HF 3972

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; appropriating money for jobs, economic
development, and housing; establishing and modifying certain programs;
providing for regulation of certain activities and practices; providing for
accounts, assessments, and fees; changing codes and licensing provisions;
providing penalties; amending Minnesota Statutes 2006, sections 115C.07,
subdivision 3; 116J.03, by adding a subdivision; 116J.656; 116J.66; 116J.68;
116L.02; 116L.04, by adding a subdivision; 446A.12, subdivision 1; 462A.21,
by adding a subdivision; 462A.22, subdivision 1; 609.531, subdivision 1;
Minnesota Statutes 2007 Supplement, sections 10A.01, subdivision 35; 80A.28,
subdivision 1; 116L.17, subdivision 1; 268.047, subdivision 2; 341.321;
446A.072, subdivisions 3, 5a; 446A.086; Laws 2007, chapter 135, article 1,
section 3, subdivision 2; proposing coding for new law in Minnesota Statutes,
chapters 116J; 116L; 446A; 462A; repealing Laws 2004, chapter 188, section 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

JOBS, ECONOMIC DEVELOPMENT, HOUSING AND MINNESOTA
HERITAGE APPROPRIATIONS SUMMARY

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations or reductions,
by fund, made in this act.
new text end

		new text begin 2008 new text end		new text begin 2009 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin -0- new text end	new text begin $ new text end	new text begin 11,789,000 new text end	new text begin $ new text end	new text begin 11,789,000 new text end
new text begin Oil Overcharge new text end		new text begin -0- new text end		new text begin 7,704,000 new text end		new text begin 7,704,000 new text end
new text begin Cancellations new text end		new text begin -0- new text end		new text begin 6,358,000 new text end		new text begin 6,358,000 new text end
new text begin Transfers From Other Funds new text end		new text begin -0- new text end		new text begin 14,000,000 new text end		new text begin 14,000,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin -0- new text end	new text begin $ new text end	new text begin (865,000) new text end	new text begin $ new text end	new text begin (865,000) new text end

Sec. 2. new text begin JOBS AND ECONOMIC DEVELOPMENT APPROPRIATIONS AND REDUCTIONS. new text end

new text begin The dollar amounts in the columns under "APPROPRIATIONS AND
REDUCTIONS" are added to or, if shown in parentheses, subtracted from the
appropriations in Laws 2007, chapter 135, or other law to the specified agencies. The
appropriations are from the general fund, or another named fund, and are available for the
fiscal years indicated for each purpose. The figures "2008" and "2009" used in this act
mean that the appropriations listed under them are available for the fiscal year ending June
30, 2008, or June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second
year" is fiscal year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations
for the fiscal year ending June 30, 2008, are effective the day following final enactment.
new text end

			new text begin APPROPRIATIONS AND REDUCTIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2008 new text end		new text begin 2009 new text end

Sec. 3. new text begin COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 7,658,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin -0- new text end	new text begin (46,000) new text end
new text begin Oil Overcharge new text end	new text begin -0- new text end	new text begin 7,704,000 new text end
new text begin Cancellations new text end	new text begin -0- new text end	new text begin 2,600,000 new text end
new text begin Transfers From Other Funds new text end	new text begin -0- new text end	new text begin 2,000,000 new text end

new text begin Subd. 2. new text end new text begin Administration new text end

new text begin -0- new text end

new text begin (46,000) new text end

new text begin This is a base reduction to the administration
and Office of Energy Security programs.
new text end

new text begin Subd. 3. new text end new text begin Energy and Telecommunications new text end

new text begin -0- new text end

new text begin 7,704,000 new text end

new text begin Appropriations by Fund new text end
new text begin Oil Overcharge new text end	new text begin -0- new text end	new text begin 7,704,000 new text end

new text begin The petroleum violation escrow funds
appropriated to the commissioner by
Laws 1988, chapter 686, article 1, section
38, for state energy loan programs for
schools, hospitals, and public buildings, and
reappropriated under Laws 2007, chapter 57,
article 2, section 30, are appropriated to the
commissioner for the purposes of building
efficiency and energy conservation, and are
available until spent,
new text end

new text begin Subd. 4. new text end new text begin Cancellations new text end

new text begin Prior to July 31, 2008, $2,600,000 from the
unexpended balance from the appropriation
made in Laws 2007, chapter 57, article
2, section 3, subdivision 6, for renewable
hydrogen initiative grants is canceled to the
general fund.
new text end

new text begin Subd. 5. new text end new text begin Transfer new text end

new text begin Prior to July 31, 2008, $2,000,000 from the
unexpended balance of the insurance fraud
prevention account in the market assurance
program shall be transferred to the general
fund.
new text end

Sec. 4. new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin new text end

new text begin new text end

new text begin Prior to July 31, 2008, $4,000,000 from the
unexpended balance of the telephone Access
Minnesota account in the special revenue
fund shall be transferred to the general fund.
new text end

Sec. 5. new text begin EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 10,620,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2008 new text end	new text begin 2009 new text end
new text begin General new text end	new text begin -0- new text end	new text begin 10,620,000 new text end
new text begin Cancellations new text end	new text begin -0- new text end	new text begin 1,758,000 new text end
new text begin Transfers From Other Funds new text end	new text begin -0- new text end	new text begin 10,000,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Business and Community Development new text end

new text begin -0- new text end

new text begin 10,900,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin -0- new text end	new text begin 10,900,000 new text end

new text begin $550,000 in the second year is for expansion
of the services provided to small businesses
by the small business development centers
established under Minnesota Statutes, section
116J.66 and is available until expended.
$500,000 of this appropriation is added to
the department's budget base and is available
until expended.
new text end

new text begin $600,000 in the second year is for
development of a network to support
increased entrepreneurial opportunities
including, but not limited to, readiness
assessment and services for potential rural
entrepreneurs through Minnesota's workforce
center system, programs linking aspiring
entrepreneurs with qualified mentors, and
electronic and other communications means
to certify and bring available services to
potential entrepreneurs. This appropriation
is available until expended. Of this amount,
$400,000 is added to the department's budget
base and is available until expended.
new text end

new text begin $400,000 in the second year is for
operation of the Office of Technology
and Commercialization established under
Minnesota Statutes, section 116J.656. This
appropriation is added to the department's
budget base and is available until expended.
new text end

new text begin $350,000 in the second year is for grants
to organizations initiating or continuing
programs to assist rural small manufacturing
businesses in implementing technology and
business improvements that increase the
competitiveness of those businesses. The
application process will reference similar
measures as the growth acceleration program
and be established by the commissioner. The
grants are open to all qualified organizations
as defined by the commissioner through
solicitation. This is a onetime appropriation
and is available until expended.
new text end

new text begin $100,000 in the second year is for the
Minnesota Trade Office to increase export
services in greater Minnesota. This is a
onetime appropriation and is available until
expended.
new text end

new text begin $1,500,000 in the second year is for the
Minnesota rural enterprise microloan
program established under Minnesota
Statutes, section 116J.432. This is a onetime
appropriation and is available until expended.
new text end

new text begin $2,000,000 in the second year is for grants to
the six regional initiative fund foundations
established under Minnesota Statutes, section
116J.415, as regional organizations, to
expand their ability to provide loans to small
businesses. The grants must be matched
by new private funds. This is a onetime
appropriation and is available until expended.
new text end

new text begin $500,000 in the second year is for small
business development program grants under
Minnesota Statutes, section 116J.8749. This
appropriation is added to the department's
budget base and is available until expended.
new text end

new text begin $2,000,000 in the second year is for the
Minnesota investment fund under Minnesota
Statutes, section 116J.8731. Awards made
under this appropriation may include
businesses that increase productivity,
increase research and product development,
and modernize technology. Priority shall
be given to targeted rural opportunity
communities as defined in Minnesota
Statutes, section 116J.03, subdivision 4. This
is a onetime appropriation and is available
until expended.
new text end

new text begin $500,000 in the second year is for the
community leadership and planning program
as defined in Minnesota Statutes, section
116J.9825, and is available until expended.
Of this amount, $400,000 is added to the
department's budget base and is available
until expended.
new text end

new text begin $2,000,000 in the second year is for the Main
Street revitalization grant program as defined
in Minnesota Statutes, section 116J.9805,
to increase business creation, to promote
business retention, or for general economic
vitality improvements. This appropriation
is available until expended. Of this amount,
$800,000 is added to the department's base
budget and is available until expended.
new text end

new text begin $150,000 in the second year is to develop and
implement a new Web-based community and
property profile system. This appropriation
is available until expended.
new text end

new text begin $100,000 in the second year is for
expenses associated with marketing the
state of Minnesota to attract new business
development opportunities. These funds
must be used to attract industries in which the
commissioner determines that Minnesota has
a current or potential competitive advantage,
including renewable energy and other
industries with strengths and opportunities
to grow additional businesses and jobs.
State funds awarded to the department
must be matched by nonstate sources. The
appropriation is available until expended.
new text end

new text begin $150,000 in the second year is for business
surveys to determine benefit and vacancy
levels on an occupational and regional basis,
and to improve accessibility of economic
and labor market information data collected
by the Department of Employment and
Economic Development through the Internet.
This is a onetime appropriation and is
available until expended.
new text end

new text begin Subd. 3. new text end new text begin Workforce Development new text end

new text begin -0- new text end

new text begin (280,000) new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin -0- new text end	new text begin (280,000) new text end

new text begin $280,000 in the second year is a base
reduction to the extended employment grants
program. Of this amount, $125,000 is from
supplemental funds paid for wage incentives
for the community support fund established
in Minnesota Rules, part 3300.2045.
new text end

new text begin Subd. 4. new text end new text begin Cancellations new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 1,758,000 new text end

new text begin Prior to July 31, 2008, the unexpended
balances from the following appropriations
are canceled to the general fund:
new text end

new text begin (1) the appropriation made in Laws 2005,
First Special Session chapter 3, article
10, section 23, to the foreign trade zone
authority; and
new text end

new text begin (2) the appropriation made in Laws
2005, First Special Session chapter 1,
article 3, section 2, subdivision 2, for
the methamphetamine laboratory cleanup
revolving loan fund.
new text end

new text begin Prior to July 31, 2008, of the unexpended
balance in the job skills partnership account,
$1,000,000 is canceled to the general fund.
new text end

new text begin Subd. 5. new text end new text begin Transfers new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 10,000,000 new text end

new text begin Prior to July 31, 2008, the specified amounts
from the unexpended balance of the named
funds shall be transferred to the general fund:
new text end

new text begin (1) $8,000,000 from the workforce
development fund; and
new text end

new text begin (2) $2,000,000 from the 21st century
minerals fund.
new text end

Sec. 6. new text begin EXPLORE MINNESOTA TOURISM new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 500,000 new text end

new text begin $500,000 in the second year is from the
special marketing account established
pursuant to Laws 2005, First Special Session
chapter 1, article 3, section 6, for a onetime
grant to the Minnesota Film and TV Board
for the filming of a movie in Minnesota in
2008 and 2009. The grant is in addition to
any payments made for the same purpose
from the film production jobs program under
Minnesota Statutes, section 116U.26. This
appropriation is available until expended.
new text end

Sec. 7. new text begin LABOR AND INDUSTRY new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin (41,000) new text end

new text begin $41,000 in the second year is a base reduction
to the municipal building permit reporting
unit in the labor standards program.
new text end

Sec. 8. new text begin BUREAU OF MEDIATION SERVICES new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin (69,000) new text end

new text begin This is a base reduction.
new text end

Sec. 9. new text begin MINNESOTA HISTORICAL SOCIETY new text end

new text begin new text end new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 825,000 new text end

new text begin $825,000 in the second year is a
onetime appropriation for the Minnesota
Sesquicentennial Commission. The
Minnesota Historical Society, the State Arts
Board, and Explore Minnesota Tourism
may assist the commission in designing
and implementing the grants program.
The commission shall encourage private
contributions to match the state funds to the
greatest extent possible. Any gifts, pledges,
membership fees, or contributions received
by the commission are appropriated to the
commission.
new text end

Sec. 10. new text begin COMBATIVE SPORTS COMMISSION new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 80,000 new text end

new text begin This amount is added to the commission's
base budget.
new text end

ARTICLE 2

GENERAL

Section 1.

