HF 1835

1st Committee Engrossment - 86th Legislature (2009 - 2010) Posted on 03/19/2013 07:29pm

1.1A bill for an act

1.2relating to workforce development; reducing appropriations for higher education
1.3and economic development; modifying loan, grant, and scholarship provisions;
1.4increasing bond limits; establishing a central system office; governing credit
1.5transfers; requiring bond issues for projects; establishing a pilot project;
1.6modifying investment of mineral fund; making technical changes; renaming
1.7certain centers and funds; adjusting distributions; modifying certain Board
1.8of Barber Examiners provisions; adjusting fees; requiring reports;amending
1.9Minnesota Statutes 2008, sections 136A.121, subdivision 6; 136A.1701,
1.10subdivision 4; 136A.29, subdivision 9; 154.06; 154.065, subdivision 2; 154.07,
1.11by adding a subdivision; 154.15, by adding a subdivision; 326B.148, subdivision
1.121; Minnesota Statutes 2009 Supplement, sections 136A.121, subdivision 9;
1.13136F.98, subdivision 1; 154.002; 154.003; 155A.23, by adding a subdivision;
1.14155A.24, subdivision 2, by adding subdivisions; 155A.25; 298.294; 299A.45,
1.15subdivision 1; Laws 2009, chapter 78, article 1, section 3, subdivision 2; article
1.167, section 2; Laws 2009, chapter 95, article 1, sections 3, subdivisions 6,
1.1721; 5, subdivision 2; proposing coding for new law in Minnesota Statutes,
1.18chapters 136A; 136F; repealing Minnesota Statutes 2008, sections 136A.127,
1.19subdivisions 1, 3, 5, 6, 7, 10, 11; 154.07, subdivision 5; 176.135, subdivision 1b;
1.20Minnesota Statutes 2009 Supplement, sections 135A.61; 136A.121, subdivision
1.219b; 136A.127, subdivisions 2, 4, 9, 9b, 10a, 14.
1.22BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.23ARTICLE 1

1.24HIGHER EDUCATION APPROPRIATIONS

1.25	Section 1. SUMMARY OF APPROPRIATIONS.

1.26    Subdivision 1. Summary Total. The amounts shown in this section summarize
1.27direct appropriations, by fund, made in this article.

1.28			2010		2011		Total
1.29	General	$	1,410,000	$	(48,155,000)	$	(46,745,000)
1.30	Total	$	1,410,000	$	(48,155,000)	$	(46,745,000)

2.1    Subd. 2. Summary by Agency - All Funds. The amounts shown in this subdivision
2.2summarize direct appropriations, by agency, made in this article.

2.3			2010		2011		Total
2.4 2.5	Minnesota Office of Higher Education	$	1,410,000	$	(1,568,000)	$	(158,000)
2.6 2.7 2.8	Board of Trustees of the Minnesota State Colleges and Universities		-0-		(10,467,000)		(10,467,000)
2.9 2.10	Board of Regents of the University of Minnesota		-0-		(36,120,000)		(36,120,000)
2.11	Total	$	1,410,000	$	(48,155,000)	$	(46,745,000)

2.12	Sec. 2. APPROPRIATIONS.

2.13The sums shown in the columns marked "Appropriations" are added to or, if shown
2.14in parentheses, subtracted from the appropriations in Laws 2009, chapter 95, article 1, to
2.15the agencies and for the purposes specified in this article. The appropriations are from the
2.16general fund, or another named fund, and are available for the fiscal years indicated for
2.17each purpose. The figures "2010" and "2011" used in this article mean that the addition
2.18to or subtraction from the appropriation listed under them is available for the fiscal year
2.19ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
2.20reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
2.21day following final enactment.

2.22				APPROPRIATIONS
2.23				Available for the Year
2.24				Ending June 30
2.25					2010		2011

2.26

Sec. 3. OFFICE OF HIGHER EDUCATION

2.27

Subdivision 1.Total Appropriation

$

1,410,000

$

(1,568,000)

2.28The amounts that may be spent for each
2.29purpose are specified in the following
2.30subdivisions.

2.31

Subd. 2.State Grants

-0-

(1,487,000)

2.32The tuition maximum for fiscal year 2011
2.33for students in two-year programs and for
2.34students in private, for-profit, four-year
2.35programs is $5,364.
3.1Financial aid changes in this article are
3.2expected to achieve savings available to
3.3the state grant program for fiscal year 2011
3.4as a result of reducing tuition maximums,
3.5eliminating eligibility for a ninth semester,
3.6and eliminating the high school-to-college
3.7developmental transition program grants.
3.8Any additional savings necessary to make
3.9grants in fiscal year 2011 must be achieved
3.10through the application of Minnesota
3.11Statutes, section 136A.121, subdivision 7.
3.12This is a onetime reduction.

3.13

Subd. 3.Interstate Tuition Reciprocity

1,487,000

-0-

3.14

Subd. 4.Agency Administration

(77,000)

(81,000)

3.15 3.16 3.17

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

3.18

Subdivision 1.Total Appropriation

$

-0-

$

(10,467,000)

3.19The amounts that must be reduced or
3.20added for each purpose are specified in the
3.21following subdivisions.

3.22 3.23

Subd. 2.Central Office and Shared Services Unit

-0-

(3,000,000)

3.24Reductions under this subdivision must not
3.25be allocated to any institution and must not
3.26be charged back to any campus or institution.

3.27

Subd. 3.Operations and Maintenance

-0-

(7,467,000)

3.28Each institution must reduce administrative
3.29budgets by at least ten percent. The
3.30remaining reductions must be allocated
3.31proportionately to all institutions to minimize
3.32the impact on students and instruction.
4.1For fiscal years 2012 and 2013, the base for
4.2operations and maintenance is $597,467,000
4.3each year.

4.4

Subd. 4.Cook County Higher Education

4.5$40,000 in fiscal year 2010 and $40,000 in
4.6fiscal year 2011 appropriated by Laws 2009,
4.7chapter 95, article 1, section 4, to the board
4.8of trustees for operations and maintenance is
4.9for Cook County higher education.

4.10 4.11

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

4.12

Subdivision 1.Total Appropriation

$

-0-

$

(36,120,000)

4.13The amounts that must be reduced or
4.14added for each purpose are specified in the
4.15following subdivisions.

4.16

Subd. 2.Operations and Maintenance

-0-

(32,223,000)

4.17The legislature intends that reductions under
4.18this subdivision are achieved through at least
4.19a ten percent reduction to administrative
4.20budgets, distributed proportionately to the
4.21Twin Cities campus and the other campuses
4.22of the University of Minnesota. Remaining
4.23reductions must be made to minimize the
4.24impact on students and instruction.
4.25Reductions under this subdivision must not
4.26be allocated to the University of Minnesota
4.27and Mayo Foundation Partnership.
4.28For fiscal years 2012 and 2013, the base for
4.29operations and maintenance is $566,882,000
4.30each year.

4.31

Subd. 3.Special Appropriations

4.32

(a) Agriculture and Extension Service

-0-

(2,787,000)

4.33

(b) Health Sciences

-0-

(281,000)

5.1$18,000 in fiscal year 2011 is a reduction to
5.2the appropriation to support up to 12 resident
5.3physicians in the St. Cloud Hospital family
5.4practice residency program.
5.5Reductions under this paragraph for
5.6the graduate family medicine education
5.7programs at Hennepin County Medical
5.8Center must be proportional to other
5.9reductions under this paragraph.

5.10

(c) Institute of Technology

-0-

(74,000)

5.11

(d) System Special

-0-

(328,000)

5.12 5.13

(e) University of Minnesota and Mayo Foundation Partnership

-0-

(427,000)

5.14    Sec. 6. Minnesota Statutes 2008, section 136A.121, subdivision 6, is amended to read:
5.15    Subd. 6. Cost of attendance. (a) The recognized cost of attendance consists of
5.16allowances specified in law for living and miscellaneous expenses, and an allowance
5.17for tuition and fees equal to the lesser of the average tuition and fees charged by the
5.18institution, or the tuition and fee maximums established in law, or for students in two-year
5.19or four-year private, for-profit programs, the maximum tuition and fee amount for a public
5.20two-year institution.
5.21(b) For a student registering for less than full time, the office shall prorate the cost of
5.22attendance to the actual number of credits for which the student is enrolled.
5.23(c) The recognized cost of attendance for a student who is confined to a Minnesota
5.24correctional institution shall consist of the tuition and fee component in paragraph (a),
5.25with no allowance for living and miscellaneous expenses.
5.26(d) For the purpose of this subdivision, "fees" include only those fees that are
5.27mandatory and charged to full-time resident students attending the institution. Fees do
5.28not include charges for tools, equipment, computers, or other similar materials where the
5.29student retains ownership. Fees include charges for these materials if the institution retains
5.30ownership. Fees do not include optional or punitive fees.
5.31EFFECTIVE DATE.This section is effective the day following final enactment.

