be renewed annually except for~~ (a) A residential contractor, residential
134.7remodeler, and residential roofer license shall have a renewal period of two years. The
134.8commissioner shall in a manner determined by the commissioner, without the need for any
134.9rulemaking under chapter 14, phase in the renewal of residential contractor, residential
134.10remodeler, and residential roofer licenses from one year to two years. By June 30, 2011,
134.11all renewed residential contractor, residential remodeler, and residential roofer licenses
134.12shall be two-year licenses.
134.13(b) A manufactured home installer's license ~~which~~ shall have a renewal period of
134.14three years, effective for all renewals and new licenses issued after December 31, 2008.

134.15    Sec. 13. Minnesota Statutes 2008, section 326B.89, subdivision 3, is amended to read:
134.16    Subd. 3. Fund fees. In addition to any other fees, a person who applies for or
134.17renews a license under sections 326B.802 to 326B.885 shall pay a fee to the fund. The
134.18person shall pay, in addition to the appropriate application or renewal fee, the following
134.19additional fee that shall be deposited in the fund. The amount of the fee shall be based on
134.20the person's gross annual receipts for the person's most recent fiscal year preceding the
134.21application or renewal, on the following scale:

`134.22`	Fee	Gross Annual Receipts
`134.23`	~~$160~~ $320	under $1,000,000
`134.24`	~~$210~~ $420	$1,000,000 to $5,000,000
`134.25`	~~$260~~ $520	over $5,000,000

134.26    Sec. 14. Minnesota Statutes 2008, section 326B.89, subdivision 16, is amended to read:
134.27    Subd. 16. Additional assessment. If the balance in the fund is at any time less
134.28than the commissioner determines is necessary to carry out the purposes of this section,
134.29every licensee, when renewing a license, shall pay, in addition to the annual renewal
134.30fee and the fee set forth in subdivision 3, an assessment not to exceed ~~$100~~ $200. The
134.31commissioner shall set the amount of assessment based on a reasonable determination
134.32of the amount that is necessary to restore a balance in the fund adequate to carry out the
134.33purposes of this section.

134.34    Sec. 15. Minnesota Statutes 2008, section 326B.94, subdivision 4, is amended to read:
135.1    Subd. 4. Examinations, licensing. The commissioner shall develop and administer
135.2an examination for all masters of boats carrying passengers for hire on the inland waters of
135.3the state as to their qualifications and fitness. If found qualified and competent to perform
135.4their duties as a master of a boat carrying passengers for hire, they shall be issued a license
135.5authorizing them to act as such on the inland waters of the state. ~~The license shall be~~
135.6~~renewed annually.~~ All initial master's licenses shall be for two years. The commissioner
135.7shall in a manner determined by the commissioner, without the need for any rulemaking
135.8under chapter 14, phase in the renewal of master's licenses from one year to two years.
135.9By June 30, 2011, all renewed master's licenses shall be two-year licenses. Fees for the
135.10original issue and renewal of the license authorized under this section shall be pursuant to
135.11section 326B.986, subdivision 2.

135.12    Sec. 16. Minnesota Statutes 2008, section 326B.972, is amended to read:
135.13326B.972 LICENSE REQUIREMENT.
135.14    (a) To operate a boiler, steam engine, or turbine an individual must have received a
135.15license for the grade covering that boiler, steam engine, or turbine. ~~The license must be~~
135.16~~renewed annually, except as provided~~ Except for licenses described in section 326B.956
135.17and except for provisional licenses described in paragraphs (d) to (g).:
135.18(1) all initial licenses shall be for two years;
135.19(2) the commissioner shall in a manner determined by the commissioner, without
135.20the need for any rulemaking under chapter 14, phase in the renewal of licenses from
135.21one year to two years; and
135.22(3) by June 30, 2011, all licenses shall be two-year licenses.
135.23    (b) For purposes of sections 326B.952 to 326B.998, "operation" does not include
135.24monitoring of an automatic boiler, either through on premises inspection of the boiler or
135.25by remote electronic surveillance, provided that no operations are performed upon the
135.26boiler other than emergency shut down in alarm situations.
135.27    (c) No individual under the influence of illegal drugs or alcohol may operate a boiler,
135.28steam engine, or turbine or monitor an automatic boiler.
135.29    (d) The commissioner may issue a provisional license to allow an employee of a
135.30high pressure boiler plant to operate boilers greater than 500 horsepower at only that
135.31boiler plant if:
135.32    (1) the boiler plant has a designated chief engineer in accordance with Minnesota
135.33Rules, part 5225.0410;
135.34    (2) the boiler plant employee holds a valid license as a second-class engineer,
135.35Grade A or B;
136.1    (3) the chief engineer in charge of the boiler plant submits an application to the
136.2commissioner on a form prescribed by the commissioner to elicit information on whether
136.3the requirements of this paragraph have been met;
136.4    (4) the chief engineer in charge of the boiler plant and an authorized representative
136.5of the owner of the boiler plant both sign the application for the provisional license;
136.6    (5) the owner of the boiler plant has a documented training program with examination
136.7for boilers and equipment at the boiler plant to train and test the boiler plant employee; and
136.8    (6) if the application were to be granted, the total number of provisional licenses
136.9for employees of the boiler plant would not exceed the total number of properly licensed
136.10first-class engineers and chief engineers responsible for the safe operation of the boilers
136.11at the boiler plant.
136.12    (e) A public utility, cooperative electric association, generation and transmission
136.13cooperative electric association, municipal power agency, or municipal electric utility
136.14that employs licensed boiler operators who are subject to an existing labor contract may
136.15use a provisional licensee as an operator only if using the provisional licensee does not
136.16violate the labor contract.
136.17    (f) Each provisional license expires 36 months after the date of issuance unless
136.18revoked less than 36 months after the date of issuance. A provisional license may not be
136.19renewed.
136.20    (g) The commissioner may issue no more than two provisional licenses to any
136.21individual within a four-year period.

136.22    Sec. 17. Minnesota Statutes 2008, section 326B.986, subdivision 2, is amended to read:
136.23    Subd. 2. Fee amounts; master's. The license and application fee for a an initial
136.24master's license is ~~$50~~ $70, or ~~$20~~ $40 if the applicant possesses a valid, unlimited, current
136.25United States Coast Guard master's license. The ~~annual~~ renewal of fee for a master's
136.26license is $20 for one year or $40 for two years. ~~The annual renewal~~ If the renewal fee is
136.27paid later than 30 days after expiration ~~is $35. The fee for replacement of a current, valid~~
136.28~~license is $20~~, then a late fee of $15 will be added to the renewal fee.

136.29    Sec. 18. Minnesota Statutes 2008, section 326B.986, subdivision 5, is amended to read:
136.30    Subd. 5. Boiler engineer license fees. (a) For the following licenses, the
136.31nonrefundable license and application fee is:
136.32(1) chief engineer's license, ~~$50~~ $70;
136.33(2) first class engineer's license, ~~$50~~ $70;
136.34(3) second class engineer's license, ~~$50~~ $70;
136.35(4) special engineer's license, ~~$20~~ $40;
137.1(5) traction or hobby boiler engineer's license, $50; and
137.2(6) provisional license, $50.
137.3    (b) An engineer's license, except a provisional license, may be renewed upon
137.4application and payment of ~~an annual~~ a renewal fee of $20 for one year or $40 for two
137.5years. ~~The annual renewal,~~ If the renewal fee is paid later than 30 days after expiration,
137.6~~is $35. The fee for replacement of a current, valid license is $20~~ then a late fee of $15
137.7will be added to the renewal fee.

137.8    Sec. 19. Minnesota Statutes 2008, section 326B.986, subdivision 8, is amended to read:
137.9    Subd. 8. Certificate of competency. The fee for issuance of the original state
137.10of Minnesota certificate of competency for inspectors is ~~$50. This fee is waived~~ $85
137.11for inspectors who did not pay the examination fee or $35 for inspectors who paid
137.12the examination fee. All initial certificates of competency shall be effective for more
137.13than one calendar year and shall expire on December 31 of the year after the year in
137.14which the application is made. The commissioner shall in a manner determined by the
137.15commissioner, without the need for any rulemaking under chapter 14, phase in the renewal
137.16of certificates of competency from one calendar year to two calendar years. By June 30,
137.172011, all renewed certificates of competency shall be valid for two calendar years. The fee
137.18for ~~an annual~~ renewal of the state of Minnesota certificate of competency is $35 for one
137.19year or $70 for two years, and is due ~~January 1 of each year. The fee for replacement of a~~
137.20~~current, valid license is $35~~ the day after the certificate expires.