Minnesota Statutes 2007 Supplement, section 10A.01, subdivision 35,
is amended to read:

Subd. 35.

Public official.

"Public official" means any:

(1) member of the legislature;

(2) individual employed by the legislature as secretary of the senate, legislative
auditor, chief clerk of the house, revisor of statutes, or researcher, legislative analyst, or
attorney in the Office of Senate Counsel and Research or House Research;

(3) constitutional officer in the executive branch and the officer's chief administrative
deputy;

(4) solicitor general or deputy, assistant, or special assistant attorney general;

(5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, or the state chief information
officer;

(6) member, chief administrative officer, or deputy chief administrative officer of a
state board or commission that has either the power to adopt, amend, or repeal rules under
chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;

(7) individual employed in the executive branch who is authorized to adopt, amend,
or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;

(8) executive director of the State Board of Investment;

(9) deputy of any official listed in clauses (7) and (8);

(10) judge of the Workers' Compensation Court of Appeals;

(11) administrative law judge or compensation judge in the State Office of
Administrative Hearings or referee in the Department of Employment and Economic
Development;

(12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;

(13) member or chief administrator of a metropolitan agency;

(14) director of the Division of Alcohol and Gambling Enforcement in the
Department of Public Safety;

(15) member or executive director of the Higher Education Facilities Authority;

(16) member of the board of directors or president of Minnesota Technology, Inc.;

(17) member of the board of directors or executive director of the Minnesota State
High School League;

(18) member of the Minnesota Ballpark Authority established in section 473.755;

(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;

(20) manager of a watershed district, or member of a watershed management
organization as defined under section 103B.205, subdivision 13; deleted text begin or
deleted text end

(21) supervisor of a soil and water conservation district new text begin ; or
new text end

new text begin (22) director of Explore Minnesota Tourism new text end .

Sec. 2.

Minnesota Statutes 2007 Supplement, section 80A.28, subdivision 1, is
amended to read:

Subdivision 1.

Registration or notice filing fee.

(a) There shall be a filing fee of
$100 for every application for registration or notice filing. There shall be an additional fee
of one-tenth of one percent of the maximum aggregate offering price at which the securities
are to be offered in this state, and the maximum combined fees shall not exceed $300.

(b) When an application for registration is withdrawn before the effective date or a
preeffective stop order is entered under section 80A.13, subdivision 1, all but the $100
filing fee shall be returned. If an application to register securities is denied, the total of all
fees received shall be retained.

(c) Where a filing is made in connection with a federal covered security under
section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing.
If the filing is made in connection with redeemable securities issued by an open end
management company or unit investment trust, as defined in the Investment Company Act
of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate
offering price at which the securities are to be offered in this state during the notice filing
period. The fee must be paid at the time of the initial filing and thereafter in connection
with each renewal no later than July 1 of each year and must be sufficient to cover the
shares the issuer expects to sell in this state over the next 12 months. If during a current
notice filing the issuer determines it is likely to sell shares in excess of the shares for
which fees have been paid to the commissioner, the issuer shall submit an amended notice
filing to the commissioner under section 80A.122, subdivision 1, clause (3), together with
a fee of 1/20 of one percent of the maximum aggregate offering price of the additional
shares. Shares for which a fee has been paid, but which have not been sold at the time
of expiration of the notice filing, may not be sold unless an additional fee to cover the
shares has been paid to the commissioner as provided in this section and section 80A.122,
subdivision 4a. If the filing is made in connection with redeemable securities issued by
such a company or trust, there is no maximum fee for securities filings made according to
this paragraph. If the filing is made in connection with any other federal covered security
under Section 18(b)(2) of the Securities Act of 1933, there is an additional fee of one-tenth
of one percent of the maximum aggregate offering price at which the securities are to be
offered in this state, and the combined fees shall not exceed $300. Beginning with fiscal
year 2001 and continuing each fiscal year thereafter, as of the last day of each fiscal year,
the commissioner shall determine the total amount of all fees that were collected under
this paragraph in connection with any filings made for that fiscal year for securities of an
open-end investment company on behalf of a security that is a federal covered security
pursuant to section 18(b)(2) of the Securities Act of 1933. deleted text begin To the extent the total fees
collected by the commissioner in connection with these filings exceed $25,600,000 in a
fiscal year, the commissioner shall refund, on a pro rata basis, to all persons who paid any
fees for that fiscal year, the amount of fees collected by the commissioner in excess of
$25,600,000. deleted text end No individual refund is required of amounts of $100 or less for a fiscal year.

Sec. 3.

Minnesota Statutes 2006, section 115C.07, subdivision 3, is amended to read:

Subd. 3.

Rules.

(a) The board shall adopt rules regarding its practices and
procedures, the form and procedure for applications for compensation from the fund,
procedures for investigation of claims and specifying the costs that are eligible for
reimbursement from the fund.

(b) The board may adopt rules requiring certification of environmental consultants.

(c) The board may adopt other rules necessary to implement this chapter.

(d) The board may use section 14.389 to adopt rules specifying the competitive
bidding requirements for consultant services proposals.

(e) The board may use section 14.389 to adopt rules specifying the written proposal
and invoice requirements for consultant services.

new text begin (f) Upon written notification from the board of the adjusted dollar amounts
determined pursuant to Minnesota Rules, parts 2890.1900, item D, and 2890.3900, item D,
the revisor of statutes must adjust the dollar amounts in Minnesota Rules, parts 2890.1300
to 2890.1600, 2890.2600, 2890.2800 to 2890.3100, and 2890.3300 to 2890.3800, to reflect
the adjustments announced and published by the board.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for changes announced in 2006
and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2006, section 116L.04, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Rural workforce innovation grants. new text end

new text begin The partnership program may
provide up to $1,000,000 in grants each fiscal year for the rural workforce innovation
program under section 116L.175.
new text end

Sec. 5.

Minnesota Statutes 2007 Supplement, section 341.321, is amended to read:

341.321 FEE SCHEDULE.

(a) The fee schedule for new text begin professional new text end licenses issued by the deleted text begin Minnesota Boxing deleted text end
commission is as follows:

(1) referees, deleted text begin $45 deleted text end new text begin $25 new text end for each initial license and each renewal;

(2) promoters, $400 for each initial license and each renewal;

(3) judges and knockdown judges, deleted text begin $45 deleted text end new text begin $25 new text end for each initial license and each renewal;

(4) trainers, deleted text begin $45 deleted text end new text begin $25 new text end for each initial license and each renewal;

(5) ring announcers, deleted text begin $45 deleted text end new text begin $25 new text end for each initial license and each renewal;

(6) deleted text begin boxers' deleted text end seconds, deleted text begin $45 deleted text end new text begin $25 new text end for each initial license and each renewal;

(7) timekeepers, deleted text begin $45 deleted text end new text begin $25 new text end for each initial license and each renewal;

(8) deleted text begin boxers deleted text end new text begin combatant new text end , deleted text begin $45 deleted text end new text begin $25 new text end for each initial license and each renewal;

(9) managers, deleted text begin $45 deleted text end new text begin $25 new text end for each initial license and each renewal; and

(10) ringside physicians, deleted text begin $45 deleted text end new text begin $25 new text end for each initial license and each renewal.

new text begin In addition to the license fee and the late filing penalty fee in section 341.32, subdivision
2, if applicable, an individual who applies for a combatant license on the same day the
combative sporting event is held shall pay a fee of $100 at the time the application is
submitted.
new text end

new text begin (b) The fee schedule for amateur licenses issued by the commission is as follows:
new text end

new text begin (1) referees, $10 for each initial license and each renewal;
new text end

new text begin (2) promoters, $100 for each initial license and each renewal;
new text end

new text begin (3) judges and knockdown judges, $10 for each initial license and each renewal;
new text end

new text begin (4) trainers, $10 for each initial license and each renewal;
new text end

new text begin (5) ring announcers, $10 for each initial license and each renewal;
new text end

new text begin (6) seconds, $10 for each initial license and each renewal;
new text end

new text begin (7) timekeepers, $10 for each initial license and each renewal;
new text end

new text begin (8) combatant, $10 for each initial license and each renewal;
new text end

new text begin (9) managers, $10 for each initial license and each renewal; and
new text end

new text begin (10) ringside physicians, $10 for each initial license and each renewal.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The commission shall establish deleted text begin and assess an event deleted text end new text begin a contest new text end fee for each
deleted text begin sporting event deleted text end new text begin combative sport contest new text end . The deleted text begin event deleted text end new text begin contest new text end fee is deleted text begin set at a minimum of deleted text end
$1,500 per event or deleted text begin a percentage deleted text end new text begin not more than four percent new text end of the new text begin gross new text end ticket sales
as determined by the commission when the deleted text begin sporting event deleted text end new text begin combative sport contest new text end is
scheduled new text begin , except that the amateur combative sport contest fee shall be $150. The
commission shall consider the size and type of venue when establishing a contest fee. The
commission may establish the maximum number of complimentary tickets allowed for
each event by rule. An amateur combative sport contest fee is nonrefundable new text end .

deleted text begin (c) deleted text end new text begin (d) new text end All fees collected by the deleted text begin Minnesota Boxing deleted text end commission must be deposited in
the deleted text begin Boxing deleted text end commission account in the special revenue fund.

Sec. 6.

new text begin [462A.36] NONPROFIT HOUSING BONDS; AUTHORIZATION;
STANDING APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have
the meanings given them in this subdivision:
new text end

new text begin (1) "debt service" means the amount payable in any fiscal year of principal of,
premium, in any, and interest on nonprofit housing bonds and the fees, charges, and
expenses related to the bonds;
new text end

new text begin (2) "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended;
and
new text end

new text begin (3) "nonprofit housing bonds" means bonds issued by the agency under chapter
462A that are "qualified 501(c)(3) bonds" within the meaning of section 145(a) of the
Internal Revenue Code or are not "private activity bonds" within the meaning of section
141(a) of the Internal Revenue Code, for the purpose of financing or refinancing affordable
housing authorized under chapter 462A.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation of debt service; payment to agency or trustee. new text end

new text begin (a) Up to
$2,400,000 annually is appropriated from the general fund for deposit in the nonprofit
housing bond account established in section 462A.21, subdivision 32, to pay the debt
service on nonprofit housing bonds. The appropriation of up to $2,400,000 per year may be
made for no more than 20 years, commencing with the fiscal year beginning July 1, 2009.
new text end

new text begin (b) On July 1 of each year, but no earlier than July 1, 2009, and for so long as any
nonprofit housing bonds are outstanding, the state must transfer from the general fund
to the nonprofit housing bond account established under section 462A.21, subdivision
32, the amount of debt service payable in the fiscal year certified by the agency to the
commissioner of finance, not to exceed $2,400,000 annually.
new text end

new text begin (c) The agency may pledge to the payment of the nonprofit housing bonds the
payments to be made by the state pursuant to this section.
new text end

new text begin Subd. 3. new text end

new text begin No full faith and credit. new text end

new text begin The nonprofit housing bonds are not public debt
of the state, and the full faith and credit and taxing powers of the state are not pledged
to the payment of the nonprofit housing bonds or to any payment that the state agrees to
make under this section. The bonds must contain a conspicuous statement to such effect.
new text end

new text begin Subd. 4. new text end

new text begin Authorization. new text end

new text begin The agency may issue up to $30,000,000 of nonprofit
housing bonds in one or more series to which the payments made pursuant to this section
may be pledged. The nonprofit housing bonds authorized in this subdivision may be issued
for the purpose of making loans, on terms and conditions the agency deems appropriate,
to finance the costs of the construction, acquisition, preservation, and rehabilitation of
permanent supportive housing for individuals and families who: (1) either have been
without a permanent residence for at least 12 months or at least four times in the last three
years; or (2) are at significant risk of lacking a permanent residence for 12 months or at
least four times in the last three years. An insubstantial portion of the bond proceeds
may be used for permanent supportive housing for individuals and families experiencing
homelessness who do not meet the criteria of the previous sentence. For purposes of this
subdivision, "permanent supportive housing" means housing that is not time-limited and
provides or coordinates with linkages to services necessary for residents to maintain
housing stability and maximize opportunities for education and employment.
new text end

Sec. 7.