5.32    Sec. 7. Minnesota Statutes 2009 Supplement, section 136A.121, subdivision 9, is
5.33amended to read:
6.1    Subd. 9. Awards. An undergraduate student who meets the office's requirements
6.2is eligible to apply for and receive a grant in any year of undergraduate study unless the
6.3student has obtained a baccalaureate degree or previously has been enrolled full time or
6.4the equivalent for nine eight semesters or the equivalent, excluding courses taken from a
6.5Minnesota school or postsecondary institution which is not participating in the state grant
6.6program and from which a student transferred no credit. A student who withdraws from
6.7enrollment for active military service, or for a major illness, while under the care of a
6.8medical professional, that substantially limits the student's ability to complete the term is
6.9entitled to an additional semester or the equivalent of grant eligibility. A student enrolled
6.10in a two-year program at a four-year institution is only eligible for the tuition and fee
6.11maximums established by law for two-year institutions.
6.12EFFECTIVE DATE.This section is effective the day following final enactment.

6.13    Sec. 8. [136A.129] LEGISLATIVE NOTICE.
6.14The office shall notify the chairs of the legislative committees with primary
6.15jurisdiction over higher education finance of any proposed material change to the
6.16administration of any of the grant or financial aid programs in sections 136A.095 to
6.17136A.128.

6.18    Sec. 9. Minnesota Statutes 2008, section 136A.1701, subdivision 4, is amended to read:
6.19    Subd. 4. Terms and conditions of loans. (a) The office may loan money upon such
6.20terms and conditions as the office may prescribe. The Under the SELF IV program, the
6.21principal amount of a loan to an undergraduate student for a single academic year shall
6.22not exceed $6,000 for grade levels 1 and 2 effective July 1, 2006, through June 30, 2007.
6.23Effective July 1, 2007, the principal amount of a loan for grade levels 1 and 2 shall not
6.24exceed $7,500. The principal amount of a loan for grade levels 3, 4, and 5 shall not exceed
6.25$7,500 effective July 1, 2006 $7,500 per grade level. The aggregate principal amount of
6.26all loans made under this section to an undergraduate student shall not exceed $34,500
6.27through June 30, 2007, and $37,500 after June 30, 2007. The principal amount of a loan
6.28to a graduate student for a single academic year shall not exceed $9,000. The aggregate
6.29principal amount of all loans made under this section to a student as an undergraduate
6.30and graduate student shall not exceed $52,500 through June 30, 2007, and $55,500
6.31after June 30, 2007. The amount of the loan may not exceed the cost of attendance less
6.32all other financial aid, including PLUS loans or other similar parent loans borrowed on
6.33the student's behalf. The cumulative SELF loan debt must not exceed the borrowing
6.34maximums in paragraph (b).
7.1(b) The cumulative undergraduate borrowing maximums for SELF IV loans are:
7.2(1) effective July 1, 2006, through June 30, 2007:
7.3(i) grade level 1, $6,000;
7.4(ii) grade level 2, $12,000;
7.5(iii) grade level 3, $19,500;
7.6(iv) grade level 4, $27,000; and
7.7(v) grade level 5, $34,500; and
7.8(2) effective July 1, 2007:
7.9(i) grade level 1, $7,500;
7.10(ii) (2) grade level 2, $15,000;
7.11(iii) (3) grade level 3, $22,500;
7.12(iv) (4) grade level 4, $30,000; and
7.13(v) (5) grade level 5, $37,500.
7.14(c) The principal amount of a SELF V or subsequent phase loan to students enrolled
7.15in a bachelor's degree program, postbaccalaureate, or graduate program must not exceed
7.16$10,000 per grade level. For all other eligible students, the principal amount of the loan
7.17must not exceed $7,500 per grade level. The aggregate principal amount of all loans
7.18made under this section to a student as an undergraduate and graduate student must not
7.19exceed $70,000. The amount of the loan must not exceed the cost of attendance less
7.20all other financial aid, including PLUS loans or other similar parent loans borrowed on
7.21the student's behalf. The cumulative SELF loan debt must not exceed the borrowing
7.22maximums in paragraph (d).
7.23(d)(1) The cumulative borrowing maximums for SELF V loans and subsequent
7.24phases for students enrolled in a bachelor's degree program or postbaccalaureate program
7.25are:
7.26(i) grade level 1, $10,000;
7.27(ii) grade level 2, $20,000;
7.28(iii) grade level 3, $30,000;
7.29(iv) grade level 4, $40,000; and
7.30(v) grade level 5, $50,000.
7.31(2) For graduate level students, the borrowing limit is $10,000 per nine-month
7.32academic year, with a cumulative maximum for all SELF loan debt of $70,000.
7.33(3) For all other eligible students, the cumulative borrowing maximums for SELF V
7.34loans and subsequent phases are:
7.35(i) grade level 1, $7,500;
7.36(ii) grade level 2, $15,000;
8.1(iii) grade level 3, $22,500;
8.2(iv) grade level 4, $30,000; and
8.3(v) grade level 5, $37,500.

8.4    Sec. 10. Minnesota Statutes 2008, section 136A.29, subdivision 9, is amended to read:
8.5    Subd. 9. Revenue bonds; limit. The authority is authorized and empowered
8.6to issue revenue bonds whose aggregate principal amount at any time shall not exceed
8.7$950,000,000 $1,300,000,000 and to issue notes, bond anticipation notes, and revenue
8.8refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42,
8.9to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling,
8.10renovating, improving, furnishing, or equipping one or more projects or parts thereof.
8.11EFFECTIVE DATE.This section is effective the day following final enactment.

8.12    Sec. 11. [136F.08] CENTRAL SYSTEM OFFICE.
8.13    Subdivision 1. Establishment. A central system office is established for the
8.14Minnesota State Colleges and Universities to provide central support to the institutions
8.15enrolling students and to assist the board in fulfilling its missions under section 136F.05.
8.16The central office must not assume responsibility for services that are most effectively
8.17and efficiently provided at the institution level. The central system office is under the
8.18direction of the chancellor.
8.19    Subd. 2. General duties. The central system office must coordinate system level
8.20responsibilities for financial management, personnel management, facilities management,
8.21information technology, credit transfer, legal affairs, government relations, and auditing.
8.22The central system office shall coordinate its services with the services provided at the
8.23institution level so as not to duplicate any functions that are provided by institutions.

8.24    Sec. 12. [136F.302] CREDIT TRANSFER.
8.25The board of trustees must develop and maintain a systemwide effective and
8.26efficient mechanism for seamless student transfer between system institutions that has a
8.27goal of minimal loss of credits for transferring students. The Degree Audit and Reporting
8.28System (DARS) and u.select database (and successor databases) housed within the office
8.29of the chancellor shall be the official repository of course equivalencies between system
8.30colleges and universities. Each system college and university shall be responsible for
8.31ensuring the accuracy and completeness of course equivalencies listed for courses offered
8.32by that college or university. The development and maintenance of the system must, at a
8.33minimum, address the following:
9.1(1) alignment of institution curriculum and its communication to stakeholders;
9.2(2) transfer between similar programs;
9.3(3) documentation for transfer-related agreements between institutions;
9.4(4) systemwide transfer information on the Internet that is easily accessible and
9.5maintained in a current and accurate status;
9.6(5) training for campus-level staff to provide accurate and consistent advice to
9.7students;
9.8(6) institutional rather than student obligation to provide prompt required
9.9documentation for course equivalency determinations; and
9.10(7) consistency of transfer policies among institutions in compliance with a system
9.11policy.