137.21    Sec. 20. Minnesota Statutes 2008, section 327B.04, subdivision 7, is amended to read:
137.22    Subd. 7. ~~Fees;~~ Licenses; when granted. Each application for a license or license
137.23renewal must be accompanied by a fee in an amount established by ~~the commissioner by~~
137.24~~rule pursuant to section~~ ~~327B.10~~ subdivision 7a. The fees shall be set in an amount which
137.25over the fiscal biennium will produce revenues approximately equal to the expenses which
137.26the commissioner expects to incur during that fiscal biennium while administering and
137.27enforcing sections 327B.01 to 327B.12. The commissioner shall grant or deny a license
137.28application or a renewal application within 60 days of its filing. If the license is granted,
137.29the commissioner shall license the applicant as a dealer or manufacturer for the remainder
137.30of the ~~calendar year~~ licensure period. Upon application by the licensee, the commissioner
137.31shall renew the license for a two year period, if:
137.32    ~~(a)~~ (1) the renewal application satisfies the requirements of subdivisions 3 and 4;
137.33    ~~(b)~~ (2) the renewal applicant has made all listings, registrations, notices and reports
137.34required by the commissioner during the preceding ~~year~~ licensure period; and
138.1    ~~(c)~~ (3) the renewal applicant has paid all fees owed pursuant to sections 327B.01 to
138.2327B.12 and all taxes, arrearages, and penalties owed to the state.

138.3    Sec. 21. Minnesota Statutes 2008, section 327B.04, is amended by adding a
138.4subdivision to read:
138.5    Subd. 7a. Fees. (a) Fees for licenses issued pursuant to this section are as follows:
138.6(1) initial dealer license for principal location, $400. Fee is not refundable;
138.7(2) initial dealer license for subagency location, $80;
138.8(3) dealer license biennial renewal, principal location, $400; dealer subagency
138.9location biennial renewal, $160. Subagency license renewal must coincide with the
138.10principal license date;
138.11(4) initial limited dealer license, $200;
138.12(5) change of bonding company, $10;
138.13(6) reinstatement of bond after cancellation notice has been received, $10;
138.14(7) checks returned without payment, $15; and
138.15(8) change of address, $10.
138.16(b) All initial limited dealer licenses shall be effective for more than one calendar
138.17year and shall expire on December 31 of the year after the year in which the application
138.18is made.
138.19(c) The license fee for each renewed limited dealer license shall be $100 for one
138.20year and $200 for two years. The commissioner shall in a manner determined by the
138.21commissioner, without the need for any rulemaking under chapter 14, phase in the renewal
138.22of limited dealer licenses from one year to two years. By June 30, 2011, all renewed
138.23limited dealer licenses shall be two-year licenses.
138.24(d) All fees are not refundable.

138.25    Sec. 22. Minnesota Statutes 2008, section 327B.04, subdivision 8, is amended to read:
138.26    Subd. 8. Limited dealer's license. The commissioner shall issue a limited dealer's
138.27license to an owner of a manufactured home park authorizing the licensee as principal
138.28only to engage in the sale, offering for sale, soliciting, or advertising the sale of used
138.29manufactured homes located in the owned manufactured home park. The licensee must
138.30be the title holder of the homes and may engage in no more than ten sales ~~annually~~
138.31during each year of the two-year licensure period. An owner may, upon payment of the
138.32applicable fee and compliance with this subdivision, obtain a separate license for each
138.33owned manufactured home park and is entitled to sell up to ~~ten~~ 20 homes per license
138.34period provided that only one limited dealer license may be issued for each park. The
138.35license shall be issued after:
139.1    (1) receipt of an application on forms provided by the commissioner containing
139.2the following information:
139.3    (i) the identity of the applicant;
139.4    (ii) the name under which the applicant will be licensed and do business in this state;
139.5    (iii) the name and address of the owned manufactured home park, including a copy
139.6of the park license, serving as the basis for the issuance of the license;
139.7    (iv) the name, home, and business address of the applicant;
139.8    (v) the name, address, and telephone number of one individual that is designated
139.9by the applicant to receive all communications and cooperate with all inspections and
139.10investigations of the commissioner pertaining to the sale of manufactured homes in the
139.11manufactured home park owned by the applicant;
139.12    (vi) whether the applicant or its designated individual has been convicted of a crime
139.13within the previous ten years that is either related directly to the business for which the
139.14license is sought or involved fraud, misrepresentation or misuse of funds, or has suffered a
139.15judgment in a civil action involving fraud, misrepresentation, or conversion within the
139.16previous five years or has had any government license or permit suspended or revoked
139.17as a result of an action brought by a federal or state governmental agency in this or any
139.18other state within the last five years; and
139.19    (vii) the applicant's qualifications and business history, including whether the
139.20applicant or its designated individual has ever been adjudged bankrupt or insolvent, or has
139.21any unsatisfied court judgments outstanding against it or them;
139.22    (2) payment of ~~a $100 annual~~ the license fee established by subdivision 7a; and
139.23    (3) provision of a surety bond in the amount of $5,000. A separate surety bond
139.24must be provided for each limited license.
139.25    The applicant need not comply with section 327B.04, subdivision 4, paragraph (e).
139.26The holding of a limited dealer's license does not satisfy the requirement contained in
139.27section 327B.04, subdivision 4, paragraph (e), for the licensee or salespersons with respect
139.28to obtaining a dealer license. The commissioner may, upon application for a renewal of
139.29a license, require only a verification that copies of sales documents have been retained
139.30and payment of ~~a $100~~ the renewal fee established by subdivision 7a. "Sales documents"
139.31mean only the safety feature disclosure form defined in section 327C.07, subdivision 3a,
139.32title of the home, financing agreements, and purchase agreements.
139.33    The license holder shall, upon request of the commissioner, make available for
139.34inspection during business hours sales documents required to be retained under this
139.35subdivision.

139.36    Sec. 23. REPEALER.
140.1Minnesota Rules, part 1350.8300, is repealed.

140.2ARTICLE 9

140.3MISCELLANEOUS

140.4    Section 1. Minnesota Statutes 2008, section 85.0146, subdivision 1, is amended to read:
140.5    Subdivision 1. Advisory council created. The Cuyuna Country State Recreation
140.6Area Citizens Advisory Council is established. Notwithstanding section 15.059, the
140.7council does not expire. Membership on the advisory council shall include:
140.8    (1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers
140.9Board;
140.10    (2) a representative of the Croft Mine Historical Park Joint Powers Board;
140.11    (3) a designee of the Cuyuna Range Mineland Reclamation Committee who has
140.12worked as a miner in the local area;
140.13    (4) a representative of the Crow Wing County Board;
140.14    (5) an elected state official;
140.15    (6) a representative of the Grand Rapids regional office of the Department of Natural
140.16Resources;
140.17    (7) a designee of the Iron Range Resources and Rehabilitation Board;
140.18    (8) a designee of the local business community selected by the area chambers of
140.19commerce;
140.20    (9) a designee of the local environmental community selected by the Crow Wing
140.21County District 5 commissioner;
140.22    (10) a designee of a local education organization selected by the Crosby-Ironton
140.23School Board;
140.24    (11) a designee of one of the recreation area user groups selected by the Cuyuna
140.25Range Chamber of Commerce; and
140.26    (12) a member of the Cuyuna Country Heritage Preservation Society.

140.27    Sec. 2. Minnesota Statutes 2008, section 89A.08, is amended to read:
140.2889A.08 RESEARCH ADVISORY COMMITTEE.
140.29    Subdivision 1. Establishment. The council shall appoint a Forest Resources
140.30Research Advisory Committee. Notwithstanding section 15.059, the council does not
140.31expire. The committee must consist of representatives of:
140.32(1) the College of Natural Resources, University of Minnesota;
140.33(2) the Natural Resources Research Institute, University of Minnesota;
140.34(3) the department;
141.1(4) the North Central Forest Experiment Station, United States Forest Service; and
141.2(5) other organizations as deemed appropriate by the council.
141.3    Subd. 2. Purpose. The purpose of the advisory committee is to foster the
141.4identification and undertaking of priority forest resources research activities by
141.5encouraging:
141.6(1) collaboration between organizations with responsibilities for conducting forest
141.7resources research;
141.8(2) linkages between researchers in different disciplines in conducting forest
141.9resources research; and
141.10(3) interaction and communication between researchers and practitioners in the
141.11development and use of forest resources research.
141.12    Subd. 3. Research assessment. The advisory committee shall periodically
141.13undertake an assessment of strategic directions in forest resources research. The
141.14assessment must be based on input provided by administrators, researchers, practitioners,
141.15and the general public, and include:
141.16(1) an assessment of the current status of forestry resources research in the state;
141.17(2) an identification of important forest resource issues in need of research;
141.18(3) an identification of priority forest research activities whose results will enable
141.19a better understanding of site-level and landscape-level impacts resulting from timber
141.20harvesting and forest management activities; and
141.21(4) an assessment of the progress toward addressing the priority forest resources
141.22research needs identified.
141.23The forest resources research assessment must be made widely available to the
141.24research community, forest managers and users, and the public.
141.25    Subd. 4. Research delivery. Based on the priority forest resources research
141.26activities identified in subdivision 3, the advisory committee shall promote these research
141.27needs and the dissemination of findings to the research community, forest managers and
141.28users, and the public.
141.29    Subd. 5. Research and practitioner linkages. The advisory committee shall
141.30periodically facilitate forums to increase communications between the individuals and
141.31organizations conducting forest resources research and the users of the research.
141.32    Subd. 6. Report. The advisory committee shall report to the council its
141.33accomplishments in fulfilling the responsibilities identified in this section.