Minnesota Statutes 2006, section 462A.21, is amended by adding a subdivision
to read:

new text begin Subd. 32. new text end

new text begin Nonprofit housing bonds account. new text end

new text begin It may establish a nonprofit housing
bond account as a separate account within the housing development fund. Proceeds of
nonprofit housing bonds and payments made by the state pursuant to section 462A.36
may be deposited in the account. The agency may transfer the proceeds of nonprofit
housing bonds to another account within the housing development fund that it determines
appropriate to accomplish the purposes for which the bonds are authorized under section
462A.36.
new text end

Sec. 8.

Minnesota Statutes 2006, section 462A.22, subdivision 1, is amended to read:

Subdivision 1.

Debt ceiling.

The aggregate principal amount of bonds and notes
which are outstanding at any time, excluding the principal amount of any bonds and
notes refunded by the issuance of new bonds or notes, shall not exceed the sum of
deleted text begin $3,000,000,000 deleted text end new text begin $5,000,000,000 new text end .

Sec. 9.

Minnesota Statutes 2006, section 609.531, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purpose of sections 609.531 to 609.5318, the
following terms have the meanings given them.

(a) "Conveyance device" means a device used for transportation and includes, but
is not limited to, a motor vehicle, trailer, snowmobile, airplane, and vessel and any
equipment attached to it. The term "conveyance device" does not include property which
is, in fact, itself stolen or taken in violation of the law.

(b) "Weapon used" means a dangerous weapon as defined under section 609.02,
subdivision 6, that the actor used or had in possession in furtherance of a crime.

(c) "Property" means property as defined in section 609.52, subdivision 1, clause (1).

(d) "Contraband" means property which is illegal to possess under Minnesota law.

(e) "Appropriate agency" means the Bureau of Criminal Apprehension, new text begin the
Department of Commerce Division of Insurance Fraud Prevention, new text end the Minnesota Division
of Driver and Vehicle Services, the Minnesota State Patrol, a county sheriff's department,
the Three Rivers Park District park rangers, the Department of Natural Resources Division
of Enforcement, the University of Minnesota Police Department, the Department of
Corrections' Fugitive Apprehension Unit, or a city or airport police department.

(f) "Designated offense" includes:

(1) for weapons used: any violation of this chapter, chapter 152, or chapter 624;

(2) for driver's license or identification card transactions: any violation of section
171.22; and

(3) for all other purposes: a felony violation of, or a felony-level attempt or
conspiracy to violate, section 325E.17; 325E.18; 609.185; 609.19; 609.195; 609.21;
609.221; 609.222; 609.223; 609.2231; 609.24; 609.245; 609.25; 609.255; 609.282;
609.283; 609.322; 609.342, subdivision 1, clauses (a) to (f); 609.343, subdivision 1,
clauses (a) to (f); 609.344, subdivision 1, clauses (a) to (e), and (h) to (j); 609.345,
subdivision 1, clauses (a) to (e), and (h) to (j); 609.352; 609.42; 609.425; 609.466;
609.485; 609.487; 609.52; 609.525; 609.527; 609.528; 609.53; 609.54; 609.551; 609.561;
609.562; 609.563; 609.582; 609.59; 609.595; new text begin 609.611; new text end 609.631; 609.66, subdivision 1e;
609.671, subdivisions 3, 4, 5, 8, and 12; 609.687; 609.821; 609.825; 609.86; 609.88;
609.89; 609.893; 609.895; 617.246; 617.247; or a gross misdemeanor or felony violation
of section 609.891 or 624.7181; or any violation of section 609.324.

(g) "Controlled substance" has the meaning given in section 152.01, subdivision 4.

Sec. 10.

Laws 2007, chapter 135, article 1, section 3, subdivision 2, is amended to read:

Subd. 2. Business and Community Development

40,667,000

8,639,000

Appropriations by Fund
General	39,967,000	7,939,000
Remediation	700,000	700,000

(a) (1) $250,000 the first year and $250,000
the second year are from the general fund
for a grant under Minnesota Statutes,
section 116J.421, to the Rural Policy and
Development Center at St. Peter, Minnesota.
The grant shall be used for research and
policy analysis on emerging economic and
social issues in rural Minnesota, to serve as
a policy resource center for rural Minnesota
communities, to encourage collaboration
across higher education institutions to
provide interdisciplinary team approaches
to research and problem-solving in rural
communities, and to administer overall
operations of the center.

(2) The grant shall be provided upon the
condition that each state-appropriated
dollar be matched with a nonstate dollar.
Acceptable matching funds are nonstate
contributions that the center has received and
have not been used to match previous state
grants. Any unencumbered balance in the
first year is available for the second year.

(b) $250,000 the first year and $250,000
the second year are from the general fund
for a grant to WomenVenture for women's
business development programs.

(c) $250,000 the first year is for a grant to
University Enterprise Laboratories (UEL)
for its direct and indirect expenses to support
efforts to encourage the growth of early-stage
and emerging bioscience companies. UEL
must provide a report by June 30 each year
to the commissioner on the expenditures
until the appropriation is expended. This is a
onetime appropriation and is available until
expended.

(d) $2,000,000 the first year is for grants
under Minnesota Statutes, section 116J.571,
for the redevelopment grant program. This is
a onetime appropriation.

(e) $100,000 the first year and $100,000 the
second year are to help small businesses
access federal funds through the federal
Small Business Innovation Research Program
and the federal Small Business Technology
Transfer Program. Department services
must include maintaining connections to
11 federal programs, assessment of specific
funding opportunities, review of funding
proposals, referral to specific consulting
services, and training workshops throughout
the state. Unless prohibited by federal law,
the department must implement fees for
services that help companies seek federal
Phase II Small Business Innovation Research
grants. The recommended fee schedule
must be reported to the chairs of the house
of representatives finance committee and
senate budget division with jurisdiction over
economic development by February 1, 2008.

(f) $100,000 the first year and $100,000
the second year are appropriated to the
Public Facilities Authority for the small
community wastewater treatment program
under Minnesota Statutes, chapter 446A.

(g) $255,000 the first year and $155,000
the second year are from the general fund
for a grant to the Metropolitan Economic
Development Association for continuing
minority business development programs in
the metropolitan area.

(h) $85,000 the first year and $85,000 the
second year are for grants to the Minnesota
Inventors Congress. Of this amount, $10,000
each year is for the Student Inventors
Congress.

(i) $151,000 the first year is for a onetime
grant to the city of Faribault to design,
construct, furnish, and equip renovations to
accommodate handicapped accessibility at
the Paradise Center for the Arts.

(j) $750,000 the first year is to Minnesota
Technology, Inc. for the small business
growth acceleration program established
under Minnesota Statutes, section 116O.115.
This is a onetime appropriation.

(k) $300,000 the first year is for a onetime
grant to the city of Northome for the
construction of a new municipal building to
replace the structures damaged by fire on
July 22, 2006. This appropriation is available
when the commissioner determines that a
sufficient match is available from nonstate
sources to complete the project.

(l) $300,000 the first year is for a grant to the
city of Worthington for an agricultural-based
bioscience training and testing center. Funds
appropriated under this section must be used
to provide a training and testing facility for
incubator firms developing new agricultural
processes and products. This is a onetime
appropriation and is available until expended.

(m) $1,750,000 the first year is for a onetime
grant to BioBusiness Alliance of Minnesota
for bioscience business development
programs to promote and position the state
as a global leader in bioscience business
activities. These funds may be used for:

(1) completion and periodic updating of
a statewide bioscience business industry
assessment of business technology
enterprises and Minnesota's competitive
position employing annual updates to federal
industry classification data;

(2) long-term strategic planning that includes
projections of market changes resulting
from developments in biotechnology and the
development of 20-year goals, strategies, and
identified objectives for renewable energy,
medical devices, biopharma, and biologics
business development in Minnesota;

(3) the design and construction of a
Minnesota focused bioscience business
model to test competing strategies and
scenarios, evaluate options, and forecast
outcomes; and

(4) creation of a bioscience business
resources network that includes development
of a statewide bioscience business economic
development framework to encourage
bioscience business development and
encourage spin-off activities, attract
bioscience business location or expansion in
Minnesota, and establish a local capability to
support strategic system level planning for
industry, government, and academia.

This appropriation is available until June 30,
2009.

(n) $125,000 the first year is to develop and
operate a bioscience business marketing
program to market Minnesota bioscience
businesses and business opportunities
to other states and other countries. The
bioscience business marketing program must
emphasize bioscience business location and
expansion opportunities in communities
outside of the seven-county metropolitan
area as defined in Minnesota Statutes,
section 473.121, subdivision 2, that have
established collaborative plans among two
or more municipal units for bioscience
business activities, and that are within 15
miles of a four-year, baccalaureate degree
granting institution or a two-year technical
or community college that offers bioscience
curricula. The commissioner must report
to the committees of the senate and house
of representatives having jurisdiction
over bioscience and technology issues by
February 1 of each year on the expenditures
of these funds and the promotional activities
undertaken to market the Minnesota
bioscience industry to persons outside of the
state. This is a onetime appropriation and is
available until expended.

(o) $325,000 is for a grant to the Walker
Area Community Center, Inc., to construct,
furnish, and equip the Walker Area
Community Center. This appropriation is
not available until the commissioner has
determined that an amount sufficient to
complete the project has been committed
from nonstate sources. This is a onetime
appropriation and is available until expended.

(p) $100,000 the first year is for a grant
to the Pine Island Economic Development
Authority for predesign to upgrade and
extend utilities to serve Elk Run Bioscience
Research Park and The Falls - Healthy
Living By Nature, an integrated medicine
facility. This is a onetime appropriation and
is available until expended.

(q) $350,000 the first year is for a grant
to Thomson Township for infrastructure
improvements for the industrial park. This
is a onetime appropriation and is available
until expended.

(r) $75,000 the first year is for a grant to
Le Sueur County for the cost of cleaning
up debris from lakes in Le Sueur County,
caused by the August 24, 2006, tornado in
southern Le Sueur County. This is a onetime
appropriation and is available until expended.

(s) $400,000 the first year is for a grant to
the city of Rogers to be used for relief from
damages caused by the September 16, 2006,
tornado.

(t) $75,000 the first year is for a grant to
the city of Warroad for new public facilities
to replace those damaged or destroyed
by the August 2006 tornado, including
approximately 28 new street lights and
underground electrical circuits and a new
fish cleaning house. This is a onetime
appropriation and is available until expended.
If an appropriation for this purpose is enacted
more than once in the 2007 session, the
appropriation is effective only once.

(u) $500,000 the first year is for a grant to
the Upper Sioux Community to improve the
current water system to ensure continuity
of service to the entire population of the
community and to meet the demands of the
community expansion over the next 20 years.
The is a onetime appropriation and is not
available until the Public Facilities Authority
has determined that at least $1,000,000 has
been committed from nonstate sources. This
appropriation is available until expended. *
(The preceding text beginning "(u) $500,000
the first year is for" was indicated as vetoed
by the governor.)

(v) $755,000 the first year is for the urban
challenge grant program under Minnesota
Statutes, section 116M.18. This is a onetime
appropriation.

(w) $1,100,000 is for a grant to the
Neighborhood Development Center for
assistance necessary to retain minority
business enterprises at the Global Market.
This is a onetime appropriation and is
available until expended.

(x) $350,000 the first year is for a onetime
grant to the city of Inver Grove Heights
to reduce debt on the Inver Grove Heights
Veterans Memorial Community Center. *
(The preceding text beginning "(x) $350,000
the first year is for" was indicated as vetoed
by the governor.)

(y) $14,900,000 the first year is for the
Minnesota minerals 21st century fund created
in Minnesota Statutes, section 116J.423, to
partially restore the money unallotted by the
commissioner of finance in 2003 pursuant
to Minnesota Statutes, section 16A.152.
This appropriation may be used as provided
in Minnesota Statutes, section 116J.423,
subdivision 2. This appropriation is available
until expended.