9.12    Sec. 13. Minnesota Statutes 2009 Supplement, section 136F.98, subdivision 1, is
9.13amended to read:
9.14    Subdivision 1. Issuance of bonds. The Board of Trustees of the Minnesota State
9.15Colleges and Universities or a successor may issue revenue bonds under sections 136F.90
9.16to 136F.97 whose aggregate principal amount at any time may not exceed $200,000,000
9.17$275,000,000, and payable from the revenue appropriated to the fund established by
9.18section 136F.94, and use the proceeds together with other public or private money that
9.19may otherwise become available to acquire land, and to acquire, construct, complete,
9.20remodel, and equip structures or portions thereof to be used for dormitory, residence hall,
9.21student union, food service, parking purposes, or for any other similar revenue-producing
9.22building or buildings of such type and character as the board finds desirable for the good
9.23and benefit of the state colleges and universities. Before issuing the bonds or any part
9.24of them, the board shall consult with and obtain the advisory recommendations of the
9.25chairs of the house of representatives Ways and Means Committee and the senate Finance
9.26Committee about the facilities to be financed by the bonds.

9.27    Sec. 14. Minnesota Statutes 2009 Supplement, section 299A.45, subdivision 1, is
9.28amended to read:
9.29    Subdivision 1. Eligibility. A person is eligible to receive educational benefits under
9.30this section if the person:
9.31    (1) is certified under section 299A.44 and in compliance with this section and rules
9.32of the commissioner of public safety and the Minnesota Office of Higher Education;
9.33    (2) is enrolled in an undergraduate degree or certificate program after June 30, 1990,
9.34at an eligible Minnesota institution as provided in section 136A.101, subdivision 4;
10.1    (3) has not received a baccalaureate degree or been enrolled full time for nine
10.2eight semesters or the equivalent, except that a student who withdraws from enrollment
10.3for active military service is entitled to an additional semester or the equivalent of
10.4eligibility; and
10.5    (4) is related in one of the following ways to a public safety officer killed in the
10.6line of duty on or after January 1, 1973:
10.7    (i) as a dependent child less than 23 years of age;
10.8    (ii) as a surviving spouse; or
10.9    (iii) as a dependent child less than 30 years of age who has served on active military
10.10duty 181 consecutive days or more and has been honorably discharged or released to the
10.11dependent child's reserve or National Guard unit.

10.12    Sec. 15. Laws 2009, chapter 95, article 1, section 3, subdivision 6, is amended to read:

10.13

Subd. 6.Achieve Scholarship Program

4,350,000

4,350,000

10.14For scholarships under Minnesota Statutes,
10.15section 136A.127, the office shall transfer
10.16the appropriation for fiscal year 2011 to the
10.17appropriation for state grants .

10.18    Sec. 16. Laws 2009, chapter 95, article 1, section 3, subdivision 21, is amended to read:

10.19

Subd. 21.Transfers

10.20The Minnesota Office of Higher Education
10.21may transfer unencumbered balances from
10.22the appropriations in this section to the state
10.23grant appropriation, the interstate tuition
10.24reciprocity appropriation, the child care
10.25grant appropriation, the Indian scholarship
10.26appropriation, the state work-study
10.27appropriation, the achieve scholarship
10.28appropriation, the public safety officers'
10.29survivors appropriation, and the Minnesota
10.30college savings plan appropriation. Transfers
10.31from the state grant, child care, or state
10.32work-study appropriations may only be made
10.33to the extent there is a projected surplus in
11.1the appropriation. A transfer may be made
11.2only with prior written notice to the chairs
11.3of the senate and house of representatives
11.4committees with jurisdiction over higher
11.5education finance.
11.6EFFECTIVE DATE.This section is effective the day following final enactment.

11.7    Sec. 17. Laws 2009, chapter 95, article 1, section 5, subdivision 2, is amended to read:

11.8

Subd. 2.Operations and Maintenance

550,345,000

604,239,000

11.9(a) This appropriation includes funding for
11.10operation and maintenance of the system.
11.11(b) The Board of Regents shall submit
11.12expenditure reduction plans by March 15,
11.132010, to the committees of the legislature
11.14with responsibility for higher education
11.15finance to achieve the 2012-2013 base
11.16established in this section. The plan must
11.17focus on protecting direct instruction.
11.18(c) Appropriations under this subdivision
11.19may be used for a new scholarship under
11.20Minnesota Statutes, section 137.0225, to
11.21complement the University's Founders
11.22scholarship.
11.23(d) This appropriation includes amounts for
11.24an Ojibwe Indian language program on the
11.25Duluth campus.
11.26(e) This appropriation includes money for the
11.27Dakota language teacher training immersion
11.28program on the Twin Cities campus to
11.29prepare teachers to teach in Dakota language
11.30immersion programs.
11.31(f) This appropriation includes money for the
11.32Veterinary Diagnostic Laboratory to preserve
11.33accreditation.
12.1(g) This appropriation includes money in
12.2fiscal year 2010 for a onetime grant to the
12.3Minnesota Wildlife Rehabilitation Center for
12.4their uncompensated expenses in an amount
12.5equal to the loan balance as of March 11,
12.62010, for expenses related to the center's
12.7move from the campus.
12.8(h) For fiscal years 2012 and 2013, the
12.9base for operations and maintenance is
12.10$596,930,000 each year.
12.11EFFECTIVE DATE.This section is effective the day following final enactment.

12.12    Sec. 18. OFFICE OF HIGHER EDUCATION CARRYFORWARD.
12.13Notwithstanding Minnesota Statutes, section 136A.125, subdivision 7, or 136A.233,
12.14subdivision 1, the Office of Higher Education may carry forward to fiscal year 2011, funds
12.15allocated to an institution for the child care and work study programs that exceed the actual
12.16need and were refunded to the office from fiscal year 2010. Notwithstanding Minnesota
12.17Statutes, section 136A.125, subdivision 4c, funds carried forward for the child care
12.18program in fiscal year 2011 may be used to expand the number of recipients in the program.

12.19    Sec. 19. REPORT OF CREDIT TRANSFER ACTIVITIES.
12.20The Board of Trustees of the Minnesota State Colleges and Universities shall report
12.21on February 15, 2011, and annually thereafter through 2015, on its activities to achieve
12.22the credit transfer goals of Minnesota Statutes, section 136F.302, and the results of those
12.23activities. The report shall be made to the chairs and ranking minority members of the
12.24legislative committees with primary jurisdiction over higher education policy and finance.
12.25The goals of Minnesota Statutes, section 136F.302, should be fully achieved as soon as
12.26possible, but no later than the start of the 2015-2016 academic year.

12.27    Sec. 20. MNSCU REVENUE BONDS FOR STATE UNIVERSITIES.
12.28Notwithstanding Minnesota Statutes, section 136F.98, subdivision 1, for fiscal years
12.292010 and 2011, the board of trustees must use the increase in the aggregate revenue bond
12.30limit in Minnesota Statutes, section 136F.98, subdivision 1, to issue revenue bonds for
12.31eligible projects at state universities.

13.1    Sec. 21. PILOT PROJECT; LOCAL DEPOSIT OF RESERVES OF
13.2MINNESOTA STATE COLLEGES AND UNIVERSITIES.
13.3    Subdivision 1. Establishment. To increase the distribution of potential economic
13.4benefit of deposits of reserve funds of the institutions of the Minnesota State Colleges and
13.5Universities, a pilot project is established to transfer certain reserve deposits of selected
13.6institutions from the state treasury to a community financial institution. Notwithstanding
13.7Minnesota Statutes, section 16A.27, on July 1, 2010, the commissioner of management
13.8and budget shall transfer the board-required reserve funds of colleges and universities
13.9selected by the board of trustees under subdivision 2, to a community financial institution
13.10designated for each of the participating colleges and universities.
13.11    Subd. 2. Participating colleges and universities. By June 11, 2010, colleges and
13.12universities must apply to the Board of Trustees of the Minnesota State Colleges and
13.13Universities for participation in the pilot project. Each applicant must designate one or
13.14more community financial institutions for the deposit of board-required reserves, with the
13.15terms of the deposit for each designated community financial institution. The designated
13.16community financial institution must be located within 25 miles of a participating campus.
13.17From the applicants, the board shall select eight postsecondary institutions to participate in
13.18the local deposit pilot project. In making its selection, the board must consider the size
13.19of the institution's reserves and the terms offered by the designated community financial
13.20institutions. Two-year and four-year institutions must be selected to participate in the pilot
13.21project and at least five of the selected institutions must be located in greater Minnesota.
13.22By June 25, 2010, the board must notify the commissioner of management and
13.23budget of the participating colleges and universities and the associated community
13.24financial institutions.
13.25    Subd. 3. Community financial institution. As used in this section, "community
13.26financial institution" means a federally insured bank or credit union, chartered as a bank
13.27or credit union by the state of Minnesota or the United States, that is headquartered in
13.28Minnesota.
13.29    Subd. 4. Evaluation and report. The commissioner of management and budget and
13.30the board of trustees shall independently evaluate the effectiveness or harm of the local
13.31deposit pilot project in increasing the use of community financial institutions and providing
13.32wider distribution of the economic benefit of the deposit of postsecondary reserves. Each
13.33evaluation must include the participating colleges, universities, and community financial
13.34institutions. The commissioner and the board shall report the results of the pilot project
13.35evaluation to the appropriate committees of the legislature by December 1, 2011, with
13.36recommendations on the future implementation of the pilot project.