141.34    Sec. 3. [90.43] DUTY TO MAINTAIN WOOD PRODUCTS FACILITY.
142.1The owner or operator of a wood products facility shall maintain the facility in
142.2salable operating condition for at least two years after it permanently discontinues
142.3operation of the facility to ensure that public and utility investments in the facility are
142.4protected and that the facility's tax and other obligations to state and local governments
142.5and other residents of Minnesota created by contract or otherwise are satisfied. These
142.6obligations include, in addition to any other obligations, any obligation created by "the
142.7relief payment for timber sale permits" program created by Laws 2007, chapter 57, article
142.81, section 158. Specifically, and in addition to other obligations on an owner or operator,
142.9this section prohibits the permanent removal from the facility of equipment necessary for
142.10the facility's operation during the two-year period. The requirements of this section are
142.11enforceable on all owners and operators and successors of owners and operators and shall
142.12be enforced by the state in any action brought by the state or others, including actions in
142.13bankruptcy. The attorney general shall bring action to prevent a violation or threatened
142.14violation of this section. For the purpose of this section, "wood products facility" means a
142.15lumber or other company facility that employed more than 100 employees at the facility
142.16at any time in the five-year period immediately prior to discontinuing operations, had
142.17permits to harvest timber used in that operation, and manufactured products derived
142.18from wood at the facility.
142.19EFFECTIVE DATE.This section is effective the day following final enactment
142.20and applies retroactively to the discontinuance of operation occurring on or after January
142.211, 2008.

142.22    Sec. 4. Minnesota Statutes 2008, section 154.44, subdivision 1, is amended to read:
142.23    Subdivision 1. Schedule. The fee schedule for licensees is as follows:
142.24(a) Three-year license fees:
142.25(1) cosmetologist, manicurist, esthetician, $90 for each initial license, and $60 for
142.26each renewal;
142.27(2) instructor, manager, $120 for each initial license, and $90 for each renewal;
142.28(3) salon, $130 for each initial license, and $100 for each renewal; and
142.29(4) school, $1,500.
142.30(b) Penalties:
142.31(1) reinspection fee, variable; ~~and~~
142.32(2) manager with lapsed practitioner, $25;
142.33(3) expired cosmetologist, manicurist, esthetician, manager, school manager, and
142.34instructor license, $45; and
142.35(4) expired salon or school license, $50.
143.1(c) Administrative fees:
143.2(1) certificate of identification, $20; ~~and~~
143.3(2) school original application, $150;
143.4(3) name change, $20;
143.5(4) letter of license verification, $30;
143.6(5) duplicate license, $20; and
143.7(6) processing fee, $10.
143.8(d) All fees established in this subdivision must be paid to the executive secretary
143.9of the board. The executive secretary of the board shall deposit the fees in the general
143.10fund in the state treasury.

143.11    Sec. 5. Minnesota Statutes 2008, section 178.02, subdivision 2, is amended to read:
143.12    Subd. 2. Terms. The board shall not expire. ~~and~~ The terms, compensation, and
143.13removal of appointed members shall be as provided in section 15.059.

143.14    Sec. 6. Minnesota Statutes 2008, section 182.656, subdivision 3, is amended to read:
143.15    Subd. 3. Meetings~~; expiration of council~~. A majority of the council members
143.16constitutes a quorum. The council shall meet at the call of its chair, or upon request of any
143.17six members. A tape recording of the meeting with the tape being retained for a one-year
143.18period will be available upon the request and payment of costs to any interested party. The
143.19council shall expire and the terms, compensation, and removal of members shall be as
143.20provided in section 15.059, except that the council shall not expire ~~before June 30, 2003~~.

143.21    Sec. 7. Minnesota Statutes 2008, section 216B.1612, subdivision 2, is amended to read:
143.22    Subd. 2. Definitions. (a) The terms used in this section have the meanings given
143.23them in this subdivision.
143.24    (b) "C-BED tariff" or "tariff" means a community-based energy development tariff.
143.25    (c) "Qualifying owner" means:
143.26    (1) a Minnesota resident;
143.27    (2) a limited liability company that is organized under chapter 322B and that is made
143.28up of members who are Minnesota residents;
143.29    (3) a Minnesota nonprofit organization organized under chapter 317A;
143.30    (4) a Minnesota cooperative association organized under chapter 308A or 308B,
143.31including a rural electric cooperative association or a generation and transmission
143.32cooperative on behalf of and at the request of a member distribution utility;
143.33    (5) a Minnesota political subdivision or local government including, but not limited
143.34to, a municipal electric utility, or a municipal power agency on behalf of and at the request
144.1of a member distribution utility, the office of the commissioner of Iron Range resources
144.2and rehabilitation, a county, statutory or home rule charter city, town, school district, or
144.3public or private higher education institution or any other local or regional governmental
144.4organization such as a board, commission, or association; or
144.5    (6) a tribal council.
144.6    (d) "Net present value rate" means a rate equal to the net present value of the
144.7nominal payments to a project divided by the total expected energy production of the
144.8project over the life of its power purchase agreement.
144.9    (e) "Standard reliability criteria" means:
144.10    (1) can be safely integrated into and operated within the utility's grid without causing
144.11any adverse or unsafe consequences; and
144.12    (2) is consistent with the utility's resource needs as identified in its most recent
144.13resource plan submitted under section 216B.2422.
144.14    (f) "Renewable" refers to a technology listed in section 216B.1691, subdivision 1,
144.15paragraph (a).
144.16    (g) "Community-based energy development project" or "C-BED project" means a
144.17new renewable energy project that either as a stand-alone project or part of a partnership
144.18under subdivision 8:
144.19    (1) has no single qualifying owner owning more than 15 percent of a C-BED wind
144.20energy project unless: (i) the C-BED wind energy project consists of only one or two
144.21turbines; or (ii) the qualifying owner is a public entity listed under paragraph (c), clause
144.22(5), that is not a municipal utility;
144.23    (2) demonstrates that at least 51 percent of the gross revenues from a power
144.24purchase agreement over the life of the project will flow to qualifying owners and other
144.25local entities; and
144.26    (3) has a resolution of support adopted by the county board of each county in which
144.27the project is to be located, or in the case of a project located within the boundaries of a
144.28reservation, the tribal council for that reservation.
144.29EFFECTIVE DATE.This section is effective the day following final enactment.

144.30    Sec. 8. Minnesota Statutes 2008, section 298.2213, subdivision 5, is amended to read:
144.31    Subd. 5. Advisory committees. Before submission to the board of a proposal for a
144.32project for expenditure of money appropriated under this section, the commissioner of Iron
144.33Range resources and rehabilitation shall appoint a technical advisory committee consisting
144.34of at least seven persons who are knowledgeable in areas related to the objectives of
144.35the proposal. If the project involves investment in a scientific research proposal, at
145.1least four of the committee members must be knowledgeable in the specific scientific
145.2research area relating to the project. Members of the committees must be compensated as
145.3provided in section 15.059, subdivision 3. The board shall not act on a proposal until it
145.4has received the evaluation and recommendations of the technical advisory committee.
145.5Notwithstanding section 15.059, the committees do not expire.

145.6    Sec. 9. Minnesota Statutes 2008, section 298.2214, subdivision 1, is amended to read:
145.7    Subdivision 1. Creation of committee; purpose. A committee is created to
145.8advise the commissioner of Iron Range resources and rehabilitation on providing higher
145.9education programs in the taconite assistance area defined in section 273.1341. The
145.10committee is subject to section 15.059 but does not expire.

145.11    Sec. 10. Minnesota Statutes 2008, section 298.297, is amended to read:
145.12298.297 ADVISORY COMMITTEES.
145.13Before submission of a project to the board, the commissioner of Iron Range
145.14resources and rehabilitation shall appoint a technical advisory committee consisting of
145.15one or more persons who are knowledgeable in areas related to the objectives of the
145.16proposal. Members of the committees shall be compensated as provided in section 15.059,
145.17subdivision 3 . The board shall not act on a proposal until it has received the evaluation
145.18and recommendations of the technical advisory committee or until 15 days have elapsed
145.19since the proposal was transmitted to the advisory committee, whichever occurs first.
145.20Notwithstanding section 15.059, the committees do not expire.