(z) $2,500,000 the first year is for a grant to
the city of St. Paul to be used to pay, redeem,
or refund debt service costs incurred for the
River Centre Campus. * (The preceding text
beginning "(z) $2,500,000 the first year is
for" was indicated as vetoed by the governor.)

(aa) $147,000 each year is appropriated from
the general fund to the commissioner of
employment and economic development for
grants of $49,000 to eligible organizations
each year and for the purposes of this
paragraph. Each state grant dollar must be
matched with $1 of nonstate funds. Any
balance in the first year does not cancel but
is available in the second year. The base for
these grants in fiscal years 2010 and 2011
is $189,000 each year, with each eligible
organization receiving a $63,000 grant each
year.

The commissioner of employment and
economic development must make grants to
organizations to assist in the development
of entrepreneurs and small businesses.
Three grants must be awarded to continue
or to develop a program. One grant must
be awarded to the Riverbend Center for
Entrepreneurial Facilitation in Blue Earth
County, and two to other organizations
serving Faribault and Martin Counties. Grant
recipients must report to the commissioner
by February 1 of each year that the
organization receives a grant with the
number of customers served; the number of
businesses started, stabilized, or expanded;
the number of jobs created and retained; and
business success rates. The commissioner
must report to the house of representatives
and senate committees with jurisdiction
over economic development finance on the
effectiveness of these programs for assisting
in the development of entrepreneurs and
small businesses.

(bb) $5,000,000 the first year is for grants
under Minnesota Statutes, section 116J.8731,
for the Minnesota investment fund program.
Of this amount, up to $3,000,000 may
be used for a legal reference office and
data center facility, provided that the total
capital investment in the facility is at least
$60,000,000. This grant is not subject to
grant limitations under Minnesota Statutes,
section 116J.8731, subdivision 5. This is
a onetime appropriation new text begin and is available in
either year of the biennium new text end .

Sec. 11. new text begin REPEALER.
new text end

new text begin Laws 2004, chapter 188, section 2, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 3

ENTREPRENEURIAL ECONOMIC DEVELOPMENT

Section 1.

Minnesota Statutes 2006, section 116J.03, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Targeted rural opportunity community. new text end

new text begin "Targeted rural opportunity
community" means a city or township in a county that either lost population from 1980
to 2000 according to the decennial census or had an unemployment rate higher than the
Minnesota state annual average in 2006 according to local area unemployment statistics
published by the Department of Employment and Economic Development.
new text end

Sec. 2.

new text begin [116J.432] RURAL ENTERPRISE MICROLOAN PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the definitions in this
subdivision have the meanings given them:
new text end

new text begin (1) "Commissioner" means the commissioner of employment and economic
development.
new text end

new text begin (2) "Nonprofit corporation" means a corporation organized and operating under
chapter 317A and holding tax exempt status under section 501(c)(3), 501(c)(4)(A), or
501(c)(5) of the Internal Revenue Code, or a Minnesota private foundation meeting the
definition of section 509 of the Internal Revenue Code.
new text end

new text begin (3) "Rural areas" means those areas of Minnesota located outside the metropolitan
area as defined in section 473.121, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Established. new text end

new text begin The rural enterprise microloan program is created to provide
rural enterprise grants to nonprofit corporations to encourage private investment, create
jobs for persons in rural areas, and promote economic development.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin The commissioner shall enter into agreements with nonprofit
corporations to provide rural enterprise microloans in rural areas as provided under this
section. In order to qualify for a rural enterprise microloan grant, a corporation must
demonstrate that the corporation:
new text end

new text begin (1) has a board of directors that includes citizens experienced in business lending
and development, the operations of rural business enterprises, and the creation of jobs in
low-income, economically disadvantaged rural areas;
new text end

new text begin (2) has the technical skills to analyze projects;
new text end

new text begin (3) is familiar with other available public and private funding sources and economic
development programs;
new text end

new text begin (4) can initiate and implement economic development projects;
new text end

new text begin (5) can establish and administer a rural enterprise microloan account which will be
used to disburse loans to qualifying businesses and receive loan repayments; and
new text end

new text begin (6) has demonstrated a capacity to deliver financial, technical, managerial, and
marketing assistance to a business enterprise receiving a microloan under this section.
This assistance may be delivered by the nonprofit corporation or through other appropriate
organizations as provided by the nonprofit corporation through written agreements.
new text end

new text begin Subd. 4. new text end

new text begin Revolving loan funds. new text end

new text begin Nonprofit corporations must establish a revolving
loan fund to receive rural enterprise microloan grants. Grants must be used to make
loans to new and expanding for-profit business enterprises in rural areas, targeted rural
opportunity communities, and disadvantaged business enterprises in rural areas in order to
promote business enterprises and job creation.
new text end

new text begin Subd. 5. new text end

new text begin Revolving fund administration. new text end

new text begin (a) The department shall establish a
maximum interest rate for loans made under this section.
new text end

new text begin (b) Loan repayment amounts, including principal and interest, must be deposited
in a revolving fund created by the nonprofit corporation to be used for additional loans
consistent with the loan criteria specified in this section or as allowed under paragraph (c).
new text end

new text begin (c) Expenses incurred by a nonprofit corporation in providing financial, technical,
managerial, and marketing assistance to a business enterprise receiving a loan under
this section may be paid out of interest earned from rural enterprise loans, as allowed
by the department.
new text end

new text begin Subd. 6. new text end

new text begin Loan criteria. new text end

new text begin (a) The criteria in this subdivision apply to loans made or
guaranteed by nonprofit corporations under the rural enterprise microloan program.
new text end

new text begin (b) Loans or guarantees must be made to businesses that are not likely to undertake a
project for which loans are sought without assistance from the rural enterprise microloan
program.
new text end

new text begin (c) The minimum state contribution to a loan or guarantee is $1,000 and the
maximum is $50,000.
new text end

new text begin (d) The state contributions must be matched by at least an equal amount of new
private investment.
new text end

new text begin Subd. 7. new text end

new text begin Reporting requirement. new text end

new text begin A nonprofit corporation that receives a rural
enterprise microloan grant shall submit, in a format prescribed by the department, an
annual report by October 1 of each year that provides information as to the use and impact
of the grant funds.
new text end

new text begin Subd. 8. new text end

new text begin Report to legislature. new text end

new text begin The commissioner shall submit an annual report
that provides information as to the use and impact of the funds provided under this section,
by January 15 of each year to the economic development committees of the senate and
house of representatives.
new text end

new text begin Subd. 9. new text end

new text begin Rules. new text end

new text begin The commissioner shall adopt rules for eligibility, revolving fund
administration, and other details of rural enterprise microloans, using the expedited
process under section 14.389.
new text end

Sec. 3.

Minnesota Statutes 2006, section 116J.656, is amended to read:

116J.656 deleted text begin SMALL BUSINESS ACCESS TO FEDERAL RESEARCH FUNDS deleted text end new text begin
OFFICE OF TECHNOLOGY AND COMMERCIALIZATION new text end .

(a) deleted text begin The commissioner shall assist small businesses to access federal money through
the federal Small Business Innovation Research program and the Small Business
Technology Transfer program. deleted text end new text begin The commissioner shall establish within the department
an Office of Technology and Commercialization. The Office of Technology and
Commercialization shall serve as an intermediary to leverage and coordinate regional
public and private resources to maximize technology-related economic growth and
shall serve as an intermediary in assisting small businesses in forming alliances and
joint ventures with medium- and large-sized corporations. The office shall provide
entrepreneurial and innovation services to expand the competitiveness of high technology
companies. These services shall include, but not be limited to, technology training and
information exchange; assistance with federal funding sources, to include the small
business innovation research and small business technology transfer programs; and
assistance in forming alliances for technology development and commercialization. new text end In
providing deleted text begin this assistance deleted text end new text begin these services new text end , the commissioner shall maintain connections to
eligible federal programs, assess specific funding opportunities, review funding proposals,
provide referrals to specific consulting services, and hold training workshops throughout
the state.

(b) Unless prohibited by federal law, the commissioner must implement fees for
services that help companies seek federal Phase II Small Business Innovation Research
grants. The fees must be deposited in a special revenue account and are annually
appropriated to the commissioner for the small business innovation research and small
business technology transfer programs.

Sec. 4.

Minnesota Statutes 2006, section 116J.66, is amended to read:

116J.66 deleted text begin BUSINESS ASSISTANCE deleted text end new text begin OFFICE OF ENTREPRENEURSHIP AND
SMALL BUSINESS DEVELOPMENT new text end .

The commissioner shall establish within the department deleted text begin a business assistance center.
The center deleted text end new text begin an Office of Entrepreneurship and Small Business Development, which new text end shall
consist of new text begin : new text end

(1) deleted text begin a Bureau of Small Business which shall have as its sole function the provision
of assistance deleted text end new text begin an entrepreneurs network which shall serve as the state's central network
for entrepreneurs and small businesses to access qualified network member providers of
entrepreneurial and small business assistance, to access developed and shared business
information and research resources, and to develop policy recommendations that support
development of entrepreneurs and small businesses; new text end

new text begin (2) an entrepreneur and small business development center network which shall
operate a network of small business development centers throughout the state under a
cooperative agreement with the United States Small Business Administration pursuant to
United States Code, title 15, section 648;
new text end

new text begin (3) an Office of Business Information and Professional Services to provide
information and professional assistance and guidance new text end to small businesses in the state
deleted text begin and (2) deleted text end new text begin ;
new text end

new text begin (4) new text end a Bureau of Licenses to assist all businesses in obtaining state licenses and
permits deleted text begin . This center shall be accorded at least equal status with the other major operating
units within the department. deleted text end new text begin ; and
new text end

new text begin (5) an Office of Technology and Commercialization to provide entrepreneurial and
innovation services to high technology companies.
new text end

deleted text begin deleted text end

Sec. 5.

Minnesota Statutes 2006, section 116J.68, is amended to read:

116J.68 deleted text begin BUREAU OF SMALL BUSINESS deleted text end new text begin OFFICE OF BUSINESS
INFORMATION AND PROFESSIONAL SERVICES new text end .

Subdivision 1.

Generally new text begin ; definition new text end .

new text begin (a) new text end The deleted text begin Bureau of Small Business deleted text end new text begin Office of
Business Information and Professional Services new text end within the deleted text begin business assistance center deleted text end new text begin
Office of Entrepreneurship and Small Business Development new text end shall serve as a clearinghouse
and referral service for information needed by small businesses including small targeted
group businesses and small businesses located in an economically disadvantaged area.

new text begin (b) For purposes of this section, "office" means the Office of Business Information
and Professional Services.
new text end

Subd. 2.

Duties.