14.1    Sec. 22. APPROPRIATION REDUCTIONS.
14.2Any reduction in appropriations for the biennium ending June 30, 2011, for the
14.3central system office of Minnesota State Colleges and Universities must not be passed
14.4through to any institution or campus. The board of trustees must not charge any institution
14.5for appropriation reductions made to the central office.

14.6    Sec. 23. REPEALER.
14.7(a) Minnesota Statutes 2008, section 136A.127, subdivisions 1, 3, 5, 6, 7, 10, and
14.811, are repealed.
14.9(b) Minnesota Statutes 2009 Supplement, sections 135A.61; 136A.121, subdivision
14.109b; and 136A.127, subdivisions 2, 4, 9, 9b, 10a, and 14, are repealed.

14.11ARTICLE 2

14.12ECONOMIC DEVELOPMENT APPROPRIATIONS

14.13

Section 1. SUMMARY OF APPROPRIATIONS.

14.14The amounts shown in this section summarize direct appropriations, by fund, made
14.15in this article.

14.16			2010		2011		Total
14.17	General	$	(1,500,000)	$	(1,615,000)	$	(3,115,000)
14.18	Total	$	(1,500,000)	$	(1,615,000)	$	(3,115,000)

14.19

Sec. 2. APPROPRIATIONS.

14.20The sums shown in the columns marked "Appropriations" are added to or, if shown
14.21in parentheses, subtracted from the appropriations in Laws 2009, chapter 78, article 1,
14.22unless otherwise specified, to the agencies and for the purposes specified in this article.
14.23The appropriations are from the general fund, or another named fund, and are available for
14.24the fiscal years indicated for each purpose. The figures "2010" and "2011" used in this
14.25article mean that the addition to or subtraction from the appropriation listed under them
14.26are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.
14.27Supplemental appropriations and reductions to appropriations for the fiscal year ending
14.28June 30, 2010, are effective the day following final enactment.

14.29				APPROPRIATIONS
14.30				Available for the Year
14.31				Ending June 30
14.32					2010		2011

15.1 15.2

Sec. 3. EMPLOYMENT AND ECONOMIC DEVELOPMENT

15.3

Subdivision 1.Total Appropriation

$

(1,500,000)

$

(1,847,000)

15.4The appropriation reductions for each
15.5purpose are specified in the following
15.6subdivisions.

15.7 15.8

Subd. 2.Business and Community Development

-0-

(690,000)

15.9(a) $100,000 in 2011 is from the
15.10appropriation for a grant to BioBusiness
15.11Alliance of Minnesota.
15.12(b) $15,000 in 2011 is from the appropriation
15.13for a grant to the Minnesota Inventors
15.14Congress.
15.15(c) The general fund base for business and
15.16community development is $6,551,000 in
15.17fiscal year 2012 and $6,551,000 in fiscal year
15.182013.

15.19

Subd. 3.Workforce Development

-0-

(857,000)

15.20(a) $400,000 in 2011 is from the appropriation
15.21for the Minnesota job skills partnership
15.22program under Minnesota Statutes, sections
15.23116L.01 to 116L.17.
15.24(b) $119,000 in 2011 is from the appropriation
15.25for State Services for the Blind activities.
15.26(c) $67,000 in 2011 is from the appropriation
15.27for grants to Centers for Independent Living.
15.28(d) $222,000 in 2011 is from the
15.29appropriation for extended employment
15.30services under Minnesota Statutes, section
15.31268A.15. Notwithstanding Minnesota
15.32Rules, parts 3300.2030 to 3300.2055, the
15.33commissioner may adjust contracts with
15.34eligible extended employment providers in
16.1order to achieve required reductions through
16.2June 30, 2011. The general fund base for
16.3extended employment services is $5,405,000
16.4in fiscal year 2012 and $5,405,000 in fiscal
16.5year 2013.
16.6(e) $49,000 in 2011 is from the appropriation
16.7for grants to programs that provide
16.8employment support services to persons with
16.9mental illness under Minnesota Statutes,
16.10sections 268A.13 and 268A.14. $2,000
16.11in each year is from the appropriation for
16.12administrative expenses.
16.13(f) The general fund base for workforce
16.14development is $29,181,000 in fiscal year
16.152012 and $29,181,000 in fiscal year 2013.

16.16

Subd. 4.State-Funded Administration

-0-

(300,000)

16.17The general fund base for state-funded
16.18administration is $2,126,000 in fiscal year
16.192012 and $2,126,000 in fiscal year 2013.

16.20

Subd. 5.Carryforward

(1,500,000)

-0-

16.21The carryforward reduction is for the job
16.22skills partnership program.

16.23

Subd. 6.Transfers and Cancellations

16.24(a) $367,000 in 2010 and $367,000 in
16.252011 are transferred from the contaminated
16.26cleanup grants appropriation in the petroleum
16.27tank release cleanup fund under Minnesota
16.28Statutes, section 115C.08, subdivision 4, to
16.29the general fund.
16.30(b) $80,000 in 2010 is transferred from the
16.31unemployment insurance state administration
16.32account in the special revenue fund under
16.33Minnesota Statutes, section 268.196,
16.34subdivision 1, to the general fund.
17.1(c) $160,000 in 2010 is transferred from
17.2the capital access program account in the
17.3special revenue fund under Minnesota
17.4Statutes, section 116J.876, subdivision 4, to
17.5the general fund.
17.6(d) The remaining balance from the Laws
17.72007, chapter 135, article 1, section 3,
17.8appropriation for a grant to Le Sueur County
17.9is canceled.

17.10 17.11

Sec. 4. DEPARTMENT OF LABOR AND INDUSTRY; TRANSFERS

$

-0-

$

-0-

17.12(a) By June 30, 2010, the commissioner
17.13of management and budget shall transfer
17.14$700,000 from the contractor recovery
17.15account in the special revenue fund to the
17.16general fund.
17.17(b) By June 30, 2010, the commissioner
17.18of management and budget shall transfer
17.19$725,000 from the assigned risk safety
17.20account in the worker's compensation fund to
17.21the general fund.

17.22 17.23

Sec. 5. BUREAU OF MEDIATION SERVICES

$

-0-

$

(53,000)

17.24(a) $47,000 in 2011 is from the appropriation
17.25for mediation services.
17.26(b) $6,000 in 2011 is from the appropriation
17.27for labor management cooperation grants.