145.21    Sec. 11. Laws 2007, chapter 135, article 1, section 16, is amended to read:

145.22

Sec. 16. TRANSFERS

145.23~~The commissioner of labor and industry shall~~
145.24~~transfer $1,627,000 by June 30, 2008, and~~
145.25~~$1,515,000 by June 30, 2009, and each year~~
145.26~~thereafter, from the construction code fund to~~
145.27~~the general fund.~~
145.28Of the balance remaining in Laws 2005, First
145.29Special Session chapter 1, article 3, section
145.302, subdivision 2, for the methamphetamine
145.31laboratory cleanup revolving loan fund,
145.32$100,000 is for transfer to the small
145.33community wastewater treatment account
146.1established in Minnesota Statutes, section
146.2446A.075, subdivision 1 .

146.3ARTICLE 10

146.4IRON RANGE RESOURCES

146.5    Section 1. Minnesota Statutes 2008, section 116J.424, is amended to read:
146.6116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD
146.7CONTRIBUTION.
146.8The commissioner of the Iron Range Resources and Rehabilitation Board with
146.9approval ~~of the board~~ by at least seven Iron Range Resources and Rehabilitation Board
146.10members, shall provide an equal match for any loan or equity investment made for a
146.11facility located in the tax relief area defined in section 273.134, paragraph (b), by the
146.12Minnesota minerals 21st century fund created by section 116J.423. The match may be
146.13in the form of a loan or equity investment, notwithstanding whether the fund makes a
146.14loan or equity investment. The state shall not acquire an equity interest because of an
146.15equity investment or loan by the board and the board at its sole discretion shall decide
146.16what interest it acquires in a project. The commissioner of employment and economic
146.17development may require a commitment from the board to make the match prior to
146.18disbursing money from the fund.

146.19    Sec. 2. [298.217] IRON RANGE RESOURCES AND REHABILITATION;
146.20EARLY SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
146.21(a) Notwithstanding any law to the contrary, the commissioner of iron range
146.22resources and rehabilitation, in consultation with the commissioner of employee
146.23relations, may offer a targeted early separation incentive program for employees of the
146.24commissioner who have attained the age of 60 years or who have received credit for at
146.25least 30 years of allowable service under the provisions of chapter 352.
146.26(b) The early separation incentive program may include one or more of the following:
146.27(1) employer-paid postseparation health, medical, and dental insurance until age
146.2865; and
146.29(2) cash incentives that may, but are not required to be, used to purchase additional
146.30years of service credit through the Minnesota State Retirement System, to the extent that
146.31the purchases are otherwise authorized by law.
146.32(c) The commissioner of iron range resources and rehabilitation shall establish
146.33eligibility requirements for employees to receive an incentive.
146.34(d) The commissioner of iron range resources and rehabilitation, consistent with the
146.35established program provisions under paragraph (b), and with the eligibility requirements
147.1under paragraph (c), may designate specific programs or employees as eligible to be
147.2offered the incentive program.
147.3(e) Acceptance of the offered incentive must be voluntary on the part of the
147.4employee and must be in writing. The incentive may only be offered at the sole discretion
147.5of the commissioner of iron range resources and rehabilitation.
147.6(f) The cost of the incentive is payable solely by funds made available to the
147.7commissioner of iron range resources and rehabilitation by law, but only on prior approval
147.8of the expenditures by a majority of the Iron Range Resources and Rehabilitation Board.
147.9(g) This section and section 298.218 are repealed June 30, 2011.

147.10    Sec. 3. [298.218] APPLICATION OF OTHER LAWS.
147.11Unilateral implementation of section 298.217 by the commissioner of iron range
147.12resources and rehabilitation is not an unfair labor practice under chapter 179A.

147.13    Sec. 4. Minnesota Statutes 2008, section 298.22, subdivision 2, is amended to read:
147.14    Subd. 2. Iron Range Resources and Rehabilitation Board. There is hereby
147.15created the Iron Range Resources and Rehabilitation Board, consisting of 13 members,
147.16five of whom are state senators appointed by the Subcommittee on Committees of the
147.17Rules Committee of the senate, and five of whom are representatives, appointed by the
147.18speaker of the house. The remaining members shall be appointed one each by the senate
147.19majority leader, the speaker of the house, and the governor and must be nonlegislators
147.20who reside in a taconite assistance area as defined in section 273.1341. The members shall
147.21be appointed in January of every odd-numbered year, except that the initial nonlegislator
147.22members shall be appointed by July 1, 1999, and shall serve until January of the next
147.23odd-numbered year. Vacancies on the board shall be filled in the same manner as the
147.24original members were chosen. At least a majority of the legislative members of the board
147.25shall be elected from state senatorial or legislative districts in which over 50 percent
147.26of the residents reside within a taconite assistance area as defined in section 273.1341.
147.27All expenditures and projects made by the commissioner of Iron Range resources and
147.28rehabilitation shall be consistent with the priorities established in subdivision 8 and shall
147.29first be submitted to the Iron Range Resources and Rehabilitation Board for approval of
147.30expenditures and projects for rehabilitation purposes as provided by this section, and
147.31the method, manner, and time of payment of all funds proposed to be disbursed, by a
147.32~~majority of the board of expenditures and projects for rehabilitation purposes as provided~~
147.33~~by this section, and the method, manner, and time of payment of all funds proposed to be~~
147.34~~disbursed shall be first approved or disapproved by the board~~ at least seven Iron Range
147.35Resources and Rehabilitation Board members. The board shall biennially make its report
148.1to the governor and the legislature on or before November 15 of each even-numbered
148.2year. The expenses of the board shall be paid by the state from the funds raised pursuant to
148.3this section. Members of the board who are legislators may be reimbursed for expenses
148.4in the manner provided in sections 3.099, subdivision 1, and 3.101, and may receive per
148.5diem payments during the interims between legislative sessions in the manner provided
148.6in section 3.099, subdivision 1. Members of the board who are not legislators may
148.7receive per diem payments and be reimbursed for expenses at the lowest rate provided
148.8for legislative members.
148.9EFFECTIVE DATE.This section is effective the day following final enactment.

148.10    Sec. 5. Minnesota Statutes 2008, section 298.22, subdivision 5a, is amended to read:
148.11    Subd. 5a. Forest trust. The commissioner, upon the affirmative vote ~~of a majority~~
148.12~~of the members of the board,~~ of at least seven Iron Range Resources and Rehabilitation
148.13Board members, may purchase forest lands in the taconite assistance area defined in under
148.14section 273.1341 with funds specifically authorized for the purchase. The acquired forest
148.15lands must be held in trust for the benefit of the citizens of the taconite assistance area
148.16as the Iron Range Miners' Memorial Forest. The forest trust lands shall be managed and
148.17developed for recreation and economic development purposes. The commissioner, upon
148.18the affirmative vote ~~of a majority of the members of the board,~~ of at least seven Iron Range
148.19Resources and Rehabilitation Board members, may sell forest lands purchased under this
148.20subdivision if the board finds that the sale advances the purposes of the trust. Proceeds
148.21derived from the management or sale of the lands and from the sale of timber or removal
148.22of gravel or other minerals from these forest lands shall be deposited into an Iron Range
148.23Miners' Memorial Forest account that is established within the state financial accounts.
148.24Funds may be expended from the account upon approval ~~of a majority of the members~~
148.25~~of the board~~ by at least seven Iron Range Resources and Rehabilitation Board members,
148.26to purchase, manage, administer, convey interests in, and improve the forest lands. By
148.27~~majority~~ an affirmative vote ~~of the members of the board,~~ of at least seven Iron Range
148.28Resources and Rehabilitation Board members, money in the Iron Range Miners' Memorial
148.29Forest account may be transferred into the corpus of the Douglas J. Johnson economic
148.30protection trust fund established under sections 298.291 to 298.294. The property acquired
148.31under the authority granted by this subdivision and income derived from the property or
148.32the operation or management of the property are exempt from taxation by the state or its
148.33political subdivisions while held by the forest trust.

148.34    Sec. 6. Minnesota Statutes 2008, section 298.22, subdivision 6, is amended to read:
149.1    Subd. 6. Private entity participation. The board may acquire an equity interest in
149.2any project for which it provides funding. The commissioner may establish, participate in
149.3the management of, and dispose of the assets of charitable foundations, nonprofit limited
149.4liability companies, and nonprofit corporations associated with any project for which it
149.5provides funding, including specifically, but without limitation, a corporation within the
149.6meaning of section 317A.011, subdivision 6.