The deleted text begin bureau deleted text end new text begin office new text end shall:

deleted text begin (a) deleted text end new text begin (1) new text end provide information and assistance with respect to all aspects of business
planning and business management related to the start-up, operation, or expansion of
a small business in Minnesota;

deleted text begin (b) deleted text end new text begin (2) new text end refer persons interested in the start-up, operation, or expansion of a small
business in Minnesota to assistance programs sponsored by federal agencies, state
agencies, educational institutions, chambers of commerce, civic organizations, community
development groups, private industry associations, and other organizations or to the
business assistance referral system established by the deleted text begin Minnesota Project Outreach
Corporation deleted text end new text begin Office of Entrepreneurship and Small Business Development new text end ;

deleted text begin (c) deleted text end new text begin (3) new text end plan, develop, and implement a master file of information on small business
assistance programs of federal, state, and local governments, and other public and private
organizations so as to provide comprehensive, timely information to the deleted text begin bureau's deleted text end new text begin office's
new text end clients;

deleted text begin (d) deleted text end new text begin (4) new text end employ staff with adequate and appropriate skills and education and training
for the delivery of information and assistance;

deleted text begin (e) deleted text end new text begin (5) new text end seek out and utilize, to the extent practicable, contributed expertise and
services of federal, state, and local governments, educational institutions, and other public
and private organizations;

deleted text begin (f) deleted text end new text begin (6) new text end maintain a close and continued relationship with the director of the
procurement program within the Department of Administration so as to facilitate the
department's duties and responsibilities under sections 16C.16 to 16C.19 relating to the
small targeted group business and economically disadvantaged business program of the
state;

deleted text begin (g) deleted text end new text begin (7) new text end develop an information system which will enable the commissioner and other
state agencies to efficiently store, retrieve, analyze, and exchange data regarding small
business development and growth in the state. All executive branch agencies of state
government and the secretary of state shall to the extent practicable, assist the deleted text begin bureau deleted text end new text begin
office new text end in the development and implementation of the information system;

deleted text begin (h) deleted text end new text begin (8) new text end establish and maintain a toll free telephone number so that all small business
persons anywhere in the state can call the deleted text begin bureau deleted text end office for assistance. An outreach
program shall be established to make the existence of the deleted text begin bureau deleted text end new text begin office new text end well known to its
potential clientele throughout the state. If the small business person requires a referral
to another provider the deleted text begin bureau deleted text end new text begin office new text end may use the business assistance referral system
established by the deleted text begin Minnesota Project Outreach Corporation deleted text end new text begin Office of Entrepreneurship
and Small Business Development new text end ;

deleted text begin (i) deleted text end new text begin (9) new text end conduct research and provide data as required by the state legislature;

deleted text begin (j) deleted text end new text begin (10) new text end develop and publish material on all aspects of the start-up, operation, or
expansion of a small business in Minnesota;

deleted text begin (k) deleted text end new text begin (11) new text end collect and disseminate information on state procurement opportunities,
including information on the procurement process; new text begin and
new text end

deleted text begin (l) deleted text end new text begin (12) new text end develop a public awareness program through the use of newsletters, personal
contacts, and electronic and print news media advertising about state assistance programs
for small businesses, including those programs specifically for socially disadvantaged
small business persons deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (m) enter into agreements with the federal government and other public and private
entities to serve as the statewide coordinator or host agency for the federal small business
development center program under United States Code, title 15, section 648; and
deleted text end

deleted text begin (n) assist providers in the evaluation of their programs and the assessment of
their service area needs. The bureau may establish model evaluation techniques and
performance standards for providers to use.
deleted text end

Subd. 5.

Advisory board meetings.

(a) If compliance with section 13D.02 is
impractical, the Small Business Development Center Advisory Board, created pursuant
to United States Code, title 15, section 648, may conduct a meeting of its members by
telephone or other electronic means so long as the following conditions are met:

(1) all members of the board participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;

(2) members of the public present at the regular meeting location of the board can
hear clearly all discussion and testimony and all votes of members of the board and, if
needed, receive those services required by sections 15.44 and 15.441;

(3) at least one member of the board is physically present at the regular meeting
location; and

(4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.

(b) Each member of the board participating in a meeting by telephone or other
electronic means is considered present at the meeting for purposes of determining a
quorum and participating in all proceedings.

(c) If telephone or other electronic means is used to conduct a meeting, the board,
to the extent practical, shall allow a person to monitor the meeting electronically from a
remote location. The board may require the person making such a connection to pay for
documented marginal costs that the board incurs as a result of the additional connection.

(d) If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the board shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other electronic means, and of
the provisions of paragraph (c). The timing and method of providing notice is governed
by section 13D.04.

Sec. 6.

new text begin [116J.8749] SMALL BUSINESS PRODUCT DEVELOPMENT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of employment and economic
development shall implement a small business product development program to assist
entrepreneurs and businesses in demonstrating the feasibility of a technology or
completing new product development, leading to the commercialization of new products
though industry and research partnerships.
new text end

new text begin Subd. 2. new text end

new text begin Awards. new text end

new text begin Funds shall be awarded to entities that conduct research who
agree to provide these services to a specific business or entrepreneur.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin Applications must be coauthored by the business
or entrepreneur and must demonstrate commercial potential and time frames for
commercialization. Applications must be approved through an internal review committee
within the research institution to assess the technology and business plan prior to official
submission to the state entity.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin (a) Eligible institutions include, but are not limited to, all
Minnesota-based two- and four-year colleges and universities and other publicly funded
research organizations.
new text end

new text begin (b) Eligible businesses must be Minnesota-based with either headquarters or a
majority of operations in the state. If relocating, businesses must set up headquarters or
have a majority of its operations in the state within one year of award.
new text end

new text begin Subd. 5. new text end

new text begin Review board. new text end

new text begin The Department of Employment and Economic
Development will assemble a technical and business review board to evaluate the
applications.
new text end

new text begin Subd. 6. new text end

new text begin Limitations. new text end

new text begin Funds used for a single business may not exceed $25,000
per calendar year and must be matched dollar-for-dollar by the business with additional
cash or in-kind contributions. Up to 50 percent of the awards may be made to small
businesses that receive federal funding for research. Funds expended prior to the start of
the award will not be considered as match.
new text end

new text begin Subd. 7. new text end

new text begin Rules. new text end

new text begin The commissioner shall adopt rules for eligibility and other details
of the small business product development program, using the expedited process under
section 14.389.
new text end

Sec. 7.

new text begin [116J.9805] MAIN STREET REVITALIZATION GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Grants. new text end

new text begin (a) The Main Street revitalization grant program is created
to provide grants to eligible communities to increase business creation, promote business
retention, or make general, viable, economic improvements to eligible communities or
business districts within an eligible community.
new text end

new text begin (b) Eligible activities include, but are not limited to, rehabilitation, new construction,
demolition of buildings, financing for public infrastructure that benefits the business
district, the installation of new technology or equipment for business to either remain
or be more competitive.
new text end

new text begin (c) The Department of Employment and Economic Development shall administer
funds appropriated for the Main Street revitalization grant program as required under
section 116J.980.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin Targeted rural opportunity communities as defined in section
116J.03, subdivision 4, are eligible for a grant under this section. An application to
the small cities development program will be considered as an application to the Main
Street revitalization grant program if all other eligibility requirements for the Main Street
revitalization grant program are met.
new text end

new text begin Subd. 3. new text end

new text begin Application process. new text end

new text begin The commissioner shall award grants to eligible
communities based on an evaluation of economic and business-related needs, using
the same competitive application criteria, exclusive of the HUD federal objective
requirements, developed for the small cities development program. Funds shall be
disbursed to eligible communities according to the procedures used by the small cities
development program.
new text end

new text begin Subd. 4. new text end

new text begin Limitations. new text end

new text begin A grant may not exceed $600,000 per activity per eligible
applicant.
new text end

new text begin Subd. 5. new text end

new text begin Local match requirement. new text end

new text begin A local match shall be required for each grant
awarded, with preference given to projects that leverage private investment or nonstate
funding resources and do not use federal funds as a match.
new text end

new text begin Subd. 6. new text end

new text begin Carryforward. new text end

new text begin Any funds not allocated, obligated, or expended in a fiscal
year shall be available for allocation, obligation, or expenditure in the following fiscal year.
new text end

Sec. 8.

new text begin [116J.9825] COMMUNITY LEADERSHIP AND PLANNING
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of employment and economic
development shall establish the community leadership and planning program to award
grants to qualified organizations to support leadership development and planning.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin Grants are only available to targeted rural opportunity
communities, as defined in section 116J.03, subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Grants; limits. new text end

new text begin Grants must be awarded to organizations that have
demonstrated experience in implementing community leadership and planning programs.
Priority must be given to projects which will provide the intended services in rural
communities that otherwise would not have access to them. A grant must not exceed
$50,000.
new text end

new text begin Subd. 4. new text end

new text begin Use of funds. new text end

new text begin (a) Grants must be used for programs that:
new text end

new text begin (1) help rural community members increase members' leadership skills to address
community issues and needs;
new text end

new text begin (2) assist in evaluation of community assets, needs, and priorities;
new text end

new text begin (3) support an understanding of the community's place in the regional economy and
appropriate plans based on that understanding; and
new text end

new text begin (4) develop action plans that the communities can use for future growth and
improvement.
new text end

new text begin (b) The commissioner may award a portion of the funds for projects intended
for participation by multiple communities to facilitate leadership and planning among
communities with similar issues and regional interaction.
new text end

new text begin Subd. 5. new text end

new text begin Matching funds. new text end

new text begin The commissioner shall require that when state funds are
awarded, the grants must be matched by at least an equal amount of nonstate funds.
new text end

new text begin Subd. 6. new text end

new text begin Report required. new text end

new text begin The commissioner of employment and economic
development must report to the legislative chairs of the economic development policy
and finance committees, by September 1, 2009, on the first grant awards, the outcomes,
and recommendations for improvement in the program.
new text end

new text begin Subd. 7. new text end

new text begin Rules. new text end

new text begin The commissioner shall adopt rules for eligibility, use of funds,
and other details of the community leadership and planning program using the expedited
process under section 14.389.
new text end

Sec. 9.

Minnesota Statutes 2006, section 116L.02, is amended to read:

116L.02 JOB SKILLS PARTNERSHIP PROGRAM.

(a) The Minnesota Job Skills Partnership program is created to act as a catalyst to
bring together employers with specific training needs with educational or other nonprofit
institutions which can design programs to fill those needs. The partnership shall work
closely with employers to prepare, train and place prospective or incumbent workers in
identifiable positions as well as assisting educational or other nonprofit institutions in
developing training programs that coincide with current and future employer requirements.
The partnership shall provide grants to educational or other nonprofit institutions for
the purpose of training workers. A participating business must match the grant-in-aid
made by the Minnesota Job Skills Partnership. The match may be in the form of funding,
equipment, or faculty.

(b) The partnership program shall administer the health care and human services
worker training and retention program under sections 116L.10 to 116L.15.

(c) The partnership program is authorized to use funds to pay for training for
individuals who have incomes at or below 200 percent of the federal poverty line.
The board may grant funds to eligible recipients to pay for board-certified training.
Eligible recipients of grants may include public, private, or nonprofit entities that provide
employment services to low-income individuals.

new text begin (d) The partnership program shall administer the rural workforce innovation grant
program under section 116L.175.
new text end

Sec. 10.

new text begin [116L.175] RURAL WORKFORCE INNOVATION GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The rural workforce innovation grant program is created to
promote incumbent worker training at small businesses in rural Minnesota. This program
and the related grants and training will assist small businesses in increasing employee skill
development, worker productivity, and overall job security for trained workers.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) for the purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Incumbent worker" means an individual employed by a qualifying employer,
who is paid by that employer for at least 20 hours per week.
new text end

new text begin (c) "Qualifying employer" means a for-profit business or nonprofit organization
located in a targeted rural opportunity community as defined in section 116J.03,
subdivision 4, with at least one but no more than 50 full-time paid employees. Public
sector organizations are not considered qualifying employers.
new text end

new text begin (d) "Direct training services" are services provided by an accredited educational
program or institution. These services include, but are not limited to, occupational skills
training, customized training, entrepreneurial training, on-the-job training, and other
training that results in an industry-recognized credential.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin At the beginning of each fiscal year, the board shall make initial
grants to any number of local workforce investment boards using a competitive process.
The board shall spend at least 75 percent of its annual appropriation on these initial
grants. Following the initial allocation, the board may make subsequent grants at the
request of local workforce investment boards. The board shall make all grants based on
demonstrated need, likely impact, and other criteria as necessary.
new text end

new text begin Subd. 4. new text end

new text begin Use of funds. new text end

new text begin Local workforce investment boards shall use funds granted
under this section for direct training services at qualifying employers, to provide a
measurable increase in the job-related skills of participating incumbent workers. Local
workforce investment boards may also use funds to provide basic assessment, counseling,
and preemployment training services requested by the qualifying employer. No funds
may be used for support services as described in section 116L.17, subdivision 4, clause
(2). No funds may be used to pay or supplement the wages of a qualifying employer's
employees. No qualifying employer shall receive more than $50,000 per year for activities
under this section.
new text end

new text begin Subd. 5. new text end

new text begin Administrative costs. new text end

new text begin The board may spend, and allow local workforce
investment boards to spend, funds for administrative costs. The limits on these costs shall
be consistent with those established for other programs under the authority of the board.
new text end

new text begin Subd. 6. new text end

new text begin Matching funds requirement. new text end

new text begin The board may establish statewide
matching requirements for qualifying employers. Those requirements may include any or
all of the following: funding, equipment, or faculty. The board shall consult with local
workforce investment boards in establishing any statewide matching requirements.
new text end

new text begin Subd. 7. new text end

new text begin Accountability and performance measures. new text end

new text begin The board and the
commissioner of employment and economic development shall jointly develop
performance outcome measures and standards for this program. The commissioner and
the board shall consult with local workforce investment boards in establishing standards.
Measures, at a minimum, shall include posttraining retention, promotion, and wage
increase. The board and commissioner shall provide a report to the legislature by March 1
of each year regarding the previous fiscal year's program performance. Local workforce
investment boards shall provide all necessary data in a timely manner for the completion
of this report, as well as any interim reports required by the board.
new text end