17.28 17.29

Sec. 6. BOARD OF COSMETOLOGIST EXAMINERS

$

-0-

$

225,000

17.30

Sec. 7. BOARD OF BARBER EXAMINERS

$

-0-

$

60,000

17.31    Sec. 8. Laws 2009, chapter 78, article 1, section 3, subdivision 2, is amended to read:

18.1 18.2

Subd. 2.Business and Community Development

8,980,000

8,980,000

18.3	Appropriations by Fund
18.4	General	7,941,000	7,941,000
18.5	Remediation	700,000	700,000
18.6 18.7	Workforce Development	339,000	339,000

18.8(a) $700,000 the first year and $700,000 the
18.9second year are from the remediation fund for
18.10contaminated site cleanup and development
18.11grants under Minnesota Statutes, section
18.12116J.554 . This appropriation is available
18.13until expended.
18.14(b) $200,000 each year is from the general
18.15fund for a grant to WomenVenture for
18.16women's business development programs
18.17and for programs that encourage and assist
18.18women to enter nontraditional careers in the
18.19trades; manual and technical occupations;
18.20science, technology, engineering, and
18.21mathematics-related occupations; and green
18.22jobs. This appropriation may be matched
18.23dollar for dollar with any resources available
18.24from the federal government for these
18.25purposes with priority given to initiatives
18.26that have a goal of increasing by at least ten
18.27percent the number of women in occupations
18.28where women currently comprise less than 25
18.29percent of the workforce. The appropriation
18.30is available until expended.
18.31(c) $105,000 each year is from the general
18.32fund and $50,000 each year is from the
18.33workforce development fund for a grant to
18.34the Metropolitan Economic Development
18.35Association for continuing minority business
18.36development programs in the metropolitan
19.1area. This appropriation must be used for the
19.2sole purpose of providing free or reduced
19.3fee business consulting services to minority
19.4entrepreneurs and contractors.
19.5(d)(1) $500,000 each year is from the
19.6general fund for a grant to BioBusiness
19.7Alliance of Minnesota for bioscience
19.8business development programs to promote
19.9and position the state as a global leader
19.10in bioscience business activities. This
19.11appropriation is added to the department's
19.12base. These funds may be used to create,
19.13recruit, retain, and expand biobusiness
19.14activity in Minnesota; implement the
19.15destination 2025 statewide plan; update
19.16a statewide assessment of the bioscience
19.17industry and the competitive position of
19.18Minnesota-based bioscience businesses
19.19relative to other states and other nations;
19.20and develop and implement business and
19.21scenario-planning models to create, recruit,
19.22retain, and expand biobusiness activity in
19.23Minnesota.
19.24(2) The BioBusiness Alliance must report
19.25each year by February 15 to the committees
19.26of the house of representatives and the senate
19.27having jurisdiction over bioscience industry
19.28activity in Minnesota on the use of funds;
19.29the number of bioscience businesses and
19.30jobs created, recruited, retained, or expanded
19.31in the state since the last reporting period;
19.32the competitive position of the biobusiness
19.33industry; and utilization rates and results of
19.34the business and scenario-planning models
19.35and outcomes resulting from utilization of
19.36the business and scenario-planning models.
20.1(e)(1) Of the money available in the
20.2Minnesota Investment Fund, Minnesota
20.3Statutes, section 116J.8731, to the
20.4commissioner of the Department of
20.5Employment and Economic Development,
20.6up to $3,000,000 is appropriated in fiscal year
20.72010 for a loan to an aircraft manufacturing
20.8and assembly company, associated with the
20.9aerospace industry, for equipment utilized
20.10to establish an aircraft completion center
20.11at the Minneapolis-St. Paul International
20.12Airport. The finishing center must use the
20.13state's vocational training programs designed
20.14specifically for aircraft maintenance training,
20.15and to the extent possible, work to recruit
20.16employees from these programs. The center
20.17must create at least 200 new manufacturing
20.18jobs within 24 months of receiving the
20.19loan, and create not less than 500 new
20.20manufacturing jobs over a five-year period
20.21in Minnesota.
20.22(2) This loan is not subject to loan limitations
20.23under Minnesota Statutes, section 116J.8731,
20.24subdivision 5 . Any match requirements
20.25under Minnesota Statutes, section 116J.8731,
20.26subdivision 3 , may be made from current
20.27resources. This is a onetime appropriation
20.28and is effective the day following final
20.29enactment.
20.30(f) $65,000 each year is from the general
20.31fund for a grant to the Minnesota Inventors
20.32Congress, of which at least $6,500 must be
20.33used for youth inventors.
21.1(g) $200,000 the first year and $200,000 the
21.2second year are for the Office of Science and
21.3Technology. This is a onetime appropriation.
21.4(h) $500,000 the first year and $500,000 the
21.5second year are for a grant to Enterprise
21.6Minnesota, Inc., for the small business
21.7growth acceleration program under
21.8Minnesota Statutes, section 116O.115. This
21.9is a onetime appropriation and is available
21.10until expended.
21.11(i)(1) $100,000 each year is from the
21.12workforce development fund for a grant
21.13under Minnesota Statutes, section 116J.421,
21.14to the Rural Policy and Development
21.15Center at St. Peter, Minnesota. The grant
21.16shall be used for research and policy
21.17analysis on emerging economic and social
21.18issues in rural Minnesota, to serve as a
21.19policy resource center for rural Minnesota
21.20communities, to encourage collaboration
21.21across higher education institutions, to
21.22provide interdisciplinary team approaches
21.23to research and problem-solving in rural
21.24communities, and to administer overall
21.25operations of the center.
21.26(2) The grant shall be provided upon the
21.27condition that each state-appropriated
21.28dollar be matched with a nonstate dollar.
21.29Acceptable matching funds are nonstate
21.30contributions that the center has received and
21.31have not been used to match previous state
21.32grants. Any funds not spent the first year are
21.33available the second year.
21.34(j) Notwithstanding Minnesota Statutes,
21.35section 268.18, subdivision 2, $414,000 of
22.1funds collected for unemployment insurance
22.2administration under this subdivision is
22.3appropriated as follows: $250,000 to Lake
22.4County for ice storm damage; $64,000 is for
22.5the city of Green Isle for reimbursement of
22.6fire relief efforts and other expenses incurred
22.7as a result of the fire in the city of Green Isle;
22.8and $100,000 is to develop the construction
22.9mitigation pilot program to make grants for
22.10up to five projects statewide available to local
22.11government units to mitigate the impacts of
22.12transportation construction on local small
22.13business. These are onetime appropriations
22.14and are available until expended.
22.15(k) Up to $10,000,000 is appropriated from
22.16the Minnesota minerals 21st century fund to
22.17the commissioner of Iron Range resources
22.18and rehabilitation to make a grant grants
22.19or forgivable loan loans to a manufacturer
22.20manufacturers of windmill blades, other
22.21renewable energy manufacturing, or biomass
22.22products at a facility facilities to be located
22.23within the taconite tax relief area defined
22.24in Minnesota Statutes, section 273.134. No
22.25match is required for the renewable energy
22.26manufacturing or biomass projects.
22.27(l) $1,000,000 is appropriated from the
22.28Minnesota minerals 21st century fund to
22.29the Board of Trustees of the Minnesota
22.30State Colleges and Universities for a grant
22.31to the Northeast Higher Education District
22.32for planning, design, and construction of
22.33classrooms and housing facilities for upper
22.34division students in the engineering program.
23.1(m)(1) $189,000 each year is appropriated
23.2from the workforce development fund for
23.3grants of $63,000 to eligible organizations
23.4each year to assist in the development of
23.5entrepreneurs and small businesses. Each
23.6state grant dollar must be matched with $1
23.7of nonstate funds. Any balance in the first
23.8year does not cancel but is available in the
23.9second year.
23.10(2) Three grants must be awarded to
23.11continue or to develop a program. One
23.12grant must be awarded to the Riverbend
23.13Center for Entrepreneurial Facilitation
23.14in Blue Earth County, and two to other
23.15organizations serving Faribault and Martin
23.16Counties. Grant recipients must report to the
23.17commissioner by February 1 of each year
23.18that the organization receives a grant with the
23.19number of customers served; the number of
23.20businesses started, stabilized, or expanded;
23.21the number of jobs created and retained; and
23.22business success rates. The commissioner
23.23must report to the house of representatives
23.24and senate committees with jurisdiction
23.25over economic development finance on the
23.26effectiveness of these programs for assisting
23.27in the development of entrepreneurs and
23.28small businesses.
23.29EFFECTIVE DATE.This section is effective the day following final enactment.

23.30    Sec. 9. APPROPRIATIONS MADE ONLY ONCE.
23.31If the appropriations made in this article are enacted more than once in the 2010
23.32regular session, these appropriations must be given effect only once.
23.33EFFECTIVE DATE.This section is effective the day following final enactment.