149.7    Sec. 7. Minnesota Statutes 2008, section 298.22, subdivision 7, is amended to read:
149.8    Subd. 7. Project area development authority. (a) In addition to the other powers
149.9granted in this section and other law and notwithstanding any limitations contained in
149.10subdivision 5, the commissioner, for purposes of fostering economic development and
149.11tourism within the Giants Ridge Recreation Area or the Ironworld Discovery Center area,
149.12may spend any money made available to the agency under section 298.28 to acquire real
149.13or personal property or interests therein by gift, purchase, or lease and may convey by
149.14lease, sale, or other means of conveyance or commitment any or all property interests
149.15owned or administered by the commissioner within such areas.
149.16(b) In furtherance of development of the Giants Ridge Recreation Area or the
149.17Ironworld Discovery Center area, the commissioner may establish and participate in
149.18charitable foundations, nonprofit limited liability companies, and nonprofit corporations,
149.19including a corporation within the meaning of section 317A.011, subdivision 6.
149.20(c) The term "Giants Ridge recreation area" refers to an economic development
149.21project area established by the commissioner in furtherance of the powers delegated in this
149.22section within St. Louis County in the ~~western~~ following portions of the town of White and
149.23in the ~~eastern portion of the westerly, adjacent, unorganized township.~~ City of Biwabik:
149.24Township 59, North, Range 15 West. Sections 7,8, 17-20 and 29-32;
149.25Township 59 North, Range 16 West, Sections 12,13, 24, 25, and 36;
149.26Township 58 North, Range 16 West, Section 1; and
149.27Township 58 North, Range 15 West, Sections 5 and 6.
149.28(d) The term "Ironworld Discovery Center area" refers to an economic development
149.29and tourism promotion project area established by the commissioner in furtherance
149.30of the powers delegated in this section within St. Louis County in the south portion of
149.31the town of Balkan.

149.32    Sec. 8. Minnesota Statutes 2008, section 298.22, subdivision 8, is amended to read:
149.33    Subd. 8. Spending priority. In making or approving any expenditures on programs
149.34or projects, the commissioner and the board shall give the highest priority to programs
149.35and projects that target relief to those areas of the taconite assistance area as defined in
150.1section 273.1341, that have the largest percentages of job losses and population losses
150.2directly attributable to the economic downturn in the taconite industry since the 1980s.
150.3The commissioner and the board shall compare the 1980 population and employment
150.4figures with the 2000 population and employment figures, and shall specifically consider
150.5the job losses in 2000 and 2001 resulting from the closure of LTV Steel Mining Company,
150.6in making or approving expenditures consistent with this subdivision, as well as the areas
150.7of residence of persons who suffered job loss for which relief is to be targeted under this
150.8subdivision. The commissioner may lease, for a term not exceeding 50 years and upon
150.9the terms determined by the commissioner and approved by ~~the board~~ at least seven Iron
150.10Range Resources and Rehabilitation Board members, surface and mineral interests owned
150.11or acquired by the state of Minnesota acting by and through the office of the commissioner
150.12of Iron Range resources and rehabilitation within those portions of the taconite assistance
150.13area affected by the closure of the LTV Steel Mining Company facility near Hoyt Lakes.
150.14The payments and royalties from these leases must be deposited into the fund established
150.15in section 298.292. This subdivision supersedes any other conflicting provisions of law
150.16and does not preclude the commissioner and the board from making expenditures for
150.17programs and projects in other areas.
150.18EFFECTIVE DATE.This section is effective the day following final enactment.

150.19    Sec. 9. Minnesota Statutes 2008, section 298.22, subdivision 10, is amended to read:
150.20    Subd. 10. Sale or privatization of functions. The commissioner of Iron Range
150.21resources and rehabilitation may not sell or privatize the Ironworld Discovery Center or
150.22Giants Ridge Golf and Ski Resort without prior approval by ~~a majority vote of the board~~ at
150.23least seven Iron Range Resources and Rehabilitation Board members.
150.24EFFECTIVE DATE.This section is effective the day following final enactment.

150.25    Sec. 10. Minnesota Statutes 2008, section 298.22, subdivision 11, is amended to read:
150.26    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation
150.27shall annually prepare a budget for operational expenditures, programs, and projects, and
150.28submit it to the Iron Range Resources and Rehabilitation Board and the governor ~~for~~
150.29~~approval~~. After the budget is approved by ~~the board~~ at least seven Iron Range Resources
150.30and Rehabilitation Board members and the governor, the commissioner may spend money
150.31in accordance with the approved budget.
150.32EFFECTIVE DATE.This section is effective the day following final enactment.

150.33    Sec. 11. Minnesota Statutes 2008, section 298.221, is amended to read:
151.1298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
151.2(a) Except as provided in paragraph (c), all money paid to the state of Minnesota
151.3pursuant to the terms of any contract entered into by the state under authority of section
151.4298.22 and any fees which may, in the discretion of the commissioner of Iron Range
151.5resources and rehabilitation, be charged in connection with any project pursuant to that
151.6section as amended, shall be deposited in the state treasury to the credit of the Iron Range
151.7Resources and Rehabilitation Board account in the special revenue fund and are hereby
151.8appropriated for the purposes of section 298.22.
151.9(b) Notwithstanding section 16A.013, merchandise may be accepted by the
151.10commissioner of the Iron Range Resources and Rehabilitation Board for payment of
151.11advertising contracts if the commissioner determines that the merchandise can be used
151.12for special event prizes or mementos at facilities operated by the board. Nothing in this
151.13paragraph authorizes the commissioner or a member of the board to receive merchandise
151.14for personal use.
151.15(c) All fees charged by the commissioner in connection with public use of the
151.16state-owned ski and golf facilities at the Giants Ridge Recreation Area and all other
151.17revenues derived by the commissioner from the operation or lease of those facilities
151.18and from the lease, sale, or other disposition of undeveloped lands at the Giants Ridge
151.19Recreation Area must be deposited into an Iron Range Resources and Rehabilitation
151.20Board account that is created within the state enterprise fund. All funds deposited in the
151.21enterprise fund account are appropriated to the commissioner to be expended, subject
151.22to approval ~~of a majority of the board,~~ by at least seven Iron Range Resources and
151.23Rehabilitation Board members, as follows:
151.24(1) to pay costs associated with the construction, equipping, operation, repair, or
151.25improvement of the Giants Ridge Recreation Area facilities or lands;
151.26(2) to pay principal, interest and associated bond issuance, reserve, and servicing
151.27costs associated with the financing of the facilities; and
151.28(3) to pay the costs of any other project authorized under section 298.22.
151.29EFFECTIVE DATE.This section is effective the day following final enactment.

151.30    Sec. 12. Minnesota Statutes 2008, section 298.2211, subdivision 3, is amended to read:
151.31    Subd. 3. Project approval. All projects authorized by this section shall be
151.32submitted by the commissioner to the Iron Range Resources and Rehabilitation Board,
151.33~~which shall recommend approval or disapproval or modification of the projects~~ for
151.34approval by at least seven Iron Range Resources and Rehabilitation Board members.
151.35Prior to the commencement of a project involving the exercise by the commissioner of
152.1any authority of sections 469.174 to 469.179, the governing body of each municipality in
152.2which any part of the project is located and the county board of any county containing
152.3portions of the project not located in an incorporated area shall by majority vote approve
152.4or disapprove the project. Any project~~, as so~~ approved by ~~the board~~ at least seven Iron
152.5Range Resources and Rehabilitation Board members and the applicable governing bodies,
152.6if any, together with detailed information concerning the project, its costs, the sources of
152.7its funding, and the amount of any bonded indebtedness to be incurred in connection
152.8with the project, shall be transmitted to the governor, who shall approve, disapprove, or
152.9return the proposal for additional consideration within 30 days of receipt. No project
152.10authorized under this section shall be undertaken, and no obligations shall be issued and
152.11no tax increments shall be expended for a project authorized under this section until the
152.12project has been approved by the governor.
152.13EFFECTIVE DATE.This section is effective the day following final enactment.

152.14    Sec. 13. Minnesota Statutes 2008, section 298.2213, subdivision 4, is amended to read:
152.15    Subd. 4. Project approval. The board and commissioner shall by August 1 each
152.16year prepare a list of projects to be funded from the money appropriated in this section
152.17with necessary supporting information including descriptions of the projects, plans, and
152.18cost estimates. A project must not be approved by the board unless it finds that:
152.19(1) the project will materially assist, directly or indirectly, the creation of additional
152.20long-term employment opportunities;
152.21(2) the prospective benefits of the expenditure exceed the anticipated costs; and
152.22(3) in the case of assistance to private enterprise, the project will serve a sound
152.23business purpose.
152.24 Each project must be approved by ~~a majority of the~~ at least seven Iron Range
152.25Resources and Rehabilitation Board members and the commissioner of Iron Range
152.26resources and rehabilitation. The list of projects must be submitted to the governor,
152.27who shall, by November 15 of each year, approve, disapprove, or return for further
152.28consideration, each project. The money for a project may be spent only upon approval of
152.29the project by the governor. The board may submit supplemental projects for approval at
152.30any time.
152.31EFFECTIVE DATE.This section is effective the day following final enactment.

152.32    Sec. 14. Minnesota Statutes 2008, section 298.2214, is amended by adding a
152.33subdivision to read:
153.1    Subd. 6. Per diem. Members of the committee may be reimbursed for expenses
153.2in the manner provided in section 298.22, subdivision 2.
153.3EFFECTIVE DATE.This section is effective the day following final enactment.