Sec. 11. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 10 are effective the day following final enactment.
new text end

ARTICLE 4

VETERANS LOANS

Section 1.

new text begin [116J.996] MILITARY RESERVIST ECONOMIC INJURY LOANS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this
section.
new text end

new text begin (b) "Active service" has the meaning given in section 190.05.
new text end

new text begin (c) "Commissioner" means the commissioner of employment and economic
development.
new text end

new text begin (d) "Eligible business" means a small business, as defined in section 645.445, that
was operating in Minnesota on the date a military reservist received orders for active
service.
new text end

new text begin (e) "Essential employee" means a military reservist who is an owner or employee
of an eligible business and whose managerial or technical expertise is critical to the
day-to-day operation of the eligible business.
new text end

new text begin (f) "Military reservist" means a member of the reserve component of the armed
forces.
new text end

new text begin (g) "Reserve component of the armed forces" has the meaning given it in United
States Code, title 10, section 101(c).
new text end

new text begin (h) "Substantial economic injury" means an economic harm to an eligible business
that results in the inability of the eligible business to:
new text end

new text begin (1) meet its obligations as they mature;
new text end

new text begin (2) pay its ordinary and necessary operating expenses; or
new text end

new text begin (3) manufacture, produce, market, or provide a product or service ordinarily
manufactured, produced, marketed, or provided by the eligible business.
new text end

new text begin Subd. 2. new text end

new text begin Loan program. new text end

new text begin The commissioner may make onetime, interest-free loans
of up to $20,000 per borrower to eligible businesses that have sustained or are likely to
sustain substantial economic injury as a result of the call to active service for 180 days
or more of an essential employee. Loans must be made for the purpose of preventing,
remedying, or ameliorating the substantial economic injury.
new text end

new text begin Subd. 3. new text end

new text begin Revolving loan account. new text end

new text begin The commissioner shall use money appropriated
for the purpose to establish a revolving loan account. All repayments of loans made
under this section, including principal and interest, must be deposited into this account.
Interest earned on money in the account accrues to the account. Money in the account is
appropriated to the commissioner for purposes of the loan program created in this section,
including costs incurred by the commissioner to establish and administer the program.
new text end

new text begin Subd. 4. new text end

new text begin Rules. new text end

new text begin Using the expedited rulemaking procedures of section 14.389, the
commissioner shall develop and publish expedited rules for loan applications, use of
funds, needed collateral, terms of loans, and other details of military reservist economic
injury loans.
new text end

Sec. 2.

Minnesota Statutes 2007 Supplement, section 116L.17, subdivision 1, is
amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms
have the meanings given them in this subdivision.

(b) "Commissioner" means the commissioner of employment and economic
development.

(c) "Dislocated worker" means an individual who is a resident of Minnesota at the
time employment ceased or was working in the state at the time employment ceased and:

(1) has been permanently separated or has received a notice of permanent separation
from public or private sector employment and is eligible for or has exhausted entitlement
to unemployment benefits, and is unlikely to return to the previous industry or occupation;

(2) has been long-term unemployed and has limited opportunities for employment
or reemployment in the same or a similar occupation in the area in which the individual
resides, including older individuals who may have substantial barriers to employment by
reason of age;

(3) has been terminated or has received a notice of termination of employment as a
result of a plant closing or a substantial layoff at a plant, facility, or enterprise;

(4) has been self-employed, including farmers and ranchers, and is unemployed as a
result of general economic conditions in the community in which the individual resides
or because of natural disasters;

(5) has been permanently separated from employment in a restaurant, bar, or
lawful gambling organization from October 1, 2007, to October 1, 2009, due to the
implementation of any state law prohibiting smoking; deleted text begin or deleted text end

new text begin (6) is a veteran as defined by section 197.447, was deployed or discharged after
September 11, 2001, has been discharged or released from active duty under honorable
conditions, and is employed in a job which pays less than what the veteran could verifiably
earn, given additional marketable skills obtained during deployment; or
new text end

deleted text begin (6) deleted text end new text begin (7) new text end is a displaced homemaker. A "displaced homemaker" is an individual who
has spent a substantial number of years in the home providing homemaking service and
(i) has been dependent upon the financial support of another; and now due to divorce,
separation, death, or disability of that person, must find employment to self support; or (ii)
derived the substantial share of support from public assistance on account of dependents
in the home and no longer receives such support.

To be eligible under this clause, the support must have ceased while the worker
resided in Minnesota.

(d) "Eligible organization" means a state or local government unit, nonprofit
organization, community action agency, business organization or association, or labor
organization.

(e) "Plant closing" means the announced or actual permanent shutdown of a single
site of employment, or one or more facilities or operating units within a single site of
employment.

(f) "Substantial layoff" means a permanent reduction in the workforce, which is
not a result of a plant closing, and which results in an employment loss at a single site
of employment during any 30-day period for at least 50 employees excluding those
employees that work less than 20 hours per week.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2007 Supplement, section 268.047, subdivision 2, is
amended to read:

Subd. 2.

Exceptions for all employers.

Unemployment benefits paid will not be
used in computing the future tax rate of a taxpaying base period employer or charged to
the reimbursable account of a base period nonprofit or government employer that has
elected to be liable for reimbursements when:

(1) the applicant was discharged from the employment because of aggravated
employment misconduct as determined under section 268.095. This exception applies
only to unemployment benefits paid for periods after the applicant's discharge from
employment;

(2) an applicant's discharge from that employment occurred because a law required
removal of the applicant from the position the applicant held;

(3) the employer is in the tourist or recreation industry and is in active operation of
business less than 15 calendar weeks each year and the applicant's wage credits from the
employer are less than 600 times the applicable state or federal minimum wage;

(4) the employer provided regularly scheduled part-time employment to the
applicant during the applicant's base period and continues to provide the applicant with
regularly scheduled part-time employment during the benefit year of at least 90 percent
of the part-time employment provided in the base period, and is an involved employer
because of the applicant's loss of other employment. This exception terminates effective
the first week that the employer fails to meet the benefit year employment requirements.
This exception applies to educational institutions without consideration of the period
between academic years or terms;

(5) the employer is a fire department or firefighting corporation or operator of
a life-support transportation service, and continues to provide employment for the
applicant as a volunteer firefighter or a volunteer ambulance service personnel during the
benefit year on the same basis that employment was provided in the base period. This
exception terminates effective the first week that the employer fails to meet the benefit
year employment requirements;

(6) the applicant's unemployment from this employer was a direct result of the
condemnation of property by a governmental agency, a fire, flood, or act of nature,
where 25 percent or more of the employees employed at the affected location, including
the applicant, became unemployed as a result. This exception does not apply where the
unemployment was a direct result of the intentional act of the employer or a person acting
on behalf of the employer;

(7) the unemployment benefits were paid by another state as a result of the
transferring of wage credits under a combined wage arrangement provided for in section
268.131;

(8) the applicant stopped working because of a labor dispute at the applicant's
primary place of employment if the employer was not a party to the labor dispute;

(9) the unemployment benefits were determined overpaid unemployment benefits
under section 268.18; deleted text begin or deleted text end

(10) new text begin the applicant was employed as a replacement worker, for a period of six months
or longer, for an employee who is in the military reserve and was called for active duty
during the time the applicant worked as a replacement, and the applicant was laid off
because the employee returned to employment after active duty; or
new text end

new text begin (11) new text end the trust fund was reimbursed for the unemployment benefits by the federal
government.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 5

PUBLIC FACILITIES AUTHORITY

Section 1.

Minnesota Statutes 2007 Supplement, section 446A.072, subdivision 3,
is amended to read:

Subd. 3.

Program administration.

(a) The authority shall provide supplemental
assistance, as provided in subdivision 5a to governmental units:

(1) whose projects are listed on the Pollution Control Agency's project priority list;

(2) that demonstrate their projects are a cost-effective solution to an existing
environmental or public health problem; and

(3) whose projects are approved by the USDA/RECD or certified by the
commissioner of the Pollution Control Agency.

(b) For a governmental unit receiving grant funding from the USDA/RECD,
applications must be made to the USDA/RECD with additional information submitted to
the authority as required by the authority. Eligible project costs and affordability criteria
shall be determined by the USDA/RECD.

(c) For a governmental unit not receiving grant funding from the USDA/RECD,
application must be made to the authority on forms prescribed by the authority for the
clean water revolving fund program with additional information as required by the
authority. In accordance with section 116.182, the Pollution Control Agency shall:

(1) calculate the essential project component percentage which must be multiplied
by the total project cost to determine the eligible project cost; and

(2) review and certify approved projects to the authority.

(d) deleted text begin At the time funds are appropriated under this section, deleted text end new text begin Each fiscal year the
authority shall make funds available for projects based on their ranking on the Pollution
Control Agency's project priority list. new text end The authority shall reserve deleted text begin supplemental assistance deleted text end
new text begin funds new text end for deleted text begin projects in order of their rankings on the Pollution Control Agency's project
priority list and deleted text end new text begin a project when the applicant receives a funding commitment from the
United States Department of Agriculture Rural Development (USDA/RECD) or submits
plans and specifications to the Pollution Control Agency. Funds must be reserved new text end in an
amount based on deleted text begin their most recent deleted text end new text begin the project new text end cost deleted text begin estimates deleted text end new text begin estimate new text end submitted to the
authority deleted text begin or deleted text end new text begin prior to the appropriation of the funds and awarded in the amount reserved
or an amount based on new text end the as-bid costs, whichever is less.

Sec. 2.

Minnesota Statutes 2007 Supplement, section 446A.072, subdivision 5a,
is amended to read:

Subd. 5a.

Type and amount of assistance.

(a) For a governmental unit receiving
grant funding from the USDA/RECD, the authority shall provide assistance in the form
of a grant of up to deleted text begin one-half deleted text end new text begin 65 percent new text end of the eligible grant deleted text begin amount deleted text end new text begin need new text end determined by
USDA/RECD. A governmental unit may not receive a grant under this paragraph for more
than $4,000,000 or $15,000 per existing connection, whichever is less, unless specifically
approved by law. In the case of a sanitary district or other multijurisdictional project for
which the USDA/RECD is unable to fully fund deleted text begin up to one-half deleted text end new text begin its share new text end of the eligible grant
deleted text begin amount deleted text end new text begin need new text end , the authority may provide up to an additional $1,000,000 for each additional
governmental unit participating up to a maximum of $8,000,000 or $15,000 per existing
connection, whichever is less, but not to exceed the maximum grant level determined by
the USDA/RECD as needed to keep the project affordable.

(b) For a governmental unit not receiving grant funding from the USDA/RECD,
the authority shall provide assistance in the form of a loan for the eligible project costs
new text begin plus the outstanding balance on any existing wastewater system debt new text end that new text begin together new text end exceed
five percent of the market value of properties in the project service area, less the amount of
any other grant funding received by the governmental unit for the project. A governmental
unit may not receive a loan under this paragraph for more than $4,000,000 or $15,000 per
existing connection, whichever is less, unless specifically approved by law. In the case of
a sanitary district or other multijurisdictional project, the authority may provide a loan
under this paragraph for up to an additional $1,000,000 for each additional municipality
participating up to a maximum of $8,000,000 or $15,000 per existing connection,
whichever is less, unless specifically approved by law. A loan under this paragraph must
bear no interest, must be repaid as provided in subdivision 7, and must only be provided in
conjunction with a loan from the clean water revolving fund under section 446A.07.