24.1ARTICLE 3

24.2MINERALS

24.3    Section 1. Minnesota Statutes 2009 Supplement, section 298.294, is amended to read:
24.4298.294 INVESTMENT OF FUND.
24.5(a) The trust fund established by section 298.292 shall be invested pursuant to law
24.6by the State Board of Investment and the net interest, dividends, and other earnings arising
24.7from the investments shall be transferred, except as provided in paragraph (b), on the first
24.8day of each month to the trust and shall be included and become part of the trust fund.
24.9The amounts transferred, including the interest, dividends, and other earnings earned
24.10prior to July 13, 1982, together with the additional amount of $10,000,000 for fiscal year
24.111983, which is appropriated April 21, 1983, are appropriated from the trust fund to the
24.12commissioner of Iron Range resources and rehabilitation for deposit in a separate account
24.13for expenditure for the purposes set forth in section 298.292. Amounts appropriated
24.14pursuant to this section shall not cancel but shall remain available unless expended.
24.15(b) For fiscal years 2010 and 2011 only, $1,000,000 $1,500,000 of the net interest,
24.16dividends, and other earnings under paragraph (a) shall be transferred to a special account.
24.17Funds in the special account are available for loans or grants to businesses, with priority
24.18given to businesses with 25 or fewer employees. Funds may be used for wage subsidies
24.19for up to 52 weeks of up to $5 per hour or other activities, including, but not limited to,
24.20short-term operating expenses and purchase of equipment and materials by businesses
24.21under financial duress, that will create additional jobs in the taconite assistance area under
24.22section 273.1341. Expenditures from the special account must be approved by at least
24.23seven Iron Range Resources and Rehabilitation Board members.
24.24(c) To qualify for a grant or loan, a business must be currently operating and have
24.25been operating for one year immediately prior to its application for a loan or grant, and its
24.26corporate headquarters must be located in the taconite assistance area.
24.27EFFECTIVE DATE.This section is effective the day following final enactment.

24.28    Sec. 2. Laws 2009, chapter 78, article 7, section 2, is amended to read:
24.29    Sec. 2. IRON RANGE RESOURCES AND REHABILITATION; EARLY
24.30SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
24.31(a) Notwithstanding any law to the contrary, the commissioner of Iron Range
24.32resources and rehabilitation, in consultation with the commissioner of management and
24.33budget, may shall offer a targeted early separation incentive program for employees of the
25.1commissioner who have attained the age of 60 years or who have received credit for at
25.2least 30 years of allowable service under the provisions of Minnesota Statutes, chapter 352.
25.3(b) The early separation incentive program may include one or more of the following:
25.4(1) employer-paid postseparation health, medical, and dental insurance until age
25.565; and
25.6(2) cash incentives that may, but are not required to be, used to purchase additional
25.7years of service credit through the Minnesota State Retirement System, to the extent that
25.8the purchases are otherwise authorized by law.
25.9(c) The commissioner of Iron Range resources and rehabilitation shall establish
25.10eligibility requirements for employees to receive an incentive.
25.11(d) The commissioner of Iron Range resources and rehabilitation, consistent with the
25.12established program provisions under paragraph (b), and with the eligibility requirements
25.13under paragraph (c), may designate specific programs or employees as eligible to be
25.14offered the incentive program.
25.15(e) Acceptance of the offered incentive must be voluntary on the part of the
25.16employee and must be in writing. The incentive may only be offered at the sole discretion
25.17of the commissioner of Iron Range resources and rehabilitation.
25.18(f) The cost of the incentive is payable solely by funds made available to the
25.19commissioner of Iron Range resources and rehabilitation by law, but only on prior approval
25.20of the expenditures by a majority of the Iron Range Resources and Rehabilitation Board.
25.21(g) This section and section 3 are repealed June 30, 2011 December 31, 2012.
25.22EFFECTIVE DATE.This section is effective the day following final enactment.

25.23    Sec. 3. IRON RANGE HERITAGE CENTER AND PERPICH ARCHIVES.
25.24The Iron Range Resources and Rehabilitation Board shall change the name of
25.25"Ironworld Discovery Center" to "Iron Range Heritage Center and Perpich Archives"
25.26consistent with the changes in section 5.

25.27    Sec. 4. 2010 DISTRIBUTIONS ONLY.
25.28    For distributions in 2010 only, a special fund is established to receive 19.765 cents
25.29per ton that otherwise would be allocated under Minnesota Statutes, section 298.28,
25.30subdivision 6, and 6.367 cents per ton that would otherwise be allocated under Minnesota
25.31Statutes, section 298.28, subdivision 11, to the Douglas J. Johnson economic protection
25.32fund. The following amounts are distributed to St. Louis County acting as the fiscal agent
25.33for the recipients for the following specified purposes:
26.1    (1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide
26.2incentives for at least two dentists to establish dental practices in high-need areas of the
26.3taconite tax relief area;
26.4(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal
26.5heat at the Olcott Park Greenhouse/Virginia Commons project;
26.6(3) 0.637 cent per ton must be paid to the city of Virginia for health and safety
26.7repairs at the Miners Memorial;
26.8(4) 0.955 cent per ton must be paid to the city of Eveleth for the reconstruction
26.9of Highway 142/Grant and Park Avenues;
26.10(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for
26.11upgrades and capital improvements to the Hodgins Berardo Arena in Coleraine;
26.12(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and
26.13pumphouse modifications;
26.14(7) 0.159 cent per ton must be paid to the city of Bovey for residential and
26.15commercial claims for water damage due to water and flood-related damage caused by
26.16the Canisteo Pit;
26.17(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and
26.18child care center;
26.19(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer
26.20upgrades;
26.21(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and
26.22library project;
26.23(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of
26.24water and sewer services for Lakewood Housing;
26.25(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at
26.26the Children's Museum;
26.27(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil
26.28corrections. This amount must be matched by local sources;
26.29(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
26.30(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
26.31(16) 0.159 cent per ton must be paid to Itasca County for an ATV trail;
26.32(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road
26.33railroad crossing;
26.34(18) 0.088 cent per ton must be paid to the city of Clinton for expansion and striping
26.35of the community center parking lot;
26.36(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
27.1(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure
27.2improvements, milling, and overlay for Summit Street between Alaska Avenue and
27.3Highway 135;
27.4(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main
27.5replacements and improvements in the Northeast Lower Alley area;
27.6(22) 0.637 cent per ton must be paid to the town of White for replacement of the
27.7Stepetz Road culvert;
27.8(23) 0.637 cent per ton must be paid to the city of Buhl for reconstruction of Sharon
27.9Street and associated infrastructure;
27.10(24) 0.637 cent per ton must be paid to the city of Mountain Iron for site
27.11improvements at the Park Ridge development;
27.12(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure
27.13and site preparation for its renewable and sustainable energy park;
27.14(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer
27.15improvements;
27.16(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road
27.17rebuilding for the Summit Addition;
27.18(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility
27.19improvements;
27.20(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and
27.21sewer infrastructure improvements;
27.22(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer
27.23improvements;
27.24(31) 0.318 cent per ton must be paid to the city of Cook for street and bridge
27.25improvements;
27.26(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer
27.27improvements;
27.28(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer
27.29improvements;
27.30(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer
27.31improvements;
27.32(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer
27.33improvements;
27.34(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure
27.35improvements;
28.1(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure
28.2improvements;
28.3(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
28.4(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project
28.5infrastructure improvements;
28.6(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety
28.7improvements at the athletic facility; and
28.8(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street
28.9improvements.
28.10EFFECTIVE DATE.This section is effective for the 2010 distribution, all of which
28.11must be made in the August 2010 payment.

28.12    Sec. 5. REVISOR'S INSTRUCTION.
28.13(a) The revisor of statutes shall change the terms "Douglas J. Johnson economic
28.14protection trust fund" or similar terms to "Mesabi miners' memorial economic development
28.15fund" or similar terms wherever they appear in Minnesota Statutes. The revisor shall also
28.16make grammatical changes related to the changes in terms.
28.17(b) The revisor of statutes shall change the terms "Ironworld Discovery Center" to
28.18"Iron Range Heritage Center and Perpich Archives" wherever they appear in Minnesota
28.19Statutes.

28.20ARTICLE 4

28.21MISCELLANEOUS

28.22    Section 1. Minnesota Statutes 2009 Supplement, section 154.002, is amended to read:
28.23154.002 OFFICERS; COMPENSATION; FEES; EXPENSES.
28.24The Board of Barber Examiners shall annually elect a chair and secretary. It shall
28.25adopt and use a common seal for the authentication of its orders and records. The board
28.26shall appoint an executive secretary who or enter into an interagency agreement to procure
28.27the services of an executive secretary. The executive secretary shall not be a member of
28.28the board and who shall be in the unclassified civil service. The position of executive
28.29secretary may be a part-time position.
28.30The executive secretary shall keep a record of all proceedings of the board. The
28.31expenses of administering this chapter shall be paid from the appropriations made to
28.32the Board of Barber Examiners.
28.33Each member of the board shall take the oath provided by law for public officers.
29.1A majority of the board, in meeting assembled, may perform and exercise all the
29.2duties and powers devolving upon the board.
29.3The members of the board shall receive compensation for each day spent on board
29.4activities, but not to exceed 20 days in any calendar month nor 100 days in any calendar
29.5year.
29.6The board shall have authority to employ such inspectors, clerks, deputies, and other
29.7assistants as it may deem necessary to carry out the provisions of this chapter.
29.8EFFECTIVE DATE.This section is effective the day following final enactment.