153.4    Sec. 15. Minnesota Statutes 2008, section 298.223, is amended to read:
153.5298.223 TACONITE AREA ENVIRONMENTAL PROTECTION FUND.
153.6    Subdivision 1. Creation; purposes. A fund called the taconite environmental
153.7protection fund is created for the purpose of reclaiming, restoring and enhancing those
153.8areas of northeast Minnesota located within the taconite assistance area defined in section
153.9273.1341 , that are adversely affected by the environmentally damaging operations
153.10involved in mining taconite and iron ore and producing iron ore concentrate and for the
153.11purpose of promoting the economic development of northeast Minnesota. The taconite
153.12environmental protection fund shall be used for the following purposes:
153.13(a) to initiate investigations into matters the Iron Range Resources and Rehabilitation
153.14Board determines are in need of study and which will determine the environmental
153.15problems requiring remedial action;
153.16(b) reclamation, restoration, or reforestation of mine lands not otherwise provided
153.17for by state law;
153.18(c) local economic development projects but only if those projects are approved
153.19by ~~the board,~~ at least seven Iron Range Resources and Rehabilitation Board members,
153.20and public works, including construction of sewer and water systems located within the
153.21taconite assistance area defined in section 273.1341;
153.22(d) monitoring of mineral industry related health problems among mining
153.23employees.;
153.24(e) local public works projects under section 298.227, paragraph (c); and
153.25(f) local public works projects as provided under this paragraph. The following
153.26amounts shall be distributed in 2009:
153.27(1) .4651 cents per ton to the city of Aurora for street repair and renovation;
153.28(2) .4264 cent per ton to the city of Biwabik for street and utility infrastructure
153.29improvements to the south side industrial site;
153.30(3) .6460 cent per ton to the city of Buhl for street repair;
153.31(4) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;
153.32(5) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure
153.33upgrades;
153.34(6)1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure
153.35upgrades;
154.1(7) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;
154.2(8) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility
154.3modifications for the miners' memorial;
154.4(9) .6460 to the town of White for Highway 135 road upgrades;
154.5(10) 1.9380 to the city of Hibbing for mercury abatement;
154.6(11) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;
154.7(12) .6460 cent per ton to the town of Balkan for community center repairs;
154.8(13) .9044 cent per ton to the city of Babbitt for city garage construction;
154.9(14) .5168 cent per ton to the city of Cook for replacement of a water tower;
154.10(15) .5168 cent per ton to the city of Ely for reconstruction of 2cnd Avenue West;
154.11(16) .6460 cent per ton to the city of Tower for water infrastructure upgrades;
154.12(17) .1292 cent per ton to the city of Orr for water infrastructure upgrades;
154.13(18) .1292 cent per ton to the city of Silver Bay for emergency cleanup;
154.14(19) .3230 cent per ton to Lake County for trail construction;
154.15(20) .1292 cent per ton to Cook County for construction of tennis courts in Grand
154.16Marais;
154.17(21) .3101 cent per ton to the city of Two Harbors for water infrastructure
154.18improvements;
154.19(22) .1938 cent per ton for land acquisition for phase one of Cook Airport project;
154.20(23) 1.0336 cents per ton to the city of Coleraine for water and sewer improvements
154.21along Gayley Avenue;
154.22(24) .3876 to the city of Marble for construction of a city administration facility;
154.23(25) .1292 to the city of Calumet for repairs at city hall and the community center;
154.24(26) .6460 to the city of Nashwauk for electrical infrastructure upgrades;
154.25(27) 1.0336 to the city of Keewatin for water and sewer upgrades along Depot Street;
154.26(28) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter
154.27improvements;
154.28(29) 1.1628 cents per ton to the city of Grand Rapids for water and sewer
154.29infrastructure upgrades at Pokegema Golf Course and Park Place;
154.30(30) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades for
154.311st Avenue from River Road to 3rd Street SE; and
154.32(40) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing at
154.33Highway 2 and County Road 62.
154.34    Subd. 2. Administration. (a) The taconite area environmental protection fund shall
154.35be administered by the commissioner of the Iron Range Resources and Rehabilitation
154.36Board. The commissioner shall by September 1 of each year submit to the board a list
155.1of projects to be funded from the taconite area environmental protection fund, with such
155.2supporting information including description of the projects, plans, and cost estimates as
155.3may be necessary.
155.4    (b) Each year no less than one-half of the amounts deposited into the taconite
155.5environmental protection fund must be used for public works projects, including
155.6construction of sewer and water systems, as specified under subdivision 1, paragraph (c).
155.7The Iron Range Resources and Rehabilitation Board with ~~a majority vote of the members,~~
155.8approval by at least seven Iron Range Resources and Rehabilitation Board members, may
155.9waive the requirements of this paragraph.
155.10    (c) Upon approval by ~~a majority of the members of the Iron Range Resources and~~
155.11~~Rehabilitation Board,~~ at least seven Iron Range Resources and Rehabilitation Board
155.12members, the list of projects approved under this subdivision shall be submitted to the
155.13governor by November 1 of each year. By December 1 of each year, the governor shall
155.14approve or disapprove, or return for further consideration, each project. Funds for a
155.15project may be expended only upon approval of the project by ~~the board~~ at least seven Iron
155.16Range Resources and Rehabilitation Board members, and governor. The commissioner
155.17may submit supplemental projects to the board and governor for approval at any time.
155.18    Subd. 3. Appropriation. There is annually appropriated to the commissioner of Iron
155.19Range resources and rehabilitation taconite area environmental protection funds necessary
155.20to carry out approved projects and programs and the funds necessary for administration of
155.21this section. Annual administrative costs, not including detailed engineering expenses for
155.22the projects, shall not exceed five percent of the amount annually expended from the fund.
155.23Funds for the purposes of this section are provided by section 298.28, subdivision
155.2411 , relating to the taconite area environmental protection fund.
155.25EFFECTIVE DATE.This section is effective the day following final enactment.

155.26    Sec. 16. Minnesota Statutes 2008, section 298.227, is amended to read:
155.27298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
155.28    (a) An amount equal to that distributed pursuant to each taconite producer's taxable
155.29production and qualifying sales under section 298.28, subdivision 9a, shall be held by
155.30the Iron Range Resources and Rehabilitation Board in a separate taconite economic
155.31development fund for each taconite and direct reduced ore producer. Money from the
155.32fund for each producer shall be released by the commissioner after review by a joint
155.33committee consisting of an equal number of representatives of the salaried employees and
155.34the nonsalaried production and maintenance employees of that producer. The District 11
155.35director of the United States Steelworkers of America, on advice of each local employee
156.1president, shall select the employee members. In nonorganized operations, the employee
156.2committee shall be elected by the nonsalaried production and maintenance employees.
156.3The review must be completed no later than six months after the producer presents a
156.4proposal for expenditure of the funds to the committee. The funds held pursuant to this
156.5section may be released only for workforce development and associated public facility
156.6improvement, or for acquisition of plant and stationary mining equipment and facilities
156.7for the producer or for research and development in Minnesota on new mining, or
156.8taconite, iron, or steel production technology, but only if the producer provides a matching
156.9expenditure to be used for the same purpose of at least 50 percent of the distribution based
156.10on 14.7 cents per ton beginning with distributions in 2002. Effective for proposals for
156.11expenditures of money from the fund beginning May 26, 2007, the commissioner may
156.12not release the funds before the next scheduled meeting of the board. If ~~the board rejects~~
156.13a proposed expenditure is not approved by at least seven Iron Range Resources and
156.14Rehabilitation Board members, the funds must be deposited in the Taconite Environmental
156.15Protection Fund under sections 298.222 to 298.225. If a producer uses money which has
156.16been released from the fund prior to May 26, 2007 to procure haulage trucks, mobile
156.17equipment, or mining shovels, and the producer removes the piece of equipment from the
156.18taconite tax relief area defined in section 273.134 within ten years from the date of receipt
156.19of the money from the fund, a portion of the money granted from the fund must be repaid
156.20to the taconite economic development fund. The portion of the money to be repaid is 100
156.21percent of the grant if the equipment is removed from the taconite tax relief area within 12
156.22months after receipt of the money from the fund, declining by ten percent for each of the
156.23subsequent nine years during which the equipment remains within the taconite tax relief
156.24area. If a taconite production facility is sold after operations at the facility had ceased, any
156.25money remaining in the fund for the former producer may be released to the purchaser of
156.26the facility on the terms otherwise applicable to the former producer under this section. If
156.27a producer fails to provide matching funds for a proposed expenditure within six months
156.28after the commissioner approves release of the funds, the funds are available for release to
156.29another producer in proportion to the distribution provided and under the conditions of
156.30this section. Any portion of the fund which is not released by the commissioner within
156.31one year of its deposit in the fund shall be divided between the taconite environmental
156.32protection fund created in section 298.223 and the Douglas J. Johnson economic protection
156.33trust fund created in section 298.292 for placement in their respective special accounts.
156.34Two-thirds of the unreleased funds shall be distributed to the taconite environmental
156.35protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
157.1    (b) (i) Notwithstanding the requirements of paragraph (a), setting the amount of
157.2distributions and the review process, an amount equal to ten cents per taxable ton of
157.3production in 2007, for distribution in 2008 only, that would otherwise be distributed
157.4under paragraph (a), may be used for a loan for the cost of construction of a biomass
157.5energy facility. This amount must be deducted from the distribution under paragraph (a)
157.6for which a matching expenditure by the producer is not required. The granting of the loan
157.7is subject to approval by ~~the Iron Range Resources and Rehabilitation Board~~ at least seven
157.8Iron Range Resources and Rehabilitation Board members; interest must be payable on the
157.9loan at the rate prescribed in section 298.2213, subdivision 3. (ii) Repayments of the loan
157.10and interest must be deposited in the ~~northeast Minnesota economic development~~ taconite
157.11environment protection fund ~~established in section~~ ~~298.2213~~ under sections 298.222
157.12through 298.225. If a loan is not made under this paragraph by July 1, 2009, the amount
157.13that had been made available for the loan under this paragraph must be transferred to the
157.14~~northeast Minnesota economic development~~ taconite environment protection fund under
157.15sections 298.222 through 298.225. (iii) Money distributed in 2008 to the fund established
157.16under this section that exceeds ten cents per ton is available to qualifying producers under
157.17paragraph (a) on a pro rata basis.
157.18    If 2008 H.F. No. 1812 is enacted and includes a provision that amends this section
157.19in a manner that is different from the amendment in this section, the amendment in this
157.20section supersedes the amendment in 2008 H.F. No. 1812, notwithstanding section 645.26.
157.21(c) Repayment or transfer of money to the taconite environmental protection
157.22fund under paragraph (b), item (ii) must be allocated by the Iron Range Resources and
157.23Rehabilitation Board for public works projects in House legislative districts in the same
157.24proportion as taxable tonnage of production in 2007 in each House legislative district, for
157.25distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution
157.26in 2008. Not withstanding any other law to the contrary, expenditures under this paragraph
157.27do not require approval by the governor. For purposes of this paragraph, House legislative
157.28districts mean the legislative districts in existence on the effective date of this section.
157.29EFFECTIVE DATE.This section is effective the day following final enactment.