(c) Notwithstanding the limits in paragraphs (a) and (b), for a governmental unit
receiving supplemental assistance under this section after January 1, 2002, if the authority
determines that the governmental unit's construction and installation costs are significantly
increased due to geological conditions of crystalline bedrock or karst areas and discharge
limits that are more stringent than secondary treatment, the authority shall provide
assistance in the form of half grant and half loan. Assistance from the authority may not
be more than $25,000 per existing connection. Any additional grant amount received for
the same project must be used to reduce the amount of the governmental unit's loan from
the new text begin clean new text end water deleted text begin pollution control deleted text end revolving fund that exceeds five percent of the market
value of properties in the project service area.

Sec. 3.

Minnesota Statutes 2007 Supplement, section 446A.086, is amended to read:

446A.086 STATE MAY GUARANTEE deleted text begin COUNTY deleted text end new text begin GOVERNMENTAL UNIT new text end
BUILDING DEBT; REPAYMENT.

Subdivision 1.

Definitions.

(a) As used in this section, the following terms have
the meanings given.

(b) "Authority" means the Minnesota Public Facilities Authority.

(c) "Commissioner" means the commissioner of finance.

(d) "Debt obligation" means new text begin : new text end

new text begin (1) new text end a general obligation bond issued by a county, a bond to which the general
obligation of a county is pledged under section 469.034, subdivision 2, or a bond payable
from a county lease obligation under section 641.24, to provide funds for the construction
of:

deleted text begin (1) deleted text end new text begin (i) new text end jails;

deleted text begin (2) deleted text end new text begin (ii) new text end correctional facilities;

deleted text begin (3) deleted text end new text begin (iii) new text end law enforcement facilities;

deleted text begin (4) deleted text end new text begin (iv) new text end social services and human services facilities;

deleted text begin (5) deleted text end new text begin (v) new text end solid waste facilities; or

deleted text begin (6) deleted text end new text begin (vi) new text end qualified housing development projects as defined in section 469.034,
subdivision 2 new text begin ; or
new text end

new text begin (2) a general obligation bond issued by a governmental unit and acquired under the
credit enhanced bond program established under section 446A.087 new text end .

Subd. 2.

Application.

(a) This section provides a state guarantee of the payment of
principal and interest on debt obligations if:

(1) the obligations are issued after June 30, 2000;

(2) application to the Public Facilities Authority is made before issuance; and

(3) the obligations are covered by an agreement meeting the requirements of
subdivision 3.

(b) Applications to be covered by the provisions of this section must be made in a
form and contain the information prescribed by the authority. Applications are subject to a
fee of $500 for deleted text begin the first deleted text end new text begin each new text end bond issue requested by the county deleted text begin and $250 for each bond
issue thereafter deleted text end new text begin or applicable fees under section 446A.087 new text end .

(c) Application fees paid under this section must be deposited in a separate deleted text begin county deleted text end new text begin
credit enhancement new text end bond guarantee account in the general fund. Money in the deleted text begin county deleted text end new text begin
credit enhancement new text end bond guarantee account is appropriated to the authority for purposes
of administering this section.

(d) Neither the authority nor the commissioner is required to promulgate
administrative rules under this section and the procedures and requirements established by
the authority or commissioner under this section are not subject to chapter 14.

Subd. 3.

Agreement.

(a) For specified debt obligations deleted text begin of a county deleted text end to be covered
by this section, the deleted text begin county deleted text end new text begin governmental unit new text end must enter an agreement with the authority
obligating the deleted text begin county deleted text end new text begin governmental unit new text end to be bound by this section.

(b) This agreement must be in a form prescribed by the authority and contain any
provisions required by the authority, including, at least, an obligation to:

(1) deposit with the paying agent three days before the date on which the payment is
due an amount sufficient to make that payment new text begin or ten days prior to the date a payment is
due on revenue bonds issued by the authority under section 446A.087 new text end ;

(2) notify the authority, if the deleted text begin county deleted text end new text begin governmental unit new text end will be unable to make all
or a portion of the payment; and

(3) include a provision in the bond resolution and county's agreement with the paying
agent for the debt obligation that requires the paying agent to inform the commissioner if
it becomes aware of a default or potential default in the payment of principal or interest
on that issue or if, on the day two business days before the date a payment is due on that
issue, there are insufficient funds to make the payment on deposit with the paying agent.

(c) Funds invested in a refunding escrow account established under section 475.67
that are to become available to the paying agent on a principal or interest payment date are
deemed to be on deposit with the paying agent three business days before the payment date.

(d) The provisions of an agreement under this subdivision are binding as to an issue
as long as any debt obligation of the issue remains outstanding.

(e) This section and the obligations of the state under this section are not a public debt
of the state under article XI, section 4, of the Minnesota Constitution, and the legislature
may, at any time, choose not to appropriate amounts under subdivision 4, paragraph (b).

Subd. 4.

Notifications; payment; appropriation.

(a) After receipt of a notice of a
default or potential default in payment of principal or interest in debt obligations covered
by this section or an agreement under this section, and after consultation with the deleted text begin county, deleted text end new text begin
governmental unit and new text end the paying agent, and after verification of the accuracy of the
information provided, the authority shall notify the commissioner of the potential default.
The notice must include a final figure as to the amount due that the deleted text begin county deleted text end new text begin governmental
unit new text end will be unable to repay on the date due.

(b) Upon receipt of this notice from the authority, the commissioner shall issue a
warrant and authorize the authority to pay to the new text begin bond holders or new text end paying agent for the
debt obligation the specified amount on or before the date due. The amounts needed
for the purposes of this subdivision are annually appropriated to the authority from the
general fund.

Subd. 5.

Interest on state paid amount.

If the state has paid part or all of the
principal or interest due on a deleted text begin county's deleted text end debt obligation, the amount paid bears interest
from the date paid by the state until the date of repayment. The interest rate is the
commissioner's invested cash rate as it is certified by the commissioner. Interest only
accrues on the amounts paid and outstanding less the reduction in aid under subdivision 7
and other payments received from the deleted text begin county deleted text end new text begin governmental unit new text end .

Subd. 6.

Pledge of deleted text begin county's deleted text end new text begin governmental unit's new text end full faith and credit.

If the
state has paid part or all of the principal or interest due on a deleted text begin county's deleted text end debt obligation,
the deleted text begin county's deleted text end new text begin governmental unit's new text end pledge of its full faith and credit and unlimited taxing
powers to repay the principal and interest due on those debt obligations becomes, without
an election or the requirement of a further authorization, a pledge of the full faith and
credit and unlimited taxing powers of the deleted text begin county deleted text end new text begin governmental unit new text end to repay to the state
the amount paid, with interest. Amounts paid by the state must be repaid in the order
in which the state payments were made.

Subd. 7.

Aid reduction for repayment.

(a) Except as provided in paragraph (b),
the commissioner may reduce, by the amount paid by the state under this section on behalf
of the deleted text begin county deleted text end new text begin governmental unit new text end , plus the interest due on the state payments, the deleted text begin county
program deleted text end new text begin local government new text end aid under deleted text begin section 477A.0124 deleted text end new text begin chapter 477A new text end . The amount of any
aid reduction reverts from the appropriate account to the state general fund.

(b) If, after review of the financial situation of the deleted text begin county deleted text end new text begin governmental unit new text end , the
authority advises the commissioner that a total reduction of the aids would cause an
undue hardship on the deleted text begin county deleted text end new text begin governmental unit new text end , the authority, with the approval of the
commissioner, may establish a different schedule for reduction of aids to repay the state.
The amount of aids to be reduced are decreased by any amounts repaid to the state by the
deleted text begin county deleted text end new text begin governmental unit new text end from other revenue sources.

Subd. 8.

Tax levy for repayment.

(a) With the approval of the authority, a deleted text begin county deleted text end new text begin
governmental unit new text end may levy in the year the state makes a payment under this section an
amount up to the amount necessary to provide funds for the repayment of the amount
paid by the state plus interest through the date of estimated repayment by the deleted text begin county deleted text end new text begin
governmental unit new text end . The proceeds of this levy may be used only for this purpose unless
they exceed the amount actually due. Any excess must be used to repay other state
payments made under this section or must be deposited in the debt redemption fund of
the deleted text begin county deleted text end new text begin governmental unit new text end . The amount of aids to be reduced to repay the state are
decreased by the amount levied.

(b) If the state is not repaid in full for a payment made under this section by
November 30 of the calendar year following the year in which the state makes the
payment, the authority shall require the deleted text begin county deleted text end new text begin governmental unit new text end to certify a property
tax levy in an amount up to the amount necessary to provide funds for repayment of the
amount paid by the state plus interest through the date of estimated repayment by the
deleted text begin county deleted text end new text begin governmental unit new text end . To prevent undue hardship, the authority may allow the deleted text begin county deleted text end new text begin
governmental unit new text end to certify the levy over a five-year period. The proceeds of the levy
may be used only for this purpose unless they are in excess of the amount actually due, in
which case the excess must be used to repay other state payments made under this section
or must be deposited in the debt redemption fund of the deleted text begin county deleted text end new text begin governmental unit new text end . If the
authority orders the deleted text begin county deleted text end new text begin governmental unit new text end to levy, the amount of aids reduced to repay
the state are decreased by the amount levied.

(c) A levy under this subdivision is an increase in the levy limits of the deleted text begin county deleted text end new text begin
governmental unit new text end for purposes of section 275.065, subdivision 6, and must be explained
as a specific increase at the meeting required under that provision.

Subd. 9.

Mandatory plan; technical assistance.

If the state makes payments on
behalf of a deleted text begin county deleted text end new text begin governmental unit new text end under this section or the deleted text begin county deleted text end new text begin governmental unit new text end
defaults in the payment of principal or interest on an outstanding debt obligation, it must
submit a plan to the authority for approval specifying the measures it intends to implement
to resolve the issues which led to its inability to make the payment and to prevent
further defaults. If the authority determines that a deleted text begin county's deleted text end new text begin governmental unit's new text end plan is
not adequate, the authority shall notify the deleted text begin county deleted text end new text begin governmental unit new text end that the plan has
been disapproved, the reasons for the disapproval, and that the state will not make future
payments under this section for debt obligations of the affected deleted text begin county deleted text end new text begin governmental unit new text end
issued after the date specified in that notice until its plan is approved. The authority may
also notify the deleted text begin county deleted text end new text begin governmental unit new text end that until its plan is approved, aids due the deleted text begin county deleted text end new text begin
governmental unit new text end will be withheld after a date specified in the notice.

Subd. 10.

Continuing disclosure agreements.

The authority may enter into written
agreements or contracts relating to the continuing disclosure of information needed to
facilitate the ability of deleted text begin counties deleted text end new text begin governmental units new text end to issue debt obligations according
to federal securities laws, rules, and regulations, including securities and exchange
commission rules and regulations, section 240.15c2-12. The agreements or contracts may
be in any form the authority deems reasonable and in the state's best interests.