29.9    Sec. 2. Minnesota Statutes 2009 Supplement, section 154.003, is amended to read:
29.10154.003 FEES.
29.11    (a) The fees collected, as required in this chapter, chapter 214, and the rules of the
29.12board, shall be paid to the executive secretary of the board. The executive secretary board
29.13shall deposit the fees in the general fund in the state treasury.
29.14    (b) The board shall charge the following fees:
29.15    (1) examination and certificate, registered barber, $65 $85;
29.16    (2) examination and certificate, apprentice, $60 $80;
29.17    (3) examination, instructor, $160 $180;
29.18    (4) certificate, instructor, $45 $65;
29.19    (5) temporary teacher or apprentice permit, $60 $80;
29.20    (6) renewal of license, registered barber, $60 $80;
29.21    (7) renewal of license, apprentice, $50 $70;
29.22    (8) renewal of license, instructor, $60 $80;
29.23    (9) renewal of temporary teacher permit, $45 $65;
29.24    (10) student permit, $25 $45;
29.25    (11) initial shop registration, $65 $85;
29.26    (12) initial school registration, $1,010 $1,030;
29.27    (13) renewal shop registration, $65 $85;
29.28    (14) renewal school registration, $260 $280;
29.29    (15) restoration of registered barber license, $75 $95;
29.30    (16) restoration of apprentice license, $70 $90;
29.31    (17) restoration of shop registration, $85 $105;
29.32    (18) change of ownership or location, $35 $55;
29.33    (19) duplicate license, $20 $40; and
29.34    (20) home study course, $75; and $95.
30.1    (21) registration of hair braiders, $20 per year.

30.2    Sec. 3. Minnesota Statutes 2008, section 154.06, is amended to read:
30.3154.06 WHO MAY RECEIVE CERTIFICATES OF REGISTRATION AS A
30.4REGISTERED APPRENTICE.
30.5    Subdivision 1. Qualifications; duration of registration. (a) A person is qualified to
30.6receive a certificate of registration as a registered apprentice:
30.7(1) who has completed at least ten grades of an approved school;
30.8(2) who has graduated from a barber school approved by the board; and
30.9(3) who has passed an examination conducted by the board to determine fitness to
30.10practice as a registered apprentice.
30.11(b) An applicant for a certificate of registration to practice as an apprentice who fails
30.12to pass the examination conducted by the board is required to complete a further course
30.13of study of at least 500 hours, of not more than eight hours in any one working day,
30.14in a barber school approved by the board.
30.15(c) A certificate of registration of an apprentice shall be valid for four years from the
30.16date the certificate of registration is issued by the board and shall not be renewed. During
30.17the four-year period the certificate of registration shall remain in full force and effect only
30.18if the apprentice complies with all the provisions of sections 154.001, 154.002, 154.003,
30.19154.01 to 154.161, 154.19 to 154.21, and 154.24 to 154.26, including the payment of
30.20an annual fee, and the rules of the board.
30.21    Subd. 2. Limited extension of registration. (a) If a registered apprentice, during
30.22the term in which the certificate of registration is in effect, enters full-time active duty in
30.23the armed forces of the United States of America, the expiration date of the certificate
30.24of registration shall be extended by a period of time equal to the period or periods of
30.25active duty.
30.26(b) This paragraph applies when a person graduates from a barber school approved
30.27by the board and is issued a certificate of registration while incarcerated by the Department
30.28of Corrections or the Federal Bureau of Prisons. The expiration date of the certificate shall
30.29be extended once so that it expires four years from the date of the person's first release
30.30from a correctional facility after becoming a registered apprentice.

30.31    Sec. 4. Minnesota Statutes 2008, section 154.065, subdivision 2, is amended to read:
30.32    Subd. 2. Qualifications. A person is qualified to receive a certificate of registration
30.33as an instructor of barbering who:
31.1(1) is a graduate from an approved high school, or its equivalent, as determined by
31.2examination by the Department of Education;
31.3(2) has qualified for a teacher's or instructor's vocational certificate successfully
31.4completed at least 38 hours of training in a program or programs approved by the board and
31.5that will provide the knowledge and skills necessary to instruct in the field of barbering;
31.6(3) has at least three years experience as is currently a registered barber in this state,
31.7or its equivalent as determined by the board with at least 1,400 hours of experience as
31.8a registered barber; and
31.9(4) has passed an examination conducted by the board to determine fitness to
31.10instruct in barbering.
31.11A certificate of registration under this section is provisional until a teacher's or
31.12instructor's vocational certificate has been issued by the Department of Education. A
31.13provisional certificate of registration is valid for 30 days and is not renewable.

31.14    Sec. 5. Minnesota Statutes 2008, section 154.07, is amended by adding a subdivision
31.15to read:
31.16    Subd. 7. Transfer students. When a student has paid or made arrangement to pay
31.17all applicable tuition fees to a barbering school, that school shall certify a student's hours
31.18to another school within ten days of the student's written request. The former school may
31.19charge a nominal fee for providing this certification and transfer of hours.

31.20    Sec. 6. Minnesota Statutes 2008, section 154.15, is amended by adding a subdivision
31.21to read:
31.22    Subd. 3. Continuing education required for registered instructors. (a) A
31.23registered instructor of barbering may not renew a certificate of registration without
31.24satisfying the following continuing education requirements:
31.25(1) a registered instructor must submit proof of at least five continuing education
31.26credits earned since the original certification or latest renewal, whichever is latest, unless
31.27the registered instructor has failed to renew as described in subdivision 2; and
31.28(2) a registered instructor who fails to renew may not be reinstated under subdivision
31.292 without proof of at least five continuing education credits earned since the original
31.30certification or latest renewal, whichever is latest, plus an additional 2.5 credits for each
31.31six months, or portion thereof, in excess of the date of the original failure to renew,
31.32calculated from the date that the board receives the application for renewal.
31.33(b) For purposes of this subdivision, a registered instructor may earn continuing
31.34education credits as follows:
32.1(1) one credit for every five hours of service as a voting member on a board,
32.2commission, task force, or nonprofit organization;
32.3(2) one credit for each credit earned for completing a class or course at a
32.4postsecondary institution, a degree-granting college or university, or a trade and technical
32.5school that grants associate degrees; and
32.6(3) one credit for every five hours of attendance at a trade show or formal class
32.7offered by an organization related to barbering or cosmetology.

32.8    Sec. 7. Minnesota Statutes 2009 Supplement, section 155A.23, is amended by adding a
32.9subdivision to read:
32.10    Subd. 5a. Individual license. "Individual license" means a license described in
32.11section 155A.25, subdivision 1, paragraph (a), clauses (1) and (2).

32.12    Sec. 8. Minnesota Statutes 2009 Supplement, section 155A.24, subdivision 2, is
32.13amended to read:
32.14    Subd. 2. Hiring and assignment of employees. The board has the authority to hire
32.15qualified personnel in the classified service to assist in administering the law, including
32.16those for the testing and licensing of applicants and the continuing inspections required.
32.17All staff must receive periodic training to improve and maintain customer service skills.
32.18EFFECTIVE DATE.This section is effective the day following final enactment.

32.19    Sec. 9. Minnesota Statutes 2009 Supplement, section 155A.24, is amended by adding a
32.20subdivision to read:
32.21    Subd. 3. Feedback. The board must provide access on its Web site for customers to
32.22provide feedback on interaction with the board and board staff. The information posted to
32.23the Web site by customers must be readily accessible to the public. The board must also
32.24record each complaint it receives, the board's response, and the time elapsed in responding
32.25to and resolving each complaint.
32.26EFFECTIVE DATE.This section is effective the day following final enactment.