157.30    Sec. 17. Minnesota Statutes 2008, section 298.28, subdivision 9d, is amended to read:
157.31    Subd. 9d. Iron Range higher education account. Five cents per taxable ton must
157.32be allocated to the Iron Range Resources and Rehabilitation Board to be deposited in
157.33an Iron Range higher education account that is hereby created, to be used for higher
157.34education programs conducted at educational institutions in the taconite assistance area
157.35defined in section 273.1341. The Iron Range Higher Education committee under section
158.1298.2214, and the Iron Range Resources and Rehabilitation Board by an affirmative vote
158.2of at least seven Iron Range Resources and Rehabilitation Board members, must approve
158.3all expenditures from the account.
158.4EFFECTIVE DATE.This section is effective the day following final enactment.

158.5    Sec. 18. Minnesota Statutes 2008, section 298.292, subdivision 2, is amended to read:
158.6    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust
158.7fund may be used for the following purposes:
158.8    (1) to provide loans, loan guarantees, interest buy-downs and other forms of
158.9participation with private sources of financing, but a loan to a private enterprise shall be
158.10for a principal amount not to exceed one-half of the cost of the project for which financing
158.11is sought, and the rate of interest on a loan to a private enterprise shall be no less than the
158.12lesser of eight percent or an interest rate three percentage points less than a full faith
158.13and credit obligation of the United States government of comparable maturity, at the
158.14time that the loan is approved;
158.15    (2) to fund reserve accounts established to secure the payment when due of the
158.16principal of and interest on bonds issued pursuant to section 298.2211;
158.17    (3) to pay in periodic payments or in a lump-sum payment any or all of the interest
158.18on bonds issued pursuant to chapter 474 for the purpose of constructing, converting,
158.19or retrofitting heating facilities in connection with district heating systems or systems
158.20utilizing alternative energy sources;
158.21    (4) to invest in a venture capital fund or enterprise that will provide capital to other
158.22entities that are engaging in, or that will engage in, projects or programs that have the
158.23purposes set forth in subdivision 1. No investments may be made in a venture capital fund
158.24or enterprise unless at least two other unrelated investors make investments of at least
158.25$500,000 in the venture capital fund or enterprise, and the investment by the Douglas
158.26J. Johnson economic protection trust fund may not exceed the amount of the largest
158.27investment by an unrelated investor in the venture capital fund or enterprise. For purposes
158.28of this subdivision, an "unrelated investor" is a person or entity that is not related to
158.29the entity in which the investment is made or to any individual who owns more than 40
158.30percent of the value of the entity, in any of the following relationships: spouse, parent,
158.31child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
158.32the value of all interests in it. For purposes of determining the limitations under this
158.33clause, the amount of investments made by an investor other than the Douglas J. Johnson
158.34economic protection trust fund is the sum of all investments made in the venture capital
159.1fund or enterprise during the period beginning one year before the date of the investment
159.2by the Douglas J. Johnson economic protection trust fund; and
159.3    (5) to purchase forest land in the taconite assistance area defined in section 273.1341
159.4to be held and managed as a public trust for the benefit of the area for the purposes
159.5authorized in section 298.22, subdivision 5a. Property purchased under this section may
159.6be sold by the commissioner upon approval ~~by a majority vote of the board~~ by at least
159.7seven Iron Range Resources and Rehabilitation Board members. The net proceeds must
159.8be deposited in the trust fund for the purposes and uses of this section.
159.9    Money from the trust fund shall be expended only in or for the benefit of the taconite
159.10assistance area defined in section 273.1341.
159.11EFFECTIVE DATE.This section is effective the day following final enactment.

159.12    Sec. 19. [298.2931] TRANSFER OF FUNDS.
159.13The amount deposited in the fund in 2009 in repayment of a loan for the Mesaba
159.14Nugget project at the Erie Mining site in Hoyt Lakes shall be transferred to the taconite
159.15environmental protection fund and deposited in a special account to be used as provided
159.16under section 298.223, subdivision 1, paragraph (f).
159.17EFFECTIVE DATE.This section is effective the day following final enactment.

159.18    Sec. 20. Minnesota Statutes 2008, section 298.294, is amended to read:
159.19298.294 INVESTMENT OF FUND.
159.20(a) The trust fund established by section 298.292 shall be invested pursuant to law
159.21by the State Board of Investment and the net interest, dividends, and other earnings arising
159.22from the investments shall be transferred, except as provided in paragraph (b), on the first
159.23day of each month to the trust and shall be included and become part of the trust fund.
159.24The amounts transferred, including the interest, dividends, and other earnings earned
159.25prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
159.261983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
159.27commissioner of Iron Range resources and rehabilitation for deposit in a separate account
159.28for expenditure for the purposes set forth in section 298.292. Amounts appropriated
159.29pursuant to this section shall not cancel but shall remain available unless expended.
159.30(b) For fiscal years 2010 and 2011 only, $1,000,000 of the net interest, dividends
159.31and other earnings under paragraph (a) shall be transferred to a special account. Funds in
159.32the special account are available for loans or grants to businesses with priority given to
159.33businesses with 25 or fewer employees. Funds may be used for wage subsidies of up to
159.34$5 per hour or other activities that will create additional jobs in the taconite assistance
160.1area under section 273.1341. To qualify for a grant or loan, a business must be currently
160.2operating, have been operating for one year immediately prior to its application for a loan
160.3or grant, and its corporate headquarters must be located in the taconite assistance area.
160.4Expenditures from the special account must be approved by at least seven Iron Range
160.5Resources and Rehabilitation Board members.
160.6EFFECTIVE DATE.This section is effective the day following final enactment.