Sec. 4.

new text begin [446A.087] CREDIT ENHANCED BOND PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of program. new text end

new text begin A credit enhanced bond program is
established for the purposes set forth in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The purpose of the credit enhanced bond program is to
provide loans to governmental units through the purchase of general obligation bonds
of governmental units issued to finance all or a portion of the costs of a project. The
program shall include providing credit enhancement to the general obligation bonds of the
governmental unit through the guarantee program as provided in section 446A.086. The
authority shall obtain funds to make the loans authorized pursuant to this section through
the issuance of its revenue bonds payable from loan repayments pledged to the bonds, and
such other sources and security as are specifically pledged by the authority.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) Terms used in this section have the meanings given to
them in this subdivision.
new text end

new text begin (b) "Applicant" means any governmental unit applying to the authority for a loan
pursuant to this section.
new text end

new text begin (c) "Borrower" means any governmental unit that has entered into a commitment
for the sale of its general obligation bonds to the authority pursuant to this section and
subsequently sells its general obligation bonds to the authority and enters into a regulatory
agreement.
new text end

new text begin (d) "Commitment" means a written agreement between a governmental unit and the
authority obligating the governmental unit to deliver its general obligation bonds to the
authority on a date in the future evidencing a loan pursuant to this section and to enter
into a regulatory agreement with the authority, all upon the terms and conditions set
forth in the commitment.
new text end

new text begin (e) "Eligible cost" means any cost of a project authorized by law to be financed from
the proceeds of general obligation bonds of a governmental unit.
new text end

new text begin (f) "General obligation bonds" means bonds or notes secured by the full faith and
credit and unlimited taxing powers of a governmental unit.
new text end

new text begin (g) "Project" means the construction, improvement, or rehabilitation of:
new text end

new text begin (1) wastewater facilities;
new text end

new text begin (2) drinking water facilities;
new text end

new text begin (3) storm water facilities;
new text end

new text begin (4) streets, street lighting, curbs, gutters, and sidewalks;
new text end

new text begin (5) energy conservation or alternative energy sources for use in public buildings or
facilities;
new text end

new text begin (6) telecommunications facilities;
new text end

new text begin (7) public safety buildings including those providing police and fire protection; or
new text end

new text begin (8) any publicly owned building or infrastructure improvement that has received
partial funding from grants awarded by the commissioner of employment and economic
development related to redevelopment, contaminated site cleanup, bioscience, small cities
development programs, and rural business infrastructure programs.
new text end

new text begin (h) "Regulatory agreement" means a written agreement entered into by the authority
and a borrower in connection with the purchase of the borrower's general obligation bonds
by the authority pursuant to this section.
new text end

new text begin Subd. 4. new text end

new text begin Establishment of fund and accounts. new text end

new text begin A credit enhancement bond
program fund is established for the purposes described in subdivision 2. Other accounts
may be established in the fund as necessary for its management and administration.
Money in the fund is annually appropriated to the authority and does not lapse. The fund
must be credited with investment income, and with repayments of principal and interest,
except for fees assessed under section 446A.04, subdivisions 5 and 15.
new text end

new text begin Subd. 5. new text end

new text begin Management of fund and accounts. new text end

new text begin The authority shall manage and
administer the credit enhancement bond program fund and individual accounts in the fund.
For those purposes, the authority may exercise all powers provided in this chapter.
new text end

new text begin Subd. 6. new text end

new text begin Applications. new text end

new text begin (a) Applicants for participation in the credit enhancement
bond program must submit an application to the authority on forms prescribed by the
authority. The applicant shall provide information customary to that needed for the
disclosure purposes in issuing general obligation bonds in the market, in addition to the
following information:
new text end

new text begin (1) the total estimated cost of the project and the amount of general obligation
bond proceeds sought;
new text end

new text begin (2) other sources of funding if the general obligation bond proceeds do not cover
the entire costs identified;
new text end

new text begin (3) the proposed sources of funds to be used for repayment of the general obligation
bonds;
new text end

new text begin (4) information showing the applicant's financial status and ability of the applicant
to repay loans;
new text end

new text begin (5) the proposed term and principal repayment schedule for the general obligation
bonds of the applicant; and
new text end

new text begin (6) the statutory authorization for the applicant to issue such general obligation
bonds, together with a statement that the statutory provision authorizes the use of proceeds
of such general obligation bonds to pay the costs of a project.
new text end

new text begin (b) The authority may establish deadlines or time periods for the submission of
applications to facilitate funding loans from the proceeds of a specific bond issue proposed
or previously issued by the authority, or the authority may accept applications from time
to time.
new text end

new text begin (c) Each application must be complete and accurate to be considered delivered to
and received by the authority or to be considered as having met any deadline established
by the authority with respect to an application period. If any application is determined by
the authority to be incomplete or inaccurate, the authority shall notify the applicant and
specify the missing or inaccurate information.
new text end

new text begin (d) The executive director and the staff of the authority shall evaluate the applications
to determine if the application should be accepted or rejected by the authority.
new text end

new text begin (e) The authority is not obligated to accept any application including those complete
and accurate and submitted by any specified deadline for submission if the authority
determines that it is not practicable to fund the loan for any reason including, but not
limited to, the creditworthiness of the applicant, the proposed loan amount, the term
and repayment schedule, the sources of funding available to the authority, and current
market conditions. Upon acceptance and approval of an application by the authority, the
authority may require that the applicant authorize, execute, and deliver a commitment to
the authority within such time period specified by the authority in its acceptance of the
application. The authority may reject an approved application for failure by the applicant
to authorize, execute, and deliver a commitment by the specified deadline.
new text end

new text begin Subd. 7. new text end

new text begin Loan terms and conditions. new text end

new text begin (a) The terms and conditions of loans
provided by the authority pursuant to the credit enhanced bond program are as provided
by this section, any applicable bond resolution or series bond resolution of the authority,
any trust indenture pursuant to which any series of bonds of the authority are issued,
the regulatory agreement, the commitment and the general obligation bond, and the
authorizing resolution of the borrower.
new text end

new text begin (b) The loan must be made by the authority through its purchase of the general
obligation bond of the borrower. The borrower shall provide the authority with the
opinion of nationally recognized bond counsel as to the valid authorization, issuance, and
enforceability of the general obligation bond of the borrower, and the exclusion of interest
thereon from gross income for the purposes of federal taxation, subject to customary
qualifications. The general obligation bond of the borrower may pledge other specified
sources of revenues for repayment to the extent permitted or required by law, in addition
to the full faith and credit and unlimited taxing powers of the borrower.
new text end

new text begin (c) The authority may disburse the proceeds of the loan as a single payment for the
general obligation bond or from time to time pursuant to draw requests if the general
obligation bond of the borrower is structured as a periodic drawdown bond. In the event
the authority pays for the general obligation bond in a single payment, the borrower
shall establish a project account and disburse the proceeds of its general obligation bond
solely for costs of the project approved in its application pursuant to such additional
requirements specified in the regulatory agreement.
new text end

new text begin (d) In order to facilitate the issuance of the authority's revenue bonds to finance
a pool of loans to different borrowers, the authority may require the borrower in the
commitment to issue its general obligation bond on a date certain in the future, and
may require the borrower to pay the costs incurred by the authority as a result of the
borrower's failure to deliver its general obligation bond as required by the commitment.
The commitment may also require the borrower to provide to the authority full disclosure
of all material facts and financial information relating to the borrower that would be
required if the borrower issued its general obligation bond to the public, certified as to
completeness and accuracy by authorized officers of the borrower, and authorization for
the authority to use such information in connection with the sale of the authority's revenue
bonds or disclosure relating to the authority's revenue bonds.
new text end

new text begin (e) In addition to delivering its general obligation bond, each borrower shall enter
into a regulatory agreement with the authority providing additional terms of the loan
as the authority may specify, including providing to the authority periodic reports and
information relating to the acquisition or construction of the project and use of the
proceeds of the borrower's general obligation bond and periodic operating, financial, and
other information as to the creditworthiness of the borrower, and providing and filing
continuing secondary market disclosure to the extent required by the authority.
new text end

new text begin (f) The purchase or commitment to purchase general obligation bonds of borrowers
by the authority shall be subject to the availability of proceeds of revenue bonds of the
authority for such purpose and the authority is not liable to any borrower for the failure to
purchase its general obligation bond pursuant to a commitment or any other agreement if
proceeds of the authority's revenue bonds are not available for any reason.
new text end

new text begin Subd. 8. new text end

new text begin Interest rate determination. new text end

new text begin The rate of interest on the general obligation
bonds of the borrower must be the true interest cost on the revenue bonds of the authority
issued to purchase such general obligation bonds of the borrower plus the ongoing
percentage fee charged by the authority under subdivision 10; provided that the interest
rate must not exceed any limit imposed by federal tax law with respect to the authority's
revenue bonds.
new text end

new text begin Subd. 9. new text end

new text begin Market considerations. new text end

new text begin The authority may suspend offering loans if it is
determined by the executive director that there are extreme or unusual events impacting
the bond market and that to continue making loans would be detrimental to holders of the
authority's revenue bonds or the financial viability of the credit enhanced bond program,
or if the state is warned by one of its rating agencies that continuing to make loans will
result in lowering the state's bond rating. If the making of loans is suspended under this
section, the authority shall have the option to resume making loans once it has determined
that the conditions for suspending the program no longer exist.
new text end

new text begin Subd. 10. new text end

new text begin Fees. new text end

new text begin The authority shall charge a nonrefundable application fee of
$1,000 payable by each applicant upon submission of an application to the authority. A
separate application fee must be payable for each application submitted, including a
resubmitted application for an application that was rejected by the authority or determined
to be incomplete or inaccurate by the authority. The authority shall charge an ongoing
periodic fee of ten basis points of the outstanding principal amount of the loan to be added
to, and be a component of, the interest rate on the general obligation bonds of the borrower.
new text end

new text begin Subd. 11. new text end

new text begin Authority revenue bonds. new text end

new text begin (a) The authority is authorized to issue
revenue bonds as provided in this chapter to fund the credit enhanced bond program.
The revenue bonds may be issued in one or more series pursuant to a resolution of the
authority or a series resolution or pursuant to a trust indenture with a financial institution
with trust powers as trustee, authorized by resolution of the authority. Any issue of bonds
may be used to fund one or more loans, may be payable by the loans funded from such
issue of bonds and such additional loans as pledged by the authority, and may be payable
on a subordinated basis to other bonds. As permitted by the terms of any revenue bonds
issued by the authority, the authority may sell the general obligations pledged to the
payment of the revenue bonds and any proceeds of the sale in excess of those used to pay
the principal of the revenue bonds must be deposited to the credit enhanced bond program
fund and may be used to purchase additional general obligation bonds of borrowers, to
provide credit enhancement for the authority's revenue bonds, or to pay any other expense
of the credit enhanced bond program.
new text end

new text begin (b) The authority may issue short-term bonds in anticipation of issuing long-term
bonds for the purpose of acquiring general obligation bonds of borrowers.
new text end

new text begin (c) Bonds issued by the authority for the credit enhanced bond program must not
be general obligations of the authority to the payment of which the general assets of the
authority are pledged or available for payment. All bonds issued for the credit enhanced
bond programs by the authority must be revenue bonds payable solely from the sources
specified in the bond.
new text end

new text begin Subd. 12. new text end

new text begin Reports, disclosure, audits. new text end

new text begin (a) During the term of the loan the borrower
shall provide written reports to the authority. The content and timing of these reports must
be as specified in the regulatory agreement.
new text end

new text begin (b) During the term of the loan the borrower shall disclose to the authority any
material information or events adversely affecting the creditworthiness of the borrower
as specified in the regulatory agreement. If required by the authority in a regulatory
agreement, the borrower shall enter into a continuing disclosure undertaking to provide
disclosure to the market.
new text end

new text begin (c) During the term of the loan, the borrower shall provide to the authority on an
annual basis financial statements of the borrower audited by an independent accounting
firm, as further specified in the regulatory agreement.
new text end

Sec. 5.

Minnesota Statutes 2006, section 446A.12, subdivision 1, is amended to read:

Subdivision 1.

Bonding authority.

The authority may issue negotiable bonds in a
principal amount that the authority determines necessary to provide sufficient funds for
achieving its purposes, including the making of loans and purchase of securities, the
payment of interest on bonds of the authority, the establishment of reserves to secure
its bonds, the payment of fees to a third party providing credit enhancement, and the
payment of all other expenditures of the authority incident to and necessary or convenient
to carry out its corporate purposes and powers, but not including the making of grants.
Bonds of the authority may be issued as bonds or notes or in any other form authorized
by law. The principal amount of bonds issued and outstanding under this section at any
time may not exceed $1,500,000,000, excluding bonds for which refunding bonds or
crossover refunding bonds have been issued deleted text begin . deleted text end new text begin , and excluding any bonds issued for the
credit enhanced bond program or refunding or crossover refunding bonds issued under the
program. The principal amount of bonds issued and outstanding under section 446A.087,
may not exceed $500,000,000, excluding bonds for which refunding bonds or crossover
refunding bonds have been issued.
new text end