32.27    Sec. 10. Minnesota Statutes 2009 Supplement, section 155A.24, is amended by adding
32.28a subdivision to read:
32.29    Subd. 4. Report. The board must report by January 15 each year to the standing
32.30committees of the house of representatives and the senate having jurisdiction over the
32.31board on its customer service training and its complaint resolution activities.
33.1EFFECTIVE DATE.This section is effective the day following final enactment.

33.2    Sec. 11. Minnesota Statutes 2009 Supplement, section 155A.25, is amended to read:
33.3155A.25 COSMETOLOGY FEES; LICENSE EXPIRATION DATE.
33.4    Subdivision 1. Schedule. The fee schedule for licensees is as follows for licenses
33.5issued prior to July 1, 2010, and after June 30, 2013:
33.6(a) Three-year license fees:
33.7(1) cosmetologist, manicurist, esthetician, $90 for each initial license, and $60 for
33.8each renewal;
33.9(2) instructor, manager, $120 for each initial license, and $90 for each renewal;
33.10(3) salon, $130 for each initial license, and $100 for each renewal; and
33.11(4) school, $1,500.
33.12(b) Penalties:
33.13(1) reinspection fee, variable;
33.14(2) manager and owner with lapsed practitioner, $150 each;
33.15(3) expired cosmetologist, manicurist, esthetician, manager, school manager, and
33.16instructor license, $45; and
33.17(4) expired salon or school license, $50.
33.18(c) Administrative fees:
33.19(1) certificate of identification, $20;
33.20(2) school original application, $150;
33.21(3) name change, $20;
33.22(4) letter of license verification, $30;
33.23(5) duplicate license, $20;
33.24(6) processing fee, $10; and
33.25(7) special event permit, $75 per year; and
33.26(8) registration of hair braiders, $20 per year.
33.27(d) All fees established in this subdivision must be paid to the executive secretary
33.28of the board. The executive secretary of the board shall deposit the fees in the general
33.29fund in the state treasury.
33.30    Subd. 1a. Schedule. The fee schedule for licensees is as follows for licenses issued
33.31after June 30, 2010, and prior to July 1, 2013:
33.32(a) Three-year license fees:
33.33(1) cosmetologist, manicurist, or esthetician:
33.34(i) $90 for each initial license and a $40 nonrefundable initial license application fee,
33.35for a total of $130; and
34.1(ii) $60 for each renewal and a $15 nonrefundable renewal application fee, for
34.2a total of $75;
34.3(2) instructor or manager:
34.4(i) $120 for each initial license and a $40 nonrefundable initial license application
34.5fee, for a total of $160; and
34.6(ii) $90 for each renewal and a $15 nonrefundable renewal application fee, for a
34.7total of $105;
34.8(3) salon:
34.9(i) $130 for each initial license and a $100 nonrefundable initial license application
34.10fee, for a total of $230; and
34.11(ii) $100 for each renewal and a $50 nonrefundable renewal application fee, for a
34.12total of $150; and
34.13(4) school:
34.14(i) $1,500 for each initial license and a $1,000 nonrefundable initial license
34.15application fee, for a total of $2,500; and
34.16(ii) $1,500 for each renewal and a $500 nonrefundable renewal application fee,
34.17for a total of $2,000.
34.18(b) Penalties:
34.19(1) reinspection fee, variable;
34.20(2) manager and owner with lapsed practitioner, $150 each;
34.21(3) expired cosmetologist, manicurist, esthetician, manager, school manager, and
34.22instructor license, $45; and
34.23(4) expired salon or school license, $50.
34.24(c) Administrative fees:
34.25(1) certificate of identification, $20;
34.26 (2) name change, $20;
34.27 (3) letter of license verification, $30;
34.28 (4) duplicate license, $20;
34.29 (5) processing fee, $10;
34.30 (6) special event permit, $75 per year; and
34.31(7) registration of hair braiders, $20 per year.
34.32    Subd. 1b. Fees disposition; appropriation. (a) All fees established in subdivisions
34.331 and 1a must be paid to the executive secretary of the board.
34.34(b) The executive secretary of the board shall deposit all fees in the general fund
34.35in the state treasury.
35.1    Subd. 2. Refunds. Refunds shall be given in the following situations: overpayment;
35.2death or permanent disability before the effective date of a license; or an individual's
35.3ineligibility for licensure. Applicants determined ineligible to receive a license will be
35.4refunded the license fee minus any processing fee and minus any application fee this
35.5section requires.
35.6    Subd. 3. Other licenses. A licensee who applies for licensing in a second category
35.7shall pay the full license fee and application fee for the second category of license.
35.8    Subd. 4. License expiration date. The board shall, in a manner determined by the
35.9board and without the need for rulemaking under chapter 14, phase in changes to initial
35.10and renewal license expiration dates so that by January 1, 2014:
35.11(1) individual licenses expire on the last day of the licensee's birth month of the
35.12year due; and
35.13(2) salon licenses expire on the last day of the month of initial licensure of the
35.14year due.
35.15    Subd. 5. Board must approve or deny application; timeline. Within 15 working
35.16days of receiving a complete application and the required fees for an initial or renewal
35.17individual license, the board must (1) either grant or deny the application, and (2) issue the
35.18license or notify the applicant of the denial.

35.19    Sec. 12. Minnesota Statutes 2008, section 326B.148, subdivision 1, is amended to read:
35.20    Subdivision 1. Computation. To defray the costs of administering sections
35.21326B.101 to 326B.194, a surcharge is imposed on all permits issued by municipalities in
35.22connection with the construction of or addition or alteration to buildings and equipment or
35.23appurtenances after June 30, 1971. The commissioner may use any surplus in surcharge
35.24receipts to award grants for code research and development and education.
35.25    If the fee for the permit issued is fixed in amount the surcharge is equivalent to
35.26one-half mill (.0005) of the fee or 50 cents, except that effective July 1, 2010, until June
35.2730, 2011, the permit surcharge is equivalent to one-half mill (.0005) of the fee or $5,
35.28whichever amount is greater. For all other permits, the surcharge is as follows:
35.29    (1) if the valuation of the structure, addition, or alteration is $1,000,000 or less, the
35.30surcharge is equivalent to one-half mill (.0005) of the valuation of the structure, addition,
35.31or alteration;
35.32    (2) if the valuation is greater than $1,000,000, the surcharge is $500 plus two-fifths
35.33mill (.0004) of the value between $1,000,000 and $2,000,000;
35.34    (3) if the valuation is greater than $2,000,000, the surcharge is $900 plus three-tenths
35.35mill (.0003) of the value between $2,000,000 and $3,000,000;
36.1    (4) if the valuation is greater than $3,000,000, the surcharge is $1,200 plus one-fifth
36.2mill (.0002) of the value between $3,000,000 and $4,000,000;
36.3    (5) if the valuation is greater than $4,000,000, the surcharge is $1,400 plus one-tenth
36.4mill (.0001) of the value between $4,000,000 and $5,000,000; and
36.5    (6) if the valuation exceeds $5,000,000, the surcharge is $1,500 plus one-twentieth
36.6mill (.00005) of the value that exceeds $5,000,000.

36.7    Sec. 13. RULEMAKING.
36.8    Subdivision 1. Conforming changes. The Board of Cosmetologist Examiners
36.9must amend Minnesota Rules, parts 2105.0200 and 2105.0330, to conform to the license
36.10expiration date requirements of Minnesota Statutes, section 155A.25, subdivision 4, by
36.11specifying that individual or salon licenses expire on the last day of an individual's birth
36.12month of the year due, or on the last day of the month of initial licensure of the year due.
36.13    Subd. 2. Good cause exemption. The Board of Cosmetologist Examiners must use
36.14the good cause exemption under Minnesota Statutes, section 14.388, subdivision 1, clause
36.15(3), to adopt the rules required by this section. Minnesota Statutes, section 14.386, does
36.16not apply except as provided in Minnesota Statutes, section 14.388.

36.17    Sec. 14. EXPEDITED RULES; PLUMBING BOARD.
36.18The Plumbing Board shall have expedited rulemaking authority provided under
36.19Minnesota Statutes, section 14.389 for expedited rules regarding water-free urinals that
36.20meet the Minnesota Plumbing Board standards. This authority expires December 31, 2010.
36.21EFFECTIVE DATE.This section is effective the day following final enactment.

36.22    Sec. 15. REPEALER.
36.23Minnesota Statutes 2008, sections 154.07, subdivision 5; and 176.135, subdivision
36.241b, are repealed.