160.7    Sec. 21. Minnesota Statutes 2008, section 298.296, subdivision 2, is amended to read:
160.8    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended
160.9on projects and for administration of the trust fund only from the net interest, earnings,
160.10and dividends arising from the investment of the trust at any time, including net interest,
160.11earnings, and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made
160.12available for use in fiscal year 1983, except that any amount required to be paid out of the
160.13trust fund to provide the property tax relief specified in Laws 1977, chapter 423, article
160.14X, section 4, and to make school bond payments and payments to recipients of taconite
160.15production tax proceeds pursuant to section 298.225, may be taken from the corpus of
160.16the trust.
160.17    (b) Additionally, upon recommendation by the board, up to $13,000,000 from the
160.18corpus of the trust may be made available for use as provided in subdivision 4, and up to
160.19$10,000,000 from the corpus of the trust may be made available for use as provided in
160.20section 298.2961.
160.21    (c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust
160.22on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts
160.23made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article
160.248, section 17, may be expended on projects. Funds may be expended for projects under
160.25this paragraph only if the project:
160.26    (1) is for the purposes established under section 298.292, subdivision 1, clause
160.27(1) or (2); and
160.28    (2) is approved by the board upon an affirmative vote of at least ten of its members.
160.29No money made available under this paragraph or paragraph (d) can be used for
160.30administrative or operating expenses of the Iron Range Resources and Rehabilitation
160.31Board or expenses relating to any facilities owned or operated by the board on May 18,
160.322002.
160.33    (d) Upon recommendation by a unanimous vote of all members of the board,
160.34amounts in addition to those authorized under paragraphs (a), (b), and (c) may be
160.35expended on projects described in section 298.292, subdivision 1.
161.1    (e) Annual administrative costs, not including detailed engineering expenses for the
161.2projects, shall not exceed five percent of the net interest, dividends, and earnings arising
161.3from the trust in the preceding fiscal year.
161.4    (f) Principal and interest received in repayment of loans made pursuant to this
161.5section, and earnings on other investments made under section 298.292, subdivision 2,
161.6clause (4), shall be deposited in the state treasury and credited to the trust. These receipts
161.7are appropriated to the board for the purposes of sections 298.291 to 298.298.
161.8    (g) Additionally, notwithstanding section 298.293, upon the affirmative vote
161.9~~of a majority of the members of the board,~~ of at least seven Iron Range Resources and
161.10Rehabilitation Board members, money from the corpus of the trust may be expanded to
161.11purchase forest lands within the taconite assistance area as provided in sections 298.22,
161.12subdivision 5a, and 298.292, subdivision 2, clause (5).
161.13EFFECTIVE DATE.This section is effective the day following final enactment.

161.14    Sec. 22. Minnesota Statutes 2008, section 298.2961, is amended to read:
161.15298.2961 PRODUCER GRANTS.
161.16    Subdivision 1. Appropriation. (a) $10,000,000 is appropriated from the Douglas
161.17J. Johnson economic protection trust fund to a special account in the taconite area
161.18environmental protection fund for grants to producers on a project-by-project basis as
161.19provided in this section.
161.20(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are
161.21appropriated for grants to producers on a project-by-project basis as provided in this
161.22section.
161.23    Subd. 2. Projects; approval. (a) Projects funded must be for:
161.24    (1) environmentally unique reclamation projects; or
161.25    (2) pit or plant repairs, expansions, or modernizations other than for a value added
161.26iron products plant.
161.27    (b) To be proposed by the board, a project must be approved by at least eight Iron
161.28Range Resources and Rehabilitation Board members. The money for a project may
161.29be spent only upon approval of the project by the governor. The board may submit
161.30supplemental projects for approval at any time.
161.31    (c) The board may require that it receive an equity percentage in any project to
161.32which it contributes under this section.
161.33    Subd. 3. Redistribution. (a) If a taconite production facility is sold after operations
161.34at the facility had ceased, any money remaining in the taconite environmental fund for the
162.1former producer may be released to the purchaser of the facility on the terms otherwise
162.2applicable to the former producer under this section.
162.3(b) Any portion of the taconite environmental fund that is not released by the
162.4commissioner within three years of its deposit in the taconite environmental fund shall be
162.5divided between the taconite environmental protection fund created in section 298.223
162.6and the Douglas J. Johnson economic protection trust fund created in section 298.292 for
162.7placement in their respective special accounts. Two-thirds of the unreleased funds must be
162.8distributed to the taconite environmental protection fund and one-third to the Douglas J.
162.9Johnson economic protection trust fund.
162.10    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions
162.11under section 298.28, subdivision 9b, and to make grants or loans as provided in this
162.12subdivision. Any grant or loan made under this subdivision must be approved by ~~a majority~~
162.13~~of the members of the Iron Range Resources and Rehabilitation Board,~~ at least seven Iron
162.14Range Resources and Rehabilitation Board members, established under section 298.22.
162.15    (b) Distributions received in calendar year 2005 are allocated to the city of Virginia
162.16for improvements and repairs to the city's steam heating system.
162.17    (c) Distributions received in calendar year 2006 are allocated to a project of the
162.18public utilities commissions of the cities of Hibbing and Virginia to convert their electrical
162.19generating plants to the use of biomass products, such as wood.
162.20    (d) Distributions received in calendar year 2007 must be paid to the city of Tower to
162.21be used for the East Two Rivers project in or near the city of Tower.
162.22    (e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution
162.23must be paid to St. Louis County for deposit in its county road and bridge fund to be
162.24used for relocation of St. Louis County Road 715, commonly referred to as Pike River
162.25Road. The remainder of the 2008 distribution must be paid to St. Louis County for a
162.26grant to the city of Virginia for connecting sewer and water lines to the St. Louis County
162.27maintenance garage on Highway 135, further extending the lines to interconnect with the
162.28city of Gilbert's sewer and water lines. All distributions received in 2009 and subsequent
162.29years are allocated for projects under section 298.223, subdivision 1.
162.30    Subd. 5. Public works and local economic development fund. For distributions in
162.312007 only, a special fund is established to receive 38.4 cents per ton that otherwise would
162.32be allocated under section 298.28, subdivision 6. The following amounts are allocated to
162.33St. Louis County acting as the fiscal agent for the recipients for the specific purposes:
162.34    (1) 13.4 cents per ton for the Central Iron Range Sanitary Sewer District for
162.35construction of a combined wastewater facility and notwithstanding section 298.28,
163.1subdivision 11, paragraph (a), or any other law, interest accrued on this money while held
163.2by St. Louis County shall also be distributed to the recipient;
163.3    (2) six cents per ton to the city of Eveleth to redesign and design and construct
163.4improvements to renovate its water treatment facility;
163.5    (3) one cent per ton for the East Range Joint Powers Board to acquire land for and to
163.6design a central wastewater collection and treatment system;
163.7    (4) 0.5 cents per ton to the city of Hoyt Lakes to repair Leeds Road;
163.8    (5) 0.7 cents per ton to the city of Virginia to extend Eighth Street South;
163.9    (6) 0.7 cents per ton to the city of Mountain Iron to repair Hoover Road;
163.10    (7) 0.9 cents per ton to the city of Gilbert for alley repairs between Michigan and
163.11Indiana Avenues and for repayment of a loan to the Minnesota Department of Employment
163.12and Economic Development;
163.13    (8) 0.4 cents per ton to the city of Keewatin for a new city well;
163.14    (9) 0.3 cents per ton to the city of Grand Rapids for planning for a fire and hazardous
163.15materials center;
163.16    (10) 0.9 cents per ton to Aitkin County Growth for an economic development
163.17project for peat harvesting;
163.18    (11) 0.4 cents per ton to the city of Nashwauk to develop a comprehensive city plan;
163.19    (12) 0.4 cents per ton to the city of Taconite for development of a city comprehensive
163.20plan;
163.21    (13) 0.3 cents per ton to the city of Marble for water and sewer infrastructure;
163.22    (14) 0.8 cents per ton to Aitkin County for improvements to the Long Lake
163.23Environmental Learning Center;
163.24    (15) 0.3 cents per ton to the city of Coleraine for the Coleraine Technology Center;
163.25    (16) 0.5 cents per ton to the Economic Development Authority of the city of Grand
163.26Rapids for planning for the North Central Research and Technology Laboratory;
163.27    (17) 0.6 cents per ton to the city of Bovey for sewer and water extension;
163.28    (18) 0.3 cents per ton to the city of Calumet for infrastructure improvements; and
163.29    (19) ten cents per ton to the commissioner of Iron Range Resources and
163.30Rehabilitation for deposit in a Highway 1 Corridor Account established by the
163.31commissioner, to be distributed by the commissioner to any of the cities of Babbitt, Cook,
163.32Ely, or Tower, for economic development projects approved by ~~the Iron Range Resources~~
163.33~~and Rehabilitation Board~~ at least seven Iron Range Resources and Rehabilitation Board
163.34members; notwithstanding section 298.28, subdivision 11, paragraph (a), or any other law,
163.35interest accrued on this money while held by St. Louis County or the commissioner
163.36shall also be distributed to the recipient.
164.1    Subd. 6. Renewable energy. For distributions in 2009 only, a special account is
164.2established in the taconite environmental protection fund to receive 15.5 cents per ton that
164.3otherwise would be allocated under section 298.28, subdivision 6. The funds are available
164.4for cooperative projects between the Iron Range Resources and Rehabilitation Board and
164.5local governments for renewable energy initiatives.
164.6EFFECTIVE DATE.This section is effective the day following final enactment."
164.7Amend the title accordingly